Presented by Cheryl Lea Reed Department Head HR Operations GuideStone Financial Resources April 24, 2014.

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 anddevelopment 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 Standards

At 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 andbehaviors 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 Discriminate

Discriminate 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 Meeting

Difficult 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 Standards

Use 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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Summary

Performance Management includes:

• Performance PLANNING

• Performance REVIEW

• Performance GOALS

Questions? Comments?

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

Cheryl Lea Reed, MAM, SPHR, GBA

Department Head HR Operations, Human Resources

GuideStone Financial Resources

214-720-4783 office

214-608-8174 cell

214-720-4777 fax

[email protected]

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Thank You!!!!!