HRMG 3040 - CLO3 Part 1 - PowerPoint (1).pptx

human resource management part 4

1. The Performance Management Process HRMG3040 Week 4

2. Course Learning Objectives 2 CLO3: Examine the effectiveness of performance management processes and systems.

3. Performance Management | At a Glance   PERFORMANCE MANAGEMENT is a systematic process to improve organizational performance through identifying, measuring and developing the performance of individuals and teams What do we measure? Results & Behaviors Who are Involved? Managers|Supervisors|HR|Employees Why is it important? To support an organization to achieve its objectives Performance management is about people collaboration to achieve organizational objectives

4. We’ve discussed the importance of PM, the main purposes of PM, the ideal characteristics, and the components needed prior to an effective performance management system will work….now let’s review the process of PM… the steps of how it works 4

5. Performance Management is an ongoing process. Ideal PM includes the characteristics, the purposes and the components prior to implementation. Here’s how we implement it operationally. 5

6. Performance Management is an ongoing process Once established it becomes part of the organization’s culture Performance management process includes closely related components The process goes through the components and then returns to the beginning and the cycle is repeated 6

7. If any component is poorly implemented, the entire performance management system suffers A performance management system is only as good as its weakest component . Each of the 6 components plays an important role in the process 7

8. Performance Management Process starts with Prerequisites . 8

9. Prerequisites: the first step of the performance management process Knowledge of the Organization’s Mission and Strategic Goals Major competencies required for the organization Culture of the organization Knowledge of the Job What tasks need to be done How they should be done What KSAs and competencies are needed The most important objective of any performance management system is to align each job to the goals of the organization. 9

10. Performance Management and Strategic Planning

11. Organizational Strategic Goals STRATEGIC GOALS are the specific financial or non-financial results an organization aims to achieve over a specific period of time, usually the next three to five years Strategic goals are very much connected to the Vision and describe mainly 3-4 priorities as the important criteria required to achieve the organizational Vision Examples: It can be something general as Becoming the top player in a particular industry over the period Expanding the company’s activity on European market by 2025 It can be something specific as Increasing market share by 20% during the next 3 years Expanding the portfolio of our customers by 300 up to 5 years

12. Type of Strategic Goals |Hard and Soft | Example HARD GOALS SOFT GOALS Customers -Grow number of clients by 5% per year -Achieve customer loyalty scores of 85% or higher Customers -Customers tell their friends about the company Employees -Keep number of employees at current levels -Achieve employee engagement scores of 85% or higher Employees -More new hires are referred to the company -Encourage ethical and respectful behaviour Communities -70% of employees are volunteering in the community Communities -Gain reputation as a visible and valued contributor to the community Shareholders -Grow revenues by 7% and net income by 14% per year -Introduce five new products per year Shareholders -Improve corporate responsibility -Become a leader in product innovation Strategic Goals can be HARD (measurable) or SOFT (non-measurable). Both types of goals should be defined for a variety of stakeholders, including customers, employees, communities and shareholders

13. Balanced Scorecard tool for setting Strategic Goals BALANCED SCORECARD is a strategic tool that provides feedback on both internal business processes and external outcomes to continuously improve strategic performance and results. The heart of the Balanced Scorecard is a framework of 4 major perspectives for strategy implementation FINANCE - how the company can succeed financially |Profitability and Shareholder value  CUSTOMER - how the company should appear to customers |Identify customer & market segments PROCESSES - what processes the company should excel to satisfy shareholders and customers PEOPLE -  how the company would sustain its ability to improve | Learning and Growth|People & Product

14. How well is the Organization Performing 14

15. Where do we get job information for the prerequisites of PM ? 15

16. Knowledge of a particular job| An Individual performance Knowledge of the particular jobs |An Individual performance - What tasks need to be done |Employee’s individual performance goals - How they should be done | Expectations as a result of Employee’s performance - What KSAs are needed |Required Knowledge, Skills and Abilities to perform well Based on the detailed information and knowledge of the job we can write a proper JOB DESCRIPTION

17. Performance Management Prerequisites: Job Analysis Use a Job analysis – gathering, reviewing and updating information about a particular job – tasks, duties and responsibilities, etc. Job Analysis: Study of a job A process of determining the key components of a particular job Obtain information regarding the tasks, knowledge, skills and abilities required of a job (KSAOs) Used to write Job Descriptions 17 “If we don’t know what an employee should do on the job, we won’t know what needs to be evaluated and how to do so”

18. Performance Management Prerequisites: Job Description Job Description: KEY prerequisite for any performance management system Summarizes job duties, needed KSAOs and working conditions Provides the criteria (measurement) that will be used in measuring performance – what do we need to do in our jobs, specifically: Behaviours – how to perform Results – outcomes based on quality, quantity, cost-effectiveness and timeliness 18

19. How to … ensure the Performance Management System works! Results and Behaviours must be observable Results and behaviours must be verifiable (evidence)

20. PM System Components to consider for your employees and their jobs Criteria – will you evaluate results or behaviours or both? Participation – will you involve employees? How much? Is this for short-term or long-term goals ? Is evaluation based on the individual or team performance ? Is the PM for developmental or administrative purposes ? 20

21. What are the two main prerequisites required for the performance management process? 21

22. Administrator/Receptionists What do they do? What should we evaluate?

23. Administrator/Receptionist CPG Company Locate Results and Behaviours

24. Finalizing Prerequisite stage of PM process - We have knowledge on the organization’s vision, mission and strategic goals - We have a knowledge of the particular job Prerequisites - what we need to know before starting performance management process

25. End Day 1 25

26. Next… Performance Planning What’s involved here? Place your screenshot here 26

27. 1|Performance PLANNING Setting Performance Goals and Plans Based on strategic goals, the organizations set their annual goals/plans with measurable objectives to achieve, and to cascade these goals into team and individual goals Prerequisites Organizational Goals |Plans Department |Team Goals |Plans Employees Individual Goals | Plans

28. Performance Planning includes: A discussion to get employees ready to perform effectively Supervisor and employee should meet at the beginning of performance cycle Before actual performance begins Discuss and review results and behaviors and a development plan A discussion of results needs to include key accountabilities, and performance standards A discussion of behaviors needs to include how the job is done, and competencies required Discuss and agree on a development plan including areas that need improvement and future goals to be achieved Align to company goals 28

29. Performance Planning Results Refers to what needs to be done The outcomes to produce Includes key accountabilities Get info from job description Based on: Quality, Quantity, Cost Effectiveness, and Timeliness Includes performance standards A measurement tool used to evaluate how well employees have achieved each objective Provides info on acceptable and unacceptable performance Minimum acceptable level of performance 29

30. 30

31. For Administrator/Receptionist? Performance Standards

32. Performance Planning Behaviours If we only focus on results, some jobs may be unfairly evaluated Some jobs can’t control all results Therefore behaviours on how the job is done becomes critical Behaviours may also be clustered as competencies Examples of competencies are customer service, written or oral communication, critical thinking, and dependability Therefore we can also measure competencies that are critical in the achievement of results 32

33. 33

34. CPG Company Competencies for the CPG Receptionist? Administrator/Receptionist 34

35. One more thing ….Performance Planning Development Plan Employee and supervisor must agree on a development plan Identify areas that need improvement Set goals and include action plans and timelines Include both results and behaviours (competencies) Ensure alignment to strategic goals Development plans may also include personal and professional goals 35

36. Employee Performance Planning Summary There are 3 important parts of an Employee’s Performance Planning: Results used to Measure employees performance against the assigned targets Correlate with a team performance and linking to organizational performance Results Include: Key accountabilities |Specific objectives |Performance standards Behaviors used to Define and indicate individual behavior and attitude through observation and close monitoring by his supervisors or HR Development Plan used to develop the plans to improve employees competences (knowledge, skill and attitude (K S A) for employees to take their professional standards to next level which the support of development tools and plans

37. Consider Jobs 3 Jobs that results are easy to determine? 3 Jobs that depend more on behaviours and competencies rather than results? 37

38. Converting Goals into Plans Based on the strategy and goals an organization does PLANNING process which is the detailed operational roadmap to achieve the goals INVOLVED: Top-Managers | Managers |Supervisors |HR | Employees Organizational Annual Plan Department |Team Annual Plan (can be Mid-Year, Quarterly, Monthly planning) Employee Individual Annual Plan (can be Mid-Year, Quarterly, Monthly planning) STRATEGY

39. The reason most people never reach their goals is that they don’t define them, or ever seriously consider them as believable or achievable How do we avoid this? By pre-planning with Performance Expectations And by pre-establishing expected Behaviors and Results

40. Let’s try the Performance Planning Process For the Marriott in Doha: Create the following: 2 Results and performance standards Based it on quantity, quality, cost effectiveness or timeliness Use examples 2 Behaviours Refer to competencies required for the job Use examples 2 Organizational Competencies based on Marriott’s vision, mission or organizational competencies 40

41. Let’s try the planning stage with how-to steps

42. Training Specialist/Consultant for Leadership and Team Development Target Corporation Job Description Example

43. Job Description Identifies the training and development needs of Target Corporation’s workforce (in collaboration with partners), with primary emphasis on exempt team members. Designs and delivers training and development workshops and programs and maintains an ongoing evaluation of the effectiveness of those programs. Assumes leadership and strategic responsibility for assigned processes. May supervise the non-exempt staff. 43 Training Specialist/Consultant for Leadership and Team Development Target Corporation

44. Measuring Results 44 Steps to prepare Results: Key accountabilities from job description Determine objectives for each accountability Determine performance standards I.e. quality, quantity, and cost effectiveness, or timeliness

45. First Step in measuring performance by adopting a results approach… Accountabilities… is to identify the main overall critical areas of a job for which the employee is responsible for producing results

46. First Step in measuring performance by adopting a results approach… To Determine Accountabilities… - determine the percentage of the employee’s time that should be spent on the accountability - determine the significance of the accountability to the organization - think about the importance - especially if the accountability was not completed or went wrong

47. From Job Description ----- Accountabilities Establish Accountabilities This outlines a solid foundation for performance Ask yourself: ”What is really important in the job” When someone says do “X”, ask “why are we doing this” From JD – summarize critical goals and successes that this job is accountable for to influence organizational goals Use an action word to describe the accountability 47

48. From Job Description ----- Accountabilities Process Leadership Leads the strategy and direction of assigned processes. Coordinates related projects and directs or manages resources for 40% of time Supervision of nonexempt staff Supervises nonexempt staff working in the unit for 10% of time Coaching Conducts one-on-one executive coaching to improve their performance for 20% of time 48 Training Specialist/Consultant for Leadership and Team Development Target Corporation

49. From Job Description ----- Accountabilities Team-building Consultation Assists company leaders in designing and delivering their own team-building sessions for 10% of time Deliver feedback Deliver feedback on scores of assessments and other individual characteristics for 10% of time Product Improvement Continuously seeks and implements opportunities to use technology to increase the effectiveness of leadership and team development for 10% of time 49 Training Specialist/Consultant for Leadership and Team Development Target Corporation

50. End Day 2 50