Southwood School – A Case Study

Performance Management Systems By Fiona Robson

Areas covered in this presentation • What is performance management (PM)?

• The differences between PM and performance appraisal.

• The benefits of PM: > To the organization.

> To managers.

> To employees.

• An introduction to the case study organization.

• Best practices in PM.

• Practical issues surrounding PM 2 © 2008 SHRM

Differences between performance management and performance appraisal Armstrong (2006) defines performance management as:

“the formal assessment and rating of individuals by their managers”

The same author defines performance appraisal as:

“a continuous and much wider, more comprehensive process… which clarifies mutual expectations and emphasizes the support role of managers ”

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Overview of differences

Performance Appraisal

Top down-assessment Annual appraisal meeting Use of ratings Monolithic system Focus on quantified objectives Often linked to pay Owned by the HR department Source: Armstrong and Baron (2005) © 2008 SHRM

Performance Management

Joint process through dialogue Continuous review with one or more formal reviews Ratings less common Flexible process Focus on values and behaviors as well as objectives Less likely to be directly linked to pay Owned by line managers 4

Benefits to the organization • Demonstrates the organization’s commitment to the development of its staff.

• Contributes to meeting accreditations standards, such as Investors in People in the UK.

• Provides the opportunity to ensure all employees are aware of the goals and objectives of the organization and the role that they have to play in this process.

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Benefits to managers • Facilitates a two-way dialogue with their staff.

• Identifies any potential issues.

• Enables managers to gain a greater understanding of the motivation and future plans of their staff.

• Provides an opportunity to disseminate goals and objectives to employees.

• May lead to a more motivated and communicative workforce.

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Benefits to employees • Clarifies their expectations.

• Enhances their understanding of the contribution they make to the organization.

• Provides an opportunity to have a discussion with their manager and talk about any issues: a two-way process.

• Provides recognition of strengths and achievements.

• Helps identify development opportunities.

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Southwood School: Contextual information • High School in the UK (state school) • Established nearly 40 years ago • 800 students aged 13-18 • 120 staff > 80 teachers > 40 support staff (nonteaching staff) • Average staff retention rate: 72% • Average length of service: 5+ years © 2008 SHRM 8

Southwood School: History of performance management • The teachers are required by law to follow the government-mandated performance management process.

• In the past, the support staff have used the same process.

• Support staff are unhappy at taking part in a process, which is largely inappropriate.

• Performance management is perceived quite negatively by the majority of support staff.

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Best practices for PM • Both parties should be prepared for meetings and dedicate their time.

• Appraisers must show their commitment to the process to engage appraisees.

• It should be a two-way process where issues are discussed.

• Effective training must be provided to meet the needs of appraisers and appraisees.

• There should be no surprises at the review meetings; any prior incidents should have been dealt with after the event.

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Practical issues: An overview • Who should carry out performance management interviews?

• How often should they be carried out?

• When should they be reviewed?

• What is the focus and purpose?

• How structured should they be?

• How can they be monitored?

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Terminology used in this case study

Appraiser

—the manager who is taking part in the performance management process by reviewing past performance and looking to the future with the appraisee (employee).

Appraisee

—the employee who is the ‘subject’ of the performance management process. He or she will take part in the discussions with the appraiser (usually the line manager).

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Now you are ready to read the Southwood School Case Study • When you have read the case study, there are a number of activities to help develop your understanding of performance management.

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References Armstrong, M., & Baron, A. (2005).

Managing Performance: Performance Management in Action.

London: CIPD Armstrong, M. (2006).

A Handbook of Human Resource Management Practice.

10 th edition. London: Kogan Page.

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