Implementing a Performance

Management System: Overview

 Preparation
 Communication Plan
 Appeals Process
 Training Programs
 Pilot Testing
 Ongoing Monitoring and
Evaluation
 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
Communication Plan answers:
 What is Performance
Management (PM)?
 How does PM fit in 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?
 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  Stereotype
 Halo  Negativity
 Primacy  Recency
 First  Spillover
Impression
 Attribution
 Contrast
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