SOLUTION: Performance Management | My Assignment Tutor

1Session 6: Performance ManagementLO4Developing Individuals, Teams andOrganisations2Objectives of the SessionBy the end of the session, students should be able to understand:• What effective performance management is• Performance management and its impact on learning anddevelopment• The different performance management systems23Performance managementWhat employees expect• Be treated fairly and consistently• Job/career enrichment opportunities• Clear expectations• Positive/constructive feedback on a regular basis• Involvement in goal setting• Economic reward• Their opinions to be counted• To have positive relationships in work• To have the opportunities which aid them in learning and developing• To be recognised and praised for doing the best work• Someone to encourage their advancement4Performance managementWhy perform?• To reach organisational mission and goals• To encourage and reward behaviours aligned with organizationalmission and goals• To curb or redirect non- productive activities35Performance managementWhy perform?• To reach organisational mission and goals• To encourage and reward behaviours aligned with organizationalmission and goals• To curb or redirect non- productive activities6What is performance management?• ‘The policies, procedures and practices that focus on employeeperformance as a means of fulfilling organisational goals andobjectives’(Lowry (2002) in Marchington and Wilkinson (2005: 187-8))• ‘Establishing a framework in which performance by individuals canbe directed, monitored, evaluated and rewarded, and whereby thelinks in the cycle can be audited’(Mabey and Salaman (1995) in Torrington et al (2005: 261))• The action or process of carrying out or accomplishing an action,task, or function can be termed as performance• Performance management includes the processes used to managecorporate performance, the methodologies that drive some of theprocesses and the metrics used to measure performance againststrategic and operational performance goals47What is performance management?• Performance management is the process of creating a workenvironment or setting in which people are enabled to perform to thebest of their abilities. It is the main vehicle by which managerscommunicate what is required from employees and give feedbackon how well they are achieving job goals (CIPD, 2009)• Performance management establishes shared understanding ofwhat is to be achieved and provides an approach to leading anddeveloping people that will ensure it is achieved; as such it is anessential element of your role and will support your relationship withindividuals in your teamWhy manage performance?• By managing the performance of the individual and team,departmental and organisational performance will follow and byraising individual and team levels of performance, organisationalperformance will also improveManchester Metropolitan University (n.d)8What is performance management?• “It is a continuous process of identifying, measuring and developingthe performance of individuals and teams and aligning performancewith the strategic goals of the organization”• It contains two major components:– 1. It is a continuous process– 2. It aligns with strategic goals• It includes activities that ensure that goals are consistently beingmet in an effective and efficient manner• It focuses on the performance of an organisation, a department,employee, or even the processes to build a product or service or anyother areas in an organisationNB: Performance Management is NOT performance appraisal59Performance ManagementPurpose of Performance Management• It has a key role in linking the goals of the organisation to theindividual (vertical integration) Key role in linking the goals of theorganisation to the individual (vertical integration)• It serves the strategic purpose of the organisation:– Provides information for reward system– Facilitates HR decisions– Enables employees to learn about their performance as against orgexpectations– Serves as a developmental purpose– Serves organisation maintenance purpose Plan effective workforce Assess future training needs Evaluate performance at organizational level Evaluate effectiveness of HR interventions– Supports HR decision to meet legal requirements• It has ritualistic aspects10Performance ManagementContribution of Performance Management• Motivation to perform is increased• Increases self esteem• Managers gain insight about subordinates• Jobs are simplified• Organisational goals are clear• Employees become more competent• Differentiation between good and poor performance• Performances objectives are communicated• Change can be possible611Performance ManagementCharacteristics of Performance Management System• Strategic congruence• Thoroughness• Practicality• Meaningfulness• Specificity• Reliability• Validity• Acceptability• Inclusiveness• Openness• Correctability• Standardisation• Ethicality• Identification of effective and ineffective performance 3. Performance assessmentidentifying areas where theemployee needs support andtraining The process of managing performanceshould follow a framework that isspecific enough to act as an effectivemanagement tool, but flexible enoughto take in to account individual needsand different approaches. People need continual feedback andsupport, so the process should beconstant and not an annual event.2. Performance executionInvolving regular reviewmeetings and feedback1. Planning performanceLinked to the Job Descriptionand the objectives for the roleThe Performance Management Process 7Performance ManagementPerformance planningThe planning of the performance has the involvement of thebelow steps:• Ensure of the mutual understanding of the responsibilities ofthe job• Ensure of the mutual understanding of the standards• Ensure of the mutual understanding of the expectations• Setting the goals of performancePerformance ManagementPerformance planningThe activities required for performance planning are as follows:• Plan• Strategy• Repeat• Follow-up• Improve• Measure• Measure• Align• Monitor8Performance ManagementPerformance ExecutionDay-to-day coaching and feedbackThe day-to-day coaching has the following steps in them:• Discuss the performance very often• Furnish appreciative feedback and identify the success• Address the interest and solve the problems• Shared responsibility– Employee responsibility:• Commitment to established goals.• Communication and update with manager.– Manager responsibility:• Feedback, coaching and reinforcement.• Resource support.• Accurate observation and documentation.Performance ManagementPerformance Assessment and Review• Who should appraise?– Supervisors– Peers and team members– Subordinates– 360 degree feedbackThe review of formal performance has the below steps:• Sharing the feedback about the performance of the employee• Have to invite and listen to the employee about his/herperformance• Asking the employees to share their feedback for you• Re-entering the phase of performance planning9HR’s Role in Performance Management• Participate in strategic planning.• Conduct job analysis.• Support performance management.• Design appraisal system.• Train and support managers.• Maintain documents.• Provide employee due process.• Ensure integrity of the system.• Ensure compliance with nondiscrimination laws.1718Performance ManagementDisadvantages of a poorly implemented system• Increased turnover• Use of misleading information• Wasted time and money• Lowered self esteem• Damaged relationships• Decreased motivation to perform• Employee job burnout and dissatisfaction• Increased risk of litigation• Unjustified demands on managers and employees resources• Varying and unfair standards and ratings• Emerging biases• Unclear rating systems10Performance ManagementPerformance management and its impact on learning anddevelopmentImportance of learning and development1. Employees today need to know where they’re going,AND how to get there• Providing clarity removes confusion, and when an employeeunderstands how they’re progressing and where they arefalling short, they can be more effective, and so can theorganisation• By having an integrated performance and learning processthat identifies the employee’s objectives and assigns relevantlearning, whether formal or informal, employees are providedwith a clear pathway to successPerformance ManagementPerformance management and its impact on learning anddevelopmentImportance of learning and development2. Embedding a high-performance culture requires everyday learning and ongoing feedback• The difference between performance and learning is thatperformance is a goal that is achievable through learning• One of the most effective ways employees learn is throughthe delivery of ongoing, regular feedback11Performance ManagementPerformance management and its impact on learning anddevelopmentImportance of learning and development3. The outcome of measuring learning needs to beperformance, not learning itself• The impact on the business is the biggest ROI learning canhave.• Successful organisations– Support proactive learners — employees who takeresponsibility for their own development and seek out learning– Provide easy-to-use tools that present employees withopportunities to connect to formal and informal knowledgesources throughout the organisation– Present each and every employee with opportunities fordevelopment based on personal strengths, weaknesses, jobroles, or interest from sources that go beyond their immediateleaders•Performance ManagementPerformance management and its impact on learning anddevelopmentLearning and Development• The Learning and development section of HR describes thevarious options that are available to people designing learningsolutions• It then looks at learning styles and other factors which need to betaken into account when designing and implementing a learningintervention• Learning is there to help the organization achieve its objectives• Motivation and learning styles are the most important issues thatneed to be taken into account in the design of effective learning• Learning needs must be accurately identified• The learning outcomes should be clearly identified before anylearning design takes place.12Performance ManagementPerformance management and its impact on learning anddevelopmentTypes of learning strategiesThere are three main types of learning strategies• One-to-many• One-to-one• Remote• Blended learning is a blend of different learning strategiesPerformance ManagementPerformance management and its impact on learning and developmentThe role of the Learning and Development team• To analyse learning needs with teams and from the CorporateBusiness Plan– Team works with a list of providers to design and deliver a programme oflearning activities, where these learning needs are best met internally• To access learning and development throughout the year• To record learning and development• To evaluate learning and development– To ensure the investment in learning, training and development supportsthe House and/or the team in achieving their business objectives– To demonstrate to what extent the development has helped the learner intheir present role and/or prepared them for a future one– To ratify that the learning activity has met the learner’s immediate needsand expectations and there were no barriers to learning– To assist those who have organised the event in making any necessarychanges or improvements.13Performance ManagementExamples Performance Management Systems• Ranking• Forced Distribution• 360-Degree Feedback• Competency-BasedRanking Method• It is the simplest method of job evaluation• In this method, jobs are arranged from highest to lowest, in order oftheir value or merit to the organisation• Jobs can also be arranged in terms of duties, responsibilities anddemands on the job holder• Jobs are usually ranked in each department and then the departmentrankings are combined to develop an organisational rankingExample Post– PrincipalSalary Scale – Vice Principal– HoD– Senior Tutor– Tutor14Ranking MethodRanking Method procedure:• 1. Analyse and describe jobs, bringing out those aspects which are to be usedfor purpose of job comparison.• 2. Identify bench-mark jobs (10 to 20 jobs, which include all major departmentsand functions).• 3. Rank all jobs in the organisation around the bench-mark jobs until all jobs areplaced in their rank order of importance• 4. Finally, divide all the ranked jobs into appropriate groups or classifications byconsidering the common features of jobs such as similar duties, skills or trainingrequirements. All the jobs within a particular group or classification receive thesame wage or range of rates• Ranking method is– Appropriate for small-size organisations where jobs are simple and few– Suitable for evaluating managerial jobs wherein job contents cannot bemeasured in quantitative terms– Can be used in the initial stages of job evaluation in an organisationRanking MethodAdvantages• It is the simplest method• It is quite economical to put itinto effect• It is less time consuming andinvolves little paper workDisadvantages• There are no definitestandards of judgment andalso there is no way ofmeasuring the differencesbetween jobs• Sheer unmanageability whenthere are a large number ofjobs2815Performance ManagementForced Distribution (Forced Ranking)• Process by which employees are graded against each other insteadof judged against performance standards – the system requires themanagers to evaluate each individual, and rank them typically intoone of three categories (excellent, good, poor)• Many executives, consultants, academics and HR professionals areagainst the practice, which has resulted in costly litigation, badpublicity and plunging morale at some firms where forced ranking hasnot worked well or has achieved a purpose at a steep price• The practice was championed by former General Electric CEO JackWelch, who insisted that GE identify and remove the bottom 10percent of the workforce every year• Proponents say it– Is the best way to identify the high-potential employees whoshould be given training, promotions and financial incentives– Is a vital tool to identify the bottom performers who should behelped up or outPerformance Management360 Degree Feedback• Is a method and a tool that provides each employee the opportunity to receiveperformance feedback from his or her supervisor and four to eight peers,reporting staff members, co-workers, and customers• The most effective 360 degree feedback processes provide feedback that isbased on behaviours that other employees can see• Feedback provides insight into the skills and behaviours desired in theorganisation to accomplish the mission, vision and goals and live the values– The feedback is firmly planted in behaviours needed to exceed customerexpectations• Purpose of the 360 degree feedback is to assist each individual to understandhis strengths and weaknesses and to contribute insights into aspects of hiswork needing professional development• NB: 360 degree feedback is a positive addition to a performancemanagement system when implemented with care and training to enablepeople to better serve customers and develop their own careers16360 Degrees FeedbackAdvantages• Improved feedback from oresources• Team development• Personal and organisationalPerformance development• Reduced discrimination risk• Improved customer service• Training needs assessmentDisadvantages• Exceptional expectations fromthis feedback system• Design process downfalls• Failure to connect the processwith strategic aims• Insufficient information• Focus on negatives andweaknesses – people do notchange much• Rater inexperience andineffectiveness31Competency-Based SystemPerformanceManagementTraining &DevelopmentSuccessionPlanningCareer &WorkforcePlanningCore CompetenciesRecruitment,Selection &ClassificationFocus onPerformance&DevelopmentNeeds ofAgencyGoal: To develop aperformance managementsystem that:• Provide a system’sapproach to employeedevelopment andsuccession planning.• Supports employees inachieving their positiongoals and developmentalneeds.• Align and cascadeindividual goals withorganizationalperformance measures.17What are Competencies?• Competencies are those behaviors that excellentperformer’s exhibit much more consistently than averageperformers• … a grouping of behaviors, that taken together, betterdescribe and communicate performance expectationsPhases of Competency-Based System1. Defining the future2. Analysing current workforce3. Close the Gap4. Monitor, evaluate and revise18Defining the Future• Identify where the agency wants to be in the future• examine,• analyse,• and redefine the vision, mission, organizational values,objectives, and competencies• Strategic planning – Becoming a strategic partnerAnalysing Current Workforce• Develop a detailed picture of where the agency isnow• Conduct an outward and inward analysis to identifypotential competencies in the workforce such asqualified employees at the beginning of a career pathor critical positions that may need special attentionduring recruitment• Future competency-based performance system19Close the Gap• Determine what gaps exist between our current and projectedworkforce needs• Develop and implement strategy to close the gap• These strategies include knowledge transfer, recruiting,training/ retaining, restructuring organisations, leadershipdevelopment, succession planning, technology,enhancements, etc.• Knowledge Transfer Concepts• The process of sharing knowledge between one person andanother• If knowledge has not been absorbed, it has not beentransferredMonitor, Evaluate and Revise• Measure progress to access what’s working and notworking• Make adjustments to plan as needed and addressnew workforce and organisational issues20Performance ManagementCompetency-BasedKey components to optimising a competency-based performancemanagement plan1. Determine goals3. CommunicationWhyWhat and WhenHow3. Define jobs types4. Identify skill gaps5. Coaching and development6. Monitor, document and give assessments7. Revise and recognise40ReferencesPerformance Managementpeople.bath.ac.uk/…/performance%20management/hrm206performancemanagement….Manchester Metropolitan University (n.d). Performance Managementhttps://www2.mmu.ac.uk/media/mmuacuk/content/documents/humanresources/a-z/guidance-procedures-andhandbooks/Performance_Management_Guide.pdfPerformance managementhttps://www.slideshare.net/TufailAhmed/performance-management-23875050Performance Management – Facultyfaculty.unlv.edu/amiller/MGT%20494/Chapter%201.ppt2141ReferencesChapter 16: Performance Management and Learning and Developmenthttps://www.parliament.uk/documents/commons-resources/Staffhandbook/chapter-16-performance-management.pdfAn Overview of Performance Management Systems and Review Processhttps://www.slideshare.net/joeyvprice/an-overview-of-performancemanagement-systems-and-review-processRanking http://www.yourarticlelibrary.com/hrm/jobs/top-4-methods-ofjob-evaluation-explained-with-diagram/35338Bates, (2003) Forced Rankinghttps://www.shrm.org/hr-today/news/hrmagazine/pages/0603bates.aspxCompetency-Based Performance Management – Wyoming Workforcewyomingworkforceplanning.state.wy.us/documents/WYPERK07.ppt