pms refresher

8/2/2019 PMS Refresher

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Performance Management

Systems

Refresher


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Agenda

SEC 1: THE CONTEXT FOR PMS

SEC 2: THE PMS PROCESS

SEC 3: DESIGN & IMPLEMENTATION

SEC 4: PMS: EMPLOYEE DEVELOPMENT


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Performance Management Systems

Performance Management

Continuous process of identifying, measuring and

developing the performance of individuals and

teams and aligning the performance with thestrategic goals of the organizations


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Performance Management Systems in

Context

Purpose of PMS

Strategic purpose (To help achieve objectives)

Administrative purpose (To decide)

Informational purpose (For employees)

Developmental purpose (To improve)

Org. maintenance purpose (To replenish)

Documentation purpose (For record)


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Context

Advantages of a Good PMS

Increased motivation, self-esteem

Performance-Reward link made clear

Goal Achievement clarified

Managers gain insight

Self-insight and development enhanced

Supervisors views communicated more clearly

Org. change is facilitated


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Context

Disadvantages of badly administrated PMS

(Unfair standards and ratings, emerging biases, unclearrating systems)

Lowered self-esteem, wasted time and money Damaged relationships, decreased motivation to

perform

Increased turnover, use of misleading info.

Employee burnout, job dissatisfaction Increased risk of litigation, unsatisfied demands on

resources


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Context

Characteristics of PMS

Strategic congruence -- Thoroughness

Practicality -- Meaningfulness

Specificity -- Ethicality

Reliability -- Validity

Acceptability -- Fairness, Inclusiveness

Openness -- Correctability

Standardized


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PMS: Relevant Theories

Adams Equity Theory

Vrooms Expectancy Theory

McClelland's Achievement Motivation Theory Hollands Job Characteristics Model


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PMS PROCESS


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Performance Management Process

Process

PrerequisitesPerformance

PlanningPerformanceAssessment

PerformanceAppraisal/

Review

PerformanceRenewal & Re-

contracting

Feedback

Prerequisites of PMSKnowledge of strategic goals

Knowledge of jobs in question


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PMS - Strategic Planning

LinkingPerformanceManagementto Strategic

Plan

Org. Strategic

Plan Mission

Vision

Goals

Strategies

Unit StrategicPlan

Mission

Vision

Goals

Strategies

Job

Description Tasks

Knowledge

Skills

Abilities

Individual andTeamPerformance

Results

Behaviors

Developmental

Plan


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Performance Planning

Results, Behaviors, Development Plan

Performance ExecutionEmployees Managers

Commitment to goal

achievement

Observation and

documentation

Ongoing performance

feedback and coaching

Updates

Communication with

supervisor

Feedback

Collecting and Sharing

supervisor data

Resources

Preparing for performance

reviews

Reinforcement


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Performance Assessment

Both employees and managers are responsible forevaluating the extent to which desired behaviors havebeen displayed/desired results achieved

Performance Appraisal/Review

Performance Appraisal/Review is systematicdescription of employees strengths and weaknessesand is developmental in nature

Performance Renewal and Re-contracting

Acts as feedback and sets goals for next cycle


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PMS DESIGN & IMPLEMENTATION


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Defining performance and choosing a

measurement

Defining performance

About behavior and what employees need to do

Determinants of performance

Declarative Knowledge (Info about facts andthings: task requirements, principles, goals)

Participative Knowledge (Info of knowing what todo and how to do it: cognitive, physical ,interpersonal skills)

Motivation (Choice to expend effort, level ofeffort, choice to persist)


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Defining performance and choosing a

measurement

Performance Dimensions

Task performance (Basic requirement)

Contextual performance (Additional/Peripheral)

Approaches to performance managementApproach What is measured When is it used

Trait Approach Traits of employees Less used. Used when allocation of

personnel based on traits needs to be done

Behavior

Approach

What employees do on the

job

Link between behavior and results not clear,

Outcomes distant, Poor results due to

uncontrollable factor

Results

Approach

Results on the job Skilled workers, behaviors and results

related, results show improvement overtime, many ways to do the job correctly


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Measuring Results and Behaviors

Measuring Results (The results approach)

Need to ask the questions

Where all should the person focus?

What are the expected objectives in each area?

How do you measure the results success?

Determining accountabilities

How is time divided across accountabilities? The importance of each accountability?


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Determining objectives

Accomplishment of objectives will ensure success for

accountabilities

To be useful, objectives need to be:Specific and Clear Challenging

Agreed Upon Significant

Prioritized Time-bound

Achievable Fully communicatedFlexible Limited in number


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Determining performance standards

Standards need to be set

Can be set according to quantity, quality, time

Good performance standards need to be:

Related to the position

Concrete

Specific

Measureable

Practical to measure Meaningful

Realistic

Achievable

Reviewed regularly


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Measuring Behaviors (The behavior approach)

Need to assess competencies

Indicators prove whether competency is present

or not

Two types of systems: Comparative and Absolute

Absolute Comparative

Essays Simple Rank Order

Behavior Checklists Alternation Rank Order

Critical Incidents Paired Comparisons

Graphic Rating Scales Forced Distribution


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Comparative Systems:

Mostly compare with others and with standards

Easy to explain, resulting data easy to interpret

Employees usually compared on overall scores

rather than in specific categories

Hence, feedback is usually less useful


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Absolute Systems:

Essays: Difficult to quantify, produce useful and detailedfeedback

Behavior Checklists: Easy to use and understand, scalepoints are arbitrary, rendering same point differences non-consistent across the scale

Critical incidents: Allows supervisors to focus on actual jobbehaviors rather than on vaguely defined traits; can be time-

consuming, BARS is an off-shoot

Graphic Rating Scales: Most frequently used, requirement:meaning of each response category should be clear,dimension should be defined clearly, individual should beable to tell what response was intended


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Objectives of BARS

Assess performance in terms of specific behaviors that arecritical to the job, rather than in terms of general traits orabstract constructs.

Eliminate the use of potentially misleading numerical andvolume measures that are not readily interpretable.

Reduce rater bias and error by anchoring the rating withspecific behavioral examples based on job analysis

information.

Minimize evaluators' impreciseness, subjectivity and failureto identify the essential functions of the job.


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BARS Scale : Communication Skills


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Gathering Performance Information

Appraisal forms

Basic employee info

Accountabilities, objectives and standards

Competencies and indicators Major achievements and contributions

Developmental achievements, needs, plans andgoals

Stakeholder input

Employee comments

Signatures


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Gathering Performance Information

Determining Overall Rating

Judgmental (Subjective) : Consider all aspects and

using essay type summary

Mechanical (Objective): Uses weightages and

scores related on goal/performance dimensions Sources of information

Supervisors

Peers

Subordinates Self

Customers

To ensure objectivity, it should be decided as to which source should

rate what dimension

Implementing a Performance


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Management System Planning a Performance Management System

Communication Plan Information regarding PMS is widely disseminated across

organization

Answers FAQs about the PMS, such as how it fits into thestrategy, how it works, how is it linked to other initiatives

To remove biases, one should: involve employees,understand their needs, provide facts, be quick, put it inwriting, use multiple channels of communication, crediblecommunicators

Appeals Process

Important for addressing disagreements in ratings ordecisions

Increases perceived fairness

Possible issues: Judgmental (Based on validity of rating) andadministrative (Whether policies and procedures were

followed)



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Management System Planning a Performance Management System

Training Programs

Unintentional errors occur due to the complexity of task

Rater error training

Frame of reference training

Behavioral observation training

Self-leadership training

Areas for including in training programs Reasons for implementing training

programs

How to minimize rating errors Info on appraisal form and system

mechanicsHow to conduct an appraisal interview How to identify and rank job activities

How to train, counsel and coach How to observe, record and measure

performance



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Management System

Reasons for rating distortion (done on purpose)

Such grievances can be cause of attrition or degenerative

conflicts leading to loss of productivity

Transparency and Openness should be there in the system to

identify issues and rectify them

Rating Inflation Rating Deflation

Maximize the merit rewards Shock employees

Encourage employees Teach rebellious employee a lesson

Avoid creating a written record Send a message to make the employee leave

Avoid a confrontation Build a record of poor performance

Promote undesirable out of department

Make manager look good



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Management System

Planning a Performance Management System Pilot Testing

Used to remove potential glitches

Corrective action to be taken

Results are not recorded to employees records

Monitoring and Evaluation

Measurement system needed for evaluation

Measures such as confidential employee surveys Other measures such as: Quantity of individuals

evaluated, quality of information gathered, user

satisfaction with system, cost/benefit ratio


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Normalization

Normalization using forced distribution curve

To differentiate clearly between different levels of

performance

To control the compensation budgets

Normalization across raters

Different raters in the organizations may rate same

performance differently (some give higher scores, someless)


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Example of Normalization using forced

distribution

First step is determination of the distribution

E.g.

Rating 1 - 10% of employees

Rating 2 - 30%

Rating 3 40%

Rating 4 - 20%

It can be the responsibility of either the departmentmanager or the HR or both to moderate the initial ratings

of appraisal and redistribute the ratings to get the decidednormal distribution

Redistribution or moderation is done by thorough re-evaluation of the candidates and the ratings given


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Example of Normalization across raters

Say there are 2 teams, one rated by A, other by B

A rates 5 people below him as : 3, 5, 4, 3, 4

B rates 4 people below him as : 2, 3, 2, 4

Rater Normalization Process:Rating Average of A = 19/5=3.80

Rating Average of B = 11/4=2.75

Overall Average=30/9=3.33

Normalization factor for A=(3.33/3.80)=0.876

Normalization factor for B=(3.33/2.75)=1.211

Normalized ratings for team A : 2.68, 4.38, 3.5, 2.68, 3.5

Normalized ratings for team B : 2.42, 3.63, 2.42, 4.84


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PMS FEEDBACK & DEVELOPMENT

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PMS: Feedback and Employee Development

Personal Developmental Plans

Specify course of action to improve performance

Developmental Plan Objectives

Improve performance in current job

Sustain performance in current job

Prepare employees for advancement

Enrich employees work-ex

Content of Plan

Specific objectives to be reached, description of steps to be taken,

duration, how supervisor will know

Developmental ActivitiesSummary list of developmental activities OJT training

Courses Self-guided reading

Mentoring Attending a conference

Getting a degree Job rotation

Temporary assignments Membership/leadership roles

PMS Feedback and Employee Development


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PMS: Feedback and Employee Development

360-Degree Feedback Systems

Advantages

Decreased possibility of biases Increased awareness of expectations

Increased commitment to improve Improved self-perceptions of performance

Improved performance Reduces undiscussables

Employees are enabled to take control of their careers

Characteristics of a good system

Anonymity Avoidance of survey fatigue

Observation of performance Emphasis on behaviors

Feedback of interpretation Raters go beyond ratings

Follow-up Raters are trained

Used for developmental purposes only

DisadvantagesNegative feedback may hurt feelings System requires user comfort

Anonymity may be compromised in case of small no. of raters Raters may be overloaded

Only once will not work

S C hi


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PMS: Coaching

Coaching

Collaborative, ongoing process

Involves directing, motivating and rewarding employee behavior

Coaching Styles: Driver, Persuader, Amiable and Analyzer

Major functions Key behaviors

Give advice Provide guidance Establish objectives Communicate

effectively

Give support Give confidence Document

performance

Motivate employees

Promote greatercompetence

Give feedback Diagnose performanceproblems

Develop employees


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Coaching process

Set

Developmentalgoals

IdentifyDevelopmentalResources and

Strategies

ImplementStrategies

Observe andDocument

Developmentalbehavior

Feedback

Recommendations for documentation

Be specific Use adjectives and

adverbs

Balance positives Focus on job-related

info

Be comprehensive Standardize

procedures

Describe observable

behavior

Feedback should be

Timely Frequent Specific Verifiable

Consistent Private Consequential Descriptive, then

evaluative

Related to

performancecontinuum

Based on identifiable

patterns ofperformance

Confidence builder Tool for generating

advice and ideas


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Thank You

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