1. 1 MGMT-E400 M. Naddaff Performance Management and Rewards Class 3 September 17, 2009

2. 2 MGMT-E400 M. Naddaff TALENT MANAGEMENT What is it? Sourcing Attracting Recruiting On-boarding Developing Coaching Assessing/evaluating Performance managing Retaining Rewarding Deploying Succession Planning Workforce planning/forecasting

3. 3 MGMT-E400 M. Naddaff AN INTEGRATED TALENT MANAGEMENT SYSTEM Talent Management Workforce Planning Forecasting oftalent needsand demandAssessment ofcurrentworkforceGap analysis Recruitment College recruitment Experienced hires Internal- external On-boarding Professional Development Experience based Relationship Based Feedback based Education & training based Leadership/ High Potential Development Stretch/special assignments Executive coaching Cross-functional & international opportunities Education/ training Performance Management Goal alignment Competency profiles IDPs Feedback/ measurement Reward/ recognition programs Culture Corporate values Flexible workplace Diversity programs Internal communications Human Capital Requirements Business Unit Goals Organizational Strategies Retention Specific efforts Total rewards

4. 4 MGMT-E400 M. Naddaff Field Research What did you find out? What are the components? What is required? Is any aspect Optional? What is the timing? Is compensation tied to performance? Does everyone follow the same process and use the same form?

5. 5 MGMT-E400 M. Naddaff In Your Experience What are the strengths – what is effective and why? What are the weaknesses – what is not effective and why?

6. 6 MGMT-E400 M. Naddaff What is Performance? Results (What work gets done? How does the work get done?) Responsibility Accountability (Who’s doing what, and how?) (What if the work does/ doesn’t get done?)

7. 7 MGMT-E400 M. Naddaff PERFORMANCE MANAGEMENT

8. 8 MGMT-E400 M. Naddaff Planning

9. 9 MGMT-E400 M. Naddaff Components of Planning Up-to-date Job Description Work Goals Development Goals Related Competencies

10. 10 MGMT-E400 M. Naddaff Planning: Work Goals Provide a roadmap to achieve success Set clear expectations of results What is to be achieved Dynamic in nature, not static Aligned with the organization goals and values

11. 11 MGMT-E400 M. Naddaff Organization Goals/Values Department Goals/Values Manager/Team Goals/Competencies Employee Goals/Competencies Planning Strategic Alignment

12. 12 MGMT-E400 M. Naddaff “SMART” Principles S– Specific and Stretch M – Measurable A – Aligned R – Realistic T – Time-bound

13. 13 MGMT-E400 M. Naddaff Work Goal: Example Before: Increase number of prospect visits. After: Complete140 prospect visits (increase of 10%), by: Conducting 35 visits per quarter Spending the equivalent of 1 week per month on the road Keeping expenses level by clustering visits geographically and planning in advance for lower fares.

14. 14 MGMT-E400 M. Naddaff How is it SMART? Specific: Number to complete, % increase, whom to visit Measurable: 140 visits, 35 per quarter; traveling equivalent of 1 wk/mo; expenses level Time Bound: Deadlines for goal established The goal is also: Aligned: Prospect visits are a core function and priority of the department Realistic: Reasonable goal given other priorities and workload

15. 15 MGMT-E400 M. Naddaff Development Goals Articulate Development Needs –Focus on current and near-future position and department needs (aligned with performance goals) –Use “SMART” principles for development goals

16. 16 MGMT-E400 M. Naddaff Development Goals Some examples: Training - On-the-job training, Job shadowing, On- line learning Reading/studying/research Working with someone with the skill Developing a mentor relationship Attending a conference Cross team projects Important: What is the person going to do with the knowledge/skills; what is the impact?

17. 17 MGMT-E400 M. Naddaff Feedback and Coaching

18. 18 MGMT-E400 M. Naddaff Feedback What is “ Feedback ” ? Feedback is giving your reaction to one’s work and behaviors with the goal: Positive: reinforce preferred behaviors Constructive: change/improve behavior

19. 19 MGMT-E400 M. Naddaff Behavior + Impact Example Positive In addition to saying “That was a great job.” Say… Behavior: John, you did a great job on Project XYZ. You tuned in to the client’s needs, and made sure that everyone understood the project’s goals and objectives before the project started… Impact:…Your project team stayed on the same page, and resolved issues quickly and responsively – which contributed to your ability to complete the project on time and within-budget.

20. 20 MGMT-E400 M. Naddaff Behavior + Impact (with Alternative Behavior) Example Constructive Instead of saying “That’s not the right way to do that.” Try… Behavior: Victoria, as you know, we recently changed our procedures. I noticed that you continue to work the old way, and that’s inconsistent with what is expected now. Impact: This hinders the department’s ability to get our work done on time, which means that we’re behind in meeting our goal, and the rest of the department has to pick up the slack. Let’s talk about what’s going on. Alternative Behavior: Moving forward, please follow the new procedures.

21. 21 MGMT-E400 M. Naddaff Performance Coaching What is “ Coaching ” ? An ongoing conversation between a manager and a staff member, which focuses on using and improving an individual ’ s skills, knowledge, and ability to achieve goals.

22. 22 MGMT-E400 M. Naddaff Coaching: Open-ended Questions Examples What did you do well? What would you do differently the next time? What was your biggest success with the project? How did you prepare for that meeting? What are the most difficult problems that you are facing so far? What are some ways to overcome them? Where do you get the most satisfaction? How could you bring those elements into other areas of your job? Always ask, How can I support you as your manager?

23. 23 MGMT-E400 M. Naddaff Evaluation (Assessment)

24. 24 MGMT-E400 M. Naddaff Assessment Principles Build on conversations to date Hold no surprises Provide specific and behaviorally focused feedback Represent entire performance period

25. 25 MGMT-E400 M. Naddaff Assessment Steps Gather Information Write Assessment Prepare for Review Meeting

26. 26 MGMT-E400 M. Naddaff Assessment: Gather Information and Document Information Gathering: –Gather information from a variety of sources: direct observation, peers, clients, team members, faculty, other staff Documentation should be: –Consistent with situation –Accompanied (or preceded) by verbal feedback Track Progress throughout the performance period

27. 27 MGMT-E400 M. Naddaff Perception Distortions That Can Impact Assessment Halo/Horn Effect Similar to Me Contrast Effect Self-Fulfilling Prophecy Recency Effect Strictness Tendency Positive Tendency Central Tendency Past Performance Effect

28. 28 MGMT-E400 M. Naddaff Rewards

29. 29 MGMT-E400 M. Naddaff Compensation and Rewards Pay as an extrinsic reward. – Can help organizations attract and retain highly capable employees, and help satisfy and motivate these employees. – High levels of job performance must be viewed as the path through which high pay can be achieved.

30. 30 MGMT-E400 M. Naddaff Creative Pay Practices Skill-based pay Rewards people for acquiring and developing job- relevant skills Lump-sum pay increases Provide wage or salary increase in one or more lump- sum payments. Employee stock ownership plans (ESOPs) Give company stock to employees or allow them to purchase it at a price below market value Profit-sharing plans Reward employees based on the entire organization’s performance

31. 31 MGMT-E400 M. Naddaff Rewards What are some effective non- financial rewards?

32. 32 MGMT-E400 M. Naddaff Alternative work arrangements Compressed work weeks: Any scheduling of work that allows a full- time job to be completed in fewer than the standard five days. Flexible working hours: Gives individuals a daily choice in the timing of their work commitments. Job sharing: One full-time job is assigned to two or more persons who divide the work according to agreed-upon hours. Telecommuting: Work done at home or in a remote location via use of computers and advanced communication linkages with a central office or other employment locations. Advantages? Disadvantages? (for the employee and the organization)

33. 33 MGMT-E400 M. Naddaff PERFORMANCE MANAGEMENT

34. 34 MGMT-E400 M. Naddaff Sample Journal Questions When have you used coaching effectively? What was the situation? What was the outcome? Who should you be coaching now, and how are you going to apply coaching principles discussed today? Who do you need to give feedback to (positive or constructive)? How will you use the B+I formula to give that feedback? (After conversation) How did it go? How do you make your performance management system part of everyday work life? What rewards are important to you? Are you getting them? What is the impact of getting them or not? What will you do about it? What rewards are important to your direct reports? Are they getting them? What is the impact of getting them or not? What will you do about it?

35. 35 MGMT-E400 M. Naddaff Assignment Personal Learning and Application Paper #1 –Due Week 4, September 24, 2009 3-4 pages, 12 font, 1.5 space, 1” margins –Post to drop box by 5:30p on 9/24/09 –Synthesize journal entries to this point: What are you learning about yourself through each of the topics? What approaches and behaviors have you utilized in the past? What are your related strengths and areas for improvement? How are you integrating this knowledge into your current approaches and behaviors? How is this impacting your effectiveness?