1. International Personnel Management Association Making 360 Degree Evaluations Work October 17, 2000 Jim Fox Charles Klein

2. Why do performance appraisals ? To provide specific feedback on employee performance To foster communication between the employee and supervisor To provide a record of performance for future employment decisions To identify special talents and skills To assist in employee development To link performance to pay

3. Steps in the Process Employee drafts goals/standards for the coming year. Employee and supervisor agree to standards and goals for the year. Goals are reassessed and modified at mid-year.

4. Steps in the Process Supervisor obtains input on performance from multiple sources) Supervisor summarizes performance and provides comments on form.

5. Steps in the Process Supervisor and employee meet to discuss performance and to set new goals for the coming year. Supervisor and employee sign and date the form. Supervisor determines pay adjustments and/or performance bonus

6. Employee and Supervisor agree on performance goals. Employee and Supervisor meet to assess progress toward goals. Supervisors complete the rating form based on feedback received. Employee and Supervisor meet to discuss evaluation. Employee and Supervisor meet to establish goals for the next year. Performance Appraisal Process

7. Performance Goals Should Be: S pecific M easurable A ttainable R ealistic T ime-Oriented

8. Categories of Goals Individual Goals Work Unit Goals Organizational Goals

9. Individual Goals Focus on achievements of the individual employee Are meaningful to achievement of organizational success Relate to work being performed

10. Work Unit Goals Focus on employee contribution to achievement of the work units defined goals and objectives Treat all employees within the work unit equally Achievement makes contribution toward organizational goals

11. Organizational Goals Relate to achievement of organizational goals, objectives, and mission All employees within the organization are affected Focus on the organization and the employees role in achieving the organizational mission

12. The Employees’ Role Actively look for ways to measure their own performance on the job Propose ideas to their supervisor when requested Keep an open mind when discussing their goals with their supervisor Provide realistic and accurate input at the end of the rating period

13. The Supervisor’s Role Set attainable and realistic goals with employees Challenge employees to increase effort or performance through challenging goals Clarify their expectations for employee performance Monitor employee performance and provide feedback to aid in staff development

14. Developing a Successful Program Clarify policy maker’s goals and objectives Assess current organizational climate Conduct position analysis Create design team(s) and establish job standards Determine data collection requirements Train managers, supervisors and employees

15. Clarify Policy Maker Goals To Identify Policy Maker Issues and Concerns –Assess commitment to pay for performance –Verify sponsorship of initiative –Define expectations

16. Assess Organizational Climate Assess Employee Perceptions –Identify concerns –Discuss individual vs. group performance issues –Discuss 360 degree evaluation –Identify barriers to effective implementation

17. Conduct Position Analysis Distribute Position Description Questionnaires Verify position allocation to existing job classification or recommend reallocation to different job classification

18. Design Teams Experts in each occupational group provide direction regarding performance criteria and standards –Determine performance criteria –Determine performance standards –Determine sources of data –Determine training needs Employee driven, not manager driven

19. Develop Forms and Procedures Prepare Draft Forms and Procedures Review and Comment Finalize Forms and Procedures

20. Determine Data Requirements Define data needed to measure performance Determine what data is available through existing systems Identify potential data sources Assess and evaluate available software packages

21. Conduct Training Manager and Supervisor Training Employee Training Additional Training –Continually and as necessary

22. The Bottom Line Strategically focused Job related Consistent with organizational needs Consistent with employee needs

23. The City of Bismarck, ND Capitol of North Dakota Approximately 55,000 population A center for energy production, medical service and agriculture Low crime rate Outstanding educational system Commission form of government

24. Why We Did This Old system had fallen into disuse Poor communications between supervisors and employees The employees were asking for something different Move to a more objective approach with goals and outcomes Change the culture from entitlement to participation Influence salary adjustments

25. Goals for New System Tailor evaluations to each individual’s level of responsibility by linking performance appraisal to the employee’s job description Weight evaluations to level of difficulty of the work Give impetus for employees to learn and develop new skills Give stakeholders more input into performance management Encourage more participation in delivery of city services Shift limited resources to more productive employees

26. Our Process Conducted classification and compensation study Began the development of a performance based pay system Did not have a particular model in mind Engaged Fox Lawson & Associates to assist

27. Our Process Updated and clarified all job descriptions Updated compensation plan and set target to achieve the average of the market –Originally City pay levels averaged about 15% below the market –8 years later, we are at the market Implemented new salary ranges and pay program

28. Our Process Met with employee groups to understand their issues and concerns –Pay and performance linkage –Skill based –Feedback from other besides the supervisor Designed process and procedures –Skill based –Feedback from other employees and supervisor –Input on self

29. Our Process Skill Based –Each task was weighted by the level of difficulty on a scale of 1 to 3 –Supervisor did the weighting 360 Feedback Weighting –Self input weighted 25% –Peers input weighted 25% –Supervisor weighted 50% Each task on the job description was evaluated on a 5 point scale

30. Our Scales 1 = unacceptable 2 = sometimes meeting expectations 3 = expected performance 4 = sometimes exceeding expectations 5 = exceeds expectations-mentors others

31. Our Process The formula for arriving at the performance score –Skill weighting (1,2 or 3) times the performance score (1,2,3,4 or 5) equals the performance score –The supervisor ‘s evaluation score was multiplied by.5 –The employee’s evaluation score was multiplied by.25 –The peers’ evaluation score was multiplied by.25 Total scores were added to arrive at a total evaluation score

32. Our Process Total scores were divided by the total possible performance score to arrive at a percentage of maximum performance Performance percentage tied to pay matrix

33. Example

34. Final Score = 23.25 Total maximum score = 30 Performance score = 77.5% Performance is slightly above average

35. Our Process Set up an automated system for evaluation form, calculations, etc. Trained every employeeSupervisors-1 dayStaff-1/2 day Retrain, retrain, and retrain as needed All evaluations due on 10/1 Use software to set individual salary considering position in range and evaluation score Evaluate process and start over

36. Our Results Well received System is more objective and gives employees an opportunity to do better Peer evaluations tend to be the most generous with supervisor’s evaluations falling towards the middle Evaluations take less time than originally anticipated Job descriptions are updated as necessary More participation on the part of all employees in the delivery of services Employees are seeing the results of good performance

37. Our Results Now moving to peer group evaluations Peers meet to discuss employees performance and what is needed to improve performance Focus is on improvements and skill enhancements Employees are now being mentored Positive mentoring and cultural change Reduction in entitlement behavior- participation

38. Our Results The word is out about the City’s improved work environment We are receiving better applicants Dead weight don’t last long Our pay is now competitive with the market Our managers are asking for more “bite” in the pay matrix Fewer complaints among employees

39. Lessons Learned Go slow, but be deliberative Get full board/commission support Train, retrain, and retrain again Show the staff that this is their system, not HR’s Be prepared to be challenged Computerize wherever you can Always be fair in the application of the system