4/22/2014 PERFORMANCE EVALUATION PERFORMANCE EVALUATION CONSTRUCTIVE PERFORMANCE EVALUATION

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1 CONSTRUCTIVE Job performance is the basis for an employer s decision to promote, discipline, demote, or fire an employee. Even though not required by law, court rulings continue to encourage employers to develop and use well designed performance evaluation systems to insure consistent and fair treatment of employees. Performance Evaluation should be a part of a comprehensive integrated Human Resource System consisting of the following components: 1. Detailed Job Descriptions 2. Established Hiring and Selection Process 3. Performance Evaluation System 4. Employee Development and Training 5. Succession Planning 1

2 Job Description Succession Planning Hiring & Selection Training & Development Performance Evaluation Plan for the Event with a Performance Review worksheet. Notify and set Expectations. Establish Rapport. Discuss positive Results. Discuss negative results. Agree on Strengths and Improvement Areas. Set new goals. Discuss Training and Development Finish with Encouragement. Notify and Set Expectations: Give the person ample time to prepare. Set a firm date & time and consider holding the review in a neutral space (small conference room). Have individuals review their goals since the last review and identify positive and negative results prior to the meeting. 2

3 Establish Rapport: Avoid getting down to business before making a connection to the person. Begin the discussion on a neutral note or a conversation that people can relate too. If appropriate offer a cup of coffee, water or soda. Emphasize that the format of the meeting is intended as a constructive two way conversation. Discuss Positive results: Start the discussion where there has been positive results. Look for key strengths by asking How did you do that? Listen and ask open ended questions. Give praise and show your appreciation. Discuss Negative Results: Bring up the first negative area in a non-threatening way, focusing on the result and not the person. There should be no surprises here if you have monitored performance, coached and provided feedback throughout the year. Be a good listener and try see the person s point of view. Are there rational organizational issues brought forth by the employee that need to be addressed. 3

4 Agree on Strengths and Improvement Areas: Review strengths and improvement areas to summarize the conversation. Gain consensus on areas that need improvement. Encourage the person to explain these areas in their own words. It is important to get buy in. Set New Goals: Discuss performance standards for the future. If necessary, review vision, mission and values. Describe initiatives to which the person s results will contribute. Goals should be specific, measurable with target dates. Discuss Training and Development: Once the goals are set, discuss additional support or development needed to help him/her. Have the person articulate ideas for career interests or potential career growth. People tend to support a world they help create. 4

5 Finish with Encouragement: End on a positive note with final words of praise or encouragement. Strive to assist a person in keeping their dignity and their endeavor to enhance their reputation. Examples of de-motivating comments: Roland is a poor time manager and consistently misses deadlines. How would you turn this phrase around? Let s talk about the XYZ Project. We fell behind on this project in May and missed the June deadline. I d like to hear your thoughts on what happened and what we could have done better. 5

6 Thelma shows no follow-through and customers report that they don t like working with her. PERFORMANCE REVIEW Thelma, our customer service report shows that we have had a 40% increase in customer complaints in the past month. Specifically they report that they are not getting information back on tax assessment inquiries. I d like your thoughts on this as to what may be causing the delay and how we can fix this going forward. Creating SMART Goals: Specific Measurable Attainable Realistic Timely 6

7 Specific: Who is involved? What do I want to accomplish? Where: Identify a location. When: Establish a Time Frame. Which: Identify requirements & constraints. Why: Benefits of accomplishing the goal. Example: General Goal would be Get in Shape. Specific Goal would say Join a health club and workout 3 days a week. Measurable: Establish concrete criteria for measuring progress towards each goal. Measurement allows you to stay on track and reach target dates. Ask questions How much? How many? How will I know when it is accomplished. 7

8 Attainable: You can attain most any goal you set when you plan your steps wisely and establish a well thought out time frame. Goals must be within your scope of achievement or impacted by your contributions and effort. Goals should challenge you to grow and expand to match them. Realistic: To be realistic, a goal must represent an objective toward which you are both willing and able to work towards. A realistic goal should have input from the employee and manager. Unrealistic goals are de-motivators. Timely: A goal must have an established time frame otherwise there is no sense of urgency. If you want to lose 10 pounds, losing it someday won t work. You have to set a date! T can also stand for tangible. When a goal is tangible it can be specific and measurable. 8

9 Performance Rating Scale: If your rating scale is 5 categories or more, your system is to broad. The wider the range of your rating system, the more subjective it becomes. Rating Scale Recommendation: 5- Consistently Exceeds Expectations 4 Consistently Meets & Often Exceeds Expectations 3 Consistently Meets Expectations 2 Partially Meets Expectations 1 - Unacceptable Consistently Exceeds Expectations: Rating 5 This person is truly exceptional. Contributions are made to the organization which are significantly above those expected of the position. Exceeds goal to the point that it is visible to other areas of the organization. 9

10 Consistently Meets and Often exceeds Expectations: Rating 4 All required tasks are carried out with a minimum of guidance & supervision. Results often exceed performance expectations and goals. Contributions to the department or org. are highly significant. Rule of Thumb- 10% to 15% of the workforce should fall into this category. Consistently Meets Expectations: Rating 3 Employee consistently meets the requirements. Tasks are completed in a competent manner with a minimum amount of guidance and supervision. 80% of the workforce should fall into this area. Partially Meets Expectations: Rating 2 Employee achieves many but not all the requirements of the job. Performance is below expectations but still considered contributory. Address specific areas and follow-up review in 6 months. Works as a tool for probationary employees. 10

11 PROBATIONARY EMPLOYEES Unacceptable: Rating 1 Employee s performance does not meet requirements of the position. Immediate performance correction must be accomplished in order to justify retention. A follow-up review will take place within 3 months. RECOMMENDATION: USE A SYSTEM THAT ALLOWS FOR EMPLOYEE SELF REVIEW AND INPUT. Performance Review Process: Step 1: Employees to prepare & submit a self review to their manager. Step 2: Manager to complete the manager portion of the performance review form. Step3: Manager to gain appropriate one-level up approval and signature. 11

12 Performance Review Process Continued: Step 4: Manager to deliver performance review to employee. Step 5: Manager and employee complete goals for upcoming year. Step 6: Send completed and signed performance review to HR or appropriate source. Points to Ponder: Document each performance evaluation communicated to the employee. Document facts or specific incidents that demonstrate inability to perform job not conclusions. Employee signature? Points to Ponder: Remember, if you don t consider an employee s poor performance significant enough to document, then neither will a judge or jury. Documentation provides evidence. Judge and jury did not observe the employee at work. 12

13 Points to Ponder: Train managers on how to conduct fair and welldocumented employee performance evaluations. If the process is not fair, you may face a claim of discrimination from a protected class or for wrongful termination. Make sure the process is the same for everyone. You want to avoid constructive discharge argument. Points to Ponder: Be prepared for excuses, defensiveness & arguments but also consider the employee s point of view. When they present an excuse it s often effective to show you are listening and acknowledging. It allows the person to vent and often diffuses the situation and opens things up for feedback. Points to Ponder: Don t be stingy with praise but don t be overly flowerly with emotional words like great, super, awesome. Non specifics wears off very quickly. Give fair and deserved recognition based on fact. 13

14 Points to Ponder: While no employee is perfect, don t hunt for areas of improvement because you fear the evaluation is to glowing. You can honestly tell someone that they aced their goals, you are proud of them and want them to continue to succeed. 14

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