Implementing a Performance Management System: Overview

Preparation
Communication Plan Appeals Process Training Programs Pilot Testing

Ongoing Monitoring and Evaluation

Implementing a Performance Management System

Requires wide organisation support and acceptance Pre system implementation steps need to be taken (Preparation) Followed by Ongoing monitoring and evaluation

Preparation
Need to gain system buy-in through:
Communication plan regarding Performance Management system Including appeals process Training programs for raters Pilot testing system

Communication Plan answers:

1. What is Performance Management (PM)?
General inf about PMS, How PMS is implemented in other orgn, Goals Contribution towards strategic goals Benefits

2. How does PM fit in our strategy?

3. Whats in it for me?

4. How does it work?
Detailed description of PM process with time line

Communication Plan answers:

5. What are our roles and responsibilities?
Role of each person involved at each stage Relationship between PM and trg, promotion, salaries, succession planning etc

6. How does PM relate to other initiatives?

Cognitive Biases that affect communications effectiveness

Regardless of how well a communication plan has been implemented bases creep in Cognitive biases

Cognitive Biases that affect communications effectiveness

Selective exposure Selective perception Selective retention

Cognitive Biases that affect communications effectiveness

Selective exposure - Tendency to expose our minds only to ideas with which we already agree - Those who already agree that PMS is a good idea read and take interest in knowing about it , others do not

Cognitive Biases that affect communications effectiveness

Selective perception - Tendency to perceive a piece of information as meaning what we would like it to mean even though the communicator may intend to mean the opposite - Ex If we associate PMS with rewards and punishment at end of cycle we expect just that

Cognitive Biases that affect communications effectiveness

Selective retention - Tendency to remember only that part of information we agree with

To minimize effects of cognitive biases: A. Consider employees:

Involve employees in system design People support what they create Show how employee needs are met - Provide answer to the basic question What is in it for me

To minimize effects of cognitive biases: B. Emphasize the positive

Use credible communicators Whom employees see as their well wishers Strike first create positive attitude before negative attitudes and rumours are created Provide facts and conclusions

To minimize effects of cognitive biases: C. Repeat, document, be consistent

Put it in writing Greater credibility Use multiple channels of communicationmeetings, emails and paper communication, repeatedly expose employee to same message, ensure consistency amongst channels Say it, and then say it again

Appeals Process
Promotes Employee buy-in to PM system
Amicable/Non-retaliatory Resolution of disagreements

Appeals Process
Employees can question two types of issue:
Judgmental
(validity of evaluation) Ex an employee may believe that a managers performance ratings do not reflect actual performance

Administrative
(whether policies and procedures were followed) Ex An employee may feel that supervisor did not meet him as frequently as required to obtain feedback

Appeals Process
Level 1- Appeal is sent to HR department
HR reviews facts, policies, procedures HR reports to supervisor/employee HR attempts to negotiate settlement

Level 2
Arbitrator (panel of peers and managers) and/or High-level manager final decision

Rater Training Programs

Content Areas to include
Information Identifying, Observing, Recording, Evaluating How to Interact with Employees

Choices of Training Programs to implement

RET FOR BO SL

Content
A. Information - how the system works
Reasons for implementing the performance management system Information
the appraisal form system mechanics

Content
B. Identifying, observing, recording, and evaluating performance
How to identify and rank job activities How to observe, record, and measure performance How to minimize rating errors

Content
C. How to interact with employees when they receive performance information
How to conduct an appraisal interview How to train, counsel, and coach

Choices of Training Programs

Rater Error Training (RET) Frame of Reference Training (FOR) Behavioral Observation Training (BO) Self-leadership Training (SL)

Rater Error Training (RET) Goals of Rater Error Training (RET)

Make raters aware of types of rating errors Help raters minimize errors Increase rating accuracy

Intentional rating errors Leniency (inflation) Severity (deflation) Central tendency

Unintentional rating errors

Similar to Me Halo Primacy First impression Contrast Stereotype Negativity Recency Spillover

Possible Solutions for Types of Rating Errors To minimise the errors Intentional
Focus on raters motivation Demonstrate that benefits of providing accurate ratings outweigh benefits of distorting ratings

Unintentional
Alert raters to different errors and their causes Go in for FOR training

Frame of Reference Training (FOR) Goal of Frame of Reference Training (FOR)*

Help improve rater accuracy by thoroughly familiarizing raters with perf dimensions to be assessed Raters develop common frame of reference
Observing performance Evaluating performance

*Most appropriate when PM appraisal system focuses on behaviors

Frame of Reference Training (FOR)

Technique
1.Discussion of the job description of the individual being rated, 2. Shown appraisal forms and familiarise with perf dimensions and their definitions, discussion on examples of good, average and poor perf- Aim to bring different raters on a common platform 3.Shown videotapes and asked to rate the employees shown

Frame of Reference Training (FOR) Technique

4. Ratings provided by each participant is shared with the rest of the group and discussed and compared with correct ratings 5. Trainer discusses discrepancies , provides feedback to participants explaining why an employees should receive a certain rating

Frame of Reference Training (FOR)

Pros and cons

Time and effort to develop and administer is high Raters provide more consistent and accurate ratings Helps design development plans as they share a common view of what constitutes good performance.

Behavioral Observation Training (BO) Goals of Behavioral Observation Training (BO)

Minimize unintentional rating errors Improve rater skills by focusing on how raters:
Observe performance Store information about performance Recall information about performance Use information about performance

Self-leadership Training (SL) Goals of Self-leadership Training (SL)

Improve rater confidence in ability to manage performance Enhance mental processes Increase self-efficacy

Pilot Testing
Provides ability to
Discover potential problems Fix them

Pilot Testing - benefits

Gain information from potential participants Learn about difficulties/obstacles Collect recommendations on how to improve Understand personal reactions Get early buy-in Get higher rate of acceptance

Implementing a Pilot Test

Roll out test version with sample group
Staff and jobs generalizable to organization

Fully implement planned system

All participants keep records of issues encountered Do not record appraisal scores Collect input from all participants

Ongoing Monitoring and Evaluation

When system is implemented, decide:
How to evaluate system effectiveness How to measure implementation How to measure results

Evaluation data to collect:

Reactions to the system (through confidential surveys) Assessments of requirements
Operational Technical

Effectiveness of performance ratings- one can assess performance ratings over time to see what positive effects the implementation of the system is having

Indicators to consider
Number of individuals evaluated Distribution of performance ratings Quality of information Quality of performance discussion meetings System satisfaction Cost/benefit ratio Unit-level and organization-level performance