1. Performance Management
• Manager Training

2. Objectives of Training
1. Understand Performance Management
2. Clear purpose & goal for undertaking
Performance Management
3. Have a feeling it is worth doing well and
has a clear benefit to all
4. Agreed Manager Guidelines
5. Know how to use the system
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3. What is performance Management?
•The process of managing people to do the right thing;
driving constant and continuous improvement of
people in your organisation and work unit.
•Goal = Improve the performance and the abilities of
our employees to contribute to the company goals and
the goals of their work unit.
Right things Right way Contribution
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4. 4

5. Why Performance Management?
• Performance Management is part of a line managers
everyday job.
• A System formalises that process.
• It helps to:
• Align employees goals & objectives to the companies goals &
objectives
• Make the process Equitable and Fair – Legal issue
• Drive employee engagement – they feel like they are
contributing
• Drive a culture of values and continuous improvement
• Increase the companies overall skills
• Recognise stars and improve or weed out non-performers
• Improve employee turnover
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6. 6

7. Why a Performance Management system?
•Mainly it addresses Legal issues:
• Fair and equitable
• Consistent process for all
• We all sing from the same song
sheet
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8. Benefits and pitfalls of a formalised process?
Formal Informal
 Appearance of Fair and Objective  Intimate and personal
 More accurate  Flexible
 Less personal bias  High Personal bias
 Can assist inexperienced managers  Harder to police
 More control  Lacks comprehensive reporting
 Systematic process  Perceived as being unfair
 May become to cumbersome  Record keeping more difficult
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9. Factors effecting job attitudes
Leading to Leading to
Dissatisfaction Satisfaction
• Company policy • Achievement
• Supervision • Recognition
• Relationship with boss • Work itself
• Work conditions • Responsibility
• Salary • Advancement
• Relationship with peers • Growth
According to Herzberg’s theory - 1959
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10. Four key steps
1. Define Business Goals and Objectives
• Identify a clear set of business goals and objectives.
2. Plan Performance
• Set clear performance goals for a given period.
3. Coach Performance
• Coach the person to achieve the goals within the given time
period.
4. Review Performance
• Formally review the performance for a given period against the
performance goals.
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11. Contribution
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12. Stages of Performance Management
Problem “not doing what they should be doing” or “doing
Awareness something that they are not supposed to be doing”
Problem
How serious? Is it worth your time?
Assessment
Problem
What is the root cause? It could be you.
Identification
Performance Ensure they understand what is needed.
Planning Sense of direction, benchmark and confidence.
Performance
Ongoing feedback, reinforcement, encouragement.
Coaching
Performance No surprises meeting.
Review Planning for the following period.
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13. Coaching Steps
Stage 1
Stage 2 Stage 3
Feedback Stage 4
Monitor Further Feedback Stage 5
Identify, agree, performance Monitor
Congratulate or Warning
discuss, action plan, performance
Follow up, identify, clarify,
supported
encourage document
accountability
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14. Causes of Inflated Ratings
The belief that accurate ratings would have a damaging effect on the
subordinate’s motivation and performance
The desire to improve an employee’s eligibility for merit
The desire to avoid airing the department’s dirty laundry
The wish to avoid creating a negative permanent record of poor performance
that might hound the employee in the future
The need to protect good performers whose performance was suffering
because of personal problems
The wish to reward employees displaying great effort even though
contributions are relatively low
The need to avoid confrontation with certain hard-to-manage employees
The desire to promote a poor or disliked employee up and out of the
department
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15. Lowered Ratings
To scare better performance out of an employee
To punish a difficult or rebellious employee
To encourage a problem employee to quit
To create a strong record to justify a planned firing
To minimize the amount of the merit increase a
subordinate receives
To comply with an organization edict that discourages
managers from giving high ratings
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16. Legal
1. Documentation for legal protection
• used to protect against unfair dismissal claims
2. Possibility of condoning poor performance by inaction
• Employee can argue that this is the behaviour expected
3. Employer’s duty to the poor performer
• Give an employee an opportunity to rectify poor performance
4. Adequate warning before dismissal
• Document and make clear the consequences of poor performance
5. Effects of Equal Employment Opportunity (EEO)
• This can be avoided by making sure the appraisal criteria are work related, the criteria have
been checked and appraising managers have been trained to do appraisals.
6. Termination
• Sufficient notice, fairness and grounds for the termination
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17. Legal obligations can be met by:
 Transparent performance system, consistently applied
 Review is made against clearly specified criteria (for example a job
description, performance plan and performance goals)
 Previous performance assessments are taken into account
 Systems to deal with counselling and warnings are in place
 Nature, reason and duration of the actions are clearly written and
acknowledged.
 Understanding how performance could be improved & assessed
 Informed of the consequences of not improving performance and the
procedures to be followed if this occurs
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18. CRITERIA SHOULD BE:
• objective rather than subjective
• job-related or based on job analysis
• based on behaviours rather than traits
• within the control of the ratee
• related to specific functions, not global
assessments
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19. Counselling
• Vital skill as a manager
• Worth your time and effort
• Deal with personal problems only if they effect
performance
• Use a counselling service (Lifeline)
• Focus on solving the problem let them take the lead
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20. What can counselling achieve?
Providing This is appropriate to work-related problems when there is a clear-cut
solution. However, it is inappropriate in dealing with personal problems and
advice emotional situations.
Providing While this can give an employee encouragement or renew confidence, I t
may fail to address the root cause of the problem.
reassurance
Facilitating The manager can gain insight into the employee's thoughts and feelings and
enhance two-way communication.
communication.
Releasing The manager can allow the employee to unburden by sharing worries/
emotional concerns.
tension.
Clarifying Sometimes merely by talking things over, a person can get a new perspective
on the nature of a problem and begin to look at it more objectively. This will
thinking. go a long way towards enabling the employee to work out solutions.
Their goals, values or behaviour, especially if the problem is of a work-
Encouraging a
related nature.
change in an
If, however, the problem is a personal one, the manager may wish to refer
individual the employee to a professional counsellor.
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21. Counselling Guidelines
• Talk early in day and week and in private
• Be non-directive, non-judgemental, non-moralising and non-
prying
• Set a tone of working together as a team to resolve
• Be patient, jumping to conclusions will not get to the source
• Question and probe to help them clarify and resolve problem
• Get them to recognise the consequences of not dealing with it
• Assure confidentiality, encourage and engage in follow up
• Close without rushing, make sure they are comfortable
• Expecting an ideal outcome may be unrealistic
• Consider writing it all down either during or after as a summary
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22. Feedback
• Tell them how well they are doing
Tell & Sell • Sell them on the idea
• Flow is downward
Tell & •
•
Tell them how well they are doing
Strengths and areas of improvement needed
• Listen to response to gauge attitude and feelings, then discuss
Listen • Aim to increase job satisfaction
Problem •
•
Open clear two-way communication
Aim to solve for barriers to performance
• Non-threatening, reduces hostility
Solving • Recommended for most situations
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23. Feed forward
• Rather than feedback on what has gone wrong, give
ideas for the future.
• Much the same way we are focusing on what and
how a person is contributing to the company, we
focus on what the person can do better going
forward
• Let go of the past
• Feedback usually means the other person is wrong
• Nothing to be learnt from defending that you are
right
• More @ http://www.marshallgoldsmithlibrary.com
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24. Feed Forward top ten
1. We can change the future
2. More productive to help people learn to be “right”
3. Who likes negative feedback, giving or receiving it
4. Just requires have good ides to move forward
5. Not as personally taken
6. Feedback reinforces self fulfilling prophecy and failure. Feedforward
reinforces the possibility of change
7. Corrects mistakes not dwell on them
8. “Here are 2 ideas, if you only use one you are ahead, please accept them
in the positive spirit they are intended”
9. Feedback is seen as judgemental
10. Easier to listen to as you are not composing a reply in your head.
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25. 1.
Receiving Feedback
Listen carefully
2. Seek feedback - See it as an opportunity to learn
something
3. Don’t be reactive or let defenses build, mentally note
questions or disagreements
4. Summarise what you think you hear to check your
perception for accuracy and understanding.
5. Ask questions & for examples for clarification. Paraphrase
answers again
6. Carefully evaluate accuracy & potential value
7. observing your own behaviour & other's reactions to it
8. Do not overreact to feedback, modify your behaviour &
evaluate the outcomes. Avoid explaining or excuses.
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26. Keys to success
Focus on the contribution by employee,
Pay attention to barriers to performance
Check your bias, establish the habit of constantly
gathering information about performance.
Be aware of legal issues, main focus is on
improvement
Become a good counsellor, give feed forward,
know how to take feedback
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