Presented by Cor Faling Mosedimosi Business Training.

Presented by

Cor FalingMosedimosi Business Training

Performance Management

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Agenda

• Contribution of performance management to organisation’s critical success factors

• Performance management procedures• Performance contracting• Performance tracking and corrective action• Reward, remuneration and communication• Practical considerations

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Critical success factors

Performance management is about having everyone succeed and improve

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Who is “Everyone”

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Performance management is not just annual review time

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Structuring for success

Managers and employees need the confidence & competence to •set goals•observe performance •give & receive feedback •deliver and digest tough

messages •create development plans 7

Figure 1: Performance Management ModelThree Year Performance Cycle

Second Reviewfor Performance& Development

Update forTeam andIndividuals

Third ReviewIndividualAppraisalDiscussion

Compensationand Reward

Plans forIndividual

Performanceand

Development

First ReviewPerformance &DevelopmentUpdate forTeam andIndividuals

IndividualPerformanceContracting

Training for Managersand Employees

Balanced Score Card(Critical Few for Each

Year)

Business Planning(Strategic Priorities)

NEXT YEAR/ S

PLANNING - EVALUATING - FEEDBACK - COACHING

1

2 34 5 6

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Diagram 1: Performance Management Elements

Business Strategic Plan

Operating Plans and Role Clarifications

Team Planning and Role Clarification

Individual Goals

Day to day Management and Communication About Performance

Formal Performance Reviews

Efficient, Effective, Enduring Organisation

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Definition

• Performance management is a business process that links what individuals and teams do on a daily basis with the larger goals, values and cultural practices of the company and the needs of its customers

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Enduring organisation

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Definition

• It is a process for establishing a shared understanding about what is to be achieved and how it is to be achieved; it is an approach to managing people that when done well, contributes to an enduring and healthy organisation

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Toolkit

• The toolkit takes the ‘theory’ and ‘jargon’ out of performance management.

• The toolkit contains a comprehensive set of line manager friendly policies, procedures, and paperwork

• Can be used as training, support and administrative materials to launch and sustain an integrated performance management process and system

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Key elements of PM process

• It is a business process• Shared understanding what and how to be

achieved• It is about managing people• Brings organisational durability• Driven by competencies

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A business process

• It is about the everyday actions and behaviours people use to – deliver the goals of the organisation to meet

customer needs, – improve performance and themselves– cannot be divorced from the management and

business processes of the organisation

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Shared understanding

• Individuals and teams need to have a common understanding of how their roles connect to the business mission and goals of the organisation

• To improve performance they also need to know what superior performance looks like, and how to achieve it

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Shared understanding

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Definition of performance

• Performance can be described as a set of

– tasks

– goals

– behaviours

– results

– or any combination of these elements

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Approach to managing people

• The focus of performance management is on connecting people to one another and to the larger organisation and its values

• The main emphasis is on how to get people to work together and support one another to achieve shared aims

• It puts the responsibility on managers to work effectively (through coaching and motivating) with those for whom they are accountable

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Approach to managing people

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Increases durability of organisation

• Performance management has a clear purpose. It is about delivering success for individuals, teams, and the organisation

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Driven by competencies

• Competency: the key personal skills and knowledge that enable individuals to perform their work

• Competencies are the only common denominator that can be used across human resource systems consistently

• A set of competencies used to define any (specific) job can be applied consistently to all individuals in that specific job or job category

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Focus area 1: Structure for success

• Actively align work unit, team, and individual goals with organisation goals

• The starting point is always the organisation’s strategic goals

• Establish and reinforce the importance of core competencies and job competencies

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Focus area 1: Structure for success

Support line managers to • use performance management across a variety of

people applications • reward high performing groups and individuals • target poor performers for improvement and/or

termination • steer special development initiatives such as

employment equity planning• take responsibility for both the technical and people

component of their role

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Focus area 2: Commitment

• Transfer responsibility to the line function• Increase employee involvement in the operation and

administration of PM• Provide ongoing training to

– executives– managers– Employees

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Focus area 3: Assessing results

• Use a ‘balanced’ scorecard of criteria to monitor and fine-tune performance management processes. Involve all relevant stakeholders in the evaluation process

• Performance management is an approach to managing people and performance that recognises the fluid, dynamic and ever changing nature of the world of work

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Focus area 3: Assessing results

• The assumptions that guide the use of performance management are that customers, stakeholders and context are the chief drivers of PM practices

• PM in this scenario is very much an ongoing communication process, co-determined and undertaken in partnership, between employees, managers, supervisors, and customers

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The role of HR and SDF

Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organisation.

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• Develop clear job descriptions• Select appropriate people with an appropriate

selection process• Negotiate requirements and accomplishment-based

performance standards, outcomes, and measures.• Provide effective orientation, education, and training• Provide on-going coaching and feedback

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• Conduct quarterly performance development discussions

• Design effective compensation and recognition systems that reward people for their contributions

• Provide promotional/career development opportunities for staff

• Assist with exit interviews to understand WHY valued employees leave

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Discussion

One of the biggest challenges in performance management from an

HR perspective is to obtain commitment from line management.

What is your experience?

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Balancing measures

• Balancing measures is a strategic management system for achieving long-term goals

• Organisations use measures in four categories– financial performance – customer knowledge – internal business processes – learning and growth

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Family of performance measures

In each phase of performance planning, management, and measurement – the customer – stakeholder– and employee

are considered in balance with the need to achieve a specific mission or result

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Need for a balanced approach

• A balanced approach allows you to consider all the important operational measures at the same time, letting you see whether improvement in one area is achieved at the expense of another

• Key indicators should tell you how the organisation is doing

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Creating success

• This proven approach to strategic management imbeds long-term strategy into the management system through the mechanism of measurement

• It translates vision and strategy into a tool that effectively communicates strategic intent and motivates and tracks performance against established goals

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Strategy

• A strategy is a shared understanding about how a goal is to be reached

• Balancing measures allows management to translate the strategy into a clear set of objectives

• These objectives are then further translated into a system of performance measurements that effectively communicates a powerful, forward-looking, strategic focus to the entire organisation

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Employee perspective

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Employee perspective

• Focuses attention on the performance of the key internal processes that drive the organisation

• It directs attention to the basis of all future success—the organisation’s people and infrastructure

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Customer perspective

• Considers the organisation’s performance through the eyes of a customer, so that the organisation retains a careful focus on customer needs and satisfaction

• The private sector recognises the importance of the customer and makes the customer a driver of performance

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Business perspective

• The financial implications of doing

business

• The business processes needed for organisational efficiency and effectiveness

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Best practice in balancing measures

• Strong leadership that supports the adoption of balanced measures as a feature of organisational management and accountability

• The capability to communicate effectively and the organisation’s ability to communicate to decision makers

• The knowledge that customers, employees, and stakeholders understand and support the organisation’s initiatives

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Balancing measures

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Generic principles

• Good product or service

• Good image

• Good availability/accessibility

• Good employer

• Continuous improvement

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Establishing measures

A most crucial part of this creation process is to consult with your• customers (to find out what they really want) •employees (to find out what they need to achieve success)

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The critical areas of practice

• Define what measures mean the most to your customers, stakeholders, and employees

• Commit to initial change

• Use all available expertise

• Involve employees

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• Make the system non-punitive• Bring in the unions• Provide clear guidance• Maintain flexibility • Limit the number of measures• Recognise that it is a living process

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Discussion

• To what extent is the Balanced Scorecard practically in operation in your organisation?

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Assessing organisation readiness

• Creating the Pull Do key stakeholders understand the need and feel motivated to implement an integrated system?

• Supporting the PeopleAre company stakeholder goals (including unions) aligned and on-board to enable successful change?

• Managing the Process Can you leverage project and programme management tools to plan, execute and monitor the implementation?

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Assessing organisation readiness

• Please evaluate your organisation’s readiness to implement a performance management system. P13-15

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State of readiness

• Scores of mostly 1's and 2's: Very low readiness, high risk

• Scores of mostly 3's & 4's: Moderate readiness, moderate risk

• Scores of mostly 5's & 6's: Strong readiness, low risk

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The performance management cycle

• Exploration and budgeting• Reaching common understanding• Performance contracting• Development and planning• Renegotiate goals• Continuous communication• Performance tracking• Compensation and rewarding performance

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Diagram 1: Performance Management Elements

Business Strategic Plan

Operating Plans and Role Clarifications

Team Planning and Role Clarification

Individual Goals

Day to day Management and Communication About Performance

Formal Performance Reviews

Efficient, Effective, Enduring Organisation

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Plans forIndividual

Performanceand

Development





Year)


NEXT YEAR/ S


1

2 34 5 6

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Discussion

• Internationally it is estimated that 95% of staff are unaware of the organisation’s strategic objectives and/or can not relate to them in the execution of their daily tasks. What is the situation in your business?

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Step1: balanced scorecard measures

• Starting point: gather information to create measurable performance agreements – team and individual

• Prerequisite: management information– Strategic plan – Strategic priorities – Balanced measures – Business and operations plan – Competency profiles

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Step 2 A: Plans

INFORMATION• Exploration of what the work group, as a whole and

each member within the work group needs to know to perform at a level of excellence determined in consultation with external and/or internal customers

BUDGETING • Writing a realistic budget forms a critical part of the

performance planning process

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Step 2 B: Contracting

• Managers and employees meet as a group to create a common understanding about the performance requirements for the upcoming performance period

• The next step begins with a manager conducting a work expectation and performance contracting session with the team as a whole, and each employee individually

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Work expectation and contracting

• What the person in the work position currently does• How the work is done (processes used)• What assistance is needed to perform the job well

(information, equipment, support)• What the expected work outputs (performance

objectives) are• What competencies (knowledge, skills and

style/attributes) are required for the job? • What the process improvement and learning goals

for this job are

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Guidelines for performance contracting

• Define goals which consist of outputs, quality criteria, and indicators (the what of performance)

• Define competencies (the how of performance)• Create a development plan• Renegotiate goals and competencies as needed

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Goal characteristics

• Measurable

• Within one’s sphere of influence

• Realistic

• Observable

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Criteria for selecting competencies

• Support business’ values

• Relate to objectives

• Observable

• Understandable

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What constitutes superior performance in your

organisation?

Please discuss

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Superior performance

• Superior performance is customer driven

• Staff possess the attributes (competencies) of

– passion

– imagination, persistence to

deliver service– “exceeding expectations”

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Superior performance

• Identify customer needs, delivering on specification, taking personal accountability when service falters

• Volunteer for tasks others consider beneath their dignity which later turn out to be a stealth opportunity

• Motivated by the intrinsic value of work and are keen to receive remuneration based largely on performance

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Performance development planning

• Manager and employees conclude a development plan to

– Assess skills and knowledge

– Acquire skills and knowledge

– Apply skills and knowledge

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Figure 2: Development Plan

Learning NeedDevelopment

ActivitiesKey Actions By When Status

Competencies

No1

No2

etc

No 3

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Performance agreement

Manager and employees conclude a performance agreement. It•includes a summary of the performance improvement, and personal development goals •indicates how goal attainment and performance affect career advancement, development opportunities and pay/merit increases

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Discussion

• If a similar performance agreement exists in your organisation, is it operational and regularly reviewed?

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Renegotiation of agreement

Employee takes initiative to renegotiate when

• organisation or work unit priorities change

• external conditions change – this includes budgetary, legislative and technology driven change

• support expected from others does not occur

• unforeseen problems or opportunities arise

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Step 2 (B2) Continuous communication

• Ongoing performance communication is the process by which managers and employees work together to share– information about work progress– potential barriers and problems– possible solutions to problems

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Discussion

• How does performance management shift the emphasis of managing and supervising?

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Step 2 (B3): Performance tracking

• Performance management is essentially a business process whereby employees and managers produce results for customers

• All partners need to monitor their business situation in order to take action based on good information to keep performance and development on course or to change course if needed

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Performance tracking

– Track outputs– Track competency development – Track work style

• Managers and employees commit to undertake interim team and individual performance reviews every 3 months and an overall evaluation annually

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Reviewing performance

• Prior to all review discussions both the manager and each team member complete the performance planning and review documentation independently

• Formal group and/or 1:1 reviews must occur every three months

• The final performance discussion is a private 1:1 performance appraisal between the manager and employee only

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Type and frequency of evaluation

• Individual performance appraisal needs to occur preferably four times a year

• Team and individual review go hand in hand – preferably four times a year

• Customer reviews refer to the regular and formal reviews that customers are invited to participate twice per performance period to assess work unit and/or individual performance

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Procedural support and fairness

• Review and appraisal checks and balances must exist by means of sign-offs at a higher level or an appeal process

• Consistency of ratings across work units must be maintained

• Review and confirmation of ratings may occur at least one level higher in the work unit

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Administrative support and efficiency to line management

• Training is essential to overcome the many forms of appraiser bias and to develop the interpersonal skills required to give and receive candid feedback

• Instruments and forms are merely to be used as recording devices for comments and ratings

• Electronic support systems need to be used wherever possible to reduce the administrative burden

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Discussion

• Is a three-month review cycle feasible in your business?

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Compensating and reward

• The company will follow a balanced approach to paying for superior performance in combination with reaching superior development targets

• It is supported by a structured wage and benefits system that is market related

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Structure of reward system

• An effective compensation and reward system can have a positive impact on shaping desired work behaviours and performance

• The goals of the pay system should be to motivate teams and individuals to make optimum use of their abilities, skills and knowledge, and to attract and retain high performing employees

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Structure of reward system

• Individual performance • Team performance • Organisation performance • Skill-based pay, gain sharing for savings

achieved combined with merit increases can strengthen the link between pay and performance

• The other side of the coin is recognition on an ongoing and day-to-day basis

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Competencies

A competency is a written description of the knowledge, skills, abilities, motives, drives and attitudes causally related to

effective performance of a job or position within an organisation or

possessed by an individual

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Competencies

• Organisational competencies: provide the basis for creating a competitive advantage

• Individual competencies are those attributes that each employee brings to the workplace for his/her particular function

• Individual and team competencies are critical components of the organisational competencies

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Competency framework

• A business should create a competency framework to provide management and staff with a common understanding of the set of competencies and behaviours that are vital to the organisation’s success

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• An effective method to assess, maintain, and monitor the knowledge, skills, and attributes of people in the organisation

• The framework allows for measuring current competency levels to make sure staff members have the expertise needed to add value to the business.

• It also helps managers to make informed decisions about talent recruitment, retention, and succession strategies

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Key performance indicators

KPI is a quantifiable metric that reflects how well is an•employee applying his or her current skills, and to what extent is he or she achieving the outcomes desired •entire organisation achieving its stated goals and objectives

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Cascading KPIs

• Managers and employees need to define KPIs for their teams

• The ideal situation is where KPIs cascade from level to level in the organisation

• It helps staff work in such a way that their activities are aligned with corporate strategy

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KPI formulation context

• What is the vision for the future?• What is the strategy? How will the strategic vision

be accomplished?• What are the organisation's objectives? What

needs to be done to keep moving in the strategic direction?

• What are the Critical Success Factors? Where should the focus be to achieve the vision?

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Defining KPIs

• Which metrics will indicate that the correct vision and strategy are being pursued?

• How many metrics should there be? (Enough, but not too many!)

• How often should they be measured? • Who is accountable for the metric? • How complex should the metric be?

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Defining KPIs

• What should be used as a benchmark? • How is it ensured that the metrics reflect strategic

drivers for organisational success?• How could the metrics be cheated, and what will

guard against this?• What negative, perverse incentives would be set up

if this metric was used, and how will it be prevented?

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KPIs and reward

• In the process of establishing rewards and recognition practices, it must be ensured that rewards tie directly to the KPIs

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Examples of KPI measures

Please draft a list of KPIs for the position you hold in your organisation

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Discussion

• Designing KPIs and measures have been highlighted as the most challenging part of designing and implementing a performance management system. What is your experience?

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The need for a policy

• It communicates how performance management will be used by managers and employees as a business process

• It encourages and empowers managers and employees to see performance as an integrated real-time feature of work life

• It illustrates that performance management is not a separate stand-alone process but integrates with the organisation’s and work units’ business, operational plans and budgets

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Policy statements

• Study the 20 statements• Mark those statements that you perceive to be

already operating in your organisation • Out of a score of 20, judge the progress that

your organisation has been making towards an integrated performance management system

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Plans forIndividual

Performanceand

Development





Year)


NEXT YEAR/ S


1

2 34 5 6

104

Performance contracting paperwork: Goal setting

• Work unit outputs and job priorities – Process– Memo to staff– Worksheet

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Tracking results

• Performance management would be incomplete without systematically tracking performance on a regular basis

• The purpose of tracking and review is to determine progress on the extent that the team and individual are meeting the objectives of the company and those they set for themselves

• The outcome of tracking and discussions with their managers trigger a process of corrective action should the employee be found to under-perform

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Corrective action

• This may include giving additional training, providing resources such as computer equipment, ensuring team integration, resolving of conflict and other aspects which may have hindered the staff member in doing his or her daily work

• Vitally important, it also makes provision for renegotiating the outputs and objectives. Performance criteria are not cast in concrete

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Discussion

• Doesn’t this approach provide an opportunity for the employee to come up with a list of excuses and shift the blame for poor performance?

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Tracking results

• Process

• Memo to staff

• Worksheet: Evaluation of outputs (p43)

• Worksheet: Performance planning for next period (p44)

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Performance improvement planning

• This type of plan is used to address performance issues that have been identified by the manager and/or employee and communicated in an appraisal/performance-related memo or in conversation

• Improvement planning– Process– Manager review– Performance improvement plan (p47)110

Career development plan

Written with the following objectives in mind:• Growth in the current job. Expanding skills and

job satisfaction for employees who are at the top of their career path or who do not have a desire to move beyond their current position

• Promotion and succession planning

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Discussion

• This concept of career development planning looks great on paper. But what is the scope of CDP in an SMME?

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Disciplinary action

• Every company needs standards rules and regulations to ensure smooth operation

• If these rules are not upheld, it is important that a disciplinary procedure be in place to deal with the situation

• Employees should have access to procedures whereby alleged failures to comply with these standards may be fairly and sensitively addressed

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Dismissal: Competence

• Incompetence must relate to the kind of work the employee was required to do

• Where targets and performance goals have been identified by the employer and clearly communicated to the employee, such targets and goals must be reasonable

• Once the company offers the employee all necessary assistance to achieve the targets then a continued failure by the employee would constitute good grounds for a dismissal

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Dismissal: Competence

• The employer must provide adequate assistance, resources and training

• Where an employee has been informed that his/her work is not of an acceptable standard, he/she must be given reasonable time within which to improve

• The work environment must also be conducive to such improvements

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Dismissal: Qualifications

• When an employee does not have the required competence or qualifications to perform the work for which he/she was employed, a dismissal may be deemed fair

• This is especially so where the competence or qualifications are required for safety reasons

• Where a dismissal is due to alleged incompetence an employer will be expected to have provided assistance to the employee

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• Equally, when an employer is in business to provide professional services such as Accountants, Solicitors, Doctors, etc., qualified personnel are a legal prerequisite

• Dismissal would be based on grounds that they did not hold the qualifications claimed while they are essential requirements to job performance

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• Should an employer hire an employee on the basis that he/she will obtain a certain qualification and this is not achieved within a reasonable time period, the employee could be fairly dismissed

• If an employer dismisses an employee for lack of appropriate qualifications or incompetence, then it will need to show that a particular qualification or standard is essential to the job

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Dismissal: Capacity

Frequent short term absences can be justified as reasons for dismissal where:

• The absences occurred over a significant period• There was reason to conclude that this pattern would

not improve in the foreseeable future• Allowing the absences to continue was unacceptable

as it established the wrong precedent for other employees

• Appropriate disciplinary action had been taken: i.e. warnings

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Dismissal: Capacity

• In the case of absence as a result of alcohol or substance abuse, the employer should in the first instance treat these as it would an illness

• The employer should make every effort to elicit the cause and refer the employee to the appropriate treatment facility to try and combat the dependence

• If the absences continue after treatment, or if the employee refuses to seek help, the usual Disciplinary Procedure should be used

• If the problem persists, it may result in dismissal

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Dismissal: capacity

• Lengthy absences due to illness, with no foreseeable return to work can justify a dismissal on grounds of incapacity

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Discussion

• It is becoming increasingly difficult to dismiss non-performing staff in our labour law dispensation. Yet, would you agree that dismissal due to non-performance is a neglected option in performance management?

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Corrective action: Documentation

• Verbal warning

• Informal (written) warning

• Formal warning

• Final warning

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Discussion

• The warning process appears to take an extensive period of time. What challenge does this present to an SMME?

124

360 degrees feedback

• 360 degree feedback is a method and a tool that provides each employee the opportunity to receive performance feedback from his or her supervisor and four to eight peers, reporting staff members, co-workers and customers

• Most 360 degree feedback tools are also responded to by each individual in a self assessment

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360 degrees feedback

• The most effective 360 degree feedback processes provide feedback that is based on behaviours that other employees can see

• The purpose of the 360 degree feedback is to assist each individual to understand his or her strengths and weaknesses, and to contribute insights into aspects of his or her work needing professional development

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Positive factors

• Improved feedback from more sources• Team development• Personal and organisational performance development• Responsibility for career development• Reduced discrimination risk• Improved customer service• Training needs assessment

128

Negative factors

• Inadequate design process• Failure to connect the process• Insufficient Information• Focus on negatives and weaknesses• Rater inexperience and ineffectiveness• Paperwork/computer data entry overload

129

Discussion

• The trend towards 360 degree feedback is becoming increasingly prevalent. How practical is this process in an SMME?

130

Reward and remuneration

Reward and recognition of performance are the single most powerful instruments

management has with which to change, establish and reinforce those outputs and behaviours of employees through which

strategic business objectives and results are achieved

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Reward strategy

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Reward strategy

• The key is not money itself • Rather, it is viewing money and all forms of reward

as the language of the business: it is the use of reward in all forms to communicate what is important in terms of high performance

• The more visibly this is demonstrated, the more effective the communication

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Benefits of pay for performance

• Goal alignment– Employees more productive– Shared responsibility– Managers constantly staying in touch with staff

• Increased motivation– Employees energised to perform at maximum– Increased recognition

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Benefits of pay for performance

• Improved retention– Recognising top performers– Increase as high as 27%– Employees empowered to

be in control of their financial situation

• Cost savings– Avoiding over compensation

135

Questions for setting expectations

• Are the tasks that people are working on driving the business? How can you tell?

• Are managers engaged with their employees throughout the year to make sure they execute their objectives?

• Are individuals executing against what is expected? Who is and who isn’t executing?

• Are managers objectively ensuring that bonuses, raises, and promotions are given to those high performing individuals that they can't afford to lose?

136

Gauging attitude of employees

Employees have to:• Desire higher pay

• Have the skills and capabilities to improve performance

• Trust the company to administer the plan fairly and pay if they improve performance

137

Discussion

• What is the scope for pay-for-performance in your profession/organisation?

138

Remuneration model

Job value• the relative worth of various jobs within an

organisation is determined objectively, and jobs are ranked so as to make it possible to achieve internal and external parity, by applying a recognised job evaluation system

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Remuneration model

Market value• Comparisons with specific markets are

continuously drawn to establish a realistic and competitive price for labour

• A strategic decision is made with regard to the position the organisation wishes to occupy in respect of the market

140

Remuneration model

Individual value• The worth of each employee must be determined

within the specific job as well as comparitive jobs • The worth of an employee determined by

– Constant high performance and estimated potential

– Market premium for scarce skills

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Performance communication

142


Performance communication refers to • direct, shared responsibility • output focused communication in the

workplace • communication that is open, above

board, honest, respectful and deliberate

143


Performance communication occurs when• the managers and employees commit to

and take responsibility for working out performance problems together and understanding each other

• use good communication skills through purposeful discussion

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Principles of performance communication

• Don’t wait to be asked• Performance communication is a two - way

street• Judgment calls• Performance communication is a human

process

145

Performance reviews

• Performance reviews and feedback discussions are an intense form of communication

• On the one hand, managers need to communicate conclusions about performance

• The employee, on the other hand, wants to know where he/she stands

• Employees need to listen, clarify the feedback and then make a commitment to appropriate actions

146

Organise your thoughts

• As a feedback GIVER, structure your feedback so that it answers the following questions. As a feedback RECEIVER, listen for the following information:– What did the feedback giver observe in the situation

that prompted a decision to give some feedback?– Why is this information important for the receiver to

know?– What does the feedback giver think would improve

the situation in the future?

148

Keep the human touch

• Feedback is always a partially subjective process that can't be automated, or substituted by a form or a computer

• In order to work, feedback communication must involve judgment, questioning, empathy, and personal commitment

149

Keep the human touch

• It is important to be as objective as possible when trying to describe and assess performance

• A high level of trust must

exist between managers

and employees• Both must talk about their

concerns, opinions, and reactions

150

Focus on outputs

• Discussing and evaluating performance is a complex task because the things that individuals do from day-to-day have both short- and long-term implications

• This means you must discuss not only what the employee has accomplished, but also how the accomplishments were achieved and what impact they had

151

Focus on outputs

• It also means discussing the knowledge and skills the employee used, or should have used, in situations where his/her competencies were key factors

• Focus performance reviews on the three dimensions of performance: outputs, competencies, and style

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Delivering and digesting tough messages

• The hardest part of the job: delivering and digesting messages about performance problems or other issues that could lead to termination or other serious consequences if not addressed

153

Delivering and digesting tough messages

• Tough messages must be delivered and digested directly, clearly, and immediately

• Addressing performance problems is a key part of a manager's role

• A manager's failure to confront employee performance is in itself a performance problem

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Focus on solving the problem

155


• Even when performance problems appear to be related to style, it is unrealistic to make broad, unsubstantiated negative statements about an individual and hope that improvement will occur

• The feedback you give and statements you make about the performance problem must be firm, fair and strong

• This is especially true when the problem is very serious and when major changes must be made in a short time

156


• When feedback contains a tough message, it is especially important that it be focused on the problem and be specific and well substantiated

• It is the responsibility of the discussion initiator to establish the initial focus of the discussion

• Both manager and employee must work together to assure the results will be constructive

157

Obtain a commitment

• It is the employee's job to plan and implement actions for improvement and development.

• The employee's commitment to action and ability to act are key to solving the problem

158

Potential challenges of implementation

• Lack of buy–in from CEO

• Line management inertia

• Alignment of goals

• Defining KPIs and measures

• Defining competencies

159

Potential challenges of implementation

• Over-ambitious system design

• Alienation

• Pay for performance

• SMME take on

160

Trends in performance management

• In the public sector the implementation of a performance management system is mandatory

• In the private sector it is gaining insight into employee performance

• Technology vendors continue to develop systems that integrate several management information sub-systems into a seamless performance management system

161

Performance management technology solutions

• Improving efficiency and compliance

• Making performance reviews relevant

• Maximising productivity

• Paying for performance

162

Improving administrative efficiency and reducing risk

• Reducing errors

• Saving a manager’s time

• Consistency

• Creating a paper trail

• Providing writing assistance

163

Making performance reviews relevant

• Metrics-based performance evaluation – Giving both employees and managers needed

insight– Automating goal tracking and reporting– Driving accountability at all levels

• Development plans• Learning opportunities

164

Maximising productivity and paying for performance

• Paying the people who are driving success

• Minimising salary misallocation and misunderstandings

• Identifying talent gaps

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Web resources

• www.kpilibrary.com

• www.staceybarr.com

• www.sucessfactors.com

• www.aberdeen.com

• www.sumtotalsystems.com

• www.halogensoftware.com

• www.cornerstoneondemand.com

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http://www.kpilibrary.com/

http://www.staceybarr.com/

http://www.sucessfactors.com/

http://www.aberdeen.com/

http://www.sumtotalsystems.com/

http://www.halogensoftware.com/

http://www.cornerstoneondemand.com/

Thank you

Cor Faling

[email protected]

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Presented by Cor Faling Mosedimosi Business Training.

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Transcript of Presented by Cor Faling Mosedimosi Business Training.