Performance Management for the Employees

What is Performance Management?

A Primary Management Function for all Managers and Supervisors

Performance management is an ongoing communication process, undertaken in partnership, between an employee and his or her immediate supervisor that involves establishing clear expectations regarding job functions, organizational goals (and relationship to), performance feedback, performance measurement, barrier removal, and continuous improvement. Bacal, Robert. Performance
Management. New York: McGraw-Hill. 1999.
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Why Performance Management?

Why so Important?
People are the most strategic asset and the greatest investment Delivery of all organizational goals and mission depends on people

Performance Management Directly Impacts:

Employee Retention, Engagement, and Commitment Employee Productivity and Efficiency (all levels) Process Performance Service Excellence, Patient Satisfaction, and Community Image

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Performance Management Quotes

What High-Profile Business Leaders Have Said

My main job was developing talent. I was a gardener providing water and other nourishment to our top 750 people. Of course, I had to pull out some weeds, too. (Jack Welch) Endeavors succeed or fail because of the people involved. (Colin Powell)

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Performance Management Quotes

Dealing With Poor Performance I feel that there is no greater disrespect that you can do to a person than to let them hang out in a job where they are not respected by their peers, not viewed as successful, and probably losing their self-esteem. To do that under the guise of respect for people, is to me, ridiculous. (VP Strategy and Corporate Relations Hewlett Packard)

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Eight Key Elements of Performance Management

Additional Emphasis

1. 2. 1. 2. 1. 1. 2. 1.

Goal-setting (for new or established employees) Motivation Monitoring Performance Gap Closure and Improved Performance Coaching Performance Appraisals Development Addressing Intractable Performance Problems
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Goal-Setting
Goals are not job description activities
Goal provide the reason for activities. All activities should be linked to a specific goal or goals.

While all are important, should be prioritized (e.g. service vs. efficiency) accurately measured Goals must berecognized as important (by owner), clear, specific, measurable, timely, aligned with strategy, achievable but challenging, supported by appropriate and meaningful rewards (must be a meaningful stake in the outcome for the employee).

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Individual Goal-Setting (Cont.)

How to set goals with employees Discuss goals with employee. Obtain agreement (2-way)
Clarify importance (reason for) of goals Dialogue How To Aspect Adjust participation according to KSA and employee level

Record Goals (copy for manager and employee)

Develop action plan (best driven by employee) Record date of meeting, the goals (and targets), the actions, resources (coaching, training, other), date of next assessment.

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Monitoring Performance
Beyond the foundations

Observe and gather data Avoid premature judgments or assumptions Consider other sources of information (validate with peers) Attempt to differentiate between skill and/or motivation issues Examine yourself. Managers may hinder performance by micromanaging the how, providing insufficient resources, not being available, or setting unclear or unrealistic time frames. Poorly designed processes may also contribute.
Periodically Step into their shoes (spend time in their work area)
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Coaching Basics:
Practical Suggestions 1. Most powerful and readily available (ideally) tool in performance management 2. May address either performance or skill gaps 3. Can be delegated to others Coach the coach, especially for skill training (leverage) 4. Best weighted towards employees with potential for growth or on verge of promotion to new role
Secondary Benefit: Causes the employee to be valued. Meets need for growth and challenge.
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Coaching Basics (Cont.) Practical Suggestions

5. Let new hires know to expect coaching as a normal part of management process. 6. Recommend creating a custom Coaching Opportunity List of your subordinates. 7. Build agreement as to the need for coaching beforehand.
Performance Gap Next Level knowledge

8. Follow-up action plans

With input from the employee
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Coaching (Cont.)
Situational Leadership Model
S H I G H i t u a t i o n a l L e a d e r s h i p M o d e l ( H H i g h C o m p e St e nm c e C o m p e t e n c e o e V a r i a b l e S o m e C o m m i t m e n t o m m i t m e n t C ( 3 ) ( 2 )

S U P P O

R T IC N O G A C H I N

PRIME COACHING STAGE

e r s e y ,

l a n

S u p p o r t in g B e h a v io r

H i g h C o m p e tL e o n w c e C o m p e t e n c e H i g h H i g h C o m m i t m e n t o m m i t m e n t C ( 4 ) ( 1 )

D E L E G A T I DN I GR E C T I N

L O

W L O W D i r e c t i n g B e h Ha vI G o Hr i

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Coaching (Cont.)
Important Considerations

1. 2. 3. 4.

Climate: Mutual trust, accountability, and growth Keep focus of feedback on future Provide timely feedback Focus on specific behaviors or metrics, not character, attitudes, or personality 5. Be specific E.g. Praise vs. Positive Feedback

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Motivating Employees
Extrinsic Rewards vs. Intrinsic Rewards
1. Extrinsic more commonly focused on by administrators (e.g. pay)
Most effective for recruiting Growth opportunities, meaningful work, teamwork, positive work environment.

1. Intrinsic more powerful and readily available Extrinsic dissatisfaction may be (but not always) rooted in lack of intrinsic reward.
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Intrinsic and Extrinsic Drivers

Key Drivers of Overall Satisfaction

1. 2. 1. 2. 3. 4.

Benefits and Compensation Job Security Communication With Management Work/Life Balance Relationship With Supervisor Career Development Opportunities

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10 Practical Ways to Motivate and Retain Strong Performers

Source: Harvard Business Essentials. Performance Management, 2006.

1. Demonstrate trust 2. Make jobs more complete 3. Introduce challenge 4. Encourage some to become experts 5. Drive out fear 6. Preserve subordinate dignity 7. Address poor performance 8. Empower others 9. Hire self-motivated people 10. Be a good boss
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Intrinsic Motivation
Four Building Blocks
1. Cultivate meaning awareness
Positive work environment, vision, purpose, relevance, wholeness of tasks Delegated authority, trust, security, clarity, information Knowledge, positive feedback, skill recognition, challenge, standards

1. Develop a sense of choice 1. Develop a sense of competence 1. Develop a sense of progress

Collaboration, milestones, celebrations, access to customers, improvement measures

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Employee Development
A key to retention, particularly for high-potential employees Convergence of:
Company/department goals and objectives Employee aspirations and interests Employee development needs

Assessment tools include communication, learning needs assessment surveys (manager and employee perspective), and KSA inventory databases. Tip: To avoid burning out talented employees, scale up and down (job re-design) when delegating new responsibilities.

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Intractable Performance Problems

Confronting Poor Performance (when all else fails) Confront poor performance
Based on a pattern of observation rather than an isolated event. Directly (and privately) with the individual (not to a group) Be specific about nature of the problem and the ramifications on the organization Listen actively Make specific suggestion or request. Keep a record of what was said and agreements made.
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Intractable Performance Problems

What About C Performers? The Toughest Challenge: C Performers- do just enough to get by
Do not respond to performance management efforts

Manager Barriers: Psychological and Practical Impact of Ignoring C Performers:

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Discredits leadership Block advancement of A and B Performers Poor Role Models/Examples Stifle enthusiasm of new hires and A and B performers Cause good performers to settle or leave C-performers multiply (hire other c-performers)

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Intractable Performance Problems

Steps to Address
Use Iron Hand, Velvet Glove approach Identify A, B, and C Performers directly reporting to you. (multi-rater system and scorecard) Develop action plan with C performers through coaching or performance evaluation process. Hold Managers/Supervisors accountable for improvement and/or removal of their C performers. Look for C Clusters
Manager/Supervisor Issue Process improvement opportunity
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Intractable Performance Problems

When to Dismiss

Dismissal Almost Always Justifiable For:

1. 2. 3. 4. 5. 6. Consistently performing poorly (using objective criteria) on the job Refusing to following instructions Have a persistently negative or destructive attitude Insubordinate behavior/disrespect of authority Abusing sick leave or other privileges Being chronically late or absent

1. 2.

Must be brought to employees attention, be documented, and persist thereafter. Consult your HR Department/legal department for specific HR policies and procedures and/or state laws.
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Recommended Resources
Cole Miller, Brian. Keeping Employees Accountable for Results. New York: American Management Association, 2006. Thomas, Kenneth W. Intrinsic Motivation at Work- Building Energy and Commitment. San Francisco: Berrett-Koehler Publishers Inc. 2000. Harvard Business Review on Appraising Employee Performance. Boston: Harvard Business School Press, 2005. Bacal, Robert. Performance Management. New York: McGraw-Hill. 1999. Mager, Robert F., and Peter Pipe. Analyzing Performance Problems. Atlanta: Center for Effective Performance Press, 1997. Coaching and Mentoring. Boston: Harvard Business School Press, 2004.
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Conclusion
Follow-up Q&A, Contact Information

Q&A Shared Best Practices

Mark E. Robledo President, The Crossroads Group, Inc. Tel. 888-412-0160, Direct 305-412-0160. merobledo@crossroadsgrp.com www.CrossroadsGrp.com/chc.htm
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