Performance Management

Performance ManagementPresented byCheryl Lea ReedDepartment Head HR OperationsGuideStone Financial ResourcesApril 24, 2014

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Agenda• Introductions• Performance Management vs.

Performance Appraisal/Review• Performance Planning• Performance Appraisals/Rating• Performance Review Meeting• Performance Goal Setting• Appraisal Forms• The Performance Management Method

Introduction• HR professional for over 25 years• SPHR Senior Professional in Human

Resources designation from SHRM/HRCI• HR manager/leader for 20+ years• GBA Group Benefits Associate from ISCEBS• Undergraduate and Masters Business

Degrees in Management from Dallas Baptist University

• Multi-year volunteer for The HRSouthwest Conference, most recent role of Bookstore Director

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Performance Management vs. Performance Appraisal

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Performance management• Ongoing• Prospective• Long term• Progress steps• Planning/goal setting

Performance appraisal• One-time event• Retrospective• Short term• Correction oriented• Completing the form

A Matter of Perspectives

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Performance Management Continuum

Performance Management

Performance Review

Performance Planning

Goal Setting & Planning

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Performance Planning

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Performance Planning• The key idea is to work to develop your employees

and create an environment where each employee can be their best.

• You want to clearly define the most important outcomes needed from each staff position within the framework of your organization's strategic plan.

• The performance appraisal is a logical extension of the process which allows the supervisor and employee to appraise and discuss the accomplishment of certain standards and goals.

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Performance Planning• Allows the supervisor and employee to improve

communication and plan for higher levels of output from the employee, unit or department.

• Helps remove potential roadblocks to high performance for you and your employees.

• Meet frequently with employees to review their progress and plan together on a path for achievement.

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Performance Planning• Keep the job description up to date!• Identify the:

◦ Core responsibilities of the position. ◦ Special projects suited to the position.◦ Performance measures needed to indicate

required achievement levels during and at the end of the performance cycle.

• Ensure that employees have the tools, resources and training and development needed to carry out their responsibilities successfully.

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Performance Appraisal/Review

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Performance AppraisalsProvide the Employee:

• Essential feedback from management.• An opportunity to discuss their performance

with management.• Identification of employee training and

development needs. • A basis for compensation decisions.• The goals for increased productivity and

improved employee performance.

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Performance AppraisalsProvide the Employer:

• The opportunity to build trusting and respectful relationships with employees.

• Safeguards for the company and its employees from legal liability.

• Establishment of goals and performance expectations.• Reinforcement of company values and culture.

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Performance Appraisal Ratings

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Rating Standards• Your performance management process should

include a formal rating scale.• Most companies use a three- or five-tier rating scale.

◦ Some use "words" or "numbers" and some use a combination of both.

◦ The key is to be consistent and fair on whichever scale you use.

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Rating StandardsAt GuideStone, we use a five-tier scale with associated numerical scores:

• Outstanding — 5• Highly Effective — 4• Competent — 3• Needs Improvement — 2• Unacceptable — 1

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Rating Descriptionand Criteria Outstanding — Performance is outstanding and exceptional. Represents outstanding performance that is obvious to all.

• Consistently exceeds performance standards• Continuously contributes to the organization’s

success by adding significant value• Demonstrates a comprehensive understanding

of work; takes action to identify needs and solve problems

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Rating Descriptionand Criteria Highly Effective — Performance clearly and consistently exceeds the competent level; represents performance that is noticeably better than most.

• Meets or exceeds all performance standards• Effectively performs all aspects of job functions and

meets goals• Capably adjusts to changing workplace needs and

work requirements

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Rating Descriptionand Criteria Competent — Performance meets expectationsand is consistently good; represents good, solid, reliable performance.

• Generally meets expectations of the position• Competently performs aspects of the job function

or goal• May require Performance Improvement Plan (PIP)

to concentrate on areas of weakness• May require additional resources or training to

move above rating

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Rating Descriptionand Criteria Needs Improvement — Performance has fallen below the competent level, or this rating may apply to an employee when the need for further development is evident; represents performance requiring improvement in some areas.

• Does not adequately perform most job aspects• Performance levels are below expectations• Requires guidance in performing routine job duties• Requires PIP to address areas of weakness with

progress review dates

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Rating Descriptionand Criteria Unacceptable — Performance is unacceptable and there are consistent weaknesses in key areas; represents performance that requires immediate improvement in many areas.

• Fails to perform most aspects of the position• Performance levels are below expectations and

hurting overall performance• Requires constant guidance in performing routine

job duties• Requires PIP and training to address areas of

weakness with progress review dates

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Rating Perils• Halo/horn effect — rate employees the same on

every trait• Central tendency — lack of rating differentiation

between employees• Leniency — avoids honest ratings to avoid conflict• Recency — narrow focus on recent events• Similarity/like me — favorable rating to employees

who have similar values or interests to the rater• Constancy — rate employees via rank order

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Avoiding Other Perils• Make objective statements.• Consider the totality of the employee’s performance.• Avoid inadequate record keeping — lack of specific

examples.• Establish milestones for progress reviews.• Discuss specific performance issues and

behaviors objectively.

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Avoiding Other Perils• Consider legal impact of inflated performance ratings.• Maintain clear and open communication channels.• Specific comments should avoid any connotations

which are connected to: age, race, sex, religion, national origin, veteran or a specific disability.

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Ways to Legally DiscriminateDiscriminate on the basis of:

• Poor performance• Excessive or unexcused absenteeism• Tardiness• Violating policies or rules• Not meeting job qualifications• Poor work references• Incompetence• Poor work relationships• Misconduct

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Performance Review MeetingCreating the “Right” Environment

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Planning theReview Meeting

• Advance planning:◦ Employee’s self appraisals should be completed

two weeks prior to managerial review.◦ This allows employees to provide feedback to

their manager.◦ Be sure to gather all needed documentation.

• Plan for open dialogue:◦ This is an opportunity to review performance,

consider lessons learned, progress for the period and to establish goals and objectivesfor next period.

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Planning theReview Meeting

• Lay out a plan for performance discussions.◦ Collect and review notes, statistics, citations and

performance based examples.• Schedule sufficient time to focus on the review.• Job description/addendums should tie together with

performance review.• Prepare to discuss the full range of issues which may

arise in the performance review discussion.

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The Review Meeting• Be prepared and set the right tone.• Respect confidentiality of the review discussion when

possible. If unlimited confidentiality cannot be promised, advise employee accordingly.

• No cell phones, no emails, no text messaging, no electronic devices, no interruptions!

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The Review Meeting• Handle dissent professionally — disagreements

should be noted as a matter of record.• Don’t exhibit defensiveness — if employee

criticism is justified due to management failure or lack of resources, accept and move on to next area of review.

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The DifficultReview MeetingDifficult evaluations:

• Describe unsatisfactory performance/behavior• Cite specific observed examples:

◦ Past incidents◦ Lack of meeting goals◦ Impact on employee, team, customer,

department, et al.

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The DifficultReview Meeting

• Solicit a constructive employee action plan to resolve or ameliorate the performance failures or behavioral issue.

• Review action plan and establish milestone date(s) to review progress.

• Try to end on a positive note.

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Performance Goal Settingand Planning

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Goal Setting Standards• Define and establish specific goals/objectives for the

review period.• Create mutually agreed upon timelines of break-out

data for progress reports on goals and objectives.• Communicate changes or redirection of goals and

objectives in a timely manner.

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Goal Setting StandardsUse SMART goal criteria:

S pecificM easurableA chievableR elevantT ime-bound

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Goal Setting Standards• Align goals with the organization’s business plan.• Establish mutually agreed upon goals which add

value to the business.• Recommend and recognize behaviors that are

aligned with organizational business plans.• Establish milestone review dates.

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Appraisal Forms

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The PerformanceManagement Method

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The Performance Management Method

• Establish expectations:◦ Policy and procedure expectations◦ Job performance expectations◦ Establish specific goals

• Provide and document ongoing performance feedback:◦ Formal and informal coaching:

“Great Job!!!”◦ Formal and informal counseling:

“Need some improvement”

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The Performance Management Method

• Recognize performance management is a continuing process to assist everyone in enhancing performance and development.

• Establish milestone dates for periodic monitoring of performance objectives and progress reports in objective terms.

• Be aware of the potential for goals/objectives to be changed or re-targeted during the review period.

◦ Take corrective action when necessary.

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The Performance Management Method

• Maintain open communication channels to ensure that issues are elevated quickly and resolved expeditiously.

• Coach, assist and/or re-direct employees who request assistance and who are failing to meet standards.

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SummaryPerformance Management includes:

• Performance PLANNING• Performance REVIEW• Performance GOALS

Questions? Comments?For additional questions, please don’t hesitateto contact me:

Cheryl Lea Reed, MAM, SPHR, GBADepartment Head HR Operations, Human ResourcesGuideStone Financial Resources214-720-4783 office214-608-8174 cell214-720-4777 [email protected]

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Thank You!!!!!