Implementing a Performance Implementing a Performance Management System: OverviewManagement System: Overview
PreparationPreparation Communication PlanCommunication Plan Appeals ProcessAppeals Process Training ProgramsTraining Programs Pilot TestingPilot Testing Ongoing Monitoring and Ongoing Monitoring and
EvaluationEvaluation
PreparationPreparation Need to gain system buy-in Need to gain system buy-in
throughthrough::• Communication plan regarding Communication plan regarding
Performance Management Performance Management systemsystem Including appeals processIncluding appeals process
• Training programs for ratersTraining programs for raters• Pilot testing systemPilot testing system
Ongoing monitoring and Ongoing monitoring and evaluationevaluation
Communication Plan answers:Communication Plan answers: What is Performance Management What is Performance Management
(PM)?(PM)? How does PM fit in our strategy?How does PM fit in our strategy? What’s in it for me?What’s in it for me? How does it work?How does it work? What are our roles and What are our roles and
responsibilities?responsibilities? How does PM relate to other How does PM relate to other
initiatives?initiatives?
Cognitive Biases that affect Cognitive Biases that affect communications effectiveness communications effectiveness
Selective exposureSelective exposure Selective perceptionSelective perception Selective retentionSelective retention
To minimize effects of cognitive biases:To minimize effects of cognitive biases:
A. Consider employees:A. Consider employees: Involve employees in system Involve employees in system
designdesign Show how employee needs are Show how employee needs are
metmet
To minimize effects of cognitive biases To minimize effects of cognitive biases (continued):(continued):
B. Emphasize the positiveB. Emphasize the positive Use credible communicatorsUse credible communicators Strike first – create positive Strike first – create positive
attitudeattitude Provide facts and conclusionsProvide facts and conclusions
To minimize effects of cognitive biases To minimize effects of cognitive biases (continued):(continued):
C. Repeat, document, be C. Repeat, document, be consistentconsistent
Put it in writingPut it in writing Use multiple channels of Use multiple channels of
communicationcommunication Say it, and then – say it againSay it, and then – say it again
Appeals ProcessAppeals Process
Promote Employee buy-in to PM Promote Employee buy-in to PM systemsystem• Amicable/Non-retaliatory Amicable/Non-retaliatory • Resolution of disagreementsResolution of disagreements
Appeals ProcessAppeals Process Employees can question two Employees can question two
types of issues:types of issues:• Judgmental Judgmental
(validity of evaluation)(validity of evaluation)
• AdministrativeAdministrative (whether policies and procedures (whether policies and procedures
were followed)were followed)
Appeals ProcessAppeals Process Level 1Level 1
• HR reviews facts, policies, proceduresHR reviews facts, policies, procedures• HR reports to supervisor/employeeHR reports to supervisor/employee• HR attempts to negotiate settlementHR attempts to negotiate settlement
Level 2Level 2• Arbitrator (panel of peers and Arbitrator (panel of peers and
managers)managers) and/or and/or
• High-level manager – final decisionHigh-level manager – final decision
Rater Training ProgramsRater Training Programs Content Areas to includeContent Areas to include
• InformationInformation• Identifying, Observing, Recording, Identifying, Observing, Recording,
EvaluatingEvaluating• How to Interact with EmployeesHow to Interact with Employees
Choices of Training Programs to Choices of Training Programs to implementimplement• Rater Error TrainingRater Error Training• Frame of Reference TrainingFrame of Reference Training• Behavioral ObservationBehavioral Observation• Self-leadership TrainingSelf-leadership Training
ContentContent
A.A. Information - how the Information - how the system workssystem works• Reasons for implementing the Reasons for implementing the
performance management performance management systemsystem
• InformationInformation the appraisal formthe appraisal form system mechanicssystem mechanics
Content Content (continued)(continued)
B. Identifying, observing, recording, B. Identifying, observing, recording, and evaluating performanceand evaluating performance• How to identify and rank job How to identify and rank job
activitiesactivities• How to observe, record, and How to observe, record, and
measure performancemeasure performance• How to minimize rating errorsHow to minimize rating errors
Content Content (continued)(continued)
C. How to interact with C. How to interact with employees when they receive employees when they receive performance informationperformance information• How to conduct an appraisal How to conduct an appraisal
interviewinterview• How to train, counsel, and How to train, counsel, and
coachcoach
Choices of Training ProgramsChoices of Training Programs
Rater Error Training (RET)Rater Error Training (RET) Frame of Reference Training Frame of Reference Training
(FOR)(FOR) Behavioral Observation Behavioral Observation
Training (BO)Training (BO) Self-leadership Training (SL)Self-leadership Training (SL)
Rater Error Training (RET)Rater Error Training (RET)
Goals of Rater Error Training Goals of Rater Error Training (RET)(RET)• Make raters aware of types of Make raters aware of types of
rating errorsrating errors• Help raters minimize errorsHelp raters minimize errors• Increase rating accuracyIncrease rating accuracy
Intentional rating errorsIntentional rating errors
Leniency (inflation)Leniency (inflation) Severity (deflation)Severity (deflation) Central tendency Central tendency
Unintentional rating errorsUnintentional rating errors
Similar to MeSimilar to Me HaloHalo Primacy Primacy First First
ImpressionImpression ContrastContrast
StereotypeStereotype NegativityNegativity RecencyRecency SpilloverSpillover AttributionAttribution
Possible Solutions for Types of Rating Possible Solutions for Types of Rating ErrorsErrors
IntentionalIntentional• Focus on motivationFocus on motivation• Demonstrate benefits of Demonstrate benefits of
providing accurate ratingsproviding accurate ratings UnintentionalUnintentional
• Alert raters to different errors Alert raters to different errors and their causesand their causes
Frame of Reference Training (FOR)Frame of Reference Training (FOR)
Goal of FOR*Goal of FOR*• Raters develop common frame Raters develop common frame
of referenceof reference Observing performanceObserving performance Evaluating performanceEvaluating performance
**Most appropriate when PM appraisal system Most appropriate when PM appraisal system focuses on behaviorsfocuses on behaviors
Expected Results of FORExpected Results of FOR
Raters provide consistent, more Raters provide consistent, more accurate ratingsaccurate ratings
Raters help employees design Raters help employees design effective development planseffective development plans
Behavioral Observation Training (BO)Behavioral Observation Training (BO) Goals of BOGoals of BO
• Minimize unintentional rating errorsMinimize unintentional rating errors• Improve rater skills by focusing on Improve rater skills by focusing on
how raters:how raters: Observe performanceObserve performance Store information about performanceStore information about performance Recall information about performanceRecall information about performance Use information about performanceUse information about performance
Self-leadership Training (SL)Self-leadership Training (SL)
Goals of SLGoals of SL• Improve rater confidence in Improve rater confidence in
ability to manage performanceability to manage performance• Enhance mental processesEnhance mental processes• Increase self-efficacyIncrease self-efficacy
Pilot TestingPilot Testing
Provides ability toProvides ability to • Discover potential problemsDiscover potential problems• Fix them Fix them
Pilot Testing - benefitsPilot Testing - benefits
Gain information from potential Gain information from potential participantsparticipants
Learn about difficulties/obstaclesLearn about difficulties/obstacles Collect recommendations on how Collect recommendations on how
to improve to improve Understand personal reactionsUnderstand personal reactions Get early buy-in Get early buy-in Get higher rate of acceptanceGet higher rate of acceptance
Implementing a Pilot TestImplementing a Pilot Test
Roll out test version with sample groupRoll out test version with sample group• Staff and jobs generalizable to organizationStaff and jobs generalizable to organization
Fully implement planned systemFully implement planned system• All participants keep records of issues All participants keep records of issues
encounteredencountered• Do not record appraisal scoresDo not record appraisal scores• Collect input from all participantsCollect input from all participants
Ongoing Monitoring and EvaluationOngoing Monitoring and Evaluation
When system is implemented, When system is implemented, decide:decide:• How to evaluate system How to evaluate system
effectivenesseffectiveness• How to measure implementationHow to measure implementation• How to measure resultsHow to measure results
Evaluation data to collect:Evaluation data to collect:
Reactions to the systemReactions to the system Assessments of requirementsAssessments of requirements
• OperationalOperational• TechnicalTechnical
Effectiveness of performance Effectiveness of performance ratingsratings
Indicators to considerIndicators to consider
Number of individuals evaluatedNumber of individuals evaluated Distribution of performance ratingsDistribution of performance ratings Quality of informationQuality of information Quality of performance discussion Quality of performance discussion
meetingsmeetings System satisfactionSystem satisfaction Cost/benefit ratioCost/benefit ratio Unit-level and organization-level Unit-level and organization-level
performanceperformance
Quick ReviewQuick Review
PreparationPreparation Communication PlanCommunication Plan Appeals ProcessAppeals Process Training ProgramsTraining Programs Pilot TestingPilot Testing Ongoing Monitoring and Ongoing Monitoring and
EvaluationEvaluation