Chapter 9: Performance Leadership

1. Chapter 9: Performance Leadership • Performance Standards • Essentials of Performance Evaluation • Making the Evaluation • The Appraisal Interview • Follow-Up • Legal Aspects of Performance Evaluation

2. Performance Standards • Each performance standard states 3 things about each unit of the job: • What the employee is to do. • How it is to be done. • To what extent it is to be done (how much, how well, how soon). • Job descriptions are often used in recruiting, evaluating applicants, & training. • They are also useful in assigning work, evaluating performance, & deciding on disciplinary action.

3. Performance Standards • If you develop a full set of performance standards for each job classification you: • have the basis for a management system for your people & the work they do. • can use them to describe the jobs, to define the day’s work for each job, & to train employee’s. • can use them as a basis for rewarding achievement. • can use them as diagnostic tools to pinpoint ineffective performance. • can use them in disciplining workers.

4. Performance Standards:In Recruiting & Hiring • Defines the job. • Aids in planning & forecasting. • Provides a method of testing skills. • Defines a day’s work.

5. Performance Standards: In Training • Provides blueprints for a training program. • Sets a competency standard for job performance.

6. Performance Standards: Evaluating Performance • Provides an objective evaluation method. • Pinpoints needs for improvement. • Identifies superior workers.

7. Performance Standards: In Your Job & Career • Helps you to develop managerial skills. • Reduces crisis management. • Provides time for true management.

8. Setting up a Performance Standard System3 Essentials for Success: 1. Employee participation: better results, commitment, & morale. 2. Active supervisory leadership & assistance throughout: be in charge at all times but, work together. 3. Built in reward system: rewards linked to how well each worker meets the performance standards.

9. Defining the Purpose • The first step is to define the purpose for which standards will be used. • This should define a day’s work, set standards, develop training programs, & evaluate on the job performance.

10. Analyzing the Job • The next step is to analyze the job & break it down into units. • You & your crew identify units of work that are performed. • List in order of performance all the tasks in the units-rate them according to value. • Sometimes it is appropriate to define the 3 levels of performance: 1. Optimistic 2. Realistic 3. Minimum

11. Writing the Performance Standards • Be specific, clear, complete,& accurate. • Be measurable & observable. • Be attainable. • Conform to company policies, goals, legal & moral restraints. • Certain kinds of standards must have time limits set for achievement.

12. Developing Standard Procedures • The next step is to develop standard procedures. • These state what a person must do to achieve the results, they give spelled out instructions for the action. • Functions: • To standardize procedures you want followed. • To provide a basis for training. • Do not: • Get carried away on detail. • Make rigid rules when there is a choice on ho things can be done.

13. Training Standards • A training program should have a training objective for each standard. • Training objective:a trainers’ goal- a statement, in performance terms, of the behavior that shows when training is complete.

14. Evaluating on the Job Performance • The first evaluation is a test of both the workers & the system. • If the workers meets all the standards- rewards are in order. • This also indicates that standards & procedures are suitable & workable.

15. Implementing a Performance Standard System • Keys to making it work: • Workers’ cooperation. • Gradual implementation. • An award or incentive system. • Recognition & use of workers potential. • Periodic review.

16. How a Performance Standard System Can Fail • The standards are not clearly stated & communicated. • The supervisor is doing a poor job. • The supervisor neglects various follow up elements. • Employees find no challenges or rewards. • The supervisor becomes to pre-occupied with maintaining the system. • The system is administered in a negative way.

17. Essentials of Performance Evaluation • Performance evaluation: • A periodic review & assessment of each employee’s performance during a given period. • Are not always used for hourly workers in the hospitality industry (lack of time, workers do not stay long enough, etc.). • Does not substitute in any way a informal evaluation.

18. Purpose & Benefits • To evaluate & give recognition. • Get different perspectives by looking back over a long period of time. • Documentation for the record. • Let people know how thy are doing. • Set improvement goals. • Basis for salary increase. • Identify workers for potential advancement. • May be used by other managers. • May be used by your boss to rate you/ provides feedback on your hiring & training. • Provides a occasion to get feedback from employees.

19. Steps in the Performance Review Process 1. Prepare for the evaluation. 2. Making the evaluation. 3. Sharing it with the worker. 4. Providing a follow up.

20. Making the Evaluation • Evaluations are typically formalized in an evaluation form. • This form lists performance dimensions or categories in measurable or observable terms. • Dimensions should be related to the job, & clearly defined in objective & observable terms.

21. Standards & Ratings • There should be measurable or observable standards, wherever possible to make evaluation more objective. • Many evaluation forms use a rating scaleranging from outstanding to unsatisfactory performance. • A common scale includes ratings of outstanding, above average, average, needs improvement, & poor. • The major problem with ratings such as outstanding or excellent is figuring out what they mean in performance terms. • The more precise these descriptions are, the fairer & more objective the ratings will be (i.e. point values). • No evaluation form solves all the problems of fairness & objectivity.

22. Pitfalls in Rating Performance • Form itself • Halo effect • Letting feeling bias judgment • Comparing one person to another • Supervisors feelings about evaluation process affects ratings • Concern about consequences • Procrastination • Supervisor gives ratings for the effect they will have • Rating employees on most recent performance

23. Defense Against Pitfalls • Evaluate performance, not the employee. • Give specific examples. • Where there is substandard performance ask WHY? • Use the rule of finger. • Think fair & consistent. • Get others input. • Write down ideas & discuss with the employee how to improve performance.

24. Employee Self Appraisal • Employees evaluate themselves. • May result in less employee defensiveness. • May result in a more constructive performance appraisal interview. • May improve motivation & job performance.

25. The Appraisal Interview • A private face to face session between you & your employee. • Plan: • Pick a place free of interruption at an appropriate time, review the evaluation, & keep in mind your goal of a positive climate of communication & problem solving.

26. Conducting the Interview • Start off with small talk. • Make sure the employee understands the evaluation process. • Ask the employee to rate their performance. • Encourage the employee to comment on your judgments. • Get the employee to do most of the talking. • Work with them on setting improvement objectives. • Summarize the interview, end on a positive note.

27. Common Mistakes in Appraisal Interviews • Authoritarian approach • Tell & sell approach • Criticizing & dwelling on past mistakes • Failing to listen-arguing- interrupting • Losing control- letting emotions take over • Reducing standards for one person

28. Follow-Up • 1st see that people receive the rewards they have coming to them. • For people you have discovered need more training, arrange to provide it for them. • For people you feel will improve themselves, follow their progress discreetly. • There will be people who you are sure will make no attempt to improve, who will continue to get by with minimum performance, reassess them in your mind. • There are 2 important facets of follow-up. • Actually carrying it out. • Use all you have discovered about your people & yourself to improve your working relationship with each person you supervise.

29. Legal Aspects of Performance Evaluation • EEO laws effecting performance evaluation include: • Title VII of the Civil Rights Act • Equal Pay Act • Age Discrimination in Employment Act • Americans with Disabilities Act

30. Fair & Legal Evaluations • Evaluations should be based on standards obtained from job analysis. • Use objective, observable, & measurable performance standards. • Keep a positive rapport during the interview. • Do not discuss qualities of employee based on a membership of a group. • Document frequently. • Employees should be given a way to appeal. © 2010 John Wiley & Sons, Inc.