Performance
Management Essentials
Stephanie Flanagan
April 22, 2015
© 2013 The Pennsylvania State University. All rights reserved.
Requests for permission to reuse these materials may be directed
to: The Center for Workplace Learning & Performance
at learning@psu.edu or 814-865-8216.
Accommodation Statement/Alternative Media Statement
The Pennsylvania State University encourages qualified persons with disabilities to
participate in its programs and activities. If you anticipate needing any type of
reasonable accommodation (e.g. materials in alternate format, sign language interpreter,
etc.) to participate in the Office of Human Resources Workplace Learning &
Performance program you plan to attend, please contact us as far in advance as possible
so that we can have the appropriate reasonable accommodations in place for you.
Contact The Center for Workplace Learning & Performance at 814-8658216 (or learning@psu.edu) to request reasonable accommodations or if you have
questions related to requesting reasonable accommodations or the physical accessibility
of the program site. This publication is available in alternative media on request.
TSS: PM Essentials
2
Center for Workplace Learning & Performance
Goal
To understand how to use performance management as a year-round approach to
engage and motivate your staff
Objectives
This seminar will help you to…

Understand the importance of performance management and your role as
supervisor in the process

Identify strategies for ongoing communication about managing performance,
including sharing expectations, setting goals and giving feedback
TSS: PM Essentials
3
Center for Workplace Learning & Performance
Performance Management: Self-Assessment
I Wish
1.
I have an accurate job responsibilities worksheet for myself.
2.
I have an accurate job responsibilities worksheet for my
employees.
3.
I meet with my employees to communicate their roles and
job expectations.
4.
I set clear, measurable goals and objectives for my
employees.
5.
I communicate how individual goals align with department
and organizational goals.
6.
I hold my employees accountable for meeting performance
goals and objectives.
7.
I provide constructive feedback to help staff improve
performance
8.
I take appropriate action to address poor performance.
9.
I conduct thorough annual performance reviews.
10.
I assess individuals fairly.
11.
I provide my staff with work that allows them to build their
skills.
12.
I keep my staff informed on events that impact their work.
13.
I provide my staff with the resources (budget, technology,
etc.) that they need to do their job effectively.
TSS: PM Essentials
4
Pretty
Much
Definitely
Center for Workplace Learning & Performance
What is Performance Management?
Performance management is the process of setting expectations, aligning goals,
assessing results, and focusing on staff development through ongoing conversations
between managers and their direct report(s).
Guiding Principles for Effective Performance Management
Should be an ongoing process of setting expectations, executing
plans and evaluating results.
Expectations should be explicit and mutually understood.
Engagement is increased when people are involved in planning the
work.
How work gets accomplished is as important as what gets
accomplished.
Regular, honest feedback increases understanding and positive
performance.
Companies that are Considered Best-In-Class for Performance Management:

Understand that performance management is on-going, with at least monthly
discussions between employees and their supervisors

Believe that performance management is an opportunity to foster employee
growth
Source: Aberdeen Group-- Is Employee Performance Management Performing?
TSS: PM Essentials
5
Center for Workplace Learning & Performance
The Performance Management Cycle
Goal Setting
& Planning
Ongoing
Feedback &
Coaching
Appraisal &
Reward
Goal Setting &
Planning
1. Clearly communicates roles and job expectations
2. Sets clear, measurable performance goals and
objectives
3. Communicates how individual goals align with
department and organization goals
Ongoing
Feedback &
Coaching
1. Holds people accountable for meeting performance
goals and objectives
2. Provides constructive feedback to help staff improve
performance
3. Takes appropriate action to address poor performance
Appraisal &
Reward
1. Conducts thorough annual performance reviews
2. Assesses individuals fairly
3. Differentiates high performers appropriately
TSS: PM Essentials
6
Center for Workplace Learning & Performance
The Performance Management Cycle
Step One: Goal Setting and Planning
Critical Elements of Goal Setting and Planning include:
 Clearly communicates roles and job expectations
 Sets clear, measurable performance goals and objectives
 Communicates how individual goals align with department and organization goals
Clearly Communicates Roles and Job Expectations
The purpose of the Job Responsibilities Worksheet (JRW) is to document the current
responsibilities of a position. It focuses on a specific position (not the incumbent);
provides details regarding the job duties and required competencies; and outlines the
job scope and reporting structure. The information provided in the JRW will be used to
ensure the position is properly classified and evaluated.
Responses must accurately represent the way the position is currently functioning. The
employee and supervisor must discuss the position to ensure mutual understanding. If
the position is vacant or the employee has occupied the position for less than six months
it is recommended the supervisor complete the JRW.
Characteristics of Effective JRWs:
o Based on the job, not the person in the job
o Realistic and achievable
o Clearly communicated and understood by both the manager and
employee
o Documented in writing
o Subject to change
o Linked to department and organizational objectives
For more information, go to the Penn State Office of Human Resources website:
http://ohr.psu.edu/recruitment-and-compensation/job-reviews
TSS: PM Essentials
7
Center for Workplace Learning & Performance
Sets clear, measurable performance goals and objectives
It is important for you to write (or help your direct reports write) specific goals for the
year ahead. Document expectations clearly and thoroughly. Together identify 2-5
specific goals, using the SMART model to cross-check for completeness and clarity
The goals should focus on:
o
Moving the business forward, consistent with business/functional goals and/or
o
Improving current individual and team performance. Performance must be
aligned with departmental goals and responsibilities.
Types of Goals
Goals can be grouped into different types, to give an overall picture of an employee’s
performance. Each type of goal serves a slightly different purpose, but as often as
possible, all goals should follow the SMART guidelines discussed previously.
Quantitative Goals:
These goals describe the “what” of performance and define an expected result, so it is
clear whether or not the goal has been achieved. These results are typically linked to
success measures for the specific department in which the employee operates.
Qualitative Goals:
Behavioral Goals
These goals describe the “how” of performance, and focus on skills that are necessary to
accomplish the quantitative goals mentioned above
Development Goals
These are also qualitative goals and include any specific activities that will improve or
enhance performance. The measurement of results is generally qualitative.
Professional and Career Aspirations
Designed to encourage the employee to define long-term goals and create a plan to
realize those goals. Work with the employee to define their career goals (what they
want to be doing 2-3+ years from now), the positions that best fit those career goals and
realistic timeframes in which the employee can move into specific roles in the
organization. Individuals may not need to move to new positions to achieve career
goals.
TSS: PM Essentials
8
Center for Workplace Learning & Performance
SMART: The Key to Setting Clear Expectations and Goals
Specific:
The goal to be met must be concrete, not just a general statement of
direction.
Measurable:
Whether qualitative or quantitative, there must be a way to assess
whether or not the goal has been met.
Attainable:
All goals should be within the reach for the employee, but should
include some “stretch.” Performance measures used should be ones
over which the employee has direct or indirect control.
Relevant and
Results Oriented:
Goals should easily link to both team/unit and Penn State strategic
imperatives.
Time-bound:
It should be possible to periodically assess the status of their progress
towards meeting the goal.
Writing SMART Goals
Use these questions as a guide:
1. Specific: What will the goal accomplish? How and why will it be accomplished?
2. Measurable: How will you measure whether or not the goal has been reached?
3. Achievable: Is it possible? Have others done it successfully? Do you have the
necessary knowledge, skills, abilities, and resources to accomplish the goal? Will
meeting the goal challenge you without defeating you?
4. Results-focused & Relevant: What is the reason, purpose, or benefit of
accomplishing the goal? What is the result (not activities leading up to the result)
of the goal? Is the goal relevant?
5. Time-bound: What is the established completion date and does that completion
date create a practical sense of urgency?
TSS: PM Essentials
9
Center for Workplace Learning & Performance
Give SMART goal writing a try:
GOAL: Improve clerical skills to enhance individual capabilities for providing
administrative support
SMART GOAL:
GOAL: Assist in developing more appealing events for alumni
SMART GOAL:
Avoid Common Pitfalls
Pitfall:
Too many goals
Pitfall:
Unclear accountability
Pitfall:
Unclear expected results
or measures
TSS: PM Essentials
Limit the number of annual goals to 3 – 5 to ensure
focus on the most important results
Clarify who is accountable for achieving the goal—
especially important in teams or where work is highly
interrelated
Clearly describe the qualities or measures of the
expected results to reduce ambiguity
10
Center for Workplace Learning & Performance
The Performance Management Cycle
Step Two: Ongoing Feedback and Coaching
Critical elements of giving feedback include:
 Holds people accountable for meeting performance goals and objectives
 Provides constructive feedback to help staff improve performance
 Takes appropriate action to address poor performance
 Motivates employees to continue successful behaviors and practices
Benefits of Positive Feedback






Gives clarity to the employee about good performance.
Creates enthusiasm.
Builds confidence and self-esteem.
Increases appropriate risk-taking and innovation.
Demonstrates care and involvement.
Makes an employee feel acknowledged.
When Positive Feedback is appropriate
 When used to recognize specific job performance that has met and/or exceeded
expectations. (It reinforces and motivates.)
Example of Positive Feedback: “The budget estimates you presented at the last staff meeting
were very detailed and gave us good criteria for decision-making.”
Benefits of Developmental Feedback
 It lets people know how to execute a task more effectively.
 It steers actions; communicates what needs to change.
 It increases the person’s self-awareness.
 It is the foundation of all development.
 It gives a bigger picture to the employee.
When Developmental Feedback is appropriate

When used to help an employee monitor and correct his or her own behavior.
Example of Developmental Feedback: “My expectation was that you would provide us
with more details on the event budget. Because we didn’t have enough information, we won’t
be able to make our final decisions until later this week. What can you do to ensure that we will
have the correct information?”
TSS: PM Essentials
Performance
11
Center for Workplace Learning &
Feedback Framework:
Feedback is an essential component of a learning and performance culture. The
framework assists in preparing to deliver feedback effectively.




Most beneficial if on-going
Intended to support staff performance and development
Applies to both positive and constructive situations
On-going feedback ensures no surprises
Copyright 2003 by The Segal Group, Inc., the parent of The Segal Company which includes its division, Sibson Consulting. All rights
reserved.
TSS: PM Essentials
12
Center for Workplace Learning & Performance
Feedback Framework:
Expectations set the stage
 Are explicit or implicit
 Change over time
 Build on our personal and professional histories
 Are the foundation for effective feedback
Observations provide the information.
 Are in the past
 Are completed actions
 Are exactly what was seen, heard, etc.
Assessments are conclusions about performance and competency demonstration.
 Are unavoidable
 Are not facts or observations
 Often create resistance
 Can produce a sense of urgency
 Should be “owned” by the giver
Consequences provide the “so what?”
 Are “desired” and “undesired”
 Are known or possible
 Often initiate action
 Affect your work and interaction with others
TSS: PM Essentials
Performance
13
Center for Workplace Learning &
Feedback Framework
Positive Feedback Example
Let’s assume you are Jack’s supervisor and have some positive feedback to provide:
Feedback Framework
Constructive Feedback Example
Let’s assume you are Jack’s supervisor and have some constructive feedback to provide:
Examples used with permission from Sibson Consulting
Using the Feedback Framework:
It’s your turn to try!
TSS: PM Essentials
14
Center for Workplace Learning & Performance
1. Describe the situation (Positive Feedback):
Dimension
Commentary
Expectation
Observation
Assessment
Consequence
2. Describe the situation (Constructive/Developmental Feedback):
Dimension
Commentary
Expectation
Observation
Assessment
Consequence
TSS: PM Essentials
Performance
15
Center for Workplace Learning &
Best Practices for Giving Developmental Feedback

Create a comfortable climate in which the employee feels safe.

Listen sincerely and actively to the employee. Really try to understand this person
before you begin to offer your own ideas.

Stay open minded.

Be candid, constructive and concise.

Share your own development experiences, thoughts and feelings

Share your observations if the employee seems to be struggling with how to get
started or seems very reserved. Take the initiative by sharing a personal experience,
or asking probing questions.

Agree on next steps and schedule another time to meet. Agree on the subject of your
discussions ahead of time.

Remember to demonstrate managerial courage.
©2013 Career Systems International, extracted from CareerPower® workshop materials, with permission
(www.careersystemsintl.com).
TSS: PM Essentials
16
Center for Workplace Learning & Performance
Challenges of Giving Developmental Feedback
Many feedback givers are hesitant to give feedback because it:



Might hurt feelings
May not have “all the facts”
May not have the skills to do it
Effective ways to respond to an emotional receiver




Let the person have the feelings.
Let the person know that you care.
Ask the person if they would like to take a break and get together again later.
Keep the conversation focused on behavior, what is expected, responsibilities –
clarify and confirm their understanding of what they need to do differently in the
future.
Effective ways to deal with differing perspectives on employee’s skills or goals




Ask for more information to understand the other person’s perspective
Be objective, and open to reconsidering your position
Be honest and say that your assessment differs, and explain how. Give examples.
If you have difficulty resolving your differences, move on and commit to coming
back to that point once you’ve both had the chance to think about it
Remember, giving developmental/constructive feedback well begins with following
good practices. Practice and experience will help you become more skilled and
comfortable in giving feedback.
By providing timely, constructive, and candid feedback to your employees about their
performance and career objectives, you will be an important part of their development
and success
TSS: PM Essentials
Performance
17
Center for Workplace Learning &
Role Play Practice Using Feedback Framework
Any feedback conversation could start by you asking for the individual’s perspective, if
appropriate.
Then:
1. State your
Expectations
2. Describe Your
Observations
Describe the standards or expectations you have for
the situation.
Tell the employee what s/he did that you want to give
feedback on. Be Specific. Focus on Behavior. Give
examples.
3. Share your
Assessment
Describe how the behavior impacted the department
and/or Penn State. Be objective.
4. Explain
Consequence
If the behavior was positive, express your appreciation.
If the behavior should be changed, offer suggestions on
what to do differently or how to improve.
Remember: Every discussion will look a little different, depending on the situation.
The receiver of your message will undoubtedly interject at many points in between
steps. Whenever s/he starts talking, let him/her finish and then REPHRASE what
they’ve said so s/he knows you got it.
TSS: PM Essentials
18
Center for Workplace Learning & Performance
Managerial Courage
Most employee attitude and skill surveys have items regarding how employees feel
about the amount and quality of feedback they’re getting, and how they feel about their
supervisor’s interests in their development, training and careers. These items usually
score low in most organizations. Among the lower rated items are: encourages and
accepts constructive criticism; gives consistently fair performance feedback; deals
effectively with performance problems; talks to me honestly about my career, tells me
what I need to do to get ahead, and gives developmental performance feedback in a
timely manner.
Most managers don’t want to create bad feelings. They want to avoid disruptions in the
boss/employee relationship, and in the work. They want to be able to manage the
timing of events---so they delay delivering bad news. All very human and unfortunate.
Some managers even feel it’s “humane” to soften bad news. They don’t want to be the
cause of stress, anxiety and trouble. They believe it is being sensitive and empathetic to
withhold and delay bad news, and rationalize holding back on their true feelings about
an employee’s performance and potential.
What is really fair and humane? What is the right thing to do? What do employees
want? What do employees deserve? What serves the organization best?
Most managers know the answer. Most employees know the answer. It’s telling the
truth. It’s being open, honest, direct and timely. Employees deserve the truth so they
can work on their issues and problems and have more control over what happens to
them. Employees deserve to know where they stand.
It’s a prime responsibility of managers to tell them the truth, to call performance and
potential as they really see it, to give constructive and accurate feedback on a timely
basis. And ultimately, to pay, reward and promote for performance. Only honest
feedback, compassionately delivered, helps employees and the organization.
-- Eichinger & Lombardo
©2013 Career Systems International, extracted from CareerPower® workshop materials, with permission
(www.careersystemsintl.com).
TSS: PM Essentials
Performance
19
Center for Workplace Learning &
The Performance Management Cycle
Step Three: Appraisal & Reward
Critical elements of appraising and rewarding performance include:
1. Conducting thorough annual performance reviews
2. Assessing individuals fairly
3. Differentiating high performers appropriately
Supporting Peak Performance
Feedback and coaching are not enough to help people improve their performance.
There are three factors that everyone needs to perform at their peak. When working
with your direct reports, ask yourself if they possess each of these.
Skills & Knowledge
Motivation
Do they currently
have the skills &
knowledge to be
successful?
Are they motivated
by their work? Are
they recognized or
rewarded for their
work?
Support
Do they have the
resources,
feedback and work
environment that
will support their
success?
TSS: PM Essentials
20
Center for Workplace Learning & Performance
Supporting Peak Performance
Here are some ways you can help your staff perform at their peak. Fill in any others
that you can think of.
What are your challenges with helping to support peak performance?
Skills & Knowledge
 General
 Job- Specific
 Challenging work assignments
 Mentoring
 Coaching & feedback
 Training
____________________________
____________________________
____________________________
Motivation
 Interest
 Growth
 Recognition
 Incentives & Rewards







Interesting & rewarding work
Clear goals
Challenging assignments
Career path
Regular feedback
Recognition & positive outcomes for good
work
Rewards – financial & other
____________________________
____________________________
____________________________
Support
 Information
 Resources
 Culture & Teamwork
TSS: PM Essentials
Performance
 Job descriptions
 Clear goals and assignments
 Regular feedback
 Budget, head count, technology
 Supportive team
 Open, inclusive work environment
____________________________
____________________________
____________________________
21
Center for Workplace Learning &
Informal Appraisal and Rewards
What forms of recognition do you appreciate? What about your employees? Which
ones might not matter to you? To them?

An award, or other recognition, preferably given in front of peers

A plaque or certificate to display in an office or at home

A thank you, in writing, from a boss

A note or email to a boss’s boss about excellent work

An opportunity to go to training program or a conference

Frequent pats on the back

Leadership implementing employees’ ideas (and giving credit where credit is
due)

A chance to be on a really exciting cutting-edge project

A monetary bonus of some sort

Time off

Words of praise in front of colleagues

A chance to go to lunch with senior leadership

An opportunity to be on a committee or task force

A small memento or gift

Tickets to an event such as a football game, a lecture or concert

More freedom or autonomy
Other ideas:
Adapted From the book Love ‘Em or Lose ‘Em – Getting Good People To Stay,
By Beverly Kaye and Sharon Jordan-Evans, Berrett-Koehler Publishers, Inc, 2002
TSS: PM Essentials
22
Center for Workplace Learning & Performance
Developing Your Employees
Critical elements of developing employees include:
1. Supporting the growth and development of all employees within your department,
regardless of role or status
2. Being aware of each employees’ strengths/developmental areas/career goals
3. Utilizing a blended approach for employee development (such as the 70-20-10
model)
The 70-20-10 philosophy around learning and professional development, describes how
the most successful learning occurs:



70% from real life and on-the-job experiences, tasks and problem solving. This is the
most important aspect of any learning and development plan.
20% from relationships, networking, feedback and from observing and working
with role models.
10% from formal training opportunities
Some examples of learning activities within each category include:
On-the-Job Experiences (70%)
• Increase expertise in a particular area by requesting a specific task assignment.
• Assume different responsibilities within current position.
• Serve on a search committee/ interview a potential new employee
• Lead a team meeting
• Adopt innovative approaches to routine tasks and show cost-effectiveness.
• Pursue committee and task force assignments
• Complete cross-training for other positions
• Provide on-the-job coaching to other employees
Relationships, Networking and Feedback (20%)
• Interview or shadow a high-performer
• Seek out a mentor, or be a mentor
• Assume leadership roles in civic and community organizations
• Provide constructive informal feedback to peers
• Informally solicit feedback from peers, a direct manager, other colleagues and/or clients
Formal Development Activities (10%)
• University undergraduate and graduate courses
• Seminars offered by the Center for Workplace Learning and Performance (CWLP)
• Seminars offered by ITS Training Services
• Workshops, symposia, conferences
• Teleconferences, Webinars, audio-conferences, podcasts
• Online courses
• Self-directed learning or courses
• Tutorials on computer software
TSS: PM Essentials
Performance
23
Center for Workplace Learning &
Five Questions to Ask Your Direct Reports (as soon as possible)
1. What are your long term interests, desires, hopes and dreams? (i.e. “the big
question”)
2. What are your immediate or short term goals as it relates to your role?
3. How do your immediate or short term goals get you to your long term goal?
4. What motivates you, in general? What gets you out of bed in the morning to
come to work?
5. What do you value in a boss? What do you need from a boss? What
characteristics and/or traits do you need to see in your boss?
TSS: PM Essentials
24
Center for Workplace Learning & Performance
Action Plan for the Future….*
Reflecting on today’s session, take a moment to think about what you can start doing,
stop doing and continue to do in your role as supervisor in order to be as effective as
possible in each of the critical components of the performance management process :
Goal Setting & Planning
Ongoing Feedback & Coaching
I will start…
I will start…
I will stop…
I will stop…
I will continue…
I will continue…
Appraisal & Reward
Developing employees
I will start…
I will start…
I will stop…
I will stop…
I will continue…
I will continue…
Consider: In what ways may you need more support, guidance or training to maximize
your role in the performance management process? Who can help you?
*The future is now!
TSS: PM Essentials
Performance
25
Center for Workplace Learning &
Performance Management: Things to Remember

Consistency is important (12 months a year)

Execution is important (how you coach and mentor)

Courage is important (tell it like it is)

Focusing on developing your employees’ talent is important!

Forms are not that important (Necessary? Yes. However, they are just a tool
used to help document the process.)
Final Thoughts:
“There are many, many design issues that tend to distract managers from what is really
important-- line managers need to own the process and have MEANINGFUL
CONVERSATIONS with employees. If meaningful conversations really occur, it doesn’t
matter what your forms look like and what kind of rating scale you use.”
- Eichinger, Ruyle, and Lombardo
The greater danger for most of us lies not in setting our aim too high and falling short;
but in setting our aim too low, and achieving our mark.
--Michelangelo, Italian sculptor, painter, architect & poet
Most people do not receive nearly enough appreciation. How can this be when
appreciation is free, easy, and readily available? All you have to do is speak. Go give
some away now.
--Rhoberta Shaler, PhD
TSS: PM Essentials
26
Center for Workplace Learning & Performance