Transcript Performance Management

Performance Management
Managing People in a Global Environment
Wayne F. Cascio
October 10, 2008
Challenges of Performance Review
 In forced ranking, all employees are ranked against each
other and grades are distributed along a bell-shaped curve
 Do you support the use of forced rankings?
 If the criteria used to determine an employee’s rank are
more qualitative than quantitative, does this undermine the
forced-ranking system?
 Suppose all the members of a given team are superstars.
Can forced ranking deal with that situation?
Facts About Performance Appraisals
 Employees are often less certain where they
stand after the appraisal interview than before it
 Employees tend to evaluate their supervisors
less favorably after the interview than before it
 Employees feel that the authoritarian, “tell-andsell” approach to appraisal is out of sync with
today’s democratic business structure
What is Performance Management?
 A willingness and a commitment to
focus on improving performance at the
level of the individual or team every
day
Key Elements of a P. M. System
 Sr. Management involvement in the
process
 Employee involvement in the process
 Common performance measures
 An emphasis on coaching and feedback
Why Do P. M. Systems Fail?
 Focusing on the wrong things
 Ignoring sr. managers, operating managers, and
employees
 Poor communication about the process and
changes in it
 Making the process difficult
 Implementing “flavor-of-the-month” programs
Hewitt Assoc. Study of 437 Firms
 Firms with successful P. M. systems
outperformed those without them on every
financial and productivity measure used in
the study:
 Profits
 Cash flow
 Stock market performance
Firms with Successful P. M. Systems
 Measure what really
matters
 Foster open
communication among
employees about what
really counts
Performance Appraisal
Systematic description of job-relevant strengths
and weaknesses of an individual or group
How Often?
 Once or twice a year is not enough
 Difficult to remember specifics over a 6- or 12month period
 Many organizations require more frequent,
informal “progress” reviews
 90-day plans
Effective Appraisal Systems Are
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Relevant
Acceptable
Sensitive
Reliable
Practical
Acceptability
 Do raters use standardized procedures?
 Do employees believe results are fair & accurate?
 Does the form accommodate special or unique
circumstances?
 Do you get feedback
Acceptability
 Does the rater suggest how you could
improve?
 Do you get resources to improve?
 Does management care about how
appraisals are done?
Legal Issues in Appraisal
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ID essential functions using job analysis
Base all ratings on essential job functions
Train supervisors
Have formal appeal mechanisms + higher-level
review
 Document appraisals + any reasons for
termination
 Provide counseling for poor performers
Strategic Dimension of Appraisal
 What kind of behavior do you want to encourage?
 Short-term: bottom-line results for current quarter
 Long-term: customer satisfaction, market share
 Remember: Managers get the kind of
performance they reward!
Alternative Methods
 Essay
 Ranking/paired
comparisons
 Forced distribution
 Behavioral checklist
 Critical incidents
 Graphic rating scales
 Behaviorally-anchored
rating scales
 Management by
objectives
Which Method Is Best?
 None is an unqualified
success when used for
merit pay or promotion
Who Should Evaluate?
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Immediate supervisor
Peers
Subordinates
Self-appraisal
Customers
Computers
To Improve 360-Degree Feedback
 Be clear about the purpose of the appraisal –
employee development
 Train raters to understand the overall process, show
them how to complete forms, and to avoid common
rating errors
 Seek a variety of types of information about
performance
 Make all raters accountable to upper-level review
To Improve 360-Degree Feedback
 Help employees interpret and react to the ratings,
and include goal setting.
 Implement 360-degree reviews regularly, so
employees can track their progress over time
 Take the time to evaluate the overall system
Managers Who Excel in This Area
Do the Following
 Listen well
 Relinquish control, encourage employee
participation + open communication
 Approach “negative” information slowly
and with caution
Managers Who Excel in This Area
Do the Following
 Focus on observable behavior & give
specific examples
 Avoid arguments; allow the employee to
save face
 Focus on problems and solutions, not on the
employee’s personality
Things to Do Before Appraisal
 Communicate frequently with subordinates about
their performance
 Get training in appraisal interviewing
 Use a problem-solving approach, not “tell and
sell”
 Encourage subordinates to prepare for review
sessions
Things to Do During Appraisal
 Encourage participation
 Judge performance, not personality and
mannerisms
 Be specific
 Be an active listener
 Set goals for future improvements
 Avoid destructive criticism
Things to Do After Appraisal
 Communicate frequently with subordinates
about their performance
 Periodically assess progress toward goals
 Tie rewards to performance
How to Give Feedback
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Develop an agenda
Take the time to listen; no interruptions
Communicate that you genuinely want to help
Be accepting and non-judgmental
Watch for verbal and non-verbal cues
How to Give Feedback
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Focus on the future
Summarize what was said
Record responses immediately
Never betray a confidence
Basic Rules of Performance
Counseling
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Be prepared
Be factual
Support the employee’s good performance
Help the employee improve performance
Plan for the future
How to Document PerformanceRelated Incidents
 Describe what led up to the incident - the problem
& the setting
 What actually happened that was so effective or
ineffective? (Names, dates, times, facts)
 Describe the consequences of the effective or
ineffective behavior
Managing Your Boss
 Recognize that your boss needs you in order to do
his or her job well
 Understand his or her goals + how you can help
the boss reach them
 Appreciate the pressures & problems the boss
faces
 Tell the boss your aspirations & goals
Managing Your Boss
 Learn how the boss likes to receive information
 Keep the boss informed about your successes &
problems
 Making working with you efficient & enjoyable
for the boss
 Make it easy for the boss to discuss problems &
conflicts
Managing Your Boss
 Assess yourself + your needs:
 Your strengths & weaknesses
 Your personal style
 Are you a dependent or an independent person?
Managing Your Boss
 Develop & maintain a relationship that:
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Fits both your needs & styles
Includes mutual expectations
Keeps your boss informed
Is based on dependability & honesty
Uses your boss’s time & resources selectively
Do Not Assume That:
 The boss knows your aspirations, problems, &
needs
 You can talk to your boss only when he/she asks
 The boss will start a discussion when there are
problems
 The boss gets paid so well that he/she doesn’t
have to be thanked