1. Performance Management
August 2016

2. Introduction
Performance management is the management of employees, departments and organizations for the purpose of ensuring that goals and objectives are being reached efficiently and effectively. It involves defining what effective performance looks like and includes the development and use of tools and procedures necessary to measure performance. A successful performance management program helps an employer retain talented employees, keep them engaged, enhance employee learning, build a winning corporate culture and be a successful company. This presentation provides you with information on our performance management program. It will help you improve your management skills and your employees’ performance.
Note to Presenter: This sample presentation is intended to be presented to supervisors and other individuals who manage employees. It is designed to be presented by an individual who is knowledgeable about performance management. This is a sample presentation that must be customized to include and match the employer’s own policies and practices.

3. Agenda Performance appraisal versus performance management
Performance management continuum
Planning for appraisals
Developing ongoing performance communication
Setting goals and objectives
Ratings
Rating perils

4. Performance Appraisal versus Performance Management
Appraisal Management One-time event Ongoing Retrospective Prospective Short term Long term Correction-oriented Progress steps Completing form Planning/goal-setting

5. Performance Management Continuum
Goal Setting
& Planning
Performance
Planning
Review
Management

6. Questions? Comments?

7. Planning for Appraisals
Plan in advance: self appraisals should be completed two weeks prior to managerial review. Plan for open dialogue: opportunity to review performance, consider lessons learned, evaluate progress, and establish goals and objectives for next period. Lay out plan for performance discussions: collect and review notes, statistics, citations and performance-based examples. Schedule sufficient time to focus on the review.

8. Planning for Appraisals (cont.)
Prepare to discuss the full range of issues that may arise in the performance management discussion. Don’t exhibit defensiveness; if employee criticism is justified due to management failure or lack of resources, accept it and move on to next area of review. Respect confidentiality of the review discussion when possible. If unlimited confidentiality cannot be promised, advise employee accordingly. No cell phones, no s, no text messaging, no electronic devices, no interruptions

9. Planning for Appraisals (cont.)
Job descriptions should be reviewed along with performance management. Handle dissent professionally; disagreements should be noted as a matter of record.

10. Planning for Appraisals (cont.)
Difficult Appraisals:
Describe unsatisfactory performance/behavior.
Cite specific observed examples: past incidents, inability to meet goals, impact on employee, team, customers, department, etc.
Solicit a constructive employee action plan to resolve or ameliorate the performance failures or behavioral issues.
Review action plan and establish milestone date(s) to review progress.

11. Questions? Comments?

12. Developing Ongoing Performance Communication
Recognize performance management is a continuing process to assist everyone in enhancing performance and development. Establish milestone dates for periodic monitoring of performance objectives and progress reports in objective terms. Be aware that goals or objectives may need to be changed or retargeted during the review period.

13. Developing Ongoing Performance Communication (cont.)
Maintain open communication channels to ensure that issues are elevated quickly and resolved expeditiously. Coach, assist and/or redirect employees who request assistance and those who are failing to meet standards.

14. Questions? Comments?

15. Setting Goals and Objectives
Define and establish specific goals and objectives for the review period. Create mutually agreed timelines for progress reports on goals and objectives. Communicate changes or redirection of goals and objectives in a timely manner.

16. Setting Goals and Objectives (cont.)
Use SMART goal criteria:
Specific
Measurable
Achievable
Relevant
Time-centered

17. Setting Goals and Objectives (cont.)
Align goals and objectives with the organization’s business plan. Establish mutually agreed-upon goals between employee and manager. Recommend and recognize behaviors that are aligned with organizational business plans. Establish milestone review dates.

18. Questions? Comments?

19. Ratings Excellent Good Acceptable Unsatisfactory
Note to Presenter: Customize the ratings and their definitions for your company.

20. Ratings (cont.) Excellent: Consistently exceeds performance standards
Continuously contributes to the organization’s success by adding significant value
Demonstrates a comprehensive understanding of work; takes action to identify needs and solve problems

21. Ratings (cont.) Good: Meets performance standards
Competently performs all aspects of job functions and meets goals
Capably adjusts to changing workplace needs and work requirements

22. Ratings (cont.) Acceptable:
Generally meets expectations of the position
Competently performs aspects of the job function or goal
May require performance improvement plan (PIP) to concentrate on areas of weakness
May require additional resources or training to move above rating

23. Ratings (cont.) Unsatisfactory:
Fails to perform most aspects of the position
Performance levels are below expectations
Requires close guidance in performing routine job duties
Requires PIP, with progress review dates, to address areas of weakness

24. Questions? Comments?

25. Rating Perils
Halo effect: the individual’s performance is completely appraised on the basis of a perceived positive quality, feature or trait Horn effect: the individual’s performance is completely appraised on the basis of a perceived negative quality or feature Central tendency: lack of rating differentiation between employees Leniency: avoidance of honest ratings to avoid conflict Recency: narrow focus on recent events Similarity/”like me”: favorable rating to employees who have similar values or interests to the rater Constancy: rating employees via rank order

26. Rating Perils (cont.) Ways to avoid rating perils:
Make objective statements
Consider the totality of the employee’s performance
Make and keep adequate records with specific examples
Establish milestones for progress reviews

27. Rating Perils (cont.) Ways to avoid rating perils:
Discuss specific performance issues and behaviors objectively
Consider possible legal impact of inflated performance ratings
Maintain clear and open communication channels
Avoid specific comments or connotations that are connected to age, race, sex, religion, national origin, veteran status or a specific disability.

28. Questions? Comments?

29. Summary
Performance appraisal and performance management differ in form and frequency of occurrence. It is important to plan for performance appraisals and establish an appropriate environment for them. Develop ongoing performance communication by recognizing performance management is a continuing process. Define and establish specific goals and objectives for the review period. Use SMART goals. Ratings perils should be avoided.

30. Questions? Comments?

31. Training Evaluation
Please be sure to complete and leave the training evaluation included in the handouts.
Thank you for your interest and attention!