Performance Management www schoolofeducators com What s holding
- Slides: 82
Performance Management www. schoolofeducators. com
What ’s holding back performance management success? The survey identified the top three challenges. The overwhelming leading reason: • Managers lack the courage to have difficult performance discussions, cited by 71% of the survey respondents. • Performance management is viewed as an HR process (rather than one in which the whole organization is involved; cited by 45%) • and poor goal setting (36%). www. schoolofeducators. com
Factors Determining Human Performance PERFORMANCE (P) MOTIVATION (M) KNOWLEDGE, SKILLS, AND ATTITUDES (KAS) ENVIRONMENT (E) P = M x KSA x E www. schoolofeducators. com 3
Performance appraisal is not only a tool to judge the competency of the people, it is an intervention that can change almost everything in the organization. www. schoolofeducators. com
Purposes of PM Systems: Overview Ø Ø Ø Strategic Administrative Informational Developmental Organizational maintenance Documentation www. schoolofeducators. com
Strategic Purpose Ø Ø Link employee behavior with organization’s goals Communicate most crucial business strategic initiatives www. schoolofeducators. com
Administrative Purpose Ø Provide information for making decisions re: Ø Ø Ø Salary adjustments Promotions Retention or termination Recognition of individual performance Layoffs www. schoolofeducators. com
Informational Purpose Communicate to Employees: Ø Expectations Ø What is important Ø How they are doing Ø How to improve www. schoolofeducators. com
Developmental Purpose Ø Ø Performance feedback/coaching Identification of individual strengths and weaknesses Causes of performance deficiencies Tailor development of individual career path www. schoolofeducators. com
Organizational Maintenance Purpose Ø Ø Plan effective workforce Assess future training needs Evaluate performance at organizational level Evaluate effectiveness of HR interventions www. schoolofeducators. com
Documentational Purpose Ø Ø Ø Validate selection instruments Document administrative decisions Help meet legal requirements www. schoolofeducators. com
Contributions of PM For Employees ü ü The definitions of job and success are clarified Motivation to perform is increased Self-esteem is increased Self-insight and development are enhanced www. schoolofeducators. com
Contributions of PM For Managers ü ü Supervisors’ views of performance are communicated more clearly Managers gain insight about subordinates There is better and more timely differentiation between good and poor performers Employees become more competent www. schoolofeducators. com
Contributions of PM For Organization/HR Function ü ü Organizational goals are made clear Organizational change is facilitated Administrative actions are more fair and appropriate There is better protection from lawsuits www. schoolofeducators. com
Disadvantages/Dangers of Poorlyimplemented PM Systems for Employees n n Lowered self-esteem Employee burnout and job dissatisfaction Damaged relationships Use of false or misleading information www. schoolofeducators. com
Disadvantages/Dangers of Poorlyimplemented PM Systems for Managers n n n Increased turnover Decreased motivation to perform Unjustified demands on managers’ resources www. schoolofeducators. com
Disadvantages/Dangers of Poorlyimplemented PM Systems for Organization n n Wasted time and money Increased risk of litigation www. schoolofeducators. com
Performance Management Continuous Process of ü ü ü Identifying performance of individuals and teams- what to measure Asking people to set goals Measuring performance of individuals and teams – how to measure and who should measure Developing performance of individuals and teams Aligning performance with the strategic goals of the organization Identifying obstacles in performance www. schoolofeducators. com
What to measure? Traits Behavior Results www. schoolofeducators. com
Approaches to Measuring Performance n Trait Approach q n Behavior Approach q n Emphasizes individual traits of employees Emphasizes how employees do the job Results Approach q Emphasizes what employees produce www. schoolofeducators. com
Trait Approach n Emphasis on individual • Evaluate stable traits n n • Cognitive abilities Personality Based on relationship between traits & performance www. schoolofeducators. com
Trait Approach (continued) n Disadvantages • • Improvement not under individual’s control Trait may not lead to n n Desired behaviors or Desired results www. schoolofeducators. com
Behavior Approach Appropriate if • • Employees take a long time to achieve desired outcomes Poor results are due to causes beyond the performer’s control Not appropriate if n above conditions are not present www. schoolofeducators. com
Results Approach Advantages: • Data appear objective www. schoolofeducators. com
Management by Objectives (MBO) n Involves setting specific measurable goals with each employee and then periodically reviewing the progress made. 1. 2. 3. 4. 5. 6. Set the organization’s goals. Set departmental goals. Discuss departmental goals. Define expected results (set individual goals). Performance reviews. Provide feedback. www. schoolofeducators. com
Who should measure? www. schoolofeducators. com
360 degree appraisal -Developing the tool Ask participants to answer the following three basic questions: List down what you want to know from your subordinates; what are various areas on which feedback would be of use to you and help you to be a better manager List down what you want to know from your seniors List down what you want to know from your colleagues and internal customers No names on sheets only write ‘feedback from subordinates’ www. schoolofeducators. com
Another layer What are the different areas which you feel your superiors should know about – styles, impacts and behavior. What are some functions, activities, initiatives seniors are good at and which should be continued and vice versa List various areas on which you would want to give feedback to your colleagues List various areas on which you would want to give feedback to your subordinates www. schoolofeducators. com
Questions for subordinates Do I help my subordinates understand clearly their job, roles, and responsibilities? Do I delegate satisfactorily? Do my subordinates feel empowered? Do I adequately guide subordinates in their job? Is my communication on company policies and strategies clear? Is there freedom to work? Do I critically look at the inputs given by subordinates? Am I providing feedback to subordinates? Can I be counted upon to assist subordinates if they have a problem? www. schoolofeducators. com
Myths and Facts about 360 Degree Feedback The Power of 360 degree Feedback Rao and Rao www. schoolofeducators. com
Myth 1 - Success of 360 depends on finding out the exact source of the feedback Myth 2 - These are my childhood problems Myth 3 - 360 degree feedback is conclusive www. schoolofeducators. com
Myth 4 - I am a high performer. Why for me? Myth 5 - I already know what people have to say Myth 6 - I don’t need counseling after 360 degree feedback www. schoolofeducators. com
Myth 7 - We are a very open organization. What else it can give? Myth 8 -Implementation brings immediate revolutionary changes in organization Myth 9 - It need not be linked with any other system www. schoolofeducators. com
Myth 10 - Meant for senior and top management team Myth 11 - It enhances shareholder value or brings down www. schoolofeducators. com
How to measure? www. schoolofeducators. com
Evaluation Methods: Individual q Graphic rating scale ÊOldest and perhaps most common Forced choice q Essay evaluation q Critical incident technique q Checklists and weighted checklists q Behaviorally anchored rating scales (BARS) q Behavioral observation scales (BOS) q www. schoolofeducators. com
Performance Appraisal Methods n Graphic rating scale q A scale that lists a number of traits and a range of performance for each that is used to identify the score that best describes an employee’s level of performance for each trait. www. schoolofeducators. com
Performance Appraisal Methods (cont’d) n Alternation ranking method q n Ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are ranked. Paired comparison method q Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better employee of the pair. www. schoolofeducators. com
Alternation Ranking Scale www. schoolofeducators. com
Ranking Employees by the Paired Comparison Method Note: + means “better than. ” − means “worse than. ” For each chart, add up the number of 1’s in each column to get the highest-ranked employee. www. schoolofeducators. com
Performance Appraisal Methods (cont’d) n Forced distribution method q q Similar to grading on a curve; predetermined percentages of ratees are placed in various performance categories. Example: n n n 15% high performers 20% high-average performers 30% average performers 20% low-average performers 15% low performers Narrative Forms www. schoolofeducators. com
Performance Appraisal Methods (cont’d) n Behaviorally anchored rating scale (BARS) q n An appraisal method that uses quantified scale with specific narrative examples of good and poor performance. Developing a BARS: q q q Generate critical incidents Develop performance dimensions Reallocate incidents Scale the incidents Develop a final instrument www. schoolofeducators. com
Example of a Behaviorally Anchored Rating Scale for the Dimension Salesmanshi p Skill Source: Walter C. Borman, “Behavior Based Rating, ” in Ronald A. Berk (ed. ), Performance Assessment: Methods and Applications (Baltimore, MD: Johns Hopkins University Press, 1986), p. 103. www. schoolofeducators. com
Organizations use various methods for performance management, with 54% reporting the use of a five-point scale, 73% using an electronic system, 28% using a specified range of distributions, and 10% using forced rankings. Written objectives are used by 73% of the respondents to assess performance, and 73% also use job accountabilities, which identify the specific outputs that are expected. Another 58% use behavioral competencies, and 47% use quantifiable metrics. Just under one-third (31%) use some form of cross-manager calibration to ensure managers are rating and distributing related rewards consistently. HR Focus/October 2007 www. schoolofeducators. com
Performance Analysis www. schoolofeducators. com
What is Performance Analysis n Understanding the constituents of performance by breaking it into various elements and understanding the factors that cause performance is called performance analysis. www. schoolofeducators. com
Objectives of PA Identify the factors that help achieve performance Identify factors that hinder performance Identify factors that the appraisee can do something about Identify development needs Gaining a better understanding about the appraises – his environment www. schoolofeducators. com
Methodology 1. Appraisee should periodically keep reflecting and recording about how well he is progressing 2. Whenever he comes across success experience he should record facilitating factors 3. Similarly, whenever he comes across failure, he should record inhibiting factors 4. At the end of the performance period, he considers his performance and based on these factors rates himself 5. After rating he should list in detail those factors 6. After listing factors should be categorised as explained in the next slide (methodology continued) www. schoolofeducators. com
Facilitating Factors Personal or individual facilitating factors Facilitating factors attributable to the reporting officer Facilitating factors attributable to organization and its systems Facilitating factors attributable to subordinates Facilitating factors attributable to external environment www. schoolofeducators. com
Inhibiting Factor Same as in the previous slide www. schoolofeducators. com
Methodology 7. Facilitating factors he would like to maintain or strengthen and inhibiting factors that he would like to overcome 8. List support that could be extended by his reporting officer to maintain the external facilitating factors and to reduce the inhibiting factors 9. Submit the appraisal to the reporting officer www. schoolofeducators. com
Characteristics of an Ideal PM Thorough System Practical Meaningful Specific Reliable Valid Acceptable and Fair Inclusive Open Correctable Standardizedwww. schoolofeducators. com
Potential Errors in Performance Appraisals n n Leniency - when a manager’s ratings are grouped at the positive end of the scale Central Tendency - when a manager rates most employees’ performance in the middle of the performance scale Recency - rating of work performance on an employee’s most recent work rather than the entirety of the work Halo Effect - the rater allows a single prominent characteristic of an employee to influence each item on the performance appraisal of the employee www. schoolofeducators. com
From where do you get information about appraisal? n Job analysis www. schoolofeducators. com
High Low Casual task Main task Criticality Support task Low Routine task frequency www. schoolofeducators. com High
Appraisal Myths Assumptions n One appraisal process can effectively serve several functions at the same time n A one size fits all can work well for everyone n You can get commitment from a forced process n It is possible to objectively and reliably evaluate n It is required by law Alternative assumptions n Multiple purposes of appraisal can be achieved through separate processes n Jobs widely differ in nature and change over time n Commitment can best be nurtured through a supportive work environment n Evaluation processes are largely subjective n Employers can defend against employee lawsuits by documenting serious deficiencies www. schoolofeducators. com
Appraisal Myths n n Ratings are motivating and let people know where they stand Feedback, development, and performance improvements are annual or quarterly events People withheld efforts if they are not extrinsically rewarded Inspecting individual leads to improved performance n n Because of subjectivity in evaluation, it may demotivate The best time for feedback etc is variable and depends on the situation, individual’s needs etc n Healthy people are intrinsically motivated n Improving systems and processes improves the performance www. schoolofeducators. com
The Feedback Process Stage 1: Describe current behavior Stage 2: Identify situations Stage 3: Describe impacts and consequences Stage 4: Identify alternative behavior www. schoolofeducators. com
The Feedback Process Describe current behavior Disruptive behavior to avoid • Attacker • Judge • Rambler • Hit-and-run • Dumper • Laggard • Inconsiderate www. schoolofeducators. com
The Attackers challenge personal traits instead of specific behavior. A: Your office is a mess. You are awful R: ( Defense) You know how much work I have to handle here Cite specific Behavior www. schoolofeducators. com
The Judge n n Everything in his world fits into right or wrong. J: You are such a bad guy R: You have drawn a wrong conclusion Be descriptive www. schoolofeducators. com
The rambler n. He delivers long -winded lectures. “Do you know why it did not work? I will tell you why. Let me tell you what I did when I was in your position…. ” Blah, Blah. n. R: Forgets where they were going. Be Brief www. schoolofeducators. com
The Hit-And-Run He makes a quick and vague point and disappears, not available for questions and answers. H: You must improve your performance. OK. Good day. R: Misconstrues the feedback. Be available to share and discuss your observations. www. schoolofeducators. com
The Dumper n. The dumper unloads on people. He does not put criticism into context-he just lists. He stores them in gunny sacks and then dumps them all on your head. n. There are two points I want to make and yes there are two more points I want to make. n. R: Feels chewed up Provide feedback gradually www. schoolofeducators. com
The Laggard He dilly-dallies. Gives you feedback when he remembers. “Now that you have mentioned it, let me tell you……. ” n. R: Starts applying motives. Be prompt www. schoolofeducators. com
The Inconsiderate He gives no thought to time and place. You are about to begin your presentation, when he comes in and says, “You must…. . ” R: Finds you insensitive and inhumane. Be sensitive to time and place www. schoolofeducators. com
Stage 2 - Identify situation *Provide two to three clear and specific situations when the current behavior was actually observed. *Base your feedback on direct observation and solid facts www. schoolofeducators. com
Describe Impacts and Consequences The parent The punisher The psychologist www. schoolofeducators. com
The Parent The parent often relies on personal likes and dislikes when choosing behaviors to criticize or praise. He wants others to be like him. He belittles. “Why are you fighting me on this? I am just trying to tell you what is good for you. ” R: Why should I follow you? Accept differences if there are no negative consequences or explain the consequences www. schoolofeducators. com
The Punisher The punisher focuses only on downside, extreme negative consequences. “This will get you fired. It is your choice. Don’t come to me if something goes wrong. ” R: May give up but is not convinced Keep a positive focus. Your objective is to improve, not punish www. schoolofeducators. com
The Psychologist He is obsessed with “why” to seek deep underlying motives and intentions. “I know why you acted that way. It is because…. . ” R: Gives explanation Rather than saying I know, say may I ask you why did you…. Seek information rather than assigning motives www. schoolofeducators. com
Identify alternative behaviour The Imposer The quick fixer The abandoner The pessimist www. schoolofeducators. com
The Imposer The imposer mandates his opinions as if they were law. He pushes solution down to your throat to kill a discussion. “If you’d set your alarm to go off ten minutes earlier, you won’t be ten minutes late” R: Takes it as an attack and proves you wrong by being late next time, passes responsibility on to you. www. schoolofeducators. com
The Quick Fixer He does not take much time in identifying problem and offering solution “Your problem is that you do not participate in discussion and see it is so simple- open you mouth and start it. ” R: Had it been so simple! www. schoolofeducators. com
The Abandoner He knows of only one solution “This is the only way you can get promotion here. ” R: Is kept in doubt. www. schoolofeducators. com
The Pessimist Sees no hope for change or improvement. “There is nothing you or I can do, except live with it. ” OR “You need to do it but I know you shall not be able to do it. ” R: Then why should he tell me this? www. schoolofeducators. com
Giving Feedback • Indirect vs. Direct Expression of Feelings • Interpretation vs. Description of Behavior • Evaluative vs. Non-evaluative Feedback • General vs. Specific Feedback • Pressure to change vs. Freedom of choice to change • Delayed vs. Immediate • Imposed vs. Solicited • Unmodifiable vs. Modifiable Behaviour • Motivation to hurt vs. Motivation to help www. schoolofeducators. com
Indirect vs Direct You are a likeable person You are driving too fast (I am anxious because you are driving too fast) Indirect statements often begin with I feel that and finish with a perception of opinion (I feel that you are angry) www. schoolofeducators. com
Interpretation vs Description William is fidgeting in his chair and shuffling his feet You are anxious (may be he wants to go to the toilet) Marie could say, “You are hostile”, or “You do not like me” www. schoolofeducators. com
Evaluative vs Non evaluative You are stupid or insensitive. If someone acts stupidly, it does not mean that he is stupid. The person making the evaluation assumes that he can distinguish between ‘right’ and ‘wrong’ and that if the receiver does not exemplify these values, the sender will be unhappy with him. www. schoolofeducators. com
General vs Specific You are stupid. You are a warm person. It does not allow the receiver to know that specific behavior that is perceived as warm www. schoolofeducators. com
Receiving Feedback • Denial vs. Owning • Quick Acceptance vs. Data collection • Rationalisation vs. Self-analysis • Withdrawal vs. Expressing Feelings • Aggression vs. Help-seeking • Humour vs. Concern • Generalisation vs. Experimentation www. schoolofeducators. com
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