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OBHR-E110 C. Finegold/L. Miklas1
Performance and
Performance Management
Class 3
February 12, 2009
OBHR-E110 C. Finegold/L. Miklas2
Field Research
What did you find out?
• What are the components? What is required? Is any aspect Optional?
• What is the timing?
• Is compensation tied to performance?
• Does everyone follow the same process and use the same form?
OBHR-E110 C. Finegold/L. Miklas3
In Your Experience
• What are the strengths – what is effective and why?
• What are the weaknesses – what is not effective and why?
OBHR-E110 C. Finegold/L. Miklas4
What is Performance? Results
(What work gets done? How does the work get done?)
Responsibility Accountability(Who’s doing what, and how?) (What if the work does/
doesn’t get done?)
OBHR-E110 C. Finegold/L. Miklas5
Performance Management is…
an ongoing collaborative communication
process that supports a positive working
relationship between managers and
employees
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PERFORMANCE MANAGEMENT
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Planning: Performance Goals
• Provide a roadmap to achieve success
• Set clear expectations of results
• What is to be achieved
• Dynamic in nature, not static
• Aligned with the organization goals and values
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Organization Goals/Values
Department
Goals/Values
Manager/TeamGoals/Competencies
EmployeeGoals/Competencies
PLANNINGStrategic Alignment
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“SMART” PrinciplesS – Specific/Stretch, Not a task
M – Measurable, Audit Test
A – Aligned, Fit “Big” Picture
R – Realistic, Given Context & Resources
T – Time-bound, During? By when?
OBHR-E110 C. Finegold/L. Miklas10
“SMART” Principles
Applying SMART Principles• Sentence or bullet format, or a combination, is
acceptable when writing goals.
• When first drafting a goal, the following format is considered most effective:
»S Specific»M Measurable»T Timebound
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Goal: Example• Before: Increase number of prospect visits.
• After: Complete140 prospect visits (increase of 10%), by:• Conducting 35 visits per quarter• Spending the equivalent of 1 week per month
on the road• Visiting 50% of next year’s solicitation (reunion)
pool• Clustering visits together geographically• Keeping expenses level by clustering visits and
planning in advance for lower fares.
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Work Goal: How is it SMART?
Specific: • Number to complete, % increase, whom to visitMeasurable: • 140 visits, 35 per quarter; traveling equivalent of 1
wk/mo; expenses level; 50% of next year’s solicitation pool
Time Bound: • Deadlines for goal established
The goal is also:Aligned: • Prospect visits are a core function and priority of the
departmentRealistic:• Reasonable goal given other priorities and workload
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Feedback and Coaching
OBHR-E110 C. Finegold/L. Miklas14
Behavior + Impact Example
Constructive Instead of saying “You’re doing it wrong!” Try…
Behavior: Victoria, we recently changed our procedures. I noticed that you continue to work the old way, and that’s inconsistent with what is expected now.
Impact: This hinders the department’s ability to get our work done on time, which means that we’re behind in meeting our goal, and the rest of the department has to pick up the slack. Let’s talk about what’s going on.
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Behavior + Impact Example
PositiveIn addition to saying “That was a great job.” Say…
Behavior: John, you did a great job on the project zero You tuned in to the client’s needs, made sure that everyone understood the project’s goals and objectives before the project started…
Impact:…Your project team stayed on the same page, and resolved issues quickly and responsively – which contributed to your ability to complete the project on time and within-budget.
OBHR-E110 C. Finegold/L. Miklas16
Performance CoachingWhat is “Coaching”?
An ongoing conversation between a manager and a staff member, which focuses on using and improving an individual’s skills, knowledge, and ability to achieve goals.
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Coaching Tool: Open-ended Questions
•What did you do well?
•What would you do differently the next time?
•What was your greatest personal success (with the project)?
•How did you prepare for the meeting?
•What are the most difficult problems that you are facing so far? What are some ways to overcome them?
Always ask, How can I support you as your manager?
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Evaluation
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Assessment Steps
Gather Information
Gather Information
Write Self Assessment
Write Self Assessment
Prepare for Review Meeting
Prepare for Review Meeting
What do I What do I need?need?
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Assessment Principles
• Build on conversations to date
• Hold no surprises
• Provide specific and behaviorally focused feedback
• Represent entire performance period
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Rewards
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COMPENSATION and REWARDS
Pay as an extrinsic reward.– Can help organizations attract and retain
highly capable workers, and help satisfy and motivate these workers.
– High levels of job performance must be viewed as the path through which high pay can be achieved.
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Creative Pay Practices
Skill-based payRewards people for acquiring and developing job-relevant skills
Lump-sum pay increases
Provide wage or salary increase in one or more lump-sum payments.
Employee stock ownership plans (ESOPs).
Give company stock to employees or allow them to purchase it at a price below market value
Profit-sharing plans
Reward employees based on the entire organization’s performance
OBHR-E110 C. Finegold/L. Miklas24
At Your Table
1. Why/How are SMART goals beneficial?
2. Why/How is the B+I formula beneficial?
3. Why/How are open ended questions beneficial?
4. What are some effective open ended questions?
OBHR-E110 C. Finegold/L. Miklas25
At Your Table
5. Why/How is a writing a self assessment beneficial? (employee)
6. Why/How is a writing a self assessment beneficial? (manager)
7. Why/How is having an annual assessment conversation beneficial?
8. What are some effective non-financial rewards?
OBHR-E110 C. Finegold/L. Miklas26
PERFORMANCE MANAGEMENT
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Sample Journal Questions to Address• When have you used coaching effectively? What was the situation? What
was the outcome?
• How is your performance assessed? What is the reward system? What motivates you?
• How has the performance management system in your organization helped you develop professionally?
• How do you make your performance management system part of everyday work life?
• Does your reward system reward the “right” behaviors?
• How do you see the iceberg model fitting into performance management?
• What role do trust, accountability and opportunity for growth and impact play in performance management?
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Assignments
• Journal Summary #1– Due Week 4, February 19, 2009
• 1-2 pages, 12 font, double-spaced
– Post to drop box by 5:00p on 2/19/09– Summarize your journal entries for weeks 1-3
• How have/might you apply the concepts, models, processes?
• What meaning are you gaining so far?• Critical thinking, analysis, synthesis
OBHR-E110 C. Finegold/L. Miklas29
Assignments
• Leadership Paper– Due Week 6, March 5, 2009
• 5 pages, 12 font, double-spaced
– Post to drop box by 5:00p on 3/5/09– Choose 3 people you admire as leaders, people you’ve
actually had contact with (co-workers, colleagues, personal/professional relationships)
• Describe each individual’s strengths (the stuff below the water line).
• Describe each individual’s opportunities/growing edge.• Compare and contrast the three leadership styles.• To what extent do you emulate or integrate what you admire
into your leadership style?