managing performance appriasal at qu changing culture
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Managing
Performance Appraisal
QU, MBA
1st, April, 2009
Dr Hend Al Muftah
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Session Plan
Introduction
Practice of Performance Appraisal (PA)
Contemporary PA
Problems related to PA
PA @ QU
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• Why do employees need
performance reviews?
• Why do managers and supervisors
need performance appraisals?
• Why do organizations need
performance appraisals?
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Introduction
The practice of PA has undergone
many major changes over the last
decades, which was driven by large-
scale organizational changesRestructuring
Move to teamwork
TQM
BPR
Cultural change
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Key terms
Performance… relationship between a person‟s capabilities and what the person actually achieves, usually related to a person‟s job.
Performance management…..…A broad term that has come to stand for the set of practices through which work is defined and reviewed, capabilities are developed, and rewards are distributed…” (Morhamn & Morhamn, 1995).
Performance Appraisal…a process for reviewing the past performance of an employee, and agreeing future objectives and development activities.
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Appraisal – what is it?
•A Measure of performance(actual vs. planned)
•A Conclusion of continuous
feedback
•A step towards development
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Practice of PA - Scope
PA has become a common HR practice in high performance jobs especially within financial, sales and customer care sectors, especially within profit-making organizations.
It is equally practiced in private and public organizations such as government authorities, schools, universities, hospitals, banks etc., etc.,
Still „contingent‟ and „peripheral‟ workers are mostly left out of appraisal schemes
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Practice of PA – Advantages and
DisadvantagesAdvantage
- PA can bring coherence (integration) within the organization (i.e. performance → reward → development → succession)
Disadvantages
- Integration plans are often too ambitious
- Using past information to predict future performance can be misleading
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Practice of PA – Uses of PA
Application of PA can be for the following purposes:
Defining (and clarifying) performance expectations
Identifying training and development needs
Providing career counseling
Help with succession planning
Facilitating communications and involvement
Allocating rewards and determining promotion
Motivating and controlling employees
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PA
Objectives
Documentatio
n
Provide
career
counseling
PromotionsSuccession
planning
Rewards
Controlling
Identifying T
& D needs
Defining Perf. expectations
Motivation
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Performance Management (PM)PM is a “system & attitudes which help
organizations to plan, delegate and assess the operations of services”
• Shared vision of the org objectives
• Individual performance objectives that are related to org objectives
• Plan, Monitor And regular review of individual targets towards progress
1. Ongoing Developmental Process & Motivational Exercise
2. An evaluation of the effectiveness of the PM process
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How is Appraisal Conducted?
Set the organization‟s goals
Set the departmental goals
Set & Discuss individual
goals
Define expected results
Performance reviews
Provide feedback
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5 key Components of Conducting
Appraisal/Review
1. Planning and Preparation
2. Starting the Meeting
3. Discussion
4. Closing
5. Follow-up
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Appraisal Discussion
"The manager and you should spend only about 30% of the
time discussing the past and 70% talking about future
performance,"
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PA as Managerial Control
PA have become very important
managerial tool in motivating &
controlling staff
PA is seen as a tool in maintaining staff
loyalty & commitment
PA provides managers with opportunity
to reinforce corporate values and culture
Thus, it is a strategic instrument in the
control process
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Contemporary PA
- Upward Appraisal System: Involves
employees rating their manager‟s
performance & often leads to improved
leadership and employee empowerment
- Customer Appraisal: where organization is
setting its employees performance standards
base on customer surveys (e.g. customer
care card, telephone surveys, focus groups,
interviews, postal surveys)
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Contemporary PA – 360° Appraisal
- A popular choice (75% of Fortune 500 companies are using it)
- 360° Appraisal is based on feedback derived from ratings from peers, sub-ordinates, supervisors (managers) and customers.
- Wide variations in terms of what is appraised.
- However two general approaches are used mostly:- Unstructured approach: open questions are asked about (i)
major value adding areas (ii) managerial strengths (iii) improvements needed
- Structured approach: questionnaire based on model of managerial competency. Key components include role analysis, commercial awareness, customer care, performance problems and professional development.
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Contemporary PA – Advantages of 360°
Appraisal
- Multiple raters give a wide perspective to evaluation
- Whole some feedback to the manager and the managed
However cost and time requirements for 360° Appraisal are high. Hence
HR Consultants are making lucrative careers out of it
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Problems related to PA
Most employees (both managers and
managed) hate PA (most disliked this
activity – WHY?).
PAs over promised and under deliver
Most managers are not trained to conduct
PAs. Hence they use their gut feeling and
focus on negativity.
PAs are subject to political manipulation
(„who is the daddy‟ effect).
Paperwork related to PAs is excessive
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PM @ QU
2007-08
The process of quantifying, reviewing,
reporting, and enhancing performance
levels
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What are the major benefits to QU?
Enforcing a fair and consistent
performance appraisal system
Fostering personal growth and career
development for QU staff
Supporting QU “Attracting & Retaining
Employees” objective
Enhancing QU performance through
linking individual objectives to University
objectives
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PMS Components
Ongoing … Review
Appraisal of Objectives
• What results should be
delivered
• SMART
Competencies Assessment
• How should the results be
achieved
• Soft skills
Personal Development Plan
Bridge gaps and prioritise an
action plan for development
• Linked to QU Objectives
• Leadership
• Teamwork
• Planning & Organisation
• Results Orientation
• Change Orientation
• Customer Focus
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PM Cycle
1
Continuous Feedback
Ongoing Update
2
Performance Final
Review and Evaluation
Setting Objectives
and
Personal Development Plan
Ap
pra
iser
Ap
pra
isee
3
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The PMS Cycle
Setting Objectives
and
Personal Development Plan
1
1. Setting Shared QU objectives
2. Setting organizational unit objectives
3. Agree employee objectives
4. Agree Competencies Levels
5. Set the Personal Development Plan
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The PMS Cycle
Continuous Feedback
Ongoing Update
2
1. Talk to each other about performance
2. Identify improvements and actions
3. Update objectives (if needed)
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The PMS Cycle
Performance Final
Review and Evaluation
3
1. Self assessment
2. Review by appraiser.. comments
3. Discussion and agreement on scores
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REALITY!!!Results2007
Out of the 92% (QU staff who submitted their PAs to HR), 54% scored 4 (exceed expectations) and 18% scored outstanding performance!!!
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Out of the 98% (QU staff who submitted their PAs to HR), only 29% scored 4 (exceed expectations) and 4% scored outstanding.
The received scores (2008) showed the following:
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Actions
Professional and highly customized PM training for both supervisors and staff
Efficient 2-way communication with the organizational units through focal points
“3 is Good” campaign
Yes, we made it…affected positively the performance culture….
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Positives
Awareness about QU objectives.
Awareness about department objectives.
Awareness about individual objectives and self initiatives.
Understanding of job responsibilities.
Understanding the job competencies.
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The PM system will NOT:
Solve all our organizational problems
Change the organizational culture
Make the organization fairer or staff happier
Why not?
Because PM system is a tool and tools don‟t make
things happen….
People do!!!
People just like you, with the right tool in hands and
the right attitude in mind!
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KEY MESSAGE
THERE IS NO RIGHT WAY OF MANAGING
PERFORMANCE
THERE ARE NO UNIVERSAL SOLUTION TO PM
PROBLEMS AND EACH ORGANIZATION MUST,
THROUGH A PROCESS OF DIAGNOSIS,
ACTION, EVALUATION AND LEARNING,
DEVELOP ITS OWN STRATEGY AND
PRACTICES
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LESSONS LEARNED
Generally, PM proved it success as effective tool towards changing performance culture within QU, specifically:
Emphasizing development, NOT evaluation, culture
Documentation
2-way communication (effective continuous feedback)
Everyone should know what to do, and what NOT to do
Everyone contribute
Everyone develops the necessary skills
Managers must have the necessary skills
Managers must monitor and measure
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THANK YOU
Q & A