Effective Performance Management. Donna Baeza, SPHR Director, HR & HR Business Solutions (800) x1139
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1 Effective Performance Management Donna Baeza, SPHR Director, HR & HR Business Solutions (800) x1139
2 What is Performance Management An ongoing communication process, between an employee and his / her immediate supervisor that involves establishing clear expectations and understanding about: The essential job functions of the employee s position How the employee s job contributes to the goals of the organization What doing the job well means in concrete terms How the employee and supervisor will work together to sustain, improve, or build on existing performance
3 Performance Management 6 Factors Mission, Vision, Values Organizational Goals Department Goals Employee Goals Communication Collaboration Only when you know the above can you set out an effective Performance Management plan for your employees
4 Mission Statement Describes the overall purpose of the organization. What the organization does Who they do it for How they do it, and; Why they do it
5 Vision Statement Describes the ideal future of the organization Answers the question: What impact do we want to have on our industry / society / community (based on the business) Communicates a focused organizational purpose so that employees can see themselves contributing to the overall goal versus their specific segment or process.
6 Values Statement Values are traits or qualities that are considered worthwhile; they represent the organization s expected priorities and driving forces. Values are what you want modeled in your organization! Values should reflects the core (and real) ideology of an organization. It is not about right or wrong it is about real! What really reflects you as a company?
7 Blytheco Values Guiding decision making principles / behaviors that we expect from our team: Value Integrity Resourcefulness Customer Service Attitude Teamwork Self-Motivation Open Communication Accountability Continuous Learning Respect Definition Conducting oneself in a professional and ethical manner. Ability to create effective solutions for our customers, especially in challenging situations, using sound and prudent judgment. Responding to the needs of our customers in a timely and professional manner. An ongoing collaborative effort to achieve common goals. Using initiative, being self-driven and self-directed. Commitment to an open exchange of ideas and timely conveyance of information. Responsibility for one's conduct and commitments. To pursue and acquire an ongoing development of relevant industry, business or company knowledge, understanding, or skill utilizing study, instruction, or experience. Courteous regard and consideration for all stakeholders.
8 Organizational Goals Objectives that your organization is focused on looking to achieve (can include both short-term and long-term goals).
9 Example Organizational Goals Maintain positive cash flow and profitability Increase and maintain customer satisfaction and retention Increase customer base by 25% Continued refinement of national business processes across all functional business units Implement effective training programs for all functional business units to increase position knowledge and employee engagement
10 Department Goals Objectives that an organization wants a department to meet in order to achieve broader organizational objectives (can include both short-term and long-term goals).
11 Example Department Goals (Customer Service Department) Remain within annual department budget Increase and maintain customer satisfaction and retention levels Increase customer referral rate by 15% Continued refinement of department processes Implement more effective customer service training programs to increase position knowledge and employee engagement
12 Employee Goals Objectives the organization and specific department wants an employee to meet in order to achieve broader organizational objectives (can include both short-term and long-term goals).
13 Example Employee Goals (Customer Service Department) Maintain high customer satisfaction and retention levels for your client base Maintain a daily call rate of 24 calls or greater Maintain attendance standards of no more than 1 tardy in any 2 week period and 1 unplanned absence in any 6 week period No more than 2 customer ratings per month falling below a level 2 No more than 2 customer losses in one half for reasons other than what fall under acceptable criteria Increase customer referral rate by 15% Obtain no less than one customer referral per quarter Serve as department preceptor based on rotation. Preceptors are ranked on the success rates of their trainees. Provide feedback for department effectiveness at monthly meetings and one-on-ones
14 Manager Frustrations What is it about managing your team that drives you crazy? The things you d like to fix but they always seem like a constant problem. Feeling the need to micromanage and be involved in everything to make sure it goes right? Never having enough time in your day Employee s lack of understanding of their job Employee disagreements Finding out about problems too late
15 Performance Management Identify the problem Communicate about the problem with your team (is it time prohibitive, impacts dollars or productivity negatively, etc.) Make the solution a collaborative effort with your team taking ownership of the solution and the ramifications of not meeting the expectation Make it measureable Re-evaluate as needed (process improvement)
16 Employee Frustrations What is that drives employees crazy about management? Being micromanaged Insufficient feedback not knowing if they are doing a good job Finding out at the end of the year (performance appraisal time) that they have done a bad job Lack of reasonable authority Not being able to make even simple decisions Not getting recognition for a job well done Not having the opportunity to develop new skills Not having the resources needed to do their jobs
17 Why Is Performance Management Important? Organizations work more effectively when the goals and objectives of the organization, it s departments and the job responsibilities of each employee are all linked. State and federal government s have established laws, regulations, and guidelines that apply to what companies can and cannot do related to hiring, termination of employment, discrimination and more. While laws differ according to jurisdictions, you can count on one thing there are rules that apply to you. Organizations need ways to identify barriers as they arise, catch problems early and prevent problems. In order to be successful, organizations need to be continually developing their people
18 When Performance Management Approaches Don t Work Reluctant Managers - fear of conflict and confrontation Lack of understanding about how to have direct, respectful conversations Not understanding why processes and documentation need to be applied Forms and procedures that don t make sense and seem irrelevant Management does not involve employees in problem identification and problem solving when they are often closest to the problem When Managers see Performance Management as a chore and not as value
19 When Performance Management Approaches Don t Work Poorly implemented approach may be worse than having none at all Poor Performance Management can undermine the credibility of management. When employees consider the system a waste of time or a joke (which they often do), they also wonder about the intelligence of Managers who use the system. Impacts motivation and morale negatively Good systems solve problems; poor systems create them
20 What Employees Need to Succeed They need to know what you expect them to do Regular, specific feedback on their job performance Employees need to understand how their work fits in with the work of others, the goals of their Department and the organization as well as the overall Mission and Vision for the company. Employees need to play an active role in identifying issues and suggesting solutions related to their jobs The ability to develop their skills A certain level of authority to do their jobs
21 Performance Management Should be as simple as possible Require the least amount of paperwork and bureaucracy as possible Should require the least time investment possible Needs to maximize comfort and minimize discomfort Must serve the needs of managers, employees and the organization
22 Performance Planning Most important part - starts with: Mission, Vision, Values Organizational goals strategic and operational Department goals Employee goals Employee s last performance appraisal Employee s job description
23 Performance Planning Understand what objectives you are trying to achieve Create meaningful goals understand how they tie into the organization s goals Identify the employee s primary responsibilities tied to those goals (job description make sure it s up to date) Which responsibilities are most and least important and why? What measurements will be used to help both you and the employees know if they are successful? How will data be gathered? How can the Manager help the employee accomplish their tasks? How will the Manager and the employee work to overcome any barriers?
24 Performance Planning Is any new skill development needed? How will the Manager and employee communicate about performance? Communication and collaboration
25 Performance Coaching Make an investment in your people. You will reap the reward both personally and for your organization.
26 Data Gathering, Observing & Documenting Measureable Consistent Fair Make it as easy as possible Involve the individual employee and your team Focus on improvement not on who is doing a bad job
27 Evaluation The performance appraisal Measureable Consistent Fair Make it as easy and relevant as possible Approach One form fits all does not always work best No surprises this is the wrong time for surprises! Focus on: What was good What could improve How could it improve What other areas could benefit from development Plan together about how to make that happen (performance planning)
28 Discipline Respectful Direct but kind Factual Documented Expectation setting and agreement performance planning!
29 Acknowledgement Performance Management Robert Bacal (Briefcase Books by McGraw Hill)
30 Q&A Donna Baeza, SPHR Director, HR & HR Business Solutions (800) x1139
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