Implementing a Performance Management System: Overview

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Implementing a Performance Management System
Overview

• Preparation
• Communication Plan
• Appeals Process
• Training Programs
• Pilot Testing
• Ongoing Monitoring and Evaluation

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Preparation

• Need to gain system buy-in through
• Communication plan regarding Performance
  Management system
• Including appeals process
• Training programs for raters
• Pilot testing system
• Ongoing monitoring and evaluation

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Communication Plan answers

• What is Performance Management (PM)?
• How does PM fit in our strategy?
• Whats in it for me?
• How does it work?
• What are our roles and responsibilities?
• How does PM relate to other initiatives?

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Cognitive Biases that affect communications
effectiveness

• Selective exposure
• Selective perception
• Selective retention

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To minimize effects of cognitive biases

• A. Consider employees
• Involve employees in system design
• Show how employee needs are met

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To minimize effects of cognitive biases
(continued)

• B. Emphasize the positive
• Use credible communicators
• Strike first create positive attitude
• Provide facts and conclusions

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To minimize effects of cognitive biases
(continued)

• C. Repeat, document, be consistent
• Put it in writing
• Use multiple channels of communication
• Say it, and then say it again

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Appeals Process

• Promote Employee buy-in to PM system
• Amicable/Non-retaliatory
• Resolution of disagreements

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Appeals Process

• Employees can question two types of issues
• Judgmental
• (validity of evaluation)
• Administrative
• (whether policies and procedures were followed)

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Appeals Process

• Level 1
• HR reviews facts, policies, procedures
• HR reports to supervisor/employee
• HR attempts to negotiate settlement
• Level 2
• Arbitrator (panel of peers and managers) and/or
• High-level manager final decision

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Rater Training Programs

• Content Areas to include
• Information
• Identifying, Observing, Recording, Evaluating
• How to Interact with Employees
• Choices of Training Programs to implement
• Rater Error Training
• Frame of Reference Training
• Behavioral Observation
• Self-leadership Training

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Content

• A. Information - how the system works
• Reasons for implementing the performance
  management system
• Information
• the appraisal form
• system mechanics

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Content (continued)

• B. Identifying, observing, recording, and
  evaluating performance
• How to identify and rank job activities
• How to observe, record, and measure performance
• How to minimize rating errors

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Content (continued)

• C. How to interact with employees when they
  receive performance information
• How to conduct an appraisal interview
• How to train, counsel, and coach

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Choices of Training Programs

• Rater Error Training (RET)
• Frame of Reference Training (FOR)
• Behavioral Observation Training (BO)
• Self-leadership Training (SL)

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Rater Error Training (RET)

• Goals of Rater Error Training (RET)
• Make raters aware of types of rating errors
• Help raters minimize errors
• Increase rating accuracy

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Intentional rating errors

• Leniency (inflation)
• Severity (deflation)
• Central tendency

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Unintentional rating errors

• Similar to Me
• Halo
• Primacy
• First Impression
• Contrast

• Stereotype
• Negativity
• Recency
• Spillover
• Attribution

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Possible Solutions for Types of Rating Errors

• Intentional
• Focus on motivation
• Demonstrate benefits of providing accurate
  ratings
• Unintentional
• Alert raters to different errors and their causes

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Frame of Reference Training (FOR)

• Goal of FOR
• Raters develop common frame of reference
• Observing performance
• Evaluating performance
• Most appropriate when PM appraisal system
  focuses on behaviors

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Expected Results of FOR

• Raters provide consistent, more accurate ratings
• Raters help employees design effective
  development plans

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Behavioral Observation Training (BO)

• Goals of BO
• Minimize unintentional rating errors
• Improve rater skills by focusing on how raters
• Observe performance
• Store information about performance
• Recall information about performance
• Use information about performance

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Self-leadership Training (SL)

• Goals of SL
• Improve rater confidence in ability to manage
  performance
• Enhance mental processes
• Increase self-efficacy

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Pilot Testing

• Provides ability to
• Discover potential problems
• Fix them

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Pilot Testing - benefits

• Gain information from potential participants
• Learn about difficulties/obstacles
• Collect recommendations on how to improve
• Understand personal reactions
• Get early buy-in
• Get higher rate of acceptance

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Implementing a Pilot Test

• Roll out test version with sample group
• Staff and jobs generalizable to organization
• Fully implement planned system
• All participants keep records of issues
  encountered
• Do not record appraisal scores
• Collect input from all participants

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Ongoing Monitoring and Evaluation

• When system is implemented, decide
• How to evaluate system effectiveness
• How to measure implementation
• How to measure results

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Evaluation data to collect

• Reactions to the system
• Assessments of requirements
• Operational
• Technical
• Effectiveness of performance ratings

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Indicators to consider

• Number of individuals evaluated
• Distribution of performance ratings
• Quality of information
• Quality of performance discussion meetings
• System satisfaction
• Cost/benefit ratio
• Unit-level and organization-level performance

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Quick Review

• Preparation
• Communication Plan
• Appeals Process
• Training Programs
• Pilot Testing
• Ongoing Monitoring and Evaluation