Chapter 7 - Implementing a Performance Management System

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Implementing a Performance
Management System: Overview
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Preparation
Communication Plan
Appeals Process
Training Programs
Pilot Testing
Ongoing Monitoring and
Evaluation
Preparation
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Need to gain system buyin through:
• Communication plan
regarding Performance
Management system
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Including appeals process
• Training programs for raters
• Pilot testing system
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Ongoing monitoring and
evaluation
Communication Plan answers:
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What is Performance
Management (PM)?
How does PM fit in our
strategy?
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What’s in it for me?
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How does it work?
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What are our roles and
responsibilities?
How does PM relate to other
initiatives?
Cognitive Biases that affect
communications effectiveness
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Selective exposure
Selective perception
Selective retention
To minimize effects of cognitive biases:
A. Consider employees:
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Involve employees in system
design
Show how employee needs are
met
To minimize effects of cognitive biases
(continued):
B. Emphasize the positive
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Use credible communicators
Strike first – create positive
attitude
Provide facts and conclusions
To minimize effects of cognitive biases
(continued):
C. Repeat, document, be
consistent
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Put it in writing
Use multiple channels of
communication
Say it, and then – say it again
Appeals Process
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Promote Employee buy-in to PM
system
• Amicable/Non-retaliatory
• Resolution of disagreements
Appeals Process
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Employees can question two
types of issues:
• Judgmental
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(validity of evaluation)
• Administrative
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(whether policies and procedures
were followed)
Appeals Process
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Level 1
• HR reviews facts, policies,
procedures
• HR reports to supervisor/employee
• HR attempts to negotiate
settlement
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Level 2
• Arbitrator (panel of peers and
managers) and/or
• High-level manager – final decision
Rater Training Programs
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Content Areas to include
• Information
• Identifying, Observing, Recording,
Evaluating
• How to Interact with Employees
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Choices of Training Programs to
implement
• Rater Error Training
• Frame of Reference Training
• Behavioral Observation
• Self-leadership Training
Content
A. Information - how the
system works
• Reasons for implementing the
performance management
system
• Information
the appraisal form
 system mechanics
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Content (continued)
B. Identifying, observing,
recording, and evaluating
performance
• How to identify and rank job
activities
• How to observe, record, and
measure performance
• How to minimize rating errors
Content (continued)
C. How to interact with
employees when they receive
performance information
• How to conduct an appraisal
interview
• How to train, counsel, and
coach
Choices of Training Programs
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Rater Error Training (RET)
Frame of Reference Training
(FOR)
Behavioral Observation
Training (BO)
Self-leadership Training (SL)
Rater Error Training (RET)
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Goals of Rater Error Training
(RET)
• Make raters aware of types of
rating errors
• Help raters minimize errors
• Increase rating accuracy
Intentional rating errors
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Leniency (inflation)
Severity (deflation)
Central tendency
Unintentional rating errors
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Similar to Me
Halo
Primacy
First
Impression
Contrast
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Stereotype
Negativity
Recency
Spillover
Attribution
Possible Solutions for Types of Rating
Errors
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Intentional
• Focus on motivation
• Demonstrate benefits of
providing accurate ratings
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Unintentional
• Alert raters to different errors
and their causes
Frame of Reference Training (FOR)
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Goal of FOR*
• Raters develop common frame
of reference
Observing performance
 Evaluating performance
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*Most appropriate when PM appraisal system
focuses on behaviors
Expected Results of FOR
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Raters provide consistent, more
accurate ratings
Raters help employees design
effective development plans
Behavioral Observation Training (BO)
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Goals of BO
• Minimize unintentional rating
errors
• Improve rater skills by focusing
on how raters:
Observe performance
 Store information about
performance
 Recall information about
performance
 Use information about performance
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Self-leadership Training (SL)
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Goals of SL
• Improve rater confidence in
ability to manage performance
• Enhance mental processes
• Increase self-efficacy
Pilot Testing
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Provides ability to
• Discover potential problems
• Fix them
Pilot Testing - benefits
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Gain information from potential
participants
Learn about difficulties/obstacles
Collect recommendations on how
to improve
Understand personal reactions
Get early buy-in
Get higher rate of acceptance
Implementing a Pilot Test
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Roll out test version with sample
group
• Staff and jobs generalizable to
organization
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Fully implement planned system
• All participants keep records of issues
encountered
• Do not record appraisal scores
• Collect input from all participants
Ongoing Monitoring and Evaluation
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When system is
implemented, decide:
• How to evaluate system
effectiveness
• How to measure
implementation
• How to measure results
Evaluation data to collect:
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Reactions to the system
Assessments of requirements
• Operational
• Technical
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Effectiveness of performance
ratings
Indicators to consider
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Number of individuals evaluated
Distribution of performance
ratings
Quality of information
Quality of performance discussion
meetings
System satisfaction
Cost/benefit ratio
Unit-level and organization-level
performance
Quick Review
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Preparation
Communication Plan
Appeals Process
Training Programs
Pilot Testing
Ongoing Monitoring and
Evaluation
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