Victorian TAFE Association13th September 2004

TAFEPerformance Management

Review

Method

Undertaking an analysis of existing systems

against best practice principles; and developing

a series of best practice approaches for TAFE

Teacher Work Plans and Performance

Appraisal/Review Procedures tailored to the

TAFE environment

Current TAFE Performance Management

• Numerous attempts to introduce Performance Management systems or part thereof

• Currently several versions operating in various TAFE Colleges

• Cannot judge the success ‘in practice’ of these but documentation shows need for improvement

• Systems

• Probably Leadership

• Range from - quite sophisticated to much less so!

Recommendations

Recommendations do not replicate any one

external or internal example, but take into

account key elements of best practice, while

meeting the clearly expressed needs of TAFE,

including where appropriate, the best features

of the existing TAFE systems.

Dattner Grant reviewed four critical pieces of research:

1. ‘Best Practices in Employee Performance

Management and Development’ (1). Undertaken

by Best Practices, LLC is a multi-industry study

on behalf of a large, world-class pharmaceutical

client. This project examined the best practices

of employee performance management from

over 70 companies in 31 industries.

(1) Commissioned by Best Practices LLC 2002

Research Review cont’d

2. Study was commissioned in 2002 by the

Society for Human Resources(2) into 480

organisations. It measured how organisations

view the effectiveness of their current

performance management systems, specific

performance management tools; and forecast

where activity would be shifting in the near

future.(2) Society for Human Resources, Performance Management Survey of 480 Organisations 2002

Research Review cont’d

3. Research conducted by the Corporate

Leadership Council in 2002 entitled ‘Building

the High Performance Workplace – A

Quantitative Analysis of the Effectiveness of

Performance Management Strategies’ which

surveyed 34 organisations across seven major

industries, covering 19,000 employees.

Research Review cont’d

4. Research conducted by the Corporate

Leadership Council in 2002 entitled ‘Closing the

Performance Gap – Driving Business Results

Through Performance Management’ which

surveyed 15,000 individuals at 33 companies.(3)

(3) The survey found seven key insights around clarity, freedom to take risk, solutions enablers, balancing praise and critique, the primacy of fairness, rewards and job opportunities

Research FindingsResearch highlighted several pitfalls in performance

systems:

• Divergent goals and purposes

• Poor appraiser skills

• A lack of understanding of what performance management really is

• A lack of understanding of the integrated nature of performance management and sometimes the complete absence of some critical parts – no overall model – separate parts and lack of connection

• Production of often good quality materials without good education processes, appropriate priority or resources, and a lack of “fit” or context

Research Findings cont’d

• Fear of the process by some, particularly in the areas of selection and appraisal

• A feeling that performance management was not a valued leadership tool, or even a leadership tool at all

• Some baggage associated with attempts to introduce performance management, such as time consumption in detailed paperwork without any priority, clear outcomes or purpose

• A feeling that physical measures were all that mattered and that behaviour and climate issues did not count

• A feeling that leaders did not drive the system and hence, had little ownership of it

Research Findings cont’d

• Cynicism about ‘fads’ and their failure to deliver the promise or follow through

• A lack of understanding about the critical role that frontline managers should play in the process

• A feeling that the documentation was overwhelming and unnecessarily complex and that at the end of the day, the exercise was fulfilling organisational requirements rather than adding value

• Where Performance Management systems succeeded, most and occasionally all of these pitfall characteristics were absent

Research Findings cont’d

• Successful performance management was a powerful tool for energising people, for propelling productivity, creating efficiencies and shaping a more committed workforce dedicated to continuous improvement

• Better practices typically involved a holistic approach – (a performance management cycle) covering a total career and all related aspects.

Research Findings cont’d

This included:

• Recruitment

• Induction

• Setting objectives

• Competency frameworks

• Coaching and development

• Monitoring work in progress

• Performance itself and its review and appraisal

• Reward and recognition

• Career and succession planning

Research Findings cont’d

In all best practice examples, these elements or

similar, were present and they could be clearly

linked to the organisation’s purpose, vision,

values, strategies and plans.

In other words, the performance of an individual

aligned directly to the performance of the

organisation however it was defined.

Research Findings cont’d

Research also revealed that successful

Performance Management Systems had some of

these characteristics: 

• The conduct of regular, ongoing reviews covering

both what is being accomplished and how it is

being done

• Well constructed appraisal forms that highlight

precise competence, behaviour and performance

and have little if any ambiguity

Appraisal Systems

Good appraisal systems typically included:

• Listing of goals for the appraisal period

• Behaviour rating factors, standards, or competencies

• A development planning section specifying behaviour improvement goals and development actions

• An administrative section

Appraisal Systems cont’d

• Clear, well written goals that include action, objective and measurement

• If competencies, behaviours and standards of performance were used – they were written in clear, behavioural terminology so that the direct report knows what ‘effective’ performance looks like and what must be done to improve performance

• Clear, unambiguous rating scales

TAFE Performance Management

Ideal TAFE outcomes might be that Performance Management:

• Is reasonably simple – given the complexities around performance

• Can be a vehicle for cultural transformation

• Is a full performance cycle

• Is fully integrated within the system and to other things happening in the organisation

• Is a real priority for leaders

• Links, but more importantly, adds value to business plan and performance

TAFE Performance Management cont’d

• Connects clearly to competencies, talent review and succession will be used

• Can track organisational capability

• Allows people to understand exactly what is expected of them

• Allows people to know reliably, how they are going

• Allows people to understand what and how they are learning along the way

• Allows people to contribute in meaningful ways to TAFE’s performance

Overall Analysis of ExistingTAFE Systems Against Best

PracticeFull Performance Cycle

In some TAFE Institutions, many of the components

of a thorough Performance Management System are

in place. However, none that we sighted shows

what the full performance cycle looks like and how

it is interconnected. In other instances, critical

parts appeared to be missing altogether.

Best practice takes a ‘whole of working life’

approach typically covering four ‘clusters’

Role Clarity Cluster

 

The Role Clarity Cluster typically has four elements:

• Targeted recruitment

• Induction

• Role description

• Goals and expectations

Development & Support Cluster

The Development & Support Cluster typically has four elements:

• Sense of self

• Skills & behaviours or competencies(1)

• Coaching – feedback & dialogue

• Development plans  

Performance & Behaviour Cluster

The Performance & Behaviour Cluster

typically has two elements:

• The appraisal of goal delivery

• Assessing the development against a

defined set of competencies and

behaviour.

Rewards & Behaviour Cluster

The Rewards & Behaviour Cluster typically

has three elements:

• Rewards, recognition & benefits

• Career development

• Succession planning

Work Plans

 

• Dominant feature

• Emphasised inputs, not outputs – compliance

Appraisal Forms

• Appraisal forms varied considerably and we

suspect there was an over expectation on the

‘form’.

• No form can compensate for poor planning

and underdeveloped performance

management skills.

Appraisal Forms cont’d

Best practice forms typically have at least four sections to provide adequate structure and guidance. They are:

1. A section for listing business goals for the appraisal period – i.e. what direct reports will ideally accomplish

2. A section devoted to behaviour rating factors, standards or competencies. This is how the direct report will go about achieving goals

Appraisal Forms cont’d

3. A development planning section specifying behaviour improvement goals and development actions. This plan is carried over from each prior review and spells out what the organisation will do for the direct report developmentally during this appraisal period

4. An administrative section requiring some sign-offs showing that the direct report received the appraisal and the manager acknowledged it

Written GoalsWe were uncertain how well written goals or objectives were. Do they use appropriate measurement methods? Do they present observable competencies, behaviours, standards of performance – whatever you like to call them – written in clear, behavioural terminology so that the employee knows what ‘effective’ performance looks like and what must be done to improve performance? Do they avoid statements in which a direct report can perform commendably on some aspects of the rating factor and poorly on others, instead of single behavioural events?

A key to written goals is appropriate training/coaching of the appraiser to develop consistency of approach across a TAFE provider.

Competencies The documentation we reviewed contained very little on

competencies, which we see as a gap in the Performance Management process.

A description of best practices is set out below:

• Is competence an absolute or a relative state?

• If relative, what are the degrees of competence?

• Who measures them and how?

• Is competence portable or entirely contextual?

• If one is competent in one situation, is there a correlation to competence in future similar situations?

• Is competence a holistic concept or a set of discreet elements?

• Does competence vary from technical, emotional and cognitive aspects?

Competencies cont’d

CompetenciesCompetencies

Technical Cognitive Emotional

Competencies cont’d

Technical – particular skills of a role that are required for job effectiveness. Areas of work at which the individual is competent. This is job related and is better called areas of competence, often referred to as a skill. 

Cognitive – attributes that are intellectual that distinguish approaches to thinking, problem solving and other more global attributes

Emotional – based on Emotional Intelligence that contribute to effective performance at work, outstanding leadership and deeply satisfying relationships.

Skills of Management To Use Performance Management

SystemsAgain, our study does not produce evidence on how effectively performance is managed in TAFE, suffice to say that best practice research showed that despite good systems, many managers lacked the skills to use performance management for developmental and motivational purposes.(1)

For example, appraisal sessions often began and ended with the manager merely telling employees how they have performed.

(1) A Hay Group study showed that the coaching style was the least

used management style

Leaders As Coaches and Teachers

While we have no obvious evidence of its absence in TAFE, there is a strong reminder in the Best Practice Research that Performance Management systems breathe or choke on the goodwill and leadership of leaders and their colleagues at all levels across organisations. Consequently, the leaders’ role in the delivery of good individual performance and development is paramount. It is central to their role as a leader.