Performance Management Managing, Measuring and Rewarding Human Performance Presented by Kathleen...

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Performance ManagementManaging, Measuring and Rewarding

Human Performance

Presented byKathleen O’HalloranEducation Director

19 September 2002 NICSA Human Resources Forum 2

Performance Management: Why is it so

important?• A manager’s most sacred

responsibility • Corporate results• Employee satisfaction and

retention• Fairness• Litigation and documentation

Performance Management: Why is it so

hard?• Worries and woes:

– ______________________________– ______________________________– ______________________________– ______________________________– ______________________________– ______________________________

Performance Management:

Why is it so hard?

~ plain and simple ~

it’s just human nature to want to be liked

Measuring Performance• What is performance?

• What is a goal?

• Valuing results vs. effort

• Staff vs. line positions

What is performance?

~ activity ~

• Characteristics of performance– __________________________– __________________________– __________________________– __________________________

What is a goal?•Specific

•Measurable

•Attainable

•Realistic

•Time-based

~ activity ~

Valuing results vs. efforts

• When “giving it your best shot” doesn’t count

• Corporate America values results• Staff vs. line positions

Effort statements

• I tried my best• I’m in early and stay late every day• I work so hard• I spent all weekend on this• I trained 98 people on Retirement

Plans this month• I made 7 sales calls this week

Result statements

• I sold 3 memberships this month• The new Retirement Plan reps,

whom we trained last month, answered 100 calls last week, with a 92% accuracy rate.

• Southwest Airlines had an 87.1% on time arrival rate for June 2002.

Measuring Performance• Measure against a standard, not

against another performer

• Use hard data– statistics– tasks/projects completed– results identified– end user satisfaction ratings

Measuring Performancecont.

• Use anecdotal information if representative

• Be objective in thought and language

~ activity~

Measuring Performance via BARS

Behaviorally Anchored Rating Scales

Quality of Work:Leaps tall buildings at a single bound

Leaps tall buildings with a running startCan leap short buildings if prodded

Bumps into buildingsCannot recognize

buildings

BARS cont.

Promptness:Is faster than a speeding bullet

Is as fast as a speeding bulletWould you believe a slow bullet?

Misfires frequentlyWounds self when

handling guns

BARScont.

~ activity ~

“An Evening Out”

Consider what the behaviors are that make us happy to tip 25% in

a restaurant

Three Major Rules of Thumb

1. Don’t gloss over negative performance

– “those niggling annoyance factors”– at least record it, even if it doesn’t

lower the rating– this year’s annoyance will only

blossom into next year’s problem

2. Don’t emptily praise– “She’s the best thing to hit the

company since the Founding Fathers.

– He’s an exceptional performer.

– You’re doing a great job.

3. Be specific– You exceeded your sales quota by 17%.

– Your fund’s performance has been in the lowest quartile for its peer group for the past three quarters.

– Your java script enabled us to roll out Account Access by the deadline.

Giving feedbackEffective feedback is:

• Frequent

• Immediate

• Specific

• Understandable

Effective Feedbackcont.

• Positive vs. punitive

• Meant to separate the great performer from the OK performer from the poor performer

Factors that can distort performance appraisals

• Bias

• Rating personality rather than performance

• Overcrediting their personal background

Distorting Factorscont.

• “Halo” or “Horn” effect

• Lack of clear standards; measuring against outdated standards

• Leniency/severity

• Limited use of the rating scale

• Inadequate observation

• Inappropriate time span

• Contrast effect

• Overemphasis on uncharacteristic performance

Improvement-based feedback

• Recognize/name the problem

• Show its impact/result

• Name the remediation

• Ask if that’s reasonable; gain agreement

Practice:

When you ___________________,

the result is __________________.

Starting ______, I’d like you to________.

Do you foresee any problem with ______.

Writing a sound, balanced appraisal

• Be specific• Be balanced• Document, document, document• These are the things that go to

court when you do

The Performance Appraisalwhat not to do

• Copy last year’s; just change the date

• Make everyone’s the same• Use them to punish past wrongs• Use them to champion your friends• Use them to shake the proverbial

dust from the proverbial footwear

The Performance AppraisalSystems

• Numbers 1 - 5 – did I ever tell you the one about the

• Letters D, C, S, NI– or about the “condemnable” one?

• Continuum of performance scale

- or about the accursed cursor problem?

Performance Appraisal Systems - the secret

• There is no perfect system• People hate being “rated”• You might as well label them as

Goldfinch, Blue Jays, Robins, and Sparrows

• It’s the conversation that counts.

Writing the appraisal

• Have quarterly/weekly? performance chats

• Keep notes on performance observations

• See performance feedback as an ongoing process, not a yearly event

• NEVER let the performance appraisal be the first time someone hears of a problem

• Or, conversely, some worthy achievement

• Famous last words: don’t wait til the last moment

• Do the “hard ones” first

• Schedule time to write these

Delivering the appraisal

It is nowhere more clear than during a performance appraisal, who

holds the power in the relationship

Tips for delivery

• Schedule a time; let them suggest a time

• Allow at least one hour

• Find a private spot

Tips for delivery

• Ask the employee: “How would you like to do this?”

• Be aware of where you sit

• Don’t become alarmed/tyrannical if employee disputes the appraisal

Pay for Performance

Rewards

Performance

Pay for Performance

Rewards

Performance

Performance low; rewards low

Pay for Performance

RewardsRewards

Performance

Performance high; rewards low

Pay for Performance

Rewards

Performance

Performance low; rewards high

Pay for Performance

Rewards

Performance

Performance high; rewards high

Pay for Performance

• An Evening Out

• the Little Red Hen phenomenon

• The Good Chip Lollipop

~ activity ~

Performance Management Managing, Measuring and Rewarding Human Performance Presented by Kathleen...

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