Presentation On -- Performance Management & Counseling

BY 1. Pratik K S Negi 2. Ratan singh 3. Pulkit Acharaya 4. Ravi Dhakad

Performance management

What is performance management – Performance management refers to the ongoing process of setting goals, self-assessment, manager assessment, peer-assessment (also called 360 assessment), coaching, development planning, and evaluation.

Why performance Management --- If your organization is to sustain its competitive advantage, it needs employees who are productive and willing to continually learn and adapt as their roles change along with the organization, Then managing there performance becomes a integral part.

How performance Management --- It includes taking frequent measures as work occurs and responding to small steps forward (many mini-measures (goals) with as much dedication as to final goals achieved). PM is a leading indicator of performance because it drives a system or organization toward desired future goals and provide solid management and performer steps along the way through daily behavior patterns of every employee.

Counseling In relation to performance management

What is Counseling – Counseling is a one on one, many to one. Conversation procedure by which a issue which majorly deals with the performance of a employee in the organization is discussed.

Why Counseling required --- If a performer is constantly giving good results and suddenly gives a performance that is not expected. Or an employee that has been a low profile performance has to be given such feedback sessions become integral part for there improvements.

How Counseling can be incorporated --- It’s the basic form of feedback and performance management that is useful for many organization. its considered as one of the basic tools for the performance management guidelines. But this technique cant work singlehandedly.

Preview about performance management

• Performance Management (PM) are derived from the science of behavior analysis (also known as the psychology of learning).

• The tools of performance management are Compensation, appraisal, selection, retention, competencies, and so on). Those are important elements of a well-designed workplace, but most often they are systems, processes, and procedures designed without knowledge of behavior.

• PM approach is used most often in the workplace but applies wherever people interact—schools, churches, community meetings, sports teams, health setting, governmental agencies, and even political settings

• PM processes will teach managers and supervisors—all leaders—how to bring out the best in people, including themselves, through a set of clear steps that appear easy on the surface, but do require a grounding in the principles of learning.

• A key aspect of performance management is performance measurement.

performance management the steps

Steps taken for grounding in the principles of learning { to take best out of people}

5) evaluate (continuous improvement on how to get better at bringing out the best in everyone)

2) measure (frequently)

3) feedback (post so that others can see success steps or track in other ways so that data becomes the core of decision making

4) cons equate (using systematic processes; whenever possible

1) pinpoint (again, both results and needed behaviors)

Benefits of Performance Management

Direct financial gains

Grow sales Reduce costs Stop project overruns Aligns the organization directly behind the CEO's goals Decreases the time it takes to create strategic or operational changes by communicating the changes through a new set of goals

Motivated workforce

Optimizes incentive plans to specific goals for over achievement, not just business as usual Improves employee engagement because everyone understands how they are directly contributing to the organizations high level goals Create transparency in achievement of goals High confidence in bonus payment process Professional development programs are better aligned directly to achieving business level goals

Benefits of Performance Management (contd…)

Improved management control

Flexible, responsive to management needs Displays data relationships Helps audit / comply with legislative requirements Simplifies communication of strategic goals scenario planning Provides well documented and communicated process documentation

Counseling its affect and impact on Performance Management

Employee counseling helps in following

employee moral building employee performance increased employee continues improvement and meeting criteria and range employee retention and less iteration removal of grudges and issues

Case discussion -- IS PAST PERFORMANCE A GOOD PREDICTOR OF FUTURE POTENTIAL?

A Study of the relationships between Competency Assessment through

Assessment Centers 360 Degree Tools

Assessment centre and 360 degree tool their usage

• Both used as development tools• 3 organizations are taken In all these organizations competency mapping was done and the common competencies identified using behavior indicators.• Tools were developed to assess the competencies. The competencies were assessed for each candidate by external assessors in an assessment centre.• They were also assessed by their seniors, juniors and colleagues on the same competency model on specially designed tools to measure the very competencies measured by the assessment centre.• The findings seem to be valid irrespective of the nature of competencies assessed and across various categories of employee.

Assessment Centers

• Assessment centre is a comprehensive, standardized procedure in which multiple assessment techniques such as situational exercises and job simulation (business games, discussions, reports and presentations) are used to evaluate individual employees for a variety of manpower decisions.

• An Assessment centre consists of a standardized evaluation of behavior based on multiple inputs

• Several trained observers and techniques are used.

• Judgments about behavior are made by these specially trained observers.

• At the end of the assessment the assessors get together share their data which is scientifically recorded on a set of evaluation forms

• They come to a consensus on the assessments of each candidate. Most frequently the approach has been applied to individuals being considered for selection, promotion, placement or special training

History of Assessment Centers

Assessment Centers methodology are known to have been used or at least recommended to be used by kings at least 1500 years ago in India as mentioned in Kautilya’s Arthasshastra.

Accessing a candidate on the norms of

5) interviewing and other forms of testing etc

2) performance

3) Appraisal

4) assessment by those who know him

1) observation

• After liberalization in the '90s that interest in assessment centers renewed • Many organizations have started setting up their assessment centers. natural response to the need to ensure competent people manning strategic positions.

How are Assessment Centers different now from the past?

Companies that are trying out include

6) Eicher, Cadburys ,and Castrol

2) Escorts

3) TISCO

4) Aditya Birla Group

1) RPG Group

7) Glaxo , Grindwell and Norton

8) ONGC , Mahindra and SAIL and others

2) managerial aptitude profile surveys

3) Identifying competencies in the star performer

1) job analysis

Competencies that are to be measured are determined by each organization by using methods such as

Assessment techniques

6) interviews

2) questionnaires

3) group discussions

4) role plays

1) business simulations

7) case study

8) individual presentations, etc

Assessors

External assessors

Internal assessors

Assessors training is catered by

SUN

SHL (UK)

CISCO & Motorola.

GE

Academy of HRD (Hyderabad)

AT & T

NORTEL

Assessment centers

• Organizational commitment in terms of time & resources • Involvement of line managers

• Feedback to participants

• Data security

• Complexity of Implementation

• Clear behavioural description of competencies

• Availability of assessors

• Assessor training and Validity of exercises

• Inter-rater reliability and Appropriateness of selection tools

There are certain issues with respect to assessment centre that presently persist Asian organizations, such as

Assessment Centers: Current Status

• Competition with MNCs and locals with better --Organizational design. --Technology. --More competitive people. --Rationalized organizational Structure.

• Prepare more and more middle and senior managers

• Retirement and resignation issue

• For an effective and efficient the mangers have pressure

• Increased pressure on Organizations to perform and set standards

• Competent mangers for strategic posts

Assessment Centers: Roles

Completely objective decisions

help in making employee promotions and placement decisions more scientific

contributions are more in creating a competence culture rather than mere best-fit decisions

Continuous competence building is a better aim rather than short- term objective promotion decisions.

Complexities in sensitivities in using assessment centers, the term ADCs to mean Assessment and Development Centers has become common in India

Validity and reliability

Thornton and Byham (1982) reviewed 29 studies of the validity of Acs they found more support for the assessment centre method than for the other selection methodologies

1985 Thornton and his associates processed at Colorado State University 220 validity coefficients from 50 studies using a statistical approach called Meta analysis

Meta-analysis of 50 assessment center studies, containing 107 validity coefficients, demonstrated that Acs showed strong predictive validity.

Gaugler, Rosenthal, Thornton, & Bentson, 1987). In their study, Validity coefficients show the strength of the relationship between assessment center scores and other methods for assessing performance.

The coefficients of correlation were 0.36 with Ratings of General Performance, 0.53 With Ratings of General Potential; 0.33 With Ratings on Dimension; 0.35 With Performance in Training; 0.36 With Career Advancement.

Example -- Northern Telecom

Step 1--To find candidates’ readiness for promotion into management and to diagnose their developmental needsStep 2-- DDI worked with Northern Telecom to identify relevant job dimensions and a variety of assessment techniques and provided participants with detailed reports about their performance on the dimensionsStep 3-- To validate the assessment center scores, performance criteria data were collected from participants’ peers.Step 4– The data indicated the correlations to range from 0.22 to 0.38 which was considered as high by DDI. They obtained a correlation coefficient of 0.24 * on Customer Service Orientation, 0.22 on Influence; 0.30* on Innovation, 0.34*on Job Fit a Multiple R of 0.38. on a sample of N = 61. (Source: DDI White Paper on Validity of DDI Assessment Centers, Undated)

Conclusion-- There is consistent research showing that assessment centers are unbiased in their predictions of future performance. These studies considered the candidate’s age, race, gender and found the predictions by assessment centre methodology are equally valid for all candidates

What is 360 Degree Feedback?

The (360 degree) feedback process involves collecting perceptions about a person’s behavior and the impact of that behavior from the person’s boss or bosses, direct reports, colleagues, fellow members of project teams, internal and external customers, and supplier

Other names for 360 degree feedback

multi-source feedback

multi-rater feedback

full-circle appraisal

group performance review

• 360 degree why is popular -- Bias issue. -- focus on internal and external customer. -- Emphasizing on smaller dimension of performance -- Multiple assessment is the need of the hour

Procedure

•The assessment is made on a questionnaire specially designed to measure behaviors considered as critical for performance.

•The appraisal is done anonymously by others and the assessment is collected by an external agent (consultant) or specially designated internal agent (for example the HRD Department).

• The assessment is consolidated; feedback profiles are prepared and given to the participant after a workshop or directly by his boss or the HRD department in a performance review discussion session.

• its potency as a competency identification and development tool, it is important to understand the process and its dynamics.

• Almost every Fortune 500 Company is using this in some form or the other. In this system, the candidate is assessed periodically (once in a year and some times even half yearly) by a number of assessors including his boss, immediate subordinates, colleagues, internal customers and external customers.

Additional advantages offered by 360 Assessments are:

• It is more objective than a one person assessment of traits and qualities.

• It adds objectivity and supplements the traditional appraisal system.

• It provides normally more acceptable feedback to employee.

• It can serve all the purposes served by the traditional appraisal system like identifying the developmental needs, reward management, performance development etc.

• It helps focus on internal customer satisfaction.

• It has the potential of pointing out the supervisory biases in the traditional appraisal systems.

• It is a good tool for enhancing customer service and quality of inputs and service to internal customers. • It provides scope for the candidate to get multiple inputs to improve his role, performance, styles and ideas and enhances the acceptability of the individual. • It is more participative and enhances the quality of HR decisions

Impact of 360 degree feedback – example (TVRLS)

•The line of inquiry was based on the aspect of gathering information regarding the impact of the workshop on people, changes observed as a result of the workshop, actions adopted towards change, further support required if any

• Study covered 32 managers who had participated in the workshop. They were assessed through personal interviews and discussions on 1 to 1 basis

TVRLS reports says

Two months after the workshop, participants were still carrying the report and workbook within easy reach for reference and reinforcement purposes

32 managers interviewed, 24 of them had shared the data and report including the action plans with respective bosses, peers and subordinates.

The CEO of a multinational company, after going through the workshop, emailed the results of his profile and feedback to all employees

A good number of the 32 managers had initiated the practice of maintaining diaries to record their action plans and activities done during the day or week towards the plans

some Observations on 360 Degree Feedback and its Effectiveness

•"360 degree feedback won’t fix a system that doesn’t work”

•Professionally developed assessment tools identify skills sets or competencies required for success in a specific role

• the exercise of receiving 360 degree feedback will be academic, at best—and frustrating and demoralizing, at worst

• it is first used as a developmental tool for several years, if the practice is to be effective

• Another factor in 360 readiness's is whether those who will be rated see the process as constructive, not attacking--that is, is the organization using the 360 process to help people improve

• in some cases, choose to play a different role in the organization) or is it using the process to justify removing people or otherwise making punitive actions?

Purpose of This Study

While a lot is written about 360 Degree Feedback and ADCs there is very little empirical studies in India on the effectiveness of both these tools and the extent to which they have predictive ability

360 DF deals with past performance and ADCs with future potential

360 Degree feedback is limited by the context in which the person is operating. In ADC the expert assessors are supposed to create simulated situations where the real competencies of the candidate get tested

Hence some of the organizations started using ADCs for promotions and development of potential for future jobs and 360 DF for development of leadership potential on the current job.

The hypothesis may be that both the 360 DF and ADCs measure the same thing and should be correlated irrespective of contexts

Methodology

Analysis presented here is from three organizations that were interested in conducting ----- Assessment and Development Centers.

All three organizations wanted the ADCs as development tools. They felt the need to assess their senior and middle level managers for developing their future potential as leaders and managers to handle higher level and more complex jobs

decided to supplement the ADC data with the 360 degree feedback data

While the ADC measured the extent to which they would demonstrate or exhibit competencies needed to perform some of the senior level jobs

The respective organizations have conducted their competency mapping exercises and a list of competencies needed for the effective performance of the roles for which the candidates are being assessed.

These organizations were in the business of designing, manufacturing, assembling, marketing various electronic components for engines, automobiles and other industries.

The ADC exercises were designed on the basis of competency mapping and vetting exercise by the consultants.

The role incumbents were interviewed and the competency list is validated by the role holders and their seniors

This assessment tools are designed based on the validated framework. The critical incidents are also collected during the interviews so as to design the tools using those critical incident

Apart from that certain hypothetical situations are used in the exercises to give a standard situation to all the participants Working with hypothetical standard operating procedures (SOP), for instance, allows all candidates to have the same advantage.

Allowing the same starting point, same SOPs, puts each candidate at even starting point. Using hypothetical situation brings in that of fairness and equity.

Validity and reliability questioned

The tools used for the ADCs were among the followings: 1. Leaderless Group Discussion (LGD) 2. Business or Vision Presentation 3. In-Baskets 4. Business/Management Game 5. BBII (Biographic Behavior Incident Interview) 6. Case Analysis 7. Psychometric Tests

Assessment output

The assessment was done over a period of one or two days followed by individual feedback by the assessorActual exercises only the behavior is recorded and no final interpretations are arrived.Once all the exercises are over, each of the assessors is required to classify the behavior observed into dimensions as per the predefined list of competenciesTaking the participant’s performance in all the exercises and interview reports, the participant is then rated on the competency using five point scale and reason for itOnce the rating has been given the assessors discuss the ratings. Quality and job analysis is undertaken then

For the same 3 organizations have been compared from diff area’s On the parameters of ADC and 360 degree

Conclusion- for company1 (Hydraulic Components Organization (HCO):

1. All the coefficients of correlation between 360 Degree measures and the ADC measures are positive for each of the seven competencies measured. They ranged from 0.11 (on interpersonal skills and team work) to 0.29 (strategic thinking).

2. The 360 measures are moderately related with ADC measures only on customer orientation and none of the others are even to the level of 0.4.

3. Measures obtained from BEI, In-basket, presentations and LGD seems to be predictive of the overall scores on ADC as the relationships are moderately high to high.

4. Strategic thinking and communication skills seem to be the two variables on which the competencies are more predictable across various tools as compared to other competencies.

5. Overall the results of this organization show that past performance as measured by 360.DF is weak predictor of the future potential in this organization

Conclusion- (An IT Organization)

1. Most of the correlation coefficients between the 360 measures and ADC

measures are negative and a few of them are high. Considering any ‘r’ above 0.5 to be high, of the 39 coefficients of “r” reported 28 are negative and 5 are high.

2. Like in the case of Organization 1 the coefficients of r between the overall ADC scores and the measures of LGD, Business Game, Presentations, and BEI are high indicating a high degree of internal consistency between the measures using various tools generated by the ADC.

3. No single dimension of competence emerged as more predictable than the other

as almost all of them showed similar trends in correlations.

4. The results are surprising. The only reason that could be hypothesized is that in this IT organization overt behavior as shown by the 360 DF is not a good predictor of the covert potential or behavior as assessed by external experts

Conclusion- ( HEO- Heavy Equipment Organization):

1. The coefficients of correlations between 360 measures and ADC measures are low and varied.

2. The measures of competencies generated from various tools of ADC seem to be more related than the measures of ADC and the 360 data.

3. There is no consistency with which any of the variables or competencies can be predicted.

CONCLUSIONS DRAFTED OUT

The 3 cases above points out that there is little correlation between the job performance as assessed by the 360 Feedback and Assessment center scores. 360 feedback is a reflection of an individual’s performance on the job and ADC score is the assessment by external consultantsTherefore the case generally recommend that one should consider a combination of feedbacks like 360DF,Psychometric Tests etc. instead of relying fully on the ADC score alone

Possibilities that rooted up from the case

Possibility 1Internal assessors are biased and the 360 Data are impressionistic and people who manage their impressions well hide their true potential or lack of it and people who arecompetent may not be bale to manage their impressions well. As a result the 360 dataare not as reliable and objective. In fact several 360 experts maintain 360 degreefeedback as essentially subjective phenomenon. The more objective assessmentsare from the ADCs where the candidate’s performance is assessed by externalexperts and on a variety of methods

Possibility 1360feedback data are more reliable and go beyond impression management. Theyare real and objective as they are data generated from observing the individualacross a long period of time and by many internal assessors who understandthe business context. Where as the ADC data are based on a series of classroomexercise and games devoid of actual reality. They are at best simulatedsettings and though they use external assessors, a mere observation for two daysby a group of external observers in contexts created by them cannot substitutethe behavior data generated on the job by the candidate across several months.Hence the low correlations between them are expected. The ADC data thereforeare indicators in certain setting and used with a high degree of precaution.

Possibility 3: The third possibility is that the coefficients of correlation high or low observed are more due to the methodology used and hence cannot be treated as devoid of errors in measurement. Hence both are to be rejected. More serious validation studies are required to validate both the 360 degree feedback and the ADCs. Until then they should be used only as development tools and the candidates as well as organizations should approach them with caution. After all the classical studies of ADCs indicated the predictive validity of the assessment centers to be low.

Possibility 4: 360 Degree assessment is measure of the past performance though on the same competencies. It is limited by the context. While the ADC data are futuristic and predictors of future performance on tasks that are heavily weighed by the competencies being assessed. Hence it is not correct to expect a high degree relationship between the past performance measures and future potential measures. If they correlate well there is no need for ADCs to assess future potential. Since they are not correlated well and internal consistency shown by various methods used in the ADCs is high the lesson to be learnt is not to use 360 for succession planning and promotions but to bank on ADCs.

Thank you

BY 1. Pratik K S Negi 2. Ratan singh 3. Pulkit Acharaya 4. Ravi Dhakad