1. Performance Management
Presented by
Cheryl Lea Reed
Department Head HR Operations
GuideStone Financial Resources
April 24, 2014

2. Agenda
Introductions
Performance Management vs. Performance Appraisal/Review
Performance Planning
Performance Appraisals/Rating
Performance Review Meeting
Performance Goal Setting
Appraisal Forms
The Performance Management Method

3. Introduction HR professional for over 25 years
SPHR Senior Professional in Human Resources designation from SHRM/HRCI
HR manager/leader for 20+ years
GBA Group Benefits Associate from ISCEBS
Undergraduate and Masters Business Degrees in Management from Dallas Baptist University
Multi-year volunteer for The HRSouthwest Conference, most recent role of Bookstore Director

4. Performance Management vs. Performance Appraisal

5. A Matter of Perspectives
Performance management
Ongoing
Prospective
Long term
Progress steps
Planning/goal setting
Performance appraisal
One-time event
Retrospective
Short term
Correction oriented
Completing the form
So many people have a tendency to focus only on the annual performance appraisal. However, effective performance management is long range and continual.

6. Performance Management Continuum
Review
Planning
Goal Setting
& Planning
As you can see, the performance review or appraisal is only one part of the performance management continuum. Performance management involves the performance appraisal, goal setting and performance planning. We will touch on all three of these areas today as they are all inter-related.

7. Performance Planning

8. Performance Planning
The key idea is to work to develop your employees and create an environment where each employee can be their best.
You want to clearly define the most important outcomes needed from each staff position within the framework of your organization's strategic plan.
The performance appraisal is a logical extension of the process which allows the supervisor and employee to appraise and discuss the accomplishment of certain standards and goals.
Performance planning is the first branch of effective performance management.

9. Performance Planning
Allows the supervisor and employee to improve communication and plan for higher levels of output from the employee, unit or department.
Helps remove potential roadblocks to high performance for you and your employees.
Meet frequently with employees to review their progress and plan together on a path for achievement.

10. Performance Planning Keep the job description up to date!
Identify the:
Core responsibilities of the position.
Special projects suited to the position.
Performance measures needed to indicate required achievement levels during and at the end of the performance cycle.
Ensure that employees have the tools, resources and training and development needed to carry out their responsibilities successfully.

11. Performance Appraisal/Review

12. Performance Appraisals Provide the Employee:
Essential feedback from management.
An opportunity to discuss their performance with management.
Identification of employee training and development needs.
A basis for compensation decisions.
The goals for increased productivity and improved employee performance.
The second branch of an effective performance management system is the actual performance review. We will spend a significant time on this.

13. Performance Appraisals Provide the Employer:
The opportunity to build trusting and respectful relationships with employees.
Safeguards for the company and its employees from legal liability.
Establishment of goals and performance expectations.
Reinforcement of company values and culture.

14. Performance Appraisal Ratings

15. Rating Standards
Your performance management process should include a formal rating scale.
Most companies use a three- or five-tier rating scale.
Some use "words" or "numbers" and some use a combination of both.
The key is to be consistent and fair on whichever scale you use.
Your performance management process should include a scale used to rate your employee’s performance. Most companies use a 3 or 5 tier rating scale.

16. Rating Standards
At GuideStone, we use a five-tier scale with associated numerical scores:
Outstanding — 5
Highly Effective — 4
Competent — 3
Needs Improvement — 2
Unacceptable — 1

17. Rating Description and Criteria
Outstanding — Performance is outstanding and exceptional. Represents outstanding performance that is obvious to all.
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

18. Rating Description and Criteria
Highly Effective — Performance clearly and consistently exceeds the competent level; represents performance that is noticeably better than most.
Meets or exceeds all performance standards
Effectively performs all aspects of job functions and meets goals
Capably adjusts to changing workplace needs and work requirements

19. Rating Description and Criteria
Competent — Performance meets expectations and is consistently good; represents good, solid, reliable performance.
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

20. Rating Description and Criteria
Needs Improvement — Performance has fallen below the competent level, or this rating may apply to an employee when the need for further development is evident; represents performance requiring improvement in some areas.
Does not adequately perform most job aspects
Performance levels are below expectations
Requires guidance in performing routine job duties
Requires PIP to address areas of weakness with progress review dates

21. Rating Description and Criteria
Unacceptable — Performance is unacceptable and there are consistent weaknesses in key areas; represents performance that requires immediate improvement in many areas.
Fails to perform most aspects of the position
Performance levels are below expectations and hurting overall performance
Requires constant guidance in performing routine job duties
Requires PIP and training to address areas of weakness with progress review dates

22. Rating Perils
Halo/horn effect — rate employees the same on every trait
Central tendency — lack of rating differentiation between employees
Leniency — avoids 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 — rate employees via rank order
There are several traits that all humans may tend to unconsciously do when it comes to rating or scoring the performance of other people. It’s important to recognize this about yourself and consciously strive to avoid the perils.
Recency is probably the most common we see, as we all tend to remember those things that have happened recently and forget what might have happened 11 months ago!

23. Avoiding Other Perils Make objective statements.
Consider the totality of the employee’s performance.
Avoid inadequate record keeping — lack of specific examples.
Establish milestones for progress reviews.
Discuss specific performance issues and behaviors objectively.

24. Avoiding Other Perils
Consider legal impact of inflated performance ratings.
Maintain clear and open communication channels.
Specific comments should avoid any connotations which are connected to: age, race, sex, religion, national origin, veteran or a specific disability.
Discrimination related to age, race, sex, religion, national origin, veteran status or disability is totally against the law and can create a huge business risk to your company. All managers should go through “management” training as related to employment laws at least once every 3 years.

25. Ways to Legally Discriminate
Discriminate on the basis of:
Poor performance
Excessive or unexcused absenteeism
Tardiness
Violating policies or rules
Not meeting job qualifications
Poor work references
Incompetence
Poor work relationships
Misconduct
However, there are ways to “legally” discriminate!

26. Performance Review Meeting Creating the “Right” Environment

27. Planning the Review Meeting
Advance planning:
Employee’s self appraisals should be completed two weeks prior to managerial review.
This allows employees to provide feedback to their manager.
Be sure to gather all needed documentation.
Plan for open dialogue:
This is an opportunity to review performance, consider lessons learned, progress for the period and to establish goals and objectives for next period.

28. Planning the Review Meeting
Lay out a plan for performance discussions.
Collect and review notes, statistics, citations and performance based examples.
Schedule sufficient time to focus on the review.
Job description/addendums should tie together with performance review.
Prepare to discuss the full range of issues which may arise in the performance review discussion.

29. The Review Meeting Be prepared and set the right tone.
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!

30. The Review Meeting
Handle dissent professionally — disagreements should be noted as a matter of record.
Don’t exhibit defensiveness — if employee criticism is justified due to management failure or lack of resources, accept and move on to next area of review.

31. The Difficult Review Meeting
Difficult evaluations:
Describe unsatisfactory performance/behavior
Cite specific observed examples:
Past incidents
Lack of meeting goals
Impact on employee, team, customer, department, et al.

32. The Difficult Review Meeting
Solicit a constructive employee action plan to resolve or ameliorate the performance failures or behavioral issue.
Review action plan and establish milestone date(s) to review progress.
Try to end on a positive note.

33. Performance Goal Setting and Planning

34. Goal Setting Standards
Define and establish specific goals/objectives for the review period.
Create mutually agreed upon timelines of break-out data for progress reports on goals and objectives.
Communicate changes or redirection of goals and objectives in a timely manner.

35. Goal Setting Standards
Use SMART goal criteria:
S pecific
M easurable
A chievable
R elevant
T ime-bound

36. Goal Setting Standards
Align goals with the organization’s business plan.
Establish mutually agreed upon goals which add value to the business.
Recommend and recognize behaviors that are aligned with organizational business plans.
Establish milestone review dates.

37. Appraisal Forms

38. The Performance Management Method

39. The Performance Management Method
Establish expectations:
Policy and procedure expectations
Job performance expectations
Establish specific goals
Provide and document ongoing performance feedback:
Formal and informal coaching: “Great Job!!!”
Formal and informal counseling: “Need some improvement”

40. The Performance Management Method
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 of the potential for goals/objectives to be changed or re-targeted during the review period.
Take corrective action when necessary.

41. The Performance Management Method
Maintain open communication channels to ensure that issues are elevated quickly and resolved expeditiously.
Coach, assist and/or re-direct employees who request assistance and who are failing to meet standards.

42. Summary Performance Management includes: Performance PLANNING
Performance REVIEW
Performance GOALS
In conclusion, an effective performance management program includes performance planning, the performance review and goal setting. Doing one without the others may provide inadequate, incomplete or potentially discriminatory practices that can lead to inefficiencies.

43. Questions? Comments?
For additional questions, please don’t hesitate to contact me:
Cheryl Lea Reed, MAM, SPHR, GBA
Department Head HR Operations, Human Resources
GuideStone Financial Resources
office
cell
fax

44. Thank You!!!!!