Manager's Guide to Performance Management

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Harvey Osborne
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1 A Ok Briefcase Book Manager's Guide to Performance Management Second Edition Robert Bacal Me Grain/ Hill McGraw-Hill New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto

McGraw-Hill New York Chicago San Francisco Lisbon London

2 Contents Introduction vii 1. Performance Management: An Overview 1 What's Wrong with This Picture? 1 Is There Hope? 2 Performance Management: What Is It? 3 What Performance Management Isn't 4 What's the Payoff for Using Performance Management? 4 Manager's Checklist for Chapter The Challenge of Performance Management 11 Why Do So Many People Try to Avoid Performance Management? / 12 Criteria for Performance Management That Works 16 When Performance Management Approaches Don't Work 20 Manager's Checklist for Chapter Performance Management as a System 23 What Is a System?.-' 23 The Components of a Performance Management System 24 Where Performance Management Fits into the Big Picture 34 Manager's Checklist for Chapter Getting Ready: Preparing to Start the Process 37 Gathering Your Information 37 Preparing and Educating Staff 43 Manager's Checklist for Chapter 4 47 ill

The Challenge of Performance Management 11 Why Do So Many People Try to Avoid Performance Management?

3 iv Contents 5. Performance Planning: Setting Targets 49 Some Issues 49 An Overview of the Performance Planning Process 51 The Performance Planning Meeting 52 The Follow-Up 61 An Optional Step: Action Planning 61 Manager's Checklist for Chapter Ongoing Performance Communication 63 The Purpose 63 The Outcomes (Communication + Deliverables) 64 Formal Methods 65 Informal Methods 71 People Techniques 72 Communication in Action 73 Manager's Checklist for Chapter Data Gathering, Observing, and Documenting 77 Why Do We Gather Data and Observe? 78 What Do We Gather? What Do We Document? 79 Manager's Checklist for Chapter Three Approaches to Evaluating Performance 85 The Dilemma of Individual Performance Appraisal 86 Rating Systems 88 Ranking Systems 93 Appraisal by Objectives and Standards 95 Manager's Checklist for Chapter The Performance Appraisal Meeting 101 What Makes the Process Work? 102 Preparing and Scheduling 103 The Appraisal Meeting 106 Manager's Checklist for Chapter Performance Diagnosis and Improvement: The Key to Success 113 Causes of Success and Less-Than-Success 114 The Performance Diagnosis/Improvement Steps 116 The People Process 122 Manager's Checklist for Chapter

4 Contents 11. Performance Management and Discipline 125 The Meaning of Discipline 126 Principles of Disciplinary Action 128 The Purpose of Disciplinary Action/Consequences 128 The Progressive Discipline Steps 129 Disciplinary Process in Action 133 Manager's Checklist for Chapter If It's So Easy, Why Isn't "It" Getting Done? Answers to Common Objections 141 I'm Too Busy and You Are Asking Me to Do More Work 141 The System We're Forced to Use Is Dreadful. It's a Wasteful Paper Chase. 144 My Employees Hate the Appraisal Process 145 If I Use a Cooperative Approach, Employees Will Take Advantage and I Will Lose Power 146 Unless I Can Use Performance Appraisal to Reward Employees (Pay for Performance), There's No Point 147 Employees Won't Like Me or Get Angry if I Have to Tell Them They Need to Improve 150 Human Resources Won't Let Me Manage Performance Properly 151 Manager's Checklist for Chapter People Process, People Techniques 155 Your People Mindset 156 Essential Interpersonal Skills 157 Manager's Checklist for Chapter Human Resources and Performance Management 169 A True Story 169 Departments and Performance Management and Appraisal 172 What Should HR's Role Be in Performance Management? 175 Manager's Checklist for Chapter Revamping Performance Management Across the Enterprise 181 First, the Errors 182

Disciplinary Process in Action 133 Manager's Checklist for Chapter 11 139 12. If It's So Easy, Why Isn't "It" Getting Done?

5 vi Contents Solutions for Revamping the Performance Management System. 186 Manager's Checklist for Chapter Performance Management in Action 191 The First Step Toward Improving Performance Management 191 Agreeing on Goals and Objectives 194 Planning Performance with Staff 195 Communicating About Progress and Solving Problems 197 Preparing for the Yearly Review 198 Reviewing and Evaluating, 198 The Outcomes 199 Closing Comments 200 Manager's Checklist for Chapter Epilogue 201 Index 203

Objectives 194 Planning Performance with Staff 195 Communicating About Progress and Solving Problems 197 Preparing for the

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