Improving and Maximizing Employee Performance

1. Improving and Maximizing Employee Performance Performance Management and Development Presentation by Renalda Hayek

2. OUTLINE • MODULE 1 : Performance Management Definitions • BENEFITS OF PERFORMANCE MANAGEMENT • PERFORMANCE MANAGEMENT CYCLE • PERFORMANCE MODEL • MODULE 2 : Performance Requirements as Organizational Structure and Job Outputs • COMMUNICATING THE CORPORATE VISION • STRATEGIC PLANNING PROCESS • COMPETENCIES-BASED HUMAN RESOURCES MANAGEMENT • MODULE 3 :Building an Effective and Flexible Performance Management Process • MBO • PERFORMANCE APPRAISAL SYSTEM • MODULE 4 : Recognizing, Measuring, and Developing a Strong Performance Strategy • COMPETENCIES-BASED TRAINING and DEVELOPMENT • PERFORMANCE REVIEW • PLANNING AND DELIVERING MAJOR ORGANIZATIONAL PERFORMANCE IMPROVEMENT • MODULE 5 : Business Leaders Must Institute Effective Change Management • COMMUNICATION and FEEDBACK • INTERNAL COMMUNICATION PROCESS Presentation by Renalda Hayek

3. Module 1: Performance Management Concepts and Background • Concept • Challenges • Cycle • Performance model • Benefits Presentation by Renalda Hayek

4. WHAT CHALLENGES DO ORGANIZATIONS FACE ? Presentation by Renalda Hayek

5. What challenges do Organizations Face ? • Rapidly changing and virtual organizations: An employee might be on several different teams at one time • Growing prevalence of empowerment: Increase of overlapping employee and manager roles • New work requirements: A workforce needs to operate in different cultures Presentation by Renalda Hayek

6. DEFINING PERFORMANCE MANAGEMENT Presentation by Renalda Hayek

7. Performance Management An ongoing communication process that involves both the performance manager and the employee. Together they: • Identify and describe essential job functions and relate them to the mission and goals of the organization • Develop realistic and appropriate performance standards • Give and receive feedback about performance • Write and communicate constructive performance appraisals • Plan education and development opportunities to sustain, improve, or develop employee work performance Presentation by Renalda Hayek

8. Performance Management (Ctd.) • Focus on the future • Set key accountabilities • Agree on objectives within each area • Agree on standards and performance indicators • Assign timescales and priorities • Line managers drive standards • Requires a sound reward strategy Presentation by Renalda Hayek

9. Organizational Priorities • Efficiency • Individual • Organizational • Full utilization of resources • Capital • Labour • Technology • Goal - maximization of: • Individual performance • Organizational performance • Organizational profitability Presentation by Renalda Hayek

10. Key Elements • Being busy is not the same as producing results. • Training, strong commitment, and lots of hard work alone are not results. • Focus on achieving defined results. Presentation by Renalda Hayek

11. Key Terms RESULTS MEASURES STANDARDS Presentation by Renalda Hayek

12. Performance Management 1 • Values • Visions • Axes • Job Descriptions 2 Key Performance Activities Objectives 3 Key Performance Indicators • Determine targets • Strategic & Operational • Evaluation measures results Presentation by Renalda Hayek

13. Job Description & Essential Functions Strategic Plan & Annual Goals Standards of Performance Observation & Feedback Performance Appraisal Performance Development Conceptual Framework Presentation by Renalda Hayek

14. Performance Management Cycle Mabey and Salaman (1995) Performance Measurement Setting Objectives Feedback from Results Rewards (based on outcomes) Amendments to Objectives and Activities Presentation by Renalda Hayek

15. Performance Model Appraisal Performance Appraisal Performance Planning Future Future Review the past Plan the future and agree Determine productivity level 1. Pre-appraisal preparation 3. Performance gap 6. Monitor 4. Performance targets 7. Develop Means of planning the future 2. Handling the interview 5. Development plan 8. Motivate Source: Harrison, R. (1993) HRM Strategies and Issues. Presentation by Renalda Hayek

16. Benefits • Provides an early warning indicator of problems and the effectiveness of corrective action. • Provides input to resource allocation and planning. It can help organizations prepare for changes in the program and support function operations (and the demands for products and services) such as decreasing personnel, financial resources, or changes in workload. • Use of measures can give organizations lead times for needed resource adjustments if these conditions are known in advance. • Provides periodic feedback to employees, customers, stakeholders, and the general public about the quality, quantity, cost, and timeliness of products and services. • Perhaps most importantly, it builds a common results language among all decision-makers. Selected measures define what is important to an organization, what it holds itself accountable for, how it defines success, and how it structures its improvement efforts. Presentation by Renalda Hayek

17. Module 2: Performance Requirements as Organizational Structure and Job Outputs • Communicating the Corporate Vision • Competencies-based Human Resources Management Presentation by Renalda Hayek

18. What is Strategic Management? Strategic Management is the process of formulating department strategies and establishing programs and tactics to implement them. Presentation by Renalda Hayek

19. Management Functions CONTROL STAFF LEAD ORGANIZE PLAN Presentation by Renalda Hayek

20. Strategic Planning Strategic planning is identifying: • Where you want to go? • Why you want to go there? • How you will get there? • What you need in order to get there? • How you will know if you're there or not? Presentation by Renalda Hayek

21. Strategic Planning Process Diagnosis Evaluation & Benchmarking Action Plan Prognosis Objectives Strategy Presentation by Renalda Hayek

22. WHAT IS HUMAN RESOURCES MANAGEMENT? Presentation by Renalda Hayek

23. Evolution of Human Resource Management Personnel HR Management SHRM Benefits Administration Compensation Recruiting Organizational Development Strategic Planning Employee Services Training Record Keeping Performance Management Career Development Knowledge Management Presentation by Renalda Hayek

24. SHRM Model Training and Development Payroll and Benefits Planning and Recruitment Internal Communication Human Capital Acquisition Knowledge & Skills Dvpt Motivation And Retention Intellectual Potential Management Planning & Recruitment Strategy Professional Training & Development Compensation Schemes Development Culture & Knowledge Management Performance & Competencies Management Presentation by Renalda Hayek

25. Human Resources Management is exercised at 3 stages Processes Presentation by Renalda Hayek

26. The Processes include: recruitment, selection, orientation, career development, training, compensation, evaluation, discipline and employee relations. Presentation by Renalda Hayek

27. The emphasis in HRM is on: • Accommodating the interests of management. • Adopting a strategic approach-one in which HR strategies are integrated with business strategies. • Treating people as assets to be invested in for the best interest of the organization. • Obtaining added value from people through the processes of human resource development and performance management. • Gaining employee commitment to the objectives and values of the organization. • Acknowledging the need for a strong corporate culture expressed in mission and value statements and reinforced by communication, training, and performance management processes. Presentation by Renalda Hayek

28. Human Resources Process The process an organization uses to ensure that it has the proper headcount and the right type of employees to deliver a particular level of output or services in the future. Presentation by Renalda Hayek

29. Suitability Matching Job Individual Gap Analysis Competency Required Competency Profile Training Recruitment Deployment

30. Three Scenarios First Scenario Second Scenario Third Scenario The firm will need more workers than will be available. These include training or retraining existing workers, grooming current employees to take over vacant positions, and recruiting new employees from outside the firm. Labor supply is expected to exceed its demand. The firm will have more employees than it needs.This might lead to pay cuts and reducing the number of hours worked. Labor demand is expected to match labor supply. The organization can manage this situation by replacing employees who quit with people promoted from the inside or hired from the outside.

31. Forecasting Techniques Quantitative Qualitative Presentation by Renalda Hayek

32. Job Analysis • It is the process of describing and recording information about job behaviour and activities. • It provides information about the knowledge, skills, and abilities relevant to the job. Presentation by Renalda Hayek

33. Job Analysis Process 1 Process Initiation 4 Process Evaluation 2 Data Collection 3 Data Analysis Presentation by Renalda Hayek

34. Important Activities in Job Analysis Process Gather Job Information Use Appropriate Job Analysis Techniques Verify the Accuracy of the Information Write a Job Description Presentation by Renalda Hayek

35. Job Analysis • Reviewing job descriptions and training documents. • Interviewing employees and their immediate supervisors and observing them doing their jobs. • Creating a first draft of competencies based on the information gathered in the previous two steps.  • Verifying your model via a survey administered to incumbents and supervisors. Presentation by Renalda Hayek

36. Job Breakdown A job can be broken down into duties, tasks, and subtasks. Job Duty 1 Duty 2 Task 2 Task 1 Subtask 2 Subtask 1 Step 1 Step or Element 2

37. Job Specification

38. 10 Positioning Criteria DETERMINES a Role’s Family: • Tasks • Meeting customer needs • Autonomy • Knowledge of the organization • Interaction with others • Problem solving • Time span of control • Quality reflex • Counseling (and people management when applicable) Presentation by Renalda Hayek

39. Module 3:Building an effective and flexible performance management process. • Management by Objective • Performance Appraisal System • Performance Review Presentation by Renalda Hayek

40. Key Performance Areas SMART Objectives Key Performance Indicators Feedback on Performance 1 2 Vision, Mission Statement & Values 3 Presentation by Renalda Hayek

41. KEY PERFORMANCE AREAS Presentation by Renalda Hayek

42. What is a KPA? • It is a product/service of stakeholders • It is expressed by short sentence • It does not suggest any directives (increase, add, decrease, etc.) • It does not reflect time or quantity • It is about output not input • There are three universal KPAs : • Development (self/team) • Organization • Special project Presentation by Renalda Hayek

43. Where does KPA come from? Vision, Mission & Values Long-range Goals Stakeholders Processes Job Description KPA Presentation by Renalda Hayek

44. Assess Yourself Who am I? What are my strengths? How do I work? Where do I belong? What is my contribution? Assess Your Unit What is its role? What are its resources? How does it function? What is my function within it? What are the functions of others? Starting Point in Setting Objectives - KPA Presentation by Renalda Hayek

45. Objectives Type • Profit • Customers • Fields of interest • Growth • Management • People • Quality Presentation by Renalda Hayek

46. AREAS NEEDING OBJECTIVES-8PETER DRUCKER • Market Standing • Productivity • Physical & Financial Resources • Profitability • Innovation • Management Performance & Development • Worker Performance • Public & Social Responsibility Presentation by Renalda Hayek

47. SMART Objectives • Specific • Measurable (can quantify the results) • Achievable • Relevant • Time bound (are governed by deadlines ) Presentation by Renalda Hayek

48. Key Performance Indicators • Key Performance Indicators, also known as KPI or Key Success Indicators (KSI), help an organization define and measure progress toward organizational goals. • The alignment of key business measures to corporate strategy is critical to success. • Key Performance Indicators frees managers from the arduous task of judging business performance from numerous and conflicting reports. Presentation by Renalda Hayek

49. KPIs helps managers by: • Giving business managers an immediate and universal view of performance against the key performance indicators used to run their business operations. • Automatically making information available immediately for every area of your business and for every employee. • Enabling managers to “drill down” through information to identify and root out causes of under-performance at the click of a mouse. • Giving you a business tool that enables dynamic decision making as you manage performance across your business. Presentation by Renalda Hayek

50. Performance Appraisal • Formal system: • Systematic • Regular • Formally structured • Documented • Part of strategic HRM • Informal system • Ad hoc - everyday communication on performance • (Pat on the back, “well done” (Herzberg)) • Immediate feedback facilitates quick response • (Improvements) • Not documented Presentation by Renalda Hayek