1 .Characteristics of an Ideal Performance Management System: A combination of forms, processes and procedures is used by organizations to evaluate their employees' job performance. The ideal performance management system consists of several elements: job descriptions, performance expectations, appraisals, disciplinary policies and commendations. Although supervisors and employees alike often dread annual performance evaluations and appraisals, many performance management systems function well and provide adequate support for a productive workforce. The Performance Management Process Performance management exists to give employees clear and continuous feedback on their performance, so they know which areas they are strong in and where they need to improve. A good system will also allocate the right goals to employees, and make sure that everyone is achieving those goals. There are several characteristics of a performance management system. While businesses have their own way of doing things, recommends that you incorporate the following six vital elements: The system must be accurate and fair The system must be efficient The system should be set up to elevate performance, and not simply review past performance Compensation should be linked to the performance evaluation The system should use multiple data sources, such as measuring performance against objective key performance indicators The system should include formal development and training strategies Job Descriptions: An accurate job description is a fundamental characteristic of an ideal performance management system. Without a clear understanding of job duties, it's impossible to know what the employee is supposed to be doing and whether she is meeting the requirements of the job. The job description isn't a laundry list of tasks for each title or position. However, it contains the essential functions of each job and the qualifications necessary to perform those tasks. Training and Coaching: An ideal performance management system provides training for supervisors who conduct employee evaluations. The training consists of techniques for giving complimentary as well as constructive feedback to employees, learning how to determine when disciplinary review is warranted and how to write up employees for disciplinary action. In addition, supervisors learn how to evaluate employees objectively. Training for employees explains how their performance will be measured and evaluated, as well as what actions are subject to disciplinary review and the policies for receiving disciplinary counseling and notices. Fair, Accurate and Timely: Performance appraisals – the annual evaluation of employee performance – must be accurate, fair and timely. Although supervisors and employees alike may dread the appraisal season, they may also look forward to know how well their performance ranks when compared to the employer's expectations. A timely performance appraisal works to address problems and deficiencies before they become too serious, reports the Society for human resource management Likewise, employee performances worthy of commendation should be immediately recognized to reinforce the positive behavior and action. Compensation Decisions: Employees generally want to know how their performance is connected to pay. This question often comes up during the interview stage, so it's an important factor for employees, especially workers who have become accustomed to extra rewards for their efforts. Money isn't everything, but the whole purpose of a performance management system is to mobilize the energy of the employee toward the achievement of strategic goals. It's unavoidable that your performance management system has a tie-in with compensation, whether it's a certain percentage raise or wage hike based on the employee's level, effort or actual performance and productivity. 2. Performance Appraisal Form: Employee name: Position: Supervisor name: Department: Review Period: Date: Instructions: Rate the employee's performance during the review period by checking the most appropriate numerical value in each section. To determine the overall performance rating, add the numerical values together and divide by eight (or 11 if the supervisor section was completed). Prior to the performance discussion with the employee, a detailed plan to address areas rated "needs improvement" or "unacceptable" must be submitted to the department head and human resources for review. 1 Unacceptable (fails to meet standards) 2 Needs improvement (frequently fails to meet standards) 3 Satisfactory (generally meets standards) 4 Outstanding (frequently exceeds standards) 5 Excellent (consistently exceeds standards) 6 Job knowledge Knowledge of products, policies and procedures; OR knowledge of techniques, skills, equipment, procedures, and materials. Quality of work Freedom from errors and mistakes. Accuracy, quality of work in general. Quantity of work Productivity of the employee. Reliability The extent to which the employee can be depended upon to be available for work, to complete work properly, and complete work on time. The degree to which the employee is 5 4 3 2 1 reliable, trustworthy, and persistent. Initiative and creativity The ability to plan work and to proceed with a task without being told every detail and the ability to make constructive suggestions. Judgment The extent to which the employee makes decisions that are sound. The ability to base decisions on fact rather than emotion. Cooperation Willingness to work harmoniously with others in getting a job done. Readiness to respond positively to instructions and procedures. Attendance Consistency in coming to work daily and conforming to scheduled work hours. Complete this section for employees with supervisory responsibilities: 5 Planning and organizing The ability to analyze work, set goals, develop plans of action, utilize time. Consider amount of supervision required and extent to which you can trust employee to carry out assignments conscientiously. Directing and controlling The ability to create a motivating climate, achieve teamwork, train and develop, measure work in progress, take corrective 4 3 2 1 action. Decision-making The ability to make decisions and the quality and timeliness of those decisions. Training Performance Management & Measurement: In order manage and measure ongoing performance, organizations typically train and certify their employees to ensure competency levels. Tasks include measuring operations, personal achievement and satisfaction levels. Identifying, using and interpreting performance measures for training use analytical techniques and tools to help support efficient and effective business operations. Performance management, an overall system including detection and prevention activities, enables companies to be sure training is quality, so they can produce products and services that best meet their customer needs. Features: Performance management is a whole system. Monitoring operational metrics typically reveals performance problems, such as a decrease in sales or increase in support calls. Needs assessments result in formal training courses, coaching or self-paced study alternatives to address the issues? Evaluating training effectiveness typically features participant evaluation and instructor evaluations. Most formal training courses include practice exercises and assignments. A final exam (assessment) determines the student’s overall competency level. Students evaluate the instructor presentations as well to determine the overall course effectiveness and relevancy to on-the-job performance. Benefits: Performance measures provide details on how well a process or procedure works, if goals are met, if customers are satisfied and if products or services produced conform to established quality standards. They consist of a number and unit of measure linked to a goal or objective. For example, a common training performance measure might be monitoring the percentage of employees completing mandatory process training. This reflects a training organization’s success at achieving the goal of training the entire workforce on processes. If reports indicate results are below-desired parameters, leaders can take action to remedy the situation. Types: Types of training performance measures include effectiveness (indicating the degree to which the activity conforms to requirements), efficiency (indicating the degree to which the activity produces output at the minimum cost), quality (indicating the degree to which expectations are met) and timeliness (indicating whether the activity occurred when it should have based on prior agreements). Training performance may also be measured on the participant’s ability to adhere to productivity and safety standards. Measurement allows people control, selfassessment, improvement and management. Levels: Top-level business reports typically include financial data and operational ratios. The next lower level reports usually reflect comparisons to competitors (such as the time to launch new offerings). The level below that represents departmental performance. At the lowest level, individual performance statistics gauge personal success. Ideally, training performance measurement and management have components that align at each level. As a whole, performance management details identify if requirements are met, processes work and decisions are made on facts (rather than emotion). In addition, reports highlight where improvements are needed, show if improvements occur (after training is completed) and reveal if the right things are measured. Using reports, managers can identify problems in supplementary processes, such as suppliers. Application: Training performance measurement and management should be based on participant needs and apply broadly to all activities. Complex or multidimensional measures may be too difficult or costly to assemble on a regular basis. Criteria for interpretation should be discussed among sponsors and stakeholders to ensure analysis results in effective decision making. A typical process identifies what training activity you want to measure, establishes the goal or standard, identifies a responsible person, collects data, analyzes the data, determines if corrective action is necessary and establishes new goals if necessary based on new conditions 3. The Personal Development Programmed: Your personal development programmer is a method of systematizing your approach to your own development. The personal development programmed is also an organizational programed that is intended to provide a definite structure for those people in the organization who want to improve their productive (and earning) capability. Personal development programed is also a method of ensuring that your people are not standing still, but are instead, advancing, in terms of their skills, knowledge and performance. When at work, you need to be thinking about how, over time, you could be continually improving your performance. The way to improve your performance, over time is to improve your list of goals, your plan of action, your knowledge and your skills. And in addition, you need to consistently apply the knowledge and develop your self-discipline to ensure that what you are learning is a part of your daily habit patterns of thought, feeling, speech and action. You need to be methodical and consistent in your approach to personal development. Personal development is not something that you do one day, and then give up the next. Personal development is a long range habit. Personal development is about committing yourself to a disciplined, consistent, intelligent system of never ending improvement. It is the one sure fire way that you can ensure that your future is secured. How can you get involved in a programed of personal development? Here are the steps: 1. Set your goals for the future : In order to develop yourself you need to have a purpose. You need to know why you are working so hard. Your goals will supply the motivation. It is important to write your goals down. Take your future seriously. Ask yourself "Where do I want to be, one year from now" Once you know where you want to be, now are in a better position to know what you need to do 2. Formulate your written plan : In order to achieve your goal you must formulate a detailed plan of action. A goal without a plan is useless. A goal with a detailed written plan of action is a powerful agent for change . 3. Make a list of skills that you need to acquire: In order to achieve your goals and follow through on your plan, you need to improve your skills. But the question is what skills? The skills that you need to develop are determined by the goal you wish to achieve and the plan you have written. All goals and all plans will require that you improve your skills. For example: If you want you want to be a sales person, and then you need to develop your sales skills. If you want to be leader, then you need to develop your leadership skills. If you want to be a manager, then you need to develop your management skills. If you want to be a technical wizard, then you need to develop your technical skills. You should write a list of skills that you need to develop and take this list seriously. 4. Make a list of the knowledge that you will need to gain : The goal that you have written down, at step one, will require that you gain knowledge. Knowledge is power. You must gain knowledge. If you have not yet achieved your goal, then one reason is that you do not yet know how to achieve your goal. If you knew exactly how to achieve your goal, then you probably would have done it by now. So make a firm commitment to gain the knowledge that you need. How should you gain the knowledge? Answer: read all the books you need to read Every industry is the application of specialized field of knowledge. And every specialized field of knowledge possesses its own library of sacred texts. Your industry depends upon the specialized knowledge that is contained in its "sacred texts". If you are a surgeon you need to have read Grey's anatomy. If you are a biologist you need to have read Charles Darwin. If you are an economist you need to have read Marx, Keynes and Adam Smith. Read the books you need to read. All leaders are readers. Anyone who will not dedicate sufficient time to study is not a serious contender for the high honours. How else can you gain knowledge? Answer: observe others and learn from the best. Look around you and you will see living examples of good practice, But, don't just look: instead, observe and examine. If there is a person at your place of work who is out performing the others, then observe and examine that person. The following is true about that person: Either he / she is doing things the others are not doing. Or; he she is not doing things that the rest are doing. Or some combination of the two; he is doing some unique things and, at the same time, he is avoiding some common mistakes. If you watch carefully you will discover both sets. Then your job is to: Engage your mind and do the unique things that the model is doing. And stop repeating the common mistakes that most people are making. 5. Make a list of your strengths and play to them: Everyone has a set of natural talents. A natural talent is an ability for which nature has endowed you with an aptitude. Everyone has a natural talent; most people have more than one natural talent. It is important for you to recognize your natural talents and play to them. You may as well go with the flow; and be brilliant those things for which nature has selected you 6. Make a list of your weaknesses and work to eliminate them : Similarly, everyone has a set of natural weaknesses. A natural weakness is an ability for which nature has endowed you with a paltry supply of genetic aptitude. Everyone has a natural weakness of talent; most people have more than one natural weak point. It is important for you to recognize your natural weak points and then; to work like crazy to overcome them. Don't give up without a fight. The struggle for survival requires that you play to your strengths and eliminate your weaknesses. What is 360 degree feedback? 360 degree feedback, also known as multi-rater feedback, is a system in which anonymous feedback is gathered about a member of staff from various people they have working relationships with. This is usually their managers, peers, direct reports, subordinates - hence the name "360 degree". It's designed so a range of people can share their opinion to provide a well-rounded view on the individual. It's used mostly as a development tool because it provides information about a subject's work competencies, behavior and working relationships. It's also mainly used for individuals higher up in the organization’s hierarchy. The 360 feedback system process : Administering the survey: Around 6-10 respondents complete an anonymous online feedback form. Respondents are arranged into groups depending on the relationship with the subject, such as, manager, peers etc. If it's appropriate, feedback can also be gathered from external sources, such as clients or customers. The surveys are competency based and the questions typically consist of: rating management competencies, such as, leadership and communication skills and open ended questions, for example, "What does X do well as a leader?" Questions should always be regarding observable behavior as this will be easier to quantify. The subject of the feedback also completes the same questionnaire. The whole process should be supervised by a manager, coach or a trainer - often external to the organization. Post-survey completion: Individual answers cannot be identified as the feedback is provided as averages from the different rating groups. Feedback is provided in a report usually created by a trusted third party and crucial areas for development are highlighted. The information helps to create a development plan. Those who give the feedback to the subject should be well-trained and they should provide the information objectively and constructively. Support should be offered to help achieve the goals set, including follow-ups. 360 degree feedback strengths : If a 360 feedback system is implemented well, it can have a number of benefits for the individual, their team and the organization: Valuable development tool: The 360 feedback system shows the subject the differences between how they see themselves and how others see them. This increases their selfawareness which means that the subject is more conscious of their personality, strengths, weakness, beliefs, motivations etc. With this information they can adjust their behavior and identify their training needs. Consequently, the subject can become more effective in their role and for the role they may be aiming for. Multiple sources: A variety of people have contributed to the feedback so the information is thought to be more valid and objective than feedback from, for example, just one manager. Also, the feedback is more likely to be accepted if multiple individuals "agreed" on the answers. Motivation: Knowing multiple individuals gave the same feedback provides the subject with the drive to develop. Company competencies: The Company’s fundamental competencies will be reinforced, not only for the subject, but also for the respondents. During the survey the respondents will be answering questions which remind them of what behaviors and values are important to the company. Customer service: Customer service can improve if customers and clients have completed the survey. Method over outcomes: The 360 feedback system assesses the method rather than the outcome. It's more important to do something the right way even if it doesn't produce the correct outcome - nothing is ever certain so by focusing on the method you give yourself the best chances of producing the preferred outcome. For example, a tight deadline is coming up but a manager tells his staff that they can only work a maximum of one hour overtime a day and no work is allowed on the weekends. The manager has made this decision because he believes that stress and over-working can increase the chances of mistakes being made and of producing poorer outcomes. Large teams or autonomous workers: This type of feedback is significant in organizations where the subject works independently or with several teams because their manager will be unable to observe everything. Safe environment: Answers are safely given as the system is confidential. A lot of the feedback would be too uncomfortable for colleagues to share and it would probably never be given if the system was not anonymous. Improves communication: Communication increases between the team because the subject understands how others perceive them which in turn assists with teamwork. Addresses personality and behavior: It helps subjects understand how their behavior affects themselves, their department and the organization. This is also useful for reducing conflict. Career development: The organization benefits by this feedback improving career development planning and execution of this. This also promotes the organization’s assurance of employee development which aids recruitment and staff retention 360 degree feedback weaknesses: If a 360 degree feedback system is implemented poorly, this can create distrust, conflict and low motivation amongst the team: Conflicting feedback: Feedback can be conflicting and there is no way to be sure which feedback is more accurate. Concentrating on negatives: Organizations sometimes make the mistake of discounting strengths and focusing completely on weaknesses. If all of the negatives were listed one after the other it would be discouraging for the employee - they may either shut off or not trust the feedback. Staff should be working on their weaknesses and continuing to play to their strengths. Importance of the leader: If the organization’s leader believes that this feedback is not important or they do not contribute then it's unlikely that other organization members will treat it seriously. When the leader thinks it's important and that this will benefit the organization, these beliefs will work down the hierarchy to persuade everyone else. Smaller organizations: 360 degree feedback can be less effective in small organizations as there are fewer sources and reduced objectivity. Vague questions: Vague questions should be avoided because it's difficult to convert the answers into measurable behavior. Questions that will give the subject actionable information should be used. Lack of customization: If the survey is not tailored to the needs of the organization it may not be useful. Accuracy: The amount of time an individual has known the subject affects the accuracy of the feedback given. Eichinger (2004) found that staff who had been at an organization long enough to get past first impressions (known the subject for 1-3 years), but not long enough to lose their objectivity (known the subject for more than 3 years), gave the most accurate ratings. Individuals who knew the subject for less than 1 year provided the second most accurate ratings. Personal feedback: Respondents may provide personal rather than constructive feedback which can upset the subject and not have much value. It must be clear to staff why they're doing the survey - that it must be constructive and not personal. Not applicable for all: It's important to keep in mind that 360 degree feedback is not useful for all organizations or for all jobs within an organization. Feedback never provided: Providing the feedback must be planned before the distribution of the surveys. Individuals cannot make changes if their feedback is not provided and if a development plan isn't formed. No follow-ups: A lack of follow-ups can make the review worthless because people may not be sticking to their development plans. Follow-ups should be carried out quarterly for two years, with the survey being re-administered every 6-12 months. Lacking anonymity: A lack of anonymity can undermine the whole process. Confidentiality must be ensured or respondents will not be truthful. Also, external coaches can be hired to assist employees through their follow-ups as staff are likely to be more comfortable speaking with external sources rather than HR. 4 .Developmental Performance Management Administrative Performance Management Essay: Performance management systems serve various functions. Those are formal devices for control, and for the formulation and communication strategy, and as such Performance management systems initially serve top level managers. But also desired performance management systems to support operational managers, to enable and motivate these managers to improve operations (Wouter 2009). The three general purposes of performance management are Strategic Performance Management Developmental Performance Management Administrative Performance Management Strategic performance management: The enhanced competition in the private sector has stimuluses’ organizations into delivering great quality, efficiency and more flexibility of services. This condition imposes supplementary demands on the organization’s information processing capabilities. In trying to achieve these strategic objectives, organizations adopt more sophisticated and comprehensive management information system. These offer top level managers with comprehensive and wide range of information about various dimensions of the organization’s operations, facilitating decision-making and performance achievement. Organizations however, differ in the extent to which they achieve strategic performance successfully (Gill 2009). A complex management information system provides managers with a wide-range of information to achieve various strategic goals. Gill (2009) distinguishes strategic goals into two, such as flexibility and cost reduction strategic goals. Organization to attempt to reduce cost and increase flexibility to be more competitive. A cost-based strategic objective focuses on internal efficiency and cost control, and thus tends to highlight current organizational structures rather than adopt new ones. A flexibility-based strategic goal focuses on coordination, diversification and decentralization within the organization. Organizations are not likely to achieve one strategic performance to the extent of excluding the other (Gill 2009). As flexibility-related strategic goals need cross-functional interaction and decentralization, it allows relationship outputs and inputs of activities to be less clear. In opposite cost-related strategic performance focus on standardization and comparability of activities and processes. Developmental Performance Management: To achieve an enabling Performance Management system, the organization followed a developmental approach to design and implement the Performance management system. This approach assumes that in an organization there is already considerable experience, and employees might be to utilize existing experience and engage staff in the design and execution of the Performance Management system (Wouter 2009). The challenge was to develop a performance management system as an enabler of performance improvement, rather than simply as a control device. The organization adopted a development approach to performance management, which was based on the following principles: 1). Experience-based, 2). Allowing experimentation, 3). Building on employees Professionalism, 4). Outside facilitators. 5). Transparency and employee ownership . Administrative Performance Management: The performance Management system for Administrative employee is design to provide a process for supervisors and workers to discuss and provide input on work accountabilities, expectations and Competencies. The process encourages ongoing training and input. At the end of the performance cycle, the supervisor and worker discuss feedback on the worker’s performance, as well as any opportunities for development (Administrative/Technical Staff Performance Management Program 2010). 5. The Purpose of Performance Management: Dissatisfaction with performance management is at an all-time high. What’s more, performance management activities such as formal goal-setting processes, mid-year and year-end reviews, and extensive rating and calibration processes cost the average organization millions of dollars annually. Yet research shows individual performance management ratings have no correlation with business unit performance. Addressing an Urgent Challenge : In response, some organizations have begun to modernize parts of their performance management approach to drive behaviors that are critical in today’s work environment, including: providing informal feedback setting clear expectations Working collaboratively. A few very high-profile companies, including Microsoft and Adobe, have publicly and significantly changed their formal performance management processes. The majority of companies, however, are making incremental changes to performance management by taking more measured steps. With so much noise in the system, and so many different strategies being held up as the example for how to transform performance management, it’s difficult to know what’s right for your organization. What should be your organization’s goal when it comes to performance management? What is the fundamental purpose of performance management? When CEB asks organizations what they use performance management for, the top answers are: making decisions about pay, promotions, or other personnel actions identifying poor performers and holding them accountable Providing documentation to defend against legal challenges. But when we ask organizations what performance management should achieve for them, the answers are much more aspirational: help employees develop and grow improve communication between employees and managers align individual work to achieving the organization’s goals help individuals and teams perform to their highest potential. The first list is decidedly administrative in nature, while the second reflects the desire for performance management to improve individual and organizational performance. However, performance management approaches that try to serve too many purposes will not serve any one purpose well. Finding the Underscoring Purpose: Different types of decisions require different processes and criteria. For example, an employee’s annual merit increase is typically based on the organization’s budget, changes in the labor market for the specific job, the employee’s salary relative to her peers’ and her performance. In contrast, a decision about who to promote is based on performance and demonstrated potential to operate successfully at the next level. 1. Enable employees to align their efforts in a manner that contributes most to the organization’s goals. 2. Equip employees with guideposts to monitor behavior and results and make adjustments in real time as needed to maximize performance. 3. Help employees identify and remove barriers to performance. There is no single best design, but all organizations will realize the value of performance management if they 1) define the objectives they are trying to achieve and 2) focus squarely on the performance management practices and, especially, the behaviors that matter most in driving improved performance. Editor’s Note: The next installment of this blog series will examine the three shifts that companies must make to significantly improve performance management in today’s dynamic, complex work environment. You can learn more about how industry leaders build and sustain high-performance cultures at The challenges of effective Performance Management: Challenge #1 - Managing the expectations of all the stakeholders with regard to the performance management process: When you consider how the various stakeholders view a performance management process, you may conclude that it is set up to fail at the outset. The team member may see it as a way to look for a pay rise, the manager as a way to deal with poor performance, and the business leader to feel assured that everyone understands and is supporting the business objectives. Indeed, the question often asked is “Is the performance appraisal process trying to do too much? the answer is a clear ‘Yes’. They cite that while the practice of bundling multiple functions of the process together may make good sense in terms of being economical with people’s time, it is a key contributor to the dismal track record of performance appraisal. A good starting point to highlight this is to revisit why the performance appraisal exists. The table below shows the multiple and sometimes conflicting needs of a performance management system – or at least what the different parties are bringing to the ‘performance management table’. Is this the case in your organization? Challenge #2 - Embedding performance management as an on-going ‘process’ rather than a one-off, annual event : New priorities, competitor activity, strategic shifts and market changes mean that role demands are rarely static. We know that an annual one to two hour discussion is not sufficient as a ‘performance management process’ – and yet this is often all that takes place with perhaps an interim meeting midway through the year. To get real value from, and engagement in, performance management activity, feedback, conversations and reviews need to be frequent and on-going – and to be part of dayto-day working life. So what can be done? We know that the formal ‘appraisal’ at the end of the year should hold no surprises; it should be a summary of what has been covered during the year, with a focus on forthcoming objectives and plans. What may be valuable are more regularly scheduled 1:1 meetings to review performance and progress against objectives throughout the year. You may like to look at introducing an online system (such as Talent Performance) to enable you to carry out interim, ‘snap shots’ throughout the year. This will support you in your efforts in encouraging performance review to sit at the center of the business with managers capable of checking easily on the progress against objectives. Challenge #3 - Monitoring the process and keeping it on track : Managers need to be able to see at a glance what action has taken place which supports the objectives being met – and what is overdue so that remedial action can be taken. There is often also the need for HR Administration to issue specific targeted reminders, to keep the process on track and deliver overview information on a regular basis. These needs point to an automated, easy-to-use and ‘always available’ system, which contains dashboards and reminders help to keep the process on-track – thereby removing the need for spreadsheets, diary dates and chasing emails. Are you able to monitor and track currently – without the need to spend time pulling this all together? Challenge #4 - Accessing and recording relevant information : Business and Line Managers, HR and Talent Managers and employees alike need to be able to access their goals – and their performance against these goals – easily. They need to be able to record relevant events as and when they happen and not store them up for the next meeting. It would be great if they can they ask for feedback from their colleagues about their progress and how they performing to build a rich, feedback-friendly culture. Are your people able to do that at the moment?