Transcript Talent Development by Knowledge Sharing

Performance Management
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What ’s holding back performance
management
success?
The
survey
identified the top three challenges. The
overwhelming leading reason:
•Managers lack the courage
to have
difficult performance discussions, cited by
71% of the survey respondents.
•Performance management is viewed as an
HR process (rather than one in which the
whole organization is involved; cited by
45%)
•and poor goal setting (36%).
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Factors Determining Human Performance
PERFORMANCE (P)
MOTIVATION (M)
KNOWLEDGE,
SKILLS, AND
ATTITUDES (KAS)
ENVIRONMENT (E)
P = M x KSA x E
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3
Performance appraisal is not only a
tool to judge the competency of the
people, it is an intervention that can
change almost everything in the
organization.
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Purposes of PM Systems:
Overview
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Strategic
Administrative
Informational
Developmental
Organizational maintenance
Documentation
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Strategic Purpose
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Link employee behavior with
organization’s goals
Communicate most crucial business
strategic initiatives
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Administrative Purpose
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Provide information for making decisions
re:
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Salary adjustments
Promotions
Retention or termination
Recognition of individual performance
Layoffs
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Informational Purpose
Communicate to Employees:
 Expectations
 What is important
 How they are doing
 How to improve
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Developmental Purpose
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Performance feedback/coaching
Identification of individual strengths and
weaknesses
Causes of performance deficiencies
Tailor development of individual career
path
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Organizational Maintenance Purpose
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Plan effective workforce
Assess future training needs
Evaluate performance at organizational
level
Evaluate effectiveness of HR
interventions
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Documentational Purpose
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Validate selection instruments
Document administrative decisions
Help meet legal requirements
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Contributions of PM
For Employees
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The definitions of job and success are
clarified
Motivation to perform is increased
Self-esteem is increased
Self-insight and development are enhanced
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Contributions of PM
For Managers
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Supervisors’ views of performance are
communicated more clearly
Managers gain insight about subordinates
There is better and more timely differentiation
between good and poor performers
Employees become more competent
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Contributions of PM
For Organization/HR Function
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Organizational goals are made clear
Organizational change is facilitated
Administrative actions are more fair and
appropriate
There is better protection from lawsuits
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Disadvantages/Dangers of Poorly-implemented PM
Systems for Employees
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Lowered self-esteem
Employee burnout and job dissatisfaction
Damaged relationships
Use of false or misleading information
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Disadvantages/Dangers of Poorlyimplemented PM Systems for Managers
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Increased turnover
Decreased motivation to perform
Unjustified demands on managers’
resources
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Disadvantages/Dangers of Poorlyimplemented PM Systems for Organization
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Wasted time and money
Increased risk of litigation
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Performance Management
Continuous Process of
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Identifying performance of individuals and teams- what
to measure
Asking people to set goals
Measuring performance of individuals and teams – how
to measure and who should measure
Developing performance of individuals and teams
Aligning performance with the strategic goals of the
organization
Identifying obstacles in performance
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What to measure?
Traits
Behavior
Results
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Approaches to Measuring
Performance
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Trait Approach
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Behavior Approach
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Emphasizes individual traits of employees
Emphasizes how employees do the job
Results Approach
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Emphasizes what employees produce
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Trait Approach
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Emphasis on individual
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Evaluate stable traits
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Cognitive abilities
Personality
Based on relationship
between traits & performance
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Trait Approach (continued)
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Disadvantages
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Improvement not under individual’s control
Trait may not lead to
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Desired behaviors or
Desired results
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Behavior Approach
Appropriate if
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Employees take a long time to achieve
desired outcomes
Poor results are due to causes beyond
the performer’s control
Not appropriate if
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above conditions are not present
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Results Approach
Advantages:
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Data appear objective
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Management by Objectives (MBO)
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Involves setting specific measurable goals
with each employee and then periodically
reviewing the progress made.
1.
2.
3.
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5.
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Set the organization’s goals.
Set departmental goals.
Discuss departmental goals.
Define expected results (set individual goals).
Performance reviews.
Provide feedback.
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Who should measure?
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360 degree appraisal -Developing the tool
Ask participants to answer the following three basic questions:
List down what you want to know from your subordinates; what are
various areas on which feedback would be of use to you and help
you to be a better manager
List down what you want to know from your seniors
List down what you want to know from your colleagues and internal
customers
No names on sheets only write ‘feedback from subordinates’
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Another layer
What are the different areas which you feel
your superiors should know about – styles,
impacts and behavior. What are some
functions, activities, initiatives seniors are good
at and which should be continued and vice
versa
List various areas on which you would want to
give feedback to your colleagues
List various areas on which you would want to
give feedback to your subordinates
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Questions for subordinates
Do I help my subordinates understand clearly their job, roles,
and responsibilities?
Do I delegate satisfactorily?
Do my subordinates feel empowered?
Do I adequately guide subordinates in their job?
Is my communication on company policies and strategies clear?
Is there freedom to work?
Do I critically look at the inputs given by subordinates?
Am I providing feedback to subordinates?
Can I be counted upon to assist subordinates if they have a
problem?
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Myths and Facts about 360
Degree Feedback
The Power of 360 degree Feedback
Rao and Rao
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Myth 1- Success of 360 depends on
finding out the exact source of the
feedback
Myth 2- These are my childhood
problems
Myth 3- 360 degree feedback is
conclusive
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Myth 4- I am a high performer. Why
for me?
Myth 5- I already know what people
have to say
Myth 6- I don’t need counseling after
360 degree feedback
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Myth 7- We are a very open
organization. What else it can give?
Myth 8-Implementation brings
immediate revolutionary changes in
organization
Myth 9- It need not be linked with any
other system
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Myth 10- Meant for senior and top
management team
Myth 11- It enhances shareholder
value or brings down
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How to measure?
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Evaluation Methods:
Individual
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Graphic rating scale
Oldest and perhaps most common
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Forced choice
Essay evaluation
Critical incident technique
Checklists and weighted checklists
Behaviorally anchored rating scales (BARS)
Behavioral observation scales (BOS)
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Performance Appraisal Methods
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Graphic rating scale
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A scale that lists a number of traits and a range of
performance for each that is used to identify the
score that best describes an employee’s level of
performance for each trait.
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Performance Appraisal Methods
(cont’d)
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Alternation ranking method
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Ranking employees from best to worst on a
particular trait, choosing highest, then lowest,
until all are ranked.
Paired comparison method
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Ranking employees by making a chart of all
possible pairs of the employees for each trait and
indicating which is the better employee of the
pair.
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Alternation Ranking Scale
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Ranking Employees by the
Paired Comparison Method
Note: + means “better than.” − means “worse than.” For each chart, add up
the number of 1’s in each column to get the highest-ranked employee.
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Performance Appraisal Methods
(cont’d)
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Forced distribution method
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Similar to grading on a curve; predetermined
percentages of ratees are placed in various
performance categories.
Example:
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15% high performers
20% high-average performers
30% average performers
20% low-average performers
15% low performers
Narrative Forms
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Performance Appraisal Methods
(cont’d)
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Behaviorally anchored rating scale (BARS)
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An appraisal method that uses quantified scale
with specific narrative examples of good and poor
performance.
Developing a BARS:
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Generate critical incidents
Develop performance dimensions
Reallocate incidents
Scale the incidents
Develop a final instrument
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Example of a
Behaviorally
Anchored
Rating Scale
for the
Dimension
Salesmanship
Skill
Source:Walter C. Borman, “Behavior
Based Rating,” in Ronald A. Berk (ed.),
Performance Assessment: Methods and
Applications (Baltimore, MD: Johns
Hopkins University Press, 1986), p. 103.
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Organizations use various methods for performance
management, with 54% reporting the use of a five-point
scale, 73% using an electronic system, 28% using a
specified range of distributions, and 10% using forced
rankings.
Written objectives are used by 73% of the respondents to
assess performance, and 73% also use job
accountabilities, which identify the specific outputs that
are expected. Another 58% use behavioral competencies,
and 47% use quantifiable metrics. Just under one-third
(31%) use some form of cross-manager calibration to
ensure managers are rating and distributing related
rewards consistently.
HR Focus/October 2007
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Performance Analysis
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What is Performance Analysis

Understanding the constituents of
performance by breaking it into various
elements and understanding the factors that
cause performance is called performance
analysis.
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Objectives of PA
Identify the factors that help achieve performance
Identify factors that hinder performance
Identify factors that the appraisee can do
something about
Identify development needs
Gaining a better understanding about the
appraises – his environment
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Methodology
1. Appraisee should periodically keep reflecting and
recording about how well he is progressing
2. Whenever he comes across success experience he
should record facilitating factors
3. Similarly, whenever he comes across failure, he should
record inhibiting factors
4. At the end of the performance period, he considers his
performance and based on these factors rates himself
5. After rating he should list in detail those factors
6. After listing factors should be categorised as explained
in the next slide (methodology continued)
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Facilitating Factors
Personal or individual facilitating factors
Facilitating factors attributable to the reporting officer
Facilitating factors attributable to organization and its
systems
Facilitating factors attributable to subordinates
Facilitating factors attributable to external environment
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Inhibiting Factor
Same as in the previous slide
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Methodology
7. Facilitating factors he would like to maintain or
strengthen and inhibiting factors that he would like
to overcome
8. List support that could be extended by his
reporting officer to maintain the external facilitating
factors and to reduce the inhibiting factors
9. Submit the appraisal to the reporting officer
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Characteristics of an Ideal PM System
Thorough
Practical
Meaningful
Specific
Reliable
Valid
Acceptable and Fair
Inclusive
Open
Correctable
Standardizedwww.schoolofeducators.com
Potential Errors in Performance Appraisals
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Leniency - when a manager’s ratings are grouped
at the positive end of the scale
Central Tendency - when a manager rates most
employees’ performance in the middle of the
performance scale
Recency - rating of work performance on an
employee’s most recent work rather than the
entirety of the work
Halo Effect - the rater allows a single prominent
characteristic of an employee to influence each
item on the performance appraisal of the employee
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From where do you get information about
appraisal?
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Job analysis
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Main task
Criticality
Support task
Casual task
Routine task
Low
High
frequency
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Appraisal Myths
Assumptions
 One appraisal process can
effectively serve several
functions at the same time
 A one size fits all can work
well for everyone
 You can get commitment
from a forced process
 It is possible to objectively
and reliably evaluate
 It is required by law
Alternative assumptions
 Multiple purposes of appraisal
can be achieved through
separate processes
 Jobs widely differ in nature and
change over time
 Commitment can best be
nurtured through a supportive
work environment
 Evaluation processes are largely
subjective
 Employers can defend against
employee lawsuits by
documenting serious deficiencies
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Appraisal Myths
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Ratings are motivating and
let people know where they
stand
Feedback, development,
and performance
improvements are annual or
quarterly events
People withheld efforts if
they are not extrinsically
rewarded
Inspecting individual leads
to improved performance
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Because of subjectivity in
evaluation, it may
demotivate
The best time for feedback
etc is variable and depends
on the situation, individual’s
needs etc
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Healthy people are
intrinsically motivated
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Improving systems and
processes improves the
performance
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The Feedback Process
Stage 1: Describe current behavior
Stage 2: Identify situations
Stage 3: Describe impacts and
consequences
Stage 4: Identify alternative
behavior
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The Feedback Process
Describe current behavior
Disruptive behavior to avoid
•Attacker
•Judge
•Rambler
•Hit-and-run
•Dumper
•Laggard
•Inconsiderate
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The Attacker
Attackers challenge personal traits instead
of specific behavior.
A: Your office is a mess. You are awful
R: ( Defense) You know how much work I
have to handle here
Cite specific Behavior
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The Judge
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Everything in his world fits into right or wrong.
J: You are such a bad guy
R: You have drawn a wrong conclusion
Be descriptive
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The rambler
He
delivers long -winded lectures. “Do you
know why it did not work? I will tell you why.
Let me tell you what I did when I was in your
position….” Blah, Blah, Blah.
R: Forgets where they were going.
Be Brief
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The Hit-And-Run
He makes a quick and vague point and
disappears, not available for questions and
answers.
H: You must improve your performance. OK.
Good day.
R: Misconstrues the feedback.
Be available to share and discuss your
observations.
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The Dumper
The
dumper unloads on people. He does not
put criticism into context-he just lists. He stores
them in gunny sacks and then dumps them all
on your head.
There are two points I want to make and yes
there are two more points I want to make.
R: Feels chewed up
Provide feedback gradually
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The Laggard
He dilly-dallies. Gives you feedback
when he remembers.
“Now that you have mentioned it, let
me tell you…….”
R: Starts applying motives.
Be prompt
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The Inconsiderate
He gives no thought to time and place.
You are about to begin your presentation,
when he comes in and says, “You
must…..”
R: Finds you insensitive and inhumane.
Be sensitive to time and place
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Stage 2- Identify situation
*Provide two to three clear and specific
situations when the current behavior
was
actually
observed.
*Base your feedback on direct
observation
and
solid
facts
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Describe Impacts
and Consequences
The parent
The punisher
The psychologist
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The Parent
The parent often relies on personal likes and
dislikes when choosing behaviors to criticize or
praise. He wants others to be like him. He
belittles.
“Why are you fighting me on this? I am just
trying to tell you what is good for you.”
R: Why should I follow you?
Accept differences if there are no negative
consequences or explain the consequences
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The Punisher
The punisher focuses only on downside, extreme
negative consequences.
“This will get you fired. It is your choice. Don’t come to
me if something goes wrong.”
R: May give up but is not convinced
Keep a positive focus. Your objective is to improve, not
punish
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The Psychologist
He is obsessed with “why” to seek deep
underlying motives and intentions.
“I know why you acted that way. It is
because…..”
R: Gives explanation
Rather than saying I know, say may I ask you
why did you….Seek information rather than
assigning motives
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Identify alternative behaviour
The Imposer
The quick fixer
The abandoner
The pessimist
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The Imposer
The imposer mandates his opinions as if they
were law. He pushes solution down to your
throat to kill a discussion.
“If you’d set your alarm to go off ten minutes
earlier, you won’t be ten minutes late”
R: Takes it as an attack and proves you
wrong by being late next time, passes
responsibility on to you.
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The Quick Fixer
He does not take much time in identifying
problem and offering solution
“Your problem is that you do not participate in
discussion and see it is so simple- open you
mouth and start it.”
R: Had it been so simple!
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The Abandoner
He knows of only one solution
“This is the only way you can get
promotion here.”
R: Is kept in doubt.
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The Pessimist
Sees no hope for change or improvement.
“There is nothing you or I can do, except live with
it.”
OR
“You need to do it but I know you shall not be able
to do it.”
R: Then why should he tell me this?
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Giving Feedback
•Indirect vs. Direct Expression of Feelings
•Interpretation vs. Description of Behavior
•Evaluative vs. Non-evaluative Feedback
•General vs. Specific Feedback
•Pressure to change vs. Freedom of choice to change
•Delayed vs. Immediate
•Imposed vs. Solicited
•Unmodifiable vs. Modifiable Behaviour
•Motivation to hurt vs. Motivation to help
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Indirect vs Direct
You are a likeable person
You are driving too fast
(I am anxious because you are driving too fast)
Indirect statements often begin with I feel that
and finish with a perception of opinion
(I feel that you are angry)
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Interpretation vs Description
William is fidgeting in his chair and
shuffling his feet
You are anxious (may be he wants to
go to the toilet)
Marie could say, “You are hostile”, or
“You do not like me”
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Evaluative vs Non evaluative
You are stupid or insensitive.
If someone acts stupidly, it does not mean that he
is stupid. The person making the evaluation
assumes that he can distinguish between ‘right’
and ‘wrong’ and that if the receiver does not
exemplify these values, the sender will be
unhappy with him.
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General vs Specific
You are stupid.
You are a warm person.
It does not allow the receiver to know that
specific behavior that is perceived as warm
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Receiving Feedback
•Denial vs. Owning
•Quick Acceptance vs. Data collection
•Rationalisation vs. Self-analysis
•Withdrawal vs. Expressing Feelings
•Aggression vs. Help-seeking
•Humour vs. Concern
•Generalisation vs. Experimentation
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