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Performance Appraisals – Still Relevant? Neal Chamberlain

Performance Appraisals – Still Relevant? Neal Chamberlain. So, who is (or was) looking forward to their performance appraisal? Honestly?. Performance Management today. A mixed press Ritualistic/infrequent/poor quality/defensive?

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Performance Appraisals – Still Relevant? Neal Chamberlain

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  1. Performance Appraisals – Still Relevant? Neal Chamberlain

  2. So, who is (or was) looking forward to their performance appraisal? Honestly?

  3. Performance Management today A mixed press Ritualistic/infrequent/poor quality/defensive? Valuable/quality contact/good follow-up/open & honest? Vast amounts of time spent on it It should fuel performance – does it?

  4. Emerging Trends Deloitte: 70% of companies now reconsidering their PM strategy Accenture, Deloitte, Netflix, Google, Gap, Cargill, Adobe, Pfizer, Intel, Microsoft: all moving away from the established model Also 25 other large companies with over 1.5m employees worldwide

  5. So What’s Happening? Global economy – business cycles shortening Living in a VUCA world (Volatile, Uncertain, Complex & Ambiguous) Constant change is the new normal 12 month targets still relevant? Needs of Millennials Regular, good quality informal contact

  6. Discussion: PM in Your Organisation? How you would rate its ‘health’ re. effectiveness? Is it valued by staff? Evidence? Capability of your managers to deliver it?

  7. Issues with PM: downsides The mixed sandwich: start positive, then developmental/negative feedback/end with positive Qualitative & Quantitative More left brain organisations will love systems, or ‘if this, then that’ outcomes – ratings More right brain organisations will tend to focus on the quality of the PM session, on behaviours, on a rounded message

  8. Ratings

  9. Ratings Popular in past 20 years Clear ‘headline’ message on performance A relative measure

  10. Forced Distribution

  11. Ratings Inevitably, most people will be ‘average’, ‘satisfactory’, at best ‘good’: labelling issues Most people are not motivated by being so-described! 51 large companies now have removed ratings systems Encourages a comparison with others versus a comparison with self over time Research shows this is more effective in motivating to improve

  12. Forced Distribution Ratings can lead to forced distribution, typically in a nine-box matrix Can create a fear culture (‘will you survive next year?’) – consciously or unconsciously Tends to encourage competitive rather than collaborative behaviours, unless these are specified May depend on how adept your manager is in arguing your case But does tend to drive consistency

  13. Nine-Box Matrix

  14. Discussion: To Rate or Not? Pros and Cons of ratings Managers view? Staff view? ‘Guide’ or Forced Distribution – experience of either? Key learning?

  15. So, What’s the Alternative? More regular, informal meetings between manager and employee, can be called by either, may use: Strengths-based assessments Appreciative Inquiry A more coaching-driven approach Many organisations now moving in this direction

  16. Strengths-based Assessments Derived from work of Marcus Buckingham, Gallup ‘Now Discover your Strengths’ – StrengthsFinder tool Emphasizes identifying key strengths & playing to these – less focus on developmental needs May lead to moving on from company if no good fit (would have happened anyway?)

  17. Strengths-based Approach Achiever - one with a constant drive for accomplishing tasks Activator - one who acts to start things in motion Adaptability - one who is especially adept at accommodating to changes in direction/plan Analytical - one who requires data and/or proof to make sense of their circumstances Arranger - one who enjoys orchestrating many tasks and variables to a successful outcome

  18. Appreciative Inquiry Derived from work of David Cooperrider in 80s Focuses on the positive, & on questions which will inspire people: Where individual gets their energy from What alternatives there might be? What would the ideal look like? What activities & subjects bring out the best in you? Principle: focus on what’s not working will demotivate, & tap into intrinsic motivations to energise

  19. Appreciative Inquiry

  20. Coaching & Mentoring The establishment of a strong C&M environment should drive a strong performance & developmental focus Can overcome shortcomings with the PM system Requires commitment from the top Requires strong people skills in line managers

  21. But – how to address what’s not working? Begin with the individual’s account of performance Compare & contrast your own and input from 360 degree feedback/peer ratings? Gallup research suggests identified weaknesses/development areas will often only be advances to ‘satisfactory’ – i.e. almost never becoming a strengthGap: from ‘nice’ to ‘nice & honest’ culture

  22. Discussion: Alternatives/Add-ons to PM? Has your organisation tried any of these, or others? How did it go? Learning? Unintended consequences? Key influencers: David Rock: ratings Samuel Culbert: frequent, informal meetings Carol Dweck: ‘growth’ vs. ‘fixed’ mindset

  23. Key Issues with PM Probably...the system you use will be determined by the stage of evolution of the organisation Capabilities of line managers – ability/comfort with holding honest conversations What is important in the company/values Style of leader Current financial performance

  24. Further Issues More qualitatively-based reviews How to ensure consistency? Need to capture key messages in summary document HRIS systems which pre-suppose a trad PM system Can reconfigure, but at cost Priority messages from the top (‘what gets measured...’)

  25. Summary Trends emerging which emphasize quality & regular discussions This appears to be in line with needs of younger workers Internet-based companies/prof services vs. corporates & SMEs approach Level of development of the enterpirse - & capabilities of its line managers – may determine the path chosen, & resulting PM culture

  26. Thank you.Any questions?

  27. Managing Performance Peter Byrne Employment Partner Taylors Solicitors

  28. Why is managing performance important? • Understanding of what business is trying to achieve. • The employee’s role in achieving goals • The skills and competencies they need to fulfil their role • The standards of performance required • How to develop that performance and contribute to development • How they are doing individually • Identifying performance problems and what to doabout them.

  29. Why is managing performance important? • Starts at the recruitment stage – recruit the right people! • Make clear what the competencies and expectations of the job are • Is there a link between performance and pay? • Can adversely affect the way performance is managed

  30. Why is managing performance important? • Employee engagement promotes performance • Takes pride in their work • Promotes loyalty to their manager, team and/or the business • Prepared to go “the extra mile” • Not just “bottom line” measures such as profit • Continual management of performance by on-going dialogue involving both good and bad • Transmit vision and values

  31. Why is managing performance important? • Managers that facilitate and empower rather than control and restrict • Show appreciation, respect and commitment to development • Reward capabilities • Allow employees to voice their concerns • Behaviour throughout the business that is consistent with stated values leading to trust and integrity.

  32. How to introduce a managing performance system? • Get managers fully committed • Consult with all affected • Keep people involved • Make the process fair • Provide training to those with responsibility to manage effectively • Provide clear information about how the scheme operates

  33. How to introduce a managing performance system? • Set out clear objectives in a business plan • Communicate regularly with employees about the plans • Clearly identify the role of the line manager. • Counsel • Coach • Check meeting targets • Putting goals into context • May need to address sensitive and emotional issues

  34. How to introduce a managing performance system? • SMART • Specific – clear desired outcome • Measurable – be able to identify the desired outcome • Achievable – employee should be able to achieve the outcome • Relevant –relates to job, team, department • Timebound – identifies when the outcome is to be achieved

  35. How to introduce a managing performance system? • Examples • Improve customer satisfaction as far as possible • Improve overall customer satisfaction by 5% over last year based upon results of the after sales questionnaire sent to all customers • Concentrate on getting as many new customers as you can • Recruit 50 new customers before the end of this financial year

  36. How to introduce a managing performance system? • Competencies • Framework specific to the task in hand, defining what are core • Knowing the business • Communicating effectively • Embracing change • Focusing on goals • Developing self and others • Leadership • Teamwork • Creativity

  37. A managing performance system? • Personal Development Plan • The development needed • How this will be achieved • When it will be achieved • How it will be measured.

  38. A managing performance system? • Personal Development plan – opportunities • Formal training courses • Further education • Changing jobs • Special projects • Online learning • Coaching • Mentoring • Shadowing • Helps employees achieve their potential

  39. A managing performance system? • Performance Reviews • Regular informal meetings • Formal interim reviews • Annual appraisal • Keep records!! • Role of self assessment. • Views of colleagues, subordinates and customers

  40. Underperformance • Informal Approach • Regular feedback • Support and coaching • Difficult conversations • Capability/disciplinary action

  41. Underperformance • Formal action • Set out in writing • The performance problem • The required improvement • The timescale for improvement • A review date • Any support to be provided to assist the employee • Consequences of failure to improve

  42. Linking pay and rewards to performance • Encourages employees to perform at the highest level • Basic pay rise • Accelerated progression up a salary scale • A one-off bonus • Share options • Recognition awards • Development opportunities • Very sector specific

  43. Linking pay and rewards to performance • Vital to ensure that employees do not focus on short term goals • Looks back on achievements in the past rather than the future • Employees unlikely to admit weaknesses and development needs if it impacts on pay. • Make it objective and measurable and well documented

  44. Conclusion • Develop a system that is right for your business • Designed to help managers to manage • Improves performance of individuals and teams • Essence is the relationship between employee and manager • Both should know what needs to be done to meet their own goals and contribute to those of the business.

  45. Employment Law Update

  46. Discrimination- religious beliefs • Achbitav Centrum voorgelijkheid van kansen en voorracismebestrijding • Three years onto her employment at a Belgian security firm, a Muslim employee began to wear a headscarf at work • Company rule – wearing of any visible signs of political, philosophical or religious belief was prohibited • Claimant was dismissed

  47. Discrimination- religious beliefs • Neutrality policy not restricted to religious beliefs • At most, indirect discrimination • Capable of objective justification as an occupational requirement • Each case re justification will be fact specific.

  48. Discrimination- religious beliefs • Bougnaoui v Micropole SA. • Ms B was a design engineer • Practising muslim, and wore a headscarf when visiting clients, covering her head but leaving her face exposed • Client complained, so she was asked not to wear headscarf – and refused, and was dismissed.

  49. Discrimination- religious beliefs • Claim was dismissed by French Labour Tribunal • Dismissal well founded on a genuine and serious reason • Referred to Court of Justice of the EU • Was the requirement to remove the headscarf a “genuine and determining occupational requirement”? • Found her dismissal was direct discrimination • Occupational requirement must be absolutely necessary.

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