Performance Management

1. Performance Management Presented by Cheryl Lea Reed Department Head HR Operations GuideStone Financial Resources April 24, 2014

2. Agenda • Introductions • Performance Management vs.Performance Appraisal/Review • Performance Planning • Performance Appraisals/Rating • Performance Review Meeting • Performance Goal Setting • Appraisal Forms • The Performance Management Method

3. Introduction • HR professional for over 25 years • SPHR Senior Professional in Human Resources designation from SHRM/HRCI • HR manager/leader for 20+ years • GBA Group Benefits Associate from ISCEBS • Undergraduate and Masters Business Degrees in Management from Dallas Baptist University • Multi-year volunteer for The HRSouthwest Conference, most recent role of Bookstore Director

4. Performance Management vs. Performance Appraisal

5. A Matter of Perspectives Performance appraisal • One-time event • Retrospective • Short term • Correction oriented • Completing the form Performance management • Ongoing • Prospective • Long term • Progress steps • Planning/goal setting

6. Performance Management Continuum

7. Performance Planning

8. Performance Planning • The key idea is to work to develop your employees and create an environment where each employee can be their best. • You want to clearly define the most important outcomes needed from each staff position within the framework of your organization's strategic plan. • The performance appraisal is a logical extension of the process which allows the supervisor and employee to appraise and discuss the accomplishment of certain standards and goals.

9. Performance Planning • Allows the supervisor and employee to improve communication and plan for higher levels of output from the employee, unit or department. • Helps remove potential roadblocks to high performance for you and your employees. • Meet frequently with employees to review their progress and plan together on a path for achievement.

10. Performance Planning • Keep the job description up to date! • Identify the: • Core responsibilities of the position. • Special projects suited to the position. • Performance measures needed to indicate required achievement levels during and at the end of the performance cycle. • Ensure that employees have the tools, resources and training and development needed to carry out their responsibilities successfully.

11. Performance Appraisal/Review

12. Performance AppraisalsProvide the Employee: • Essential feedback from management. • An opportunity to discuss their performance with management. • Identification of employee training anddevelopment needs. • A basis for compensation decisions. • The goals for increased productivity and improved employee performance.

13. Performance AppraisalsProvide the Employer: • The opportunity to build trusting and respectful relationships with employees. • Safeguards for the company and its employees from legal liability. • Establishment of goals and performance expectations. • Reinforcement of company values and culture.

14. Performance Appraisal Ratings

15. Rating Standards • Your performance management process should include a formal rating scale. • Most companies use a three- or five-tier rating scale. • Some use "words" or "numbers" and some use a combination of both. • The key is to be consistent and fair on whichever scale you use.

16. Rating Standards • At GuideStone, we use a five-tier scale with associated numerical scores: • Outstanding — 5 • Highly Effective — 4 • Competent — 3 • Needs Improvement — 2 • Unacceptable — 1

17. Rating Descriptionand Criteria • Outstanding— Performance is outstanding and exceptional. Represents outstanding performance that is obvious to all. • Consistently exceeds performance standards • Continuously contributes to the organization’s success by adding significant value • Demonstrates a comprehensive understanding of work; takes action to identify needs and solve problems

18. Rating Descriptionand Criteria • Highly Effective — Performance clearly and consistently exceeds the competent level; represents performance that is noticeably better than most. • Meets or exceeds all performance standards • Effectively performs all aspects of job functions and meets goals • Capably adjusts to changing workplace needs and work requirements

19. Rating Descriptionand Criteria • Competent — Performance meets expectationsand is consistently good; represents good, solid, reliable performance. • Generally meets expectations of the position • Competently performs aspects of the job function or goal • May require Performance Improvement Plan (PIP) to concentrate on areas of weakness • May require additional resources or training to move above rating

20. Rating Descriptionand Criteria • Needs Improvement — Performance has fallen below the competent level, or this rating may apply to an employee when the need for further development is evident; represents performance requiring improvement in some areas. • Does not adequately perform most job aspects • Performance levels are below expectations • Requires guidance in performing routine job duties • Requires PIP to address areas of weakness with progress review dates

21. Rating Descriptionand Criteria • Unacceptable — Performance is unacceptable and there are consistent weaknesses in key areas; represents performance that requires immediate improvement in many areas. • Fails to perform most aspects of the position • Performance levels are below expectations and hurting overall performance • Requires constant guidance in performing routine job duties • Requires PIP and training to address areas of weakness with progress review dates

22. Rating Perils • Halo/horn effect — rate employees the same on every trait • Central tendency — lack of rating differentiation between employees • Leniency — avoids honest ratings to avoid conflict • Recency — narrow focus on recent events • Similarity/like me — favorable rating to employees who have similar values or interests to the rater • Constancy — rate employees via rank order

23. Avoiding Other Perils • Make objective statements. • Consider the totality of the employee’s performance. • Avoid inadequate record keeping — lack of specific examples. • Establish milestones for progress reviews. • Discuss specific performance issues andbehaviors objectively.

24. Avoiding Other Perils • Consider legal impact of inflated performance ratings. • Maintain clear and open communication channels. • Specific comments should avoid any connotations which are connected to: age, race, sex, religion, national origin, veteran or a specific disability.

25. Ways to Legally Discriminate • Discriminate on the basis of: • Poor performance • Excessive or unexcused absenteeism • Tardiness • Violating policies or rules • Not meeting job qualifications • Poor work references • Incompetence • Poor work relationships • Misconduct

26. Performance Review MeetingCreating the “Right” Environment

27. Planning theReview Meeting • Advance planning: • Employee’s self appraisals should be completed two weeks prior to managerial review. • This allows employees to provide feedback to their manager. • Be sure to gather all needed documentation. • Plan for open dialogue: • This is an opportunity to review performance, consider lessons learned, progress for the period and to establish goals and objectivesfor next period.

28. Planning theReview Meeting • Lay out a plan for performance discussions. • Collect and review notes, statistics, citations and performance based examples. • Schedule sufficient time to focus on the review. • Job description/addendums should tie together with performance review. • Prepare to discuss the full range of issues which may arise in the performance review discussion.

29. The Review Meeting • Be prepared and set the right tone. • Respect confidentiality of the review discussion when possible. If unlimited confidentiality cannot be promised, advise employee accordingly. • No cell phones, no emails, no text messaging, no electronic devices, no interruptions!

30. The Review Meeting • Handle dissent professionally — disagreements should be noted as a matter of record. • Don’t exhibit defensiveness — if employee criticism is justified due to management failure or lack of resources, accept and move on to next area of review.

31. The DifficultReview Meeting • Difficult evaluations: • Describe unsatisfactory performance/behavior • Cite specific observed examples: • Past incidents • Lack of meeting goals • Impact on employee, team, customer, department, et al.

32. The DifficultReview Meeting • Solicit a constructive employee action plan to resolve or ameliorate the performance failures or behavioral issue. • Review action plan and establish milestone date(s) to review progress. • Try to end on a positive note.

33. Performance Goal Settingand Planning

34. Goal Setting Standards • Define and establish specific goals/objectives for the review period. • Create mutually agreed upon timelines of break-out data for progress reports on goals and objectives. • Communicate changes or redirection of goals and objectives in a timely manner.

35. Goal Setting Standards • Use SMART goal criteria: • S pecific • Measurable • Achievable • Relevant • T ime-bound

36. Goal Setting Standards • Align goals with the organization’s business plan. • Establish mutually agreed upon goals which add value to the business. • Recommend and recognize behaviors that are aligned with organizational business plans. • Establish milestone review dates.

37. Appraisal Forms

38. The PerformanceManagement Method

39. The Performance Management Method • Establish expectations: • Policy and procedure expectations • Job performance expectations • Establish specific goals • Provide and document ongoing performance feedback: • Formal and informal coaching:“Great Job!!!” • Formal and informal counseling:“Need some improvement”

40. The Performance Management Method • Recognize performance management is a continuing process to assist everyone in enhancing performance and development. • Establish milestone dates for periodic monitoring of performance objectives and progress reports in objective terms. • Be aware of the potential for goals/objectives to be changed or re-targeted during the review period. • Take corrective action when necessary.

41. The Performance Management Method • Maintain open communication channels to ensure that issues are elevated quickly and resolved expeditiously. • Coach, assist and/or re-direct employees who request assistance and who are failing to meet standards.

42. Summary • Performance Management includes: • Performance PLANNING • Performance REVIEW • Performance GOALS

43. Questions? Comments? • For additional questions, please don’t hesitateto contact me: • Cheryl Lea Reed, MAM, SPHR, GBA • Department Head HR Operations, Human Resources • GuideStone Financial Resources • 214-720-4783 office • 214-608-8174 cell • 214-720-4777 fax • Cheryl.Reed@GuideStone.org

44. Thank You!!!!!