E+-+e-Performance+Mgt

**  __**Performance Management:**__  The overall process which includes goal settings, performance appraisal, and development into a single common system. Goal is to ensure that employee's performance supports the company's strategic aims. **- Effective performance management remains the Holy Grail of HR management, a process easier to visualize and talk about than to actually** **implement** **- Body of knowledge** **based on what high performing organizations have done, and the systems for implementing these principles, aided by the emergence of the Web, has emerged and answered critical questions such as:** >  
 * [[image:http://farm3.static.flickr.com/2375/2299944541_8e5bf382dd.jpg width="305" height="154"]] e-Performance Management
 * How can we identify our best performers in order to focus our retention programs?
 * How can we improve performance and productivity across the company?
 * <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">How can we ensure that our managers develop employees so that we can build needed marketplace capabilities?
 * Organizations wanting to operate in a more holistic manner must:**
 * Create lines of sight between individual actions and company strategies and goals.
 * Establish attainable standards or performance.
 * Establish and communicate performance measures.
 * Provide possible corrections to positive feedback.
 * Identify developmental opportunities for employees.
 * Provide information for career management, identification, and succession-planning systems.
 * Serve as a reference point for reductions in the workforce, as well as disciplinary actions.

<span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">__**<span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">Performance Management **__
 * <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif"><span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif"><span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'"><span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">More differentiation of high performers.
 * <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif"><span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'"><span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">More likely to promote high-performing employees.
 * <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif"><span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif"> <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif"><span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'"><span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">Greater connection in the timing of pay delivery and <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'"><span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">performance reviews between pay and performance.
 * <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'"> More “multi-source” feedback, including external  <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'"> customers and subordinates.   <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif"><span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">
 * <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'"><span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">Employee performance linked to key business drivers.

<span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'; mso-fareast-font-family: Calibri; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'; mso-fareast-font-family: Calibri; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'; mso-fareast-font-family: Calibri; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'; mso-fareast-font-family: Calibri; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'; mso-fareast-font-family: Calibri; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA">
 * __<span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">Communication __**
 * <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'; mso-fareast-font-family: Calibri; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">More open to sharing pay information and <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">communicating value of total rewards package.
 * <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif"><span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'; mso-fareast-font-family: Calibri; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"> More clear about communicating the link <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif; msoFareastFontFamily: Calibrimso-ansi-language">between pay and performance.
 * <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'; mso-fareast-font-family: Calibri; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'; mso-fareast-font-family: Calibri; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'; mso-fareast-font-family: Calibri; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">Much more likely to measure managers’ ability <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'; mso-fareast-font-family: Calibri; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">to communicate and the success of rewards <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'; mso-fareast-font-family: Calibri; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">communication.

**<span style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"> ·  <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">A well-run performance management system will be linked to, and increase performance against, company objectives <span style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"> ·  <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Goals utilized in the performance planning process are linked closely to business strategy or objectives <span style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"> ·  <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Goals are cascaded from the top, and the aggregate of all individual goals provides real resources and muscle toward the accomplishment of company strategies <span style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"> ·  <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">The goal-setting processes for the organization and the individual are linked
 * <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Business Strategy Link Factor:

**<span style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"> ·  <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Managers often struggle with how to set measures in an environment where final goals for the corporation or business unit are not yet clear <span style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"> ·  <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">These issues have led to the three relatively new practices that have brought substantial rigor to the often-subjective process of setting performance expectation: <span style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"> ·  <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Aligning measures across all performance improvement programs. Often, in our efforts to avoid “double-dipping” of rewards, we end up under-rewarding some measures of success, or omitting them altogether. A thoughtful review of all performance measures, companywide, contrasted with existing systems often yields surprising omissions <span style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"> ·  <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Measuring not only “what” is done but also “how” it is done. In some firms this has led to the creation of specific behavioral expectations for pivotal roles; other firms measure overall performance against company-wide expectations, or what Lucent Technology refers to as “Citizen Competencies” <span style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"> ·  <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Using a blend of measures, including a balanced scorecard, wherever possible to ensure that performance reflects operational, customer, and employee measures, as well as financial outcomes
 * <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Measurement Factor:


 * Link to Other Systems:**

<span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Performance management systems that help to create and sustain a high-performing organization are well integrated into other strategies and programs · //<span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Rewards programs //<span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">: using performance management summary ratings as a direct link to recommendations for merit pay, variable incentives, and stock · //<span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Managing “out” systems //<span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">: strengthening managing out of severance programs in recognition of the fact that organizations without a high percentage of strong performers cannot expect candidates for organizational renewal to be identified through performance management · //<span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Leadership development and succession planning //<span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">: using 360-degree input gathered through performance management to identify leadership needs and to serve as a “circuit breaker” to stop candidates with inappropriate competencies from being promoted to key positions or roles · //<span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Annual operating cycles //<span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">: many organizations are borrowing a tactic from GE and creating an annual operating cycle that includes specific time set aside to develop performance criteria and measures, followed by goal cascading and end-of-year measurement · //<span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Retention systems //<span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">: employers with acute retention problems are beginning to identify those employees who are always on the cusp of receiving significant rewards, but for some reason have not done so    ·  <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Allows organizations to take the pressure off of performance management systems and to recognize that a variety of interlocking programs makes great business sense <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'"> <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">**Reinforcment Factor:** <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Today’s 3 or 4 percent merit budgets are not sufficient to truly differentiate performance levels, and there is no evidence that merit budgets will increase in the near future · <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">If today’s labor shortage has not led to an escalation of merit pools · <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Most companies have turned in a new direction and are focusing instead on looking for ways to integrate and maximize other incentives


 * Involvement Factor:**

<span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Many companies have adopted innovative methods to increase employee involvement in their performance management systems, such as involving employees in the goal-setting process by having them develop first drafts of goals and receive corresponding training · <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Numerous companies have integrated customer input into the appraisal and evaluation process by using multisource feedback. · <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">The use of multisource feedback within performance management systems has several clear advantages: <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">1. <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">It is increasingly important to differentiate various levels of performance in order to allocate scarce resources. <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">2. <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Skewed summary distribution practices have led many companies to introduce control measures, such as forced ranking and forced distribution systems. Customer input and employee involvement help to keep the standards level for everyone. <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">MulMultisource feedback reflects the rhythm and realities of today’s workspace. Introducing multisource feedback reflects that reality and improves the supervisor’s ability to correctly identify performance deficiencies and opportunities.

<span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">**Development Factor:** <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">Many organizations have paid scant attention to the developmental needs of their employees. <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">However, leaves the organization vulnerable to significant retention problems <span style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman','serif'">

<span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">
 * __Performance Appraisal:__**

Evaluating employee's performance relative to performance standards

- Objective Measures - Hard Criteria <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">- Subjective Measures - Performance Measure
 * Goal is to ACCURATELY appraise performance**
 * <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">$ Sales, Tardiness, Units Produced, Error Rate, Absence Rates, etc.
 * <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">Weaknesses
 * <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">Who Rates? Supervisors, Peers, Subordinates, Self
 * <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">Error & Biases
 * <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">Halo Error
 * <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">Central Tendency
 * <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">Leniency (Positive & Negative)

<span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">**Appraisal Methods** - Ranking <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">- Behavioral Checklist <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">- Forced Distribution <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">- Graphic Rating Scale - Most widely use - Behaviorally Anchored Rating Scale - Based on critical incidents, Behaviors are anchors
 * <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">Rank order rates from highest to lowest
 * <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">Series of Descriptive Statements of Job-Related Behavior
 * <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">Advantages - Decreases Central tendency & Leniency Errors
 * <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">Disadvantages - May not be accurate reflection of performance

- 38% of employees say they are rated unfairly or not at all - Survey by Ernst & Young - Deming argues that Performance Appraisal is "A Deadly Disease in Organizations" - Disregards existence of system - Erroneously attricutes variation in performance to individuals (85 - 15 rule) - Undermine teamwork, improvement - Focuses on short-term, end product <span style="FONT-SIZE: 10pt; FONT-FAMILY: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol"><span style="FONT-FAMILY: 'Times New Roman', Times, serif; msoList: Ignore"><span style="FONT-SIZE: 150%; FONT-FAMILY: 'Times New Roman', Times, serif">  media type="youtube" key="I9LLZJFBWdc" height="344" width="425" <span style="FONT-FAMILY: 'Times New Roman', Times, serif"> **Technology Comes In**
 * Problems with Appraisals**

- Electronic Performance Management <span style="FONT-FAMILY: 'Times New Roman', Times, serif"> - Supports Facilitation of Performance Appraisals <span style="FONT-FAMILY: 'Times New Roman', Times, serif"> - Supports allocation of "resources" to projects <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">Examples of what may be captured (volume produced, Product Quality/Tolerances, Keystrokes/Documents Produced, Time In/Time Out, Time "On Task") <span style="FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman', Times, serif">**Electronic Performance Monitoring** ( Telephone Monitoring, Video Monitoring, GPS)
 * <span style="FONT-FAMILY: 'Times New Roman', Times, serif"> Computing Technology used to provide managers with direct access to employee's terminals and phones
 * <span style="FONT-FAMILY: 'Times New Roman', Times, serif"> Assists managers in developing evaluations

//Performance Review// video featuring actor Hugh Laurie media type="youtube" key="DbqRV2Zf0C4" height="344" width="425"

**__Key Terms__** **   Results    **    - These are usually the final and specific outputs desired from the domain. Results are often expressed as products or services for an internal or external customers, but not always. They may be in terms of financial accomplishments, impact on a community, etc. Results are expressed in terms of cost, quality, quantity or time. ** Measures  **  - Measures provide specific information used to assess the extent of accomplishment of results. Measurements are typically expressed in terms of time, quantity, quality or cost. Results are a form of measure. ** Organization Preferred Goals  **  - These are usually overall accomplishments desired by an organization and are often established during strategic planning. The level of specificity of goals depends on the nature and needs of the organizations. Typically, the more specific the goals, the clearer the understanding of goals by the members of the organization. Organization Preferred Results    **      - The performance management process often includes translating organizational goals to be in terms of results, which themselves are described in terms of quantity, quality, timeliness or cost. **   Ongoing Observation, Measurements and Feedback    **      - These activities include observing the domain's activities in terms of progress toward preferred results, comparing progress to the preferred performance standards and then providing ongoing feedback (useful, understood and timely information to improve performance) to the domain. **    Rewards     **     - The performance review process usually adds information about rewarding the employee(s) if performance met or exceeded standards. Rewards can take many forms, e.g., merit increases, promotions, certificates of appreciation, letters of commendation, etc.

//**references:** Powerpoint slides// by Dr. Richard Johnson //Web-Based Human Resources// by Walker