Performance Management

1. LEAD Performance Management Basis of Performance Evaluation Work Plan Development Probationary Review and Interim Review Performance Evaluation Process 2012

2. TOPICS OF DISCUSSION • Why performance management • Performance management as a cycle • Developing a work plan using measurable goals • Using the work plan throughout the cycle • Preparing for a performance evaluation • Communicating progress and areas for growth

3. MANDATES AND GUIDES NC Law (G.S. 126-7) The Performance Management System shall ensure that all employees: • are aware of what is expected of them, • are provided with continuous feedback about their performance, • are provided with opportunities for education, training and development, and • are rewarded in a fair and equitable manner. Work Plan Communication Talent Strategy Consistent ratings

4. MANDATES AND GUIDES University Policy Statement # 54 Managing the Performance of Employees Subject to the State Personnel Act “The performance management process is the sequence of actions supervisors take when interacting with employees about their job performance and includes: determining the key elements of the job, developing performance expectations, providing an interim review of job performance, and providing an annual performance appraisal. Interaction between supervisor and employee is required at each step of the process.”

5. COMPETENCIES LINK SPA PROCESSES Competency Profile for Career Band (defines Occupational Role) Required Functional Competencies (basis for pay range) Position Description Job Duties detailed for each Functional Competency area. Critical Behaviors Support Work Plan Supervisor’s Expectations for Employee: SMART Goals for each Functional and Behavioral Competency Area Performance Evaluation Document Employee’s Performance Communicate strengths and areas needing development Critical Behaviors Supporting Functional Competencies

6. POSITION & EMPLOYEE LIFE CYCLE Position Description • Job Duties + Requirements (including ADA) are basis for: • Career band title and level • Salary range and starting salary • Priority order of evaluated competencies • SMART goals (Performance Expectations) Recommendation: Adjust position description competencies so that no more than 12 ratings must be given after behavioral competencies are added in the work plan.

7. POSITION & EMPLOYEE LIFE CYCLE Work Plan (submit within 30 days of hire) • Performance Expectations are basis for: • Probationary review (new hires, 6 months after hire) • Interim review (permanent employees, mid-cycle) • Annual Performance Evaluation and Ratings • Evaluation cycle: 3/1 – 2/28 • Mandatory for Employees in permanent status by November 30 of current cycle

8. PERFORMANCE MANAGEMENT CYCLE • Maximize time spent on developing a work plan • Gain employee’s “buy-in” • Minimize focus on end of cycle submission • Maximize on-going communication and feedback

9. PERFORMANCE MANAGEMENT CYCLE • Goal Setting • Year-End Review March • Interim Review September Ongoing Feedback & Coaching

10. GOAL SETTING: WORK PLANS • Goal Setting Based on position descriptions • “What” you need done Translate tasks into performance goals • “How” you need it done Measure performance based on goals • Effective measurement is a result of “smart” goals Are reviewed for revisions each year Represent collaboration between manager and employee

11. WORK PLAN TIMELINE • Goal Setting Develop when • Position is New • Position is Modified Review and revise when • Job Duties Change • Position is Vacated • After Evaluation for the next Performance Cycle (Feb – Mar) When developed, reviewed or revised • Discuss with employee • Submit to employee for certification • Submit to HR within 30 days of start date or effective date

12. WORK PLAN COMPONENTS Functional Competencies • “Building blocks” of career band title and level; standardized required components imported from the position Priority Order • Established by job description, ranking of functional competencies from most to least important business need Job Duties • Originate in Position Description. Task details of what the employee must do Behavioral Competencies • Originate in Work Plan. Attitudes and behaviors that help identify reasons for performance success or difficulty

13. WORK PLAN COMPONENTS Decide at beginning how you will gather information to provide specific feedback. • If selected, employees will submit comments on their assessment of their own performance to you prior to your rating and evaluation in HRMS. • The method may be expected in some departments, but is not required. Share your MOE’s with Employee.

14. SMART GOALS – WHAT ARE THEY? • Goal Setting S M A R T Adjectives that describe how to write performance goals for employee evaluation:

15. Goal Setting DEFINING SMART GOALS S Functional competencies are the framework for areas to be measured. • Specific provides a target: quality or quantity expected, deadlines to be met • Measurable: can you easily determine whether the employee met, exceeded or didn’t reach? • Align your goals by keeping your current primary needs in mind • Realistic goals are written at the “good” level. Ask for your employee’s input. • How often do you need reports? How quickly do you want a response? How far aheadshould an event be planned? pecific easurable ligned ealistic ime-bound M A R T

16. SAMPLE FUNCTIONAL COMPETENCY GOALS IN WORK PLAN

17. REVIEWING SMART GOALS • Goal Setting Specific • Does the goal refer to a specific area of performance? • Is there only one, very clear picture of what success looks like when this goal is met? Measurable • Can the goal be objectively measured? • Can the goal be evaluated? • Can the goal be managed?

18. SAMPLE FUNCTIONAL COMPETENCY GOALS IN WORK PLAN

19. REVIEWING SMART GOALS • Goal Setting Aligned with Mission • Is the goal important and will it have a positive impact on results? • Is the goal aligned with other university, departmental, team, and individual goals? Realistic • Is there a 50 to 66% chance the goal can be achieved? • Can the goal be achieved given available resources? • Are the competencies required to achieve the goal required by the career band level?

20. SAMPLE FUNCTIONAL COMPETENCY GOALS IN WORK PLAN 4

21. REVIEWING SMART GOALS • Goal Setting Time-bound • When does the goal need to be achieved? • What are the incremental measurement points? • How does this goal impact other departments and other people?

22. BEHAVIORAL GOALS • Goal Setting • Supplement measurement of functional competencies • Identify why skillful employees may not be performing as expected • Define manager’s priorities for work unit success • Are selected from an dictionary of critical behaviors • Dictionary of Behavioral Competencies for Career Banding is linked into HRMS • Selected behaviors tie back into Targeted Selection • Limit number of evaluated behaviors to 5 or 6

23. SAMPLE BEHAVIORAL COMPETENCY GOALS IN WORK PLAN Total number of functional and behavioral competencies should not exceed 12.

24. ONGOING ACTIVITY – OBSERVE, NOTE AND DISCUSS Ongoing Feedback & Coaching • Throughout cycle, document work habits or behaviors that effectively contribute to goal achievement • Record and mention to employee any work habits or behaviors that do not effectively contribute to goal achievement • For new employee or new supervisor, a more formal discussion at 3 months is recommended • Don’t wait until Interim Review memo from HR to talk about noted performance accomplishments/deficiencies

25. WORK PLAN AVAILABILITY Ongoing Feedback & Coaching • Log in to jobs.uncc.edu/hr as Hiring Manager • Search for Position by Employee Name • Click on “Get Reports List” • Select Work Plan to View • Use Journaling Feature (new in 2012) to make notes • HRMS = Instant reference availability for both employee and manager

26. TYPES OF REVIEWS: PROBATIONARY Employees new to state universities and state government serve a probationary period of 3- 9 months. • “Essential extension” of selection process for: • Assisting employee in meeting expectations in work plan • Ending employment in cases of unsatisfactory performance • Terminating employee when competencies do not match business needs • Documenting whether employee “meets” the SMART goal expectations and becomes permanent; OR • Documenting a “conditional” status to extend probation

27. PROBATIONARY CONSIDERATIONS • With a good work plan, placing a new employee on “conditional” status is a straight-forward process • With “conditional” status, manager develops improvement plan by coordinating with Employee Relations • With a good work plan, termination of a new employee who cannot meet expectations while on probation is a simple documentation process • Termination without a work plan is not possible • If the probationary review is not completed, employee automatically becomes permanent after nine months • AVC for HR must grant special approval for any change to permanent status in less than 6 months

28. TYPES OF REVIEWS: ANNUAL INTERIM REVIEW • A formal “reminder” to communicate with your employee about performance • For all permanent SPA employees • Measured by work plan • Structured meeting for communication/feedback • Occurs in September – Schedule ahead • Interim Review September

29. INTERIM REVIEW CONSIDERATIONS • Conducted by “honor system” (HR does not usually collect) Process will be set up in HRMS • Begins preparation for second half of performance cycle • Most important to communicate any weak areas The annual end-of-cycle ratings should never be a surprise • Interim Review September

30. IMPROVEMENT PLAN Ongoing Feedback & Coaching Corrective action plan Short-term action plan initiated when employee’s performance fails to meet expectations Purpose: to achieve performance improvement • Assist employee not meeting expectations (2-“below good”) • Response to probationary, interim, or annual review • May be created any time during the performance cycle • Measures employee improvement in weak area(s) • Supervisor and employee agree to the conditions

31. TYPES OF REVIEWS: ANNUAL PERFORMANCE EVALUATION • Year-End Review March

32. PREPARE FOR PERFORMANCE DISCUSSION • Prepare – gather documentation of performance • Consider any feedback you have received over the year about this employee • Ask employee to prepare: • If desired, supervisors may encourage employees to provide self-evaluations to which they may then respond • Ask employees to contribute to ideas for their training in the next FY • Ask employees to think about their career growth and share their career goals • Year-End Review March

33. PREPARE FOR PERFORMANCE DISCUSSION • Discuss potential “mine fields” with your manager before having employee discussion • Schedule a formal appointment for the employee to discuss the performance results • Either before or after you submit your written comments • Try not to have to re-schedule, for employee’s benefit • Provide a “rating” for each expectation. • Allow time for response • Make sure they understand system process • Year-End Review March

34. RATING AN EMPLOYEE • You must rate each functional competency area required and prioritized in the position description and each behavioral competency. • Avoid over-rating based on perceptions that “everyone always gets 5’s.” With good work plans, 5’s should be rare. • Inflated ratings are of no benefit to your employee. • A “4” or “5” rating does require specific examples of how the goals were exceeded. • A “1” or “2” rating requires specific examples of how the goals are not being met. • Year-End Review March

35. PERFORMANCE EVALUATION COMMENTS

36. PERFORMANCE EVALUATION COMMENTS

37. PERFORMANCE EVALUATION SUMMARY 3-Good 4

38. FINAL BEHAVIORAL GOAL COMMENTS

39. ANNUAL CAREER DEVELOPMENT PLAN • Required Component of the annual Performance Evaluation What is it? An action plan for “enhancing an employee’s level of performance in order to excel in the current job or prepare for new responsibilities.” • Year-End Review March

40. COMPLETING THE PERFORMANCE EVALUATION Before final submission to the Reviewer, check for: • Ratings and comments as required on all prioritized competencies • Any employee comments not addressed in your meeting • Employee’s initials on the following statement: “…my manager met with me and reviewed this work plan with me. In addition, I have reviewed the work plan and have had the opportunity to ask questions and make comments during this meeting.” • Year-End Review March The Evaluation Reviewer marks the “Evaluation Complete” which authorizes submission of the employee’s rating.

41. HR CONTACTS Position & Salary Inquiries on Current Employees • Amy Braun 7-0651 (AA, DA, CU, Fin. Svcs, no IT) • Hal Walter 7-0655 (IT, Bus. Aff., Bus. Svcs., FM) • Steve Barnhart 7-0657 (work unit changes, action status, reporting) Recruitment, New Hire, Promotion Inquiries • Kieffer Gaddis 7-0670 • Tracy Worthey7-0668 (probationary review) • Robyn Flowers 7-0667 (advertisements) Improvement Plans, Performance, & Disciplinary Questions • Jeanne Madorin 7-0659 • Cindy Edwards 7-0658 • Paulette Douglas 7-0660

42. FINAL NOTES AND RESOURCES • If employee comes off probation in December, January or February, annual performance evaluation not due until end of following cycle • Ex: Hired in July 2011, 1st evaluation June 2013 • In these cases, you must be diligent in providing feedback without the mandatory requirements! • If employee changes jobs through on-campus recruitment during cycle, both supervisors are responsible for contributing to annual appraisal • Make notes on performance when a person leaves your unit to provide next supervisor

43. FINAL NOTES AND RESOURCES • If employee’s job changes through supervisor request (title, level, or competency change), supervisor is responsible for revising work plan within 30 days of change • The term “annual appraisal” is synonymous with “annual performance evaluation” (the new system uses the term “evaluation;” moving forward, use that term)

44. WEB SITE RESOURCES

45. PERFORMANCE EVALUATION≠COMPETENCY ASSESSMENT How these processes are different: • For Managers coming into the state university system from pay-for-performance companies, the role of the Performance Evaluation is difficult to distinguish from the role of the competency assessment. • The Competency Assessment is a tool for validating or adjusting pay based on demonstration or development of required functional competencies. However, it has rarely been used for pay increases since 2009. • The following table clarifies distinct purposes of each process.

46. PERFORMANCE MANAGEMENT VS. COMPETENCY ASSESSMENT

47. FORM AND PROCESS FLOWCHART POSITION AND INCUMBENT POSITION& REQUIRED COMPETENCIES INCUMBENT Contributing COMPETENCY ASSESSMENT PERFORMANCE MANAGEMENT Journey Advanced • CONTRIBUTING • JOURNEY • ADVANCED • OUTSTANDING • VERY GOOD • GOOD • BELOW GOOD • UNSATISFACTORY SALARY DETERMINATION CAREER DEVELOPMENT PLAN SOURCE: OFFICE OF NC STATE PERSONNEL

48. UNC-GA RECOMMENDS: • Career banding as a position and salary management system is unique to the NC University system, merging components of several position management structures • It is not intuitive • For an excellent overview, take the time to watch UNC – General Administration’s presentation for new managers at this link: (find on HR/Comp & Pos Mgmt landing page shown on slide # 35): http://www.northcarolina.edu/hr/unc/classcomp/Career-banding.pdf