Performance ManagementPresented byCheryl Lea ReedDepartment Head HR OperationsGuideStone Financial ResourcesApril 24, 2014
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Agenda
• Introductions
• Performance Management vs.Performance Appraisal/Review
• Performance Planning
• Performance Appraisals/Rating
• Performance Review Meeting
• Performance Goal Setting
• Appraisal Forms
• The Performance Management Method
Introduction
• HR professional for over 25 years
• SPHR Senior Professional in Human Resources designation from SHRM/HRCI
• HR manager/leader for 20+ years
• GBA Group Benefits Associate from ISCEBS
• Undergraduate and Masters Business Degrees in Management from Dallas Baptist University
• Multi-year volunteer for The HRSouthwest Conference, most recent role of Bookstore Director
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Performance Management vs. Performance Appraisal
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Performance management
• Ongoing
• Prospective
• Long term
• Progress steps
• Planning/goal setting
Performance appraisal
• One-time event
• Retrospective
• Short term
• Correction oriented
• Completing the form
A Matter of Perspectives
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Performance Management Continuum
Performance Management
Performance Review
Performance Planning
Goal Setting & Planning
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Performance Planning
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Performance Planning
• The key idea is to work to develop your employees and create an environment where each employee can be their best.
• You want to clearly define the most important outcomes needed from each staff position within the framework of your organization's strategic plan.
• The performance appraisal is a logical extension of the process which allows the supervisor and employee to appraise and discuss the accomplishment of certain standards and goals.
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Performance Planning
• Allows the supervisor and employee to improve communication and plan for higher levels of output from the employee, unit or department.
• Helps remove potential roadblocks to high performance for you and your employees.
• Meet frequently with employees to review their progress and plan together on a path for achievement.
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Performance Planning
• Keep the job description up to date!
• Identify the:
◦ Core responsibilities of the position.
◦ Special projects suited to the position.
◦ Performance measures needed to indicate required achievement levels during and at the end of the performance cycle.
• Ensure that employees have the tools, resources and training and development needed to carry out their responsibilities successfully.
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Performance Appraisal/Review
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Performance AppraisalsProvide the Employee:
• Essential feedback from management.
• An opportunity to discuss their performance with management.
• Identification of employee training anddevelopment needs.
• A basis for compensation decisions.
• The goals for increased productivity and improved employee performance.
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Performance AppraisalsProvide the Employer:
• The opportunity to build trusting and respectful relationships with employees.
• Safeguards for the company and its employees from legal liability.
• Establishment of goals and performance expectations.
• Reinforcement of company values and culture.
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Performance Appraisal Ratings
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Rating Standards
• Your performance management process should include a formal rating scale.
• Most companies use a three- or five-tier rating scale.
◦ Some use "words" or "numbers" and some use a combination of both.
◦ The key is to be consistent and fair on whichever scale you use.
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Rating Standards
At GuideStone, we use a five-tier scale with associated numerical scores:
• Outstanding — 5
• Highly Effective — 4
• Competent — 3
• Needs Improvement — 2
• Unacceptable — 1
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Rating Descriptionand Criteria Outstanding — Performance is outstanding and exceptional. Represents outstanding performance that is obvious to all.
• Consistently exceeds performance standards
• Continuously contributes to the organization’s success by adding significant value
• Demonstrates a comprehensive understanding of work; takes action to identify needs and solve problems
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Rating Descriptionand Criteria
Highly Effective — Performance clearly and consistently exceeds the competent level; represents performance that is noticeably better than most.
• Meets or exceeds all performance standards
• Effectively performs all aspects of job functions and meets goals
• Capably adjusts to changing workplace needs and work requirements
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Rating Descriptionand Criteria
Competent — Performance meets expectationsand is consistently good; represents good, solid, reliable performance.
• Generally meets expectations of the position
• Competently performs aspects of the job function or goal
• May require Performance Improvement Plan (PIP) to concentrate on areas of weakness
• May require additional resources or training to move above rating
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Rating Descriptionand Criteria
Needs Improvement — Performance has fallen below the competent level, or this rating may apply to an employee when the need for further development is evident; represents performance requiring improvement in some areas.
• Does not adequately perform most job aspects
• Performance levels are below expectations
• Requires guidance in performing routine job duties
• Requires PIP to address areas of weakness with progress review dates
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Rating Descriptionand Criteria
Unacceptable — Performance is unacceptable and there are consistent weaknesses in key areas; represents performance that requires immediate improvement in many areas.
• Fails to perform most aspects of the position
• Performance levels are below expectations and hurting overall performance
• Requires constant guidance in performing routine job duties
• Requires PIP and training to address areas of weakness with progress review dates
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Rating Perils
• Halo/horn effect — rate employees the same on every trait
• Central tendency — lack of rating differentiation between employees
• Leniency — avoids honest ratings to avoid conflict
• Recency — narrow focus on recent events
• Similarity/like me — favorable rating to employees who have similar values or interests to the rater
• Constancy — rate employees via rank order
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Avoiding Other Perils
• Make objective statements.
• Consider the totality of the employee’s performance.
• Avoid inadequate record keeping — lack of specific examples.
• Establish milestones for progress reviews.
• Discuss specific performance issues andbehaviors objectively.
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Avoiding Other Perils
• Consider legal impact of inflated performance ratings.
• Maintain clear and open communication channels.
• Specific comments should avoid any connotations which are connected to: age, race, sex, religion, national origin, veteran or a specific disability.
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Ways to Legally Discriminate
Discriminate on the basis of:• Poor performance• Excessive or unexcused absenteeism• Tardiness• Violating policies or rules• Not meeting job qualifications• Poor work references• Incompetence• Poor work relationships• Misconduct
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Performance Review MeetingCreating the “Right” Environment
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Planning theReview Meeting
• Advance planning:
◦ Employee’s self appraisals should be completed two weeks prior to managerial review.
◦ This allows employees to provide feedback to their manager.
◦ Be sure to gather all needed documentation.
• Plan for open dialogue:
◦ This is an opportunity to review performance, consider lessons learned, progress for the period and to establish goals and objectivesfor next period.
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Planning theReview Meeting
• Lay out a plan for performance discussions.
◦ Collect and review notes, statistics, citations and performance based examples.
• Schedule sufficient time to focus on the review.
• Job description/addendums should tie together with performance review.
• Prepare to discuss the full range of issues which may arise in the performance review discussion.
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The Review Meeting
• Be prepared and set the right tone.
• Respect confidentiality of the review discussion when possible. If unlimited confidentiality cannot be promised, advise employee accordingly.
• No cell phones, no emails, no text messaging, no electronic devices, no interruptions!
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The Review Meeting
• Handle dissent professionally — disagreements should be noted as a matter of record.
• Don’t exhibit defensiveness — if employee criticism is justified due to management failure or lack of resources, accept and move on to next area of review.
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The DifficultReview Meeting
Difficult evaluations:
• Describe unsatisfactory performance/behavior
• Cite specific observed examples:
◦ Past incidents
◦ Lack of meeting goals
◦ Impact on employee, team, customer, department, et al.
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The DifficultReview Meeting
• Solicit a constructive employee action plan to resolve or ameliorate the performance failures or behavioral issue.
• Review action plan and establish milestone date(s) to review progress.
• Try to end on a positive note.
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Performance Goal Settingand Planning
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Goal Setting Standards
• Define and establish specific goals/objectives for the review period.
• Create mutually agreed upon timelines of break-out data for progress reports on goals and objectives.
• Communicate changes or redirection of goals and objectives in a timely manner.
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Goal Setting Standards
Use SMART goal criteria:S pecificM easurableA chievableR elevantT ime-bound
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Goal Setting Standards
• Align goals with the organization’s business plan.
• Establish mutually agreed upon goals which add value to the business.
• Recommend and recognize behaviors that are aligned with organizational business plans.
• Establish milestone review dates.
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Appraisal Forms
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The PerformanceManagement Method
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The Performance Management Method
• Establish expectations:
◦ Policy and procedure expectations
◦ Job performance expectations
◦ Establish specific goals
• Provide and document ongoing performance feedback:
◦ Formal and informal coaching:“Great Job!!!”
◦ Formal and informal counseling:“Need some improvement”
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The Performance Management Method
• Recognize performance management is a continuing process to assist everyone in enhancing performance and development.
• Establish milestone dates for periodic monitoring of performance objectives and progress reports in objective terms.
• Be aware of the potential for goals/objectives to be changed or re-targeted during the review period.
◦ Take corrective action when necessary.
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The Performance Management Method
• Maintain open communication channels to ensure that issues are elevated quickly and resolved expeditiously.
• Coach, assist and/or re-direct employees who request assistance and who are failing to meet standards.
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Summary
Performance Management includes:
• Performance PLANNING
• Performance REVIEW
• Performance GOALS
Questions? Comments?
For additional questions, please don’t hesitateto contact me:
Cheryl Lea Reed, MAM, SPHR, GBA
Department Head HR Operations, Human Resources
GuideStone Financial Resources
214-720-4783 office
214-608-8174 cell
214-720-4777 fax
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Thank You!!!!!
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