Module 2 - Conduct Mid and End Cycle Performance Review for Supervisors

1. Module 2 - Conduct Mid and End Cycle Performance Review for Supervisors Performance, Development and Rewards Training

2. Module 2 “Conduct Mid and End Cycle Performance Review” focuses on the course objectives outlined below At the end of this session participants will be able to: • Understand the purpose of PDR end and mid cycle review meetings • Effectively prepare to conduct a mid and end cycle review • Apply performance ratings to performance objectives based on evidence and information provided in examples • Answer questions about performance ratings and the moderation process • Explain the resolution procedure • Discuss the importance of the final rating, in particular its linkage to rewards • State what needs to happen when communicating results

3. Before we begin, let’s discuss and explore a few concepts to do with performance reviews Discussion What is the purpose of mid-cycle and end-cycle reviews? What are some guiding principles for reviewing performance?

4. This module will focus on the Mid and End Cycle review phases, highlighted in red PDR Process Develop Performance Plan • Draft Performance and Development Objectives • Agree Performance Plan – discussion • Supervisor Sign-off Conduct Mid Cycle Review • Employee Performance Plan Review • Supervisor Performance Plan Review • Discussion and updates • Supervisor Sign-off Feb -Mar –Apr 09 Conduct End Cycle Review • Employee Performance Review (and rating) • Supervisor Performance Review (and rating) • Performance Discussion • Performance Review Sign-off Aug-Sept-Oct 09 Conduct Moderation Process • Faculty/Business Unit Moderation Process • Higher Ed and Corporate Moderation Process • Incentive Modelling • Final Performance Rating Sign-off Jan – Feb 10 Performance Bonus Payments May pay run Mar 10

5. The Mid-Cycle Review checks progress against agreed objectives and planned development for an employee Mid-Cycle Review Process Does Direct Report agree with progress assessment? NO Resolution Process Review Performance Plan Collect Evidence Document Performance and Development progress Update Performance Plan based on discussion and send to Supervisor Direct Report YES NO Does performance plan require updating? Discuss progress with Direct Report Receive Performance Plan and sign of Mid-Cycle Review YES Review Direct Report Performance and Development Plan Assess progress towards performance objectives and development plan Schedule Performance and Development Review Meeting Supervisor Contact HR to unlock plan Enter mid-cycle performance comments Notification trigger to all employees of PDR review cycle HR

6. Preparation on the part of the Supervisor and the Direct Report is the key to successful performance reviews Discussion • What information do you need to bring to mid and end cycle review? • What are you trying to achieve? • What do you think your Direct Reports need to do prior to the meeting?

7. There are a few things we think are really important to conducting a good performance review with your Direct Reports

8. There are a few things we think are really important to conducting a good performance review with your Direct Reports (Cont’d)

9. It is important that you get an opportunity to practice doing a performance review Scenarios • In groups of two, turn to Appendix A of your guidelines and choose a sample plan and discuss how to conduct a mid-cycle review based on that plan. • You will have 20 minutes to complete it as well as you can • Nominate a spokesperson who will present your answers to the group

10. The End-Cycle Review Process is very similar, with the addition of a rating for the year End-Cycle Review Process Does Direct Report agree with performance review? NO Resolution Process Review Performance Plan Collect Evidence Self-assess performance against objectives and assign rating Direct Report Discuss performance, ratings and completion of development activities with Direct Report YES Update End-Cycle Review comments and ratings Review Direct Report Performance and Development Plan Assess progress towards performance objectives and development plan Assign rating against each objective using cited evidence Assess satisfactory completion of development plan Supervisor Schedule Performance and Development Review Meeting Moderation Process Notification trigger to all employees of PDR review cycle HR

11. It is important that performance ratings are determined in line with Swinburne guidelines Rating Performance • Employees will self assess their performance and assign a rating to each of their performance objectives • Supervisors will meet with their employees to discuss the performance year and manage employee expectations as appropriate – this may require re-rating of performance objectives • Evidence of performance measures will be a key input to assessing employee performance • Supervisors will assign a performance rating to individuals from a 1 to 5 rating scale against each performance objective using PDR guidelines to assess performance • The ePDR online tool will calculate a final performance rating by multiplying each performance rating by the weighting percentage and adding each score • Performance Ratings are used to determine financial rewards

12. The table below defines the Performance Ratings

13. Calculating an end-cycle performance rating • Turn to page 38 of your academic guidelines • You will see a copy of a performance plan that has been through the end-cycle review and ratings have been assigned • Here is the calculation of how those ratings are converted into an overall Performance Rating • Objective 1 4 x 10% = 0.4 • Objective 2 4 x 10% = 0.4 • Objective 3 4 X 25% = 1.0 • Objective 4 3 x 15% = 0.45 • Objective 5 4 x 20% = 0.8 • Objective 6 5 x 10% = 0.5 • Objective 7 4 x 15% = 0.6 • Overall Performance Rating 4.15

14. Now that you understand how a performance review should be conducted, let’s discuss an important topic… Discussion What are some things that may go wrong during a performance review and how might you handle these situations?

15. Now you understand how to conduct a performance review, let’s discuss an important topic… How to Handle Difficult Situations

16. How to Handle Difficult Situations (continued)

17. There may be instances where disagreements arise between you and your Direct Reports The Resolution Process • There are a number of checks and balances within the PDR process to facilitate fairness, transparency and objectivity; • Regular reviews and meetings between a Supervisor and Direct Report - open and honest two way communication is necessary • To reduce ambiguity and increase consistency and transparency, all performance ratings will be subject to the Moderation process. This process involves Supervisors reviewing the ratings and objectives to ensure all performance ratings have been applied fairly and consistently. • As we get more familiar with the process, our skills for honest communication and clarity of objective setting will improve • Nevertheless, there may be some instances where the Supervisor - Direct Report relationship may experience difficulties and a Direct Report disagrees with your assessment of their performance • If you and your Direct Report cannot reach agreement when setting performance objectives and measures, or the Direct Report disagrees with your assessment of their performance, they are able to request the Supervisor at the next level of management to intervene and mediate. • The process is outlined on the next page

18. If there are disagreements between you and your Direct Report about performance, the Resolution Process is followed The Resolution Process Informs Supervisor that they would like to start the Resolution Process as dissatisfied with ratings or performance assessment Moderation Process Direct Report YES Agreement reached? Discuss with Supervisor reasons for disagreement Meeting with Direct Report, Supervisor and 2nd Level Supervisor Supervisor NO 2nd Level Supervisor makes decision on resolution 2nd Level Supervisor

19. Communication transparency is important in regards to ratings and incentive framework - payments should remain confidential Communication of Ratings • Ensure that your Direct Report is aware that the initial ratings discussed in your end-cycle review may be moderated at the Moderation process (either up or down) • IMPORTANT: Final performance outcomes must be communicated employees prior to Performance Round Table Panel Chair sign-off

20. In pairs, write down the answers to the following quiz on the answer sheets provided without referring to your notes Quick Quiz • Question 1: • What are the two review processes called? • Question 2: • How many performance ratings are there? • Question 3: • What is the descriptor for a 3 rating? • Question 4: • What are ratings based upon? (3 factors) • Question 5: • When do the mid and end-cycle performance reviews happen?

21. Let’s review our course objectives to see if we have covered off all required topics Course Objectives - Review You should now be able to: • Discuss the purpose of mid and end cycle performance reviews • Explain the Mid and End Cycle processes and where these fit into the PDR process • Explain preparation requirements: the inputs, how to prepare for a performance review, what you’d expect to see from staff and when • Apply performance ratings to performance objectives based on evidence and information provided in examples • Answer questions about performance ratings • Discuss the importance of the final rating, in particular its linkage to rewards • State what needs to happen when communicating results • Explain the resolution process

22. Thinking about what we have learned is an effective method of retaining information…so Key Learnings • Individually, write down your top 3 learnings from this module • Thank you for your attention!