1. Chapter 7 Implementing a Performance Management System
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2. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Overview
Preparation
Communication Plan
Appeals Process
Rater Training Programs
Pilot Testing
Ongoing Monitoring and Evaluation
Online Implementation
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Preparation
Need to gain system buy-in through:
Communication plan regarding performance management system
Including appeals process
Training programs for raters
Pilot testing system
Ongoing monitoring and evaluation to show benefits
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4. Communication Plan Answers:
What is Performance Management (PM)?
How does PM fit into our strategy?
What’s in it for me?
How does it work?
What are our roles and responsibilities?
How does PM relate to other initiatives?
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5. Cognitive Biases That Affect Communications Effectiveness
Selective exposure
Selective perception
Selective retention
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6. To Minimize Effects of Cognitive Biases:
A. Consider employees
Involve employees in system design
Show how employee needs are met
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7. To Minimize Effects of Cognitive Biases (Continued):
B. Emphasize the positive
Use credible communicators
Strike first—create positive attitude
Provide facts and consequences
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8. To Minimize Effects of Cognitive Biases (Continued):
C. Repeat, document, be consistent
Put it in writing
Use multiple channels of communication
Say it, and then say it again
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Appeals Process
Promote employee buy-in to PM system
Amicable/Nonretaliatory
Resolution of disagreements
Increases perception of the system’s fairness
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10. Appeals Process (continued)
Employees can question two types of issues:
Judgmental
Validity of evaluation
Administrative
Whether policies and procedures were followed
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11. Recommended Appeals Process
Level 1
HR reviews facts, policies, and procedures
HR reports to supervisor/employee
HR attempts to negotiate a settlement
Level 2
Arbitrator (panel of peers and managers) or
High-level manager—final decision
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12. Rater Training Programs
Content Areas to Include:
Information
Identifying, observing, recording, and evaluating
How to interact with employees
Choices of Training Programs to Implement
Rater Error Training
Frame of Reference Training
Behavioral Observation
Self-Leadership Training
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Content
A. Information—how the system works
Reasons for implementing the performance management system
Information
The appraisal form
System mechanics
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Content (continued)
B. Identifying, observing, recording, and evaluating performance
How to identify and rank job activities
How to observe, record, and measure performance
How to minimize rating errors
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Content (continued)
C. How to interact with employees when they receive performance information
How to conduct an appraisal interview
How to train, counsel, and coach
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16. Choices of Training Programs
Rater Error Training (RET)
Frame of Reference Training (FOR)
Behavioral Observation Training (BO)
Self-Leadership Training (SL)
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17. Rater Error Training (RET)
Goals of RET
Make raters aware of types of rating errors they are likely to make
Help raters minimize errors
Increase rating accuracy
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18. Intentional Rating Errors
Leniency (inflation)
Severity (deflation)
Central tendency
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19. Unintentional Rating Errors
Similar to Me
Halo
Primacy
First Impression
Contrast
Stereotype
Negativity
Recency
Spillover
Attribution
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20. Possible Solutions for Types of Rating Errors
Intentional
Focus on motivation
Demonstrate benefits of providing accurate ratings
Unintentional
Alert raters to different errors and their causes
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21. Frame of Reference Training (FOR)
Goal of FOR*
Raters develop common frame of reference
Observing performance
Evaluating performance
Expected results of FOR
Raters provide consistent, more accurate ratings
Raters help employees design effective development plans
*Most appropriate when PM appraisal system focuses on behaviors
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22. Behavioral Observation Training (BO)
Goals of BO
Minimize unintentional rating errors
Improve rater skills by focusing on how raters:
Observe performance
Store information about performance
Recall information about performance
Use information about performance
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23. Self-Leadership Training (SL)
Goals of SL
Improve rater’s confidence in ability to manage performance
Enhance mental processes
Increase self-efficacy
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Pilot Testing
Pilot testing is done before the system is implemented.
Provides ability to:
Discover potential problems
Fix them
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25. Pilot Testing—Benefits
Gain information from potential participants
Learn about difficulties/obstacles
Collect recommendations on how to improve system
Understand personal reactions
Get early buy-in from some participants
Get higher rate of acceptance
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26. Implementing a Pilot Test
Roll out test version with sample group
Staff and jobs generalizable to the organization
Fully implement planned system
All participants keep records of issues encountered
Do not record appraisal scores
Collect input from all participants
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27. Ongoing Monitoring and Evaluation
When system is implemented, decide:
How to evaluate system effectiveness
How to measure implementation
How to measure results
Evaluation data to collect:
Reactions to the system
Assessments of operational and technical requirements
Effectiveness of performance ratings
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28. Indicators to Consider
Number of individuals evaluated
Distribution of performance ratings
Quality of information
Quality of follow-up actions
Quality of performance discussion meetings
System satisfaction
Cost-benefit ratio or return on investment (ROI)
Unit-level and organization-level performance
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29. Online Implementation
Online tools to facilitate implementation s
Electronic newsletters
Web sites
Appeal filing
Training programs
Pop-up reminders
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30. Online Implementation—Advantages
Automation
Speed up processes
Lower cost
Gather and disseminate information faster and more effectively
System can be linked to other HR functions
Easier to monitor unit-level and organizational-level trends over time
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31. Online Implementation—Limitations
PM systems that are not implemented following best practices will not necessarily improve from the use of online components.
In fact, online implementation may create a more complicated system that is a big waste of time and resources for all involved.
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Quick Review
Preparation
Communication Plan
Appeals Process
Training Programs
Pilot Testing
Ongoing Monitoring and Evaluation
Online Implementation
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33. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
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Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall