performance management: the death of the … management: the death of the performance appraisal?...
TRANSCRIPT
© 2016. Archbright. All rights reserved10/20/2015
Performance Management: The Death of the Performance Appraisal?
Joseph Marth, PhD
Vice President, Business Solutions
© 2016. Archbright. All rights reserved10/20/2015
Setting Performance Expectations
(Manager)
Performing (Employee)
Monitoring & Coaching (Manager)
Self-Assessment (Employee)
Reviewing Performance
(Manager)
Rewarding Performance
(Manager)
Job Evaluation
Performance Management ProcessJob
Description
Development Plan
Merit Matrix
PerformanceAppraisal
Documentation File(s)
“Feedback”
Manager training and calibration
Manager
Employee
HR
© 2016. Archbright. All rights reserved10/20/2015
The Performance Management Paradox
• Managers and employees dislike (hate) the traditional Performance Appraisal
• The traditional Performance Appraisal fails to achieve everything it purports to achieve
• Most employees desire performance feedback
• Employees want to be recognized for high performance
• Employees want development opportunities and career advancement
© 2016. Archbright. All rights reserved10/20/2015
Huh?
© 2016. Archbright. All rights reserved10/20/2015
Traditional Performance Appraisal
• Yearly
• HR required (and maybe enforced)
• Form driven
• Measures the subjective “what” and maybe the subjective “how”
• Rating Scale: “Rank &
Yank!”
© 2016. Archbright. All rights reserved10/20/2015
Be Nice to Penny
© 2016. Archbright. All rights reserved10/20/2015
Performance Ratings
1 2 3 4 5
5 = Very High Performance
4 = High Performance
3 = Expected Performance
2 = Poor Performance
1 = Very Poor Performance
© 2016. Archbright. All rights reserved10/20/2015
ABCDF
Performance Ratings –The Employee’s Reaction
© 2016. Archbright. All rights reserved10/20/2015
Performance Ratings –The Employee’s Reaction
5 = “I’m getting promoted!”
4 = “I’m doing great.”
3 = “My boss thinks I do ‘C’ work….”
2 = “I better start looking for a new job!”
1 = “X#$@!, I’m getting fired!”
© 2016. Archbright. All rights reserved10/20/2015
Jack Welch’s Approach: Rank & Yank!
Three groups:
Top 20% - Shower them
with praise
Middle 70% - Coach them
Bottom 10% - Fire them
© 2016. Archbright. All rights reserved10/20/2015
You’re Fired!
© 2016. Archbright. All rights reserved10/20/2015
The Traditional Approach is Dead
Here are just a few companies who’ve reappraised the Performance Appraisal:
• Accenture• Adobe• Bank of America• Cigna• Disney• GE!• Microsoft
© 2016. Archbright. All rights reserved10/20/2015
What’s not Working?
• With a partner or triad, identify what you believe is either not working or frustrating with the traditional performance appraisal (5 minutes)
• Group Report-out (3 minutes)
© 2016. Archbright. All rights reserved10/20/2015
What’s Not Working…
• According to various sources – including the Society for Human Resource Management (SHRM), Forbes, Corporate Executive Board (CEB) – here is what’s cited as not working or frustrating with the traditional performance appraisal:
– It’s incredibly time consuming
– No correlation of individual ratings and actual business results
– Recent neuroscience research shows PAs put the employee on the defensive and monetary performance incentives reduce creativity
– Objective appraisals are really subjective – ratings are highly susceptible to unconscious bias
© 2016. Archbright. All rights reserved10/20/2015
What’s Not Working…
• (Continued)
– Manager and employee relationship is no longer 1:1
– Managers cannot effectively judge an entire year of work for an individual at one time
– Companies with a lot of high performers, the forced rankings eliminate great talent (in a period of talent shortages) and damage the company culture (creating disengagement)
– People are motivated by positive, constructive feedback and are threatened and defensive by negative feedback
– While managers are sometimes trained on how to deliver feedback, employees are almost never trained on how to receive feedback – especially poor feedback
© 2016. Archbright. All rights reserved10/20/2015
What Motivates Employees?
© 2016. Archbright. All rights reserved10/20/2015
Considerations for a New Approach
• Focus: A Culture of Accountability –
– Expectations – clarity and ability to describe the desired outcome
– Specificity – timelines and deadlines
– Ownership – one task, one owner
– Front-load Accountability
• Simplified process – continuous and real-time performance discussions
– Developmentally focused - learning from experience (and failures!)
– “Start-Stop-Continue” sessions
• Strength-based management: Focusing on strengths versus weaknesses
© 2016. Archbright. All rights reserved10/20/2015
Considerations for a New Approach
• Train managers to be leaders
– Selection/hiring, coaching, feedback, HR law compliance
– Unconscious bias awareness and multicultural knowledge
• Train employees on how to receive feedback, in addition to giving feedback
• Embrace Covey’s 5th Habit: “Seek First To Understand, Then To Be Understood”
• Provide a cultural framework and a set of company “Values” to work from
• Be wary of Pay-for-Performance programs
© 2016. Archbright. All rights reserved10/20/2015
Implications for L&OD
• With a partner or triad, identify what you believe are the Learning and Organization Development implications to this new approach? (5 minutes)
• Group Report-out (3 minutes)
© 2016. Archbright. All rights reserved10/20/2015
© 2016. Archbright. All rights reserved10/20/2015
…Or is it??
So, The Traditional Approach is Dead…
© 2016. Archbright. All rights reserved10/20/2015
Questions & Answers
© 2016. Archbright. All rights reserved10/20/2015
Thank You!
Presenter Information:
Joseph Marth, PhD | Vice President, Business Solutions
[email protected] | 206.664.7165
Member Services Information:
Tracy Sigmon | Manager of Sales & Service
[email protected] | 206.329.1120