STRATEGIC HUMAN RESOURCES Performance Management J Gay Albright

STRATEGIC HUMAN RESOURCES: Performance Management J. Gay Albright Assistant Teaching Professor and Director of International Relations University of Missouri 307 D Cornell Hall (573) 882 -2860 Albrightj@Missouri. edu

WHY IS HR CRITICAL? “Managers at all levels are becoming increasingly aware that a critical source of competitive advantage often comes not from having the most ingenious product design or service, the best marketing strategy, state-of-the-art technology, or the most savvy financial management but from having the appropriate systems for attracting, motivating, and managing the organizations’ human resources. ” --Jeffrey Mello

ELEMENTS OF ORGANIZATIONS Product or Service Financial Assets Systems Human Capital

HUMAN RESOURCES ALIGNMENT �Provides employees with the skills to meet current and future job demands. • Organizational Strategic Goals • HR Systems, Activities and Programs �Aligns HR activities with organization's vision, mission, goals, and values. • Business Results

BASIC STRATEGIC HRM COMPONENTS HUMAN CAPITAL POOL Knowledge Skills Ability EMPLOYEE RELATIONSHIPS AND BEHAVIORS PEOPLE MANAGEMENT PRACTICES

Paradigm Shift Performance Appraisals Performance Management � Emphasis on completing forms, ratings, pay-decisions under deadline � On-going feedback, meaningful communication & clear performance messages. � Process driven by management and “done to” employees. � � “Other duties as assigned” syndrome. Interactions and conversations about performance are initiated by both employees and managers. � Clearly defined employee objectives linked to organizational objectives. � Performance information is highly accessible and yields robust ideas for growth and development. � Performance information is hard to access and yields limited ideas for growth and development.

Performance Management On-going process: Planning Observation, coaching and feedback Performance appraisals Performance development

Planning – Cascading Throughout Organization to Individual Position Begin with organizational / functional goals Define essential job functions and relate them to org goals Develop performance standards Communicate expectations

Observation, Coaching and Feedback Supervisors/managers daily Focus on continuous improvement Correct performance deficiencies Reinforce appropriate behavior Teach employee new skills Motivate high performance Mentor employees

Effective Feedback � Giving feedback is a learned skill � Feedback is specific and descriptive, not judgmental � Focused on behavior, not personal characteristics or “attitude” � Feedback is timely

Positive Feedback Describe the situation or task Describe the employee action Describe the result

Feedback for Improvement Describe the situation or task Describe the employee action Describe the result Ask for/describe alternatives Discuss desired results

Be Prepared

Performance Appraisal Time period and instrument defined Employee evaluates self Supervisor evaluates employee Appraisal is reviewed Employee and Supervisor discuss appraisal

SOURCES OF EMPLOYEE VALUE Technical Knowledge Ability to Learn and Grow Commitment Teamwork • Functional • Business / Customers • Processes / Systems • Openness to New Ideas • Acquisition of Knowledge and Skills • Motivation • Decision-Making Capabilities • Leadership Ability • Interpersonal Skills

Appraisal Systems �Numerical rating scales �Descriptive rating scales �MBO �BARS

Appraisals Without Rating Scales �Critical incidents �Narratives

Focus on…… �Results – goals and measurements �Effort �Knowledge �Teamwork

Employee Self Appraisal

Appraisal Form Example 1

Appraisal Form Example 2

Appraisal Form Example 3

Appraisal Form Example 4

Appraisal Form Example 5

Appraisal Form Example 5

Appraisal Form Example 6

Using Performance Measurement to Compare Employees �Raises �Promotions �Bonuses and incentives �Mentoring �Teambuilding

Be Fair and Consistent �Use the same measures �Apply the system to everyone �Back up your measurements �Explain the system

Performance Management System � Performance Management is the continuous process of identifying, measuring, and evaluating the performance of individuals and teams and aligning their performance with the goals of the organization. � It is a system that significantly affects organizational success by having supervisors and employees work together to set expectations, review results, and reward performance.

Only 29% of employees are actively engaged in their jobs 84% of highly engaged employees feel that they can move their organization forward compared to only 31% of the disengaged (Study completed by Gallup)