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Webinar on “Performance Assessment”
23rd January, 2013
All materials are Copyrighted 2013 by Strategic Human Resources Management India, Pvt. Ltd. or Society for Human Resource Management unless otherwise expressly noted. All rights expressly reserved.
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Structure
1. Tanuja Sharma Effective Self‐ Appraisals Effectively rating an employee’s performance Managing differences in Manager & Employee Assessments of
the employee’s performance
2. Vijayan Pankajakshan The process of normalization Dealing with poor performance Applying the assessment process to improve employee
performance & development
3. Question & Answer Session
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Performance Management
Organizational Goals
Aligned Roles
PMS process
Boss and Dyads
Aligned Goals
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Goal Management: Ongoing process of aligning individual objectives with organizational objectives.
Mid‐Year Update: Enhances the frequency of feedback.
Development Planning: Allows employees to continuously learn and grow by creating Development plan.
Performance Assessment: Annual, end of the year assessment that leads to incentives for motivation and retention
PMS Process Overview
Enhanced Effectiveness and Efficiency of the work
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Performance Assessment
What is Performance Assessment
• Performance assessment‐a critical component of the performance Management System (PMS), also termed as Performance Appraisal/Performance Evaluation
• Dyadic Performance – manager and the boss together constitute the Dyad. In a dyad, they may have shared responsibilities and individual accountabilities for goal alignment.
What it is not
• Stand alone practice‐ Stand alone Performance assessment/will not work as the objective of the process is to help individual in achieving her/his goals for departmental and organizational goals.
• A blame game‐ Past practice of finding gaps and ‘boss blaming the manager’ needs to be dropped as performance management is about “win‐win”, for achieving the goals together.
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Performance Assessment
Self Assessment: Identifying Facilitators and Inhibitors on the job Boss Assessment Review process (Senior Manager and HR involvement) Feedback from other sources (e.g., peers, customers, etc. in 360
Degree) Assessment of the work done in
Past (performance cycle) in terms of– Behaviors and results
Present– Compensation to be received
Future– New goals and development plans
Good assessment process will always ensure that bothoutcomes/results and how is the work done (behaviors/competencies ) are also measured and assessed.
Performance Assessment Process Involves
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Performance Assessment
Desirable Features for All Assessment Forms Simplicity Relevancy Descriptiveness Adaptability
Researches in PMS show that when employees are involved in selecting Which sources to evaluate Which performance dimensions
This results into Higher acceptance of results Perception that system is fair
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Effective Self- AppraisalsIF
Objectives/goals/KRA’s – set timely -beginning of review period –proposed by individual employee- direct Manager to confirm sharpness of focus, allocation of priority/ weightage & relevance/reliability of metric
Sufficient time given – for employee to complete his/her self assessment + time for direct manager to prepare for the discussion
Necessary information – MIS/other sources- for employee to engage in meaningful self assessment
Learning /Continuous Improvement led organisation culture- encourages employees – even when some goal/objective has not been met
Ensure ‘end of review’ assessment- only culmination of timely, ongoing performance related feedback from direct manager
Enabling Managers – improve skills - minimize the gap between self assessment and the Manager assessment.
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Effectively rating an employee's performance- Planning Period commencement
The ‘What’ & ‘ How’ elements of Performance is built into & agreed- setting goals/KRA’s- beginning of year
‘What’ & ‘How’ elements- have more than one ‘performance level’
Relative weightage - ‘what’ and ‘how’ - rating of the employee- setting goals/KRA’s
Team KRA/Goal- tied in- intra and inter team
Ensuring :
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Effectively rating an employee's performanceEnd of review period
Results/outputs- beyond written goals/KRA’s- must be factored- if not rewarded, recognised
Focus on ‘performance’ and not on ‘person/personality’
Focus on achieved results first- then the ‘misses’- close with a positive future focused feedback
Focus on the ‘context (enablers / derailers) that led to achievements and ‘ misses’
If employee is new/first year in the job- while results are important, temper with assessment of learning agility
If Project environment- Project Manager to complete rating@ end of Project- input into Direct Manager
Ensuring :
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Managing differences in Manager & Employee Assessments of the employee's performance
Ensuring:
Assess if employee assessment- is completely ‘out of touch with ground reality’
Compliment and acknowledge- wherever- assessment of both are in agreement
Negotiate- where difference in assessment- is limited /and or- is a lower weight KRA
Ask probing questions- those assessments -there is a ‘significant gap’ – provide perspective, reflect principles
Assert- when ‘how’ of the result- is walking the ‘thin line’ between legal/illegal, ethical/non ethical and/or upholding company value/violating the company value
Redirect conversation- towards- employee ‘competing with himself/herself’
Avoid- ‘agree to disagree’ ending- unless the situation calls for it
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Accountability for delivering performance can be assigned to each role for Performance-to be assessed and rewarded
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The Most Important Minute-Performance Assessment for maintaining People (Book-One Minute Manager)
The best minute spent is the one invested in people
People expenses: Most organizations spend upwards of 80% on salary and benefits and less than 1% on training.
Most companies spend more resources on maintaining buildings and equipment than on maintaining people.
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Structure
1. Tanuja Sharma Effective Self‐ Appraisals Effectively rating an employee’s performance Managing differences in Manager & Employee Assessments of
the employee’s performance
2. Vijayan Pankajakshan The process of normalization Dealing with poor performance Applying the assessment process to improve employee
performance & development
3. Question & Answer Session
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The Process of NormalizationUnderstanding and Educating- Why this process
All natural processes- including performance levels of employees- are inherently ‘variable’
Performance level is not static- it is a continuously improving moving quest
Normalization- Managers to ‘force rank’ their employees- on the performance rating scale* benchmarks- could be within functions/units and /or across
functions/units* the ‘senior most management teams’ collective view- performance
of the entire employee group
An important “decision process” - use of the principle of applying the “Bell Curve,”- distributing a fixed number/percentage of employees-each performance category.
GE – made this process very popular
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The Process of NormalizationUnderstanding and Educating-Why this processThree broad methods of correlating job performance and ratings of job
performance*
Single Factor: Measurement error is the main difference between performance and performance ratings and this can be dealt-correction for attenuation
Multi Factor : suggest isolating and dampening of the effect of the ‘mask’ systematic range of non performance factors’ – that influence performance ratings
Mediated Multifactor: Internal distortions are a key reason-ratings failing to reflect ratee performance
Normalization – an example of Mediated Multifactor method
*Kevin R Murphy (Pennsylvania University/2008/Industrial & Organisation Psychology
Raters must be trained or developed (incentivized)‐ on the tools & measurement instruments
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The connect between Normalisation & Forced Distribution
Performance assessment is not an exact science (it does not entirely reflect objective measurement)
Normalization- is based on Statistical distribution of data regarding a Process- the ‘bell shaped curve’
Two ‘outliers’ clusters- (performance laggards and outstanding performance)- and the large majority of employee performances-clustering -the central ‘bulge’
See next slide for diagrammatical representation- Standardised Normal Distribution- ‘Bell Curve’
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Statistical Distribution of Data Points in a Process
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Application of Normalisation Normalization delivers two results:
a) Relative grading of employee performancesb) A structured, statistically validated method- how to distribute
‘limited’ rewards CEO, Heads of HR & Finance and other functional Heads- together to ensure
that salary increases are allocated such that the total increase stays largely within a fixed figure – the budget for that year.
Normalisation works effectively when.. When demand for critical talent is lower than supply Enabling Organisation culture is one of high performance
Normalisation does not work well when .. Demand for critical talent is higher than supply If work group is very small
Need to be thoughtful and equitable is a challenge
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Dealing with Poor PerformanceUnderstanding and Diagnosing:
Focus on ‘Performance Gap’ – NOT on personality ‘Gap’ – immediate past review period- where performance level has
been ‘below expectations’ / ‘significantly below expectations’ Stratify- trend of poor performance v/s ‘one year blip’ Is the employee new to the job/company? Help employee identify key causes for poor performance- Skill or Will
or both or some other extraneous reason Besides closing skill gap- identify other ‘noise factors’ – may have
contributed- eg: lack of clarity in mutual expectations, consequences of good and bad performance not known, irregular dialogue with direct manager
If the performance gap is a trend – very important- identify a Performance Improvement Plan – with a fixed time frame of 3 to 6 months max: Decision -continuation of employment and/or placing the employee in an alternate job/role - be determined end of PIP
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Applying the assessment process to improve Employee Performance & Development.
Framework for Development - Competency based Leadership & Performance Management system is in place- employee performance to be assessed against a commonly understood standard
Identifying and stratify employee performances:a) good/consistent performance track recordb) Of the consistent performers, those that have potential- perform
at same level of complexity/higher levels of complexityc) ‘High potential’ and ‘fast trackers’d) Those who are key/critical talent AND those that would feed
into Succession Planning
Ensuring:
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Applying the assessment process to improve employee performance & development
Structuring development using the chosen framework AND designing intervention- 50: 30: 20 model (updated from the 70:20:10 model) 50% focus- Job/role experience, coaching, special projects (including stretch assignments), job rotation (cross functional and vertical), feedback,
30% focus- Training, action learning, mentoring, and development planning
20% focus- ‘Outside corporate work’ (community service), exposure to stakeholders (Board Members)
Facilitating employees to ‘get in touch’- what they ‘deeply desire’ to do in their lives- all need not, should not & cannot be the ‘pyramid leader’
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Applying the assessment process to improve employee performance & development.
Dr. Ramcharan - ‘Talent Masters’- framework
Development – evolution - Individual contributor, first time Manager of People, first time Manager of Managers, first time Manager of Business, first time Manager of Managers of Businesses, Enterprise Head etc..
Dan Pink- Career Expert (TED speaker)- three ingredients for an employee to perform well- Autonomy, Mastery & Purpose)
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Applying the assessment process to improve employee performance & development.
Edgar Schien - Career Anchors- eight channels for channelizing & enhancing employee performance & development
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Employee Engagement & Discretionary EffortPe akPe rform an ce
Aver agePe rform an ce
3 6 9 12 15 2118 24
DiscretionaryEffort
Time On The Job - Months
The key to success lies in creating the environment for and then promoting discretionary effort.
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