Implementing a Performance Management System: Overview Preparation Preparation Communication Plan Communication Plan Appeals Process Appeals Process Training Programs Training Programs Pilot Testing Pilot Testing Ongoing Monitoring and Evaluation Ongoing Monitoring and Evaluation

Preparation Need to gain system buy- in through : Need to gain system buy- in through : Communication plan regarding Performance Management systemCommunication plan regarding Performance Management system Including appeals process Including appeals process Training programs for ratersTraining programs for raters Pilot testing systemPilot testing system Ongoing monitoring and evaluation Ongoing monitoring and evaluation

Communication Plan answers: What is Performance Management (PM)? What is Performance Management (PM)? How does PM fit in our strategy? How does PM fit in our strategy? What’s in it for me? What’s in it for me? How does it work? How does it work? What are our roles and responsibilities? What are our roles and responsibilities? How does PM relate to other initiatives? How does PM relate to other initiatives?

Cognitive Biases that affect communications effectiveness Selective exposure Selective exposure Selective perception Selective perception Selective retention Selective retention

To minimize effects of cognitive biases: A. Consider employees: Involve employees in system design Involve employees in system design Show how employee needs are met Show how employee needs are met

To minimize effects of cognitive biases (continued): B. Emphasize the positive Use credible communicators Use credible communicators Strike first – create positive attitude Strike first – create positive attitude Provide facts and conclusions Provide facts and conclusions

To minimize effects of cognitive biases (continued): C. Repeat, document, be consistent Put it in writing Put it in writing Use multiple channels of communication Use multiple channels of communication Say it, and then – say it again Say it, and then – say it again

Appeals Process Promote Employee buy-in to PM system Promote Employee buy-in to PM system Amicable/Non-retaliatoryAmicable/Non-retaliatory Resolution of disagreementsResolution of disagreements

Appeals Process Employees can question two types of issues: Employees can question two types of issues: JudgmentalJudgmental (validity of evaluation) (validity of evaluation) AdministrativeAdministrative (whether policies and procedures were followed) (whether policies and procedures were followed)

Appeals Process Level 1 Level 1 HR reviews facts, policies, proceduresHR reviews facts, policies, procedures HR reports to supervisor/employeeHR reports to supervisor/employee HR attempts to negotiate settlementHR attempts to negotiate settlement Level 2 Level 2 Arbitrator (panel of peers and managers) and/orArbitrator (panel of peers and managers) and/or High-level manager – final decisionHigh-level manager – final decision

Rater Training Programs Content Areas to include Content Areas to include InformationInformation Identifying, Observing, Recording, EvaluatingIdentifying, Observing, Recording, Evaluating How to Interact with EmployeesHow to Interact with Employees Choices of Training Programs to implement Choices of Training Programs to implement Rater Error TrainingRater Error Training Frame of Reference TrainingFrame of Reference Training Behavioral ObservationBehavioral Observation Self-leadership TrainingSelf-leadership Training

Content A. Information - how the system works Reasons for implementing the performance management systemReasons for implementing the performance management system InformationInformation the appraisal form the appraisal form system mechanics system mechanics

Content (continued) B. Identifying, observing, recording, and evaluating performance How to identify and rank job activitiesHow to identify and rank job activities How to observe, record, and measure performanceHow to observe, record, and measure performance How to minimize rating errorsHow to minimize rating errors

Content (continued) C. How to interact with employees when they receive performance information How to conduct an appraisal interviewHow to conduct an appraisal interview How to train, counsel, and coachHow to train, counsel, and coach

Choices of Training Programs Rater Error Training (RET) Rater Error Training (RET) Frame of Reference Training (FOR) Frame of Reference Training (FOR) Behavioral Observation Training (BO) Behavioral Observation Training (BO) Self-leadership Training (SL) Self-leadership Training (SL)

Rater Error Training (RET) Goals of Rater Error Training (RET) Goals of Rater Error Training (RET) Make raters aware of types of rating errorsMake raters aware of types of rating errors Help raters minimize errorsHelp raters minimize errors Increase rating accuracyIncrease rating accuracy

Intentional rating errors Leniency (inflation) Leniency (inflation) Severity (deflation) Severity (deflation) Central tendency Central tendency

Unintentional rating errors Similar to Me Similar to Me Halo Halo Primacy Primacy First Impression First Impression Contrast Contrast Stereotype Stereotype Negativity Negativity Recency Recency Spillover Spillover Attribution Attribution

Possible Solutions for Types of Rating Errors Intentional Intentional Focus on motivationFocus on motivation Demonstrate benefits of providing accurate ratingsDemonstrate benefits of providing accurate ratings Unintentional Unintentional Alert raters to different errors and their causesAlert raters to different errors and their causes

Frame of Reference Training (FOR) Goal of FOR* Goal of FOR* Raters develop common frame of referenceRaters develop common frame of reference Observing performance Observing performance Evaluating performance Evaluating performance * Most appropriate when PM appraisal system focuses on behaviors

Expected Results of FOR Raters provide consistent, more accurate ratings Raters provide consistent, more accurate ratings Raters help employees design effective development plans Raters help employees design effective development plans

Behavioral Observation Training (BO) Goals of BO Goals of BO Minimize unintentional rating errorsMinimize unintentional rating errors Improve rater skills by focusing on how raters:Improve rater skills by focusing on how raters: Observe performance Observe performance Store information about performance Store information about performance Recall information about performance Recall information about performance Use information about performance Use information about performance

Self-leadership Training (SL) Goals of SL Goals of SL Improve rater confidence in ability to manage performanceImprove rater confidence in ability to manage performance Enhance mental processesEnhance mental processes Increase self-efficacyIncrease self-efficacy

Pilot Testing Provides ability to Provides ability to Discover potential problemsDiscover potential problems Fix themFix them

Pilot Testing - benefits Gain information from potential participants Gain information from potential participants Learn about difficulties/obstacles Learn about difficulties/obstacles Collect recommendations on how to improve Collect recommendations on how to improve Understand personal reactions Understand personal reactions Get early buy-in Get early buy-in Get higher rate of acceptance Get higher rate of acceptance

Implementing a Pilot Test Roll out test version with sample group Roll out test version with sample group Staff and jobs generalizable to organizationStaff and jobs generalizable to organization Fully implement planned system Fully implement planned system All participants keep records of issues encounteredAll participants keep records of issues encountered Do not record appraisal scoresDo not record appraisal scores Collect input from all participantsCollect input from all participants

Ongoing Monitoring and Evaluation When system is implemented, decide: When system is implemented, decide: How to evaluate system effectivenessHow to evaluate system effectiveness How to measure implementationHow to measure implementation How to measure resultsHow to measure results

Evaluation data to collect: Reactions to the system Reactions to the system Assessments of requirements Assessments of requirements OperationalOperational TechnicalTechnical Effectiveness of performance ratings Effectiveness of performance ratings

Indicators to consider Number of individuals evaluated Number of individuals evaluated Distribution of performance ratings Distribution of performance ratings Quality of information Quality of information Quality of performance discussion meetings Quality of performance discussion meetings System satisfaction System satisfaction Cost/benefit ratio Cost/benefit ratio Unit-level and organization-level performance Unit-level and organization-level performance

Quick Review Preparation Preparation Communication Plan Communication Plan Appeals Process Appeals Process Training Programs Training Programs Pilot Testing Pilot Testing Ongoing Monitoring and Evaluation Ongoing Monitoring and Evaluation