1. Discuss the rationale behind the implementation of a systematic performance appraisal system Age Discrimination in Employment Act - FAIRNESS

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1 Learning Objectives: 1. Discuss the rationale behind the implementation of a systematic performance appraisal system --Age Discrimination in Employment Act - FAIRNESS *This mostly deals with legal issues, especially in the event of an employee needing to be sacked. (Sacked means fired, I happen to like sacked more) --Ensures understanding of performance EXPECTATIONS by managers and staff --Voice concerns and make suggestions for system IMPROVEMENT --Provides a means for accurate and equitable distribution of organizational rewards --Supplies evidence to review organizational and systems problems --Identifies deficiencies in orientation and training programs --Assists in reducing operating costs --Avoids costly litigation --Establishes an environment conducive to self-motivation --Mitigates turnover - Reduces replacements cost 2. Distinguish between performance management and evaluation Short answer: Evaluations rely on information from the past to evaluate someone, whereas management moves forward and is ongoing *Management Ongoing process with Policies and procedures --Performance management is an ongoing process of communication between a manager and an employee in support of accomplishing strategic objectives --Performance Management includes -Establishing and clarifying expectations for an individual role -Linking an individual s work to larger organizational goals -Setting performance objectives -Providing feedback and coaching -Offering training/development to build capacity -Removing obstacles to ensure that objectives are achieved -Evaluating results -Ongoing Process >When performance management is equated with once a year formal evaluation, both the employee and manager feel intense pressure due to possible consequences or outcomes > When performance management is viewed as an ongoing process designed to support individual and organizational success, both the employee and the organization benefit *Evaluation --Research shows that most managers and employees are dissatisfied with their organization s performance evaluation system --The success or failure of performance management programs depends on: -Values and beliefs underlying them -Attitudes and skills of those participating in them --Evaluation vs Ongoing Performance Management -Name two of the strongest manager-influenced high performance strategies 1. Clarifying employee performance expectations 2. Providing fair and accurate feedback

2 >Most people want to do well; correct patterns before they become ingrained --A manager s actions enable performance while impacting employees attitudes and commitment to their job, team, managers, and organization 3. Compare several performance evaluation methods --An effective performance management process: -Should provide managers and employees with importance measurement information related to strategic alignment of the employee s outcomes with organizational goals -Allows employees to see themselves as key strategic contributors and helps establish accountability --Which formal evaluation tools yield the best results? -Evaluating traits -Evaluating behavior & results -Multi-tool performance communication and development -360-degree feedback -A no appraisals approach (this actually is used, but Dr. Lovett doesn t recommend it) 4. Explain the S.C.O.R.E. approach --Most effective performance management efforts share the following components, known as S.C.O.R.E.: --Strategic --Communication --Opportunity --Recognition --Engagement 5. Discuss the difficulties in implementing a performance appraisal system within a pharmacy organization --A pharmacy manager must carefully consider the advantages and drawbacks of each type of appraisal system --Summated rating scales, particularly derivations of BARS methods, are the best systems to employ --Ensure that the system is reliable and valid and is helping the organization to achieve its objectives *How often should one conduct a formal appraisal? --Semiannually or Quarterly (Annually is still used, but not preferred) --Monitoring the System -The effectiveness of the appraisal system itself should be monitored -Indicators - the quality of performance standards, effective use of appraisal results, tracking of the raters, and elimination of adverse impact

3 6. Discuss issues of validity and reliability within the context of evaluating a performance appraisal system (This relates back to the legal issues that have been discussed) Reliability = consistency, inferring that the system produces similar results in multiple iterations Validity= implies that the system is measuring what it purports to measure 7. Describe how to conduct a performance appraisal interview and how to handle disagreements that may arise during or subsequent to the interview --Because it is important to minimize adverse legal situations we must make sure when conducting a performance evaluation to use standard rankings as a way to quantify an employee's performance. Also ratings should be objective and not subjective. --ALWAYS DOCUMENT PERFORMANCE --This allows us to document more accurately an employee s performance, and stay out of legal trouble. --Albemarle Paper Co. Vs. Moody is a case where this wasn t done 8. Discuss the linkage of performance appraisal results with the proper allocation of organizational rewards --Intrinsic rewards -Those internal to the individual and derived from involvement in the job, such as achievement, feelings of accomplishment, informal recognition, satisfaction, and status --Extrinsic rewards -Those controlled and distributed by the organization, such as formal recognition, incentive pay, fringe benefits, and promotions --A study of pharmacists suggested that perceptions of inadequate pay were predictive of their intentions to withdraw from a current job (Gaither and Mason, 1995b) --Internal equity -Concerns what an employee is being paid for doing a job compared with what other employees in the same organization are being paid to do their jobs --External equity -Concerns what employees in an organization are being paid compared with employees in other organizations performing similar jobs --Other Rewards (e.g., pay increases, promotions, and formal recognition) -Provide a clear distinction between cost-of-living, seniority, and merit pay increases -Beware of creating "winners" and "losers" Discuss legal challenges of performance management systems --This one is sort of a think question. Dr. Lovett wants us to take away from her lecture the idea that when documenting employee performance, accurate and objective details are needed. An example she used was to not document an employee as having a "bad attitude." This is too subjective and is not specific. Describe the responsibilities of hospital leaders for performance improvement Didn t find much here...but here is what I did catch is on the following page.

4 Hospital pharmacies Generally must adhere to standards set forth by the following National quality organizations that collect and analyze patient safety information: -Total quality management (TQM) -Continuous quality improvement (CQI) -Joint Commission on Accreditation of Healthcare Organizations(JCAHO) POLICY AND PROCEDURE LECTURE OBJECTIVES 1. Explain the importance of human resources management in providing high-quality pharmacist services. --Gives employees direction and guidance in their jobs --Improves the quality and quantity of work --Improves the work environment --Human resources management (HRM), is an essential duty for any pharmacist who must interact with or supervise others --HRM is important because it can make the difference between a smoothly running pharmacy and a dysfunctional, unsuccessful one --Saves money 2. Describe the role of the Civil Rights Act of 1964 in managing human resources. --Amendment to the original 1964 act prohibits discrimination on the basis of race and places the burden of proof on the employer --Also...The Age Discrimination Act of 1967: Protects employees 40 years of age and older from discrimination 3. Identify critical steps in the recruitment and selection of employees. Can t find this one. 4. List the steps involved in progressive discipline. Defined as a series of acts taken by management in response to unacceptable performance by employees 1. Verbal Warning 2. Written Warning 3. Suspension 5. Discuss the manager s role in change management. (the process, tools and techniques to manage the people-side of change, in order to achieve the required outcomes, and to realize change effectively within each individual, the team and the organization.) --JCAHO Standard LD 3.50 Leaders pursue changes in existing processes and approaches that improve hospital performance. --Planning, Organizing, Prioritize, Schedule, Directing, Assign roles --Coordinating (Build relationships, Obtain resources), Controlling --Mobilize support, especially from those who will be affected by the change --Find the right leader Knows the system Speaks the language Understands the norms

5 Knows who will be affected Empathetic with stakeholders Flexible with approach Persistent --Project management Appoint leader and team members Charge team and give deadline Coordinate with IT Empower staff --Team role List and prioritize steps Communicate plan Train staff --Staff Learn and do *Pharmacy Manager --IT timeline --Intervention reporting process --Personnel performance appraisal *Patient Safety Committee --Risk manager incident reports --Clinical pharmacist chart review --Patient falls control chart Write or revise a policy and procedure to implement a new process --The policy statement or purpose --References for the policy --Policy number --Definitions --Responsibilities for personnel involved --The procedures --Draft review