1. Dr. Hilary Duckett Organisational Leadership

2.  To define performance management  To explain the leader/manager’s role in performance management  To explore the skills/principles underpinning performance reviews

3. “ …a systematic process for improving organizational performance by developing the performance of individuals and teams… a means of getting better results by understanding and managing performance within an agreed framework of planned goals, standards and comepetncy requirements.’ Armstrong, M. (2006)

4.  Strategic - concerned with broader issues facing the business and longer term goals  Integrated ◦ vertical integration (business, team, individual objectives) ◦ functional integration (different parts of the business) ◦ human resource integration (organisational development, hr development, reward) ◦ integration of individual needs (with those of the organisation)

5. From Armstrong (2006) Performance and Development Agreement Managing Performance Throughout the Year Performance Review

6.  To cascade organisational goals through to individual/team behaviours  To agree meaningful goals  To support a learning/development process  To co-create learning cultures and environments  To promote trusting relationships  To evaluate training/development needs Adapted from Parker Stone (2003)

7.  To help to achieve sustainable improvements in organisational performance  To act as a lever for change in developing a more performance oriented culture  To increase the motivation and commitment of employees  To enable individuals to develop their abilities, increase their job satisfaction and achieve their full potential  To enhance team cohesion and performance

8.  To develop constructive and open relationships between individuals and their managers in a process of continuing dialogue  To provide opportunities for individuals to express their aspirations and expectations about their work

9. Performance management should incorporate: ◦ Performance improvement - throughout the organisation, for individual, team and organisational effectiveness ◦ Development - unless there is continuous development of individuals and teams, performance will not improve ◦ Managing behaviour - ensuring that individuals are encouraged to behave in a way that allows and fosters better working relationships.

10.  Performance and development reviews  Learning and development  Coaching  Objectives and performance standards  Capabilities and competencies  Measurement  Pay  Teams  360 degree feedback  Performance problem solving

11. Performance Management Features Organisations (%) using this feature Organisations (%) using this feature & believe it effective Individual annual appraisal6583 Objective setting and review6282 Personal development plans6281 Career management and / or succession planning 3747 Coaching and / or mentoring3646 Competence assessment3139 Performance related pay3139 Self-appraisal3053 Twice yearly appraisal2738 360-degree appraisal1420 Continuous assessment1420 Subordinate feedback1117 Rolling appraisal1021 Based on Performance Management, CIPD Survey report Sept 2005

12. Who set the performance requirements? Evidence form the CIPD survey (2005) suggests that performance requirements are: Predominantly set by the Senior Manager, and / or Team leader Team leaders are slightly more likely to set the requirements in the public sector The Line Manager and Personnel set the requirements in less than 10% of the cases Based on Performance Management, CIPD Survey report Sept 2005

13. “The five key elements of the performance appraisal are: Measurement – assessing performance against agreed targets and objectives. Feedback – providing information to the individual on their performance and progress. Positive reinforcement – emphasising what has been done well and making only constructive criticism about what might be improved. Exchange of views – a frank exchange of views about what has happened, how appraisees can improve their performance, the support they need from their managers to achieve this and their aspirations for their future career. Agreement – jointly coming to an understanding by all parties about what needs to be done to improve performance generally and overcome any issues raised in the course of the discussion”. Performance Appraisal – Feb 2009 CIPD How to conduct a performance appraisal CIPD (2011)

14.  Manager’s views ◦ add own perspective ◦ add perspectives other stakeholders ◦ discuss differences  Joint Problem Solving ◦ discuss how differences can be resolved ◦ discuss development needs  Goal Setting ◦ agree performance indicators ◦ agree action plan Cornelius, N (1999)

15. Descriptions of performance management Performance management is an integral part of the people management strategy Performance management is an integrated part of the employee-line manager relationship Performance management integrates the goals of individuals with those of the organisation Performance management is integrated with other people management processes Performance management motivated individuals Line managers own and operate the erformance management process Based on Performance Management, CIPD Survey report Sept 2005

16. Benefits of Rating ◦ ratings are needed for PRP schemes ◦ summarises judgement ◦ allows comparison ◦ lets individuals know their position ◦ can be motivating

17.  Disadvantages of rating ◦ oversimplifies a complex issue ◦ consistency between raters is difficult ◦ ratings are subjective ◦ can be subject to bias ◦ detracts from open discussion ◦ development overshadowed by rating ◦ can be demotivating Armstrong, and Baron (2003)

18. Criteria used to measure performance Criteria (%) Respondents considering important or very important Achievement of objectives94% Competence93% Quality91% Contribution to the team91% Working relationships88% Customer Care85% Productivity83% Flexibility78% Aligning personal objectives with organisational goals 77% Skills / learning targets75% Based on Performance Management, CIPD Survey report Sept 2005

19.  S = Specific/stretching (clear unambiguous, understandable, challenging)  M = measurable (quantity, quality, time, money)  A = achievable (challenging but within reach)  R = relevant (to organization/individual)  T = time-framed (completed within a time-scale)

20.  Highly effective - exceeds targets, performs proficiently beyond expectations  Effective - achieve agreed targets meets normal role expectations  Developing - stronger in some aspects, meets most objectives but further development is needed  Improvable - meets or almost meets standards but room for improvement in definable areas. Armstrong (1999)

21.  Measures should relate to results, not efforts  results must be within job holder’s control  measures should be objective and observable  data must be available for measurement

22.  Finance - income, value added, shareholder, rates of return, costs  Output - units produced/processed, throughput, new accounts  Impact - attainment of standard, changes in behaviour (internal/external customers), completion of work, innovation  Reaction - judgement by others, colleagues, internal/external customers  Time - speed of response/turnaround, backlog, delivery times

23.  Poor preparation  Prejudice  ‘Halo’ effect  ‘Horns’ effect  Reluctance to communicate  Poor record keeping  No follow-up or clear plan of action Cornelius (1999)

24.  Forced Distribution  Ranking  Training  Peer Review  Monitoring  Behaviourally Anchored Rating Scales (BARS)

25.  Performance management is an integrated management activity  Focus is on improvement and development  Performance should be linked to organisational gaols  Processes should be regularly reviewed  Performance management is a central line manager activity that should add value to organisational performance

26. Armstrong, M (1999) HRM Practice, Kogan Page Armstrong, M. (2006) A Handbook of HRM Practice, Kogan Page Armstrong, M and Baron A 2003 Managing Performance: Performance in Action, CIPD CIPD (2005) Performance Management, Survey report September 2005. CIPD CIPD (2011) Performance Appraisal Factsheet http://www.cipd.co.uk/hr-resources/factsheets/performance- appraisal.aspxhttp://www.cipd.co.uk/hr-resources/factsheets/performance- appraisal.aspx Accessed 27/7/11 Cornelius, N (1999) HRM A Managerial Perspective, International Thomson Business Press, London Parker, C and Stone, B (2003) Developing Management Skills for Leadership, FT Prentice-Hall: Harlow References

27. This resource was created by the University of Plymouth, Learning from WOeRk project. This project is funded by HEFCE as part of the HEA/JISC OER release programme.Learning from WOeRk This resource is licensed under the terms of the Attribution-Non-Commercial-Share Alike 2.0 UK: England & Wales license (http://creativecommons.org/licenses/by-nc-sa/2.0/uk/).http://creativecommons.org/licenses/by-nc-sa/2.0/uk/ The resource, where specified below, contains other 3 rd party materials under their own licenses. The licenses and attributions are outlined below: 1. Slide 5, diagram based on Armstrong, M. 2006, HRM Management Practice, Kogan Page` The name of the University of Plymouth and its logos are unregistered trade marks of the University. The University reserves all rights to these items beyond their inclusion in these CC resources. The JISC logo, the and the logo of the Higher Education Academy are licensed under the terms of the Creative Commons Attribution -non- commercial-No Derivative Works 2.0 UK England & Wales license. All reproductions must comply with the terms of that license. Author Dr. Hilary Duckett InstituteUniversity of Plymouth Title Leading through Performance Management Description Presentation Date Created 18 th November 2010 Educational Level 6 Keywords UKOER, LFWOER, UOPCPDLM, Continuous Professional Development, CPD, Work-based Learning, WBL, Leadership, Performance Management Back page originally developed by the OER phase 1 C-Change project ©University of Plymouth, 2010, some rights reserved