MSc/ PG Diploma in Construction Management
Change Management and People Performance
By Professor Simon Burtonshaw-Gunn – licensed under the Creative Commons Attribution – NonCommercial – Share Alike License
http://creativecommons.org/licenses/by-nc-sa/2.5/
MSc/ PG Diploma in Construction Management
School of the Built Environment
MSc Construction Management
People Management in the Built Environment
Presentation 2: Performance Management
Professor Simon Burtonshaw-Gunn
MSc/ PG Diploma in Construction Management
Presentation content . . .
Change and Performance Management
Presentation 2: Performance Management
• Performance Management and the organisation
• Life cycle of People Management
• Commitment strategies
• Motivation
• Strategic HR Planning
• Performance Appraisal Process
• Performance Management Cycle
• Developing people – training, coaching
• Grievance and Disciplinary process
MSc/ PG Diploma in Construction Management
Performance Management
Performance Management is . ..
“a means of getting better results by understanding and managing
performance within an agreed framework of planned goals, standards
and competence requirements. It is a process to establish a shared
understanding about what is to be achieved, and an approach to
managing and developing people so that it will be achieved.”
Michael Armstrong, Handbook of Management Practice
MSc/ PG Diploma in Construction Management
Performance Management
Performance Management is controlling the individual employees and
that it is developed from the organisation’s business plan into individual
performance targets.
Business
Strategy
Internal
Environment
External
Environment
HR
Strategy
MSc/ PG Diploma in Construction Management
Performance Management
Corporate Strategy
Marketing
Business Strategy
Quality
Product Strategy
Design and
process
engineering
Purchasing and
Supply
Finance
Human
Resources
Management
Manufacturing
Relationship between external facing business strategies and
internally focused product strategy.
From ‘The Essential Management Toolbox: Tools, Models and Notes for Managers and
Consultants.’ S. A. Burtonshaw-Gunn, 2008
MSc/ PG Diploma in Construction Management
Performance Management
Another view . . .
“Performance management is potentially the area of human resource
management which can make the most significant contribution to
organisational performance.
Performance management is a process which is based on a number
of activities; as such it is designed to improve strategic focus and
organisational effectiveness through continuously securing
improvements of individuals and teams.”
From Philpott and Sheppard, Managing for improved performance, 1994
MSc/ PG Diploma in Construction Management
Performance Management
Question . . . .
What do you think Performance Management involves ???
MSc/ PG Diploma in Construction Management
Performance Management
It is likely to involve:
•
Corporate objective setting
•
Performance assessment
•
Identification of potential
•
Training and career development
•
Succession Planning
•
Reward systems
MSc/ PG Diploma in Construction Management
Performance Management
A typical process of performance management process is to . . . .
• Ensure clarity on overall
goals
• Make task lists
independently
• Discuss and agree on a
mutually acceptable list
• Clarify objective of each
task
• Describe: Action - Result Standards
• Ensure understanding and
agreement
Agreeing
objectives
Training
Coaching
Performance
Management cycle
Strengths
Areas of development
Agree action plans
Results discussed
Performance
determined
MSc/ PG Diploma in Construction Management
Performance Management
The Life Cycle of People Management
Motivate
Recruitment
HR Planning
Control
and
and
Selection
Develop
Exit
MSc/ PG Diploma in Construction Management
Performance Management
Commitment Strategies
• Motivation
• Leadership
• Team development
MSc/ PG Diploma in Construction Management
Performance Management
Motivation
The feeling of commitment to doing
something well, and being prepared to put
energy and effort into it because of
personal interest
Motivated employees delight customers
and enhance creativity
See Motivation Theories handout
MSc/ PG Diploma in Construction Management
Performance Management
What affects Motivation?
•
•
•
•
•
Management style
Terms and Conditions
Involvement
Job Content
Personal Development
See Exercises in Motivation
MSc/ PG Diploma in Construction Management
Performance Management
Strategic Human Resource Planning
• The purpose
• getting the right people with the right skills at the right
time
• The process
• forecasting needs
• assessing current reality
• gap management
Handout on Strategic HRM
MSc/ PG Diploma in Construction Management
Performance Management
A typical process of an appraisal systems is shown below . . . .
Objective Setting
Objective
setting
The
Individual
Recognition
=
=
Performance
monitoring
Resources
=
Feedback
=
Individual clear when to perform
and what is expected
Performance targets, measures and
standards exists
Identify which objectives are
essential and which are desirable
Objectives need to be Defined,
agreed and written and be ‘SMART
(See next slide)
MSc/ PG Diploma in Construction Management
Performance Management
‘SMART’ . . .
Specific – clear about what is to be achieved
Measurable – must state how success will be measured
Achievable – ideally wit the person who will carry out the objective,
and with anyone who will be affected by the results
Realistic – achievable within the constraints of the situation and in
alignment with other objectives
Time-bound – a target set for achieving the objective
(Or ‘SMARTT’ with the addition T for ‘Traceable’ covering provision of
evidence that the objective has been completed)
MSc/ PG Diploma in Construction Management
Performance Management
Objective
setting
The Individual
The
Individual
Recognition
• Capability to perform as desired
- skills and knowledge
• Willing to perform
Performance
monitoring
Resources
Feedback
MSc/ PG Diploma in Construction Management
Performance Management
Objective
setting
Resources
The
Individual
Recognition
• People
• Equipment, materials
• Information
Performance
monitoring
Resources
Feedback
• Plans
• Money
MSc/ PG Diploma in Construction Management
Performance Management
Feedback
Objective
setting
The
Individual
Recognition
• Relevant, immediate and
frequent
• Constructive, balanced and
specific
Performance
monitoring
Resources
Feedback
• Focused on critical success
factors of task behaviour
MSc/ PG Diploma in Construction Management
Performance Management
Objective
setting
Performance monitoring
The
Individual
Recognition
• Interim reviews of performance
• Identify interim targets
Performance
monitoring
Resources
Feedback
• Take action to remedy poor
performance as necessary
MSc/ PG Diploma in Construction Management
Performance Management
Objective
setting
Recognition
The
Individual
Recognition
Performance
monitoring
Resources
Feedback
• Positive if performance is as
expected
• Could be linked to performance
related pay or bonus
• If performance is not up to
standard identify problem and
communicate need for
improvement
MSc/ PG Diploma in Construction Management
Performance Management
Does your company undertake annual staff appraisals?
Why?
How?
Does it do it well?
Could it do it better?
MSc/ PG Diploma in Construction Management
Performance Management Cycle
PERFORMANCE
PLANNING
Standards of performance
Setting / agreeing objectives
PERFORMANCE
APPRAISAL
Formal assessment
Past performance
Future objectives
PERFORMANCE
DEVELOPMENT
Assessing current / future needs
Skills
Knowledge
Attitudes (behaviours)
PERFORMANCE
COACHING
Specific Issues
e.g. shortfall in performance
developing performance
PERFORMANCE
REVIEW
Interim reviews
Informal discussions
Feedback
MSc/ PG Diploma in Construction Management
Performance Management
Please discuss . . .
• the advantages to employees of introducing such a system
• the disadvantages to the individual of not having an appraisal
system
• the disadvantages to the company of not having an appraisal
system
See Performance Appraisal Handout
MSc/ PG Diploma in Construction Management
Performance Management
Wider view of Performance Management:
To provide a fully effective job performance, people need to be
effective in three areas:
• Knowledge (What we know),
• Skills (What we can do) and
• Competencies (How we go about it).
These three areas can be applied to a number of competencies within
an organization such as customer focus, teamworking, innovation and
problem solving, communications etc. These competencies are linked
into individual performance as shown next:
MSc/ PG Diploma in Construction Management
Performance Management
Recruitment
Training
Promotion
Development –
Individual and
Team
Succession Planning
Performance
Competencies
Career Planning
Retirement
Redeployment
Resignation
Reward and
Recognition
Performance
Management
MSc/ PG Diploma in Construction Management
Performance Management
Developing People
• Training … input of knowledge
• Coaching … job performance dialogue
• Mentoring … life / career planning
MSc/ PG Diploma in Construction Management
Performance Management
Training Options
• Public programmes
• On the job
• In – house customised
• Supported individual learning
• distance learning
• supported learning
MSc/ PG Diploma in Construction Management
Performance Management
Coaching – Coactive Coaching
Both parties as active collaborators in the coaching process
• Coachee resourceful and capable of finding answers
• Agenda comes from coachee and is key focus of relationship
• Coaching addresses coachee as a whole person
• Coaching relationship is a ‘designed alliance
Focus is on specific coaching skills and techniques rather than content or
structure of a coaching session
MSc/ PG Diploma in Construction Management
Performance Management
Mission
Linking Strategies with
Performance . . .
Strategies
Values
Objectives
Performance
Indicators and
Standards
Critical Success
Factors
Identification of
personnel
From Lawrie Philpott and
Louise Shepherd in
Strategies for Human
Resource Management,
Michael Armstrong (Ed),
1992. Kogan Page Limited
Performance
Review
Succession
Planning
Performance
Improvement
Programmes
Total Reward
System
Better Performance
MSc/ PG Diploma in Construction Management
Performance Management
The leadership task as part of Performance Management involves
undertaking three inter-related activities, in John Adair's ActionCentred Leadership model this is represented by three circles
representing Adair's identified three core management responsibilities:
• achieving the task;
• building and managing the team or group
and finally,
• managing the work and development of individuals.
MSc/ PG Diploma in Construction Management
Performance Management
Maximizing the overlap between these increases leadership efficiency
and performance.
Individual
Team
Task
Performance management is not just about the individual - its about
creating and managing the balance
MSc/ PG Diploma in Construction Management
Performance Management
Whilst the team leader will have to assign tasks, build the team and
play a role in the development of staff . . . .
Individual
Team
Task
MSc/ PG Diploma in Construction Management
Performance Management
It should also be noted that high-performing teams exhibit the same
regard for task, team-working and self and group development
opportunities.
Any examples . . .
MSc/ PG Diploma in Construction Management
Performance Management
One example . . .
MSc/ PG Diploma in Construction Management
Performance Management
What happens if it all goes wrong??
A look at Discipline and Grievance Procedures
MSc/ PG Diploma in Construction Management
Performance Management
Discipline
• Have a procedure
• Apply it systematically
• Be consistent
• Beware the law
MSc/ PG Diploma in Construction Management
Performance Management
Grievance Procedures
STEP ONE
Employee informs employer of grievance in writing
STEP TWO
Employer invites employee to discuss grievance
Notifies employee of decision and right to appeal
STEP THREE
Employee informs employer that wishes to appeal
Employer invites to meeting informs employee of final decision
See Handout: ACAS Disciplinary and Grievance Procedures and Disciplinary Actions Exercise
MSc/ PG Diploma in Construction Management
Performance Management
High Performance through teams
MSc/ PG Diploma in Construction Management
Performance Management
High Performance through teams
Where Performance means:
Achieving business targets
+
(Achieving individual objectives
+
Using appropriate behaviours)
MSc/ PG Diploma in Construction Management
Performance Management
High Performance through teams
Where Performance means:
Achieving business targets
+
(Achieving individual objectives
+
Using appropriate behaviours)
What is the most important part of this statement?
MSc/ PG Diploma in Construction Management
Performance Management
High Performance through teams
Where Performance means:
Achieving business targets
+
(Achieving individual objectives
+
Using appropriate behaviours)
Here is a clue
MSc/ PG Diploma in Construction Management
School of the Built Environment
MSc Construction Management
People Management in the Built Environment
Presentation 2: Performance Management
Professor Simon Burtonshaw-Gunn