Department of Transport, Roads and Community Safety PERFORMANCE MANAGEMENT FOR SUCCESS 2007

1. Department of Transport, Roads and Community Safety PERFORMANCE MANAGEMENT FOR SUCCESS 2007

2. DEFINITIONS OF PERFORMANCE MANAGEMENT Performance Management is : “a strategic and integrated approach to delivering sustained success to organisations by improvingperformance of people who work in them, and by developing the capabilities of teams and individual contributors.” - Armstrong and Baron (1988:7)

3. WHAT IS PERFORMANCE ? Performance is what people say and do! Performance Management is shaping what people say and do to the needs of the organisation. In effective organisations people engage in activities that service the customers of the organisation. If motivation is the answer, what is the question? What drives your subordinates to perform their daily functions?

4. WHAT IS PERFORMANCE ? To deliver effective performance one needs willing, able and empowered employees. The question that managers should be asking is, “How do I get my staff to perform effectively?” NOT “How do I motivate my staff?“

5. MANAGING PERFORMANCE PERFORMANCE MANAGEMENT DIFFERENTATION BETWEEN PERFORMANCE MANAGEMENT AND MANAGING PERFORMANCE Capacity; Commitment; Resources; Work Ethics; Motivation; Culture; Competence; Leadership; Attitude; Responsibilities. Policies; Systems; Processes; Practices; Results; Appraisal; Measurement; Bonuses; Grievances.

6. Performance: what is the issue? Organisational performance (Macro-org) Employee performance (Behavioral) Perf. Mng.+ Mng. Perf. (mgt process) Performance Management system Performance Appraisal System Performance Bonuses & Pay Progression

7. From the above table, it is evident that there are variables that we can influence and those which we can’t. Any of these factors can however prevent employees from performing – placing the emphasis on diagnosing performance problems! FACTORS INFLUENCING INDIVIDUAL PERFORMANCE

8. WHY PERFORMANCE MANAGEMENT SYSTEMS FAIL! • Individual goals are not linked to strategy. • There are no consequences for non-performance by employees. • Employees do not understand what is expected of them. • Necessary job competencies have not been developed. • Managers do not use individual goals to drive performance. • There are too many goals per employee. • Complex forms and procedures are used.

9. WHY PERFORMANCE MANAGEMENT SYSTEMS FAIL! (Contd.) • There is no link between effective performance and reward/ recognition. • There are unidentified obstacles to performance. • No feedback is given on performance. • Employees are not held accountable for results. • Performance management is seen as separate from the day-to-day management of people. • Employees are treated poorly and therefore do not care about what they do.

10. EFFECTIVE PERFORMANCE MANAGEMENT : • Each employee should have goals and measures that are linked directly to the organisation’s strategy. • Individual measures are developed by cascading the organisational objectives down – ALIGNMENT. • Identify the critical success factors and key performance areas for the organisation. • Each employee has key results areas (KRA’s), and key performance indicators. • Identify any gaps in an individual employee’s competence. • Address gaps through personal development planning.

11. Performance appraisal should aim at developing the individual… …his/her career in the organisation and any training and development needs. …so as to improve his/her performance in the future. Performance appraisal should be an opportunity for an employee to discuss… PERFORMANCE MANAGEMENT vs PERFORMANCE APPRAISAL

12. Strategic plan & performance management Step 1: Three-year Strategic Plan Step 2: Three-year Medium- Term Budget Step 3: One-year Operational Plan Step 10: Annual Review Organisational Performance HOD Performance Step 4: HOD Performance Agreement Step 9: Performance Moderation SMS Performance Step 5: Senior Managers Perf. Agreements Step 8: Performance Appraisal Non-SMS Performance Step 6: Levels 1 to 12 Perf. Agreements Step 7: Performance Reviews

13. CLARIFY EXPECTATIONS (Setting goals and measures) PLAN TO FACILITATE PERFORMANCE MONITOR PERFORMANCE PROVIDE FEEDBACK COACH, COUNSEL AND SUPPORT RECOGNISE GOOD PERFORMANCE PERFORMANCE MANAGEMENT CYCLE

14. CLARIFY EXPECTATIONS (Setting goals and measures) • Ensure that the employee understands what is expected of him/her. • Set performance objectives and measures. • Ensure a two-way dialogue during this phase. PERFORMANCE MANAGEMENT CYCLE

15. PLAN TO FACILITATE PERFORMANCE • Identify any interventions necessary to improve the subordinate’s performance. • This can include resources, delegation of authority, additional human resources, training and development, etc. PERFORMANCE MANAGEMENT CYCLE

16. MONITOR PERFORMANCE • Management by wandering around • Ongoing performance meetings • Telephone calls • Written reports. PERFORMANCE MANAGEMENT CYCLE

17. PROVIDE FEEDBACK • Provide consequences for performance (praise/recognition or reprimanding) • Redirect efforts of the subordinate if necessary “FEEDBACK IS THE BREAKFAST OF CHAMPIONS” PERFORMANCE MANAGEMENT CYCLE

18. COACH, COUNSEL AND SUPPORT • Coach the subordinate where a serious performance deficit is revealed. • Counsel the subordinate and offer solutions to overcome personal/interpersonal problems. • Support subordinates and ensure that they know that you have confidence in them. PERFORMANCE MANAGEMENT CYCLE

19. RECOGNISE GOOD PERFORMANCE • Good performance should be followed by positive consequences. • There should be a clear link between good performance and reward in the organisation. “BEHAVIOUR IS A FUNCTION OF ITS CONSEQUENCES” - Prof BF Skinner PERFORMANCE MANAGEMENT CYCLE

20. DIAGRAMMATIC OVERVIEW OF POOR PERFORMANCE POOR PERFORMANCE COLLECTIVE POOR PERFORMANCE INDIVIDUAL POOR PERFORMANCE RELATIONSHIP PROBLEMS MISCONDUCT MOTIVATIONAL PROBLEMS INCAPACITY: POOR PERFORMANCE INCAPACITY: ILL-HEALTH STRUCTURAL AND OTHER PROBLEMS

21. CATEGORISING INDIVIDUAL POOR PERFORMANCE • How does a supervisor go about categorising the reasons for individual poor performance into one of the three categories set out? • Direct observation (e.g. fighting or an employee is injured on duty) • The Supervisor receives information from other employees • The Supervisor attempts to correct the employees behaviour through informal advice and correction but the employee fails to take any notice (interaction) • The Supervisor talks to the employee to find out the reason for the poor performance (investigative counselling)

22. SUPERVISORS SHOULD NOT IGNORE • POOR PERFORMANCE e.g.: • EXCESSIVE ABSENTEEISM, • A PERSON TAKING ALL OF THEIR SICK LEAVE CONSISTENTLY WHEN YOU DON’T THINK THEY ARE SICK • CONTINUAL MINOR INSUBORDINATION. DEALING WITH INDIVIDUAL POOR PERFORMANCE

23. IF GOOD PERFORMANCE/ BEHAVIOURAL STANDARDS ARE NOT MAINTAINED ON A CONSISTENT BASIS, THE POOR PERFORMANCE BECOMES THE NEW STANDARD. YOU WILL LOSE RESPECT AND THE DEPARTMENT WILL SUFFER. DEALING WITH INDIVIDUAL POOR PERFORMANCE

24. EMPLOYEE INTERESTS EMPLOYER INTERESTS COMMON INTERESTS THE SUPERVISOR’S DILEMMA CONFLICT BETWEEN INTERESTS • To maintain common interest, supervisors should : • Be honest; • Be transparent; and • View the maintenance of performance standards as joint objectives.

25. WHAT IS INCAPACITY: POOR PERFORMANCE? Incapacity: poor performance is the inability or failure of an employee to adhere to reasonable performance standards set by the employer where the failure to perform is not caused by ill health. MISCONDUCT deals with the failure by an employee to adhere to behavioral standards set by the employer while, INCAPACITY: POOR PERFORMANCE deals with the inability to adhere to performance standards.

26. BASIC PROCEDURE FOR DEALING WITH POOR WORK PERFORMANCE (INCAPACITY) If the Employee Responds the performance standard is restored KNOWLEDGE OF STANDARDS NECESSARY KNOWLEDGE OR SKILLS POOR PERFORMANCE COUNSELLING SKILLS COUNSELLING / EVALUATION KNOWLEDGE OF TRAINING / GUIDANCE OPTIONS TRAINING / GUIDANCE COUNSELLING SKILLS FURTHER COUNSELLING ACCOMODATION / SHORT OF DISMISSAL KNOWLEDGE OF ALTERNATIVES ENQUIRY PROCEDURES AND SKILLS TERMINATION EXTERNAL DISPUTE MECHANISMS

27. MANAGING PERFORMANCE THAT IS NOT FULLY EFFECTIVE In managing performance that is not fully effective or lower, the following remedial or developmental support may also be implemented, subsequent to the determination of the cause thereof: Training and Development In the case where an employee lacks the necessary inherent competencies in order to carry out his/her job. Employee Assistance Programme Where an employee encounters social and related problems that may cause poor work performance.

28. MANAGING PERFORMANCE THAT IS NOT FULLY EFFECTIVE (CONTD.) Incapacity Code If the performance is not fully effective or lower and the desired improvement cannot be effected due to employee’s unfitness or incapacity to carry out his/her duties the supervisor must comply with the procedural requirements of PSCBC Resolution 10 of 1999 and Resolution 1 of 2003 – “Incapacity Code”. Disciplinary action After suggested performance improvement mechanisms and several warnings, consistent poor performance on the part of employees may require taking of disciplinary actions in terms of the Labour Relations Act and the Disciplinary Code and Procedures (i.e PSCBC Resolution 2 of 1999 as amended).

29. CONCLUSION • Performance Management, if properly implemented, can lead to substantial improvement in the performance of : • Individual employees; • Teams; and • The organisation • Effective performance management entails interpersonal relationships and is dependent upon robust one-on-one discussions between managers and subordi8nates on goals, performance objectives and performance outcomes.

30. RESOURCES 1) Organisational Behaviour (A contemporary South African perspective) – Amanda Werner (Editor)2) DPSA PRESENTATION : Update on Performance Management in the Public Service - Dipsy Mereeotlhe, 25 June 20063) BUTTERWORTHS LABOUR RELATIONS TRAINING MATERIAL : Performance Management Skills For Supervisors