3.6 a task 2 - perf mgt
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Establishing and operationalising
performance management system
measuring performance-results andbehavior;
conducting performance reviewdiscussions;
harnessing performance managementsystem for performanceimprovement.
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Measuring performance
Measuring Results Expected fromyou
Measuring Behaviors Expected to be
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Measuring Results: Overview
Accountabilities
Objectives
Performance Standards
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Key questions
Where should each individual focusefforts? (Accountabilities)
What are the expected objectives?(Objectives)
How do we know how well theresults were achieved?(Performance Standards)
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Accountabilities
Broad areas of a job forwhich employee isresponsible for producingresults
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Determining Accountabilities
Collect information about job (JobDescription)
Determine importance of task or cluster of
tasks What percentage of employees time is
spent performing task / eachaccountability?
Would there be a significant impact onwork units mission, if performedinadequately?
Is there a significant consequence oferror?
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Determining Objectives
Purpose: to identify Outcomes
Limited number
Highly important
When achieved
dramatic impact on overall organization success
After objectives are set
Employees should receive feedback on theirprogress toward attaining objective
Rewards allocated
Employees who have reached their objective
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10 Characteristics of Good
Objectives
1. Specific and Clear (For eg Cut travel cost by 20 %)
2. Challenging (Stretch and but not impossible to achieve)
3.
Agreed Upon (Agreement between manager andemployee)
4. Significant (Critical Impact on success of organization,Employees performance and goals of organization, Value toorganization )
5. Prioritized (Unequal, hence tackle one by one)
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10 Characteristics of Good Objectives(continued)
6. Bound by Time (deadlines)
7. Achievable (doable by employees with their skills andtraining. If NOT then resources should be provided)
8. Fully Communicated (Make a awareness for the othermembers of the organization, who are link with theobjectives)
9. Flexible (needs changes with respect to work or business
environments)
10. Limited in Number (Few, between 5 and 10 objectivesper review period is manageable number, but can be changebased on position and organization in question)
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Performance Standards
Yardstick used to evaluatehow well employees haveachieved objectives
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Determining Performance
Standards
Standards refer to aspects ofperformance objectives, such as:
Quality How well the objective is achieved ? (Usefulness, Responsiveness,
Problem-solver, Acceptance rate, Error rate, and feedback fromusers and customers eg Customer complains and returns)
Quantity How much has been produced, how many, how often, at what cost
Time
Due dates, schedule, cycle times, deadlines (how quickly), time-tables, progress reports
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Standards must include:
Action
The desired result
A due date
Some type of indicator
Quality and/or
Quantity
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Good Performance Standards:
6 Characteristics
1. Related to Position (based on job key elements)
2. Concrete, Specific, Measurable (Observable andverifiable in order to avoid dispute)
3. Practical to Measure (Efficiency Time, Cost and Accuracy)4. Meaningful (Important but relevant to job purpose to achieve
organizations mission and objectives)
5. Realistic and Achievable (Accomplish but stretchable.Employees should reached the standards within specific time
frame)6. Reviewed Regularly (To determine whether employee has
reached the standard and if not, corrective action should betaken)
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Measuring Behaviors: Overview
Identify competencies
Identify indicators
Choose measurement system
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Types of Competencies
Differentiating Distinguish between superior and
average performance
Threshold Needed to perform to minimum
standard
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Identify Indicators
Observable behaviors
Used to measure extent to whichcompetencies are present ornot
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Necessary Components for
Describing Competencies
Definition
Description of specific behaviors
When competency demonstrated
When competency not demonstrated
Suggestions for developing thecompetency
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Choose Measurement System
Comparative system
Compares employees with each
other Absolute system
Compares employees with pre-
specified performance standard
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Comparative Systems
Paired comparisons (n(n-1) / 2,n = number of employees evaluated)
Job Ranking Table
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Comparative Systems
Forced distribution : Assumption basedmethod, depending upon percentage classification
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Advantages of Comparative
Systems
Easy to explain
Straightforward (Easy to see which employees are indistributions)
Compare to absolute systems, this is Bettercontrol for biases and errorsmade by ratingperformance
Leniency (Giving high scores to most employees)
Severity (Giving low scores to most employees)
Central tendency (not giving any above / belowexpectations ratings)
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Disadvantages of Comparative
Systems
Rankings may not be specific enough for
Useful feedback
Protection from legal challenge(Employees are not compared based on individual behaviors or
individual competencies, but are compared based on overallassessment of performance)
No information on relative distance betweenemployees (Ranking based method)
Specific issues with forced distribution method(Method is based on assumption some employeesperforming very high, some poor & majority in between .
This assumption may not hold true for all units within the
organization )
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Absolute Systems
Essays
Behavior checklists
Critical incidents Graphic rating scales
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Behavior checklists
Employers task is to indicatecheck statements that describedemployee is being rated
Example of Behavior checklist item
The Employee arrives at work on time
1 2 3 4 5
Never Sometimes Often Fairly Often / Rarely Always
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Categories for Behavior
checklists Scales
Frequency Amount Evaluation
Seven-PointScale
Five-PointScale
Seven-PointScale
Five-PointScale
Always Always All All Terrible
Constantly Very Often Anextraordinaryamount of
An extremeamount of
Unsatisfactory
Often Fairly Often A greatamount of
Quite a bit of Decent
Fairly Often Occasionally Quite a bit of Some Good
Sometimes Never A moderateamount of
None Excellent
Once in awhile
Somewhat
Never None
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Behavior checklists
Advantage: Easy to use and understand
Disadvantage: Scale points used are often
randomly used
Difficult to get detailed and usefulfeedback
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Critical incidents
Kind of measurement that involvesgathering reports of situations in whichemployees exhibited behaviors that are
especially effective or ineffective infulfilling their jobs
For example, following incident isrecorded by a high school principalregarding performance of Tom Jones, thehead of disability services office:
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Critical incidents
A sophomore with learningdisabilities was experiencing difficultyin writing. Her parents wanted a
laptop computer for her. Tom Jonesordered a computer and it wasdeliver to students teacher. No
training was provided to the child,her teacher, or her parents. Thelaptop was never used.
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Critical incidents
Report of specific employee behavior
Allows focus on specific behavior
Very time-consuming
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Competency Adaptability /
Flexibility
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Graphic rating scales
Clear meaning for each response category
(ratings of behavior)
Consistent interpretation by outside readers(party)
Supervisor / Employer and employee shouldhave same understanding of rating
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Importance of Job Ratings for Job (Number)
Knowledge (K)
Skills (S)
Abilities (A)
Performance= KSA
Exceptional (5) : High level of JobKnowledge. Others employees requires training
Advanced (4) : High level of Job Knowledge.Consistently completes all normal tasks. Employeemay seek guidance in some areas.
Competent (3) : Average level of JobKnowledge. Help in completing difficult task
Improvement Needed (2) : Not meetingdeadlines or complete tasks require for this job.
Does not attempt to acquire new skills orknowledge to improve performance
Major Improvement Needed (1) :Performs tasks incorrectly or not at all. Employeehas no appreciation for improving performance
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Example of
Graphic rating scales
Project Manager
Knowledge of Project Management planning, updating status,working within budget and delivering project on time and within
budget
2 2 3 4 5
UnawareOrnot
interested
Needsadditionaltraining
Aware ofresponsibilities
ExcellentKnowledge
andperformance
of skills
Superiorperformance
of skill;ability to train
others
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G
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Graphic rating scales:
BARS improvement
Behaviorally Anchored RatingScales (BARS)
Use critical incidents as anchors
Involves multiple groups of employeesin development
(First Group) - Identify important jobelements
(Second Group) - Describe criticalincidents at various levels of performance
Defined clearly for the rater (Employeesand Employers)
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High Point Performance (3) : Shows technicalfoundation, Application of job, able to identify
problems.
Mid - point Performance (2) : Can resolveissues, application of fine tuning knowledge, can
identify major problem areas.
Low - Point Performance (1) : Weak knowledge,Difficulty in identifying problems
Graphic rating scales:
BARS improvement
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Measuring Performance
Several types of methods
Differ in terms of:
Practicality (time and effort)
Usefulness (quantifiable)
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Quick Review
Measuring Results
Identify accountabilities
Set objectives
Determine standards ofperformance
Measuring Behaviors
Identify competencies
Identify indicators
Choose measurement system
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Case I Appraisal meeting
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Case II
Appraisal meeting
Jason is the manager in the large accounting firm, and Susan is one of the
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Jason is the manager in the large accounting firm, and Susan is one of theemployees on his team. He chooses conference room with privacy awayfrom other offices.
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Six Steps for Conducting
Productive Performance Reviews
1. Identify what the employee has done welland poorly (about positive and negative behaviors)
2. Solicit feedback (Behaviors, Listen for reactions andexplanations)
3. Discuss the implications of changingbehaviors (Positive feedback is best, but what willhappen if any poor performance continues)
Six Steps for Conducting
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Six Steps for Conducting
Productive Performance Reviews
4. Explain how skills used in pastachievements can help overcome anyperformance problems
5. Agree on an action plan (Encourage employee toimproves his performance by asking questions such asWhat ideas do you have for and Whatsuggestions do you have for ?)
6. Set a follow-up meeting and agree onbehaviors, actions, attitudes to be
evaluated
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Seq ence for Performance
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Sequence for Performance
Improvement
Identify an organizational problem.
Articulate a relationship between the problem andhuman performance.
Determine a quantifiable performance gap betweenthe desired level of performance and the actual level ofperformance.
Conduct an analysis of the root causes to reveal thereasons for the performance gap.
Implement a series of solutions to address the rootcauses.
performance improvement targets for productivity, costreduction, stock turn etc;
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