HR Performance Management Training - Salma Kanaan.pptx

HR Performance Management T

1. www.blueoceanacademy.com HR Performance Management Training July 2024 Prepared by: Salma Kanaan

2. The 9 b o x grid e xplained Under s tand wh a t the 9 b o x grid is and h o w it can benefit y our talent mana g ement strategy. E xplore the four steps you need to g o th r ough t o c r ea t e y our o wn 9 b o x grid: S t ep 1: De t ermine y our ta r g et S t ep 2: Define pe r f orman c e cri t eria S t ep 3: Define po t ential cri t eria S t ep 4: V alida t e and visuali z e data

3. The 9 b o x is a talent mana g ement t ool which allows you to divide employees into nine groups based on their pe r f orman c e and po t entia l . HIGH Wha t is the 9 b o x grid? D e v elop L O W HIGH Performance P o t ential Co r e Obse r v e — Dilemma D e v elop/ Stretch S t r e t ch/ D e v elop S t r e t ch Obse r v e — Effective Observe/ T ermin a te Trusted p r o f e s sional

4. A d v anta g es o f the 9 b o x grid Simplicity The 9 b o x grid has a fair l y simple and straightforward structure. All you need to do during your employee review is match them to the right b o x based on their pe r f orman c e and po t ential f or g r o wth. Comp rehensi v e talent o v e r vi e w The 9 b o x grid p r o vides an o v e r vi e w o f y our talent pool based on pe r f orman c e and po t entia l . This ma k es it easier f or y ou t o spot high pe r f ormers with g r eat po t ential and help them fu r ther d e v elo p . Targeted development initiatives Y ou can tailor d e v elopment p r og r ams based on where your employees fall within the grid. F or e xampl e , those who h a v e high po t ential but l o w pe r f orman c e might benefit f rom specific skill training or mentorship. Enhan c ed talent r e vi e w s Y ou can use the grid during talent r e vi e w meetings to provide constructive feedback and clear er r e c ommendations about y our empl o y ee s ' pe r f orman c e , po t entia l , and the ne ces sa r y d e v elopment path s .

5. F ocus on r oles whe re i t ’ l l be mo s t impactfu l . This wi l l ensu re that the ef f o r t y ou put in t o this p r o c es s can help y our o r g anization achi e v e its g oal s . He r e a r e the g r oups y ou should f ocus on: Roles or functions critical to the success of y our o r g anization R oles or functions which a r e ha r d to fi l l due to their speciali z ed natu r e Senior r oles which a r e in t eg r al to y our su c c ession planning On c e y o u ’ v e identified these priority segment s , r e vi e w them to ensu re that they align with the needs and g r owth di r ection o f y our o r g anization. S t ep 1. De t ermine y our ta r g et

6. L o w pe r f orman c e Mode r at e pe r f orman c e High pe r f orman c e 2.2. C a t e g orizing pe r f orman c e in the 9 b o x grid The 9 box grid consists of three performance categories: low, moderate, and high. This is the scale you use to score your employees during their performance appraisal. S t ep 2. Define pe r f orman c e cri t eria The empl o y ee does n ’ t align with the job r equi r ements and mi s ses their personal ta r g et. Crit eria Indic a t ors Consi s t ent l y fal ls sho r t o f month l y ta r g et s . R e c ei v es r e g ular f eedback about n o t fulfi l ling job dutie s . The empl o y ee aligns t o some e x t ent with the job demands and archives some, but not all, of their individual objecti v e s . Meets some project deadlines but struggles with others. Demonstrates proficiency in some job-related skills but lack in o ther s . The empl o y ee fu l l y meets the r equi r ements o f their job and their individual ta r g et s . R e g ularl y e x c eeds ta r g et s . Demonstrates leadership skills and take initiative.

7. 3.1. Define p o t ential within y our o r g aniz a tional c on t e xt Unli k e pe r f orman c e , po t ential can be much mo r e ab st r act. T o use this ef f ecti v e l y , y ou need to define and under stand it within the c on t e xt o f y our o r g anization. Ask y ourself: What does po t ential look li k e in your organization? The answer to this question wi l l help y ou identi f y c ompe tencies or characteristics that can indicate if someone has the a p titude f or g r o wth. On c e y o u ’ v e identified the r el e v ant qualitie s , the r e a r e t w o w a y s y ou can measu r e them: using s tanda r di z ed p s y chometrics or d e v eloping y our o wn as se s sment cri t eri a . S t ep 3. Define p o t ential cri t eria Using s tanda r di z ed p s y chometrics These t ools wi l l ensu re that y our as se s sment is fai r , v alid, and unbiased. Y ou can ma k e use o f c ompe t ency po t ential measu r es , which includes personality and ability measu r e . These can be t r ansla t ed to y our c ompe t ency r equi r ement s . D e v eloping y our o wn cri t eria If s tanda r di z ed p s y chometrics a r e n ’t suitable or a v ailabl e , y ou can e s tablish y our o wn as se s sment cri t eri a . Ma k e su r e the r e a r e at lea s t th r ee pie ces o f e viden c e to suppo r t each r atin g . Y ou can a v oid bias b y using a s y s t ematic app r oach: c onsi st ent ques tion s , uni f orm data c o l lection, and uni f orm ana l y si s .

8. 4.1. V alid a t e d ata On c e y ou h a v e a l l the data y ou need, i t ’ s important to verify the data quality. You can: Scan for inconsistencies that might change h o w pe r f orman c e or po t ential is r a t ed. Pay particular attention to outliers — individual anomalies or t r ends within specific employee groups that might hint at larger i ssues or oppo r tunitie s . S t ep 4. V alid a t e & visuali z e d a ta 4.2. Visuali z e d a ta on the 9 b o x grid Y ou can n o w p r o c eed to the visualization s ta g e . Start plotting the gathered data onto the 9 box grid. This wi l l gi v e y ou an o v e r vi e w o f y our o r g anizatio n ’ s talent landscap e . Tips Aim f or clarit y . A matrix clu t t e r ed with e x c es si v e in f ormation or diff e rent c olors can be ha r d to in t erp r et. P rioriti z e simplicit y . The grid should p r o vide insights at a glan c e to enable ef f ecti v e decision-making without o v e r whelming the vi e w e r .

9. 5 talent manag ement c a t e g ories T o be t t er mana g e y our talent, y ou can divide y our w ork f o r c e in t o fi v e ca t e g ories: Observe/terminate: low performers with low potential Obse r v e: obse r v e dilemmas or obse r v e ef f ecti v e Develop and trusted professional: employees who on l y e x cel in one a r ea o f the 9 b o x grid Mode r at e t o high pe r f orman c e and p o t ential: the c o r e o f y our w ork f o r c e Stretch: high performers with high potential Let’s take a closer look at these categories. For each g r ou p , w e wi l l also discu s s the talent mana g ement and d e v elopment actions y ou can ta k e .

10. Obse r v e/ t ermin a t e Observe/ T ermin a te These a r e empl o y ees who s c o r e l o w on performance and potential. If they stay too long, th e y be c ome i c ebe r gs and th r ea t en the su c c es s o f y our o r g anization. Action plan Identify roadblocks: Understand what may cause the low performance, but don’t o v e r -i n v est in these people and lose f ocus on other employees who do perform well. R ea s sign the individual: Discu s s with the employee to see if there is a more appropriate as signment whe r e th e y can put their ski l ls t o be t t er us e . C r e at e an e xit plan: If the fir s t t w o o p tions do n ’t w ork, help the person find a r ole that suits them be t t er outside o f y our o r g anization.

11. Obse r v e — Dilemma Obse r v e — Effective Observe Observe — Dilemma : Employees who have the po t ential to be g r eat but a r e not pe r f orming up to s tanda r d. Obse r v e — E f fecti v e : Empl o y ees who pe r f orm w e l l enough to st a y , but do n ’t h a v e enough po t ential to g o fu r the r . Action plan C r e at e a pe r f orman c e imp r o v ement plan: Ma k e su r e to clear l y define what g ood pe r f orman c e loo k s li k e so the empl o y ee kn o w s what is e xpec t ed o f them. Monthly check-in and evaluation : Your employees will benefit from a structured plan and f eedback. C r e at e an e xit pla n : If pe r f orman c e does not imp r o v e within six months to a y ea r , help the person find a role that suits them better outside o f y our o r g anization.

12. D e v elop Trusted pr o f e s sional De v elop and trus t ed p r o f e s sional De v elo p : empl o y ees who s c o r e high in potential but low in performance. Trusted professional: employees who pe r f orm w e l l with l o w po t ential f or g r o wth. These empl o y ees r equi r e diff e rent app r oaches because th e y a r e so far apa rt on the grid. Action plan Develop: Continuously monitor performance: look for both imp r o v ements and s tabl e , solid pe r f orman c e within 12 month s . Communicate expectations: let them know what is expected of them in their roles. C r ea t e an e xit plan: if pe r f orman c e does not imp r o v e within a y ea r , help the person find a role that suits them better outside of your organization. T ru s t ed p r o f e s sional K eep them hap p y: r aise sala r y nomina l l y but do n ’t o v e r - r e w a r d them. Help them futu r e -p r o o f their ca r ee r . Do not p r omo t e them to a v oid i n v oking the P e t er principl e , whe r e “ e v e r y empl o y ee tends to rise to his level of competence.”

13. Co r e D e v elop/ Stretch Moderate to high performance and potential D e v elop / St r e t ch a r e those s c oring high in potential and average in performance. Core are reliable performers with potential to grow further. Your priority is to move both groups to the right of your grid to become Stretch and Stretch/Develop. Action plan Set clear role expectations: Communicate clearly what is expected of them in their roles and c onduct r e g ular chec k -ins to ensu re th e y remain satisfied and engaged in their roles. P r o vide job e xposu r e and t r aining: Help them get more experiences using short-term job rotations and enlargement, additional training, and on-th e -job learnin g . P r o vide c oaching: Ar r an g e peer or progressional coaching to address performance barriers. During your sessions, don’t forget to r e c ogni z e and c eleb r a te achi e v ement s . S t r e t ch/ D e v elop S t r e t ch

14. 18 Moderate to high performance and potential St r e t ch/D e v elop also belong to this g r ou p . Th e y a r e al r eady c ontributing a lot to y our o r g anization, so the k e y he r e is to k eep them hap p y , en g a g ed, and r eady to ta k e on futu r e r ole s . Action plan M o ti v at e y our high pe r f ormers: R e g ular l y ackn o wled g e their c ontributions and suppo r t their ca r eer aspi r ation s . F o st er g r o wth p o t ential: Of f er cha l lenging as signments or job r otation to help them e xpand their busine s s kn o wled g e and enhan c e leadership ski l l s . Offer mentorship and training: Pair employees with men t ors to d e v elop their p r o f es sional journ e y and p r o vide oppo r tunities f or them t o upski l l and achi e v e their g oal s . S t r e t ch/ D e v elop

15. S t r e t ch Offer challenging assignments: Give your top performers important roles in crucial projects or e x t ernal oppo r tunities to cha l len g e them and enhan c e their ski l l s . Chec k -in r e g ular l y and sh o w app r eci a tion: F r equent l y en g a g e with them to ma k e su r e th e y are satisfied and acknowledge their crucial c ontributions to y our o r g anization. P r o vide men t orship and net w orking oppo r tunities: P air them with senior members for guidance and create networking avenues with t op pe r f ormers and leadershi p . R e w a r d them: Ensu re th e y r e c ei v e c ompetiti v e c ompensation and bonuses . This wi l l help them f eel app r ecia t ed and ensu re th e y st a y with y our c ompa n y f or a long tim e . S t r e t ch These a r e y our high pe r f ormers who a r e capable of taking on new roles. They also play a critical r ole in su c c ession mana g ement. Action plan

16. Define clear cri t eria Ma k e clear what pe r f orman c e and po t ential means in y our o r g anization. Establish concrete benchmarks employees need to meet or exceed for each category. This wi l l ensu re clarity and c onsi s t ency in y our e v aluation s , r edu c e bia s , and set clear e xpectations f or y our empl o y ees . F our be s t p r acti c es t o build a 9 b o x grid Consu l t s ta k eholders I n v o l v e mana g er s , HR, and r ep r esentati v e employees to get consensus on the grid’s purpos e , methodolog y , and implementation. Use it as pa r t o f the b r oaer talent mana g ement p r acti c e . This wi l l ensu re y our grid is aligned with y our organizational goals and is more comprehensive.

17. T e s t and r efine T est y our 9 b o x grid with a sma l ler g r oup t o as se s s its ef f ecti v enes s be f o r e r o l ling it out company-wide. Gather f eedback to ma k e nec es sa r y adju s tments and imp r o v e . This wi l l help y ou identi f y po t ential pi t fa l ls and enhan c e the grid ’ s ef f ecti v enes s . F our be s t p r acti c es t o build a 9 b o x grid Ensu r e d ata pri v acy Handle the data and r esu l ts f r om y our 9 b o x grid with disc r etion. Take steps to protect your employees’ data f r om being misused. Use it on l y as a c o n v ersation g uid e . This wi l l r edu c e po t ential c onflicts rising f rom mishandled data, and help you stay compliant.

18. Group Activity Evaluate 9 staff members based on the 9 Grid method. Evaluate them based on Potential and Performance. Those are imaginary staff members so give them the qualities based on their skills and what potential you think they have based on their current performance.

19. 4 Steps to Management by Objectives

20. 1. Goal Setting: This is the initial step in Management by Objectives (MBO), where specific and measurable objectives are set for individuals or teams. These goals should align with the overall organizational objectives and should be created in collaboration between managers and employees. The goals should be clear, concise, and challenging, yet attainable. 2. Planning: Once the goals are set, the next step is to develop action plans to achieve those objectives. Managers and employees need to identify the tasks, resources, and timeline required to accomplish the goals. This involves breaking down the goals into smaller, manageable tasks and creating a roadmap for their completion. 3. Monitoring and Evaluation: In this step, progress towards the objectives is tracked and measured regularly. Managers provide feedback and guidance to employees to help them stay on track and address any obstacles or challenges that arise. Regular check-ins and performance evaluations are conducted to assess the progress and make any necessary adjustments to the action plans. 4. Performance Review and Feedback: The final step in Management by Objectives (MBO) is the performance review where the achievements and results are evaluated against the set objectives. Managers provide feedback and discuss areas of improvement or success. This step is essential for recognizing employees’ efforts, rewarding their accomplishments, and identifying any areas where additional support or resources may be required. It also sets the foundation for setting new objectives for the next performance cycle. 4 Steps to Management by Objectives

21. Understanding the Essence of Management by Objectives Management by Objectives (MBO) is a management philosophy that emphasizes goal setting, planning, execution, and performance evaluation. It enables organizations to align individual efforts with their overall objectives, fostering accountability, motivation, and continuous improvement. The core principles of MBO include: a. Top-down goal alignment: Objectives are set by top-level management and then cascaded down to further levels, ensuring alignment and unity within the organization. b. Participative goal setting: Employees actively participate in the goal-setting process, enabling greater commitment and ownership. c. Clear communication: Effective communication ensures that goals and expectations are coherent and understood by all.

22. Understanding the Essence of Management by Objectives d. Results-oriented focus: The emphasis is on outcomes rather than tasks, encouraging employees to achieve measurable results. e. Ongoing performance evaluation: Regular feedback and evaluation sessions help monitor progress and identify areas of improvement. f. Motivation and rewards: MBO fosters a sense of achievement through recognition and rewards, enhancing employee motivation and commitment.

23. Case Study MBO at Apple is centered around the concept of setting clear objectives that align with the organization’s vision and goals. By establishing specific targets for each department and individual employee, Apple ensures that everyone is working towards a common objective. For example, Apple’s retail division sets objectives to increase customer satisfaction, sales growth, and operational efficiency. These objectives are then broken down into SMART goals for each employee, such as achieving a specific sales target or improving customer service ratings. Through regular feedback and evaluation, Apple monitors employees’ progress and provides continuous support to help them achieve their goals. The company emphasizes open communication and encourages managers to have ongoing conversations with their teams to address any challenges and improve performance. Apple’s MBO approach also fosters a culture of innovation and creativity. By setting ambitious goals, Apple encourages employees to think outside the box and push boundaries. This approach has resulted in groundbreaking products like the iPhone, iPad, and Mac, which have revolutionized the technology industry

24. Human resources example The HR department typically uses MBO to set specific goals. Here's an example : Etisalat’s human resources department set a goal of maintaining an employee satisfaction index of 85%. Once HR has created a plan to reach that goal, the leaders explain that goal to their employees. Through feedback, they learn new ideas to help make the process more efficient and to better understand how employees currently feel about their positions. The department determines that to reach this objective, they must create monthly evaluation processes and feedback opportunities to continuously monitor satisfaction and determine where to improve.

25. Marketing example Marketing departments typically align their goals with company objectives using MBO. Here's an example: du set a marketing goal to triple its social media following in just one year. Employees first gather performance data to determine their performance cap or how well the team can perform with current resources. They then define everyone's role in the marketing team and create a list of objectives for each team member that contributes to the primary goal. The leaders then research what steps to take to triple their following, applying any new information to each team member's individual goals and determining whether to hire more personnel to spread the workload.

26. Ball in the air Activity Group Work Each group member can hit the ball up to 20 times, but the ball cannot fall to the ground. The target is to keep the ball up for 2 minutes. Build your strategy, have your plan ready, evaluate the plan and start.

27. What is an HR budget?

28. What is an HR budget? Incremental HR budget – Using the data from the previous years’ HR expenses, it’s possible to make adjustments to the numbers for the upcoming year. If there are funds left over, you can factor them into the budget as well. The new budget includes increases (or decreases) from the previous year based on HR objectives—for example, increased costs for benefit premiums. Zero-based HR budget – This is for the new HR budget or one that needs a complete overhaul. Start with a clean report with just the new year in mind. Begin by allocating where the budget needs the most support. 2022 may be heavy on the recruitment focus. Therefore, your budget will require plenty of funds for recruitment marketing, administrative aspects of interviewing and screening candidates and improving onboarding efforts. An example of a company using a zero-based budgeting system is the Florida Power and Light Company (US), which has been highly effective at controlling costs. This budgeting method has been successful because it’s forward-thinking.

29. What does an HR budget include?

30. What does an HR budget include? Having an HR budget template can assist with the process of planning a reasonable budget for the coming year. Here are the components of the typical HR budget: Talent acquisition & recruitment For most organizations, this is a high priority with a high price tag. Planning for new hires requires having an HR budget that can support everything from job advertising to onboarding. The competition is expected to increase; therefore, you need to allocate a large portion of your budget here. You should budget for: Advertising open positions Interviewing and screening candidates Background checks Onboarding new hires Agency fees Employee relocation or remote office setup Recruitment marketing Reducing turnover

31. Why do you need to plan your HR budget? Planning an HR budget is just as necessary as costing any other area of operations; in fact, it’s at the heart of why your organization thrives. The main reasons why you need to start thinking about your HR budget in advance is to: Managing the costs of human capital – Avoid overspending or, worse yet, not having enough to go around. A well-planned HR budget allows you to reallocate the resources when things change. Ensuring HR operational efficiency – You have an overview of where you can spend money and how much, which enables you to operate effectively and efficiently. Achieving organizational success – Through HR efficiency, organizations can get the best out of their personnel, be productive and reach their goals. This also prepares you for regulatory changes that impact various areas of HR. Have a seat at the decision-making table – With 60% more business leaders expecting HR to be partners, being able to present a well-developed budget plan can elevate your value to the organization.

32. Recruitment and Onboarding Costs associated with attracting and integrating new talent: Job advertising: Costs of posting job openings on job boards, websites, or through recruitment agencies. Background checks and screening: Fees for verifying candidate information and ensuring qualifications. Relocation expenses: Costs associated with assisting new hires relocating for the job. Onboarding programs: Expenses for training and integrating new employees into the company culture.

33. Training and Development Funds dedicated to enhancing employee skills and knowledge: Training programs: Costs for internal or external training programs, workshops, or certifications. Tuition reimbursement: Financial assistance for employees pursuing relevant educational opportunities. Development resources: Expenses for online learning platforms, conferences, or professional development materials.

34. Performance Management Costs related to evaluating and motivating employees: Performance review software: Tools used for conducting performance appraisals and feedback sessions. Employee recognition programs: Funds for rewarding high performers and fostering a culture of appreciation. Employee Relations Expenses for maintaining a positive work environment: Employee surveys: Costs associated with conducting surveys to gauge employee satisfaction and engagement. Conflict resolution: Costs of mediation or legal fees related to employee disputes. Workplace wellness programs: Expenses for initiatives promoting employee well-being and health.

35. Group Activity Prepare the HR budget for 2025 Take in consideration the number of staff. Estimate the budget total and break it down per item.

36. Introduction to the Balanced Scorecard The Balanced Scorecard is a strategic planning and management system used by organizations to align business activities with the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals. It was originated by Dr. Robert S. Kaplan and Dr. David P. Norton in the early 1990s. The Balanced Scorecard aims to provide a more comprehensive view of organizational performance beyond traditional financial measures by incorporating these additional perspectives. It serves as a framework for translating an organization’s strategic objectives into a coherent set of performance measures, providing a more balanced view of how well the organization is achieving its long-term goals.

37. The Balanced Score Card https://youtu.be/zf-d-O7hVhM

38. Benefits of the Balanced Scorecard Employee Turnover Rate: Monitors the rate at which employees leave the organization, indicating the overall work environment and employee satisfaction. Training Hours per Employee: Measures the investment in employee development, correlating with improved performance and innovation. Skill Assessments: Regular assessments to ensure employees have the necessary skills and competencies for their roles and future company needs. Employee Engagement Scores: Surveys to gauge employee engagement and identify areas for improvement in the organizational culture. These examples show how a Balanced Scorecard might be implemented in an organization. The specific metrics can vary significantly depending on the industry, the organization’s strategic goals, and challenges.

39. Financial Perspective Revenue Growth: Measures the year-over-year increase in income generated from the organization’s activities. Cost Reduction: Targets specific areas where operational costs can be minimized without affecting product or service quality. Return on Investment (ROI): Calculates the efficiency of various investments in terms of their generated returns. Cash Flow Analysis: Evaluate the inflows and outflows of cash, ensuring the organization maintains a healthy liquidity position.

40. Customer Perspective

41. Internal Business Perspective Quality Control Metrics: Monitors defect rates, rework levels, and adherence to quality standards. Cycle Time: Measures the time required to complete a business process from start to finish, aiming to increase efficiency. Process Cost: Analyzes the cost associated with each critical process, identifying opportunities for cost-saving improvements. Innovation Pipeline Strength: Evaluates the number and potential of new ideas or projects in development, indicating the organization’s future growth prospects.

42. THE ROLE OF BALANCED SCORECARDS IN HR Balanced Scorecards are invaluable for HR professionals for several reasons: Alignment with Organizational Goals: BSCs enable HR departments to align their strategies with the broader objectives of the organization. This alignment ensures that HR initiatives contribute directly to the achievement of organizational goals. Measuring HR's Contribution: BSCs provide a framework to measure HR's impact on critical areas like employee satisfaction, talent acquisition, retention, and development. Holistic View: BSCs encourage HR professionals to adopt a holistic perspective by considering not only traditional HR metrics but also their implications on financial performance, customer satisfaction, and internal processes. Strategic Decision-Making: By focusing on the four perspectives, HR leaders can make more informed, data-driven decisions that benefit the organization as a whole.

43. IMPLEMENTING BALANCED SCORECARDS IN HR Define Objectives: Begin by clearly defining HR objectives that align with the organization's strategic goals. What do you want HR to achieve? Be specific and measurable. Select Key Metrics: Choose relevant metrics for each of the four perspectives. For example, under the Learning and Growth perspective, you might measure employee training hours or the adoption of new skills. Set Targets: Establish specific targets or benchmarks for each metric. These targets should be ambitious yet achievable and directly tied to HR's role in achieving broader organizational goals. Collect and Analyze Data: Implement data collection mechanisms to regularly gather data on selected metrics. Advanced HR analytics tools can assist in this process. Monitor Progress: Regularly update and monitor the HR Balanced Scorecard. Use visual representations like dashboards to make the data accessible and easy to interpret. Adjust Strategies: Based on the insights derived from the scorecard, adjust HR strategies and initiatives as needed to stay aligned with organizational goals. Communicate Results: Share the results and progress of the Balanced Scorecard with HR teams and organizational leadership. Transparency and communication are key to success.

44. Standing Ovation Activity Each Group will identify one of their most important objectives. They will imagine themselves achieving this objective and getting a standing ovation for it. Then they will write down all the things they need to accomplish in order to reach this dream objective. This will help you make a strategy backwards, to identify the route to success.