PROF.DR MELODINA C.

ESTEBAN PRESENTED BY: MOHSEN GHADAMI

HIGH PERFORMANCE MANAGEMENT

CHAPTER 7

REVIEWING AND SUPPORTING PERFORMANCE

The Role of the line manager

The potential advantages of line manager involvement in learning and development has long been recognised. The line manager is in a unique position to reinforce learning from management training or other forms of development, by integrating them into an employees working life and promoting a positive approach to these types of activities. So how should a line manager be involved in their staffs management training and development?

The Role of the line manager

1. The first area of involvement is for the line manager to set clear expectations with their staff, both in terms of what they need to deliver (job responsibilities, targets etc) and how they are expected to deliver these things (approach, behaviour at work, etc). 2. The next area of involvement is conducting performance appraisals and agreeing personal development plans, i.e. measuring the gap between what an individual delivers (and how they do it) and what is needed. 3. In agreeing personal development plans line managers should not just ask What are this persons weaknesses? but should also ask Where will learning and development add the greatest value to their performance?

The Role of the line manager

4. Line managers should understand the breadth of learning and development interventions that are available to them. For example, too many turn to the ubiquitous Management Training Course , or Presentation Skills Course , when in reality there are hundreds of development actions that an individual can take from reading a book to learning to play chess. 5. Line managers should also take on more of a coaching role with their staff. Significant relationships exist between the effective provision of coaching and guidance by the line manager and levels of employee satisfaction, commitment and motivation. 6. Finally, to be truly effective line managers need to understand their role as a sponsor of an individual s or team s learning and development. For example, it sends completely the wrong message to someone if a manager asks them to attend a management training course but then prevents them from attending some or all of it.

The Role of the line manager

As a sponsor, the line manager should:

Invest time, energy and enthusiasm in their employees development. Demonstrate public commitment to management training and development by walking the talk. Sanction any hindrance or blocking behaviour from employees reference their learning and development. Be clear with their teams the importance of management training and development in raising standards and performance. Recognise successes

Performance Review (Appraisal) :

A performance appraisal, employee appraisal, performance review, or (career) development discussion is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost, and time) typically by the corresponding manager or supervisor . A performance appraisal is a part of guiding and managing career development .It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgement of an employee's performance in a job based on considerations other than productivity alone.

 Steps in performance appraisal

Establishing job standards
Designing an appraisal program

Appraise performance
Performance interview

Use appraisal data For appropriate purpose

Essentials of an effective appraisal system

Mutual trust Clear objectives Standardizations Training Job relatedness Documentation Feedback and participation Individual differences Post appraisal review Review and appeal

Generally, the aims of a performance appraisal are to: - Give employees feedback on performance - Identify employee training needs - Document criteria used to allocate organizational rewards -Form a basis for personnel decisions: salary increases, promotions , disciplinary actions , bonuses, etc. - Provide the opportunity for organizational diagnosis and development - Facilitate communication between employee and employer - Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements. - To improve performance through counselling, coaching and development.

Measure Performance
Measurement systems need to be: Specific Fair Consistent Clear Useful

Document Performance Make sure documentation is objective Document performance of all employees Provide complete and accurate information Document performance on a

Set Goals.
Based on job requirements Realistic Measurable Observable Challenging Prioritized

Key Points to Remember

You must conduct objective appraisals on a scheduled basis. Appraisals tell employees how theyre doing and how they can improve. Appraisals help create a system of motivation and rewards based on performance.

Performance Management
An iterative process of goal-setting, communication, goalobservation and evaluation to support, retain and develop exceptional employees for organizational success. success.

Set Goals

Communicate

Evaluate

Observe

Five keys to managing for high performance

1. Set high expectations 2. Make sure expectations are clear and agreed upon 3. Establish line of sight between individual performance and organizational goals 4. Provide consistent, timely feedback 5. Play to strengths

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Performance management tools

Reward systems: Pay, bonuses Promotions Training, cross-training Coaching Performance reviews Other formal, informal feedback Selection of partners, teammates

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Giving and Receiving Feedback

Process of Performance Appraisal is incomplete without the feedback given to the employee about his appraisal and his performance. But the way of giving as well as receiving the feedback differs from person to person and their way of handling and their

What is the Feedback:

information about performance or behaviour that leads to action to affirm or develop that performance or

Purpose of Feedback

How can we expect people to change and develop if they dont know what they need to change? Unless they get feedback, how do they know what they do well so they can continue doing it?

Rules of Giving Feedback possible TIMELY: given as close to the event as

(taking account of the persons readiness etc) SELECTIVE: addressing one or two key issues rather than too many at once BALANCED: good and the bad
SUGGESTIONS not PRESCRIPTIONS

DESCRIPTIVE, non-judgemental, based on behaviour and personality

"I notice that you dont look at people when they are talking to you". "I think your selfish in that you dont listen to anyone else".

 SPECIFIC or focussed; In order to focus developmental feedback:

Avoid personal comments Avoid Mixed Messages Avoid diffusion

 What is my intention behind giving this person feedback? How am I feeling about giving it? How is the other person feeling; if they have had a

But before you give always ask yourself: feedback

Rules for Receiving Feedback

Listen carefully to what is being said People should be receptive to feedback and see it as helpful. Dont reject it! Accept positive feedbackdont reject it! Accept negative feedback...dont reject it! Avoid arguing or being defensive. Ask questions to clarify fully and seek examples is useful. Acknowledge the giver of feedback and show his or her appreciation. The feedback may not have been easy to give. Involve mutual good will receiver should feel that the giver isnt their enemy giver needs to want to help receiver develop.

Performance related Pay

Performance pay schemes link pay to a measure of individual, group or organisational performance. There is a wide variety of methods used, but all schemes assume that the promise of increased pay will provide an incentive to greater performance.

The most common types of performance pay

Piecework: a price is paid for each unit of output; this is the oldest form of performance pay. Payment by results: bonus earnings depend on measured quantities or values of output for individuals or groups, usually based on work studied time units; this covers a wide range of bonus schemes. Plant or organisation wide incentives: bonus earnings or pay levels are based on measured quantities or values for the whole establishment. Merit pay: bonus earnings or pay levels are usually based on a general assessment of an employee s contributions to performance; this is an earlier, less structured form of the next system. Merit Pay Program (merit raise) Links an increase in base pay to how successfully an employee achieved some objective performance standard. Motivation Through Merit Raises Develop employee confidence and trust in performance appraisal. Establish job-related performance criteria. Withhold merit payments when performance declines.

Performance related pay: bonus earnings or pay levels are based on an assessment or appraisal of an employee s (or team s) performance against previously set objectives, usually part of a performance management system; this is a fairly recent development, particularly in the public sector, which has grown sharply in use since the 1980s. Competence based pay: reward and training are linked to competency frameworks, based on the worker demonstrating certain skills (e.g. Problem solving, decision making, leadership, customer service, dealing with differing views) or achieving certain qualifications. Profit related pay: bonus or share options are based on the organisation s profit performance; this is widespread in the private sector, where share options are often important for senior managers. Profit related pay has become less common since the government phased out tax relief on PRP schemes.

The key to all performance pay systems The key to all performance pay systems is the measurement required to determine the output on which to base payments. The main steps are: Setting objectives Appraisal results Linking achievements to pay Why do employers introduce performance related pay? to clarify objectives and engage employees with the organisation s goals to motivate employees by linking pay to achievement of targets not length of service to reward achievement and identify under performance; foster teamwork and fairness. to contribute to overall improvements in productivity; to introduce more flexible pay systems or deal with recruitment and retention problems in the case of some employers, to give greater power to managers and weaken trade union influence in bargaining and representation of staff.

Problems of Performance Related Pay Schemes

Staff motivation and moral A wide range of research has found schemes less effective than expected. In the public sector this is frequently due to cash limits making rewards for high performance ratings too small to motivate staff. Problems of poor training for managers and inadequate communication with staff have had a negative impact on staff morale. Fairness -- Because performance related pay systems are based on appraisal of the individual worker, often by their line manager, bias and personal favouritism can influence the result of pay reviews. Instead of motivating workers, performance pay can undermine performance of both the individual and the organisation by undermining team work, encouraging a short term focus and leading people to believe that pay is not related to performance, but to having the right relationships and an ingratiating personality . Discrimination Recent research found that performance based pay systems often discriminate against women because: the appraisal process is subject to gender bias and stereotypes; women s skills are often undervalued by their managers (and by women themselves); women especially those working part time -- have fewer opportunities for training, and managers are less likely to correctly assess women s training needs. Performance pay may run counter to the development of objective, gender neutral job evaluation schemes which are being introduced to achieve equal pay for work of equal value.

Basic Consideration in applying Performance Related Pay

Negotiability on objective and design There should be trade union involvement from the start, with input on who should be included/excluded from the scheme; the relationship between employment and pay; how the scheme will operate, including joint monitoring and the appeals procedure. Transparency - The basis for appraisal and how rewards are arrived at should be transparent at both the individual and collective level. Fairness in operation - There should be a fair and equitable approach to the way the scheme is carried out for all staff. In competence pay schemes, all staff should have equal access to training. Piloting - The scheme should be piloted to ensure that it achieves its objectives and does not operate unfairly. Adequate appraisal Sufficient time should be available to managers to carry out any appraisals. The workload implications can be considerable, especially for a complex scheme. Training Training should be available for all managers and staff.