Performance Management and Reward

Phil PavardHead of Human Resources GMPTE

Let’s Talk About Me

35 years in HR (or Personnel as we used to call it)

ITT (red in tooth & claw US multinational) BBC Volkswagen Group UK University of Central Lancashire GMPTE

Performance Management

My manager cannot “manage” my performance – only I can do that

My manager can (at best) help, encourage and support me or (at worst) inhibit, limit and obstruct me

Good managers are defined by the performance of their teams; good managers get higher performance from their people than poor managers

The Job of Performance Management Is Not

To focus on and “deal with” poor performers – they should be dealt with separately

To find the high-flyers – they will most likely adapt to their environment and become successful anyway

The Job of Performance Management Is

To motivate the 80% of people who are not high-flyers but who come to work wanting to do a good job

To release the elusive “discretionary effort” To enable people to develop and grow in a

way that challenges them but also suits them To help people do their job in a way that

brings them satisfaction

Public v Private Sector

Private sector:Jobs are more fluid and tend to evolve and change more easily

Less emphasis on job description and more on personal contributionPeople can grow their jobs and develop themselves more easilyPeople can be exploited

Public v Private Sector

Public SectorDetailed job descriptions can act as a straight-jacketTolerance of poor performanceGood people get overburdened (uncontrolled job growth with little or no support)

Personal development without job growth can lead to disillusion / frustration

Reward

No evidence that good pay motivates good performance

Evidence that poor pay can demotivate No evidence that performance pay, by itself,

motivates high performance (except in extreme cases)

Poorly executed (most) performance pay systems demotivate the majority

Reward

Basic pay must be “felt fair” and adequate to reward good performance

Additional short term reward for exceptional performance

Reward includes pay, conditions, pensions, career progression, support, development, encouragement etc.

So All You Need Is

Good basic pay Good performance management Good people development Good career progression (for those that want

it)

But

We still see good people management as an addition to the “day job”

Professional / functional expertise is my job:management expertise I’ll just pick up - because I’m bright and it’s not that difficult anyway