Performance Appraisal and Development Overview

Transcription

1 Performance Appraisal and Development Overview Performance management and its relationship to Performance Appraisal and Development Performance management is our goal; performance appraisal and development is the way we achieve our goal. The purposes of performance management are: PA&D format provides a vehicle for the manager and employee to: Success of Performance Appraisal and Development process is possible only if: To facilitate open communication between the employee and the manager. To keep the employee informed about how the employee is currently meeting the expected performance standards. To solicit employee input for increasing the employee s own effectiveness. To provide the employee with an opportunity to improve job skills and knowledge through a plan for personal and professional development. To document employee performance for the purpose of pay, career advancement, and remedial measures. Plan the work that is to be done during the year. Decide the measures that will be applied to determine the success of the employee s efforts. Facilitate discussion and feedback to the employee regarding overall performance and development activities necessary to enhance performance. Document the process. There is meaningful dialogue between the manager and employee. The employee fully understands the manager s expectations. The employee receives honest and complete feedback.

2 PA&D Participant Manual Performance Appraisal and Development Overview Overview of the Performance Appraisal & Development process (PA&D) PA&D is divided into two distinct, yet directly related, evaluation sections. The first part (Performance Appraisal) focuses on the employee s job and involves the assignment of specific competencies and job requirements that outline what is to be accomplished in the assignment. The second part (Development Plan) is designed to determine career options based on the employee s interests and aspirations, the manager s evaluation of the employee s growth potential, and the employee s total job performance. The Development Plan is also a tool for identifying training and development activities designed to improve skills and promote growth within the organization. The performance appraisal & development process (PA&D) consists of nine phases. Phase When What 1. Preparing for the process Prior to planning meeting Manager preparation 2. Planning competencies By the end of 1st Quarter Planning meeting 3. Planning performance requirements 4. Providing periodic feedback Throughout the year Periodic meetings 5. Asking for employee input Prior to year-end Give employee form 6. Reviewing with next-level management Prior to year-end Confer with next-level-up management Competencies Performance Requirements Development Plan 7. Discussing evaluation of competencies By the end of PA&D meeting 8. Discussing evaluation of performance 1st Quarter of next year requirements 9. Discussing development plan In the rest of this training program, we will review each of these phases in detail with examples.

3 Preparing for PA&D Exercise: Benefits of preparing for the PA&D planning meeting What are three benefits for preparing the PA&D planning meeting? Preparing for the Step #1: Know good business unit goals PA&D planning Know the goals of your business unit. To know what they are, check with your manager. meeting PA&D does not take place in a vacuum, but is to be conducted in the context of business goals so that the performance and development is a chain in the link between the business unit requirements of the manager s area and the business requirements of employees. Step #2: Step #3: Step #4: Review position analysis Review the position analysis for each of your positions to see that they are current and up to date. (If one doesn t exist, write one.) Plan competencies in support of the business plan Identify which competencies from the competency list apply to the position for which you are planning competencies. Consult the Competency Review Checklist to see which competencies apply to the position analysis. Plan performance requirements (objectives) in support of the business plan These are written statements of objectives to be accomplished during the year. Performance Requirements generally include major projects requiring a significant number of individual or team activities or duties to complete. They typically do not include the day-to-day tasks of the job/assignment. Once you have taken these steps, you are ready to have your planning meeting with your employee.

4 PA&D Participant Manual Preparing for PA&D Some do s and don ts for the planning meeting Do: Open by explaining that there has been a change in the process. Explain that you are going to be identifying competencies and performance requirements. Keep the discussion on track. Draw your employees out by restatement, reflective listening and asking thought-provoking questions. Function co-operatively to identify competencies and objectives. Close properly, summarize plans for improvements, changes, etc. Create a comfortable environment Use an appropriate setting Don t: Make fun of the company for bringing out a new process. Use a you instead of a me attitude. Get dragged into a performance appraisal discussion. Force competencies and objectives without getting buy-in. Dominate the conversation. Get into arguments, but do admit the possibility of differing viewpoints. Be condescending.

5 PA&D Participant Manual Preparing for PA&D Overview of the PA&D form A quick review of the PA&D form: Page 1 Definitions Performance Ratings Categories Critical Dates for Completion Page 2 Page 3 Page 4 Performance Competencies Overall Competency Rating Performance Requirements Overall Performance Requirements Rating Combined Competency/Performance Requirements Rating (A)+(B) Employee Development Plan: Employee side Employee Development Plan: Manager side Another way of looking at this information is to see the process and the form linked as follows: Phase When What Page 1. Preparing for PA&D Prior to planning meeting Manager preparation 2. Planning competencies By the end of 1st Quarter Planning meeting 3. Planning performance requirements 2 4. Providing periodic feedback Throughout the year Periodic meetings 5. Asking for written employee input Prior to year-end Give employee form Bottom of p.2 & p.3 6. Reviewing with next-level management Prior to year-end Confer with next-level-up 2 Competencies Performance Requirements Development Plan management 7. Discussing evaluation of competencies By the end of 1st Quarter PA&D meeting 2 8. Discussing evaluation of of the next year performance requirements 9. Discussing development plan 4

6 PA&D Participant Manual Planning Competencies Competencies overview These are general skillsets and behaviors that are critical to overall success. Performance Competencies include elements that are key values (such as Teamwork), as well as vital approaches to good business practice (Managing Resources, Relationships). A list of competencies is included on the PA&D form. Refer to the Competency Review Checklist for further discussion on competencies. It is important to understand that all competencies do not apply in all jobs. Rather, it is up to the manager and employee to decide which competencies will be used to measure performance during the present rating cycle. Exercise Identifying competencies from position analyses Instructions: In this activity we will break into four small teams and examine a few representative job descriptions from within our organization. The goal is to review this material together and identify what competencies are implied in the position analysis your group is assigned. One of the team members should be a scribe and use the form below to check off the competencies you have identified for the position. (Remember to refer to your Competency Review Checklist.) Performance If Applicable Ratings Competencies for Current Year FE EE AE PAE DNM USG Competency Department/Job Competency (List) Job Knowledge Work Quality Decision Making/Problem Solving Communication Adaptability/Flexibility Teamwork Leadership Managing Resources Developing Others Risk Taking, Innovation Administration/Organization Managing Conflict/Negotiation Relationship Building Energy, Drive, Ambition Time Management Self Management and Development

7 Planning Competencies Examples Position #1 Position #2 Position #3 Position Accountabilities: Achieve assigned area sales volume, industry position, realized price and gross profit on assigned products and or systems. Effectively coordinate area Marketing activities on assigned products and systems with manufacturing to insure efficient capacity utilization and provide support for capital authorities. Analyze markets; explore opportunities for new market/products. Provide and initiate strategies to increase product penetration and profit improvement. Develop, motivate and provide technical support to line sales units. Direct and coordinate all aspects of area pricing policies on assigned products to insure legal protection and attainment of maximum gross profits and accurate invoicing. Coordinate the efforts of Research, Purchasing and Manufacturing to provide new and improved products at the lowest possible cost. Develop data to support Region and Corporate studies, forecasts, and market analysis. Position Accountabilities: Assists the office manager in measuring and analyzing the financial data of the plant s business operation. Responsible for plant cost accounting and accounts payable for the plant. Also directly responsible for plant hourly payroll. Provides development and training to junior-level accounting professionals and clerical staff. Assumes responsibility for the accurate and timely submission of all accounting information to meet company reporting requirement. Accurately interprets all operating procedural bulletins and instruction to ensure proper application at the local level. Responsible for maintenance of good housekeeping standards throughout assigned areas. Position Accountabilities: Prepare the assigned analysis and computational work required to put together the division forecasts and goals. Prepare or audit the financial benefits on division authority proposals. Prepare or audit the financial benefits accomplished for past division capital expenditures. Prepare special reports of the results of division operations and special analyses for division managers in an accurate and timely manner. Monitor division results for situations that are adversely affecting results, and for opportunities for improvement, and bring them to the attention of division managers. Provide technical assistance to division plants on the standard cost and actual monthly cost systems. Develop and maintain software programming to enhance the preparation of division reports and analyses. Provide appropriate guidance, training and direction to the other analysts.

8 PA&D Participant Manual Planning Competencies Position #4 Position Accountabilities: Coordination of Plant Safety Program activities. Staffing plant with hourly employees of appropriate and desired skill and background. Assist in the promotion and administration of company wage and benefit programs. Assist plant management with maintaining an effective employee relations program. Completion of required administrative reports. Conducting new employee orientation. Coordination of accident investigations. Participation in local human resource organizations.

9 Filling out the Competency section of the PA&D form Competency If Applicable for Current Year Ratings FE EE AE PAE DNM Competency Department/Job Competency (List) Job Knowledge Work Quality Decision Making/Problem Solving Communication Adaptability/Flexibility Teamwork Leadership Managing Resources Developing Others Risk Taking, Innovation Administration/Organization Managing Conflict/Negotiation Relationship Building Energy, Drive, Ambition Time Management Self Management and Development A. Check the competencies applicable during the current year. B. List other competencies not listed but required for the department or the job in the Department/Job Competency Section.

10 PA&D Participant Manual Planning Performance Requirements (Objectives) These are written statements of objectives to be accomplished during the year. Performance Requirements generally include major projects requiring a significant number of individual or team activities or duties to complete. They typically do not include the day-to-day tasks of the job/assignment. It is important that the manager and employee develop meaningful performance requirements at the beginning of the year. If business conditions and priorities change during the year, performance requirements can also be revised.

11 Performance Requirements written properly Performance requirements must be: Meaningful Actionable Measurable Understood Relating to the organization s overall goals and objectives. Requiring the employee to do something for successful results. Measuring in terms of quality of work, quantity, cost, deadlines, etc. Making sure both the manager and employee mean the same thing. To make sure that performance requirements meet these criteria, it is useful to think of a performance requirement as following this formula: Action Word Key Result Target Date Tactic Sell 1 million By June 30th By contacting former customers using a competing product Reduce Scrap by 20% By October 1st By identifying root causes that create scrap Filling out Performance Requirements section of the PA&D form Requirement/Objective/Measure Comments on Achievement A. Write the Requirement/Objective in the first column. B. Comments on the achievement will be written in the second column at year-end by the employee and reviewed by and with the manager.

12 PA&D Participant Manual Reviewing with Next-level-up Management Common errors in appraising performance Contrast Effect First Impression Error Halo Effect Similar-to-me Error Central Tendency Error Negative and Positive Leniency The tendency for the reviewer to evaluate a person s performance relative to the performance of other individuals rather than the requirements of the position. For example, a person doing an average job should not be rated higher when he or she is surrounded by poor performers or rated lower when surrounded by superior performers. The tendency for a manager to make an initial favorable or unfavorable judgement about an employee, and then ignore or distort subsequent information so it seems to support the initial impression. For example, during the first month on the job an employee did outstanding work and then for the next five months the person did, at best, average work. It would be first impression error to continue giving a high rating. The tendency to make inappropriate generalizations from one aspect of a person s performance on the job to all aspects of a person s performance. For example, a person who is outstanding at number crunching might be rated excellent in his people skills when that rating is not warranted. The tendency by the manager to judge those people whom the manager perceives as similar to manager more favorably. For example, if an employee went to the same school or has the same social background as the manager, the manager rates the employee higher because it reinforces and flatters our perceptions of ourselves. This refers to managers who, in an attempt to play it safe, consistently rate an employee on or close to the midpoint of a performance scale when the employee s actual performance clearly warrants a substantially higher or lower rating. Common to managers who are either too hard or easy in their performance ratings.

13 PA&D Participant Manual Reviewing with Next-level-up Management Performance ratings categories Performance Rating: Based on overall Performance competency achievement and attainment of annual Performance Requirements. Each employee receives a performance rating that best describes his/her total effort and results in adding value to the department and the company. Performance ratings are divided into five (5) categories: FE Far Exceeds Expectations Results significantly surpassed expectations and overall performance, distinguishing the incumbent as a top performer within the department/organization. EE Exceeded Expectations Results frequently surpassed expectations and established the incumbent as a key contributor within the department/organization. AE Achieved Expectations Results indicative of solid performance that clearly added value to the department/organization. A majority of all USG employees should fall into this category. Includes newly-assigned employees with good performance. PAE Partially Achieved Sporadic results with considerable opportunity for improvement. Includes new employees with less Expectations than one (1) year of service. DNM Did Not Meet Expectations Results clearly below expectations and significant improvement necessary for the employee to remain in the assignment.

14 PA&D Participant Manual Reviewing with Next-level-up Management Entering evaluations in the Performance Requirements section Entering evaluations in the Competencies section of the PA&D form Performance If Applicable Ratings Competencies for Current Year FE EE AE PAE DNM USG Competency Department/Job Competency (List) Job Knowledge Work Quality Decision Making/Problem Solving Communication Adaptability/Flexibility Teamwork Leadership Managing Resources Developing Others Risk Taking, Innovation Administration/Organization Managing Conflict/Negotiation Relationship Building Energy, Drive, Ambition Time Management Self Management and Development Mastering the A/R software Overall Competency Rating (A): A. Enter checkmarks in the appropriate column for the performance in the competency B. The AE column is wide so that you can rate someone higher or lower by marking toward the left or right of the column C. Deriving the Overall Competency Rating The manager needs to use his or her judgment to look at the preponderance of ratings to figure out the average visually. The manager can weight some of the competencies if some of them are more important than others. The manager needs to apply these judgments consistently for all employees.

15 Entering evaluation in the Performance Requirements section Comments on Achievement section: Performance Requirements Requirement/Objective /Measure Comments on Achievement (Attach additional sheets if necessary) The employee fills out the comments on achievement and then the manager and the employee discuss the employee s comments and make changes, if necessary. What if objectives change during the year? Have they changed significantly enough to merit a change in objectives? If so, rewrite and have them reviewed by your manager. If not, write in the Other Comments section (page 4) that things have changed or if extra credit is to be given. (Remember: Things written in the Other Comments section are part of the performance appraisal.) Overall Performance Requirement Rating (B): Overall Performance Requirement Rating (B): FE EE AE PAE DNM This requires that the manager give a single rating for all entries. The manager needs to use his or her judgment to look at the preponderance of ratings to figure out the average visually. The manager can weight some of the competencies, if some of them are more important. The manager needs to apply these judgments consistently across all employees. Combining ratings rules Overall Performance Requirement Rating (B): Combined Competency/Performance Requirements Rating (A) +(B) Transfer to cover page FE EE AE PAE DNM A. Overall rating cannot be higher than the highest. B. Overall rating cannot be lower than the lowest. C. Transfer the Combined Rating to page one at the top

16 PA&D Participant Manual Discussing Development Planning About development planning As previously discussed, the Development Plan is a tool used to determine employee career aspirations and address longer term succession planning issues. The Development Plan section of PA&D replaces the previous Management Audit forms so that all job performance and career issues are identified simultaneously. This provides direct linkage between two previously related, but separately administered, employee assessment programs. The development plan will normally be addressed following the performance appraisal discussion, in the same meeting. Pages three (3) and four (4) of the form are completed at year-end. Page three (3) is the employee s opportunity to express the types of assignments he/she would be interested in beyond the present position. This section also addresses what the employee feels are his/her most important training and development needs, as well as any relocation or other special factors that could impact future assignments. Page four (4) of the Development Plan is to be completed by the employee s manager and requires a realistic determination of overall growth potential within the organization. It and provides critical information regarding training initiatives and developmental activities required for enhanced job performance and advancement. Some employees may not have specific career aspirations beyond the present job, and others may not be assessed by their managers as having growth potential. For these situations, the development plan may be very brief. However, when an employee expresses career aspirations exceeding the manager s evaluation of his/her growth potential, it is important to discuss the differences and manage employee expectations of future position opportunities. All employees have developmental needs that will either allow them to move into other assignments or enhance performance in their current positions. Questions six (6) and seven (7) of the Manager s Evaluation (page 4) require the manager to identify a specific development need and then transform it into a Performance Requirement for the next year s Performance Appraisal and Development Plan form.

17 Performance Appraisal and Development Plan The Performance Appraisal and Development Plan process is designed to facilitate meaningful job performance discussions between exempt salaried employees and their managers. PA&D assesses both the employee s performance in the present assignment and, as appropriate, potential for future opportunities within the organization. Refer to the Administrative Guidelines for detailed instructions on completing the form. Year Name Title Date Assigned Unit/Department Name & No. Location Manager/Supervisor Performance Rating (from page 2): Definitions Performance Competencies Performance Requirements Broadbased, general core skillsets and behaviors that are critical to overall success within USG. Competencies generally do not change from year to year. These are very specific objectives that should be completed within the calendar year. Performance requirements should be detailed, measurable, and describe the desired work to be performed. Performance Ratings Categories FE Far Exceeded Expectations Results significantly surpassed expectations and overall performance distinguished the incumbent as a top performer within the department/organization. EE Exceeded Expectations Results frequently surpassed expectations and established the incumbent as a key contributor within the department/organization. AE Achieved Expectations Results indicative of solid performance that clearly added value to the department/organization. A majority of all USG employees should fall into this category. Includes newly assigned employees with good performance. PAE Partially Achieved Expectations Sporadic results with considerable opportunity for improvement. Includes new employees with less than one (1) year of service. DNM Did Not Meet Expectations Results clearly below expectations and significant improvement necessary for the employee to remain in the assignment. Critical Dates for Completion January Employee and manager plan Performance Appraisal Section (page 2), assign competencies and performance requirements. Both sign and date form, along with next level of management. December-January Employee completes page 3. Manager evaluates employee performance and Development Plan on pages 2 and 4. Planning for new year begins. February-March Manager meets with employee to discuss Performance Appraisal and Development Plan. APPROPRIATE SIGNATURES ARE SECURED. 9/2007

18 Performance Appraisal Name: Performance Competencies Competency Department/Job Competence (List) Job Knowledge Work Quality Decision Making/Problem Solving Communication Adaptability/Flexibility Teamwork Leadership Managing Resources Developing Others Risk Taking, Innovation Administration/Organization Managing Conflict/Negotiation Relationship Building Energy, Drive, Ambition Time Management Self Management and Development If Applicable for Current Year Ratings FE EE AE PAE DNM Overall Competency Rating (A): Performance Requirements (Attach additional sheets if necessary) Requirement/Objective/Measure Comments on Achievement FE EE AE PAE DNM Overall Performance Requirement Rating (B): Combined Competency/Performance Requirement Rating (A) + (B) Transfer to cover page 2

19 Development Plan To be completed by employee at year-end Name: Employee s Comments 1 What are your short term (0-3 yrs.) and long term (over 3 yrs.) career aspirations? 2 What skills do you need to be more effective in your current assignment? For future assignments? 3 What type of development activities (education, training, work assignments, counseling, self-development, etc.) do you need to achieve your career aspirations? 4 Are there any considerations or special factors you have if a domestic or foreign assignment is identified during the next three years (i.e. travel/geographic factors)? 5 Are you willing to relocate (check one)? yes ( ) no ( ) 6 What International exposures have you had (including foreign languages)? Foreign Language Read Speak Write 7 What is your educational background? Degree Date School Undergraduate Graduate Post Graduate 8 Professional Certificates: 3

20 Development Plan To be completed by manager at year-end Name: Manager s Promotability Timeline Potential Next Assignments Evaluation 1 Immediate (0-1 years) 2 Short term (1-3 years) 3 Long term (3+ years) 4 Is the employee a candidate for a cross company/functional/lateral transfer? (check one) Yes ( ) No ( ) If yes, what are the probable assignments/locations? 5 Identify two strengths exhibited by this employee: a. b. 6 Identify the employee s most significant development need: 7 Develop an objective to address this need (Transfer this objective to the Performance Requirements section of next year s form.) 8 What other training/developmental activities should be considered for this employee? Development Need Activity/Training Completion Date 9 What significant development/training activities have been completed in the past 12 months (include external and in-house programs, taskforce participation, internships, etc.) Other comments regarding employee performance and development Signatures Signatures and Dates Planning Session Final Review Session Employee Supervisor Next Level Supervisor 4 Return to Talent Management Home Page