human resource audit – performance management system
DESCRIPTION
State Employees Credit Union. Human Resource Audit – Performance Management System. Laura Beatty Meredith Frisbie Shelby Westbrook Zach Smith North Carolina State University – MIE436. Presentation Overview. Orientation to SECU What is Performance Management (PM)? PM conducted at SECU - PowerPoint PPT PresentationTRANSCRIPT
Human Resource Audit – Performance Management System
Laura BeattyMeredith FrisbieShelby WestbrookZach SmithNorth Carolina State University – MIE436
State Employees Credit Union1
Presentation Overview• Orientation to SECU• What is Performance Management
(PM)?• PM conducted at SECU• How PM is being handled
▫ Strengths▫ Weaknesses
• Recommendations for improving PM▫ Areas in need of improvement▫ How to improve deficient PM
areas▫ Justification/Outcome of
improvements• Conclusion• Questions
2
Orientation to SECU• Non-profit financial cooperative• Founded June 4, 1937• "People Helping People in North Carolina." • Limited Membership with approx. 1.5 million members.• Promote thrift among its members by affording them an
opportunity to accumulate their savings.• Creates a source of credit at a fair and reasonable rate of
interest for members.• Provides an opportunity for members to use and control
their money to improve their economic and social condition.
• 4,200 employees , 225 branches, and more than 1,000 ATMs
• Exponential growth rates (State Employees' Credit Union, 2009)
3
•Performance Management is the continuous process of identifying, measuring, and developing the performance of individuals and/or teams, with the goal of aligning performance with the strategic goals of the organization. (Aguinis, 2009, p. 2).
What is Performance Management?
4
• HR/Personnel Department▫ Centralized internally
• Manages PM through PMS developed in 2001▫ Yearly employee self-appraisals▫ Yearly employee evaluations by
supervisor▫ Progressive discipline policy▫ Limited topic grievance process▫ Performance improvement through
training▫ Documentation of PM actions and
events(Woodson,
2009)
Current PM Practices at SECU
Section IA
5
PM’s Contribution to Strategic Goals
• Facilitation of strategic goals ▫ Yearly online evaluations
• Attraction ▫ Education decides salary▫ Scholarships
• Retention▫ Progressive discipline policy
Additional evaluations
• Motivation▫ Modules
Lead to promotions
Section IB
6
PM Consistency with Other HR Functions
• Training and Development (Source)▫ Expectations▫ Ongoing process
• Compensation (Source)▫ Wages - based on education and experience▫ Merit pay – Merit pay given in July by board
decision
• Recruiting and Selection (Source)▫ Advertised by the branch▫ Posted internally and externally
(Woodson, 2009) Section IC
7
Evaluation of PM Practices by SECU
• Does not have distinctive PM evaluation system▫ Lack on-going, continual process for offering
feedback▫ Only report issues to HR manager when necessary
• PMS not working properly▫ Employees have no input/say in design ▫ System is outdated (not changed since 2001)▫ Just recently , evaluations became electronically-
based
Section ID
8
Strengths
• Yearly online evaluations (Steingold, 2009)▫ Easy to use/store/transfer▫ Legal protection▫ Promotion
The Form (State Employees' Credit Union, 2009)
▫ Graphic Rating Scale▫ Short answer section-open-ended
questions▫ Free to ask for feedback at anytime
Section II
9
Evaluation FormEMPLOYEE EVALUATION FORM
EMPLOYEE NAME (Last, First, MI)
EMPLOYEE #
POSITION TITLE Designate precisely (ie. Senior Teller, Loan Officer, MSR. etc.)
DATE OF EMPLOYMENT
POSITION STATUS EEXXEEMMPPTT NNOONN--EEXXEEMMPPTT
BRANCH/DEPARTMENT
EVALUATION COMPLETED BY EEMMPPLLOOYYEEEE SSUUPPEERRVVIISSOORR
SUPERVISOR
DATE OF EVALUATION
DATE OF LAST EVALUATION
COMPLETE EACH SECTION THOROUGHLY AND USE ADDITIONAL PAPER IF NEEDED.
1. Note areas of professional development since your last evaluation (training/education). 2. Describe your strengths as they relate to your job duties and responsibilities. 3. Identify areas you could improve to enhance your effectiveness. 4. What would you like to see changed within your specific work area and/or the Credit Union? 5. What suggestions or recommendations do you have for implementing these changes? 6. What are your short-term and/or long-term career goals? 7. List any goals you have achieved or contributions you have made since your last evaluation.
SIGNATURES: X_________________________________________ VP DATE X_____________________________________ EMPLOYEE DATE X_________________________________________ SVP DATE X_____________________________________ SUPERVISOR DATE X_________________________________________ PRESIDENT – SR. EXECUTIVE VP DATE
SECU # 442 A (1/01)
(State Employees' Credit Union, 2009)
10
Weaknesses•1) Lack of incorporation of
organization’s mission, vision, and goals into their PMS (Source)
•2) Absence of coaching and feedback in the workplace (Source)
•3) Facilitation of performance appraisal rather than a PM (Source)
•4) Outdated PM practices (Staneart, 2009)
Section II
11
Mission•“People helping people in North Carolina”
▫Geared towards members, not employees▫No postings of statement around office▫Needs to include
why the organization exists the scope of the organization’s activities what products and/or services are being
offered
Section III
12
Vision• “To challenge State Employees’ Credit Union
to provide opportunities for members to improve their economic and social condition; to encourage thrift among members; to create sources of credit at fair and reasonable rates of interest; and to broaden the economic awareness of members through planned programs of consumer protection”
▫Needs to be more future-focused, motivating, and inspiring to employees
Section III
13
Coaching/Feedback Implementation (Aguinis, 2009)
•1) Set developmental goals•2) Identify resources and strategies•3) Implement strategies•4) Observation and documentation•5) Feedback
Section III
14
Performance Appraisal• Performance Appraisal (Aguinis, 2009)
▫ Gives a logical description of an employees strengths and weaknesses
• PMS include six steps: ▫ 1) prerequisites▫ 2) performance planning▫ 3) performance execution▫ 4) performance assessment ▫ 5) performance review ▫ 6) performance renewal and re-contracting
• Ongoing
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Outdated PM Practices
Section III
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• Evident by low validity in PM Process (Staneart, 2009)▫ Results from typical arbitrary and
subjective approaches▫ Is the practice related back to the
job performed?▫ i.e. coaching, feedback,
appraisals• Contaminated Material and
Information (Staneart, 2009)▫ SECU is currently using invalid
metrics in measuring performance due to dynamic job nature. (Woodson, 2009)
“All businesses and organizations alike, in order to operate an ideal PMS, require a constant update and improvement in the way they apply certain PM practices, i.e.. appraisals and feedback.”
-Doug Staneart, CEO of the
Leaders Institute
Implementing New PM System• Preparation of New PMS
▫ Achieve system buy-in by employees• Communication Plan
▫ Communicate important factors of implementing a new PMS in an organization and its benefits
▫ Avoid biases, consider employees, promote positive, & document
• Appeals Process▫ Create tiers in the process for advancement of
unresolved issues• Training Programs
▫ Rater Training, RET, FOR, BO, SL• Pilot Testing
▫ Discover problem, fix problems, gain input, sample size• Continuous Monitoring and Evaluation
▫ System satisfaction, cost/benefit, performance level▫ Continuous update of PM practices
Section III
17
Questions/Comments18
References19
Aguinis, Herman. Performance Management Second Edition. Upper Saddle River, New Jersey: Pearson Prentice Hall, 2009.
Cross-Training Boosts Efficiency. CU360, Credit Union National Association, Inc. 7/27/2009, Vol. 35 Issue 13, p6-7, 2p; (AN 43374399), Business Source Premier.
Holley, Don. How to retain good staff. Manufacturers' Monthly, Sep2009, p17-17, 1/4p; (AN 44327636), Business Source Premier.
Noe, R. A., Hollenbeck, J. R., & Gerhart, B. (2007). Assessing Performance and Developing Employees. In J. Weimeister (Ed.), Fundamentals of Human Resource
Management (pp.303-304). New York, NY: McGraw-Hill/Irwin.
Staneart, D. (2009). Is Your Performance Review System Outdated? . Retrieved November 14, 2009, from Business Know-How:
http://www.businessknowhow.com/manage/perfappr.htm
Steingold, F. S. (2009). Personnel Practices. In A. Schroeder (Ed.), The Employer's Legal Handbook (pp. 47-50). Berkeley, CA: Nolo.
Woodson, Bob. Senior Vice President - Personnel and Human Resources Zachary Smith. 20 September 2009.