Reading 8: Effective Performance Management

Question 0

BEST PRACTICES IN PERFORMANCE MANAGEMENT SYSTEM

WHAT IS PERFORMANCE MANAGEMENT?

Performance management is a cycle of managing employee performance for success where ___________are created, __________ are incorporated and ____________feedback is provided for continuous improvement.

The performance management system is designed to assist management and employees alike in communicating performance goals, Sharing performance information on a regular basis, fostering learning and development, and exploring career opportunities.

Answer 0

Goals

Competencies

Constructive

Question 1

BEST PRACTICES AND PERFORMANCE MANAGEMENT SYSTEM

The following is a list of some of the best practices associated with performance management systems as observed the research and practical experience in the field.

1. PMS is consistently described and applied
2. Clear criteria for rating
3. Criteria appropriate to job performance
4. Training on PMS across-the-board
5. Outcomes being evaluated are within the control of the employee
6. Appropriate feedback
7. Productive feedback interviews
8. Senior management commitment
9. Link between the appraisal and Outcome
10. Congruency of the PMS with the mission and goals of the organization
11. User friendliness of the PMS
12. Input from employees

Answer 1

1. PMS is consistently described and applied
   The process is effectively applied and employees benefit from and perceive objective, systematic and consistent evaluations.
2. Clear criteria for rating
   The criteria or standards against which employees are being rated are clearly described, shared, and apply to all employees who are being evaluated. This promotes a fair and transparent system.
3. Criteria appropriate to job performance
   Performance measures are taken on the most important behaviors and results of the job. The scales are accurate, transparent and relevant.
4. Training on PMS across-the-board
   Both people managers and employees are adequately trained on PMS policies and Practices, on how to use the system and where to find help. This ensures that all have a common understanding of the system.
5. Outcomes being evaluated are within the control of the employee
   Circumstances beyond the control of the employees may make it unfair to hold them accountable for certain aspects of their performance, or certain objectives.
6. Appropriate feedback
   Evidence shows that immediate, constructive and specific feedback produces the best results in terms of motivation to improve and employee reaction to the feedback.
7. Productive feedback interviews
   Often a delicate situation and supervisors often lack the training on how to effectively give feedback. This can easily lead to emotional interviews, one-sided discussions, and disagreements. When the supervisor provide socially acceptable and constructive feedback and when the employee has prepared with a self-assessment or at the very least self introspection, the table is set for a fruitful performance conversation.
8. Senior management commitment
   A performance management system will have a better chance of succeeding with the cooperation and support of senior management.
9. Link between the appraisal and Outcome
   In order for PMS to work, each of the parties involved (organization, people managers, employees) needs tangible and clear incentives. If providing constructive feedback is too costly for supervisors in terms of grievances, or if there is no budget for training and development or salary increases for employees, there is a chance that they will resist the apparent waste of time.
10. Congruency of the PMS with the mission and goals of the organization
    Mission and corporate goal should help to drive the system, and in turn, the outcome of the system will facilitate the attainment of the mission and goals.
11. User friendliness of the PMS
    The PMS should be clear, efficient, and simple as possible. Performance management is not something that should be done in addition to the regular workload, it should be part and parcel of the regular tasks of people managers.
12. Input from employees
    Recent research and trends in human resource management have proven the value of involving employees in the management of their own performance.

Question 2

PROVIDING ONGOING FEEDBACK

Performance management should be a dynamic process. Progress on objectives must be monitored formally at midyear with continual appropriate ____________and discussion throughout the year.

Answer 2

Feedback

Question 3

PROVIDING ONGOING FEEDBACK

Two-way communication ensures that there are no surprises at the evaluation stage and contributes to making the ______________ a positive and enriching experience.

Answer 3

Management of performance

Question 4

PROVIDING ONGOING FEEDBACK: DOCUMENTING FEEDBACK SESSIONS

Formal versus informal feedback: what is the difference?

Formal:

Throughout the year, feedback on performance can come from a variety of sources such as the work itself, the employee, the supervisor, clients, as well as other employees involved in the same work.

Regular reviews are a _____________to determine whether the plans and methods to achieve objectives are working as intended.

Formal progress reviews are regularly scheduled to determine:

• The status of the work in progress
• what needs revision
• what should be maintained
• what can be improved and how to improve it
• The employees performance to date

Answer 4

Systematic way

Question 5

PROVIDING ONGOING FEEDBACK: DOCUMENTING FEEDBACK SESSIONS

Formal versus informal feedback: what is the difference?

Informal:

Informal feedback is not necessarily planned, is more spontaneous, and occurs preferably right after the manager (or a colleague, a client) makes an observation. It is meant to ____________ desirable behaviors, and to modify unwanted behaviors or to provide pointers on how to improve performance.

Answer 5

Reinforce

Question 6

PROVIDING ONGOING FEEDBACK: DOCUMENTING FEEDBACK SESSIONS

HOW AND WHEN TO DOCUMENT PERFORMANCE FEEDBACK

Whether formal or informal feedback is given, notes on the observations leading to the performance evaluation, the feedback itself, and the employees input or reactions to the feedback should be taken ___________ throughout the year, doing so will enhance employees confidence in the accuracy of the performance of evaluation and will foster trust in the performance management process.

With these notes in hand, the formal process of ongoing review and evaluation will become much less of a guessing game and more of a review of the performance information sampled throughout the year.

Answer 6

Regularly

Question 7

PROVIDING ONGOING FEEDBACK: DOCUMENTING FEEDBACK SESSIONS

HOW AND WHEN TO DOCUMENT PERFORMANCE FEEDBACK

When taking performance notes, is important to note the situation, the behavior and the consequence/result of the behavior.
The manager should ____________from writing about feelings invoked by the behavior, attribute intentions that have not been validated with the employee or other means, or label, characterize or categorize the employee in his/her entirety.

Answer 7

Refrain.

Question 8

PROVIDING ONGOING FEEDBACK: DOCUMENTING FEEDBACK SESSIONS

HOW AND WHEN TO DOCUMENT PERFORMANCE FEEDBACK

The PMS is operating within the context of _____________, team, manager, and employee pressures and interests.

An effective way to reduce subjectivity and improve the PMS is to set performance management goals for managers, reward them for evaluation accuracy and sustained and effective management of employee performance.

Answer 8

Organizational

Question 9

PROVIDING ONGOING FEEDBACK: PERFORMANCE MANAGEMENT STYLES

Although there are different models of management styles, there are usually three broad categories most would agree upon:

What are the three?

Answer 9

1. The warden
   The warden who is waiting to catch the employee at doing something wrong in order to point out his/her weakness and enforce the rules.
   As the warden you are suggesting through your communication and your body language that you do not trust your employees, you expect them to perform poorly and that only through such a system can you hope of achieving your objectives. You believe in negative reinforcement and use coercion to develop performance.
2. The softie
   The softy who is waiting to catch the employee doing something good and hides when something not so good has occurred, in order to avoid conflict and maintain good relations.
   As a softy you are afraid of ruining good relationships with your employees. You do more damage than good because employees never know what is and is not expected or acceptable. You are unable to provide them with developmental opportunities and thus employees become demotivated and discouraged.
3. The coach
   The coach who is waiting to catch the employee doing something in order to assist the individual through constructive feedback on what he/she should or should not be doing and how to do it otherwise in order to develop themself toward successful performance.
   A Coach works with their staff to intervene when necessary to provide reinforcement of positive performance and behaviors. Your feedback is constructive, immediate, specific and sincere and is focused on the particular situation at hand. In most organizations this will be the preferred managerial style.

Question 10

PROVIDING ONGOING FEEDBACK: THE MOTIVATING ROLE IN PERFORMANCE MANAGEMENT

Effective feedback is ___________, ____________, ____________and is aimed at improving performance. Effective feedback occurs on a continual basis to ensure that the lines of communication between the supervisor and employee are always open.

Answer 10

Immediate
Specific
Positive

Question 11

PROVIDING ONGOING FEEDBACK: THE MOTIVATING ROLE IN PERFORMANCE MANAGEMENT

Immediate feedback:

Is provided so that employees are receiving timely recognition for work well done, and ____________can be corrected and improvements made quickly.

Answer 11

Problems

Question 12

PROVIDING ONGOING FEEDBACK: THE MOTIVATING ROLE IN PERFORMANCE MANAGEMENT

Positive and constructive feedback:

Praise should always be given for significant accomplishments and work well done. Constructive feedback should be provided when _________________is less than expected - for example, by suggesting ways the employee can improve performance.

Answer 12

Performance

Question 13

PROVIDING ONGOING FEEDBACK: THE MOTIVATING ROLE IN PERFORMANCE MANAGEMENT

Specific feedback:

To improve performance the employee needs to have specific ________________about how they are or are not meeting expectations.

Answer 13

Information

Question 14

PROVIDING ONGOING FEEDBACK: THE MOTIVATING ROLE IN PERFORMANCE MANAGEMENT

The following is a typology that is often used when describing employees abilities and motivations:

1. Motivating the Willing and Able
   To remain top performers, your best employees require positive reinforcement when they have completed a task successfully, accepted a particularly difficult challenge, learned a new skill or behavior, or have added value through the contribution of new ideas or approaches.
2. Motivating the __________ but Unable
   Employees that are willing but for different reasons, unable to perform, need coaching. Coaching comes in the form of on-the-job training, partnering with a more experienced employee, providing specific tools such as manuals and frequent feedback sessions. Constructive feedback is specific, sincere and timely. It is your responsibility as a manager to provide constructive feedback to assist them in becoming able as well as willing.
3. Motivating the Able but __________
   These employees may have once been your star performers. However, when they did not receive any recognition for their performance, they questioned whether they were actually contributing in the most effective way. Without the reinforcement, they eventually became unwilling to continue at Peak performance.
4. Motivating the Unwilling and __________.
   This group of employees is particularly difficult to motivate especially when they are:
   * continually resist your attempts at re-energizing their enthusiasm
   * regularly apply a negative influence on the other employees
   * do not accept responsibility for their own performance
   Often, this type of employee will require a performance improvement plan with fixed deadlines or, a transfer to a role more adapted to their abilities and motivation, or if all else fails, a career transition plan.

Answer 14

1. Motivating the willing and able
2. Motivating the willing but unable
3. Motivating the able but Unwilling
4. Motivating the unwilling and unable

Question 15

PROVIDING ONGOING FEEDBACK: THE CONFRONTING ROLE IN PERFORMANCE MANAGEMENT

In confronting the employee on poor performance the manager should:

1. Judge his/her own performance first
2. Clearly articulate what he/she and the employee want
3. Secure agreement that a performance problem exists
4. Communicate to the employee
5. Identify the cause of the problem
6. Focus on the work
7. Find mutually agreeable solution
8. Become a role model

Answer 15

1. Judge his/her own performance first
   Knowing oneself makes it easier to see others accurately and is itself a managerial ability.
2. Clearly articulate what he/she and the employee want
   Chances are they both want the same thing but have different views on how to achieve the objective.
3. Secure agreement that a performance problem exists
   Without having the employee agree that a performance or communication problem exists, it will be very difficult to correct the problem.
4. Communicate to the employee
   That the behavior (or lack thereof) is disruptive if it upsets the quality of the work in the workplace, which ultimately brings in poor results.
5. Identify the cause of the problem
   Asking the employee to analyze the causes of the problem may give the manager Valuable insights into what has gone wrong and how to correct it.
   When identifying performance problems, ask yourself the following questions:
   * is the reason for the problem outside of the managers control?
   * what barriers restrict performance?
   * were the objective sufficiently clear?
   * does the underperformance expose a development need?
   * is the person capable of developing enough to perform as expected?
6. Focus on the work
   Focus on the work of the employee instead of on him/her personally. Never referred to personality or attitudes as somehow lacking or otherwise responsible for poor performance.
7. Find mutually agreeable solution
   It is advisable to ask the employee for ways to resolve the problem before offering your own ideas. The reason for that is that the employees perspective may change your assessment of the situation and call for a readjustment of the remedy you had in mind.
8. Become a role model
   Become a role model for employees. Showing the employees how to integrate the organizations values and vision into their daily work behaviors.

Question 16

PROVIDING ONGOING FEEDBACK: THE CONFRONTING ROLE IN PERFORMANCE MANAGEMENT

Addressing performance problems:

Problem

1. Capability - The inability to perform the job as defined, perhaps as a result of a selection error or lack of experience.
2. Training- A lack of necessary skills or information that is preventing the employee from performing to a standard.
3. Motivation- A decrease in effectiveness due to under stimulation, boredom, or stress resulting from too great a challenge.
4. Distraction- an inability to concentrate and be effective at work, perhaps due to a personal problem that is claiming an individuals attention
5. Alienation- A rejection of, and feeling of noninvolvement in the job and organization where there is a history of long-term frustration.

Answer 16

Suggested ways to address the problem:

1. Capability- provide support and training to enable the employee to tackle the job effectively.
   If Training is not the answer, consider transferring the employee to a more suitable role.
2. Training- identify gaps in knowledge, skills, or approach, and select appropriate development activities to help the staff member meet required standards.
   Set objectives for continuous improvement
3. Motivation- identify development activities that will re-energize the employee in their role.
   Review tasks that have been delegated to the employee for signs of overstretching.
4. Distraction- The sympathetic. If necessary, agree to time off work so that problems can be attended to.
   Recognize when to refer someone to professional help if performance fails to pick up.
5. Alienation- find out how the problem has arisen, lack of challenge or neglect?
   Consider referral to a career counselor to help the employee to resolve their issues.

Question 17

EVALUATING PERFORMANCE

The more employees participate in goal setting, the preparation of the evaluation review, and in the review itself, the more they will be satisfied with the _______________, be motivated to improve, and the more they will feel the appraisal process is fair.

Answer 17

Appraisal process

Question 18

EVALUATING PERFORMANCE: THE PERFORMANCE INTERVIEW

1. Prior to the interview the manager should
2. During the interview the manager should
3. After the interview the manager should

Answer 18

1. Prior to the interview the manager should
   * give the employee notice about meeting date, time, place
   * ensure that the employee does a self-evaluation and communicates it to the manager
   * review the results from the previous evaluation
   * review performance observation notes accumulated over the year or since the last evaluation
   * gather performance and development feedback from the employee, other employees, managers and clients who have worked with the employee over the year
   * come to the meeting with an initial draft of the evaluation
2. During the interview the manager should
   * explain the purpose of the interview and agree on the agenda
   * complement employee on accomplishment
   * discuss the job evaluations completed by the employee, and the supervisor. Ensure that the employee summarizes major accomplishments and needs with respect to major responsibilities. Summarize major accomplishments and areas of improvement from the managers perspective.
   * diagnosed together potential causes of any discrepancies between the objectives and actual performance.
   * come to a common understanding about the quality and level employee performance over the review period.
   * identify ways in which the manager can assist in improving the quality and level of work output.
   * begin the process of identifying performance and developmental Objectives for the next review cycle
   * discuss career development if the employee so desires
   * allow for time at the end to discuss other agenda topics the employee may want to cover
   * set time and date for future meetings to finalize action plan or discuss progress
3. After the interview the manager should
   * keep observing the employees job performance, providing timely feedback and helping his/her employee improve.

Question 19

EVALUATING PERFORMANCE: MANAGING THE DIALOGUE

1. The environment
2. Starting the review
3. Communication

Answer 19

1. The environment
   * prepare a quiet and private room, arranging the furniture so that there are no barriers between you and the employee.
   * Focus exclusively on the review and avoid discussing other projects or operational issues. If you need to, set up a different time after the evaluation meeting to handle other issues.
   * Allow for sufficient time to discuss all issues needing coverage.
   * eliminate distractions caused by phone, email, staff meetings, tasks etc.
   * maintain an open posture and avoid crossing your arms.
2. Starting the review
   * communicate what will be confidential and what will be shared with whom.
   * start the meeting positively with key employee strength and/or relative easy questions to answer.
   * proceed methodically through each objective
3. Communication
   * learn to monitor and handle your own and the employees emotions.
   * learn to listen actively, and do not interrupt. Employees have a much better evaluation review experience if they feel their manager is empathetic and understands them.
   * refrain from asking leading questions.
   * Tailor your language to the receiver.
   * be assertive - communicate openly and unambiguously.
   * Focus on the problem, and do not personalize the issue. Behaviors are not attitudes. You need to describe the behaviors, their impact, and your expectations.
   * maintain the employees self-esteem by making them accountable for their action and for resolving issues.
   * refrain from jumping to conclusions or pushing for an immediate solution. Allow the employee to explain or express his/her viewpoint. Acknowledge the employee and listen but do not ask for or expect a confession.

Question 20

EVALUATING PERFORMANCE: POTENTIAL EVALUATION PITFALLS

1. Errors in evaluating employees
2. Communication pitfalls
3. Accountability pitfalls

Answer 20

1. Errors in evaluating employees
   * loss of historical performance information memory: human being imperfect information processors, it is imperative to periodically record performance information so that it remains fresh and timely at evaluation time.
   * Halo effect: this evaluation error results from the managers tendency to use his/her global evaluation of an employee in making objective-specific ratings for that employee.
   * recency: people have the tendency to give more weight to events that occur closer to the evaluation period. This is why it is important to record performance information throughout the year.
   * leniency: The tendency to be too lenient when evaluating an employee. Managers may be lenient because they like an employee Or want to be liked
   * Central tendency: The tendency to give an average rating to all or most employees. This tendency often stems from lack of time, laziness, or uncertainty about the employees performance.
   * severity: A relatively rare error, severity may result from the belief that low ratings will keep employees on their feet, or from the desire to appear tough.
   * first impression: some supervisors may rely too heavily on the first impression they made of an employee, especially when contacts are few and far between. Regular and constructive feedback help fight this tendency.
   * similar to me: some managers may tend to give more favorable ratings to employees they deem similar to themselves.
2. Communication pitfalls
   it is important to recognize that performance evaluations can be stressful for both the manager and the employee. To avoid the escalation of occasional tense situations you should listen attentively, showing empathy, and maintaining a genuine interest in employee development. Be sympathetic if tears are Genuine, But be wary of tears designed to deflect you from your feedback. If the employee Has stopped listening, stop the meeting and set a date to finish the review as soon as possible.
3. Accountability pitfalls
   Often times, the better designed performance management systems fail because it is not in the best interest of the manager and/or the employee to share honest performance feedback. For the system to work the organization needs a culture where managers are held accountable for providing timely, accurate feedback to employees and then in return, held accountable to act on the feedback provided.