Yearend Appraisal Goal Setting Performance Management Process for

Year-end Appraisal & Goal Setting Performance Management Process for People Managers

Navigating this e. Learning Module

Learning Objectives • Recognize the Performance Management Process • Complete the Year-end Appraisal Process • Differentiate Performance for Goals & Competencies • Write Effective Comments for Goals & Competencies • Understand the Calibration Process • Complete the Goal Setting Process • Prepare for and Conduct the Year-end & Goal Setting Conversations • Know where to go for Additional Information

Performance Management Site on the Hanger

Overview of the Performance Management Process

Performance Management Process Goal Setting Ongoing Performance Feedback Year-end Appraisal Midyear Appraisal

Performance Management Process Goal Setting • Understand expectations and set goals that support both the manager’s and company’s goals • Define the strategies needed to accomplish the goals • Define how to accomplish the goals (the competencies) and identify any development actions Goal Setting Ongoing Performance Feedback Year-end Appraisal Midyear Appraisal

Performance Management Process Midyear Appraisal • Provides a channel for recognition • Clarifies performance relative to expectations • Ensures visibility into what needs to be accomplished for the rest of the year • Increases ability to succeed by receiving feedback and coaching Goal Setting Ongoing Performance Feedback Year-end Appraisal Midyear Appraisal

Performance Management Process Year-end Appraisal • Recognize contributions and how they contributed to business success • Understand how performance rating is used to determine pay • Determine expectations for future performance Goal Setting Ongoing Performance Feedback Year-end Appraisal Midyear Appraisal

Performance Management Process Ongoing Coaching & Feedback • Coaching should happen throughout the year • Feedback can be positive or developmental • On-going feedback helps eliminate surprises during the appraisal conversations Goal Setting Ongoing Performance Feedback Year-end Appraisal Midyear Appraisal

Year-end Appraisal

How to Complete the Year-end Appraisal Associate completes Self Appraisal Manager completes appraisal Year-end ratings are calibrated Manager and associate discuss performance

How to Complete the Year-end Self Appraisal Associate completes Self Appraisal Manager completes appraisal Year-end ratings are calibrated Manager and associate discuss performance

How to Complete the Year-end Self Appraisal Associate completes Self Appraisal Manager completes appraisal Year-end ratings are calibrated Manager and associate discuss performance

Rating Goals & Competencies at Year-end Only Midyear & Year-end Only Exceptional Exceeds Expectations Meets Expectations Needs Improvement Unsatisfactory Goals Rating Chart Independently identifies issues and opportunities and overcomes all obstacles to achieve objective. Takes full ownership. Consistently thinks of new approaches and solutions and implements them Meets/beats all deadlines, may shave considerable time/expense from plan Takes on special projects or champion roles in addition to day-to-day work and successfully executes those projects Identifies issues and proposes solutions; leads effort to overcome obstacles. Often suggests new approaches and solutions. May involve their manager in problem-solving and implementation. Always meets and often exceeds deadlines Identifies most issues and proposes good solutions when encouraged to do so. Sometimes relies on their manager to own solution. Executes tried & true. Sometimes suggests new approaches and solutions. Always meets deadlines Fails to identify some key issues. Requires management support to resolve. Fails to suggest new approaches and solutions Pattern of missed deadlines Fails to identify and/or address significant issues, even when issues are identified by manager Fails to suggest new approaches and solutions and is resistant to suggestions identified by others Consistently misses deadlines Competency Ratings Chart Consistently demonstrates many behaviors at the next level up. Performs above others who hold positions of comparable scope and responsibility and is seen as a role model in the competency. Consistently demonstrates expected behaviors in the particular competency and also demonstrates some next level up behaviors. Consistently demonstrates expected behaviors in the particular competency. Inconsistently demonstrates expected behaviors required to perform the particular competency. Does not demonstrate expected behaviors required to effectively perform the particular competency.

Tips for Evaluating Goal Performance Rating Label Goals (the “What”) Exceptional • • Exceeds Expectations • • • Meets Expectations Independently identifies issues and opportunities and overcomes all obstacles to achieve objective. Takes full ownership. Consistently thinks of new approaches and solutions and implements them Meets/beats all deadlines, may shave considerable time/expense from plan Takes on special projects or champion roles in addition to day-to-day work and successfully executes those projects Identifies issues and proposes solutions; leads effort to overcome obstacles. Often suggests new approaches and solutions. May involve their manager in problemsolving and implementation. Always meets and often exceeds deadlines • • Identifies most issues and proposes good solutions when encouraged to do so. Sometimes relies on their manager to own solution. Executes tried & true. Sometimes suggests new approaches and solutions. Always meets deadlines Needs Improvement • • • Fails to identify some key issues. Requires management support to resolve. Fails to suggest new approaches and solutions Pattern of missed deadlines Unsatisfactory • Fails to identify and/or address significant issues, even when issues are identified by manager Fails to suggest new approaches and solutions and is resistant to suggestions identified by others Consistently misses deadlines • • •

Rating Performance Scenarios

Please Select Your Location Stores/Division Corporate/UES Distribution, Fulfillment and Fine Jewelry Processing Centers

Rating Performance Store/Division Scenario

Mike - Goal • Goal: Reduce turnover from 60% to 45% this fiscal year. • Strategies: – Utilize the interactive questions as well as People Answers and reference checks when hiring new associates. – Ensure final candidates are interviewed by Store Manager before hiring. Make sure that each new hire understands the expectations of their job by showing them the position description. – Fill any open positions within 45 days of job posting. – Utilize the onboarding tools available for new hires. Ensure that each new associate has a 30, 60, 90 day touch base with their manager. – Focus in on the stores AES results. Implement a plan of action to better understand the needs of the store associates. – Implement 4 (1 per quarter) team building activities that focus on building a solid team. – Deliver status checks consistently each month, spending quality time on results and associate development

Mike - Goal: Reduce turnover from 60% to 45% this fiscal year. A. B. C. D. E. Exceptional Exceeds Expectations Meets Expectations Needs Improvement Unsatisfactory

Mike - Goal: Reduce turnover from 60% to 45% this fiscal year. A. B. C. D. E. Exceptional Exceeds Expectations Meets Expectations Needs Improvement Unsatisfactory

Allison - Competency Supports a Learning Culture • Delegates appropriate responsibilities and holds staff accountable for results • Explains the benefits of change and helps individuals overcome resistance to change • Takes initiative to develop new ideas to improve productivity and effectiveness • Encourages continuous improvement

Allison - Competency Supports a Learning Culture A. Exceptional B. Exceeds Expectations C. Meets Expectations D. Needs Improvement E. Unsatisfactory

Allison - Competency Supports a Learning Culture A. Exceptional B. Exceeds Expectations C. Meets Expectations D. Needs Improvement E. Unsatisfactory

Rating Performance Corporate / UES Scenario

Richard – Goal: “Identify two new vendors and create a vendor page for each to showcase on Belk. com” Strategies: – Work with buyer to identify a viable vendor in Q 1 – Negotiate with vendor to provide necessary information on belk. com – Identify merchandise to showcase for fall – Gain/provide all necessary information to Belk team (logo, samples, images, etc. ) – Publish vendor page on belk. com by 4 th quarter

Richard – Goal: “Identify two new vendors and create a vendor page for each to showcase on Belk. com” A. B. C. D. E. Exceptional Exceeds Expectations Meets Expectations Needs Improvement Unsatisfactory

Richard – Goal: “Identify two new vendors and create a vendor page for each to showcase on Belk. com” A. B. C. D. E. Exceptional Exceeds Expectations Meets Expectations Needs Improvement Unsatisfactory

Samantha - Competency Develops Teams • Provides individuals with development opportunities to expand their capabilities • Models behaviors and takes action to drive engagement • Actively encourages diverse perspectives in interactions with others • Provides ongoing feedback and coaching to team

Samantha - Competency • Develops Teams A. Exceptional B. Exceeds Expectations C. Meets Expectations D. Needs Improvement E. Unsatisfactory

Samantha - Competency • Develops Teams A. Exceptional B. Exceeds Expectations C. Meets Expectations D. Needs Improvement E. Unsatisfactory

Rating Performance DC, FC & FJPC Scenario

Denise Goal: “Deliver updated Purchase Order training to DC Management Staff by 3 rd Quarter” Strategies: – Create training materials by Q 1 – Reach at least 70% of the intended audience – All training complete by the end of the 3 rd quarter – Survey results are above 90%

Denise Goal: “Deliver updated Purchase Order training to DC Management Staff by 3 rd Quarter” A. B. C. D. E. Exceptional Exceeds Expectations Meets Expectations Needs Improvement Unsatisfactory

Denise Goal: “Deliver updated Purchase Order training to DC Management Staff by 3 rd Quarter” A. B. C. D. E. Exceptional Exceeds Expectations Meets Expectations Needs Improvement Unsatisfactory

David - Competency Develops Teams • Provides individuals with development opportunities to expand their capabilities • Models behaviors and takes action to drive engagement • Actively encourages diverse perspectives in interactions with others • Provides ongoing feedback and coaching to team

David - Competency • Develops Teams A. Exceptional B. Exceeds Expectations C. Meets Expectations D. Needs Improvement E. Unsatisfactory

David - Competency • Develops Teams A. Exceptional B. Exceeds Expectations C. Meets Expectations D. Needs Improvement E. Unsatisfactory

Rating Tendencies to Avoid Halo Primacy Leniency Rating Tendencies Severity Recency Central

Writing Effective Comments

Writing Effective Comments • • Statistical Goals Individual Goals Competencies Year-end Summary

Effective Comments (Goals & Competencies) Statistical Goals – comment box at the end of the section Individual Goals – comment box for each of the goals • Frame your performance against your impact on organizational or departmental goals • Explain your rating for the goal • Point out where your results exceeded, met or did not meet the goal Competencies – comment box at the end of the section • Focus your comments on specific, job-related leadership behaviors. Identify the action you took as well as the impact on business results. 43

Effective Comments (Overall) • Summary – three comment boxes • Things that were done well o Highlight areas where you have exceeded expectations o Give specific examples that illustrate your viewpoint. Pick a few from the individual goal comments • Things that didn’t work o Identify areas in your skill set where you need to improve o Identify development needs in order to improve them • Opportunities for Improvement o Detail steps that you can take to improve your performance. Identify where your manager can help you. 44

Examples of Comments Good comment Poor comment Individual Goal: Deliver training to team by 3 rd Quarter Exceeds Expectations: Denise completed all training Exceeds Expectations: Denise by the end of August. She partnered with team to completed training by deadline and complete some training in outlying areas. 75 % of received good scores. the audience was trained and under budget by 10%. Survey results were very good and above. Year-end Summary: Things that didn’t work Denise needs to improve her attention to detail. Lack of attention cause project delays. One example is with Project Elephant. She turned in her project plan on time as detailed in her goal plan. However, she did not refer to the management calendar when creating the project plan. A key milestone was delayed because the decision makers were not available to make the decision due to an RCC management meeting. Denise has poor attention to detail. She needs to be sure she doesn’t send things to me with mistakes. Year-end Summary: Opportunities for improvement Attention to detail. Denise could benefit from making sure she plans out her work far enough in advance to allow time for review. She might find it helpful to review her work with another co-worker and ask that person what she might have missed. Denise needs to check and re-check her work.

Calibration

Calibration • Purpose: – standardizes how managers assign ratings and ensures performance is measured consistently across each area. – helps to ensure that top performers achieve the highest ratings and rewards and that lower performers are identified in order to receive the coaching they need to be successful. • During calibration associates’ overall appraisal scores are compared to their peers to finalize ratings. • The leadership team measures performance across their team. • The intent is to measure performance consistently across each area.

Calibration Rating Recommended Rating Label TPR Distribution Exceptional 5% Exceeds Expectations 20% Meets Expectations 65% Needs Improvement 5% Unsatisfactory 5% Total 100% During Calibration a ratings distribution guideline called Total Performance Ranking (TPR) is used by your leadership team. TPR is done at the EVP/Division level to ensure there is a large enough denominator. • Most associates will receive ratings of “Meets Expectations. ” The rating means you performed well and are consistently meeting your goals. • Those whose scores are among the top 25% of all scores will receive ratings of “Exceeds Expectations” or “Exceptional. ” • If your performance is in the bottom 10% of all performances within your functional area, the rating assigned will be “Needs Improvement” or “Unsatisfactory. ” If you receive one of these ratings, you are not eligible for a merit increase. Calibratings also helps to ensure that top performers achieve the highest ratings and rewards and that lower performers are identified in order to receive the coaching they need to be successful.

Year-end Conversation

Preparing for the Conversation • Schedule a time when you will not be interrupted. • Provide your direct report a copy of the appraisal in advance so they have a chance to review. • Create an agenda for the conversation and plan your feedback. • Develop a list of questions to engage your associate in the discussion. • Review the Year-end Appraisal and note specific examples of performance and behaviors that you want to cover. • Consider areas where the associate is performing well and where support or training may be needed.

During the Conversation • Describe the desired outcomes • Discuss accomplishments and strengths • Discuss opportunities and development needs • End on a positive note and discuss next steps • Tips: – Lead with the positive – Make it a two-way conversation – Use active listening – Check for understanding

Goal Setting Process

Goal Setting Overview Manager develops, finalizes, and cascades department and company goals Associate customizes cascaded goals and adds goals as needed Manager and associate discuss and adjust Goal Plan Manager and associate confirm final Goal Plan

SMART Goals Manager develops, finalizes, and cascades department and company goals Associate customizes cascaded goals and adds goals as needed Manager and associate discuss and adjust Goal Plan Manager and associate confirm final Goal Plan

Cascading Goals Manager develops, finalizes, and cascades department and company goals Associate customizes cascaded goals and adds goals as needed Manager and associate discuss and adjust Goal Plan Manager and associate confirm final Goal Plan

Goal Setting Overview Manager develops, finalizes, and cascades department and company goals Associate customizes cascaded goals and adds goals as needed Manager and associate discuss and adjust Goal Plan Manager and associate confirm final Goal Plan

Goal Setting Overview Manager develops, finalizes, and cascades department and company goals Associate customizes cascaded goals and adds goals as needed Manager and associate discuss and adjust Goal Plan Manager and associate confirm final Goal Plan Promote a high performance culture and develop our team by ensuring all associates achieve an on-time completion rate of 95% or better on all aspects of goal setting, performance appraisals, and succession planning a) b) c) d) Reinforce the importance of people processes in team meetings at the beginning of the year – remind associates what’s in it for them Clearly communicate expectations about completion when processes launch Track, monitor and react to completion reports: celebrate the success of those who are on target and hold others accountable Create a competition that rewards and recognizes the teams that achieve key process milestones

Goal Setting Conversation

Goal Setting Conversation Manager develops, finalizes, and cascades department and company goals Associate customizes cascaded goals and adds goals as needed Manager and associate discuss and adjust Goal Plan Manager and associate confirm final Goal Plan

Preparing for the Conversation • Review the corporate goals and your goals to identity how your direct report’s goals support them • Create an agenda for the conversation and plan your feedback. • Develop a list of questions to engage your associate in the discussion, such as what they see as their strengths and opportunities for development and how you can help them maximize performance. • Consider areas where the associate is performing well and where support or training may be needed.

During the Conversation • Explain the goals and how they tie into the company’s goals. Show the associate’s work will affect the business • Have the associate review and explain any goals they may have added • Discuss the strategies (details) of the goals. How will the goals get done? What does success look like? How will it be measured? • What competencies and behaviors are important to achieving the goal? What are the associate’s strengths and development needs? • What are some development actions that will help the associate gain needed skills or behaviors in order to accomplish the goals? • Tie the goals back to Year-end – what worked well last year and should continue? What didn’t work well and how can we approach it differently? • Come to an agreement on goals, competencies and development actions for the year.

Year-end Appraisal & Goal Setting Resources

Year-end Appraisal & Goal Setting Resources • Recognize the Performance Management Process • Complete Year-end Self Appraisal • Complete Direct Report’s Appraisals • Differentiate Performance for Goals & Competencies • Write Effective Comments for Goals & Competencies • Understand the Calibration Process • Prepare for and Conduct the Year-end & Goal Setting Conversation • Know where to go for additional resources

Next Steps Year-end Associate completes Self Appraisal Manager completes appraisal Year-end ratings are calibrated Manager and associate discuss performance Goal Setting Manager develops, finalizes, and cascades department and company goals Associate customizes cascaded goals and adds goals as needed Manager and associate discuss and adjust Goal Plan Manager and associate confirm final Goal Plan

Performance Management Site on the Hanger Corporate: Corporate > Human Resources > Performance Management Divisions: Store Workbench > Division Portal > Quick Links > Performance Management

Course Completion