Implementing a Performance Implementing a Performance Management System: OverviewManagement System: Overview

PreparationPreparation Communication PlanCommunication Plan Appeals ProcessAppeals Process Training ProgramsTraining Programs Pilot TestingPilot Testing Ongoing Monitoring and Ongoing Monitoring and

EvaluationEvaluation

PreparationPreparation Need to gain system buy-in Need to gain system buy-in

throughthrough::• Communication plan regarding Communication plan regarding

Performance Management Performance Management systemsystem Including appeals processIncluding appeals process

• Training programs for ratersTraining programs for raters• Pilot testing systemPilot testing system

Ongoing monitoring and Ongoing monitoring and evaluationevaluation

Communication Plan answers:Communication Plan answers: What is Performance Management What is Performance Management

(PM)?(PM)? How does PM fit in our strategy?How does PM fit in our strategy? What’s in it for me?What’s in it for me? How does it work?How does it work? What are our roles and What are our roles and

responsibilities?responsibilities? How does PM relate to other How does PM relate to other

initiatives?initiatives?

Cognitive Biases that affect Cognitive Biases that affect communications effectiveness communications effectiveness

Selective exposureSelective exposure Selective perceptionSelective perception Selective retentionSelective retention

To minimize effects of cognitive biases:To minimize effects of cognitive biases:

A. Consider employees:A. Consider employees: Involve employees in system Involve employees in system

designdesign Show how employee needs are Show how employee needs are

metmet

To minimize effects of cognitive biases To minimize effects of cognitive biases (continued):(continued):

B. Emphasize the positiveB. Emphasize the positive Use credible communicatorsUse credible communicators Strike first – create positive Strike first – create positive

attitudeattitude Provide facts and conclusionsProvide facts and conclusions

To minimize effects of cognitive biases To minimize effects of cognitive biases (continued):(continued):

C. Repeat, document, be C. Repeat, document, be consistentconsistent

Put it in writingPut it in writing Use multiple channels of Use multiple channels of

communicationcommunication Say it, and then – say it againSay it, and then – say it again

Appeals ProcessAppeals Process

Promote Employee buy-in to PM Promote Employee buy-in to PM systemsystem• Amicable/Non-retaliatory Amicable/Non-retaliatory • Resolution of disagreementsResolution of disagreements

Appeals ProcessAppeals Process Employees can question two Employees can question two

types of issues:types of issues:• Judgmental Judgmental

(validity of evaluation)(validity of evaluation)

• AdministrativeAdministrative (whether policies and procedures (whether policies and procedures

were followed)were followed)

Appeals ProcessAppeals Process Level 1Level 1

• HR reviews facts, policies, proceduresHR reviews facts, policies, procedures• HR reports to supervisor/employeeHR reports to supervisor/employee• HR attempts to negotiate settlementHR attempts to negotiate settlement

Level 2Level 2• Arbitrator (panel of peers and Arbitrator (panel of peers and

managers)managers) and/or and/or

• High-level manager – final decisionHigh-level manager – final decision

Rater Training ProgramsRater Training Programs Content Areas to includeContent Areas to include

• InformationInformation• Identifying, Observing, Recording, Identifying, Observing, Recording,

EvaluatingEvaluating• How to Interact with EmployeesHow to Interact with Employees

Choices of Training Programs to Choices of Training Programs to implementimplement• Rater Error TrainingRater Error Training• Frame of Reference TrainingFrame of Reference Training• Behavioral ObservationBehavioral Observation• Self-leadership TrainingSelf-leadership Training

ContentContent

A.A. Information - how the Information - how the system workssystem works• Reasons for implementing the Reasons for implementing the

performance management performance management systemsystem

• InformationInformation the appraisal formthe appraisal form system mechanicssystem mechanics

Content Content (continued)(continued)

B. Identifying, observing, recording, B. Identifying, observing, recording, and evaluating performanceand evaluating performance• How to identify and rank job How to identify and rank job

activitiesactivities• How to observe, record, and How to observe, record, and

measure performancemeasure performance• How to minimize rating errorsHow to minimize rating errors

Content Content (continued)(continued)

C. How to interact with C. How to interact with employees when they receive employees when they receive performance informationperformance information• How to conduct an appraisal How to conduct an appraisal

interviewinterview• How to train, counsel, and How to train, counsel, and

coachcoach

Choices of Training ProgramsChoices of Training Programs

Rater Error Training (RET)Rater Error Training (RET) Frame of Reference Training Frame of Reference Training

(FOR)(FOR) Behavioral Observation Behavioral Observation

Training (BO)Training (BO) Self-leadership Training (SL)Self-leadership Training (SL)

Rater Error Training (RET)Rater Error Training (RET)

Goals of Rater Error Training Goals of Rater Error Training (RET)(RET)• Make raters aware of types of Make raters aware of types of

rating errorsrating errors• Help raters minimize errorsHelp raters minimize errors• Increase rating accuracyIncrease rating accuracy

Intentional rating errorsIntentional rating errors

Leniency (inflation)Leniency (inflation) Severity (deflation)Severity (deflation) Central tendency Central tendency

Unintentional rating errorsUnintentional rating errors

Similar to MeSimilar to Me HaloHalo Primacy Primacy First First

ImpressionImpression ContrastContrast

StereotypeStereotype NegativityNegativity RecencyRecency SpilloverSpillover AttributionAttribution

Possible Solutions for Types of Rating Possible Solutions for Types of Rating ErrorsErrors

IntentionalIntentional• Focus on motivationFocus on motivation• Demonstrate benefits of Demonstrate benefits of

providing accurate ratingsproviding accurate ratings UnintentionalUnintentional

• Alert raters to different errors Alert raters to different errors and their causesand their causes

Frame of Reference Training (FOR)Frame of Reference Training (FOR)

Goal of FOR*Goal of FOR*• Raters develop common frame Raters develop common frame

of referenceof reference Observing performanceObserving performance Evaluating performanceEvaluating performance

**Most appropriate when PM appraisal system Most appropriate when PM appraisal system focuses on behaviorsfocuses on behaviors

Expected Results of FORExpected Results of FOR

Raters provide consistent, more Raters provide consistent, more accurate ratingsaccurate ratings

Raters help employees design Raters help employees design effective development planseffective development plans

Behavioral Observation Training (BO)Behavioral Observation Training (BO) Goals of BOGoals of BO

• Minimize unintentional rating errorsMinimize unintentional rating errors• Improve rater skills by focusing on Improve rater skills by focusing on

how raters:how raters: Observe performanceObserve performance Store information about performanceStore information about performance Recall information about performanceRecall information about performance Use information about performanceUse information about performance

Self-leadership Training (SL)Self-leadership Training (SL)

Goals of SLGoals of SL• Improve rater confidence in Improve rater confidence in

ability to manage performanceability to manage performance• Enhance mental processesEnhance mental processes• Increase self-efficacyIncrease self-efficacy

Pilot TestingPilot Testing

Provides ability toProvides ability to • Discover potential problemsDiscover potential problems• Fix them Fix them

Pilot Testing - benefitsPilot Testing - benefits

Gain information from potential Gain information from potential participantsparticipants

Learn about difficulties/obstaclesLearn about difficulties/obstacles Collect recommendations on how Collect recommendations on how

to improve to improve Understand personal reactionsUnderstand personal reactions Get early buy-in Get early buy-in Get higher rate of acceptanceGet higher rate of acceptance

Implementing a Pilot TestImplementing a Pilot Test

Roll out test version with sample groupRoll out test version with sample group• Staff and jobs generalizable to organizationStaff and jobs generalizable to organization

Fully implement planned systemFully implement planned system• All participants keep records of issues All participants keep records of issues

encounteredencountered• Do not record appraisal scoresDo not record appraisal scores• Collect input from all participantsCollect input from all participants

Ongoing Monitoring and EvaluationOngoing Monitoring and Evaluation

When system is implemented, When system is implemented, decide:decide:• How to evaluate system How to evaluate system

effectivenesseffectiveness• How to measure implementationHow to measure implementation• How to measure resultsHow to measure results

Evaluation data to collect:Evaluation data to collect:

Reactions to the systemReactions to the system Assessments of requirementsAssessments of requirements

• OperationalOperational• TechnicalTechnical

Effectiveness of performance Effectiveness of performance ratingsratings

Indicators to considerIndicators to consider

Number of individuals evaluatedNumber of individuals evaluated Distribution of performance ratingsDistribution of performance ratings Quality of informationQuality of information Quality of performance discussion Quality of performance discussion

meetingsmeetings System satisfactionSystem satisfaction Cost/benefit ratioCost/benefit ratio Unit-level and organization-level Unit-level and organization-level

performanceperformance

Quick ReviewQuick Review

PreparationPreparation Communication PlanCommunication Plan Appeals ProcessAppeals Process Training ProgramsTraining Programs Pilot TestingPilot Testing Ongoing Monitoring and Ongoing Monitoring and

EvaluationEvaluation