Transcript Document

PERFORMANCE MANAGEMENT

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THE PRACTICE OF PERFORMANCE MANAGEMENT: SESSION PLAN

The aims and scope of performance management Aim of managing organizational performance The dimensions of managing organizational performance Strategy map – organizational performance Managing team performance Managing individual performance Characteristics of individual performance management Principles of performance management The performance management cycle Performance management processes ‘SMART’ objectives Methods of assessment Overall assessment Rating Rating scale Visual assessment Example of visual (matrix) assessment Example of competency definition with behavioural indicators Recording the performance agreement and review Performance management form 360-Degree feedback

THE AIMS AND SCOPE OF PERFORMANCE MANAGEMENT

• The

aim

of performance management is simply to improve performance to enable corporate goals to be achieved • The

scope

of performance management includes the organization and teams as well as individuals

AIM OF MANAGING ORGANIZATIONAL PERFORMANCE

The aim of is to increase organizational capability – the capacity of an organization to function effectively

THE DIMENSIONS OF MANAGING ORGANIZATIONAL PERFORMANCE

• Creating visions for the future.

• Planning – determining the present organizational state and developing strategies to improve that state • Designing, developing and implementing improvement interventions • Designing, redesigning, developing, and implementing measurement and evaluation systems • Putting cultural support systems in place to reward and reinforce progress (Sink and Tuttle, 1990)

STRATEGY MAP – ORGANIZATIONAL PERFORMANCE Profitability (return on capital employed) Gross margin Organizational capability Cost management Product/market development Sales turnover Customer service Customer satisfaction/loyalty Quality Marketing Sales force effectiveness Learning and development Employee engagement Human capital contribution Resourcing and talent management Performance management High performance working Reward management

MANAGING TEAM PERFORMANCE

Managing team performance involves setting work and process objectives and conducting team reviews

MANAGING INDIVIDUAL PERFORMANCE

Individual performance is managed through performance management systems which involve: • the agreement of performance expectations • the formulation and implementation of performance improvement and personal development plans

CHARACTERISTICS OF INDIVIDUAL PERFORMANCE MANAGEMENT

Performance management is a planned process with the following elements: • agreement • measurement • feedback • positive reinforcement • dialogue

PRINCIPLES OF PERFORMANCE MANAGEMENT

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‘A management tool which helps manages to manage’ ‘Driven by corporate purpose and values’ ‘To obtain solutions that work’ ‘Only interested in things you can do something about and get a visible improvement’ 5.

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‘Focus on changing behaviour rather than paperwork.

‘It’s about how we manage people – it’s not a system’ ‘Performance management is what managers do: a natural process of management’ ‘Based on accepted principle but operates flexibly’ 9.

‘Focus on development not pay’ 10.

‘Success depends on what the organization is and needs to be in its performance culture’

THE PERFORMANCE MANAGEMENT CYCLE

Performance and development planning performance agreement:

• role definition • objectives • competencies • performance improvement • personal development

Review Performance

• dialogue and feedback • agree strengths and any areas for improvement • build on strengths – “you are particularly strong in this area use of this?” – how can you make even greater

Act

• carry out role • implement performance improvement plan • implement personal development plan

Manage performance throughout the year

• monitor performance • provide continuous feedback • provide coaching • deal with under-performers

PERFORMANCE MANAGEMENT PROCESSES

• Concluding performance and development agreements • Performance planning • Personal development planning • Managing performance throughout the year • Conducting performance reviews • Assessing performance • Recording outcomes on a performance management form

‘SMART’ OBJECTIVES

The criteria for good objectives are that they should be: S =

Specific/stretching –

clear, unambiguous, straightforward, understandable and challenging M =

Measurable –

quantity, quality, time, money A =

Achievable

– challenging but within the reach of a competent and committed person R =

Relevant –

relevant to the objectives of the organization so that the goal of the individual is aligned to corporate goals T =

Time-framed –

to be completed within an agreed time scale

METHODS OF ASSESSMENT

• Overall assessment • Rating • Visual

OVERALL ASSESSMENT

Overall assessment is based on a general analysis of performance under the headings of the performance agreement

RATING

Rating summarizes on a scale the views of the rater on the level of performance achieved

EXAMPLE OF VERBAL RATING SCALE

• Exceptional performance • Well-balanced performance • Barely effective performance • Unacceptable performance

VISUAL ASSESSMENT

Visual assessment involves an agreement between the manager and the individual on where the latter should be placed on a matrix

EXAMPLE OF VISUAL (MATRIX) ASSESSMENT

High

Employees placed here have an effective behavioural style but are not delivering well Employees placed here are top performers

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Possible actions:

medium reward provide feedback coach/train to improve delivery set milestones

• • • •

Possible actions:

full recognition and high reward challenge/stretch fast track career (talent programme) coaching Behavioural style Employees placed here have both behavioural and performance problems Employees placed here have good business results but need to focus on style

Low • • • • •

provide feedback coach

Possible actions:

set milestones monitor decision whether to continue or end employment

Low • • • •

Possible actions:

medium reward recognize contribution provide feedback coach to improve style Business performance

High

EXAMPLE OF COMPETENCY DEFINITION WITH BEHAVIOURAL INDICATORS

Competency heading Leadership Competency definition Competency requirements Positive indicators • • • • • • • • • • The capacity to inspire individuals to give of their best to achieve a clearly defined result and to maintain effective relationships with the team Accepted by team as an effective and approachable leader Give clear direction and guidance Agree objectives and competency requirements Motivate and coach team members Take a close interest in the wellbeing of team members Leadership qualities recognized by team Establishes clear team goals and inspires team to achieve them Maintains firm support and guidance Is considerate when dealing with people Lets people know they are valued Negative indicators • • • • • Not respected by team Doesn’t explain why things have to be done Fails to allocate tasks clearly Ignores contribution of individuals Not really interested in people

RECORDING THE PERFORMANCE AGREEMENT AND REVIEW

The performance agreement and outcomes of a review can usefully be recorded on a performance management form

PERFORMANCE MANAGEMENT FORM PART 1

Name

PERFORMANCE AND DEVELOPMENT : AGREEMENT AND REVIEW

Forename Job title Reviewer’s name Department: Job title Objectives

PERFORMANCE AND DEVELOPMENT AGREEMENT

Performance measures Competencies Agreed actions Learning need

PERSONAL DEVELOPMENT PLAN

How it will be met Action by whom Completion date

PERFORMANCE MANAGEMENT FORM PART 2 PERFORMANCE AND DEVELOPMENT REVIEW

Objectives Achievements Competencies Development needs Comments by reviewer Comments by person reviewed Actions taken Actions taken

360-DEGREE FEEDBACK

360-Degree feedback, also known as multi-source feedback, is a process in which someone’s performance is assessed and feedback is given by a number of people who may include their manager, subordinates, colleagues and customers