Performance Management - THI
Page 1
Title
Business income Performance Quarter 1 Management
Page 2
Workshop Objectives
Examine the importance of managing employee performance for organizational success.
Describe roles of employees and leaders in optimizing performance.
Familiarize with a step-by-step process in managing employee performance.
Conduct systematic performance planning to define clear and motivating performance expectations.
Page 3
Workshop Objectives (Continued)
Evaluate and monitor employee performance objectively and consistently.
Lead a productive performance evaluation and discussion.
Design individual development plans to address performance gaps.
Write meaningful performance evaluation documents for employees.
Page 4
Introduction
Page 5
Introduction Output Behavior
Page 6
Performance Management
An ongoing process for communicating performance to help employees achieve job excellence.
Page 7
Beliefs & Realities About Performance Management
General Belief: Only a past evaluation. Reality: Review for better future results.
General Belief: Remote from facts. Reality: Based on objective evidence.
General Belief: Critical and reactive. Reality: Proactive and supportive opportunity.
Page 8
Mindsets in Managing Employee Performance
Fixed vs Growth Mindset
Page 9
Role of Employee: Yearly Overview
Beginning of Year: Plan and draft goals; gain agreement with supervisor.
End of Year: Document achievements and assess performance with the supervisor.
Page 10
Role of Leader (Manager/Supervisor): Yearly Overview
Beginning of Year: Draft goals collaboratively; gain agreement.
End of Year: Document performance and conduct reviews with employees.
Page 11
Performance Management Cycle
Plan
Monitor
Develop
Measure
Reward
Page 12
Factors for Effective Performance Management Strategy
Leadership buy-in
Continuous process, not annual
Meaningful performance conversations
Technology support
Superior's skills in day-to-day performance management.
Page 13
Performance Planning and Goal Setting
Page 14
Performance Planning
Provides clear direction towards attaining performance objectives.
Collaborative process between employee and superior to define expected outcomes.
Page 15
Elements of Performance Plans
Performance Goals & Objectives
Performance Measures
Performance Standards
Development Goals
Page 16
Sources of Information
Strategic Plans
Departmental Goals for Upcoming Fiscal Year
Previous Year’s Performance Plans and Evaluations
Page 17
Framework for Performance Planning
Examine organizational or departmental goals.
Create performance objectives/strategies.
Determine key performance areas.
Measure performance.
Identify competency requirements and address gaps.
Page 18
Goal
An umbrella statement describing the general purpose of an endeavor.
Page 19
Objectives
Specific statements that describe elements achieving the goal.
Page 20
Criteria for Sound Performance Objectives
SMART: Specific, Measurable, Achievable, Relevant, Time-bound.
PURE: Positive, Unambiguous, Realistic, and Ethical.
CLEAR: Collaborative, Limited, Emotional, Appreciable, and Refinable.
Page 21
Output Behavior
Key Performance Area: General outcomes for which a role is responsible.
Page 22
Performance Measures/Standards
Known as Key Performance Indicators (KPIs).
Measurable values showing how effectively objectives are achieved.
Page 23
Sample Financial Key Performance Indicators
Net Profit
Operating Cash Flow
Total Expenses
Inventory Turnover
Cost per Hire
Sales Volume and Growth
Page 24
Sample Process Key Performance Indicators
Waste %
Scrap Ratios
On-Time Rate
Project Cost Variance
Page 25
Components in Performance Measure
Define intended results.
Identify measures.
Select the right measures for each objective.
Set targets and thresholds.
Document selected performance measures.
Page 26
Identify Competency Requirements
Skills, Knowledge, Ability, Other attributes.
Page 27
Closing Competency Gaps
Identify required competencies.
Evaluate individual standards.
Identify proficiency gaps.
Create development plans.
Page 28
Performance Monitoring and Feedback
Page 29
Performance Monitoring
Ongoing discussions to provide feedback about accomplishments and increase success opportunities.
Page 30
Performance Monitoring Activities
Documentation of outputs and behavior.
Performance discussion and coaching.
Page 31
Documenting Performance
What, when, where, who, and consequences of performance incidents.
Page 32
Documentation Don’ts
Avoid generalities, subjectivity, and vague language.
Page 33
Documentation Do’s
Be accurate, document successes and failures, record facts, and identify witnesses.
Page 34
Types of Feedback
Positive Feedback
Negative Feedback
Page 35
Considerations in Providing Effective Feedback
Timing and frequency
Content
Manner
Page 36
SEED Framework in Performance Conversation
Set agenda, Examine situation, Explore options, Determine actions.
Page 37
Performance Coaching
Relationship with a coach to increase self-awareness, insights, and abilities for performance enhancement.
Page 38
Structuring the Coaching Session
Goal, Reality, Options, Will.
Page 39
Performance and Capability Development
Page 40
SEED Framework in Performance Conversation (Overview)
Strategic and integrated performance improvement for organizational success.
Page 41
Responsibilities of Employee
Identify development goals and activities, discuss with manager, complete assigned activities.
Page 42
Responsibilities of First-Line Manager
Develop needs assessment, guide planning of individual development plan (IDP), evaluate training outcomes.
Page 43
Analyzing Performance Gaps
Performance spectrum from poor to excellent.
Page 44
Conducting Needs Analysis
Identify future performance requirements.
Maintain or enhance execution as needed.
Page 45
Skills Needed in Needs Analysis
Focus on Individual, Unit Management, Integration, and Strategic skills.
Page 46
Steps in Conducting Needs Analysis
Identify performance skills and development needs.
Page 47
Individual Development Plan (IDP)
Action plan for developing employee capabilities in current job and career progression.
Page 48
Criteria of a Sound Development Plan
Practical, specific, and oriented.
Page 49
Requirements for Behavior Change
Desire, Knowledge, Support, and Rewards.
Page 50
Process in Developing IDP
Identify needs.
Develop objectives.
Action steps.
Define success measures.
Timeline.
Schedule follow-ups.
Mutual agreement documentation.
Page 51
Developmental Activities & Approaches
Coaching, Mentoring, Cross-Training, Job Enrichment, Shadowing, Technical Training.
Page 52
Performance Evaluation and Reward
Page 53
Major Activities
Measure performance and provide rewards.
Page 54
Purpose of Appraisal/Evaluation
For compensation, retention, training, promotion, improvement.
Page 55
Types of Appraisal/Evaluation
Person-based, Behavior-based, Results-based.
Page 56
Components of Appraisal Program
Coverage, basis, cycle length, performance period, rating levels, process for poor performance.
Page 57
Key Questions in Effective Evaluation
Employee achievements, effectiveness, and behaviors exhibited.
Page 58
Do’s and Don’ts in Employee Evaluation
DO set aside time, REVIEW documentation, FOCUS on significant accomplishments.
DON’T rush, write unlinked assessments, rely only on memory.
Page 59
More Do’s and Don’ts in Employee Evaluation
DO use active verbs, be specific.
DON’T use vague language or acronyms without definitions.
Page 60
Final Do’s and Don’ts in Employee Evaluation
DO note challenges faced, relate success to team goals.
DON’T assume others will infer challenges.
Page 61
Employee Annual Appraisal Conversations
Discuss employee’s rating and performance against goals.
Page 62
Recommended Topics for Appraisal Conversations
Training opportunities, barriers, and future success potential.
Page 63
Important Reminders for Appraisal Conversations
Review employee assessments, refresh on goals, articulate pay relationship.
Page 64
More Important Reminders for Appraisal Conversations
Stick to facts, clarify concerns, maintain emotional control.
Page 65
Purpose of Appraisal/Evaluation
Share rating of record privately with employee.
Page 66
Facilitating Difficult Conversations
Use specific examples, maintain calmness, encourage employee input.
Page 67
Preventing Difficult Conversations
Provide continuous feedback and clear documentation throughout the year.
Page 68
Myths About Employee Rewards
Money is the best reward.
Employees should perform without incentives.
Rewarding often leads to entitlement.
Addressing problems is more important than employee happiness.
Page 69
Principles of Effective Reward Systems
Align rewards with strategic goals.
Tie rewards to purpose.
Clear association between reward and accomplishment.
Timeliness of rewards after behaviors.
Page 70
Tips in Rewarding Employees
Share positive feedback, recognize accomplishments, know employee motivations.
Page 71
Reward Through Performance Incentives
Various incentive systems: bonuses, profit sharing, stock options.
Page 72
Conclusion
Thank you!