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One day open training event held in Toronto, Canada.
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Managing performance
by Toronto Training and HR
January 2012
Contents
3-4 Introduction to Toronto Training and HR5-6 Definition7-9 Issues to address10-12 High performance 13-15 Learning opportunities created16-19 Performance measures for teams20-24 360 degree feedback25-27 Using performance management data28-30 The balanced scorecard31-35 Performance management processes36-41 Principles of performance management42-44 Handling criticism45-47 Self-efficacy48-50 Engagement & performance management51-62 Poor performance63-68 Ways of improving performance69-70 Outstanding performers who fail71-73 Automated performance management systems74-75 Common performance rating errors76-78 Performance management and line managers79-81 Questions to ask82-83 Performance criteria84-85 Types of performance management systems86-88 Designing a performance management program89-92 Two way conversations93-94 Business execution characteristics95-97 Typical difficulties with performance management98-99 Case study100-101 Conclusion and questions
Page 3
Introduction
Page 4
Introduction to Toronto Training and HR
• Toronto Training and HR is a specialist training and human resources consultancy headed by Timothy Holden
• 10 years in banking• 10 years in training and human resources• Freelance practitioner since 2006• The core services provided by Toronto Training and HR
are:- Training event design- Training event delivery- Reducing costs- Saving time- Improving employee engagement &
morale- Services for job seekers
Page 5
Definition
Page 6
DefinitionWhat is performance management?
Page 7
Issues to address
Page 8
Issues to address 1 of 2
Line management commitment and capabilityPerformance management is difficultPoorly designed performance management processesUnitary and pluralistic frames of referenceRhetoric and realitySystem factors are ignoredAppraisal is an inconsistent process
Page 9
Issues to address 2 of 2
Performance management is wrongly focused in financial rewardsPerformance management is a means of oppressive or coercive controlLine managers and employees tend to be disenchanted about performance management
Page 10
High performance
Page 11
High performance 1 of 2
DefinitionsDimensions of a high-performance work systemFlexible work practicesHR practices
Page 33
High performance 2 of 2
HIGH-PERFORMING ORGANIZATIONSLeadershipDesignPeopleChange managementCulture and engagement
Possible interventions
Page 13
Learning opportunities created
Page 14
Learning opportunities created1 of 2
To be developed so that it becomes more challenging from the viewpoint of new tasks to be accomplished, but also that the need to acquire or extend knowledge and skills in order to carry out those tasks is revealedAgreement is reached between the managers and individuals on ‘stretch goals’ which can be achieved only if additional learning takes place
Page 15
Learning opportunities created2 of 2
Specific areas where performance must be improved are identified and the learning required to achieve these improvements is agreedDiscussions take place on career opportunities and the learning required to realise themAgreement is reached on how any learning needs can be met
Page 16
Performance measures for teams
Page 17
Performance measures for teams 1 of 3
OUTPUT/RESULT MEASURESAchievement of team goalsCustomer satisfactionQuantity of workQuality of workProcess knowledgeMaintenance of technical systems
Page 18
Performance measures for teams 2 of 3
INPUT/PROCESS MEASURESSupport of team processParticipationOral and written communicationCollaboration and collective effortConflict resolutionPlanning and goal-settingParticipative decision-making
Page 19
Performance measures for teams 3 of 3
INPUT/PROCESS MEASURESProblem-solving and analytical skillsCredibility and trustInterdependenceInterpersonal relationsAcceptance of changeAdaptability and flexibility
Page 20
360 degree feedback
Page 21
360 degree feedback 1 of 4
DefinitionUses of 360 degree feedbackRationale for 360 degree feedback
Page 22
360 degree feedback 2 of 4MOST LIKELY TO BE SUCCESSFUL WHEN:It has the active support of top management whom themselves take part in giving and receiving feedback and encourage everyone else to do the sameThere is commitment everywhere else to the process based on briefing, training and an understanding of the benefits to individuals as well as the organization
Page 23
360 degree feedback 3 of 4MOST LIKELY TO BE SUCCESSFUL WHEN:There is real determination by all concerned to use feedback data as the basis for developmentQuestionnaire items fit or reflect typical and significant aspects of behaviourItems covered in the questionnaire can be related to actual events experienced by the individualComprehensive and well-delivered communication and training programs are followed
Page 24
360 degree feedback 4 of 4MOST LIKELY TO BE SUCCESSFUL WHEN:No one feels threatened by the processFeedback questionnaires are relatively easy to completeBureaucracy is minimized
Page 25
Using performance management data
Page 26
Using performance management data
1 of 2Demonstrate an organization’s ability to raise levels of competenceAssess how long it takes for a new employee to reach optimum performanceProvide feedback on development programs in terms of increased performance or capacity to take on new rolesAssess commitment to values and missionAssess understanding of strategy and contribution
Page 27
Using performance management data
2 of 2Demonstrate the success of internal recruitment programsTrack skills levels and movement in any skills gap in the organizationIndicate how successful an organization is at achieving its objectives at individual, team and department levelMatch actual behaviour against desired behaviour
Page 28
The balanced scorecard
Page 29
The balanced scorecard 1 of 2
Financial perspectiveHow should we appear to our shareholders or stakeholders?Customer perspectiveHow should we appear to our customers?
Page 30
The balanced scorecard 2 of 2
Innovation and learning perspectiveHow will we sustain our ability to change and improve?Internal business perspectiveWhat business process or processes must we excel at?
Page 31
Performance management processes
Page 32
Performance management processes 1 of 4
Performance planningDefining expectationsObjectivesMeasuring performanceThe continuing process of performance management
Page 33
Performance management processes 2 of 4
Reviewing performanceProviding feedbackAssessing performanceRating performanceAn alternative visual approach to ratingCoachingDocumentation
Page 34
Performance management processes 3 of 4
INFORMALContinuous feedback
FORMALDesignTrainingAnnual implementationSelf-evaluationSupervisor’s evaluation
Page 35
Performance management processes 4 of 4
FORMALPerformance discussionAcknowledgementRecord keeping
Page 36
Principles of performance management
Page 37
Principles of performance management 1 of 5
It translates organizational goals into individual, team, department and divisional goalsIt helps to clarify organizational goalsIt is a continuous and evolutionary process, in which performance improves over timeIt relies on consensus and co-operation rather than control and coercion
Page 38
Principles of performance management 2 of 5
It creates a shared understanding of what is required to improve performance and how it will be achievedIt encourages self-management of individual performanceIt requires a management style that is open and honest, encouraging two-way communication between managers and employeesIt requires continuous feedback
Page 39
Principles of performance management 3 of 5
Feedback loops enable the experiences and knowledge gained on the job by individuals to modify corporate objectivesIt measures and assesses all performance against jointly agreed goalsIt should apply to all employeesIt is not primarily concerned with linking performance to financial reward
Page 40
Principles of performance management 4 of 5
APPLYING THESE PRINCIPLESA management tool which helps managers to manageDriven by organizational purpose and valuesTo obtain solutions that workOnly interested in things you can do something about and get a visible improvementFocus on changing behaviour rather than paperwork
Page 41
Principles of performance management 5 of 5
APPLYING THESE PRINCIPLESIt’s about how we manage people-it’s not a systemPerformance management is what managers do; a natural process of managementBased on accepted principles but operates flexiblySuccess depends on what the organization is and needs to be in its performance culture
Page 42
Handling criticism
Page 43
Handling criticism 1 of 2
Get reviewees to know that their frankness in identifying any shortcomings is appreciatedGet reviewees to produce their own ideas on remedial actionProvide reviewees with reassurance if they mention as aspect of their performance which falls below their own standards but you think is satisfactory
Page 44
Handling criticism 2 of 2
If reviewees do not agree that there is a problem, be firm but specific and give examplesConfine comments to weaknesses that can be put right; do not try to alter the reviewee’s personalityDo not tackle more than two weaknesses in one meeting
Page 45
Self-efficacy
Page 46
Self-efficacy 1 of 2
Self-efficacy and self-esteem
Dimensions of self-efficacyLevelStrengthGenerality
Page 47
Self-efficacy 2 of 2
SELF-EFFICACY EXPECTATIONSPerformance accomplishmentsModelled exposureVerbal persuasionPhysiological arousal
Page 48
Engagement & performance management
Page 49
Engagement & performance management 1 of 2
PrepareCommunicateEmpowerMonitorManage
Page 50
Engagement & performance management 2 of 2
When things go rightWhen things go wrongDanger signsProgressive discipline
Page 51
Poor performance
Page 52
Poor performance 1 of 11
QUESTIONS TO ASKHow can this be communicated to individuals?How do we collect factual information?Reasons for problem performanceWays of dealing with the poor performer
Page 53
Poor performance 2 of 11
REASONS FOR POOR PERFORMANCELack of ability orInsufficient motivation
Page 54
Poor performance 3 of 11
ROLE FOR MANAGERSExercising effective leadershipDeveloping systems of work that do not place impossible demands on peopleAllocating work to people that is within their capacity, subject possibly to additional trainingActing as coachesUsing performance management to deal with these issues
Page 55
Poor performance 4 of 11
STEPS TO TAKEIdentify and agree the problemEstablish the reasons for the shortfallDecide on and agree on the action requiredResource the actionMonitor and provide feedback
Page 56
Poor performance 5 of 11
FOUR DIMENSIONS INVOLVEDIt’s the employeeIt’s the supervisor/poor employee preparationIt’s the jobIt’s the workplace atmosphere
Page 57
Poor performance 6 of 11
POST-RECESSION TRAUMATIC RESIDUEScrew-upsSlackers
Page 58
Poor performance 7 of 11
Just causeThe test for cause in poor performance
Page 59
Poor performance 8 of 11
HELPING POOR PERFORMERSSay somethingGive it to them straightCheck they understandMake a planHave hopeAvoid assumptionsShare your visionBe there
Page 60
Poor performance 9 of 11
ADDRESSING POOR PERFORMANCEAssess capabilitySet clear standardsProvide feedbackDon’t delayFocus on the factsGive time to improveClarify duty to act
Page 61
Poor performance 10 of 11
ADDRESSING POOR PERFORMANCE-KEY POINTSCommunicate clear and measurable standardsMonitor performanceGive feedback for early correctionInvestigate fully and create a performance improvement planProvide sufficient time to improve and escalate to a formal process if standards are not met
Page 62
Poor performance 11 of 11
ADDRESSING POOR PERFORMANCE-KEY POINTSDismiss the employee if they cannot meet the standard required and no further adjustments can be made to help them
Page 63
Ways of improving performance
Page 64
Ways of improving performance 1 of 5
Reasons ObjectivesExternal and internalSystemsDesignMeasuresOutcomeMonitoringCosts
Page 65
Ways of improving performance 2 of 5
QUESTIONS TO ASKWhy are we assessing this person?How important is it that the assessment is highly accurate?Is the assessment compulsory?How much time and effort are we prepared to put into the process?How frequently do we want the assessment completed?
Page 66
Ways of improving performance 3 of 5
QUESTIONS TO ASKWho should do the judging?What sort of evidence is needed?Who has sight of the conclusions of the assessment?What will happen as a result of the assessment?Who is responsible for ensuring that any follow-up takes place?
Page 67
Ways of improving performance 4 of 5
PERFORMANCE IMPROVEMENT PLANSDefinitionDefine the problemDefine the competencies or behaviours where improvement is requiredEstablish the priorities of the consequencesIdentify the standards upon which performance will be measured for each of the competencies identified
Page 68
Ways of improving performance 5 of 5
PERFORMANCE IMPROVEMENT PLANSEstablish short-range and long-range goals and timetables for accomplishing change in performance/behaviourDevelop an action planEstablish periodic review dates to measure actual performance against expectationsCreate a file for each employeeDefine the consequences of failing to meet achieve standards
Page 69
Outstanding performers who fail
Page 70
Outstanding performers who fail
Engaged dreamersDisengaged starsMisaligned stars
Page 71
Automated performance
management systems
Page 72
Automated performance management systems 1 of 2What are you proposing?Why is there a need for change?What are the benefits of changing?How are we going to do it?What are the costs of changing?What are the risks involved?What resources are required?
Page 73
Automated performance management systems 2 of 2What are the alternatives?What is the financial significance?What is the plan of execution?
Page 74
Common performance rating errors
Page 75
Common performance rating errors
Lack of differentiationRecency effectHalo effectHorns effectPersonal bias and favouritismInaccurate information and preparation
Page 76
Performance management and line
managers
Page 77
Performance management and line managers 1 of 2
Leadership from the topInvolvement in design and development of processesInclusion of the ability to manage performance as a key criterion in assessing performanceUse of 360 degree feedback to assess performance abilities of line managersConduct of employee surveys and their reactions to performance management
Page 78
Performance management and line managers 2 of 2
Systematic formal training in the performance management skills managers need to useCoaching and guidance for managers to supplement formal trainingHR operating as a genuine business partner alongside line managers so they can appreciate the significance of performance management to them
Page 79
Questions to ask
Page 80
Questions to ask 1 of 2
What do we mean by ‘high performance’?Do our people understand what is expected of them in terms of performance?How can we align individual and organizational objectives?To what extent is performance management about supporting the core values of the organization?Can we identify good and poor performance?
Page 81
Questions to ask 2 of 2
Can we establish the reasons for good or not so good performance?How can we develop and motivate people to perform well?How can we do all that fairly, consistently and without discrimination?
Page 82
Performance criteria
Page 83
Performance criteria
SMART goals
Examples of effective goals:Increase revenue by 10% during the first quarterReduce office expenses by 25% as compared with the prior year actual costsDecrease employee absences from three days to one day per quarter
Page 84
Types of performance management systems
Page 85
Types of performance management systems
RankingForced distribution360 degree feedbackCompetency-basedManagement by objectivesGraphic rating scalesBehaviourally anchored rating scales
Page 86
Designing a performance
management program
Page 87
Designing a performance management program 1 of
2SHOULD ENSUREThat all employees have an opportunity to discuss their future goals/training needs with their manager to help develop to their fullest potentialThat strengths and weaknesses of all employees are recorded regularly so that the organization can make informed and accurate decisions regarding an employee’s contribution, career development, promotional opportunities, pay increases, etc.
Page 88
Designing a performance management program 2 of
2MAJOR UNDERLYING ELEMENTSSupervisor responsibilityPerformance criteriaCommunicationContinuous feedbackDevelopmental coachingLink to compensationCareer path
Page 89
Two-way conversations
Page 90
Two way conversations 1 of 3
The employee knows exactly where he or she stands in relation to achieving goals and reaching performance milestones that contribute to career development, promotions, etc.
Page 91
Two way conversations 2 of 3
The manager gains insights into the motivations of the people working for him or her through the required conversations
Page 92
Two way conversations 3 of 3
The organization retains motivated employees who understand their role and the roles of others in contributing to the overall success of the organization
Page 93
Business execution characteristics
Page 94
Business execution characteristics
Goal number dimensionAlignmentSystem usage dimensionRatings scale
Page 95
Typical difficulties with performance management
Page 96
Typical difficulties with performance
management 1 of 2Quality of one-to-one manager/employee discussionsComplaints at standardized, jargon-filled, prescriptive and overly-detailed paperworkLine managers lacking the required competence and commitment for the processEmployees having a poor understanding of the goals and point of the process
Page 97
Typical difficulties with performance
management 2 of 2Rating and pay agendas tending to dominate and irritate, driving out feedback and development planningLack of follow-up and practical action being taken between the formal reviews
Page 98
Case study
Page 99
Case study
Page 100
Conclusion & Questions
Page 101
Conclusion
SummaryVideosQuestions
