chapter 7 implementing a performance management system
TRANSCRIPT
Herman Aguinis, University of Colorado at Denver
IMPLEMENTING A PERFORMANCE MANAGEMENT
SYSTEM
Prof. Preeti Bhaskar
Symbiosis Centre for Management Studies, NOIDA
Herman Aguinis, University of Colorado at Denver
Preparation
• Need to gain system buy-in through:–Communication plan regarding Performance
Management system• Including appeals process
–Training programs for raters–Pilot testing system
• Ongoing monitoring and evaluation
Herman Aguinis, University of Colorado at Denver
Communication Plan answers:
• What is Performance Management (PM)?• How does PM fit in our strategy?• What’s in it for me?• How does it work?• What are our roles and responsibilities?• How does PM relate to other initiatives?
Herman Aguinis, University of Colorado at Denver
Cognitive Biases that affect communications effectiveness
• Selective exposure• Selective perception• Selective retention
Herman Aguinis, University of Colorado at Denver
To minimize effects of cognitive biases:
A. Consider employees:• Involve employees in system design• Show how employee needs are met
Herman Aguinis, University of Colorado at Denver
To minimize effects of cognitive biases:
B. Emphasize the positive• Use credible communicators• Strike first – create positive attitude• Provide facts and conclusions
Herman Aguinis, University of Colorado at Denver
To minimize effects of cognitive biases:
C. Repeat, document, be consistent
• Put it in writing• Use multiple channels of
communication• Say it, and then – say it again
Herman Aguinis, University of Colorado at Denver
Appeals Process
• Promote Employee buy-in to PM system–Amicable/Non-retaliatory –Resolution of disagreements
Herman Aguinis, University of Colorado at Denver
Appeals Process
• Employees can question two types of issue:–Judgmental
• (validity of evaluation)
–Administrative• (whether policies and procedures were
followed)
Herman Aguinis, University of Colorado at Denver
Appeals Process
• Level 1– HR reviews facts, policies, procedures– HR reports to supervisor/employee– HR attempts to negotiate settlement
• Level 2– Arbitrator (panel of peers and managers)
and/or– High-level manager – final decision
Herman Aguinis, University of Colorado at Denver
Rater Training Programs
• Content Areas to include– Information– Identifying, Observing, Recording, Evaluating– How to Interact with Employees
• Choices of Training Programs to implement– RET– FOR– BO– SL
Herman Aguinis, University of Colorado at Denver
Content
A. Information - how the system works–Reasons for implementing the
performance management system– Information
• the appraisal form• system mechanics
Herman Aguinis, University of Colorado at Denver
Content
B. Identifying, observing, recording, and evaluating performance–How to identify and rank job activities–How to observe, record, and measure
performance–How to minimize rating errors
Herman Aguinis, University of Colorado at Denver
Content
C. How to interact with employees when they receive performance information–How to conduct an appraisal
interview–How to train, counsel, and coach
Herman Aguinis, University of Colorado at Denver
Choices of Training Programs
• Rater Error Training (RET)• Frame of Reference Training
(FOR)• Behavioral Observation Training
(BO)• Self-leadership Training (SL)
Herman Aguinis, University of Colorado at Denver
Rater Error Training (RET)
• Goals of Rater Error Training (RET)–Make raters aware of types of rating
errors–Help raters minimize errors– Increase rating accuracy
Herman Aguinis, University of Colorado at Denver
Intentional rating errors
• Leniency (inflation)• Severity (deflation)• Central tendency
Herman Aguinis, University of Colorado at Denver
Unintentional rating errors
• Similar to Me• Halo• Primacy • First impression• Contrast
• Stereotype• Negativity• Recency• Spillover
Herman Aguinis, University of Colorado at Denver
Possible Solutions for Types of Rating Errors
• Intentional–Focus on motivation–Demonstrate benefits of providing
accurate ratings• Unintentional
–Alert raters to different errors and their causes
Herman Aguinis, University of Colorado at Denver
Frame of Reference Training (FOR)
• Helps improve rater accuracy by thoroughly familiarizing rater with the various performance dimension to be assessed.
• Raters develop common frame of reference• Observing performance• Evaluating performance
*Most appropriate when PM appraisal system focuses on behaviors
Herman Aguinis, University of Colorado at Denver
Frame of Reference Training (FOR) includes following steps
• Discussion of the job description for the individuals being rated and duties involved.
• Rater are familiarized with the performance dimension and discuss the example of good average and poor performance.
• Raters are asked to rate factious employee shown in written or videotaped
• Rater are asked to assign rating and justification for the ratings.• Finally trainer informs raters about correct rating for each
dimension and reason for such ratings then discuss the difference between correct ratings and rating provided by rater
Herman Aguinis, University of Colorado at Denver
Behavioral Observation Training (BO)
• Training Includes-:
– Minimize unintentional rating errors– Improve rater skills by focusing on how raters:
• Observe performance• Store information about performance• Recall information about performance• Use information about performance
Showing rater how to use observational aids such as notes or diaries .
Herman Aguinis, University of Colorado at Denver
Self-leadership Training (SL)
• Training Programs Include-:– Improve rater confidence in ability to manage
performance–Techniques include positive talk, positive
mental processes and positive thought process
If there is self direction ,self motivation and confidence there will be increased accuracy
Herman Aguinis, University of Colorado at Denver
Pilot Testing
• Provides ability to –Discover potential problems–Fix them
Herman Aguinis, University of Colorado at Denver
Pilot Testing - benefits
• Gain information from potential participants• Learn about difficulties/obstacles• Collect recommendations on how to improve • Understand personal reactions• Get higher rate of acceptance
Herman Aguinis, University of Colorado at Denver
Implementing a Pilot Test
• Roll out test version with sample group• Fully implement planned system
– All participants keep records of issues encountered– Do not record appraisal scores– Collect input from all participants
Herman Aguinis, University of Colorado at Denver
Ongoing Monitoring and Evaluation
• When system is implemented, decide:–How to evaluate system effectiveness–How to measure implementation–How to measure results
Herman Aguinis, University of Colorado at Denver
Evaluation data to collect:
• Reactions to the system• Assessments of requirements
– Operational– Technical
• Effectiveness of performance ratings
Herman Aguinis, University of Colorado at Denver
Indicators to consider
• Number of individuals evaluated• Distribution of performance ratings• Quality of information• Quality of performance discussion meetings• System satisfaction• Cost/benefit ratio• Unit-level and organization-level
performance
Herman Aguinis, University of Colorado at Denver
PERFORMANCE MANAGEMENT AND
EMPLOYEE DEVELOPMENT
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Stakeholders in the Development Process
• Employees – Help plan their own development– Improve their own performance
• Managers– Help guide the process of development – Support success of process
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Personal Developmental Plans
• Specify actions necessary to improve performance
• Highlight employee’s –Strengths–Areas in need of development
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Personal Developmental Plans answer:
• How can I continuously learn and grow in the next year?
• How can I do better in the future?• How can I avoid performance
problems of the past?
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Personal Developmental Plans:Overview
• Developmental Plan Objectives• Content of Developmental Plan• Developmental Activities
Prentice Hall, Inc. © 2006
Overall Developmental Plan Objectives
• Encourage:– Continuous learning– Performance improvement– Personal growth
Herman Aguinis, University of Colorado at Denver
Specific Developmental Plan Objectives
• Improve performance in current job
• Sustain performance in current job
• Prepare employee for advancement
• Enrich employee’s work experience
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Content of Developmental Plan
• Developmental objectives– New skills or knowledge– Timeline
• How the new skills or knowledge will be acquired– Resources– Strategies
• Standards and measures used to assess achievement of objectives
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Content of Developmental Plan
• Based on needs of organization and employee
• Chosen by employee and direct supervisor
• Taking into account– Employee’s learning preferences– Developmental objective in question– Organization’s available resources
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Developmental Activities ‘On the job’
• On-the-job-training• Mentoring• Job rotation• Temporary assignments
Prentice Hall, Inc. © 2006
Developmental Activities In addition to ‘on the job’
• Courses• Self-guided reading• Getting a degree• Attending a conference• Membership or leadership role
– in professional or trade organization
Herman Aguinis, University of Colorado at Denver
Direct Supervisor’s Role:
• Explain what is necessary • Refer employee to appropriate
developmental activities • Review & make suggestions
regarding developmental objectives
• Check on employee’s progress • Provide motivational reinforcement
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
360-degree Feedback Systems
Tools to help employees
• Improve performance by using • Performance information • Gathered from many sources
– Superiors– Peers– Customers– Subordinates– The employee
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
360-degree Feedback Systems
• Anonymous feedback• Most useful when used
– For DEVELOPMENT – NOT for administrative purposes
• Internet used for collecting data
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Advantages of 360-degree Feedback Systems
• Decreased possibility of biases• Increased awareness of expectations• Increased commitment to improve• Improved self-perception of
performance• Improved performance• Increased employee control of their
own careers
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Risks of 360-degree Feedback Systems
• Unconstructive negative feedback hurts.
• Are individuals comfortable with the system? User acceptance is crucial.
• If few raters, anonymity is compromised.
• Raters may become overloaded.• Stock values may drop.
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Characteristics of a Good 360-degree Feedback System
• Anonymity• Observation of employee
performance• Used for developmental purposes only• Emphasis on behaviors• Raters go beyond ratings• Feedback interpretation• Follow-up
Prentice Hall, Inc. © 2006
Herman Aguinis, University of Colorado at Denver
Thank You