Performance Management Petr Eliáš, NGO conference Vienna 2011

Performance Management Performance Management includes activities to ensure that goals are consistently being met in an effective and efficient manner includes activities to ensure that goals are consistently being met in an effective and efficient manner reminds us that being busy is not the same as producing results reminds us that being busy is not the same as producing results reminds us that training, strong commitment and lots of hard work alone are not results reminds us that training, strong commitment and lots of hard work alone are not results The major contribution of Performance Management is its focus on achieving results.

Performance Management applies to more than employees Performance Management Performance Management should also be focused on: should also be focused on: 1. the organization 2. departments 3. processes 4. programs 5. products or services 6. projects 7. teams

Performance Management of Employees Ongoing process of communication between line manager and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. What are the strategic goals of your organization? What are the strategic goals of HR?

The overall goal of Performance Management is to ensure that organization and all of its subsystems (departments, teams, employees) are working together to achieve the goals disared by organization. STRATEGIC GOALS OF THE ORGANIZATION HR GOALS PERFORMANCE GOALS INDIVIDUAL PERFORMANCE GOALS INDIVIDUAL PERFORMANCE GOALS

Employee Performance Management Process 1. Establishing Performance Goals 2. Performance Plans 3. Observation and Feedback 4. Evaluating Performance 5. Recognizing Performance Gaps 6. Performance Improvement The Steps are generally followed in sequence, but rarely followed in exact sequence. Results from one step can be used to immediately update or modify earlier steps.

Performance goals Performance objectives and standards are two of the most common methods to define expected results – goals. Performance goals Performance objectives and standards are two of the most common methods to define expected results – goals. Objectives and standards are most useful when they are: SMART S pecific S pecific M easurable M easurable A chievable A chievable R elevant R elevant T imely T imely

Establishing strategic goals 1. Strategic Planning – employee goals should align with strategic goals with strategic goals 2. Task and Job Analysis – Job Description 3. Competencies – Description of Skills 4. Goal setting with employees Clearly described goal will eliminate misunderstandings between line manager and employee. Clearly described goal will eliminate misunderstandings between line manager and employee.

What are Key Goals?  Key objectives (Goal) is “Measurable realistic set of objectives one is expected to achieve with in defined time frame”.  It reflects the job of a person.  It is a yardstick to measure performance.  It creates link between personal & organizational goal. goal.

Performance plans Review of organizational goals Review of organizational goals Specification of goals of organizational unit Specification of goals of organizational unit Aligning goals with organizational goals Aligning goals with organizational goals Prioritization of goals Prioritization of goals Identification of measures to evaluate if goals were achieved Identification of measures to evaluate if goals were achieved Identification of standards for evaluating how well goals should be achieved Identification of standards for evaluating how well goals should be achieved Documentation of performance plan including: Documentation of performance plan including: goals, measures, standards goals, measures, standards

Supervisor's Responsibilities  Help employee to set SMART cascaded objectives.  Ensure co-workers understand Organisation/ Department / Team objectives and how they fit in the “big picture.”  Provide opportunity to employee to discuss the possibilities for future growth  Provide employee with ongoing performance coaching and feedback.  Track performance throughout the year and provide guidance if needed.

Observation and feedback Ongoing feedback is more important than measuring of results. Observation and feedback Ongoing feedback is more important than measuring of results. What is important: Clarity Clarity Emphasizing the positive Emphasizing the positive Being specific Being specific Focusing on behaviour rather than person Focusing on behaviour rather than person Refering to behaviour that can be changed Refering to behaviour that can be changed Being descriptive rather than evaluative Being descriptive rather than evaluative Being careful with advice Being careful with advice Coaching – strenghtening of communication between line manager and employee.

Performance Evaluation Performance Appraisal: Performance Appraisal: Documentation of expected results (goals) Documentation of expected results (goals) Standards of performance Standards of performance Progress toward achieving of results (goals) Progress toward achieving of results (goals) How well they were achieved How well they were achieved Examples indicating achievement Examples indicating achievement Suggestions to improve performance Suggestions to improve performance How those suggestions can be followed How those suggestions can be followed Reward for good performance !

Recognizing Performance Gaps What is required level of performance ? What is required level of performance ? What is status quo ? What is status quo ? Identification of means for measuring performance gap. Identification of means for measuring performance gap. Identification of performance gap between status quo and required level. Identification of performance gap between status quo and required level. Identification of causes of gap. Identification of causes of gap.

Performance Improvement If performance does not meet required standards: a performance development plan is implemented. How the conclusion of inadequate performance was made? How the conclusion of inadequate performance was made? What actions are to be taken and by whom and when? What actions are to be taken and by whom and when? When performance will be reviewed again and how? When performance will be reviewed again and how?

Benefits of Performance Management clear knowledge of expectations and of the company/organization objectives aligned with goals of employees clear knowledge of expectations and of the company/organization objectives aligned with goals of employees focus performance; the employees’ contributions are aligned to organization goals focus performance; the employees’ contributions are aligned to organization goals common language for the evaluation of performance common language for the evaluation of performance managers get to know their employees better (skills, strengths, motivation factors, etc.) managers get to know their employees better (skills, strengths, motivation factors, etc.) the employee gets a feedback on his/her current performance the employee gets a feedback on his/her current performance adequate measures referring to the employee’s performance are clearly documented and can be taken adequate measures referring to the employee’s performance are clearly documented and can be taken