Greetings and welcome to Smart Report

Volume 1 No 4, 26 April 2007

PERFORMANCE MANAGEMENT

PERFORMANCE APRAISALS...

… employees often find them subjective. Managers sometimes regard them as a nuisance in their already busy schedules. And both parties have been known to dread them and the endless form filling associated with them.

Performance appraisals, while potentially a valuable tool for companies, have attracted much criticism, with some managers proclaiming that they nurture short-term performance, wipe out long-term planning, build fear, destroy team morale and encourage rivalry and politics.

Yet, done effectively, the tool has the potential to boost the overall performance of a business and the individuals who work for it. Indeed, research has shown, companies that manage the performance of their people effectively are more likely to excel than those that don’t.

If the true goal of the performance appraisal is employee development and organizational improvement, consider moving to a performance management system.

Successful performance management can help companies plan better, retain top performers and align individual goals with those of the organisation.

HRsmart South Africa

- PERFORMANCE MANAGEMENT SOLUTIONS -

Superior performance is critical to the success of any organisation. Yet the painstaking performance appraisal process, with its piles of paper and complexity, is an unhappy exercise at best.

Put that behind you with HRsmart’s Performance Appraisal solution. This web-based software application has unparalleled ease of use, efficiency and functionality and will transform your existing performance appraisal form into a powerful performance management solution.



Features and Benefits at a glance...

Enhance Employee Performance – spend less time on paper and administration and more time with your staff discussing their job roles, expectations and appropriate performance measurements. Let our system automate the performance appraisal system for you. It will systematically take you through the process of planning, development, performance, assessment and review stages, prompting managers and employees alike when action is required from them.

Highly sophisticated, yet flexible system that accommodates different appraisal forms. Use your existing form or our “strategy-based” form. Tailor form by job, department or even by employee. Run multiple appraisals simultaneously on individual employees.

360° degree assessment – this option ensures a more objective assessment of an employee, as colleagues, suppliers, customers, etc. are included in the evaluation process of the individual.

Powerful Competency Builder – company-wide or job specific, build your own or select from our extensive library.

Flexible Scale – Use your current scale or choose from an innovative range of options, including our “sliding scale” which allows for finer distinctions in ranking.

Stay organised and meet deadlines – System reminders of review and assessment due dates, actions and follow-up meeting.

Easy Administration – complete tracking and documentation of all performance related activities. Quick and easy access to past appraisals Automatic generation of printed forms. Ensures uniform compliance with rules and regulations. Fully integrates with any HRIS system.

PERFORMANCE MANAGEMENT - 3 PITFALLS TO AVOID

Extracts from One to One : Dr G J Goodale

Too Much Scoring, Not Enough Discussing and Planning.

Performance management supports two objectives: 1) to evaluate the past and 2) to plan the future. But since the vast majority of organisations formally review employee performance once a year, managers try to achieve both objectives in one meeting. When performance management is an annual event, it becomes an annual failure, because in spite of their best intentions to discuss past performance and plan the future, managers find themselves delivering an annual report card and defending the scores to their employees.

Solution:
Score annually, but discuss and plan as often as necessary.

Employees, team members and supervisors should discuss the quality of recent performance and then set development plans in place to improve performance as an essential part of the job. A good Performance Management System should cater for this development plan and be able to track the progress of an individual through their development cycle, ensuring an effective and timely result. “Informal” performance management takes place during day-to-day feedback and discussion as supervisors and team members review work in progress. Remember when informal discussions take place with rating forms, there is the likelihood of staff becoming defensive, thus making the exercise ineffective.

Evaluation Forms Don’t Apply to the Employee’s Job

Because performance evaluation forms are typically created by human resources departments or consultants, supervisors often have difficulty applying them to their employees. Problems arise when evaluation forms ask supervisors to rate employees on personal traits, such as maturity, attitude, personality, initiative, dependability; or on competencies like interpersonal skill, job knowledge and organizational skill. First, employees often become defensive when they receive general personal comments like, “you rate only 3 on a 5-point scale of maturity,” or “you have poor interpersonal skills.” Second, employees often disagree with the supervisor’s ratings because the characteristic being evaluated wasn’t directly observed. Third, evaluations of employees in vague, subjective terms like personal traits and competencies may lead to charges of discrimination.

Solution:
Give Feedback about Job-related Results and Performance

One key to effective performance management is to discuss information that employees understand and can use to develop themselves and improve their performance. Therefore, employees, team members and supervisors should participate in creating the evaluation form. Two topics, results and performance, meet these standards and should generally form the bulk of the evaluation criteria. Softer competencies eg. Interpersonal skills or attitude should be evaluated by applying a more holistic and scientific approach eg. 360° questionnaires and assessments. A good Performance Management System allows for this flexibility. In addition a good system should be easy for employees and mangers to use in terms of making notes and keeping records, thus ensuring all parties have a ‘voice” during the performance management process.

Too Much Top-Down Communication.

Many supervisors dislike performance management because they feel like a punitive parent sitting in judgement. Unfortunately, annual review meetings force them into this role as they walk in with completed evaluation forms and begin the discussion.

Solution:
Listen and Probe First; Talk and Prescribe Later

An obvious way to avoid this top-down style is to encourage employees to talk about their own performance before the supervisor or team members give feedback. This can be done during day-to-day discussions and in “semi-formal” reviews conducted every few months or at the end of a project. The secret is to draw out the employee’s views of his or her performance and plans for improvement by asking questions. Most people are aware of what they do well at work and what they need to improve and, if given the opportunity, they will identify their areas of strength and also constructively criticize their own performance while making plans for improvement. If they don’t, supervisors and team members can propose ideas for improvement later in the discussion.

An Exercise in Upward Communication

The Initiate-Listen-Focus-Probe-Plan technique below provides a powerful tool to avoid such defensiveness. Try the following exercise with one of your employees or co-workers. This is not a performance review; it’s just a job-related discussion. Begin with a general question about his or her performance.

Initiate: “How would you rate your performance during the last six months?” or “How do you feel about your performance during the last quarter?”

If you get a general response like, “Fine,” or “Pretty good,” or “8 on a 10-point scale,” follow up with a more focused question. “What in particular comes to mind?” or “What have you been particularly pleased with?” Your objective is to discuss a positive topic raised by the other person.

Focus:“You mentioned that you were particularly satisfied with…. Let’s talk further about that aspect of your job.”

How Probe: “How did you approach…?” or “What method did you use?”

Why Probe: “How did you happen to choose that approach?” or “What was your rationale for that method?”

Results Probe: “How has it worked out for you?” or “What results have you achieved?”

Plan: “Knowing what you know now, what would you have done differently?” or “What changes would you make if you worked on this again?”

Most people questioned in this way have made specific suggestions to improve their performance in a part of their job that they feel they have done well. Furthermore, when asked about aspects of job performance to improve, they also set specific plans. Even more encouraging is that supervisors and team members report more relaxed and positive two-way communication in both “semi-formal” and formal performance discussions.
 

"I have yet to find a person, however senior his position, who did not do better work and put forth greater effort under a spirit of approval than under a spirit of criticism." Charles Schwab
 

In addition to Performance Management, HRsmart also provide a range of other business solutions, including:
Applicant-Tracking, Career Development and Learning Management.
For more information, please contact kgordon@hrsmartafrica.com or visit our website www.hrsmartafrica.com
HRsmart Talent Management Suite
“Powered by state-of-the-art technology, Supported by HR professionals”