1
State Employees’ Credit Union
Human Resource Audit –
Performance Management System
Laura Beatty
Meredith Frisbie
Shelby Westbrook
Zach Smith
North Carolina State University – MIE436
2
Presentation Overview
•
•
•
•
Orientation to SECU
What is Performance Management (PM)?
PM conducted at SECU
How PM is being handled
▫ Strengths
▫ Weaknesses
• Recommendations for improving PM
▫ Areas in need of improvement
▫ How to improve deficient PM areas
▫ Justification/Outcome of
improvements
• Conclusion
• Questions
3
Orientation to SECU
• Non-profit financial cooperative
• Founded June 4, 1937
• "People Helping People in North Carolina."
• Limited Membership with approx. 1.5 million members.
• Promote thrift among its members by affording them an
opportunity to accumulate their savings.
• Creates a source of credit at a fair and reasonable rate of interest
for members.
• Provides an opportunity for members to use and control their
money to improve their economic and social condition.
• 4,200 employees , 225 branches, and more than 1,000 ATMs
• Exponential growth rates
(State Employees' Credit
Union, 2009)
4
What is Performance Management?
• Performance
Management is the
continuous process of
identifying, measuring, and
developing the performance
of individuals and/or teams,
with the goal of aligning
performance with the
strategic goals of the
organization. (Aguinis, 2009, p. 2).
5
Current PM Practices at SECU
• HR/Personnel Department
▫ Centralized internally
• Manages PM through PMS developed in
2001
▫ Yearly employee self-appraisals
▫ Yearly employee evaluations by supervisor
▫ Progressive discipline policy
▫ Limited topic grievance process
▫ Performance improvement through training
▫ Documentation of PM actions and events
(Woodson, 2009)
Section IA
6
PM’s Contribution to Strategic Goals
• Facilitation of strategic goals
▫ Yearly online evaluations
• Attraction
▫ Education decides salary
▫ Scholarships
• Retention
▫ Progressive discipline policy
 Additional evaluations
• Motivation
▫ Modules
 Lead to promotions
Section IB
7
PM Consistency with Other HR Functions
• Training and Development (Aguinis, 2009)
▫ Expectations
▫ Ongoing process
• Compensation (Aguinis, 2009)
▫ Wages - based on education and experience
▫ Merit pay – Merit pay given in July by board decision
• Recruiting and Selection (Aguinis, 2009)
▫ Advertised by the branch
▫ Posted internally and externally
(Woodson, 2009)
Section IC
8
Evaluation of PM Practices by SECU
• Does not have distinctive PM evaluation
system
• PMS not working properly
Section ID
9
Strengths
Yearly online evaluations (Steingold, 2009)
▫ Easy to use/store/transfer
▫ Legal protection
▫ Promotion
The Form (State Employees' Credit Union, 2009)
▫ Graphic Rating Scale
▫ Short answer section-open-ended questions
▫ Free to ask for feedback at anytime
Section II
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Evaluation Form
EMPLOYEE EVALUATION FORM
EMPLOYEE NAME (Last, First, MI)
EMPLOYEE #
POSITION TITLE Designate precisely (ie. Senior Teller, Loan Officer, MSR. etc.)
POSITION STATUS
EXEMPT
SUPERVISOR
BRANCH/DEPARTMENT
NON-EXEMPT
DATE OF EMPLOYMENT
EVALUATION COMPLETED BY
EMPLOYEE
DATE OF EVALUATION
SUPERVISOR
DATE OF LAST EVALUATION
COMPLETE EACH SECTION THOROUGHLY AND USE ADDITIONAL PAPER IF NEEDED.
1. Note areas of professional development since your last evaluation (training/education).
2. Describe your strengths as they relate to your job duties and responsibilities.
3. Identify areas you could improve to enhance your effectiveness.
4. What would you like to see changed within your specific work area and/or the Credit Union?
5. What suggestions or recommendations do you have for implementing these changes?
6. What are your short-term and/or long-term career goals?
7. List any goals you have achieved or contributions you have made since your last evaluation.
SIGNATURES:
X_________________________________________
VP
DATE
X_____________________________________
EMPLOYEE
DATE
X_________________________________________
SVP
DATE
X_____________________________________
SUPERVISOR
DATE
X_________________________________________
PRESIDENT – SR. EXECUTIVE VP
DATE
SECU # 442 A (1/01)
(State Employees' Credit
Union, 2009)
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Weaknesses
• 1) Lack of incorporation of
organization’s mission, vision, and
goals into their PMS (Aguinis, 2009)
• 2) Absence of coaching and feedback
in the workplace (Aguinis, 2009)
• 3) Facilitation of performance
appraisal rather than a PM (Aguinis,
2009)
• 4) Outdated PM practices (Staneart, 2009)
Section II
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Mission
“People helping people in North Carolina”
(State Employees' Credit Union, 2009)
▫ Geared towards members, not employees
▫ No postings of statement around office
▫ Needs to include
 why the organization exists
 the scope of the organization’s activities
 what products and/or services are being offered
(Aguinis, 2009)
Section III
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Vision
• “To challenge State Employees’ Credit Union to
provide opportunities for members to improve their
economic and social condition; to encourage thrift
among members; to create sources of credit at fair
and reasonable rates of interest; and to broaden
the economic awareness of members through
planned programs of consumer protection”
(State Employees' Credit Union, 2009)
▫ Needs to be more future-focused, motivating, and
inspiring to employees
Section III
14
Coaching/Feedback Implementation
(Aguinis, 2009)
• 1) Set developmental goals
• 2) Identify resources and strategies
• 3) Implement strategies
• 4) Observation and documentation
• 5) Feedback
Section III
15
Performance Appraisal
• Performance Appraisal (Aguinis, 2009)
▫ Gives a logical description of an employees strengths and
weaknesses
• PMS include six steps:
▫ 1) prerequisites
▫ 2) performance planning
▫ 3) performance execution
▫ 4) performance assessment
▫ 5) performance review
▫ 6) performance renewal and re-contracting
• Ongoing
Section III
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Outdated PM Practices
• Evident by low validity in PM
Process (Staneart, 2009)
▫ Results from typical arbitrary and
subjective approaches
▫ Is the practice related back to the job
performed?
▫ i.e. coaching, feedback, appraisals
• Contaminated Material and
Information (Staneart, 2009)
▫ SECU is currently using invalid metrics
in measuring performance due to
dynamic job nature. (Woodson, 2009)
“All businesses and
organizations alike, in
order to operate an ideal
PMS, require a constant
update and
improvement in the way
they apply certain PM
practices, i.e..
appraisals and
feedback.”
-Doug Staneart,
CEO of the Leaders
Institute
Section III
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Implementing New PM System (Mulvey, 2009)
• Preparation and Implementation of New PMS
▫ Achieve system buy-in by employees
• Communication Plan
▫ Communicate important factors of implementing a
new PMS in an organization and its benefits
▫ Avoid biases, consider employees, promote positive,
& document
• Appeals Process
▫ Create tiers in the process for advancement of
unresolved issues
• Training Programs
▫ Rater Training, RET, FOR, BO, SL
• Pilot Testing
▫ Discover problem, fix problems, gain input, sample
size
• Continuous Monitoring and Evaluation
▫ System satisfaction, cost/benefit, performance level
▫ Continuous update of PM practices
Section III
18
Questions/Comments
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References
Aguinis, Herman. Performance Management Second Edition. Upper Saddle River, New Jersey:
Pearson Prentice Hall, 2009.
Cross-Training Boosts Efficiency. CU360, Credit Union National Association, Inc. 7/27/2009,
Vol. 35 Issue 13, p6-7, 2p; (AN 43374399), Business Source Premier.
Holley, Don. How to retain good staff. Manufacturers' Monthly, Sep2009, p17-17, 1/4p; (AN
44327636), Business Source Premier.
Noe, R. A., Hollenbeck, J. R., & Gerhart, B. (2007). Assessing Performance and Developing
Employees. In J. Weimeister (Ed.), Fundamentals of Human Resource
Management (pp.303-304). New York, NY: McGraw-Hill/Irwin.
Staneart, D. (2009). Is Your Performance Review System Outdated? . Retrieved November 14,
2009, from Business Know-How:
http://www.businessknowhow.com/manage/perfappr.htm
Steingold, F. S. (2009). Personnel Practices. In A. Schroeder (Ed.), The Employer's Legal
Handbook (pp. 47-50). Berkeley, CA: Nolo.
Woodson, Bob. Senior Vice President - Personnel and Human Resources Zachary Smith. 20
September 2009.