managing performance may 2012
DESCRIPTION
Half day open training event held in Mississauga.TRANSCRIPT
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Managing performance
by Toronto Training and HR
May 2012
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Contents3-4 Introduction to Toronto Training
and HR5-6 Definition and setting the scene7-8 Drill9-16 Performance appraisals17-23 Performance management systems24-27 Case studies A & B28-31 High performers32-33 Promises v performance34-35 Performance? You’re harassing me!36-39 Is the job a good fit?40-41 Helping poor performers42-43 Progressive discipline44-46 Performance monitoring47-48 Mistakes around accountability
49-50 Benefits in admitting weaknesses51-54 Case studies C & D55-56 Conclusion and questions
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Introduction
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Introduction to Toronto Training and HR
• Toronto Training and HR is a specialist training and human resources consultancy headed by Timothy Holden
• 10 years in banking• 10 years in training and human resources• Freelance practitioner since 2006• The core services provided by Toronto Training and HR
are:- Training event design- Training event delivery- Reducing costs- Saving time- Improving employee engagement &
morale- Services for job seekers
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Definition
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DefinitionWhat is performance management?
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Issues to address
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Issues to address 1 of 2
Line management commitment and capabilityPerformance management is difficultPoorly designed performance management processesUnitary and pluralistic frames of referenceRhetoric and realitySystem factors are ignoredAppraisal is an inconsistent process
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Issues to address 2 of 2
Performance management is wrongly focused in financial rewardsPerformance management is a means of oppressive or coercive controlLine managers and employees tend to be disenchanted about performance management
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High performance
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High performance 1 of 2
DefinitionsDimensions of a high-performance work systemFlexible work practicesHR practices
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High performance 2 of 2
HIGH-PERFORMING ORGANIZATIONSLeadershipDesignPeopleChange managementCulture and engagement
Possible interventions
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Learning opportunities created by
performance management
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Learning opportunities created by performance
management 1 of 2To be developed so that it becomes more
challenging from the viewpoint of new tasks to be accomplished, but also that the need to acquire or extend knowledge and skills in order to carry out those tasks is revealedAgreement is reached between the managers and individuals on ‘stretch goals’ which can be achieved only if additional learning takes place
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Learning opportunities created by performance
management 2 of 2
Specific areas where performance must be improved are identified and the learning required to achieve these improvements is agreedDiscussions take place on career opportunities and the learning required to realise themAgreement is reached on how any learning needs can be met
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Performance measures for teams
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Performance measures for teams 1 of 3
OUTPUT/RESULT MEASURESAchievement of team goalsCustomer satisfactionQuantity of workQuality of workProcess knowledgeMaintenance of technical systems
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Performance measures for teams 2 of 3
INPUT/PROCESS MEASURESSupport of team processParticipationOral and written communicationCollaboration and collective effortConflict resolutionPlanning and goal-settingParticipative decision-making
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Performance measures for teams 3 of 3
INPUT/PROCESS MEASURESProblem-solving and analytical skillsCredibility and trustInterdependenceInterpersonal relationsAcceptance of changeAdaptability and flexibility
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360 degree feedback
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360 degree feedback 1 of 4
DefinitionUses of 360 degree feedbackRationale for 360 degree feedback
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360 degree feedback 2 of 4MOST LIKELY TO BE SUCCESSFUL WHEN:It has the active support of top management whom themselves take part in giving and receiving feedback and encourage everyone else to do the sameThere is commitment everywhere else to the process based on briefing, training and an understanding of the benefits to individuals as well as the organization
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360 degree feedback 3 of 4MOST LIKELY TO BE SUCCESSFUL WHEN:There is real determination by all concerned to use feedback data as the basis for developmentQuestionnaire items fit or reflect typical and significant aspects of behaviourItems covered in the questionnaire can be related to actual events experienced by the individualComprehensive and well-delivered communication and training programs are followed
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360 degree feedback 4 of 4MOST LIKELY TO BE SUCCESSFUL WHEN:No one feels threatened by the processFeedback questionnaires are relatively easy to completeBureaucracy is minimized
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How can performance management data be
used?
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How can performance management data be used?
1 of 2Demonstrate an organization’s ability to raise levels of competenceAssess how long it takes for a new employee to reach optimum performanceProvide feedback on development programs in terms of increased performance or capacity to take on new rolesAssess commitment to values and missionAssess understanding of strategy and contribution
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How can performance management data be used?
2 of 2Demonstrate the success of internal recruitment programsTrack skills levels and movement in any skills gap in the organizationIndicate how successful an organization is at achieving its objectives at individual, team and department levelMatch actual behaviour against desired behaviour
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The balanced scorecard
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The balanced scorecard 1 of 2
Financial perspectiveHow should we appear to our shareholders or stakeholders?Customer perspectiveHow should we appear to our customers?
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The balanced scorecard 2 of 2
Innovation and learning perspectiveHow will we sustain our ability to change and improve?Internal business perspectiveWhat business process or processes must we excel at?
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Performance management processes
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Performance management processes 1 of 4
Performance planningDefining expectationsObjectivesMeasuring performanceThe continuing process of performance management
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Performance management processes 2 of 4
Reviewing performanceProviding feedbackAssessing performanceRating performanceAn alternative visual approach to ratingCoachingDocumentation
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Performance management processes 3 of 4
INFORMALContinuous feedback
FORMALDesignTrainingAnnual implementationSelf-evaluationSupervisor’s evaluation
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Performance management processes 4 of 4
FORMALPerformance discussionAcknowledgementRecord keeping
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Principles of performance management
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Principles of performance management 1 of 5
It translates organizational goals into individual, team, department and divisional goalsIt helps to clarify organizational goalsIt is a continuous and evolutionary process, in which performance improves over timeIt relies on consensus and co-operation rather than control and coercion
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Principles of performance management 2 of 5
It creates a shared understanding of what is required to improve performance and how it will be achievedIt encourages self-management of individual performanceIt requires a management style that is open and honest, encouraging two-way communication between managers and employeesIt requires continuous feedback
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Principles of performance management 3 of 5
Feedback loops enable the experiences and knowledge gained on the job by individuals to modify corporate objectivesIt measures and assesses all performance against jointly agreed goalsIt should apply to all employeesIt is not primarily concerned with linking performance to financial reward
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Principles of performance management 4 of 5
APPLYING THESE PRINCIPLESA management tool which helps managers to manageDriven by organizational purpose and valuesTo obtain solutions that workOnly interested in things you can do something about and get a visible improvementFocus on changing behaviour rather than paperwork
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Principles of performance management 5 of 5
APPLYING THESE PRINCIPLESIt’s about how we manage people-it’s not a systemPerformance management is what managers do; a natural process of managementBased on accepted principles but operates flexiblySuccess depends on what the organization is and needs to be in its performance culture
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Handling criticism
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Handling criticism 1 of 2
et reviewees know that their frankness in ideLntifying any shortcomings is appreciatedGet reviewees to produce their own ideas on remedial actionProvide reviewees with reassurance if they mention as aspect of their performance which falls below their own standards but you think is satisfactory
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Handling criticism 2 of 2
If reviewees do not agree that there is a problem, be firm but specific and give examplesConfine comments to weaknesses that can be put right; do not try to alter the reviewee’s personalityDo not tackle more than two weaknesses in one meeting
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Self-efficacy
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Self-efficacy 1 of 2
Self-efficacy and self-esteem
Dimensions of self-efficacyLevelStrengthGenerality
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Self-efficacy 2 of 2
SELF-EFFICACY EXPECTATIONSPerformance accomplishmentsModelled exposureVerbal persuasionPhysiological arousal
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Engagement and performance management
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Engagement and performance management
1 of 2PrepareCommunicateEmpowerMonitorManage
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Engagement and performance management
2 of 2When things go rightWhen things go wrongDanger signsProgressive discipline
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Poor performance
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Poor performance 1 of 7
QUESTIONS TO ASKHow can this be communicated to individuals?How do we collect factual information?Reasons for problem performanceWays of dealing with the poor performer
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Poor performance 2 of 7
REASONS FOR POOR PERFORMANCELack of ability orInsufficient motivation
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Poor performance 3 of 7
ROLE FOR MANAGERSExercising effective leadershipDeveloping systems of work that do not place impossible demands on peopleAllocating work to people that is within their capacity, subject possibly to additional trainingActing as coachesUsing performance management to deal with these issues
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Poor performance 4 of 7
STEPS TO TAKEIdentify and agree the problemEstablish the reasons for the shortfallDecide on and agree on the action requiredResource the actionMonitor and provide feedback
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Poor performance 5 of 7
FOUR DIMENSIONS INVOLVEDIt’s the employeeIt’s the supervisor/poor employee preparationIt’s the jobIt’s the workplace atmosphere
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Poor performance 6 of 7
POST-RECESSION TRAUMATIC RESIDUEScrew-upsSlackers
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Poor performance 7 of 7
Just causeThe test for cause in poor performance
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Ways of improving performance
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Ways of improving performance 1 of 5
Reasons ObjectivesExternal and internalSystemsDesignMeasuresOutcomeMonitoringCosts
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Ways of improving performance 2 of 5
QUESTIONS TO ASKWhy are we assessing this person?How important is it that the assessment is highly accurate?Is the assessment compulsory?How much time and effort are we prepared to put into the process?How frequently do we want the assessment completed?
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Ways of improving performance 3 of 5
QUESTIONS TO ASKWho should do the judging?What sort of evidence is needed?Who has sight of the conclusions of the assessment?What will happen as a result of the assessment?Who is responsible for ensuring that any follow-up takes place?
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Ways of improving performance 4 of 5
PERFORMANCE IMPROVEMENT PLANSDefinitionDefine the problemDefine the competencies or behaviours where improvement is requiredEstablish the priorities of the consequencesIdentify the standards upon which performance will be measured for each of the competencies identified
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Ways of improving performance 5 of 5
PERFORMANCE IMPROVEMENT PLANSEstablish short-range and long-range goals and timetables for accomplishing change in performance/behaviourDevelop an action planEstablish periodic review dates to measure actual performance against expectationsCreate a file for each employeeDefine the consequences of failing to meet achieve standards
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Outstanding performers who ultimately fail
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Preparing a business case for an automated
performance management system 1 of 2What are you proposing?
Why is there a need for change?What are the benefits of changing?How are we going to do it?What are the costs of changing?What are the risks involved?What resources are required?
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Preparing a business case for an automated
performance management system 2 of 2What are the alternatives?
What is the financial significance?What is the plan of execution?
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Outstanding performers who ultimately fail
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Outstanding performers who will ultimately fail
Engaged dreamersDisengaged starsMisaligned stars
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Common performance rating errors
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Common performance rating errors
Lack of differentiationRecency effectHalo effectHorns effectPersonal bias and favouritismInaccurate information and preparation
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The performance management cycle
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The performance management cycle
PlanActReviewMonitor
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Performance management and line
managers
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Performance management and line managers 1 of 2
Leadership from the topInvolvement in design and development of processesInclusion of the ability to manage performance as a key criterion in assessing performanceUse of 360 degree feedback to assess performance abilities of line managersConduct of employee surveys and their reactions to performance management
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Performance management and line managers 2 of 2
Systematic formal training in the performance management skills managers need to useCoaching and guidance for managers to supplement formal trainingHR operating as a genuine business partner alongside line managers so they can appreciate the significance of performance management to them
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Common problems
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Common problems
Lack of top management supportPerception of the process as time-consuming “busywork”Failure to complete on timeFailure to communicate clear and specific goals and expectationsFailure to communicate changed goals Lack of consistency
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Questions to ask
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Questions to ask 1 of 2
What do we mean by ‘high performance’?Do our people understand what is expected of them in terms of performance?How can we align individual and organizational objectives?To what extent is performance management about supporting the core values of the organization?Can we identify good and poor performance?
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Questions to ask 1 of 2
Can we establish the reasons for good or not so good performance?How can we develop and motivate people to perform well?How can we do all that fairly, consistently and without discrimination?
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Performance criteria
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Performance criteria
SMART goals
Examples of effective goals:Increase revenue by 10% during the first quarterReduce office expenses by 25% as compared with the prior year actual costsDecrease employee absences from three days to one day per quarter
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Types of performance management systems
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Types of performance management systems
RankingForced distribution360 degree feedbackCompetency-basedManagement by objectivesGraphic rating scalesBehaviourally anchored rating scales
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Types of performance management systems
RankingForced distribution360 degree feedbackCompetency-basedManagement by objectivesGraphic rating scalesBehaviourally anchored rating scales
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Designing a performance
management program
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Designing a performance management program 1 of
2SHOULD ENSUREThat all employees have an opportunity to discuss their future goals/training needs with their manager to help develop to their fullest potentialThat strengths and weaknesses of all employees are recorded regularly so that the organization can make informed and accurate decisions regarding an employee’s contribution, career development, promotional opportunities, pay increases, etc.
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Designing a performance management program 2 of
2MAJOR UNDERLYING ELEMENTSSupervisor responsibilityPerformance criteriaCommunicationContinuous feedbackDevelopmental coachingLink to compensationCareer path
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Two-way conversations
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Two way conversations 1 of 3
The employee knows exactly where he or she stands in relation to achieving goals and reaching performance milestones that contribute to career development, promotions, etc
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Two way conversations 2 of 3
The manager gains insights into the motivations of the people working for him or her through the required conversations
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Two way conversations 3 of 3
The organization retains motivated employees who understand their role and the roles of others in contributing to the overall success of the organization
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Addressing poor performance
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Addressing poor performance 1 of 3
Assess capabilitySet clear standardsProvide feedbackDon’t delayFocus on the factsGive time to improveClarify duty to act
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Addressing poor performance 2 of 3
KEY POINTSCommunicate clear and measurable standardsMonitor performanceGive feedback for early correctionInvestigate fully and create a performance improvement planProvide sufficient time to improve and escalate to a formal process if standards are not met
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Addressing poor performance 3 of 3
KEY POINTSDismiss the employee if they cannot meet the standard required and no further adjustments can be made to help them
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Business execution characteristics
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Business execution characteristics
Goal number dimensionAlignmentSystem usage dimensionRatings scale
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Typical difficulties with performance management
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Typical difficulties with performance
management 1 of 2Quality of one-to-one manager/employee discussionsComplaints at standardized, jargon-filled, prescriptive and overly-detailed paperworkLine managers lacking the required competence and commitment for the processEmployees having a poor understanding of the goals and point of the process
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Typical difficulties with performance
management 2 of 2Rating and pay agendas tending to dominate and irritate, driving out feedback and development planningLack of follow-up and practical action being taken between the formal reviews
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Helping poor performers
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Helping poor performersSay somethingGive it to them straightCheck they understandMake a planHave hopeAvoid assumptionsShare your visionBe there
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Case study A
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Case study A
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Conclusion & questions
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Conclusion & questions
SummaryQuestions