Change Management and People Performance

1. Change Management and People Performance By Professor Simon Burtonshaw-Gunn – licensed under the Creative Commons Attribution – Non-Commercial – Share Alike License http://creativecommons.org/licenses/by-nc-sa/2.5/

2. School of the Built Environment MSc Construction Management People Management in the Built Environment Presentation 2: Performance Management Professor Simon Burtonshaw-Gunn

3. Presentation content . . . Change and Performance Management • Presentation 2: Performance Management • Performance Management and the organisation • Life cycle of People Management • Commitment strategies • Motivation • Strategic HR Planning • Performance Appraisal Process • Performance Management Cycle • Developing people – training, coaching • Grievance and Disciplinary process

4. Performance Management Performance Management is . .. “a means of getting better results by understanding and managing performance within an agreed framework of planned goals, standards and competence requirements. It is a process to establish a shared understanding about what is to be achieved, and an approach to managing and developing people so that it will be achieved.” Michael Armstrong, Handbook of Management Practice

5. Performance Management Performance Management is controlling the individual employees and that it is developed from the organisation’s business plan into individual performance targets. Business Strategy Internal Environment External Environment HR Strategy

6. Performance Management Relationship between external facing business strategies and internally focused product strategy. From ‘The Essential Management Toolbox: Tools, Models and Notes for Managers and Consultants.’ S. A. Burtonshaw-Gunn, 2008

7. Performance Management Another view . . . “Performance management is potentially the area of human resource management which can make the most significant contribution to organisational performance. Performance management is a process which is based on a number of activities; as such it is designed to improve strategic focus and organisational effectiveness through continuously securing improvements of individuals and teams.” From Philpott and Sheppard, Managing for improved performance, 1994

8. Performance Management Question . . . . What do you think Performance Management involves ???

9. Performance Management It is likely to involve: • Corporate objective setting • Performance assessment • Identification of potential • Training and career development • Succession Planning • Reward systems

10. Performance Management A typical process of performance management process is to . . . . • Ensure clarity on overall goals • Make task lists independently • Discuss and agree on a mutually acceptable list • Clarify objective of each task • Describe: Action - Result - Standards • Ensure understanding and agreement Agreeing objectives • Performance Management cycle Results discussed Performance determined Training Coaching Strengths Areas of development Agree action plans

11. Performance Management The Life Cycle of People Management Motivate Control and Develop Recruitment and Selection Exit HR Planning

12. Performance Management Commitment Strategies • Motivation • Leadership • Team development

13. Performance Management Motivation • The feeling of commitment to doing something well, and being prepared to put energy and effort into it because of personal interest • Motivated employees delight customers and enhance creativity • See Motivation Theories handout

14. Performance Management What affects Motivation? • Management style • Terms and Conditions • Involvement • Job Content • Personal Development See Exercises in Motivation

15. Performance Management Strategic Human Resource Planning • The purpose • The process • getting the right people with the right skills at the right time • forecasting needs • assessing current reality • gap management Handout on Strategic HRM

16. Performance Management A typical process of an appraisal systems is shown below . . . . • Objective Setting • Individual clear when to perform and what is expected • Performance targets, measures and standards exists • Identify which objectives are essential and which are desirable • Objectives need to be Defined, agreed and written and be ‘SMART (See next slide) Objective setting The Individual Recognition Performance monitoring Resources Feedback

17. Performance Management ‘SMART’ . . . Specific – clear about what is to be achieved Measurable – must state how success will be measured Achievable – ideally wit the person who will carry out the objective, and with anyone who will be affected by the results Realistic – achievable within the constraints of the situation and in alignment with other objectives Time-bound – a target set for achieving the objective (Or ‘SMARTT’ with the addition T for ‘Traceable’ covering provision of evidence that the objective has been completed)

18. Performance Management Objective setting • The Individual • Capability to perform as desired - skills and knowledge • Willing to perform The Individual Recognition Performance monitoring Resources Feedback

19. Performance Management Objective setting • Resources • People • Equipment, materials • Information • Plans • Money The Individual Recognition Performance monitoring Resources Feedback

20. Performance Management • Feedback • Relevant, immediate and frequent • Constructive, balanced and specific • Focused on critical success factors of task behaviour Objective setting The Individual Recognition Performance monitoring Resources Feedback

21. Performance Management Objective setting • Performance monitoring • Interim reviews of performance • Identify interim targets • Take action to remedy poor performance as necessary The Individual Recognition Performance monitoring Resources Feedback

22. Performance Management Objective setting • Recognition • Positive if performance is as expected • Could be linked to performance related pay or bonus • If performance is not up to standard identify problem and communicate need for improvement The Individual Recognition Performance monitoring Resources Feedback

23. Performance Management Does your company undertake annual staff appraisals? Why? How? Does it do it well? Could it do it better?

25. Performance Management • Please discuss . . . • the advantages to employees of introducing such a system • the disadvantages to the individual of not having an appraisal system • the disadvantages to the company of not having an appraisal system See Performance Appraisal Handout

26. Performance Management Wider view of Performance Management: • To provide a fully effective job performance, people need to be effective in three areas: • Knowledge (What we know), • Skills (What we can do) and • Competencies (How we go about it). • These three areas can be applied to a number of competencies within an organization such as customer focus, teamworking, innovation and problem solving, communications etc. These competencies are linked into individual performance as shown next:

27. Performance Management Recruitment Promotion Succession Planning Training Development – Individual and Team Career Planning Competencies Performance Retirement Redeployment Resignation Reward and Recognition Performance Management

28. Performance Management Developing People • Training … input of knowledge • Coaching … job performance dialogue • Mentoring … life / career planning

29. Performance Management Training Options • Public programmes • On the job • In – house customised • Supported individual learning • distance learning • supported learning

30. Performance Management Coaching – Coactive Coaching • Both parties as active collaborators in the coaching process • Coachee resourceful and capable of finding answers • Agenda comes from coachee and is key focus of relationship • Coaching addresses coachee as a whole person • Coaching relationship is a ‘designed alliance • Focus is on specific coaching skills and techniques rather than content or structure of a coaching session

31. Mission Strategies Values Objectives Performance Indicators and Standards Critical Success Factors Performance Review Identification of personnel Succession Planning Performance Improvement Programmes Total Reward System Better Performance Performance Management Linking Strategies with Performance . . . From Lawrie Philpott and Louise Shepherd in Strategies for Human Resource Management, Michael Armstrong (Ed), 1992. Kogan Page Limited

32. Performance Management • The leadership task as part of Performance Management involves undertaking three inter-related activities, in John Adair's Action-Centred Leadership model this is represented by three circles representing Adair's identified three core management responsibilities: • achieving the task; • building and managing the team or group • and finally, • managing the work and development of individuals.

33. Performance Management Maximizing the overlap between these increases leadership efficiency and performance. Individual Team Task Performance management is not just about the individual - its about creating and managing the balance

34. Performance Management Whilst the team leader will have to assign tasks, build the team and play a role in the development of staff . . . . Individual Team Task

35. Performance Management It should also be noted that high-performing teams exhibit the same regard for task, team-working and self and group development opportunities. Any examples . . .

36. Performance Management One example . . .

37. Performance Management What happens if it all goes wrong?? A look at Discipline and Grievance Procedures

38. Performance Management Discipline • Have a procedure • Apply it systematically • Be consistent • Beware the law

39. Performance Management Grievance Procedures STEP ONE Employee informs employer of grievance in writing STEP TWO Employer invites employee to discuss grievance Notifies employee of decision and right to appeal STEP THREE Employee informs employer that wishes to appeal Employer invites to meeting informs employee of final decision See Handout: ACAS Disciplinary and Grievance Procedures and Disciplinary Actions Exercise

40. Performance Management High Performance through teams

41. Performance Management High Performance through teams Where Performance means: Achieving business targets + (Achieving individual objectives + Using appropriate behaviours)

42. Performance Management High Performance through teams Where Performance means: Achieving business targets + (Achieving individual objectives + Using appropriate behaviours) What is the most important part of this statement?

43. Performance Management High Performance through teams Where Performance means: Achieving business targets + (Achieving individual objectives + Using appropriate behaviours) Here is a clue

44. School of the Built Environment MSc Construction Management People Management in the Built Environment Presentation 2: Performance Management Professor Simon Burtonshaw-Gunn