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Performance Management Managing, Measuring and Rewarding Human Performance

Performance Management Managing, Measuring and Rewarding Human Performance. Presented by Kathleen O’Halloran Education Director NICSA. Performance Management: Why is it so important?. A manager’s most sacred responsibility Corporate results Employee satisfaction and retention Fairness

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Performance Management Managing, Measuring and Rewarding Human Performance

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  1. Performance ManagementManaging, Measuring and Rewarding Human Performance Presented by Kathleen O’Halloran Education Director NICSA

  2. Performance Management: Why is it so important? • A manager’s most sacred responsibility • Corporate results • Employee satisfaction and retention • Fairness • Litigation and documentation NICSA Human Resources Forum

  3. Performance Management: Why is it so hard? • Worries and woes: • ______________________________ • ______________________________ • ______________________________ • ______________________________ • ______________________________ • ______________________________ NICSA Human Resources Forum

  4. Performance Management:Why is it so hard? ~ plain and simple ~ it’s just human nature to want to be liked NICSA Human Resources Forum

  5. Measuring Performance • What is performance? • What is a goal? • Valuing results vs. effort • Staff vs. line positions NICSA Human Resources Forum

  6. What is performance? ~ activity ~ • Characteristics of performance • __________________________ • __________________________ • __________________________ • __________________________ NICSA Human Resources Forum

  7. What is a goal? • Specific • Measurable • Attainable • Realistic • Time-based ~ activity ~ NICSA Human Resources Forum

  8. Valuing results vs. efforts • When “giving it your best shot” doesn’t count • Corporate America values results • Staff vs. line positions NICSA Human Resources Forum

  9. Effort statements • I tried my best • I’m in early and stay late every day • I work so hard • I spent all weekend on this • I trained 98 people on Retirement Plans this month • I made 7 sales calls this week NICSA Human Resources Forum

  10. Result statements • I sold 3 memberships this month • The new Retirement Plan reps, whom we trained last month, answered 100 calls last week, with a 92% accuracy rate. • Southwest Airlines had an 87.1% on time arrival rate for June 2002. NICSA Human Resources Forum

  11. Measuring Performance • Measure against a standard, not against another performer • Use hard data • statistics • tasks/projects completed • results identified • end user satisfaction ratings NICSA Human Resources Forum

  12. Measuring Performancecont. • Use anecdotal information if representative • Be objective in thought and language ~ activity~ NICSA Human Resources Forum

  13. Measuring Performance via BARSBehaviorally Anchored Rating Scales Quality of Work: Leaps tall buildings at a single bound Leaps tall buildings with a running start Can leap short buildings if prodded Bumps into buildings Cannot recognize buildings NICSA Human Resources Forum

  14. BARS cont. Promptness: Is faster than a speeding bullet Is as fast as a speeding bullet Would you believe a slow bullet? Misfires frequently Wounds self when handling guns NICSA Human Resources Forum

  15. BARScont. ~ activity ~ “An Evening Out” Consider what the behaviors are that make us happy to tip 25% in a restaurant NICSA Human Resources Forum

  16. Three Major Rules of Thumb 1. Don’t gloss over negative performance • “those niggling annoyance factors” • at least record it, even if it doesn’t lower the rating • this year’s annoyance will only blossom into next year’s problem NICSA Human Resources Forum

  17. 2. Don’t emptily praise • “She’s the best thing to hit the company since the Founding Fathers. • He’s an exceptional performer. • You’re doing a great job. NICSA Human Resources Forum

  18. 3. Be specific • You exceeded your sales quota by 17%. • Your fund’s performance has been in the lowest quartile for its peer group for the past three quarters. • Your java script enabled us to roll out Account Access by the deadline. NICSA Human Resources Forum

  19. Giving feedbackEffective feedback is: • Frequent • Immediate • Specific • Understandable NICSA Human Resources Forum

  20. Effective Feedbackcont. • Positive vs. punitive • Meant to separate the great performer from the OK performer from the poor performer NICSA Human Resources Forum

  21. Factors that can distort performance appraisals • Bias • Rating personality rather than performance • Overcrediting their personal background NICSA Human Resources Forum

  22. Distorting Factorscont. • “Halo” or “Horn” effect • Lack of clear standards; measuring against outdated standards • Leniency/severity NICSA Human Resources Forum

  23. Distorting Factorscont. • Limited use of the rating scale • Inadequate observation • Inappropriate time span NICSA Human Resources Forum

  24. Distorting Factorscont. • Contrast effect • Overemphasis on uncharacteristic performance NICSA Human Resources Forum

  25. Improvement-based feedback • Recognize/name the problem • Show its impact/result • Name the remediation • Ask if that’s reasonable; gain agreement NICSA Human Resources Forum

  26. Practice: When you ___________________, the result is __________________. Starting ______, I’d like you to________. Do you foresee any problem with ______. NICSA Human Resources Forum

  27. Writing a sound, balanced appraisal • Be specific • Be balanced • Document, document, document • These are the things that go to court when you do NICSA Human Resources Forum

  28. The Performance Appraisalwhat not to do • Copy last year’s; just change the date • Make everyone’s the same • Use them to punish past wrongs • Use them to champion your friends • Use them to shake the proverbial dust from the proverbial footwear NICSA Human Resources Forum

  29. The Performance AppraisalSystems • Numbers 1 - 5 • did I ever tell you the one about the 3.67? • Letters D, C, S, NI • or about the “condemnable” one? • Continuum of performance scale - or about the accursed cursor problem? NICSA Human Resources Forum

  30. Performance Appraisal Systems - the secret • There is no perfect system • People hate being “rated” • You might as well label them as Goldfinch, Blue Jays, Robins, and Sparrows • It’s the conversation that counts. NICSA Human Resources Forum

  31. Writing the appraisal • Have quarterly/weekly? performance chats • Keep notes on performance observations NICSA Human Resources Forum

  32. Writing the appraisal • See performance feedback as an ongoing process, not a yearly event • NEVER let the performance appraisal be the first time someone hears of a problem • Or, conversely, some worthy achievement NICSA Human Resources Forum

  33. Writing the appraisal • Famous last words: don’t wait til the last moment • Do the “hard ones” first • Schedule time to write these NICSA Human Resources Forum

  34. Delivering the appraisal It is nowhere more clear than during a performance appraisal, who holds the power in the relationship NICSA Human Resources Forum

  35. Tips for delivery • Schedule a time; let them suggest a time • Allow at least one hour • Find a private spot NICSA Human Resources Forum

  36. Tips for delivery • Ask the employee: “How would you like to do this?” • Be aware of where you sit • Don’t become alarmed/tyrannical if employee disputes the appraisal NICSA Human Resources Forum

  37. Pay for Performance Rewards Performance NICSA Human Resources Forum

  38. Pay for Performance Rewards Performance low; rewards low Performance NICSA Human Resources Forum

  39. Pay for Performance Rewards Rewards Performance high; rewards low Performance NICSA Human Resources Forum

  40. Pay for Performance Performance low; rewards high Rewards Performance NICSA Human Resources Forum

  41. Pay for Performance Performance high; rewards high Rewards Performance NICSA Human Resources Forum

  42. Pay for Performance • An Evening Out • the Little Red Hen phenomenon • The Good Chip Lollipop ~ activity ~ NICSA Human Resources Forum

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