Performance Management For Small Employers

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Performance Management For Small Employers

• Peter Armoo
• Myron Clack
• Sherri Harris

The old adage, People are your most important
asset turns out to be wrong. People are not
your most important asset. The right people
are. by Jim
Collins
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Introduction

• It is critical to determine what constitutes
  performance in the workplace. The employee might
  view performance as what he/she does day in and
  day out on the job. On the other hand, management
  views performance as outcomes. Management is
  interested in what is achieved not the activities
  conducted.

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Introduction Contd

• For a small business involved in sales,
  management is more interested in how many goods
  were sold, the amount involved and the waste
  reduced. The question therefore is how a small
  business can attempt to mesh these two
  conflicting views of employee and employer to
  derive maximum output from his employees which
  will ultimately contribute to the advancement of
  the company. This is what our presentation
  attempts to provide answers for a small business
  without an established HR so it can perform
  effectively as a large organization

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Performance objectives

• Performance management begins with a job
  analysis.
• 1. Identify tasks and competencies
• 2. Establish what to measure
• 3. Who will do the measuring

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Job Analysis

• Job Study
• What does the job tasks requires
• 1. Competency
• 2 Culture
• 3 Tasks

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Performance Management Objectives

• Performance Management begins with employers
  objectives
• 1. Recruiting Radio ads, associations, job
  fairs, newspapers
• 2. Selection process who fits your workplace
  culture and possess the competencies
• 3. Hiring decisions who makes it, owner,
  manager, supervisor, combination

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Performance Management Tools

• .

• Tools available to help to identify, develop and
  implement performance management.
• 1. Assessments should answer the following
  questions
• a. Can the person do the job?

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Performance Management ToolsContd

• b. How will the person do the job?
• c. Will the person want to do the job?
• Other tools Background checks
• Training and Development

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Assessment Information

• 13 principles an assessment must addressed
• Use assessment tools in a purposeful manner As
  an employer, you must first be clear about what
  you want to accomplish with your assessment
  program in order to select the proper tools to
  achieve those goals.
• Use the whole-person approach to assessment
  Using a variety of tools to measure skills,
  abilities, and other job-relevant characteristics
  provides you with a solid basis upon which to
  make important career and employment-related
  decisions and minimizes adverse impact.

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Assessment Information Contd

• Use only assessment instruments that are unbiased
  and fair to all groups Employment decisions
  based on tests that are biased are likely to lead
  to unfair and illegal discrimination against
  members of the lower scoring groups.
• Use only reliable assessment instruments and
  procedures A reliable instrument will provide
  accurate and consistent scores.
• Use only assessment procedures and instruments
  that have been demonstrated to be valid for the
  specific purpose for which they are being used
  You must be sure that the instrument is valid for
  the purpose for which it is to be used.

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Assessment Information Contd

• Use assessment tools that are appropriated for
  the target population - An assessment tool is
  usually developed for use with a specific group
  it may not be valid for other groups. Tests
  should be appropriate for the individuals you
  want to test, that is, your target population.
• Use assessment instruments for which
  understandable and comprehensive documentation is
  available Test manuals should provide
  information about both the development and
  psychometric characteristics of tests. They
  should cover topics such as procedures for
  administration, scoring and interpretation, the
  recommended uses of an instrument, the groups for
  whom the test is appropriate, and test norms.

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Assessment Information Contd

• Ensure that administration staff are properly
  trained Administration staff should also be
  trained to handle special situations with
  sensitivity.
• Ensure that testing conditions are suitable for
  all test takers - Staff should ensure that the
  testing environment is suitable and that
  administration procedures are uniform for all
  test takers.

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Assessment information Contd
Provide reasonable accommodation in the
assessment process for people with disabilities
If reasonable accommodation involving test
administration cannot be made, consider
alternative assessment strategies. Maintain
assessment instrument security All materials
used in the assessment process, whether paper-and
pencil or computer-based must be kept secure.
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Assessment Information Contd

• Provide reasonable accommodation in the
  assessment process for people with disabilities
  If reasonable accommodation involving test
  administration cannot be made, consider
  alternative assessment strategies.
• Maintain assessment instrument security All
  materials used in the assessment process, whether
  paper-and pencil or computer-based must be kept
  secure.

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Assessment Information

• Maintain confidentiality of assessment results
  Assessment results should only be shared with
  those who have a legitimate need to know.
• Ensure that scores are interpreted properly
  Ensure that there is solid evidence to justify
  your test score interpretations and the
  employment decisions you make based on those
  scores. The test manual should provide
  instructions on how to properly interpret test
  results.

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Performance Management System

• Small businesses should have a performance
  Management System in place
• Many small businesses can not afford the expense
  of the same system as larger employers however,
  they should have some system in place
• This system should begin with training managers,
  supervisors and many times employees on
  completing the performance appraisal/self
  evaluation

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TRAINING GOALS

• Identify and discuss the organizations
  performance review process and methods for that
  fiscal year
• Focus on what has and has not changed
• Discuss the organizations policy on providing
  rewards and recognition

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Training Goals

• Identify Specific Appraisal methods such as
• (a) Goal setting and evaluation
• (b) Effective communication skills to create
  
• a supportive environment
• (c) Provide constructive feedback
• (d) Performance Planning
• (e) Performance Documentation

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Training Session

• During the session, evaluators have the
  opportunity to discuss how to use the employees
  self-assessment information to identify the
  relative contributions of their employees
• Employees learn how to document their
  contributions to the departments goals and
  objectives

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Training Session Performance Review

• Purpose
• (a) To provide employees with annual feedback
  and document performance in accordance with the
  organizations polices and procedures
• Performance reviews should NEVER be a substitute
  for counseling or disciplinary reviews

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Training Quarterly Feedback

• Purpose
• (a) To measure performance against goals
• (b) Identify impediments to success
• (c) Discuss performance standards
• (d) Discuss how management can facilitate
  productivity and high performance

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Guidelines for Effective Feedback

• Timely Feedback should be delivered shortly
  after the event or performance
• Descriptive Feedback encourages open discussion
  of performance
• Specific helps build on strengths and improve
  development areas.
• Behavioral Performance feedback should be
  focused on an individuals performance an
  behavior not personality traits.

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Feedback Guidelines

• Balanced Supervisor should look to provide both
  positive and constructive feed back

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Interim AssessmentReviewers Preparation

• As you review your employees performance and
  contributions since his/her last performance
  review, consider the following question, and be
  prepared to discuss these issues during your last
  review
• Question How does this employees performance
  contribute to the departments achievement of its
  strategic goals?

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Interim AssessmentReviewer Preparation

• Question How does this employees performance
  contribute to the departments achievement and of
  its strategic goals?
• What is the impact of the employees performance
  in the challenges faced by my Department?

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Interim AssessmentReviewer Preparation

• What actions or factors inhibited this employees
  performance
• What are the new skills employee has developed
  and demonstrated?
• How do these skills add value to our department
  or organization
• How can I facilitate this employees contribution
  to the achievement of our goals?

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Performance Appraisal (See Handout)

• Overall Performance 1 2 3 4 5
• 1 -Has not met some or all of the annual goals.
• 2 -Has met most of the annual goals, but has not
  met one or more significant goals.
• 3 -Fully met all annual goals.
• 4 - Exceeded one or more significant goals and
  met all others.
• 5 - Exceeded all the annual goals.
• Note Ratings 1 to 5 require specific
  explanation supporting the rating.

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Performance Appraisal (See Handout)

• Overall Performance 1 2 3 4 5
• 1 -Has not met some or all of the annual goals.
• 2 -Has met most of the annual goals, but has not
  met one or more significant goals.
• 3 -Fully met all annual goals.
• 4 - Exceeded one or more significant goals and
  met all others.
• 5 - Exceeded all the annual goals.
• Note Ratings 1 to 5 require specific
  explanation supporting the rating.

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Increase and Bonus

• 1 0 below annual goals
• 2 1 met some but not all goals
• 3 2 - 3 Fully met all goals
• 4 4 6 Exceeded one or more
  significant goals and met all other (may include
  a one-time bonus depending on departments
  budget)
• 5 above 6 Exceed all annual goals (dollar
  amount bonus and increase at manger discression).