Professional Documents
Culture Documents
The following sections describe each phase of this process in more detail.
Performance Planning
Behavioral Expectations
As we will discuss below, effective performance management systems provide
behavioral standards (see Sample Performance Standards for
Communication Competency for an example) that describe what is expected
of employees in key competency areas. During the performance planning
process, managers should review and discuss these behavioral standards
with employees. It is important for managers to make sure employees
understand how the behavioral standards relate to their specific jobs.
Results Expectations
The results or goals to be achieved by employees should be tied to the
organization’s strategy and goals. The employee’s development needs should
also be taken into account in the goal setting process. Development goals can
be targeted either to improving current job performance or preparing for
career advancement. Example goals for an employee might be:
Complete project “X” by time “Y.”
Increase sales by 10 percent.
Successfully mentor employee “X” to develop skill “Y.”
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While goals and expected results can be established for the entire rating
cycle, many employees are in jobs that are characterized by continual change.
Under these circumstances, it may be necessary to set nearer-term goals in
order to ensure that they are sufficiently specific and achievable to have
positive motivating effects. In addition, feedback should be given and
appraisals can be performed as employees reach key milestones or achieve
goals during the rating period.
Shown below is a list of guidelines that the research literature has shown to
be important for establishing effective goals.
Ongoing Feedback
During the performance planning process, both behavioral and results
expectations should have been set. Performance in both of these areas should
be discussed and feedback provided on an ongoing basis throughout the
rating period. In addition to providing feedback whenever exceptional or
ineffective performance is observed, providing periodic feedback about day-to-
day accomplishments and contributions is also very valuable. Unfortunately,
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this does not happen to the extent that it should in organizations because
many managers are not skilled in providing feedback. In fact, managers
frequently avoid providing feedback because they do not know how to deliver
it productively in ways that will minimize employee defensiveness.
Research has shown that for feedback to have the most value, it needs to be
given in close proximity to the event. It does not help employees to receive
feedback nine months after something has happened. And, their performance
will likely not improve on its own while the supervisor is waiting for the end-
of-year review session to occur. Ongoing feedback can be informal and should
occur as part of the daily work routine.
Employee Input
Employee input has been used effectively in many organizations. It
sometimes takes the form of asking employees to provide self-ratings on
performance standards, which are then compared with the manager’s ratings
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and discussed. However, experienced practitioners have found that this type
of process and discussion can lead to increased defensiveness, disagreements
and bad feelings between employees and managers, if managers ultimately
rate employees less effectively than they have rated themselves. An
alternative way of collecting employee input is to ask employees to prepare
statements of their key results or most meritorious accomplishments at the
end of the rating period.
Evaluating Behaviors
Today, many organizations are using competency models as a basis for their
performance management systems. Competency models articulate the
knowledge, skills, abilities and other characteristics that are deemed to be
most instrumental for achieving positive organizational outcomes. Job
analysis techniques, such as job observations, interviews, focus groups and
surveys, are used to identify key competencies and associated critical work
behaviors.
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Organizations usually identify between five and 10 key competencies that are
linked to their strategic objectives and critical success factors. A reasonable
number of Performance Management competencies should be selected to
capture the most important aspects of performance. Related competencies
can be combined into larger competency factors.
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Evaluating Results
There is an increased focus on evaluating employee’s results as part of
performance management process. Key results to be achieved will vary for
different employees, depending on the nature of the individual’s job and
assignments. For example, some employees may be responsible for
successfully developing and implementing new programs or systems, others
may have specific levels of customer satisfaction outcomes they are expected
to reach, and yet others may have employee development or team leadership
results.
Below is an example five-point scale that could be used with the competency-
based communication performance standards shown previously. These
performance standards contain expectations for three different job levels
(entry-level employee, experienced employee, and first-level manager).
Within each job level, performance standards are provided describing three
different effectiveness levels (“Below Expectations,” “Meets Expectations” and
“Role Model”). The following scale would be used to evaluate an employee
against the performance standards for his or her specific job level (e.g., entry-
level employee).
A sample performance rating form is shown next page. This form is a generic
example of what an appraisal form might look like, but it contains the
various sections that would likely be included on most appraisal forms: key
work responsibilities, results/goals to be achieved, behavioral assessment,
results assessment, narrative, areas to be developed and development
actions, and signature blocks for managers and employees. On an actual
rating form, more space may need to be devoted to some areas, such as the
accomplishments to be evaluated, narrative section or the areas to be
developed and development actions.
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Performance Review
Assuming that feedback has been provided on an ongoing basis, the formal
performance review session should simply be a recap of what has occurred
throughout the rating period. In other words, there should be no surprises in
the performance review. During this meeting, managers should discuss with
employees their ratings, narratives and rationale for the evaluation given.
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Implementation
The most challenging and the most important part of developing an effective
performance management system is successful implementation. There are
several aspects to implementation, but at its core is providing a user-friendly,
value-added system that both managers and employees can and will use
effectively. The following sections discuss best practices on successful
implementation of performance management systems.
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Communicate
Communication should begin at the launch of the design process. Design
team members should inform their constituents that revisions to the
performance management system are planned, and gather input and
feedback on desired system features. If implementation of a new system
involves major changes that are potentially threatening to employees, a
change-management strategy will be required. For example, if there was
never an obvious link between performance and pay, and the new system will
explicitly link these, employees may feel threatened and resist or sabotage
the process.
Automate
Automation can greatly facilitate the performance management workflow
and substantially reduce the paperwork associated with this process. In fact,
evaluations of automated performance management systems show that they
are viewed positively by managers and employees, decrease workload, ensure
widespread access to performance management tools and provide a
standardized, structured approach to collecting and storing performance
data.
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Pilot Test
Another important factor in ensuring a successful implementation is to pilot
test the new process in a couple of units prior to large-scale implementation.
Pilot testing will show if the system functions smoothly and efficiently. It will
also show if managers and employees understand and support the process, or
if further change-management efforts are needed. Importantly, a pilot test
provides an opportunity to gauge reactions to the system and make
adjustments that will facilitate organization-wide implementation.
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Track completion of training. This involves verifying that all users of the
performance management system have been trained prior to implementation.
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Legal Considerations
It is important to be knowledgeable about professional and legal guidelines,
including relevant case law in any given country, pertinent to the design and
implementation of performance management systems, as following these
guidelines will enhance the defensibility of a system in the face of a legal
challenge.
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References
Arvey, R. D., & Murphy, K. R. (1998). Performance evaluation in work
settings. Annual Review of Psychology, 49, 141-168.
Beatty, R. W., Baird, L. S., Schneier, E. C., & Shaw, D. G. (Eds.). (1995).
Performance, Measurement, Management, and Appraisal Sourcebook.
Amherst, MA: Human Resource Development Press.
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Greguras, G. J., Robie, C., Schleicher, D. J., Goff, M. (2003). A field study of
the effects of rating purpose on the quality of multisource ratings. Personnel
Psychology, 56, 1-21.
Kahn, S. C., Brown, B. B., & Lanzarone, M. (1996). Legal guide to human
resources. Boston: Warren, Gorham & Lamont.
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Lee, J., Havigurst, L. C., & Rassel, G. (2004). Factors related to court
references to performance appraisal fairness and validity. Public Personnel
Management, 33 (1), 61-78.
Locke, E. A., & Latham, G. P. (1990). A theory of goal setting and task
performance. Englewood Cliffs, NJ: Prentice-Hall.
Longnecker, C. O., Sims, H. P., Jr., & Gioia, D. A. (1987). Behind the mask:
The politics of employee appraisal. Academy of Management Executive, 1,
183-193.
Martin, D. C., Bartol, K.M., & Kehoe, P. E. (2000). The legal ramifications of
performance appraisal: The growing significance. Public Personnel
Management, 29(3), 379-406.
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Spencer, L., & Spencer, S. (1994). Competence at work. New York: John
Wiley.
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