Implementing a Performance Management System: Overview

Preparation Communication Plan Appeals Process Training Programs Pilot Testing Ongoing Monitoring and Evaluation

Preparation

Need to gain system buyin through:

Communication plan regarding Performance Management system

Including appeals process

Training programs for raters Pilot testing system

Ongoing monitoring and evaluation

Communication Plan answers:

What is Performance Management (PM)?

How does PM fit in our strategy?

Whats in it for me? How does it work? What are our roles and responsibilities? How does PM relate to other initiatives?

Cognitive Biases that affect communications effectiveness

Selective exposure Selective perception Selective retention

To minimize effects of cognitive biases: A. Consider employees:

Involve employees in system design Show how employee needs are met

To minimize effects of cognitive biases

(continued):

B. Emphasize the positive

Use credible communicators Strike first create positive attitude Provide facts and conclusions

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

Appeals Process

Promote Employee buy-in to PM system

Amicable/Non-retaliatory Resolution of disagreements

Appeals Process

Employees can question two types of issues:

Judgmental

(validity of evaluation)

Administrative

(whether policies and procedures were followed)

Appeals Process

Level 1
HR reviews facts, policies, procedures HR reports to supervisor/employee HR attempts to negotiate settlement

Level 2
Arbitrator (panel of peers and managers) and/or High-level manager final decision

Rater Training Programs

Content Areas to include

Information Identifying, Observing, Recording, Evaluating How to Interact with Employees

Choices of Training Programs to implement

Rater Error Training Frame of Reference Training Behavioral Observation Self-leadership Training

Content
A. Information - how the system works
Reasons for implementing the performance management system Information
the appraisal form system mechanics

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

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

Choices of Training Programs

Rater Error Training (RET) Frame of Reference Training (FOR) Behavioral Observation Training (BO) Self-leadership Training (SL)

Rater Error Training (RET)

Goals of Rater Error Training (RET)

Make raters aware of types of rating errors Help raters minimize errors Increase rating accuracy

Intentional rating errors

Leniency (inflation) Severity (deflation) Central tendency

Unintentional rating errors

Similar to Me Halo Primacy First Impression Contrast

Stereotype Negativity Recency Spillover Attribution

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

Frame of Reference Training (FOR)

Goal of FOR*
Raters develop common frame of reference
Observing performance Evaluating performance

*Most appropriate when PM appraisal system

focuses on behaviors

Expected Results of FOR

Raters provide consistent, more accurate ratings Raters help employees design effective development plans

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

Self-leadership Training (SL)

Goals of SL
Improve rater confidence in ability to manage performance Enhance mental processes Increase self-efficacy

Pilot Testing

Provides ability to
Discover potential problems Fix them

Pilot Testing - benefits

Gain information from potential participants Learn about difficulties/obstacles Collect recommendations on how to improve Understand personal reactions Get early buy-in Get higher rate of acceptance

Implementing a Pilot Test

Roll out test version with sample group

Staff and jobs generalizable to organization

Fully implement planned system

All participants keep records of issues encountered Do not record appraisal scores Collect input from all participants

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 requirements

Operational Technical

Effectiveness of performance ratings

Indicators to consider

Number of individuals evaluated Distribution of performance ratings Quality of information Quality of performance discussion meetings System satisfaction Cost/benefit ratio Unit-level and organization-level performance

Quick Review

Preparation Communication Plan Appeals Process Training Programs Pilot Testing Ongoing Monitoring and Evaluation