1. PERFORMANCE MANAGEMENT: DEVELOPING TOP PERFORMERS Jacquelyn Garcia HRM 704-F1WW 8/4/2013 Dr. Robin Berenson

2. WHAT IS PERFORMANCE MANAGEMENT? “Performance Management is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization (Aguinis, 2013, p.2).”

3. WHY IS PERFORMANCE MANAGEMENT IMPORTANT?  Increased employee motivation  Increased communication between employee and management  Administrative actions are more fair and appropriate  Employees are better trained and more engaged  Better protection from lawsuits

4. DOCUMENTING PERFORMANCE

5. DOCUMENTING PERFORMANCE: APPRAISALS  What attributes are effective in a performance appraisal?  Simplicity  Relevancy  Descriptiveness  Adaptability  Comprehensiveness  Definitional Clarity  Communication  Time-Orientation

6. DOCUMENTING PERFORMANCE: WHO SHOULD PARTICIPATE?  Key Members of the employee’s work group should participate:  The Employee  The Manager  Peers  Customers

7. TRAIN THE RATER!  What should the rater be trained?  How to identify and rank job activities  How to observe, record, and measure performance  How to use the appraisal form  How to minimize rating errors  How to train, counsel, and coach

8. BIAS: HOW TO SPOT AND AVOID IT!  Most common bias: Leniency  Severity error  Central tendency error  Halo error  Primacy error  Recency error  Negativity error  First impression error  Spillover error  Stereotype error  Attribution error

9. THE PERFORMANCE REVIEW MEETING

10. INITIAL DISCUSSION  Can be initiated or completed through e-mail, telephone or by informal discussion  Discuss when the performance evaluation meeting will take place  Discuss what the expectations are

11. THE APPRAISAL FORM  Can also be addressed in the initial discussion  Can be initiated or completed by e-mail, telephone or informal meeting  Show the employee the appraisal form and discuss who will be participating in an appraisal  Instruct employee on how to complete the appraisal forms and expectations, including how long the employee will have to complete the forms  Answer any questions

12. PERFORMANCE REVIEW  Review each section and question addressed in the performance appraisal  For each question, discuss the employee’s self rating, the manager rating and any peer/customer ratings, discuss any discrepancies, move onto the next question.  Discuss any questions and allow employee to record any comments they might have concerning the review

13. COMPENSATION REVIEW  Can be combined with the performance review  Discuss any compensation changes that are a direct result of performance  WARNING : If combined with the performance review, employees may be less likely to effectively participate in review if they see that it is a “necessary evil” to get to pay increase.

14. PERSONAL DEVELOPMENT PLAN  Discuss the areas of strengths and weakness and identify areas the require improvement  Create and discuss an action plan to develop the employee and improve performance in those areas  Ensure that the training is time-specific and that the employee understands the direct impact that the development plan has on their career path

15. OBJECTIVE SETTING  Combine with Developmental Plan  Create SMART goals with the employee in order to accomplish improvement  Discuss how these goals will be addressed in the next meeting  Complete the review and discuss any final questions/comments

16. QUESTIONS?

17. REFERENCES  Aguinis, H. (2013). Performance management. (3rd ed). New Jersey: Pearson Education INC.