Performance Management
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1 Performance Management Work Plan Development Performance Evaluation Process Objectives Why would a Performance Management System be defined under state law? (G. S ) Work Plans: What are specific, measurable performance expectations? The 5-point performance rating scale Why is the process so important? HR Management System On Boarding Sequence Employee Hired Share Work Plan within 30 days Submit Work Plan within 60 days End of Six Months (Probation in most cases) Complete competency assessment Do Interim Review with permanent employees At end of cycle, do Performance Management (March) As business needs change, if competency level of employee changes, revise competency assessment and submit with Budget form for approval of increase 1
2 Performance Management (Standard Program) History Work cycle year Rating Scale (1-5) Three phases: Planning (Development of Work plan) 20% Managing (Interim Review & Interaction Management) 60% Appraising (Completion of Evaluation) 20% Mandates and Guides NC Law (G.S ) The Performance Management System shall ensure that all employees: (1)are aware of what is expected of them, (Write a clear and concise work plan) (2) are provided with continuous feedback about their performance, (Monitor and Coach Interactive management) (3) are provided with opportunities for education, training and development, and (Encourage improved performance and growth) (4) are rewarded in a fair and equitable manner. (Consistently rate all employees) Mandates and Guides Office of State Personnel State Personnel Manual, Section 10 University Policy Policy Statement # A work plan and Performance Management are legal documents often used in employment grievance hearings and court cases 2
3 Performance Evaluation and Competency Assessment Performance Management measures whether employee meets supervisor s expectations for satisfactory work Competency Assessment measures demonstrated competencies against market standards to determine fair compensation POSITION AND INCUMBENT POSITION & REQUIRED COMPETENCIES INCUMBENT Contributing Journey Advanced COMPETENCY ASSESSMENT CONTRIBUTING JOURNEY ADVANCED PERFORMANCE MANAGEMENT OUTSTANDING VERY GOOD GOOD BELOW GOOD UNSATISFACTORY SALARY DETERMINATION CAREER DEVELOPMENT PLAN Reward is not in Compensation The Performance Management System has been used to determine variable pay increases based on numerical ratings only once in this century Employees with Performance Management ratings of overall 1 or 2 may receive a Cost of Living percentage but not a Career Growth percentage if the exclusion is written into legislation. The SPA salary administration system has not functioned as a performance based system. 3
4 But in Performance Management! Benefits the employee by answering: What is my role? What do you expect? How can I improve? Benefits the supervisor by offering: Identification of difficulties Opportunities for planning Productivity measurements Benefits the organization by encouraging: Better communication with employees Response to training needs Employee development and retention First Step: Development of Work Plan (Planning Phase) Three key parts Functional Competencies & Behavioral Competencies Priority importance of Functional Competencies The Supervisor s Results Expectations and Behavioral Expectations (Goals) Functional Competencies Functional Competencies will tie together the Position Description, the Work Plan, and the Competency Assessment For each functional competency area, the supervisor develops expectations (goals) of job-specific outcomes that will result from good performance 4
5 When is the Work Plan Done? Best time to develop work plan is along with the position description In employee s first month, go over work plan carefully. Process is to be completed days after a hire. Supervisor is prompted to submit by HR Results Expectations for Functional Competency Areas Definition specify the desired outcome or product of the work performance Must be realistic, observable, & measurable Written at the meets expectation level Use S.M.A.R.T. criteria: Specific Measurable Achievable Realistic Time-Bound Writing Expectations for Functional Competency Areas (examples) Customer Service, Will answer all phone messages and s within one business day and if unable to provide customer with answer will refer to appropriate person. Program Knowledge, Capable of explaining functions of office to outside customers. Direct them to appropriate person for assistance and ensure all documentation from vendors are assorted and forwarded to correct department. 5
6 Writing Expectations for Functional Competency Areas (examples) Information/Records Administration: Incoming applications are keyed into system within 24 hours with no more than one error Work Coordination: Rooms for event and meetings are scheduled one month in advance. Meeting notices are sent out 2 weeks before event. Safety Compliance: Receives a minimum of 90% on safety inspections during reporting periods Behavioral Competencies Definition the attitudes and values demonstrated by an employee in carrying out responsibilities. Major behaviors, how an employee performs the responsibilities assigned to the position. The total number of behaviors and key responsibilities listed in a work plan should not exceed 12. Examples: customer service, teamwork, attention to detail, communication, organizational awareness, leadership Behavioral Expectations Definition supervisor specifies the desired process or behavior in which a task is to be performed. Must be realistic, observable, & measurable (when appropriate) Written at the meets expectation level 6
7 Sample Behavioral Expectations Performance Evaluations ends Work Cycle Year All SPA employee s performance is evaluated during the work cycle year: From March 1 to the last day of the next February General Statute mandates annual submission of 1-5 performance rating for each employee. Rating Scale 5- Outstanding 4- Very Good 3- Good, meets expectations 2- Below Good 1- Unsatisfactory 7
8 Interim Review Definition mid-cycle review of performance September October (6 months into work cycle) Review Functional Competency Goals/Expectations with employees Discuss Successful Work Behaviors An improvement plan may be needed Improvement Plan form on web Evaluation/Evaluation Conducted at end of work cycle (March April). Human Resources will send notification to supervisors mid February. Be prepared: To gather your documentation of performance and achievements throughout the year. If desired, supervisors may encourage employees to provide self-evaluations to which they may then respond. Also future goals for the next year. 8
9 Methods of Evaluation Checklist If employee self-evaluation is used Employee Self-Evaluation Option Supervisors may provide an employee with the option of evaluating his or her own work performance. The employee may include comments in the Employee Self-Report field for each competency. Employee comments must be followed by supervisor s own clearly identified evaluation, and the supervisor must provide the final rating in the column to the right If this option is used, Self-Report must be checked on the Methods of Evaluation Checklist Finalizing Performance Management Take the opportunity to comment on your supervisor s comments about your Evaluation. If self-report is not one of your supervisor s methods of evaluation, outline your major accomplishments and include in the employee s comment section. 9
10 Performance Improvement/ Career Development Plans Evaluation, (cont.) Evaluation should have 3 approvals: -Employee -Supervisor -Reviewer Employees can access their evaluation anytime through HRMS. Once approved by your Evaluation Reviewer, it becomes permanent record in HRMS. End of Work Cycle Intermission Another task to do? Is Performance Management or is it about productivity? 10
11 Why Another Assessment? The State must consider all feasible options -- including incentive pay, variable pay, bonus pay programs, and proactive compensation planning and management -- to enhance the recruitment and retention of employees across the state s many diverse occupational groups. State of NC, Office of State Personnel 2008 Compensation and Benefits Report Competency Assessment Since Performance Evaluation are not intended for merit based pay, Competency Assessment was introduced for employee compensation. A market focus was combined with a competency-based position structure and assessment plan Functional Competencies were identified for each career band and described at three levels of competency which each correspond to different levels of market pay within the band. Career Band Market Range (Accounting Technician) $24,605 $37,200 $52,374 C-MRR: $27,831 J-MRR: $37,200 A-MRR: $44,752 Questions We Ask What is this set of required competencies worth in current market? What does the pay factor of internal equity and basic good judgment allow on our campus? 11
12 Salary Administration Salary increases may be approved when employee demonstrates new or better developed competencies within the same band level in response to business need Funds must be available Must have a business need Internal alignment must be considered Unlike the Performance Management, the Competency Assessment is directly used as a tool to set and increase pay based on market rates. Example of Competency Assessment Shortened documentation A 5 is NOT Advanced Outstanding employees are found at all market levels. The C, J, A terms define positions in terms of market and business need. 12
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