Organization Development and Change Performance & Talent Management
A Performance Management Model Business Strategy Reward Systems Goal Setting Individual and Group Performance Workplace Technology Employee Involvement Performance Appraisal
Characteristics of Effective Goals Goals are Challenging Challenging but realistic Goals are set participatively Goals are Clear Goals are specific and operationally defined Resources for goal achievement are negotiated
Management by Objectives (MBO) MBO attempts to align personal goals with business strategy through increased communications and shared perceptions between managers and subordinates MBO programs may go beyond manager and subordinate roles to address individuals, work groups, and to reconcile conflicts. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Performance Appraisal Elements Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Performance Appraisal Application Stages Select the appropriate stakeholders Diagnose the current situation Establish the system’s purposes and objectives Design the performance appraisal system Experiment with implementation Evaluate and monitor the system Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Characteristics of Effective Appraisal Systems Timely Accurate Accepted by the users Understood Focused on critical control points Economically feasible Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Reward System Design Features Definition Person/Job Based vs. Performance Based The extent to which rewards are based on the person, the job or the outcomes of the work Market Position (External Equity) The relationship between what an organization pays and what other organizations pay Internal Equity The extent to which people doing similar work within and organization are rewarded the same Hierarchy The extent to which people in higher positions get more and varied rewards Centralization The extent to which reward system design, decisions and administration are standardized Rewards Mix The extent to which different types of rewards are available and offered to people Security The extent to which work is guaranteed Seniority The extent to which rewards are based on length of service
Characteristics of Effective Reward Systems Availability Timeliness Performance Contingency Durability Equity Visibility
Types of Rewards Pay Promotions Benefits Skill-based pay plans Performance-based pay systems link pay to performance Gain sharing involves paying bonuses based on improvements in the operating results Promotions Benefits
Performance Appraisal The evaluation of an employee’s current and potential levels of performance to allow managers to make objective human resource decisions Uses of performance appraisal Let workers know how they are doing and how they can do better Provide the basis for distributing rewards Help the organization monitor selection, training, and development activities
Common Eval Techniques Objective methods Their basis is a measurable quantity (e.g., units of output, sales volume, number of defective products). Judgmental methods Managerial estimates of employee performance levels Ranking Ordering employees from best to worst Difficult to use because there is no absolute standard and differences in performance of ranked employees is not apparent Rating Using a predetermined scale (standard) to evaluate each employee’s performance
Copyright © Cengage Learning. All rights reserved Performance Appraisal Form Copyright © Cengage Learning. All rights reserved Source: Courtesy 3M.
Performance Appraisal Form Source: Courtesy 3M.
Copyright © Cengage Learning. All rights reserved Interview Prep Can you make cause-effect linkages between your subordinates’ strengths and weakness and tangible outcomes? How often and to what extent have you intervened in your subordinates’ areas of responsibility? To what extent are your own actions a source of your subordinates problems? When diagnosing performance are you able to identify root causes (e.g., motivation, ability, resources)? Which are your subordinates limitations CANNOT be corrected? move them out of job or retain them? On what strengths can your subordinate capitalize to further increase their effectiveness? Copyright © Cengage Learning. All rights reserved
Avoiding Appraisal Errors Use the entire evaluation instrument; avoid focusing on one portion Do not let an employee’s poor performance in one area influence the evaluation of other areas of performance Evaluate the entire performance period and not the most recent behaviors of the employee Guard against any form of personal bias or discrimination in the evaluation
Common Feedback Errors Focusing on the person, rather than the behaviors Overwhelming the person with a laundry list of areas to improve, rather than focusing on a select few. Focusing on what you don’t want, rather than on what you do want. Being hurtful while claiming to just be “honest” Leaving the discussion with vague goals. Not making the feedback timely or frequent.
Coaching and Mentoring Goals Assist in execution of a transition Address a performance problem Develop new behavioral skills with leadership development Application Stages Establish the principles of the relationship Conduct an assessment Coach and client debrief the results Develop and Implement an action plan Assess the results
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning Do good… Many employees are driven not by pay, but the opportunity to grow and develop. Help those around you to reach their full potential! Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Team member appraisal & feedback Major areas of responsibility Goals/Expectations – both task and team process focused Contributions/Results Level of Contribution: Below Average; Average; Exceptional Areas of strengths Developmental priorities Goal setting for the rest of the semester
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning Debriefing: What was it like to be evaluated? What was it like to give feedback? Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Behavioral Coaching- 360 Feedback: Before you begin… The person you’re coaching is not willing to make a sincere effort to change. Behavioral coaching will only work if the manager you are coaching is willing to make the needed commitment. The person has been written off by the company. Sometimes, organizations are really just documenting a case to get rid of someone. If that’s the case, don’t bother going through this process. The person lacks the intelligence or functional skills to do the job. If a manager does not have the capacity or experience required, don’t expect behavioral coaching to help. The organization has the wrong mission. Behavioral coaching is a “how to get there” process, not a “where to go” process. If the organization is headed in the wrong direction, behavioral coaching will not make it change course.
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 360 Feedback: An Overview 1. Clarify the purpose for every member of the organization 2. Clarify rater anonymity, accountability, and selection 3. Prepare participants 4. Review and interpret feedback results 5. Develop an action plan 6. Follow-up Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 360 Feedback: Steps… Identify attributes for the manager you are coaching. Once you’ve determined the behavioral characteristics of a successful manager in a given position—such things as accessibility to colleagues, recognition of others, and listening—ask that manager if he or she agrees that these are the right kinds of behaviors. Determine who can provide meaningful feedback. Key stakeholders may include direct reports, peers, customers, suppliers, or members of the management team. Strive for a balanced mix that does not stack the deck for or against the manager, and gain agreement that these are the appropriate reviewers. Collect feedback. Assessment is often best handled in a written, anonymous survey, compiled by an outside party into a summary report and given directly to the manager. Analyze results. Talk with the manager about the results of his or her peers’ feedback. The manager may choose not to disclose individual stakeholders’ comments or numerical scores. Discuss the manager’s key strengths and areas for improvement. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 360 Feedback: Steps… Develop an action plan. The most helpful—and appreciated—outcome of any assessment is specific advice. Developing “alternatives to consider” (rather than mandates) should not be difficult. If, for example, you asked the manager to suggest things you could do to be a better listener, you would probably receive a pretty good list, such as: Don’t interrupt people; Paraphrase what they say; Make eye contact; Pause five seconds before responding to their remarks; Recognize that the problem isn’t figuring out what to do; the problem is doing it; and Focus on one or two key behaviors and develop a few action steps to improve each. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 360 Feedback: Steps… Have the manager respond to stakeholders. The manager being reviewed should talk with each member of the review team and collect additional suggestions on how to improve on the key areas targeted for improvement. Develop an ongoing follow-up process. Within three or four months conduct a two- to six-item mini-survey with the original review team. Respondents should be asked whether the manager has become more or less effective in the areas targeted for improvement. Review results and start again. If the manager has taken the process seriously, stakeholders almost invariably report improvement. Build on that success by repeating the process quarterly for the next twelve to eighteen months. This type of follow-up will assure continued progress on initial goals and uncover additional areas for improvement. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
The Role of HR: From HRM to Org Effectiveness If we think about HR departments as a business which products would they offer? Basic administrative services and transactions involved in compensating, hiring, training, and staffing Business partner services involved with developing effective HR systems and helping implement business plans, talent management Strategic partner role contributing to business strategy based on considerations of human capital, organizational capabilities, readiness, and developing HR practices as strategic differentiators Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
What does it mean to make HR a strategic business partner? Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning What would help executives to see HR as having the capability to be a strategic partner? Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Leading Change at Simmons Should Eitel and his team roll out the Great Game of life at Simmons? Who is in favor? Why? Who is against it? Why? What is the context that management is facing in late 2001? Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning GGOL Video As you watch the video, what do you observe? What new information do you get about the program and about how it might affect the workplace? Ask yourself, does this change your decision about GGOL? Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning GGOL Video: Why are the participants so excited? Why is this important? What is going on in the team meetings? Anyone want to change their mind? How come? Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning GGOL After the Video: Why are the participants so excited? Why is this important? What is going on in the team meetings? Anyone want to change their mind? How come? Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning Implementing GGOL? What specific ideas and plans for structuring a set of follow-on activities could be used to ensure that the emotion and insight generated during the program is applied to real change in the workplace? Discuss in groups of 3. Hints: How do you set the stage? Implement? Follow-up? Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning Implementation Channeling the emotional energy Make a continuous investment in systems, processes and structures to align cultural transformation with strategic and operational goals. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning So, what happened? An estimated 80% completed GGOL. Post GGOL Simmons significantly increased its investment in people: Systems for training & tracking employee development. Increased breadth of employee training Implemented PayPlus making some pay contingent on performance Implemented Team Growth Process structure Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning What happened? Won coveted awards: Fortune’s best companies to work for 2004, 2005 Decrease in: Legal fees, Workers comp, Workplace accidents Financially successful: Fenway Partners doubled their initial investment of 513 Million in a sale to Thomas Lee Partners. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning Next Week Team Presentations: SMA: Micro-Electronic Products Division Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning