Chapter 7 Implementing a Performance Management System 7-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Chapter 7Chapter 7

Implementing a Implementing a Performance Performance

Management SystemManagement System

7-7-11Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallCopyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

OverviewOverview

PreparationPreparation Communication PlanCommunication Plan Appeals ProcessAppeals Process Rater Training ProgramsRater Training Programs Pilot TestingPilot Testing Ongoing Monitoring and EvaluationOngoing Monitoring and Evaluation Online ImplementationOnline Implementation

Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallCopyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 7-7-22

PreparationPreparation Need to gain system buy-in throughNeed to gain system buy-in through::

• Communication plan regarding performance Communication plan regarding performance management systemmanagement system

Including appeals processIncluding appeals process

• Training programs for ratersTraining programs for raters

• Pilot testing systemPilot testing system

Ongoing monitoring and evaluation to Ongoing monitoring and evaluation to show benefitsshow benefits


Communication Plan Answers:Communication Plan Answers: What is Performance Management What is Performance Management

(PM)?(PM)?

How does PM fit into our strategy?How does PM fit into our strategy?

What’s in it for me?What’s in it for me?

How does it work?How does it work?

What are our roles and What are our roles and responsibilities?responsibilities?

How does PM relate to other How does PM relate to other initiatives?initiatives?


Cognitive Biases That Affect Cognitive Biases That Affect Communications Effectiveness Communications Effectiveness

Selective exposureSelective exposure

Selective perceptionSelective perception

Selective retentionSelective retention


To Minimize Effects of Cognitive To Minimize Effects of Cognitive Biases:Biases:

A. Consider employeesA. Consider employees

Involve employees in system designInvolve employees in system design

Show how employee needs are metShow how employee needs are met


To Minimize Effects of Cognitive To Minimize Effects of Cognitive Biases Biases (Continued)(Continued)::

B. Emphasize the positiveB. Emphasize the positive

Use credible communicatorsUse credible communicators

Strike first—create positive attitudeStrike first—create positive attitude

Provide facts and consequencesProvide facts and consequences


To Minimize Effects of Cognitive To Minimize Effects of Cognitive Biases Biases (Continued)(Continued)::

C. Repeat, document, be consistentC. Repeat, document, be consistent

Put it in writingPut it in writing

Use multiple channels of Use multiple channels of communicationcommunication

Say it, and then say it againSay it, and then say it again


Appeals ProcessAppeals Process

Promote employee buy-in to PM Promote employee buy-in to PM systemsystem

• Amicable/Nonretaliatory Amicable/Nonretaliatory

• Resolution of disagreementsResolution of disagreements

Increases perception of the system’s Increases perception of the system’s fairnessfairness


Appeals ProcessAppeals Process(continued)(continued)

Employees can question two types of Employees can question two types of issues:issues:

• Judgmental Judgmental

Validity of evaluationValidity of evaluation

• AdministrativeAdministrative

Whether policies and procedures were Whether policies and procedures were followedfollowed


Recommended Appeals ProcessRecommended Appeals Process Level 1Level 1

• HR reviews facts, policies, and proceduresHR reviews facts, policies, and procedures

• HR reports to supervisor/employeeHR reports to supervisor/employee

• HR attempts to negotiate a settlementHR attempts to negotiate a settlement Level 2Level 2

• Arbitrator (panel of peers and managers)Arbitrator (panel of peers and managers) oror

• High-level manager—final decisionHigh-level manager—final decision


Rater Training ProgramsRater Training Programs Content Areas to Include:Content Areas to Include:

• InformationInformation

• Identifying, observing, recording, and evaluatingIdentifying, observing, recording, and evaluating

• How to interact with employeesHow to interact with employees

Choices of Training Programs to ImplementChoices of Training Programs to Implement

• Rater Error TrainingRater Error Training

• Frame of Reference TrainingFrame of Reference Training

• Behavioral ObservationBehavioral Observation

• Self-Leadership Training Self-Leadership Training


ContentContent

A.A. Information—how the system Information—how the system worksworks

• Reasons for implementing the Reasons for implementing the performance management systemperformance management system

• InformationInformation

The appraisal formThe appraisal form

System mechanicsSystem mechanics


Content Content (continued)(continued)

B. Identifying, observing, recording, B. Identifying, observing, recording, and evaluating performanceand evaluating performance

• How to identify and rank job activitiesHow to identify and rank job activities

• How to observe, record, and measure How to observe, record, and measure performanceperformance

• How to minimize rating errorsHow to minimize rating errors


ContentContent (continued)(continued)

C. How to interact with employees C. How to interact with employees when they receive performance when they receive performance informationinformation

• How to conduct an appraisal How to conduct an appraisal interviewinterview

• How to train, counsel, and coachHow to train, counsel, and coach


Choices of Training ProgramsChoices of Training Programs

Rater Error Training (RET)Rater Error Training (RET)

Frame of Reference Training Frame of Reference Training (FOR)(FOR)

Behavioral Observation Training Behavioral Observation Training (BO)(BO)

Self-Leadership Training (SL)Self-Leadership Training (SL)


Rater Error Training (RET)Rater Error Training (RET)

Goals of RETGoals of RET

• Make raters aware of types of rating Make raters aware of types of rating errors they are likely to makeerrors they are likely to make

• Help raters minimize errorsHelp raters minimize errors

• Increase rating accuracyIncrease rating accuracy


Intentional Rating ErrorsIntentional Rating Errors

Leniency (inflation)Leniency (inflation)

Severity (deflation)Severity (deflation)

Central tendency Central tendency


Unintentional Rating ErrorsUnintentional Rating Errors

Similar to MeSimilar to Me

HaloHalo

Primacy Primacy

First First ImpressionImpression

ContrastContrast

StereotypeStereotype

NegativityNegativity

RecencyRecency

SpilloverSpillover

AttributionAttribution


Possible Solutions for Possible Solutions for Types of Rating ErrorsTypes of Rating Errors

IntentionalIntentional

• Focus on motivationFocus on motivation

• Demonstrate benefits of providing Demonstrate benefits of providing accurate ratingsaccurate ratings

UnintentionalUnintentional

• Alert raters to different errors and Alert raters to different errors and their causestheir causes


Frame of Reference Training (FOR)Frame of Reference Training (FOR) Goal of FOR*Goal of FOR*

• Raters develop common frame of referenceRaters develop common frame of reference

Observing performanceObserving performance

Evaluating performanceEvaluating performance

Expected results of FORExpected results of FOR

• Raters provide consistent, more accurate ratingsRaters provide consistent, more accurate ratings

• Raters help employees design effective Raters help employees design effective development plansdevelopment plans

**Most appropriate when PM appraisal system focuses on behaviorsMost appropriate when PM appraisal system focuses on behaviors


Behavioral Observation Training (BO)Behavioral Observation Training (BO) Goals of BOGoals of BO

• Minimize unintentional rating errorsMinimize unintentional rating errors

• Improve rater skills by focusing on how raters:Improve rater skills by focusing on how raters:

Observe performanceObserve performance

Store information about performanceStore information about performance

Recall information about performanceRecall information about performance

Use information about performanceUse information about performance


Self-Leadership Training (SL)Self-Leadership Training (SL)

Goals of SLGoals of SL

• Improve rater’s confidence in ability to Improve rater’s confidence in ability to manage performancemanage performance

• Enhance mental processesEnhance mental processes

• Increase self-efficacyIncrease self-efficacy


Pilot TestingPilot Testing

Pilot testing is done before the Pilot testing is done before the system is implemented.system is implemented.

• Provides ability to:Provides ability to:

Discover potential problemsDiscover potential problems

Fix them Fix them


Pilot Testing—BenefitsPilot Testing—Benefits

Gain information from potential participantsGain information from potential participants

Learn about difficulties/obstaclesLearn about difficulties/obstacles

Collect recommendations on how to improve Collect recommendations on how to improve system system

Understand personal reactionsUnderstand personal reactions

Get early buy-in from some participants Get early buy-in from some participants

Get higher rate of acceptanceGet higher rate of acceptance


Implementing a Pilot TestImplementing a Pilot Test

Roll out test version with sample groupRoll out test version with sample group

• Staff and jobs generalizable to the Staff and jobs generalizable to the organizationorganization

Fully implement planned systemFully implement planned system

• All participants keep records of issues All participants keep records of issues encounteredencountered

• Do not record appraisal scoresDo not record appraisal scores

• Collect input from all participantsCollect input from all participants


Ongoing Monitoring and EvaluationOngoing Monitoring and Evaluation When system is implemented, decide:When system is implemented, decide:

• How to evaluate system effectivenessHow to evaluate system effectiveness

• How to measure implementationHow to measure implementation

• How to measure resultsHow to measure results

Evaluation data to collect:Evaluation data to collect:

• Reactions to the systemReactions to the system

• Assessments of operational and technical requirementsAssessments of operational and technical requirements

• Effectiveness of performance ratingsEffectiveness of performance ratings


Indicators to ConsiderIndicators to Consider Number of individuals evaluatedNumber of individuals evaluated

Distribution of performance ratingsDistribution of performance ratings

Quality of informationQuality of information

Quality of follow-up actionsQuality of follow-up actions

Quality of performance discussion meetingsQuality of performance discussion meetings

System satisfactionSystem satisfaction

Cost-benefit ratio or return on investment (ROI)Cost-benefit ratio or return on investment (ROI)

Unit-level and organization-level performanceUnit-level and organization-level performance


Online ImplementationOnline Implementation

Online tools to facilitate implementationOnline tools to facilitate implementation

• E-mailsE-mails

• Electronic newslettersElectronic newsletters

• Web sitesWeb sites

• Appeal filingAppeal filing

• Training programsTraining programs

• Pop-up remindersPop-up reminders


Online Implementation—AdvantagesOnline Implementation—Advantages

AutomationAutomation

Speed up processesSpeed up processes

Lower costLower cost

Gather and disseminate information faster Gather and disseminate information faster and more effectivelyand more effectively

System can be linked to other HR functionsSystem can be linked to other HR functions

Easier to monitor unit-level and Easier to monitor unit-level and organizational-level trends over timeorganizational-level trends over time


Online Implementation—LimitationsOnline Implementation—Limitations

PM systems that are not implemented PM systems that are not implemented following best practices will not following best practices will not necessarily improve from the use of online necessarily improve from the use of online components. components.

In fact, online implementation may create In fact, online implementation may create a more complicated system that is a big a more complicated system that is a big waste of time and resources for all waste of time and resources for all involved. involved.


Quick ReviewQuick Review

PreparationPreparation

Communication PlanCommunication Plan

Appeals ProcessAppeals Process

Training ProgramsTraining Programs

Pilot TestingPilot Testing

Ongoing Monitoring and EvaluationOngoing Monitoring and Evaluation

Online ImplementationOnline Implementation


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Copyright © 2013 Pearson Education, Inc. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hallpublishing as Prentice Hall


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Chapter 7 Implementing a Performance Management System 7-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall