Performance Evaluation

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Performance Evaluation Planning
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Program Outline

• I. TODAYS MANAGEMENT EXPECTATIONS
• Supervisors Accountability For Employee
  Performance
• The Supervisor As Coach
• What Does The Company Need From The Employment
  Relationship?
• What Do Employees Really Want From The
  Employment Relationship?
• II. PROBLEMS WITH PERFORMANCE MANAGEMENT
  PROGRAMS
• Why Do Performance Appraisals?
• III. QUALITIES OF A SUCCESSFUL PROGRAM
• Top Level Support
• Involvement
• Training
• Accountability
• IV. DESIGNING THE PERFORMANCE MANAGEMENT PROGRAM
• Performance Management System Philosophy
  Objectives
• Job Descriptions
• Five Steps To Managing Performance

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TRADITIONAL MANAGEMENT

• Planning
• Define Goals for Future Performance
• Determine Tasks Needed to Meet Goals
• Determine Available Resources
• Organizing
• Assign Identified Tasks
• Allocate Needed Resources
• Leading
• Inspire Employees to Achieve Goals
• Controlling
• Monitor Employee Activities to Assure Progress

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ENHANCEMENTS TO TRADITIONAL MANAGEMENT

• Decentralized Decision Making
• Flexible, Skilled Involved Workforce
• Increased Sensitivity in Work Relationships

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SUPERVISORS ACCOUNTABILITY FOR EMPLOYEE
PERFORMANCE

• Supervisors Job Description - Supervise the Work
  of Other Employees
• Set Objectives
• Hire Employees
• Train Employees
• Assign Tasks to Employees (Delegate)
• Measure Performance of Employees
• Reward/Discipline Employees

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SUPERVISORS RESPONSIBILITIES

• Meet Their Own Performance Objectives
• Maintain Accurate and Timely Records of
  Employee
  
  Performance Throughout the
  Appraisal Period
• Complete the Forms Used in Appraising Employees
  and Return Them to HR on time
• Maintain Their Knowledge and Understanding of
  the Performance Appraisal Process
• Review Appraisals Together With Employees

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THE COMPANY WANTS...

• Maximum Employee Productivity
• Employees to Focus on Organizations Objectives
• Employees to Take Responsibility for Their
  Performance
• Management to Understand How to Manage
  Performance Effectively
• Coaching, Counseling and/or Discipline for Poor
  Performers
• Protection From Legal Liability
• An Objective Basis for Development, Compensation
  and Rewards

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Supervisors Become Coaches When They Use Feedback
on a Continuous Basis to Reinforce Positive
Behavior or Counsel Employees to Correct Actions
That Do Not Further the Organizations Goals
Coaching, Instead of Managing or Supervising
Is a Key Concept for Achieving Top Performance
(Management is often one-way coaching is
two-way, with the coach and the employee
constantly giving and receiving feedback)
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DYNAMICS OF COACHING

• Be There For Them
• Give Them What They Really Want
• Reward Them With Ownership

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BE THERE FOR THEM!
(Will They Be There for You?)
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• 75 of respondents in a study of employee
  communications indicated that internal
  communication has a positive influence on
  employee performance.
• (Conducted in 1991by William M. Mercer, Inc. for
  the Council of Communications Management)

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The Supervisor is the Link Between Top Management
and Employees
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Keeping Employee Communications up front and
honest helps to build employee morale, contribute
to company loyalty, and increase productivity
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List the Kinds of Things Employees Need to Know

• __________________________________
• __________________________________
• __________________________________
• __________________________________
• __________________________________
• __________________________________
• __________________________________

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INCREASE EMPLOYEE ENVOLVEMENT!

• Encourage activities that make employees feel
  more participative in the business.
• Reward people who learn more about their jobs,
  new trends, solve problems, and are willing to
  make changes.
• Employees who feel empowered are far less likely
  to become chronically absent or quit.

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GIVE EMPLOYEES WHAT THEY REALLY WANT
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What Do Employees Want From the Employment
Relationship?
From research entitled, 2001Randstad North
American Employee Review
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HOW DO EMPLOYEES DEFINE SUCCESS IN THE WORKPLACE?

• Being Trusted to Get the Job Done
• Opportunity to Do the Type of Work I Want
• Power to Make Decisions That Affect Their Own
  Work
• Finding a Company Where I Want to Work a Long
  Time
• Getting Raises
• Having Flexibility
• Many Different Job Options Opportunities
• Getting Promotions
• Getting Praise Recognition
• Managing (Leading) Other People

(2001Randstad North American Employee Review)
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MATURE WORKERS (Age 55-69)
Overall, mature workers view themselves as
"contributors," while viewing their employers as
a "benevolent master." Their greatest
psychological need is "respect" and their
overriding workplace characteristic is
"dedication."
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BABY BOOMERS (Age 36-54)
Baby boomers are "adaptable" and in need of
"appreciation." They view employers as "partners"
while striving to be "recognized employees.
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GEN X-ERS (Age 21-35)
Gen X-ers are "realists" in need of "security."
The volatile nature of the new economy drives
them to perceive employers as "terminators,"
while they view themselves as "employees with a
future."
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GEN Y-ERS (Under Age 21)
Gen Y-ers see themselves as "entrepreneurs" and
their employers as "providers." They are in need
of "attention" while remaining "cautiously
optimistic" about the future.
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For All Employees, Most Important is TRUSTeven
more than money or title
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REWARD WITH OWNERSHIP
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OPPORTUNITY TO BELONG

• Make them feel like members of the Club
• Ask for their ideas, suggestions for
  problem-solving
• Challenge them with new tasks, assignments,
  projects
• Involve them in setting performance criteria
• Encourage self-evaluation of their performance
• Work together to set performance objectives

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TheDYNAMICS OF PERFORMANCE MANAGEMENT

• BEING THERE
• GIVING EMPLOYEES WHAT THEY REALLY WANT
• REWARDING WITH OWNERSHIP

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Problems With Performance Appraisal Programs

• Inadequately Defined Standards of Performance
• Sketchy or Ambiguous Performance Documentation
• Inadequate Time Allotment for the Discussion
• Supervisor Bias in Judging Performance
• Reliance on Gut Feelings Lack of Objectivity
• Lack of Timeliness of Performance Reviews
• Lack of Employee Involvement

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Why Do Performance Appraisals?

• To Let Employees Know Where They Stand And To
  Give Them Feedback
• As A Basis For Compensation And Rewards
• As A Basis For Individual Training And
  Performance Improvement
• As A Basis For Career Planning
• As A Basis For Business Planning
• To Document HR Decisions, Placement,
  Promotions And Discipline

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FIVE STEPS TO MANAGING PERFORMANCE

• Set Goals (Objectives) With Employee
• Monitor His/Her Performance
• Correct Performance Problems
• Compare Performance To Expected Results
• Reward or Take Corrective Action

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SET GOALS WITH THE EMPLOYEE

• Set S.M.A.R.T. Objectives Clear Standards of
  performance
• Remember - Timing is Everything!

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Determining Performance Criteria

• What are our organizations goals?
• What are the key indicators of our success?
• How are these measured?
• What duties do you (the employee) perform to
  assure that our goals are met?
• How well must you perform them for the
  organization to meet its goals?
• What knowledge or skills must you have in order
  to accomplish your tasks?
• What goals should you set for the next
  performance period?

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MONITOR EMPLOYEE PERFORMANCE

• Base Performance Measures on S.M.A.R.T.
  Objectives and Clearly Defined Standards
• Be Sure Performance Measures Are Job- related
• Personally and Publicly Praise Good Work
• Personally and Privately Criticize Mistakes
• Keep a Written Record of Each Performance
  event in Your File or Log

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The Supervisors Most Valuable Resource

• THE EVENT FILE OR LOG - A confidential file
  folder or notebook locked in your desk containing
  notes documenting each performance event (both
  positive negative) during the performance
  period.
• Following discussion with the employee, each
  note should include Date, Time, Brief
  Description and Results of Event signed by you.

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CORRECT PERFORMANCE PROBLEMS

• Provide Guidance and Counseling for Poor
  Performers
• Show Employees Examples of How Their Work Does
  Not Meet the Standards
• Have Measurement Documentation Available
• Make Sure You Have Documented Each Time You Have
  Spoken to Employees About Their Performance in
  Your Event File or Log

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Most Employees Want To Perform Well, But...

• They may not know the rules
• They may not have clear goals
• They may lack confidence
• They may have limited ability
• They may be poorly trained
• They may not have the right equipment
• They may have limited communication
• They may be distracted by personal problems

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COMPARE PERFORMANCE TO EXPECTED RESULTS

• Assess Performance Objectively
• Describe Specific Performance Events in Support
  of Each Rating
• Determine Whether Performance Objectives Have
  Been Met

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Its the Job of the Supervisor to Help Employees
Eliminate these Obstacles to Performance
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REWARD OR TAKE CORRECTIVE ACTION

• Recommend Appropriate Pay Increase Based on
  Salary Guidelines
• Promote the Employee to a New Position in the
  Career Path
• Invoke the Companys Progressive Discipline
  Procedures

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SET NEW GOALS
Then...

• Establish New Performance Objectives
• Set New Personal Development Objectives to
  Improve Performance

Set S.M.A.R.T.Objectives
Remember
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THE RESULT?

• The employee will know what he/she must

Continue Doing Stop Doing Start Doing
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SMART OBJECTIVES

• SPECIFIC
• MEASURABLE
• ATTAINABLE (Yet Stretching)
• REALISTIC
• TIMELY

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SPECIFICThe objective is written in words, which
arePrecise in their meaning, not ambiguous.

• EXAMPLE
• Poor - "Employee will learn to use the PC.
• Better - "Employee will learn EXCEL to the
  extent that he/she can format, input data, enter
  formulas, save and print an error-free
  spreadsheet showing monthly expense analysis over
  one fiscal year."

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MEASURABLEThe objective is quantified and
qualified. It answers the questions How Many?
How Well?

• EXAMPLE
• Poor - "Employee will attend department
  meetings and present a report.
• Better - "Employee will attend each monthly
  department meeting and present at least two
  separate one-hour presentations, designed to
  inform department members of new developments in
  his or her specialty, during the 2004 fiscal
  year."

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ATTAINABLE, YET STRETCHINGThe employee can meet
the objective, but he/she MUST exceed past
performance level.

• EXAMPLE
• Poor - "Employee will generate no less than
  his/her 1998 quarterly average of contacts by
  April 1, 2004."
• Better - "Employee will exceed his/ her 2003
  average monthly new doner contact volume of 15 by
  5 with an interview rate of at least 10 during
  the six months period ending July 1, 2004.

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REALISTICThe objective is not too hard, not too
easy. It isrenegotiable should conditions
change.

• EXAMPLE
• Poor - "Employee will not be absent from
  work for any reason during the next 12 month
  performance period."
• Better - "Employee will not exceed 5 absences
  for illness over the 12 month calendar year
  ending December 31, 2004. All absences over 3
  must be verified by a physician's written
  statement."

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TIMELYThe objective is created with a definite
time span identified. It is self-liquidating.

• EXAMPLE
• Poor - "Employee will complete a market
  analysis.
• Better - "Employee will perform a six-month
  market analysis by September 30, 2003,
  culminating in a written report of findings.

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Write A S.M.A.R.T. Objective

• ________________________________________
  __________________________________________
  __________________________________________________
  __________________________________________________
  __________________________________________________
  __________________________________________________
  __________________________________________________
  __________________________________________________
  __________________________________________________
  ________

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PERFORMANCE MANAGEMENT
?

• Implementation
• Steps

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Organizational Success Factors

• Top-level Executive Support
• Involvement at All Levels in the Organization
• Flexibility to Meet Changing Market and Strategic
  Objectives
• Training of Managers and Supervisors
• Clear Communication to Employees
• Defined Accountability for Program Administration
  and Maintenance

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Performance Management SystemDesign Steps

• Set Program Philosophy Objectives
• Choose an appropriate appraisal method
• Develop complete and accurate job descriptions
• Determine performance criteria goals, job
  standards
• Design procedures and forms
• Train supervisors
• Communicate appraisal process to employees
• Monitor the program for continuous improvement

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Performance Management System PHILOSOPHY
OBJECTIVES
Supports the companys goals while providing
employee career growth. A collaborative,
continuous process of coaching employees,
evaluating performance for improvement and
support of pay decisions.

• Means of measuring employee job performance
• Fair and objective evaluation of performance
• Basis for identifying training needs
• Provide rewards and recognition for
  good performance - support the pay program
• Help employees focus on Company goals

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COMMON APPRAISAL METHODS

• Global essays and ratings
• Organizational records
• Critical incidents
• Behaviorally anchored rating scales (BARS)
• Multi-rater systems (360 Degree)
• Objectives and goal-setting procedures
• Trait rating
• Peer ranking

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Develop Job Descriptions

• For All Jobs, At All Levels
• Determine Best Job Analysis Method Interview,
  Direct Observation, or Questionnaire
• Involve All Employees in the Process
• Indicate Essential Duties Responsibilities
• Include Job Specifications Relevant
  Compensable Elements
• Include ADA Compliance Elements
• Final Drafts Approved by Management

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• Supervisors Review Them With Employees
• When a Job Changes, Job Description Must Be
  Updated
• Apply Process for All Newly Established Jobs, as
  well

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DESIGNING THE APPRAISAL FORMS

• KISS - keep them simple!
• Allow space for objective-setting and recording
  of results
• Allow plenty of space for written support for
  ratings
• Provide space for employee comments
• Include a process for establishing an overall
  rating
• Provide signature lines for employee,
  supervisor, next management level and HR
• Set procedures for record retention and
  dissemination

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DOCUMENT THE PROCESS

• To Assure Permanence and Consistency

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The Performance Appraisal Process

• Forms Distributed By Human Resources
• Employee Self-Appraisal Form
• Performance Appraisal Form
• Supervisor-Employee Meeting
• Give Self-Appraisal Form to Employee to Do
• Set Appraisal Meeting Date and Time
• Employee Completes Self-Appraisal
• Forward Completed Form to Supervisor
• Supervisor Completes Performance Appraisal
• Meets With Employee to Discuss Review
• Forward Completed Form to HR

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Employee Self-Appraisal Form

• Encourage the employee to rate him/her self
• Support each rating with specific instances
• In completing the form, ask the employee to
• Evaluate how well objectives were met
• Suggest new objectives to be accomplished
• Suggest personal development objectives
• Evaluate the supervisors communication
  cooperation
• Suggest how the supervisor can assist in
  improving the employees performance

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Performance Assessment Form

• Employee Performance Summary
• List the employees objectives on the form
• Indicate the results of each
• Indicate the weight assigned to each
• Rate each using the rating code
• Multiply the weight by the rating
• Total the column and divide by 100 to get a total
  rating for this section
• Rate the employee on each of the factors
• Support each rating with specific instances
• Average A B ratings to determine total

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Performance Objectives Form

• In preparation for the new performance period,
  ask objective-setting questions
• List up to five employee performance objectives
• Be sure they are SMART objectives
• At lease one should be a personal development
  objective
• Indicate weight for each total equals 100
• Indicate expected completion dates
• Write any relevant comments below
• Both supervisor employee sign the form

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MONITORING THE PERFORMANCE PROGRAM

• Monitor Effectiveness of Supporting Comments
• Track the Timeliness of Performance Appraisal
  Events
• Perform Rating Distribution Analysis
• Track Employee Ratings Over Time - Analyze
  Trends
• Identify Variations in Ratings by Performance
  Criteria
• Recognize Differences in Ratings by Raters (In
  the case of multi-rater systems)

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QUESTIONS ANSWERS
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HUMAN RESOURCES MANAGEMENT ASSOCIATES, INC.
Helping You Manage Your Most Important Asset

• looks forward to the opportunity to help you
  achieve your organizations strategies and goals
  through effective Human Resource Management.

www.hrma.com
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• PAY AS A MOTIVATOR

• Pay must be directly related to job tasks
• Pay must be based on understood and agreed-upon
  criteria
• Pay must be based on actual performance
• Pay must be timely related to performance
• There must be perceived differences in pay
  related to performance
• There must be perceived adequacy of actual pay

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DETERMINANTS OF PAY SATISFACTION
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Position in Pay Grade
Performance Min. ________________________
___ Max. Rating 1 2
3 4 5 5 6.00 5.50 5.00 4.50
4.00 4 5.00 4.50 4.00
3.50 3.00 3 4.00 3.50 3.00
2.50 2.00 2 1.50 0.50 0.00
0.00 0.00 1 0.00 0.00 0.00
0.00 0.00
Salary Guideline Matrix (Sample)
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Compensation ProgramPay For Performance
Pay Range Minimum---------------------------------
----------------------gtMaximum Employees can
influence their advancement through the range by
doing their jobs well. Good performance is the
key to increased pay.