Grote, Chapter 2. Bryant A. Bush Karol N. Cifuentes

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1 Grote, Chapter 2 Bryant A. Bush Karol N. Cifuentes

2 Performance appraisal is a process that involves many events. These events usually happen in a predictable and sequential fashion. There is a significant agreement that there is an ideal performance appraisal cycle that, if followed, will generally produce superior results. An organization s performance management system begins with the development of organizational strategy. The organization as a whole has to define its goals to allow the creation of goals for organizational units and individual performance objectives. Management by objectives (MBO) is the core philosophy behind most effective performance appraisal systems.

3 The ideal performance appraisal cycle is a 5-phase process, that begins after the organization establishes its corporate strategy and overall direction. Phase 1- Performance Planning Phase 5 Performance Renewal & Recontracting Phase 2 Performance Execution Phase 4 Performance Review Phase 3 Performance Assessment

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5 When the organization's mission and overall objectives are clear, the performance planning phase can begin. Performance planning involves completing 2 critical tasks: 1. Establishing measurable objectives for the results or outcomes that the individual s efforts will produce (the what of the job). 2. Analyzing the way in which the individual will go about achieving those results or attaining the goals (the how of the job). Performance planning involves establishing accountabilities, objectives, competencies and developmental goals.

6 Performance execution (performance management) begins when the individual knows: The results he will be expected to produce The standards against which his production will be measured. The important skills/competences the organization expects him to demonstrate The activities of the individual and the manager in concert constitute the performance management process. The Individual s Responsibility for Performance Management The individual and not the manager is the primary responsible for managing performance.

7 5 main activities involved in the management of personal performance in an organization: 1. Committing to goal achievement Performance begins with goals that the individual actively commits to bring about. Tasks accomplished are inputs. Goals achieved are outputs. The more that goals are clear, worthwhile, and challenging, the greater the chance is that the performer will be motivated to achieve them 2. Soliciting performance feedback and coaching The manager is responsible for providing performance feedback and coaching. The individual is responsible for actively soliciting feedback and making use of the data to improve performance.

8 3. Communicating openly and regularly with the manager The manager is responsible for providing ongoing feedback and for revising work expectations during the course of the appraisal period. The subordinate is responsible for communicating regularly with his supervisor. 4. Collecting and sharing performance data The individual needs to advise the manager of the current status of the objectives that were set at the beginning of the appraisal period. 5. Preparing for performance reviews The individual is not a passive subject in the performance reviews. The subordinate has to be prepared to participate in the performance appraisal meeting.

9 The Manager s responsibility for Performance Management 1. Create conditions that generate subordinate motivation. 2. Observe and document performance 3. Update and revise initial objectives, performance standards, and job competency areas as conditions change. 4. Provide performance feedback/coaching as problems or opportunities arise. 5. Provide developmental experiences 6. Reinforce effective behavior and progress towards goals The easiest and most effective way to find out what is motivating is to ask the employee/subordinate. Also ask what demotivates them or when the last time they were demotivated for ideas of what to avoid. MONEY- Motivation or Demotivation? Both

10 The author suggests manager document in notebook or slips of paper events throughout the year that the manager observes day to day. Some events will be positive and others negative. These informal logs/notes should be left with enough detail so they can be referred to later and be understood. They will be referred to at performance appraisal and possibly in subsequent years by individual or superiors. Keeping these makes performance appraisal easier and more straight forward as most of the work will have been completed incrementally and this is a more accurate representation of the subordinate.

11 The informal documented performance can be used immediately and coaching and mentoring can be given throughout the year and not just at the end at the appraisal. Feedback- without a clearly defined goal and path, feedback can not be given. If it is given, then it is not feedback but more of an opinion. Coach for improved performance Update- Objectives change and objectives are met. Performance appraisal is an ongoing process make changes when necessary

12 Success- When coaching after a success, be specific about what you as the supervisor liked or what was successful. Coach before an event. This can be more effective preparing the subordinate for success before entering the meeting than critiquing or debriefing afterwards.

13 On the job development is crucial. Research shows that there are competencies that can not be gained any other way than from direct experience. Supervisors/managers must provide developmental experiences and develop subordinates in real, live, events. Ex. A difficult or angry customer. This can be simulated in training but to become proficient with dealing with this scenario and really be effective the individual must deal with upset customers in a real/live situation. The most effective tool can be reinforcement of desired performance. Often this is forgotten in the process.

14 Finally complete the formal performance appraisal at end of period. Renew and recontract for next period