Implementing a Performance Management System PDF

IMPLEMENTING A PERFORMANCE MANAGEMENT SYSTEM MADE BY: PRACHI JAIN HARSHITA MEHTA  OVERVIEW  Preparation  Communication Plan  Appeals Process  Training Programs  Pilot Testing  Ongoing Monitoring and Evaluation  PREPARATION ...

IMPLEMENTING A PERFORMANCE MANAGEMENT SYSTEM MADE BY: PRACHI JAIN HARSHITA MEHTA  OVERVIEW  Preparation  Communication Plan  Appeals Process  Training Programs  Pilot Testing  Ongoing Monitoring and Evaluation  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  COMMUNICATION PLAN A good communication plan answers the following questions:  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? Even if a communication plan answers all or most of the important questions,the fact that the information has been made available does not necessarily mean the communication plan will be successful in gaining acceptance. This is because people have cognitive biases that affect what information is taken and how it is processed. Specifically, there are 3 types of biases that affect the effectiveness of a communication plan: Selective exposure Selective perception Selective retention  Selective exposure - a tendency to expose our minds only to ideas with which we already agree.  Selective perception - a tendency to perceive a piece of information as meaning what we would like it to mean even though the information, as intended by the communicator, may mean the exact opposite.  Selective retention - a tendency to remember only those pieces of information with which we already agree. Considerations to minimise the effects of communication barriers Involve employees Understand employee needs Strike first Provide facts and consequences Put in writing Use multiple channels of communication Use credible communicators Say it, and then say it again  APPEALS PROCESS  The establishment of an appeal process helps in gaining employee acceptance.  It allows employees to understand that, if there is a disagreement regarding performance ratings or any resulting decisions, such disagreements can be resolved in an amicable and non-retaliatory way.  Employees can question 2 types of issues: › Judgemental issues (validity of evaluation) › Administrative issues (whether policies and procedures were followed)  The appeals process begins with an employee filing an appeal with the HR department,which serves as a mediator between the employee and supervisor.This is a Level 1 appeal.  If the appeal is not resolved, then an outside and unbiased arbitrator makes a final and binding resolution. This is a Level 2 appeal. The arbitrator for a Level 2 appeal is usually a panel that includes peers and managers. TRAINING PROGRAMS FOR THE ACQUISITION OF REQUIRED SKILLS Training not only provides participants in the performance management system with needed skills and tools to do a good job implementing it but also helps increase satisfaction with the system. Content Areas that can be included in Rater Training Programs Reasons for implementing the performance management system Information on the appraisal form and system mechanics How to identify and rank job activities How to observe, record, and measure performance How to minimise rating errors How to conduct an appraisal interview How to train, counsel, and coach  CHOICES OF TRAINING PROGRAMS  Rater Error Training  Frame of Reference Training  Behavioral Observation Training  Self-Leadership Training  RATER ERROR TRAINING (RET)  The goal of RET is to increase rating accuracy by making raters aware of the unintentional errors they are likely to make and strategies are made to minimize the errors.  RET programs include definitions of the most typical error and possible causes of those errors.  RET does not guarantee increased accuracy.  DIFFERENT TYPES OF  ERRORS Similar to me error Supervisors are more likely to give higher performance ratings to those employees who are perceived to be more similar to them in terms of attitudes, preferences, personality etc.  Contrast error Contrast error occurs when, even if an absolute measurement system is in place, supervisors compare individuals with one another instead of against predetermined standards.  Leniency error Leniency error occurs when raters assign high(lenient) ratings to most or all employees. Leniency involves artificial rating inflation.  Severity error Severity error occurs when raters assign low(severe) ratings to most or all employees. Severity involves artificial rating deflation.  Central tendency error Central tendency error occurs when raters use only the middle points on the rating scales and avoid using the extremes.  Halo error Halo error occurs when the raters fail to distinguish among the different aspects of performance being rated.  Primacy error Primacy error occurs when performance evaluation is influenced mainly by information collected during the initial phases of the review period.  Recency error Recency error occurs when performance evaluation is influenced mainly by information gathered during the last portion of the review period.  Negativity error Negativity error occurs when raters place more weight on negative information than on positive or neutral information.  First impression error First impression error occurs when raters make an initial favorable or unfavorable judgement about an employee and then ignore subsequent information that does not support the initial impression.  Spillover error Spillover error occurs when scores from previous review periods unjustly influence current ratings.  Stereotype error Stereotype error occurs when a supervisor has an oversimplified view of an individuals based group membership.  Attribution error The attribution error takes place when a supervisor attributes poor performance to an employee’s dispositional tendencies(e.g, personality, abilities) instead of features of the situation (e.g., malfunctioning equipment)  FRAME OF REFERENCE TRAINING  Frame for reference training helps improve rater accuracy by thoroughly familiarizing raters with the various performance dimensions to be assessed.  Goal is to give raters skills so that they can provide accurate ratings of each employee on each dimension by developing a common frame of reference.  TRAINING PROGRAM INCLUDE 6 STEPS 1) Raters are told that they will evaluate the performance of three employees on three separate performance dimensions. 2) Raters are given an appraisal form and instructed to read it as the trainer reads aloud the definition for each dimension and the scale. 3) The trainer discusses various employee behaviors that illustrate various performance levels for each rating scale included in the form. 4) Participants are shown a clip of behaviors related to the performance dimensions being rated, and are asked to evaluate the employees performance using the scale provided.  5. Ratings provided by each participant are shared with rest of the group and discussed. The trainer seeks to identify which behaviors participants used to decide on their assigned ratings and to clarify any discrepancies among the ratings. 6. Trainers provides feedback to participants, explaining why the employee should receive a certain rating on each dimension and show discrepancies between the target score and the score given by each trainee..  BEHAVIORAL OBSERVATION TRAINING  Behavioral observation(BO) training is another type of program implemented to minimize unintentional rating errors.  BO training focuses on how raters observe, store, recall, and use information about performance.  This type of training improves raters’ skills at observing performance.  These observational aids help raters record a preestablished number of behaviors on each performance dimension.  Using these aids helps raters increase the sample of incidents observed and recorded during a specific time period.  SELF-LEADERSHIP TRAINING  The goal of self leadership(SL) training is to improve a rater’s confidence in her ability to manage performance.  SL training techniques include positive self-talk, mental imagery, and positive beliefs and thought patterns.  SL training has become a popular tool in the context of performance management systems and as a type of training program beneficial for supervisors even when they are not necessarily involved in a performance management system.  Designing an SL training program involves the following step: 1. Observe and record existing beliefs and assumptions, self-talk, and mental imagery patterns. 2. Analyze the functionality and constructiveness beliefs, self-talk and imagery patterns uncovered in step 1. 3. Identifyor develop more functional and constructive beliefs and assumptions, self verbalizations, and mental images to substitute for dysfunctional ones. 4. Substitutethe more functional thinking for dysfunctional thoughts experienced in actual situation. 5. Continuemonitoring and maintaining beliefs , self-verbalizations, and mental images over time. A related type of training program is labeled self-efficacy training for raters (SET-R) and the goal of this type of training is to decrease a rater’s discomfort of performance management and to enhance a manager’s belief that he has the necessary skills to manage employees performance.  PILOT TESTING  Provides ability to discover potential problems and then to fix them.  The most important aspect of the pilot test is that all participants maintain records noting any difficulties they encountered , ranging from problems with the appraisal form and how performance is measured to the feedback received.  The pilot test allows for the identification and early correction of any flaws before the system is implemented throughout the organisation.  BENEFITS OF PILOT TESTING  Gain information from potential participants  Learn about difficulties/obstacles  Collect recommendations on how to improve all aspects of system  Understand personal reactions to it  End users are likely to have a higher system acceptance rate  Provides crucial information before it is actually put into place  ONGOING MONITORING AND EVALUATION  When the testing period is over and the performance management system has been implemented, it is important to use clear measurements to monitor and evaluate the system.  Evaluation data should include reactions to the system and assessment of the system’s operational and technical requirements.  MEASURES USED FOR MONITORING AND EVALUATION ARE:  No. of individuals evaluated  Distribution of performance rating  Quality of information  Quality of performance discussion meeting  System satisfaction  Overall cost/benefit ratio  Unit-level and organisation-level performance THANK YOU