Performance Management

1. Performance Management The Nuts and Bolts UNMC Human Resources Strategic Staffing &Compensation

2. Today’s Agenda • Overview of Performance Management • Setting accountabilities, duties, and goals • Developing measures • Ongoing coaching and feedback • How to conduct the annual performance appraisal

3. Performance Management Overview • 1.) Manager/Employee Set: • Accountabilities • Duties • Goals The Performance Cycle 4.) Annual Performance Appraisal 2.) Manager/Employee agree on measures 3.) On-going coaching, feedback, and follow-up by manager through entire performance period.

4. Accountabilities, Duties and Goals Development A good place to start – job description • Accountabilities are the broad areas within a job that change little from year to year. • Examples of clerical accountabilities: -Records management -Administrative support -Customer service -Budget maintenance

5. Accountabilities, Duties and Goals • Duties are important and measurable outcomes set within each accountability area • Example of clerical budget maintenance duties: • Process payments & back charge dept cost centers for advertising and background checks. • Reconcile purchase card. • Maintain files of receipts and purchase orders. • Goals are targets to be met during the year based on project completion.

6. Accountabilities, Duties and Goals Reminders for writing duties: • Crisp, concise statements • Aids understanding • Stated forcefully • Each objective should contain an action verb identifying exactly what will happen as a result of activity in this area. • Prioritized and Weighted • gives individuals an idea of where the greatest amount of effort should be expended • 3 - 7 duties per accountability • Too many and some may be neglected • Include employee in process of creating duties • Fosters understanding, agreement, and commitment

7. Accountabilities, Duties and Goals Core Values • Make employee aware of what they are and how they affect his/her job. • Inclusiveness • Occupational Knowledge/Technology • Orientation • Team Focus • Leadership • Accountability • Adaptability • Communication • Customer/Quality • Focus

8. Measures Four Primary Methods • Quality – How well was the duty performed. • Example: spelling errors in documents, customer complaints, not completing work as directed. • Quantity –How much, many, often? • Risk is that quantity alone does not provide a measure of quality. Example: number of phone calls received, number of reports completed. • Cost – Variance against budget • Example: dollars spent/saved, waste, overtime incurred. • Time – Clock and calendar. • Example: Due dates, adherence to schedule, average call response time, projects completed per month.

9. Measures continued… Methods may be combined • Example: Was the project completed on-time, within budget, and up to quality expectations. • Example of adding measures to clerical budget maintenance duties: • Process payments & back charge appropriate (quality) dept cost centers for advertising and background checks within the same billing cycle (time – specific). • Accurately(quality) reconcile Purchase card. • Maintain organized(quality) files of receipts and purchase orders.

10. Ongoing Coaching And Feedback Coaching Defined • Collaboratively setting expectations • Providing training, tools, priorities, and reasonable time tables • Evaluating performance and providing feedback at time of task completion • Providing meaningful recognition and reward

11. Ongoing Coaching And Feedback Effective Coaching • Communicate face to face, know when email, phone etc. is appropriate • Listen to employee • Use encouragement and suggestions for improvement • Be action-oriented, not passive • Counsel when problems/setbacks occur • Confront when performance is not meeting expectations

12. Annual Performance Appraisal Purpose (why) • To establish a formal documented measure of employee performance • Generate information to support human resource decisions such as promotions, transfers, reassignments, demotions, terminations, and wage adjustments • Recognition of the importance and value of employee performance • Address areas of improvement and set plans to correct • Establish performance plans and discuss developmental opportunities for coming year

13. Annual Performance Appraisal Costs of not managing performance effectively… • Poor employee retention • Poor safety records • Poor per-person productivity • Lost work days • Low morale …are hidden, but significant The Gallup Organization, 2000

14. Annual Performance Appraisal Appraisals need to be OBJECTIVE • Webster’s Dictionary – “to be characterized by honesty, justice, and freedom from improper influence.” • They should be fair, impartial, equitable, candid, impersonal and based on accountabilities, duties, and goals of the job.

15. Annual Performance Appraisal Writing the appraisal • Collect data • Job data – • Accountabilities, duties, and goals (if starting from scratch, job description is a good place to begin) • Employee data – • Factual - number of days missed, reports turned in on time… • Critical Incidents –situations in which employees acted especially effective or ineffective. (note to file throughout year). • Review last years appraisal • Employee self appraisal • Employees are not merely passive when evaluations are made • Provides insight into employee’s view of their own performance • Facilitates a two-way discussion between employee and manager

16. Annual Performance Appraisal Writing the appraisal • Evaluate Performance • Begin with end in mind • What are the one, two, or three main ideas you want the person to take away from the discussion. Appraisal Discussion Models* Final Rating Most Likely Prospect Discussion Objective Review opportunities Make development plans Review possibility of extending responsibility Decide how to maintain current level Review opportunities Make development plans Decide how to maintain/improve current level Plan correction/gain commitment Consider reassignment and/or prepare for termination Promotion Growth in present assignment (vertical load) Broadened assignment (horizontal load) No change in responsibilities Promotion Growth in present assignment No change in responsibilities Performance correctable Performance uncorrectable Superior Satisfactory Unsatisfactory * Source: (Grote, 1996, p. 153).

17. Annual Performance Appraisal Writing the appraisal • Evaluate Performance Continued • Three idea summary for each accountability • Statement summarizing how the person did with the overall accountability (include valued behaviors). • Specific statement(s) pertaining to duties from the data you have collected (include critical incidents). • Statement pertaining to continued performance – improve, stay the same, etc.

18. Annual Performance Appraisal Writing the appraisal • Things to keep in mind • Keep comments objective, factual, accurate, bias free • For especially high or low scores – increase the amount of information to support the assessment. • End summary section is a good place to codify your overall message to the employee. • Let it settle before discussion or handing in.

19. Annual Performance Appraisal Rating Scale RATINGEXPLANATION 5Exceeds expectations. Clearly exceeds expectationson a consistent basis. 3.6-4.9Meets expectations & Exceeds at Times. Consistently meets all expectations and at times exceeds several. 3.0-3.5Meets expectations, too soon to evaluate. Fully and consistently meets expectations. 2.0-2.9Does not fully meet expectations, attention required. Does not fully meet expectations. Developmental action required. 1.0-1.9Immediate improvement required. Fails to meet key expectations. Immediate improvement required.

20. Annual Performance Appraisal Weighting

21. Annual Performance Appraisal Evaluation Errors • Halo/Horns • Failing to discriminate between the person’s strong and weak points. (Individuals) • Strictness/Leniency • Very little differentiation between good and poor performers. (Groups) • Central Tendency • Lump everyone together around the “average” or “middle” category. • Recency • Allowing the individual’s most recent behavior to speak for his/her overall performance on a particular dimension. • Personal Bias • Allowing specific biases, such as race, age, and gender, to enter into performance appraisals.

22. Annual Performance Appraisal Writing the appraisal • Legally Defensible Evaluations • Courts view • the performance appraisal should be job related. • Reasonable • the program is generally understood and accepted as reasonably useful, fair, necessary, and objective. • Relevant • clear statements of performance requirements, Personality traits, race, sex, and age are rarely job-related. • Reliable • Free from significant defects – Evaluation of performance for the same individual at the same time should be consistent among different raters. Contain a minimum of subjectivity that leads to distortion. Make sure to back up more subjective judgments with documented, observable behavior.

23. Annual Performance Appraisal Conducting the appraisal discussion • Review agenda covering the order in which you intend to cover things. • Review performance appraisal with employee, starting with most positive things first. • Clearly describe the gap between desired and actual performance. Describe the unwanted behavior Express how this impacts you, others, organization Specify the behavior you would like to observe Consequences…if corrected,…if not corrected

24. Annual Performance Appraisal Conducting the appraisal discussion 4. Use active listening skills when employee is expressing their view point. • Listen carefully to what the speaker is saying • Give speaker full attention without thinking about how you are going to respond. • Don’t interrupt the speaker • Paraphrase what the speaker has said • Ask open ended questions – Tell me about…, Explain… • Avoid closed questions that can be answered “yes” or “no” that start with “is”, “are”, “could”, “would”, “do”, “did”, and “should.” 5. Speak calmly and support your statements with facts

25. Annual Performance Appraisal Conducting the appraisal discussion 6. Approaches for addressing the severity of performance gaps • Discuss the issue during the appraisal without making written reference to it on the appraisal document • Include a reference to the issue in the written narrative of the appraisal document. • Include a reference to the issue in the written narrative of the appraisal document and lower the appraisal rating for the particular segment of the appraisal effected by the poor performance. • Include a reference to the issue in the overall summary of performance and lowering the final appraisal rating for the overall performance.

26. Annual Performance Appraisal Rewards and Recognition • Fun • Prizes • Money • Recognition • Assign a favorable project • Increased freedom • Personal growth • Delegate Authority • Advancement Michael LeBoeuf

27. Annual Performance Appraisal Rewards and Recognition Gallup’s Study • Looked at over 80,000 managers in 400 companies to determine what keeps your BEST PEOPLE satisfied and came up with 12 factors – 3 of which relate to recognition! • In the last 7 days, have you received recognition or praise for a job well done? • Does your supervisor seem to care about you as a person? • Is there someone at work who encourages your development?

28. Annual Performance Appraisal Wrap up • Review (change as necessary) accountabilities, duties and goals for the coming year. • Discuss developmental opportunities

29. Thank you, Questions/Comment? • Tools are available to help • NU Values Website (nuvalues.unmc.edu)