Performance Agreements Travor C. Brown, Ph.D. Associate Professor, Faculty of Business Memorial University

1. Performance Agreements Travor C. Brown, Ph.D. Associate Professor, Faculty of Business Memorial University MY NOTES: _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ MY NOTES: _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________

2. . ? Travor C. Brown, Ph.D Why are Performance Agreements Needed? (adapted from Latham & Wexley, 1994) Facilitate mutual understanding of effective performance Build trust and confidence between employees and managers Rectify misunderstandings concerning performance expectations Create development procedures Sustain and improve employee motivation Career development and planning Encourage communication and feedback Allocate rewards MY NOTES: _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ MY NOTES: _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________

3. . ? Travor C. Brown, Ph.D What should you measure? Trait, behavioral, outcome (Personality) Trait (e.g. loyal, team-player) too ambiguous, people hesitant to give poor feedback such as employee is “not loyal” Outcome (e.g., profit, revenue, number of calls taken, etc) Can be influenced by factors beyond employees control Can cause ‘wrong’ behaviors’ (quantity/quality issues) Behavioral/Competencies (e.g., works well with others) helps understand what employee should start, stop, continue doing Developed using job analysis MY NOTES: _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ MY NOTES: _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________

4. . ? Travor C. Brown, Ph.D Behavioral Instruments Research shows that courts tend to favour behavioral feedback as: Within person’s control Gives sense of direction Based on Job requirements; therefore, required for all employees Minimizes bias MY NOTES: _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ MY NOTES: _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________

5. . ? Travor C. Brown, Ph.D Who should give feedback? Managers Peer Subordinates Customers Self 360 MY NOTES: _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ MY NOTES: _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________

6. . ? Travor C. Brown, Ph.D Formal Coaching:Performance Agreements (adapted from Latham & Wexley, 1994) Give prior notice Explain purposes Review job function, provide feedback, and have 2 way conversation Ask employee for input on what they have done well and any problems Ask what s/he should start/stop/change Ask employee how you can help them Give your input focus on what you want to “SEE” stop/start/change Ask for and Listen to employees concerns Come to an agreement set SMART goals (Specific, Measurable, Attainable, Relevant, Time-based) Follow-up and document MY NOTES: _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ MY NOTES: _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________ _______________________________________________________________

7. . ? Travor C. Brown, Ph.D Further Reading Bandura, A. (1997). Self-efficacy: The exercise of control. New York: W.H. Freeman and Company. Latham, G. P. & Wexley, K. N. (1994). Increasing productivity through performance appraisal. Reading, MA: Addison-Wexley. Whetten, D. A. & Cameron, K. S. (2002). Developing Management Skills, 5th Edition. Reading, MA: Addison-Wesley. MY NOTES: ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ MY NOTES: ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________