Partners in Performance : Successful Performance Management 9781560524465
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English Pages 102 Year 1997
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PARTNERS IN PERFORMANCE Successful Performance Management
Tony Moglia
A FIFTY-MINUTE™ SERIES BOOK
This Fifty-Minute™ book is designed to be “read with a pencil.” It is an excellent workbook for self-study as well as classroom learning. All material is copyright-protected and cannot be duplicated without permission from the publisher. Therefore, be sure to order a copy for every training participant by contacting:
1–800–442–7477 Menlo Park, CA CrispLearning.com
PARTNERS IN PERFORMANCE Successful Performance Management
Tony Moglia
CREDITS: Managing Editor: Kathleen Barcos Editor: Carol Henry Production: Leslie Power Typesetting: ExcuStaff Cover Design: Nicole Phillips Artwork: Ralph Mapson All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means now known or to be invented, electronic or mechanical, including photocopying, recording, or by any information storage or retrieval system without written permission from the author or publisher, except for the brief inclusion of quotations in a review. © 1997 by Crisp Publications, Inc. Printed in the United States of America by Von Hoffmann Graphics, Inc.
CrispLearning.com Adapted from the following Crisp Publications: Effective Performance Appraisals by Robert B.Maddux Personal Performance Contracts by Roger Fritz Goals and Goal Setting by Larrie Rouillard
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Library of Congress Catalog Card Number 96–72502 Moglia, Tony Partners in Performance ISBN 1-56052-446-4
LEARNING OBJECTIVES FOR:
PARTNERS IN PERFORMANCE The objectives for Partners in Performance are listed below. They have been developed to guide you, the reader, to the core issues covered in this book.
Objectives
1) To discuss a model for performance management
2) To explain the importance of gaining employee commitment
3) To discuss techniques for preparing and delivering effective performance reviews
Assessing Your Progress In addition to the learning objectives, Crisp Learning has developed an assessment that covers the fundamental information presented in this book. A 25-item, multiple-choice and true-false questionnaire allows the reader to evaluate his or her comprehension of the subject matter. To buy the assessment and answer key, go to www.CrispLearning.com and search on the book title, or call 1–800–442–7477. Assessments should not be used in any employee selection process.
ABOUT THE AUTHOR Tony Moglia is president of Competitive Solutions, a training and consulting firm in Northern California, specializing in communications, management, team building, customer service and human resources training. They also facilitate meetings for boards of directors, senior management, project teams, work groups, company retreats, and other groups. Tony was a Senior Consultant with Pacific Gas & Electric for 15 years, where he consulted and trained from the boardroom to the plant floor. He has worked with a wide range of organizations large and small, including Commerce Clearing House, Inc.; Dipaco, Inc.; National Semiconductor; Pacific Gas & Electric; Pete’s Brewing Company; Pinkerton Security Services; and Zacson Corporation. Tony is a dynamic speaker, facilitator and trainer. He delivers clear, concise presentations, works effectively with individuals as well as groups and trains others quickly and thoroughly. Tony can be reached at the following number: Phone: 800–940–2270
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CONTENTS Introduction
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SECTION 1 WHY PARTNER FOR PERFORMANCE? Where Are You Now? What Is a Performance Agreement? Case Study #1: Making Difficult Choices
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SECTION 3 BUILDING COMMITMENT Commitment Equals Success Steps to Create Job Commitment The Performance Agreement Discussion Column 4: Potential Obstacles Obstacles that Block Goal Achievment Column 5: Action Plan Developing an Effective Action Plan Exercise: Performance Agreement Performance Agreement Quiz
25 27 28 29 32 33 34 35 37 39
SECTION 4 PREPARING FOR THE PERFORMANCE REVIEW Establishing the Right Climate What a Well-Planned Performance Review Can Do For You What a Well-Planned Performance Review Can Do For Employees The Effective Performance Reviewer The Performance Review Form
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Partners in Performance
SECTION 2 DEVELOPING PERFORMANCE GOALS Purpose of Goal Setting Attitudes and Performance Agreements The Performance Agreement Column 1: Key Job Responsibilities Column 2: Goals Guidelines for Setting Goals Establish a Measurement System Corporate Goals Drive Performance Agreement Goals Case Study #2: Who Will Be the Best at Performance Agreements? Column 3: Ranking of Goals
Supervisor Preparation Employee Self-Appraisal Performance Review Pitfalls Column 6: Performance Rating Column 7: Supervisor Comments Guidelines For Review Session Case Study #3: What Upset Jess? Exercise: Performance Review
SECTION 5 EFFECTIVE PERFORMANCE REVIEWS How to Begin the Discussion Effective Performance Reviews Are Discussions, Not Lectures Column 8: Employee Comments How to Get an Employee to Talk Freely Questions that Facilitate Performance Review Discussions Discussing Unsatisfactory Performance Supporting Employee Development Closing the Performance Review Discussion Case Study #4: Four Performance Reviews Following Through A Performance Review Checklist for Supervisors Putting It All Together: Skill Practice Suggested Answers to Cases
Acknowledgments This book is the result of work on performance management projects with several clients, but many people had a hand in its creation. I wish to thank my friends and colleagues for their continued support. To Mike Crisp, Phil Gerould, Mary Kay Beeby, Rick Collins and all the others at Crisp who make working so much fun. And a very special thank you to my wife, Lorna, son Matthew and daughter Morgan who made this book worth writing.
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INTRODUCTION
How important is it for you to partner for performance? To your team? To your department? To your company? Partners In Performance is a book about people working together to set performance guidelines and a model or process to evaluate those guidelines for success—success of the employee, supervisor, manager, and company. You see, companies can no longer afford to establish performance criteria “at the top” and “pass it down” to the employee. Today’s business environment doesn’t require, it demands, that people work together—partner—to identify what work needs to be done and how to do it. Employees demand to own their jobs and have a say in how to accomplish their work—and rightly so! This books deals with the essentials of achieving success at work by working together. Success has nothing to do with luck, or being at the right place at the right time, or knowing the right person. These can help, but success is achieved by those who know how to prepare for it. At work, this means a deliberate method of partnering between management and employees, to determine who will do what by when. Partners In Performance will walk you through a simple process that, when worked on together, can dramatically improve the performance of your entire organization.
“If you don’t know where you’re going, any road will take you there!”
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1 Why Partner for Performance?
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WHERE ARE YOU NOW? This section presents some important questions to help you determine where you currently stand in the process of developing successful performance management. Answer each question honestly. Do you currently have specific written performance goals against which your employees’ achievement can be measured? Yes
No
Do your employees know about the written goals? Yes
No
Do you regularly reconfirm employees’ goals in order to remain on target? Yes
No
Are your on-the-job goals sufficiently flexible to meet new demands or unexpected changes in the direction of work? Yes
No
Are you basically satisfied that your employees are making measurable progress toward established work goals? Yes
No
Do you feel that you are accurately evaluating progress toward employees’ goals? No
Is it likely that employees would agree that you are accurately evaluating progress toward their goals? Yes
No
Partners in Performance
Yes
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Regardless of how you answered the previous questions, you should realize that performance goals aren’t about run-of-the-mill daily chores. Performance goals as discussed in this book must meet certain criteria. They must •
Be important enough to stimulate extra effort.
•
Be challenging enough to produce results that reflect the effort required to achieve them.
•
Cover a sufficient period to accommodate short-range setbacks and disappointments.
The best method for achieving outstanding performance, meeting objectives, and ensuring appropriate recognition is to prepare and use Performance Agreements. Research reflects that more than half the professional and clerical employees working today do not understand how their work is evaluated. To make sure this is not true for your employees, you need to discuss the process with them now. Review the evaluation process with every new employee as soon as they begin work.
Performance discussions are normally initiated by the supervisor, but they are also appropriate when an employee requests a meeting to determine how well you think he or she is doing.
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DO YOUR EMPLOYEES…
UNDERSTAND conditions faced by your company in the marketplace, including the strength of competitors and the resulting effect on company policies and procedures? DEVELOP specific, achievable, realistic goals for their own jobs—goals that will move your company measurably forward? PREPARE action plans to ensure the kind of consistent results required for success? WATCH for problems that need to be resolved, or obstacles to be eliminated, before progress can be made? RELATE their personal performance to goals that the company expects to accomplish?
The common denominator of all these issues is the cornerstone of the Performance Agreement.
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WHAT IS A PERFORMANCE AGREEMENT? In simplest terms, a Performance Agreement is a written agreement between an employee and his or her supervisor that identifies goals to be achieved within a specific time period. Accomplishments should have benefits for the employee as well as for the company. Here are the basic steps you should take when constructing a Performance Agreement: 1. Engage in a careful job analysis to identify the most important needs to be satisfied. 2. Work together to prepare goals for the highest-priority needs identified in the job analysis. Achievement of these goals should be considered vital to success in that job. 3. Jointly develop an action plan that specifies exactly who will be doing what and by when. 4. Gain employee commitment to the agreement. 5. Conduct regular performance reviews to ensure that progress meets expectations.
The Benefits of the Performance Agreement Preparing and implementing an effective Performance Agreement should never be a routine chore—even for experienced people. It demands commitment and offers these significant benefits: •
A unique opportunity to view the job from two important viewpoints— yours and the employee’s
•
A method by which to agree on needs and to identify priorities
•
A format that allows continued concentration on objectives
•
A chance for the employee to see the “big picture,” and better understand any changes that occur
•
A clearer focus on the problems and/or obstacles that require a solution
•
A means to pinpoint accountability for actions (who will do what and by when?)
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CASE STUDY #1: MAKING DIFFICULT CHOICES Harry Phillips has just completed his first year as a supervisor. He is a good performer, but he occasionally has problems dealing with people. He supervises six employees, most of whom were peers before he became their manager. One of Harry’s employees, Joe Jefferson, is a college student. Joe is competent and friendly but works at a very relaxed pace. Harry has done little about this because he had no clear-cut idea about how to motivate Joe. In fact, Harry has found the situation embarrassing because, although he likes supervising, he hates dealing with problems like Joe’s lack of productivity. It is hard for Harry to accept that he has a tendency to avoid these problems rather than face them. Another challenge in Harry’s department is Jim Thomas. Jim is about Harry’s age, and everyone in the unit knows that Jim wanted the job Harry received. Jim felt he deserved the advancement rather than Harry. Since the promotion, Jim has been polite when dealing with his supervisor, but his work has fallen off significantly both in quantity and quality. Harry has not talked to Jim about this, even though it is noticeable to everyone. In fact, it seems to Harry that the problem is worsening because two of Jim’s young co-workers are also slacking off. The other employees complain frequently to Harry about how little is being accomplished by both Joe and Jim.
How could Performance Agreements help Harry in managing Joe and Jim?
2.
How much time would you allow for the benefits of the Performance Agreements to become evident?
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PURPOSE OF GOAL SETTING
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Achievement and accomplishment are among the more satisfying pleasures we experience. Beating the competition to market or landing that big account are examples of things people delight in achieving and accomplishing. “Climbing the success ladder” motivates people to work, inspires creativity, solves problems, and stimulates inventiveness. No accomplishment or achievement happens accidentally. It is always the outcome of a success pattern. Careful planning, thoughtful strategy, and faithful execution are the factors of this pattern, and these factors exist only when a clear target has been identified. Before actions are taken, a defined goal must exist. The goal is a business or team target—the point you or the team must reach. Setting a goal that really motivates is not as easy as it sounds; nor should you think of goal setting as too difficult to be worth your effort. The power of even a single goal over the direction of a business is what makes setting that goal so very important.
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ATTITUDES AND PERFORMANCE AGREEMENTS Check
the one that best describes you.
“I know best.” This supervisor feels work is best accomplished by controlling the people who do it. Employees should be told what to do, how to do it and when to stop. Then they should be told what they did wrong and right, where they are weak and where they are strong. The supervisor feels this is justified because of his or her superior knowledge and ability. This attitude does not invite new ideas or challenge people. Communication is only one-way. “I’ll set the goals. You meet them.” This supervisor feels that because of superior knowledge, ability, or experience, it is okay to set goals for others to meet. The employee is given an opportunity to discuss ways to meet goals but has no input into the actual objectives. Performance is evaluated on whether and how well the original goals are achieved, regardless of how realistic the goals were. “Let’s review the work together, establish some realistic goals, and evaluate performance accordingly.” This supervisor emphasizes work performance, not personality characteristics. The idea is to help employees evaluate the usefulness of their ideas, recognize their weaknesses, and exploit their strengths. The supervisor acts as a resource and facilitator, rather than a judge.
THE PERFORMANCE AGREEMENT
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The Performance Agreement used in this book is a simple, five-column form. The first three columns relate to the employee’s job responsibilities and measurable goals. After discussions with the employee, the supervisor completes these three areas and reviews them with the employee during a Performance Agreement discussion. It is during this discussion that the fourth and fifth columns are completed by the supervisor and the employee together. This is the opportunity to jointly construct an Action Plan and gain the employee’s commitment to the Performance Agreement.
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COLUMN 1: KEY JOB RESPONSIBILITIES 1
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Key Job Responsibilities
Goals
Ranking of Goals
Potential Obstacles
Action Plan
What Is a Key Job Responsibility? An important responsibility of a supervisor is to work with employees in analyzing their jobs, to arrive at distinct job responsibilities for which the supervisor and the employees can develop specific goals. Employees can then work toward and be held accountable for these goals. A prevailing attitude among employees who hesitate to commit to Performance Agreements is the belief that it is not possible to measure the work they perform. Certainly some jobs are more difficult to gauge than others, but none is impossible to measure. This task is more easily handled when a job is broken into its component parts. Separate responsibilities or duties can be itemized. These distinct job parts are called Key Job Responsibilities. They are not goals, but rather areas of responsibility from which specific goals can be prepared. Each job typically has three to five Key Responsibilities. A Key Job Responsibility answers these questions for the employee: •
“What are the things I am accountable for?”
•
“What are the major component parts of my job?” Partners in Performance
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COLUMN 2: GOALS 1
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Key Job Responsibilities
Goals
Ranking of Goals
Potential Obstacles
Action Plan
A Goals statement formalizes the following: •
What is to be accomplished
•
Who will be involved
•
When the activity will be completed
•
How much it costs and which resources will be used
The S.M.A.R.T. process ensures that all the elements of a well-defined goal are included in each Goals statement. Here are the earmarks of a S.M.A.R.T. Goals statement:
SPECIFIC MEASURABLE ACTION-ORIENTED REALISTIC TIME—AND RESOURCE-CONSTRAINED A Goals statement that has each of these characteristics will provide an excellent basis for setting the goal, monitoring progress toward the goal, and achieving the goal.
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SETTING S.M.A.R.T. GOALS S.M.A.R.T. goals ensure that all the necessary elements are included for creating measurable, well-planned, and achievable goals. Let’s take a closer look at the S.M.A.R.T. goal’s characteristics.
SPECIFIC Detailed, particular, focused EXAMPLE: “Increase the calls handled per day…”
MEASURABLE Quantifiable, a standard for comparison, the means to a specific result, limiting EXAMPLE: “…to 160 calls handled per shift.”
ACTION-ORIENTED Performing, operating, producing results EXAMPLE: “Increase…completed contracts…”
REALISTIC Practical, achievable, accurate, possible EXAMPLE: “(Increase)…from current level (100 per day) to 150 completed contracts per shift.”
Scheduled; regulated by time, a finite duration of activity, extent of resources allowed, and/or deadline EXAMPLE: “By the end of this quarter.”
Partners in Performance
TIME—AND RESOURCE-CONSTRAINED
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SETTING REASONABLE GOALS Generally, two challenges are encountered when trying to set goals: •
Making the goal realistic
•
Quantifying the expected result
Making the goal realistic is important. If the goal is set too high, employees will usually know it immediately. When they believe it is set too high, their effort will diminish. Conversely, when the goal is realistic and attainable, employees will be motivated to meet or exceed the goal. This is especially true if they participated in setting the goals. Failure to include the employees in this process means the goals are viewed as just another “top-down” management decision. Once a goal is quantified, it becomes much easier to manage and measure. In a sales program or similar environment, quantifying is easy and straightforward. The XYZ method works well: X number of units/services, for Y amount of dollars, with Z time frame is a standard approach. In other circumstances, however, quantifying the objective may be less cut-and-dried. For example, in a Customer Service unit, a quantified objective might be that a Customer Service Representative is to ask three questions and receive responses from 90% of all customers who call. This goal can be measured by tracking the number of calls and the number of completed questions. This is an example of a quantified goal. Quantifying the goal also helps focus the effort. When employees know they are expected to get 90% completion on three questions, they can strive for that goal and track their own progress.
GUIDELINES FOR SETTING GOALS
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Here are three guidelines to follow that will help you set realistic goals: 1.
DON’T CONFUSE WHAT IS NEEDED WITH AN ATTAINABLE GOAL. For example, to meet customers’ needs, management may set the monthly objective 20% higher than the previous month’s objective. This objective is unattainable, however, without an increase in staff. Because the employees have no control over staffing, they are frustrated and their effort decreases.
2.
INCLUDE THE EMPLOYEES IN SETTING GOALS. When employees are included in setting the goals, the level of commitment will increase.
3.
BE WILLING TO ALTER THE GOAL. Ideally, goals should be flexible in both directions. If the employee easily meets the goal, then a suitable increase is in order for the next time period. If it is apparent the goal is unattainable, a downward adjustment may be needed.
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ESTABLISH A MEASUREMENT SYSTEM A quality measurement system for performance goals is similar to any other system an organization might use to measure sales, productivity, or other activities. There are four components: THE GOAL Measure actual results against the expectation. THE INTERVAL Measure often enough to eliminate or greatly reduce the chance of failure and to determine when action is required. THE ACTIVITIES Measure the success and timing of employee activities that support the desired result. Alter existing activities and introduce new ones as required. SHARING THE RESULTS Let the employees know their status by sharing the findings of the measurement system. Ask for staff input and ideas on how to improve the program and the measurement system.
The best way to eliminate disagreement over what was actually accomplished is to determine in advance how progress will be measured. Indicators are best expressed in terms of Quality, Quantity, Time, and Cost.
Sample Measurement Indicators QUANTITY •
Number of customers/ clients served per month, quarter, etc.
•
Number of items (reports, forms) processed per week, month, etc.
•
Number of cases (referrals, complaints) handled per month, quarter, etc.
• •
•
Number of customer complaints per month, year, etc. Percentage of employee participation (in specific programs)
QUALITY •
Error rate/ratio (by department, project, etc.)
•
Production hours lost due to injury (by severity rate) per quarter, year, etc.
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Percentage of orders without error
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Rate of employee turnover
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Percentage of tests repeated
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Percentage of work redone (or rejected completely)
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Percentage of time out of order or unproductive (downtime)
Number of work hours lost to absenteeism per month, quarter, etc.
TIME
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COST Number or percentage of deadlines missed
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Percent of variance from budget
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Number or percentage of calls answered within three rings
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Dollars as line item in budget (for overtime or other cost)
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Number of days to completion
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Number of working days after end of month/quarter
Dollars saved over previous period/quarter
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Number of hours to complete each unit
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Time elapsed (turnaround time)
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Frequency of an event each month/quarter
Partners in Performance
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CORPORATE GOALS DRIVE PERFORMANCE AGREEMENT GOALS
CASE STUDY #2: WHO WILL BE THE BEST AT PERFORMANCE AGREEMENTS?
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Pat and Chris are new supervisors attending their first training workshop. They have not studied material on Performance Agreements yet but are discussing their personal philosophies about them over lunch. Pat doesn’t believe a fair Performance Review can be done unless the employee’s goals have been discussed and expectations agreed upon in advance. She thinks measurable units of work should be assigned, so that both she and the employee can track performance as the work progresses. Chris thinks this approach is dangerous. He feels employees should be given only a general idea of what is to be accomplished, that employees who participate in establishing performance objectives will automatically set them too low. Chris prefers to leave performance expectations vague and to wait and see what the employees accomplish on their own. If their productivity doesn’t measure up to his standards, he will let them know.
Who do you think will be the best at Performance Agreements? 1. Pat, because
2. Chris, because Partners in Performance
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COLUMN 3: RANKING OF GOALS 1
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Key Job Responsibilities
Goals
Ranking of Goals
Potential Obstacles
Action Plan
With Key Job Responsibilities and Goals established, the next step is to determine the most significant Goals to be achieved within each Key Job Responsibility. When you set priorities and rank Goals, you get a list of objectives that ensures that the most important ones will be acted on first.
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COMMITMENT EQUALS SUCCESS
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What is the outcome of a well-written Performance Agreement? One immediate benefit will be a commitment from the employee to improve productivity. Some experts believe a major reason for the decline in the strength of the traditional “work ethic” is that many employees consider their jobs boring or even dehumanizing. Others take less pride in what they do because they find their work unfulfilling. The Performance Agreement can be a major step in overcoming these obstacles. A thoughtful Performance Agreement should get people involved and help them see that they are making an important contribution. Becoming a part of the action and not feeling like a piece of machinery means employees have more of a sense of personal satisfaction. A well-constructed Performance Agreement will give an employee the chance to accomplish more and do it better. By involving employees and working with them, you take advantage of the pride most employees want to have in what they are accomplishing. A good Performance Agreement can truly be the key to job satisfaction and success.
What it takes to develop a high-quality Performance Agreement is COMMITMENT.
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STEPS TO CREATE JOB COMMITMENT STEP #1: Develop •
Provide advice and direction to help structure meaningful commitment from your employees.
•
Ensure that you have the employees’ commitment.
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Set a good personal example by developing a quality Performance Agreement with your manager.
STEP #2: Weigh •
Determine how well each element of the Performance Agreement addresses the highest-priority needs of the job at this time.
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Assess how employee commitment supports or reinforces the goals.
•
Evaluate how realistic the Performance Agreement is relative to problems that stand in the way.
STEP #3: Discuss •
Maintain regular communication with those involved; construct avenues for feedback.
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Determine accountability for all commitments as the Action Plan (discussed shortly) is built.
STEP #4: Support •
Encourage and support employees to be innovative and develop new solutions.
•
Set up opportunities to discuss actions taken, as well as obstacles encountered.
•
Work with employees to analyze all projects or programs that are in trouble, to determine why they are faltering and what can be done to save them.
THE PERFORMANCE AGREEMENT DISCUSSION
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After determining the Key Job Responsibilities and designating the most important Goals for each area, the next step is to schedule a meeting between you and the employee. Make sure there is agreement on questions such as these: •
Why are the listed goals important?
•
What results are expected?
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What are the potential obstacles and challenges?
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What are the corporate goals and objectives?
•
How will progress be measured in terms of quality, quantity, time, and cost?
•
What is the Action Plan for accountability—who will be doing what and by when?
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HOW TO INTRODUCE THE PERFORMANCE AGREEMENT Employees should understand that a Performance Agreement, more than any other document, will educate them about their value to the company and to their position. A carefully prepared Performance Agreement should emphasize the following:
•
Improving work/product quality
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Streamlining operations
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Improving customer service/satisfaction
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Increasing productivity
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Upgrading efficiency
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Increasing profits
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Developing markets
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Stimulating morale
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Suggesting new ideas for avoiding trouble
Performance Agreements should make each employee feel like part of a winning team.
TIPS FOR THE PERFORMANCE AGREEMENT DISCUSSION
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As you prepare for the Performance Agreement discussion, keep these guidelines in mind: Plan the meeting carefully. Establish a friendly “we” atmosphere. Ask the employee to participate by summarizing what he/she has prepared. Encourage initiative. Help the employee keep the Performance Agreement as simple, brief, and clear as possible. Ensure that results are measurable. Get commitments (dates and schedules) from the employee. Probe to ensure that the employee considers the goals and Action Plan to be realistic. Summarize the expected results of each goal and the points of the Action Plan.
Answer any questions.
Partners in Performance
Thank the employee for participating and tell her/him you will be interested in tracking progress.
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COLUMN 4: POTENTIAL OBSTACLES 1
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Key Job Responsibilities
Goals
Ranking of Goals
Potential Obstacles
Action Plan
Obstacles always occur as challenges on the way to goal achievement. Goals can be blocked by physical, environmental, or psychological obstacles that must be overcome in order to reach the goal. Each type of obstacle is a real barrier to goal achievement. It makes no difference if the barrier is tangible (physical or conditional), or solely in the employee’s own mind (psychological)—the barrier is real. Therefore, it is very important to take the following steps for column 4: •
Identify the obstacle to goal achievement.
•
Plan a way to overcome the obstacle.
Often the obstacles to individual goals are many. It is crucial to identify every conceivable difficulty in order to develop a comprehensive plan for overcoming each one and drawing closer to the goal.
OBSTACLES THAT BLOCK GOAL ACHIEVEMENT
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Planning to meet the challenges of these possibilities may mean the difference between achieving the goal and abandoning the goal. Assist the employee in becoming a blockbuster. List some general obstacles to goal achievement that you think might occur for any goal.
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COLUMN 5: ACTION PLAN 1
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Key Job Responsibilities
Goals
Ranking of Goals
Potential Obstacles
Action Plan
Without an Action Plan, goals are merely good intentions. Action Plans are necessary for determining accountability. They establish who will do what by when. At this point, you and the employee should now be ready to prepare an Action Plan for the employee’s highest-priority goals. You can make changes to the Action Plan later, but it’s important to get started. Be sure to answer these important questions:
•
Is the activity really worth accomplishing? Will it make a significant difference when completed?
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Will completing the action be cost-effective?
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Do I know the financial impact? Is it significant?
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Have the necessary steps of the activity been determined? Is the sequence proper?
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Are the deadlines realistic?
•
Are the interim checkpoints acceptable?
DEVELOPING AN EFFECTIVE ACTION PLAN
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An effective Action Plan should do the following: DETAIL what activity, material, or equipment is needed to achieve the planned objectives DESIGNATE the people who are required to carry the plan to success SPECIFY when checkpoints need to be met DETERMINE alternate courses of action that should be available Careful preparation of the Action Plan is essential if the Performance Agreement is to achieve the results expected. Properly done, a thoughtful Action Plan will provide these indirect benefits: #1. Time management will improve because •
There will be agreement on where attention needs to be concentrated.
•
Low-priority activities can be dropped or reassigned.
•
There will be fewer “false starts” or changes in direction.
#2. Teamwork will improve because key players have a common game plan. #3. Rate and severity of errors will decrease. Partners in Performance
#4. There will be fewer excuses because there is assigned accountability.
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EXAMPLE OF A PERFORMANCE AGREEMENT FOR: Administrative Assistant
EXERCISE: PERFORMANCE AGREEMENT
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Choose one of your employees and complete the first five columns of the blank Performance Agreement form provided here. (Normally, columns 4 and 5 would be developed during the Performance Agreement discussion, but you should be prepared with information for these columns. So, for the purpose of this exercise, complete all five columns.)
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PERFORMANCE AGREEMENT QUIZ
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Answer these questions with True or False. True False 1. Performance Agreements should cover the details that you are likely to forget about if they’re not put in writing. 2. Projects that are easily accomplished make the best items on Performance Agreements. 3. The first step in preparing a Performance Agreement is to set Goals. 4. Accountability is determining who will do what and by when. 5. A Performance Agreement should concentrate on high priorities that achieve significant results. 6. Performance Agreements should be designed exclusively from the employee’s point of view. 7. The key to job success is planned, sustained effort. 8. Individual Performance Agreements need not necessarily be related to company goals. 9. It’s a good idea to use the Performance Agreement to measure every aspect of a job. 10. A Key Job Responsibility is the same as a Goal.
12. Possible obstacles should be considered after a Performance Agreement has been agreed upon. 13. The Performance Agreement should be discussed after projects/goals are completed.
Partners in Performance
11. Progress indicators are ways to measure accomplishment of Goals.
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True False 14. The Performance Agreement is best introduced in a memo from the company’s corporate management. 15. Questions and objections should normally be handled by writing them down and then discussing them face-to-face. 16. Performance Agreements combine management direction with employee participation. 17. In Performance Agreements, the what is more important than the how. 18. The greatest benefits of Performance Agreements are commitment and results.
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Performance Agreement Quiz (Answers) 1. False Performance Agreements should be concerned with the most important responsibilities. 2. False Best results are achieved when extra effort is required. 3. False Unless we analyze needs first, we may set goals that are meaningless. 4. True 5. True
Don’t waste time on low-priority items.
6. False Both the supervisor and the employee should be involved and agree on the final contract. 7. True
To count on anything else is naive.
8. False Any Performance Agreement should directly relate to company expectations and priorities. 9. False Measurement should be directed toward Key Job Responsibilities and the highest-priority goals. 10. False Key Job Responsibilities are the vital components of the job. It is from these that measurable goals can be constructed. 11. True
Progress indicators are usually best expressed in terms of quantity, quality, time, and cost.
12. False Anticipation of potential obstacles can sharpen focus and save time. 13. False Progress should be reported and evaluated regularly. 14. False To be effective, the Performance Agreement should be introduced personally by a supervisor. Writing tends to focus thinking, but “memo wars” without personal contact can make things worse.
16. True
This combination enables supervisors to function most effectively.
17. True
We must first be sure that we are doing the right things, and then concentrate on doing them.
18. True
Commitment determines persistence. Results (not activities) are what we are paid to achieve.
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15. True
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ESTABLISHING THE RIGHT CLIMATE
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Performance review has never been easy for supervisors or employees. It is a task that always requires sensitive attention to the needs of people, responsible concern for productivity, and open communication about the expectations of the organization—this is true under the best of circumstances and in a reasonable business environment. And in an era of rapid change, the process becomes even more complex. Supervisors today are often caught in a whirlpool of change that may diminish their financial resources, reduce their staff, cut their training budget, and increase their personal workload. They may have witnessed, or presided over, the elimination of layers of management and support staff. The staff reductions may have included friends and trusted associates. More than ever, companies today need the full focus of their supervisors and employees on productivity, profitability, and customer satisfaction in order to be successful in a global economy. Supervisors, as always, are expected to “overcome the obstacles,” “solve the problems,” and “meet the challenges.” To set a climate for effective Performance Reviews, today’s supervisor has to work harder than ever before to foster a positive working environment. It must be an environment where employees understand how they contribute to the company’s goals, the bottom line of the corporation—and thus the meaning of their own careers.
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WHAT A WELL-PLANNED PERFORMANCE REVIEW CAN DO FOR YOU People responsible for Performance Reviews often assign a low priority to them because they have not thought about the benefits of a good review session. Following are some advantages of doing Performance Reviews on a timely basis. Check
those that are important to you. Performance Reviews give me valuable insights into the work being done and those who are doing it. When I maintain good communication with others about job expectations and results, opportunities are created for new ideas and improved methods. When I do a successful Performance Review, I reduce the employee’s anxiety about how he or she is doing. When employees receive timely, corrective feedback on their performance, I increase productivity. Public recognition of positive contributions reinforces sound work practices and encourages good performance. When I facilitate two-way communication with employees, goals are clarified so they can be achieved or exceeded. Regular Performance Review sessions mean there are no surprises about how work quality is being perceived. Learning to do professional Performance Reviews is excellent preparation for my management advancement and increased responsibility.
WHAT A WELL-PLANNED PERFORMANCE REVIEW CAN DO FOR EMPLOYEES
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Example is not the main thing in influencing others. It’s the only thing. —Albert Schweitzer
If you as a manager sometimes find it difficult to understand and commit to the current and future needs of your company, isn’t it likely your employees have similar problems? It is logical that they need your leadership to help them understand the issues and to focus their effort in the right places. When you understand the company’s needs, you can help your employees do the same. Together, your efforts and theirs will create a climate in which Performance Review is meaningful and mutually supportive. Here are some tips on how to make the Performance Review happen successfully. Check
those you are now using or will use in the future. Reflect a positive, “can do and will do” attitude. Demonstrate personal flexibility and adaptability. Communicate the mission of the future and how it is bridged to the present. Identify and talk through the concerns of each individual. Discuss and clarify goals to reduce ambiguity.
Find out what employees are considering to be problems, and let them participate in finding solutions. Quickly fix what’s broken.
Partners in Performance
Help employees assess their current role, express your expectations, and together develop a plan to meet job requirements.
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Explain the importance of letting go of the past, focusing on the present, and anticipating change in the future. .
Help employees identify ways in which their career goals can be achieved or made more realistic. Encourage employees to show initiative. They will grow in the process. To educate and develop employees, delegate tasks and responsibilities. Devote whatever resources you have available to recognizing and rewarding good performance. In addition to the achievements themselves, recognize genuine attempts to achieve. Make sure policies and procedures always support and never prevent the accomplishment of goals. Ask your employees frequently what you and/or the company are doing that makes them uncomfortable or inhibits their performance. Be sure your behavior and communication practices continue to be consistent with what you expect from others. If your work environment is in transition, discuss the resultin emotional impact with employees. Assure them that what they are experiencing is normal. Help them move on to new commitments as soon as possible.
Performance reviews should make all employees aware of the importance of their contribution to achieving the company’s goals.
THE EFFECTIVE PERFORMANCE REVIEWER
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The Performance Review provides a periodic opportunity for communication between the person who assigns the work and the person who performs it. They can discuss what each expects from the other and how well those expectations are being met. Performance Reviews should not be adversarial, nor are they for social chit-chat. They are an essential communication link between two people with a common purpose. Leading these discussions is not always easy, but the principles and techniques for effective sessions can be learned and applied by any supervisor.
Characteristics of an Effective Performance Reviewer Personal characteristics influence our skill as performance reviewers. To start, let’s evaluate your appraisal skills as they exist now. Complete the assessment on the following pages.
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ASSESSING YOUR EFFECTIVENESS AS A PERFORMANCE REVIEWER The following personal characteristics support effective Performance Reviews. This scale will help you identify your strengths, as well as determine areas where improvement would be beneficial. Circle the number that best reflects where you fall on the scale. (The higher the number, the more that characteristic describes you.) When you have finished, total the numbers circled in the space provided at the end. VERY MUCH LIKE ME
NOT AT ALL LIKE ME
1. I like being responsible for productivity.
5
4
3
2
1
2. I like people and enjoy talking with them.
5
4
3
2
1
3. I don’t mind giving criticism that is constructive.
5
4
3
2
1
4. I give praise freely when it is earned.
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4
3
2
1
5. I am not intimidated by workers.
5
4
3
2
1
6. I seek new ideas and use them whenever possible.
5
4
3
2
1
7. I respect the knowledge and skill of the people who work for me.
5
4
3
2
1
8. I follow up to be sure that commitments, goals, and standards are being met.
5
4
3
2
1
9. I am sensitive to the needs and feelings of others.
5
4
3
2
1
5
4
3
2
1
10. I am not worried by employees who know more about their work than I do.
TOTAL A score between 40 and 50 indicates you have excellent characteristics to conduct effective Performance Reviews. A score between 30 and 39 indicates significant strengths, but also some room for improvement. Scores between 20 and 29 reflect a significant number of problem areas. Scores below 20 call for a serious effort to improve. Regardless of your total score, make a special effort to grow in any area where you scored 2 or less.
THE PERFORMANCE REVIEW FORM
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The Performance Review is the companion document to the Performance Agreement. It is a continuation, or a completion, of the Performance Agreement you establish with an employee. In the Performance Review, goal achievement is now evaluated with a Performance Rating. Both supervisor and employee record their comments, so that a clear picture of successes and setbacks is captured. Comments from the Performance Review are often used to create new goals for the next Performance Agreement.
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SUPERVISOR PREPARATION
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Prior to conducting a Performance Review, identify and develop the items to be covered. Since employee performance in the current job is the central issue, gather relevant data concerning Key Job Responsibilities and the established goals. Next, based on this data, assess the employee’s performance for the review period. Then take these steps to get ready for the Performance Review: 1. Review the employee’s Key Job Responsibilities to be sure you are fully conversant with them. 2. Review the goals previously discussed and agreed upon with the employee (plus any notes you have made about his or her achievement). 3. Review the employee’s history, including •
Job skills.
•
Training.
•
Experience.
•
Special or unique qualifications.
•
Past jobs and job performance.
4. Collect information from others who have worked with the employee during the last performance period. 5. Review job performance versus job expectations for the period being reviewed, and document strengths and areas for improvement. 6. Note any variances in the employee’s performance that need to be discussed. Provide specific examples. 7. Consider career opportunities or limitations for this person. Be prepared to discuss them. 8. Arrange for sufficient, uninterrupted time in a private, preferably neutral, location. Partners in Performance
When a Performance Review goes poorly, it is usually because the reviewer has not prepared properly or completely, or has not given the employee the opportunity to prepare.
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EMPLOYEE SELF-APPRAISAL Preparation by an employee for the Performance Review discussion is as important as that of the supervisor. The Performance Agreement should be available to you and the employee so you both can prepare accordingly.
Questions for the Employee Self-Appraisal The following questions can help you prepare for your Performance Review discussion. As you read each question, think about your performance, your progress, and your plans for future growth.
Thought Stimulators What critical abilities does my job require? To what extent do I fulfill them? What do I like best about my job? Least? What were my specific accomplishments during this Performance Agreement period? Which goals did I fall short of meeting? How could my supervisor help me do a better job? Is here anything that the organization or my supervisor does that I think hinders my effectiveness? What changes would improve my performance?
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Does my present job make the best use of my capabilities? How could I become more productive? What do I expect to be doing five years from now? Do I need more experience or training in any aspect of my current job? How could that be accomplished? What have I done since my last Performance Review to prepare myself for more responsibility? What new goals should be established for the next Performance Agreement? Which old ones need to be modified or deleted?
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PERFORMANCE REVIEW PITFALLS Factors that mislead or distract supervisors when they are in the Performance Review process are pitfalls to be avoided. A performance reviewer must be on guard against anything that distorts reality, favorably or unfavorably. Some typical pitfalls include the following:
Bias/Prejudice: Things that elicit personal reactions, which are unrelated to performance, such as race, religion, education, family background, age and/or sex of the employee. Trait Assessment: Too much attention to characteristics that have nothing to do with the job and are difficult to measure. Examples include characteristics such as sincerity or friendliness. Overemphasis on the employee’s favorable or unfavorable performance of one or two tasks, which could lead to an unbalanced evaluation of the overall contribution. Relying on impressions rather than facts. Holding the employee responsible for results that are beyond his or her control. Failure to provide each employee with an opportunity to prepare in advance.
Concentrate on performance measured against mutually understood expectations.
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COLUMN 6: PERFORMANCE RATING 6
7
8
Performance Rating
Supervisor Comments
Employee Comments
Using the Performance Rating scale (1 to 5) at the bottom of the Performance Review form, evaluate the level of the employee’s success for each goal. Each goal should be reviewed and rated independently and objectively. Your conclusion from the Performance Rating column will be a primary guide during your Performance Review discussion.
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COLUMN 7: SUPERVISOR COMMENTS 6
7
8
Performance Rating
Supervisor Comments
Employee Comments
Your comments as supervisor in support of your Performance Rating of each goal should be written in column 7. These comments will be useful to you during the Performance Review discussion and for future Performance Agreements, as well as for promotions or demotions.
GUIDELINES FOR REVIEW SESSION
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Once you have completed columns 6 and 7 of the Performance Review, you will need to develop a plan for conducting the Performance Review discussion. Keep the following guidelines in mind. Check
those you expect to use in your Performance Review discussion.
Don’t cover too many areas in any one discussion. Concentrate on what deserves the most attention. Make sure you have collected specific, unbiased examples to support your points but that also allow for dialogue. Develop positive approaches to correcting problems. Give the employee an opportunity to suggest solutions before any final decisions are made. Be prepared to provide praise and positive reinforcement for items that deserve it. Identify developmental activities that will improve the employee’s performance in the present assignment and/or provide preparation for future assignments. Note any projects, goals and/or standards to be accomplished during the forthcoming Performance Review period. Discuss them and reach agreement on them during the session. Plan to involve the employee in all aspects of the discussion. Partners in Performance
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CASE STUDY #3: WHAT UPSET JESS? Darcy has just completed a Performance Review discussion with one of her employees and is upset about it. She told another supervisor, “I reviewed Jess this morning. I had to call him out of a meeting because I remembered all my reviews were due today. I couldn’t believe his reaction. He said he had no time to prepare and expected me to have an example to support each criticism I made. About all he did, really, was criticize my position on a couple of issues. I told him several things I didn’t like about his performance and then was good enough to tell him how to correct his faults. All I got back was anger and silence. You would think he would be grateful for some feedback, but I guess people today don’t really care about improving. Normally he’s a pretty good guy, but he was sure upset during the Performance Review. What do you suppose is wrong with him, anyway?”
Use the space below to write down what you think is “wrong” with Jess.
EXERCISE: PERFORMANCE REVIEW
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Let’s continue the exercise. You’ve completed columns 1 through 5 of the Performance Agreement/Review form. Now complete 6 and 7 using the form on page 62.
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HOW TO BEGIN THE DISCUSSION
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Supervisors have the responsibility to initiate Performance Review discussion. Although individual personalities will influence the format, experts agree the discussion should be held in a private place to avoid interruptions, and should begin on a positive and friendly note. If possible, try to sit on the same side of the table with the employee as you discuss the Performance Review. This accomplishes two objectives: You remove physical and psychological barriers between the two of you, and you can refer to a single copy of the Review. One way to begin the discussion is to highlight a specific positive achievement and discuss it first. Another approach is to ask the employee to review his or her accomplishments for the Performance Review period. This allows the employee to choose a point at which to begin and can lead to a candid assessment of actual performance. While the employee is talking, you should be an interested listener.* If variances between expectations and results are evident, it is important that both you and the employee work at determining what they are and why they occur. This helps the discussion become a problem-solving session, and the outcome will be the implementation of effective solutions. The employee should be encouraged to identify as many reasons for variances as possible. Don’t reject any of the reasons right away, even if they seem to be excuses. You, too, should contribute possible causes so that nothing significant is overlooked. This sharing allows for an exchange of viewpoints. It can provide better insights for all concerned and create a new understanding of the expectations of the organization and those who staff it.
Partners in Performance
*For a good book on building listening skills in business, order The Business of Listening using the information in the back of this book.
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EFFECTIVE PERFORMANCE REVIEWS ARE DISCUSSIONS, NOT LECTURES The following characteristics are essential to conducting effective Performance Review discussions. Placing yourself on this scale will help you identify strengths and determine where improvement would be beneficial. Circle the number that best reflects where you fall on the scale. (The higher the number, the more you are like the characteristic.) When you have finished, total the numbers circled in the space provided at the end. VERY MUCH LIKE ME
NOT AT ALL LIKE ME
1. I let the employee do most of the talking.
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1
2. I make a sincere effort to listen to the employee’s ideas.
5
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2
1
3. I am prepared to suggest solutions to problems and development needs, but let the employee contribute first.
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4. My statements about performance are descriptive, not judgmental.
5
4
3
2
1
5. I reinforce the positive areas of performance, as well as seek ways to eliminate the negatives.
5
4
3
2
1
6. I try to support the employee’s ideas rather than force my own.
5
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2
1
7. I invite alternatives rather than assume there is only one way to approach an issue.
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2
1
8. I use open-ended, reflective, and directive questions to stimulate discussion.
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9. I am specific and descriptive when I express concern about performance.
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10. The employee knows I want him/her to succeed.
5
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1
TOTAL
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A score between 40 and 50 indicates you should be leading successful discussions. Scores between 30 and 39 indicate significant strengths plus a few improvement needs. A score between 20 and 29 reflects some strengths, but a significant number of problem areas as well. Scores below 20 call for a serious effort to improve in several categories. Regardless of your total score, make a special effort to grow in any area where you scored 2 or less.
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COLUMN 8: EMPLOYEE COMMENTS
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7
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Performance Rating
Supervisor Comments
Employee Comments
The Performance Review discussion depends on participation from both the supervisor and the employee. Column 8 is the place to record any comments from the employee about each of the goals and their related Performance Ratings. This column can be filled in by the employee during the discussion, or by you, with the employee’s permission.
HOW TO GET AN EMPLOYEE TO TALK FREELY
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Sometimes employees say very little during a Performance Review discussion. There are several possible reasons for this. For example: •
The employee does not understand the purpose of the Performance Review and is afraid to express an opinion.
•
The employee is not given the opportunity to express an opinion.
•
The employee was not given time to prepare for the discussion.
•
The employee’s thoughts and ideas are quickly brushed aside or discounted.
•
The employee feels the whole process is meaningless.
A supervisor can overcome this reluctance to enter into a dialogue by creating a supportive, non-threatening atmosphere. In the following list, check
those methods you expect to use.
1. BE DESCRIPTIVE, NOT JUDGMENTAL. When a supervisor is judgmental about an employee’s performance, it almost always brings out defensive behavior. A better climate is established when descriptive terms are used to discuss problems. This makes it possible for the supervisor and employee to discuss unemotionally a solution—or even better, for the employee to generate a solution. Note the difference in the following example: JUDGMENTAL
“Can you explain what caused the incident?”
Supervisors who use descriptive, nonjudgmental language in the Performance Review discussion show a desire to analyze and resolve a problem, not to find a scapegoat or to demean the employee.
Partners in Performance
“How could you do such a dumb thing?”
DESCRIPTIVE
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2. BE SUPPORTIVE, NOT DIRECTIVE. Supervisors sometimes purposely and sometimes inadvertently display an authoritarian attitude during the discussion. This can create resentment and defensiveness. It is usually better to respect the employee’s ability to contribute to the solution of a problem. Here is an example: DIRECTIVE “Here is what we will do to get this done on time”
SUPPORTIVE “What do you suggest we do to get this done on time in the future?”
A supportive approach generates options for problem solving because the employee is encouraged to make suggestions. It also focuses on the problem, not the employee. In addition, your support promotes better listening by both parties. It permits a climate where disagreement is not only acceptable, but invited.
3. REFLECT EQUALITY, NOT SUPERIORITY. Supervisors who put too much emphasis on their position and power often create barriers between themselves and their employees. In contrast, supervisors who share information with employees and then seek their opinions foster an atmosphere of equality. Here is an example: SUPERIORITY
EQUALITY
“I was doing it this way before you were born.”
“We have done it this way for years but I would like to hear your ideas on how we can do it better.”
Employees appreciate a supervisor who shares information, asks for opinions, and listens to ideas. Supervisors who understand this have Performance Review discussions that are enlightening and productive.
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4. BE RECEPTIVE, NOT DICTATORIAL. Supervisors who approach decisions, plans, and problems in a dictatorial fashion are telling employees there is no need for other ideas or solutions. Things have already been decided. This can demoralize an employee who has ideas and wants to excel. When you listen to employees’ input, however, and allow your ideas to be challenged in a search for the best solution, you stimulate enthusiasm, creativity, and productivity. Here is an example that compares the two approaches: DICTATORIAL
RECEPTIVE
“This is the best solution.”
“This is the best solution I could come up with. What other possibilities do you see?”
A supervisor who accepts employees’ input recognizes their value, capitalizes on their knowledge, and builds confidence in the group.
You learn more from asking good questions and listening than from talking.
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QUESTIONS THAT FACILITATE PERFORMANCE REVIEW DISCUSSIONS Thoughtful questions during the Performance Review can provide some very important benefits because
•
They require the supervisor’s commitment to listen.
•
They stimulate thought about specific issues.
•
They solicit the employee’s ideas, point of view, and feelings.
•
They provide an opportunity to test an idea against the reasoning of someone else.
•
They elicit important information that might not otherwise be available.
OPEN-ENDED, REFLECTIVE, AND DIRECTIVE QUESTIONS
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There are three types of questions that can be used to help the supervisor and employee better understand each other’s point of view. Check
those you would feel comfortable using.
1. OPEN-ENDED QUESTIONS: These are questions that cannot be answered with a yes or no. These questions require an opinion or expression of feelings. EXAMPLES: “What is your opinion of…?” “How do you feel about…?” “What do you think caused…?”
Results of asking open-ended questions include the following: A demonstration of your interest in the other person’s point of view A confirmation that you value the other person’s ideas and feelings A stimulation of thought about specific issues A better understanding of the other person’s needs The encouragement of a dialogue rather than a monologue
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2. REFLECTIVE QUESTIONS: A reflective question repeats a statement that the other person has made, in the form of a question. Good listening skills are required in order to form reflective questions. It is also important to first select the most significant feeling or idea stated. EXAMPLE:
Employee: “Our results would be better if we modified the procedures used to respond to customer inquiries.” Supervisor: “You’re convinced the results can be improved?”
Reflective questions are helpful because: Arguments are avoided, since you respond without accepting or rejecting what has been said. It confirms you understand what has been said. If you reflect incorrectly, the other party has an opportunity to correct you. The other person is encouraged to clarify or expand upon what has been said. If the statement comes back in a nondirective fashion, the other person can recognize illogical statements they may have made. They create a dialogue that is conducive to agreement.
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3. DIRECTIVE QUESTIONS: These are used to solicit information about a particular point or issue. Directive questions are usually reserved until after the other person has finished talking on the subject. Directive questions can then be used to sustain communication, or to obtain information or ideas in which you are specifically interested. EXAMPLE: Supervisor: “If you are convinced the results can be improved, what steps would you take, and when would you take them?”
Directive questions have these advantages: They provide pertinent information in the areas of greatest importance to you. They challenge the other person to explore ideas, defend statements, and contribute suggestions. They offer both parties specific facts on an issue.
Open-ended, reflective, and directive questions are all useful in drawing the employee into a thorough discussion of job performance and personal development.
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DISCUSSING UNSATISFACTORY PERFORMANCE The supervisor must be sure unsatisfactory performance is identified and discussed. Experts believe that at least 50% of performance problems in business occur because of a lack of feedback. An employee will have no reason to change performance if it appears acceptable to the supervisor and organization. On the following pages are some ways to approach constructive feedback and maintain a climate that encourages a win/win outcome.
Employees who are accustomed to working in a non-threatening atmosphere will be more comfortable discussing their shortcomings in the Performance Review setting. When these issues are mentioned by the employee, the supervisor can be supportive by saying something like, “That’s very perceptive. What can we do to correct this situation?” If the employee has performed unsatisfactorily in some aspect of the job but does not bring it up on his or her own, the supervisor must do so. If this becomes difficult or uncomfortable, it helps to describe the impact of the poor performance on the team, unit, department, and/or company. Some employees may not realize they are falling short of expectations. They may assume everything is acceptable because no one has ever discussed the problem with them. Sometimes they may think everything is okay because they see others making the same mistakes or behaving the same way. A first step to correcting unsatisfactory performance is to review expectations. If the employee is unaware of these expectations, they must be made clear. Get a commitment from the employee that they will be met. If expectations are not being met for some other reason, the supervisor must first learn why and then agree on a corrective action worked out with the employee.
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Questions like the following can be helpful in opening up the issues of unsatisfactory performance: •
“Are you aware of the standards for quantity and quality we expect in this area?”
•
“Are you aware of your error rate versus the team average?”
•
“Your reports are excellent but they are seldom on time. Can you explain why?”
•
“Fifty percent of your shift resigned in the last quarter. To what do you attribute that?”
The Performance Review discussion is more than a simple review of job performance. It should progress naturally to a discussion of how the employee can do a better job in the future. It is also a good time to draw out the employee’s ambitions and aspirations.
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SUPPORTING EMPLOYEE DEVELOPMENT As performance is discussed, it often becomes apparent that additional training and development are required or desirable. It is also possible that the discussion will produce an indication that an employee is ready for more responsibility that requires new or improved skills. Therefore, specific areas for improvement and the need for new skill development should be discussed. Techniques by which further growth can be accomplished should also be covered. The supervisor should encourage the employee to talk about personal growth needs, so goals to meet them can be established. This effort can be supported by •
Serving as a sounding board to help the employee explore developmental alternatives.
•
Testing the extent to which the employee has thought through developmental objectives.
•
Providing a supportive climate for learning.
Some companies use Development Plans to capture this information. Your company may already have a Development Plan form, or you may need to create one. Development Plans should be specific and include agreement by the employee as to the following: Career goals and new skills the employee wants to develop What the employee needs to do When the employee needs to do it What the supervisor needs to do and when How development is to be applied once it is completed
CLOSING THE PERFORMANCE REVIEW DISCUSSION
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When the supervisor and employee have concluded their discussion of past performance, addressed any development needs, and established new goals and/or standards for the future, they need to take time together to review these agreements and plans. Many Performance Reviews fail because participants end the session with differing perceptions about what was accomplished and what was agreed. To prevent this, the supervisor should conclude the discussion by taking these steps:
STEP #1
Summarizing what has been discussed and agreed. This should be done positively and enthusiastically.
STEP #2
Giving the employee a chance to react, question, and add additional ideas and suggestions.
STEP #3
Expressing appreciation for the employee’s participation and reinforcing the commitment to future plans.
STEP #4
Following the discussion by offering to supply a written copy of the Performance Review (and a new Performance Agreement, if one was established jointly).
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CASE STUDY #4: FOUR PERFORMANCE REVIEWS The employee’s response to the Performance Review may differ from what you expect. It is a good idea to give some thought to the range of possible responses in advance and make plans accordingly. Here are some situations describing employee responses to their Performance Reviews. After reading each example, indicate how you would react.
Situation 1 The employee agrees with the Performance Review and wants to improve. Some genuine differences of opinion are expressed, but the employee makes positive efforts to clarify the issues rather than be defensive. Your Response
Situation 2 The employee does not accept responsibility for substandard performance and blames “company politics” and other employees. Your Response
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Situation 3 The employee disagrees with elements of your review and offers specific information to refute your findings. Your Response
Situation 4 The employee accepts the review without saying a word and prepares to leave before you have discussed the next Performance Agreement. Your Response
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FOLLOWING THROUGH 1. DOCUMENTATION Once the Performance Review discussion has been concluded, the supervisor should immediately make a written record of the following: • The overall Performance Review for the previous period and any updates • Plans agreed to by both parties • General suggestions • Any personal commitments requiring specific action • Developmental opportunities A copy of this summary should be given to the employee.
2. REFLECTION After each Performance Review, take time to reflect upon your effectiveness in leading the discussion. Here are some good questions to ask yourself: • What was done well? • What was done poorly? • What will be done differently next time? • What was learned about the employee? • What was learned about myself and my job?
3. CHECK PROGRESS A third element of the follow-through is to ensure that agreements are kept and plans followed. If this is not done, the entire Performance Review loses its impact and the employee assumes no one cares very much about performance. This phase of the follow-through is actually the initial phase of the next Performance Review.
4. BEGIN PLANNING FOR THE NEXT PERFORMANCE AGREEMENT
A PERFORMANCE REVIEW CHECKLIST FOR SUPERVISORS
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Now that you’ve worked through the entire Performance Review process, here is a checklist to use for your real performance management situations. It is designed to guide you in preparing, conducting, and following through on Performance Review discussions. 1.
PERSONAL PREPARATION I have reviewed mutually understood expectations of job duties, projects, goals, standards, and any other predetermined performance factors pertinent to this Performance Review discussion. I have observed job performance measured against the mutually understood expectations. In the process, I have done my best to avoid the following pitfalls: •
Bias/prejudice
•
The vagaries of memory
•
Overattention to some aspects of the job at the expense of others
•
Being overly influenced by my own experience
•
Trait evaluation rather than performance measurement
I have reviewed the employee’s •
Skills
•
Work experience
•
Training
I have determined the employee’s performance strengths as well as areas in need of improvement, and have Accumulated specific, unbiased documentation that can be used to help communicate my position.
•
Limited myself to the points that are the most important.
•
Prepared a possible Development Plan in case the employee needs assistance in coming up with a suitable one.
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I have identified focus areas for setting goals for the next Performance Agreement period. I have given the employee advance notice of when the Performance Review discussion will be held, so that he or she can prepare. I have set aside an adequate block of uninterrupted time to permit a full and complete discussion. 2.
CONDUCTING THE PERFORMANCE REVIEW DISCUSSION I plan to begin the discussion by creating a sincere, open, and friendly atmosphere. This includes •
Reviewing the purpose of the discussion
•
Emphasizing that it is a joint discussion for the purpose of problem solving and goal setting
•
Striving to put the employee at ease
In the body of the discussion I intend to keep the focus on job performance and related factors. This includes •
Discussing job elements—employee strengths, accomplishments, and improvement needs—and evaluating results of performance against objectives set during previous reviews and discussions.
•
Being prepared to cite observations for each point I want to discuss.
•
Encouraging the employee to review his or her own performance.
•
Using open-ended, reflective, and directive questions to promote thought, understanding, and problem solving.
I will encourage the employee to outline his or her personal plans for self-development before suggesting ideas of my own. In the process, I will •
Try to get the employee to set development and improvement targets.
•
Strive to reach agreement on appropriate Development Plans that detail what the employee intends to do, a timetable, and the support I am prepared to give.
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I am prepared to discuss work assignments, projects, and goals for the next Performance Review period and will ask the employee to come prepared with suggestions. 3.
CLOSING THE DISCUSSION I will be prepared to make notes during the discussion for the purpose of summarizing agreements and following up. In closing, I will
4.
•
Summarize what has been discussed.
•
Show enthusiasm for plans that have been made.
•
Give the employee an opportunity to make additional suggestions.
•
End on a positive, friendly, harmonious note.
POST-REVIEW FOLLOW-UP As soon as the discussion is over, I will record the plans made, the points requiring follow-up, and the commitments I have made. I will provide a copy for the employee. I will also evaluate how I handled the discussion: •
What I did well
•
What I could have done better
•
What I learned about the employee and his or her job
•
What I learned about myself and my job Partners in Performance
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PUTTING IT ALL TOGETHER: SKILL PRACTICE If you are completing this book in a classroom setting, you will now be given the opportunity to verbally deliver the Performance Agreement/Performance Review you developed during this book. If you are completing this book as self-study, take the opportunity to ask colleagues to act in the role of employees. Practice will perfect your skill in verbally delivering the Performance Agreement/Performance Review you developed in this book.
Action Plan
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Partners In Performance How will you apply the concepts from each of this book’s sections to your current position? What You Learned
How You Will Use It
Section 1. Why Partner for Performance?
Section 2. Developing Performance Goals
Section 3. Building Commitment
Section 4. Preparing for the Performance Review
Partners in Performance
Section 5. Effective Performance Reviews
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SUGGESTED ANSWERS TO CASES CASE STUDY #1: Making Difficult Choices (Page 7) 1. Performance Agreements would provide a way to ensure that Joe and Jim are working on the things that most need to be done. They are drifting because (1) expectations have not been clearly stated; (2) they are getting by with doing less; (3) Harry is reluctant to deal with them. Working together on Performance Agreements will help all three confront the situation, and allow Harry to face the issue of reduced performance. They can then work together to create Action Plans to improve the situation. 2. Positive results should be shown within six months. Performance Agreements with specific goals can help. If they do not, Harry Phillips should be removed from his supervisory position.
THIS MAN NEEDS A PARTNER IN PERFORMANCE!
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CASE STUDY #2: Who Will be Best at Performance Agreements? (Page 23) With proper training and guidance, Pat and Chris may both become excellent at Performance Agreements. At this point, however, Pat has better instincts about how a review should be approached. Employees need to know what is expected of them with Performance Agreements. When employees have an opportunity to participate in establishing goals and standards, they usually make good contributions. Contrary to Chris’s assumption, employees tend to set goals and standards too high, rather than too low.
CASE STUDY #3: What Upset Jess? (Page 60)
Partners in Performance
Jess is probably upset because Darcy seems to have an attitude that reflects “I know best—what could you possibly contribute to this discussion about your performance?” Jess was asked to leave a meeting to come in for his Performance Review discussion. This likely caught him by surprise; it also suggests that the discussion had not been scheduled in advance. He had no opportunity to prepare. Darcy’s approach seems to be “Here’s what is wrong and here’s what to do about it.” Jess has no opportunity for questions or input. How would you react under similar circumstances?
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CASE STUDY #4: Four Performance Reviews (Page 80) Situation 1 Express gratitude for the employee’s active participation. This employee has voiced the expected response if you follow the process described in this book. Most employees want information about their strengths and weaknesses and advice on how to invest their time more profitably for improvement. Don’t forget the importance of sincere praise when it is earned. Situation 2 Listen with an open mind. Without interrupting or arguing, try to find out why the employee is placing the blame elsewhere. Then move the discussion toward corrective action that can be achieved with the employee’s cooperation. Compliment the employee whenever a move is made toward accepting responsibility. Follow up closely, and schedule another Performance Review soon to measure changes in the employee’s point of view. Situation 3 Listen carefully to the employee. Then indicate your willingness to reexamine your data. If it develops that the employee’s information is more valid than yours, modify your position accordingly. If you believe the employee’s data is invalid or irrelevant, stand your ground and explain your position. Situation 4 Some individuals are intimidated by the Performance Review process, and a special effort is required to open things up. Others may think that their quick agreement will save them from a discussion of their faults. When employees are reluctant to talk, encourage them by asking questions. Ask them to suggest activities that would help them. Ask them to summarize their performance. Request their conclusions at the end of the session. Ensure that they provide input about their new Performance Agreement.
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