PerformanceManagement

TrainingManual

CorporateTrainingMaterials

TABLE OF CONTENTS

ModuleOne:GettingStarted...............................................................................................................4
WorkshopObjectives................................................................................................................................4
ModuleTwo:TheBasics(I)..................................................................................................................5
WhatisPerformanceManagement?.......................................................................................................5
HowDoesPerformanceManagementWork?..........................................................................................5
Tools..........................................................................................................................................................6
CaseStudy.................................................................................................................................................7
ModuleTwo:ReviewQuestions................................................................................................................9
ModuleThree:TheBasics(II).............................................................................................................11
ThreePhaseProcess...............................................................................................................................11
Assessments............................................................................................................................................12
PerformanceReviews.............................................................................................................................12
CaseStudy...............................................................................................................................................13
ModuleThree:ReviewQuestions...........................................................................................................14
ModuleFour:GoalSetting................................................................................................................16
SMARTGoalSetting................................................................................................................................16
SpecificGoals..........................................................................................................................................17
MeasureableGoals.................................................................................................................................17
AttainableGoals.....................................................................................................................................17
RealisticGoals.........................................................................................................................................18
TimelyGoals...........................................................................................................................................18
MonitoringResults..................................................................................................................................18
CaseStudy...............................................................................................................................................19
ModuleFour:ReviewQuestions.............................................................................................................20
ModuleFive:EstablishingPerformanceGoals...................................................................................23
StrategicPlanning...................................................................................................................................23
JobAnalysis.............................................................................................................................................24
SettingGoals...........................................................................................................................................24
Motivation..............................................................................................................................................25
CaseStudy...............................................................................................................................................25
ModuleFive:ReviewQuestions..............................................................................................................26
ModuleSix:360DegreeFeedback......................................................................................................28
Whatis360DegreeFeedback?..............................................................................................................28
Vs.TraditionalPerformanceReviews.....................................................................................................28
TheComponents.....................................................................................................................................29
CaseStudy...............................................................................................................................................29
ModuleSix:ReviewQuestions................................................................................................................30
ModuleSeven:CompetencyAssessments..........................................................................................32
CompetencyAssessmentDefined...........................................................................................................32
Implementation......................................................................................................................................33
FinalDestination.....................................................................................................................................33
CaseStudy...............................................................................................................................................33
ModuleSeven:ReviewQuestions...........................................................................................................34
ModuleEight:Kolb'sLearningCycle...................................................................................................36
Experience...............................................................................................................................................36
Observation............................................................................................................................................36
Conceptualization...................................................................................................................................37
Experimentation.....................................................................................................................................37
CaseStudy...............................................................................................................................................37
ModuleEight:ReviewQuestions............................................................................................................38
ModuleNine:Motivation..................................................................................................................40
KeyFactors..............................................................................................................................................40
TheMotivationOrganization..................................................................................................................41
IdentifyingPersonalMotivators.............................................................................................................41
EvaluatingandAdapting........................................................................................................................41
CaseStudy...............................................................................................................................................42
ModuleNine:ReviewQuestions.............................................................................................................43
ModuleTen:ThePerformanceJournal...............................................................................................45
RecordGoalsandAccomplishments.......................................................................................................45
LinkingwithYourEmployeesorManagers............................................................................................46
ImplementingaPerformanceCoach......................................................................................................46
KeepingTrack.........................................................................................................................................46
CaseStudy...............................................................................................................................................47
ModuleTen:ReviewQuestions..............................................................................................................48
ModuleEleven:CreatingaPerformancePlan.....................................................................................50
Goals.......................................................................................................................................................50
DesiredResults........................................................................................................................................50
Prioritization...........................................................................................................................................51
Measure..................................................................................................................................................51
Evaluation...............................................................................................................................................51
CaseStudy...............................................................................................................................................52
ModuleEleven:ReviewQuestions..........................................................................................................53
ModuleTwelve:WrappingUp............................................................................................................55
WordsfromtheWise..............................................................................................................................55
LessonsLearned......................................................................................................................................55
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Module One: Getting Started
PerformanceManagementisnotacompanyswayofemploying
micromanagingtechniquesthatstunttheprofessionalgrowthof
itsemployees.Butrather,itisastrategicapproachtoensuringthe
efficiencyandeffectivenessofanorganization.Whetheratthe
organizational,departmentaloremployeelevel,thegoalof
performancemanagementistomakesureallbusinessgoalsare
beingmetinasatisfactorilymanner.

Workshop Objectives
Researchhasconsistentlydemonstratedthatwhencleargoalsareassociatedwith
learning,itoccursmoreeasilyandrapidly.
Theobjectivesforthiscourseareasfollows:
Defineperformancemanagement.
Understandhowperformancemanagementworksandthetoolstomakeitwork.
Learnthethreephasesofprojectmanagementandhowtoassessit.
Discusseffectivegoalsetting.
Learnhowtogivefeedbackonperformancemanagement.
IdentifyKolbsLearningCycle.
Recognizetheimportanceofmotivation.
Developaperformancejournalandperformanceplan.

It is much more difficult to measure non
performance than performance.
Harold S. Geneen
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Module Two: The Basics (I)
Theeffectivenessofanorganizationintermsofwhetherornotitis
meetingitsmissionorgoalscanbedeterminedbyengagingin
performancemanagement.AccordingtotheU.S.OfficeofPersonnel
Management,performancemanagementconsistsoffive
components:Planningworkandsettingexpectations,continually
monitoringperformance,developingthecapacitytoperform,
periodicallyratingperformanceinasummaryfashion,and
rewarding.

What is Performance Management?

ThephrasePerformanceManagementwascoinedinthe1970sbyDr.Aubrey
Daniels,aclinicalpsychologist.Atthetime,heusedittodescribetechnology
andtheimportanceofmanagingbehaviorandtheresultofthebehavior.
Effectivemanagementwouldensureproperbehaviorsarebeingexecuted,
whichwouldinturnproducefavorableresults.Helaterassociatedthisapproachtotheinteractionsof
peoplewhetherinaformalorinformalsetting.
Withthepropertraining,managementcanmanipulatetheconditionsoftheworkplace(e.g.policiesand
procedures,availableskillstotrainandmotivateemployees)inordertomeasurethetruesuccessofthe
businessthatisthefinancialstandingofacompanyaswellastheindividualsuccessofitsemployees.

How Does Performance Management Work?

Thedrivetoimplementaperformancemanagementsystemisnotsufficient.
Managementaswellasemployeesmustputforththeeffortnecessaryto
makeithappen.Withallhandsondeckandtheobservationofthe
following,organizationscanbuildasuccessfulprogram.
Clearlyidentifythejobspurposeaswellasthedutiesassociated
withit.
Management is doing things right; leadership
is doing the right things.
Peter F. Drucker
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Determinegoalsandhowtomeasureoutcomes.
Rankjobpriority.
Characterizethestandardofperformanceforcriticalaspectsoftheposition.
Discussemployeeperformanceandprovidefeedback.Thisshouldatleastbedoneona
quarterlybasis.
Keeptrackofperformancerecords.
Ifnecessary,createanimprovementplantobetteremployeesperformance.

Tools
Itisunrealistictoexpectemployeestoperformatanoptimallevelwithout
providingthemwiththetoolstosucceed.Thefollowingtoolsarecrucialtothe
achievementofthesystem.
Modelofstandards:Creatingamodelthatclearlydefinesemployee
performancestandardshelpsthecompanyandemployeesavoidambiguitiesin
whatisexpected.Italsoenablesemployerstoprovidetheiremployeeswith
specificfeedback,whichisgreatlybeneficialbecauseitpotentiallyincreasesjobsatisfaction.
Whetherinwritingordeliveredverbally,performancestandardsareenforceable.Itis,however
advisablethattheyarecapturedinwritingtoavoidquestionsinthefuture.
Thereshouldbeasetstandardforeveryaspectofonesposition.Forexample,anemployeewhoisa
CustomerService/SalesRepresentativemaybeexpectedtotakeandsufficientlyanswertheservice
questionsof10customersanhour.Thisemployeemayalsoberequiredtoupsellproductsto50%ofthe
clientshetalksto.
Thereareseveralfactorstokeepinmindwhendevelopingthismodel.Performancestandardsshould:
Berealisticintermsofwhetherornotitcanbeattainedaswellaswhetherornotemployees
haveadequatetraining.
Bemeasurablewithregardtoquantity,quality,time,etc.
Beclearindefiningthepropermethodforgatheringperformanceinformationandhowit
measuresagainstthestandard.
AnnualEmployeeAppraisalDocument:Whileemployersmonitoremployeesperformancethroughout
theyearandprovidefeedbackandcoachingduringthatinterval,employersarealsoresponsiblefor
conductinganemployeeappraisal,whichisgenerallydoneonanannualbasis.Theappraisalallowsthe
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employertosummarizetheemployeesperformance,gaugejobsatisfaction,aswellasprepareforthe
future.
Coaching:Oncethestandardhasbeensetandperformancefeedbackhasbeenprovidedtothe
employee,itiscriticalthattheemployeroffersometypeofcoaching.Thepurposeofcoachingisto
strengthenareasofimprovementaswellasenhanceareaswheretheemployeeiscurrentlysuccessful.
Inordertoaccomplishthis,coachingmustbedoneinapositivemanner.Thewordsusedmustbuildand
notdestroy.Diplomacyisimportantwhenprovidingcoaching.Coachingpromotesemployeemotivation
aswellascontinuedsuccess.

Case Study
SinclairKnightMerz(SKM),oneoftheleadingprofessionalservicescompaniesin
theAsiaPacificregion,waslookingforwaystoincreaseitsabilitytomanageand
growitsworkforcecapabilities.Inthisindustry,companiescompetelargelyon
thebasisoftheirpeopletheirskills,theirabilitytoprovideexcellentclient
service,andthereforetheabilityofthecompany'sHRfunctiontoeffectively
acquire,developandretaintoptalent.Inpartbecauseitisemployeeowned,the
companyisintenselyfocusedonitspeople,emphasizinganopenand
independentculture.
Yetitisthisindependencethatposedachallenge.SKMknewthatitmustkeepafingeronthepulseof
itscultureatalltimes.Whatcouldthecompanydobetter?Howcoulditidentifyandretainitsbest
people?Howcouldworkforceplanningbedoneeffectivelysotherightworkforceskillscouldbe
developedandmarketedtoclients?SKMhadalwaysbeenaleaderinitsindustry,butcompany
executivesknewthatmaintainingthatpositionwouldtakeconstantvigilance.
SKMaskedAccenturetoimplementtheAccentureHumanCapitalDevelopmentFrameworktohelpits
HRfunctionidentifywaystoenhancehumancapitalcapabilities.Theframeworkisanassessmentand
analytictoolthatdrawsonbestpracticesandAccentureexperienceinthefieldsofhumanresource
development,learning,andknowledgemanagement,alongwithstateoftheartmeasurement
techniques.
TheAccentureanalysisaffirmedthestrengthofmanyofSKM'shumancapitalprocesses.Sevenofthe
thirteenhumancapitalprocessesscoredinthetopquartileofresults.Thecompanyalsoexhibited
strongfinancialresults:itscapitalefficiencyandreturnoninvestedcapitalwereamongthehighestof
thecompaniesthathavethusfarusedtheframework.
However,theAccentureanalysisdidmorethanjustconfirmexistingstrengths.Italsoidentifieda
numberofareasinwhichfurtherimprovementscouldprovidethecompanywithvitalcompetitive
advantagesintermsofworkforceperformance.
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AlthoughtheHRfunctionhadmanybestpracticesinplace,therewereanumberofimportant
discoveriesforcontinualimprovementofHR'simpactonthebusiness.Onewastheimportanceof
workforceplanningandrecruitment.Datacollectedfromtheframeworkrevealed,forexample,that
thoseorganizationswithmoreeffectiverecruitingcapabilitieshavesuperiorworkforceperformance
andemployeeengagement.AsaresultofworkingwithAccentureonthisinitiative,theHRdepartment
furtherrevieweditsmethodsofrecruitingtoptalent,andputinplaceaninternalcapabilityinkey
geographies.Theinitiativehasbeenimmediatelyeffective;ithasreducedtimetorecruitkeystaff,
increasedthefirm'sabilitytohandlelargerecruitingassignments,andsignificantlyincreasedthe
satisfactionofmanagerswiththeHRrecruitingservice.Theinitialpilotprogramhasbeenexpandedto
moregeography.
Theemployeeengagementresultsfromtheframeworkimplementationechoedanumberofthingsthe
companyhadfoundinitsowninternalsurveys.Leadershipdevelopmentcontinuestobeafocusitemto
improveemployeeengagement,asdoesrewardsandrecognition.
AccordingtoSKM'svicepresidentofHR,"TheAccentureHumanCapitalDevelopmentFrameworkhas
deliveredimportantinsightsaboutaligninghumancapitalprocesseswithbusinessresults.The
frameworkprovidedusaneffectivemethodofdeterminingwhereweshouldmostfocusourresources
andenergytohavethebestimpactonthebusiness."
Casestudyfrom:http://www.accenture.com/usen/Pages/insightemployeeperformance
management.aspx

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Module Two: Review Questions
1. WhenthephrasePerformanceManagementwascoinedbyDr.AubreyDaniels,whatdidit
initiallyreferto?
a) Medicine
b) Technology
c) Education
d) Law
2. AccordingtoDr.Daniels,performancemanagementanalyzeswhat?
a) Behavioronly
b) Theresultofbehavioronly
c) Behaviorandtheresultofbehavior
d) Attitude
3. Ifanemployeemeetsalloftheirperformancegoals,
a) Itisnotnecessarytocreateanimprovementplantoenhancetheemployeesskills
b) Itisstillnecessarytocreateanimprovementplantoenhancetheemployeesskills
c) Theyshouldbereprimandedfornotexceedingtheexpectations
d) Theemployeeshouldautomaticallybepromoted
4. Ataminimum,feedbackshouldbeprovidedtoemployeesona_____basis.
a) Weekly
b) Monthly
c) Annually
d) Quarterly
5. Performancestandardscanbebeneficialto:
a) Theorganizationonly
b) Theorganizationanddepartmentonly
c) Theorganization,departmentandindividualemployees
d) Noone

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6. Coachingismosteffective:
a) Beforetheemployeeunderstandstheperformancestandards
b) Never
c) Oncetheemployeeleavesthecompany.
d) Oncetheemployeeunderstandstheperformancestandards.
7. Whatisthenameofthecompanythatwasbeingassessed?
a) SinclairKnightMerz
b) Accenture
c) KnightSinclairMerz
d) MerzSinclairKnight
8. Aftertheassessment,itwasdiscoveredthatwhatarea(s)requiredimprovement?
a) Financialresults
b) Workforceplanningandrecruitment
c) Financialresultsandrecruitment
d) Workforceplanningandfinancialresults

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Module Three: The Basics (II)
APerformanceManagementsystemisonlyasgoodasitsevaluation
process.Itisnotenoughtoimplementaneffectiveprogramthatcovers
allthebasics,butyoumustbeabletomeasureitssuccessvia
assessmentsandperformancereviews.Thiswillinturnallowyouto
seewheremodificationsneedtotakeplace(e.g.intheperformance
managementsystemitself,performanceofthecompanyasawholeor
specificemployeeperformance).

Three Phase Process

KurtLewin,alsoknownasthefounderofsocialpsychology,introducedathree
phasetheoryofchangethatgoeshandinhandwithperformancemanagement.The
processincludesthefollowing:
PhaseOne:Unfreezing:Thisphaseisextremelyimportantasyouaimtounderstand
changeandhowittakesplace.Thisphaseiscrucialbecauseitincludescomingtothe
realizationthatchangeneedstohappen.Italsorequiresonetoleavethatwhichhasbeencomfortable
inordertomakethischangepossible.
Inorderforsomeonetodecidewhetherornottheyarewillingtochange,theymustweighthe
advantagesanddisadvantagesofthisbeingdone.ThisconceptiswhatForceFieldAnalysisisbasedon.
ForceFieldAnalysisconsidersthedifferentfactorsthatworkforandagainstthechangethatonemust
understandinordertomakeadecision.
PhaseTwo:Change:InLewinsmodel,hepointedoutthatchangeisnotaonetimeeventthattakes
place,butrathertheinnertransitionthattakesplaceasaresponsetotheoutwardchangesthatare
takingplace.
Duetotheuncertaintiesofwhatwillhappennext,thisphaseisconsideredoneofthemoredifficult
onestoachieve.Andbecauseofthis,itisimportantforemployeestohaveaccesstotrainingand
coachingtohelpeasethetransition.
The greater danger for most of us lies not in
setting our aim too high and falling short;
but in setting our aim too low and achieving
our mark.
Michelangelo
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PhaseThree:Freezing:Alsoknownasrefreezing,thisphaseistheestablishmentofnewnormsand
gainingstabilityaftertheinstitutionofchange.Thisphasecansometimesbemisleading.Itseemstobe
alongtermstate,wheninfactitisonethatcanchangetoUnfreezingwithinamatterofdays.So,
althoughthisstagecannotbeviewedasthelast,havingtheabilitytosuccessfullymakeittothispoint
isagreataccomplishment.Thiscouldalludetothefactthatitisbecomingeasierforsomeonetoadjust
tochange,whichiscrucialbecauseithappensregularly.

Assessments
Thereareavarietyofassessmentsthatcanbeutilizedtodetermineskill,
knowledge,andability.Theseassessmentscanbeadministeredwhenthe
individualisaprospectiveemployeeoranactualemployee.
TypesofAssessments
PreScreening:APreScreeningAssessmentcanbeusedtofindoutinformationonaprospective
employeesskillsandknowledgebeforecommittingtohirethemandthiscansavetheemployercostly
mistakesdowntheroad.
360DegreeReview:Asitsnameimplies,thistypeofassessmenttakesacomprehensivelookatan
employeewithregardtotheirworkperformance.Thisinformationcanbeattainedbyinvolvinga
diversepoolofindividuals,withvaryinglevelsofinteractionwiththeemployee(e.g.supervisor,peers,
clients,etc.)
Knowledge:Thistypeofassessmentgenerallytakesonaquestionnaireformat.Itallowstheemployer
toaskspecificquestionsontopicsrelatingtothebusiness,usuallyintheformofmultiplechoice
questions.

Performance Reviews
AccordingtoEntrepreneur.com,aperformancereviewisdefinedasAnanalysisof
anemployeesworkhabitsundertakenatafixedpointintimetodeterminethe
degreetowhichstatedobjectivesandexpectationshavebeenreached.
Whileeachcompanyhasitsownideasofwhataperformancereviewshould
include,herearestepsthatshouldbetakenwithregardtoallperformance
reviews:
Preparation:Boththeemployerandemployeemustbeadequatelygroomedforthereview.
Thismayinvolvereviewinganynotes,engaginginaoneononediscussionwiththeemployee
beforehandorsimplymakingtheemployeeawareofthereviewinadvance.
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Prioritizethemeeting:Toshowtheemployeethatthisreviewisatoppriority,thereshouldbe
aformalagendathatisadheredto.Thereshouldalsobeasfewinterruptionsaspossible.
Encouragepositivity:Whenspeakingtotheemployee,invokepositiveresponsesby
communicatinginapositivemanner.
Clarity:Besurethepurposeofthemeetingisclearfromthebeginning.
Expectations:Reviewthejobdescription,whyitisneeded,andthestandardsofperformance.
Explainemployeesperformance:Discusstheemployeesactualperformance,whetheritfell
below,metorexceededexpectations.Givespecificexamples.
Employeefeedback:Allowtheemployeetoexpresstheirconcernsorsuggestions.
Goalsetting:Discussgoalsforareasthatrequireimprovement.Iftherearenoareasfor
improvement,creategoalstoenhancetheknowledgeandskillsoftheemployeeforpersonal
developmentaswellasbetteringthedepartment/companyasawhole.
Followup:Determinetheappropriatemethodandortimeforfollowup.
Closing:Themeetingshouldendpositively.Reviewthecontributionstheemployeeismakingto
thecompany.Informemployeethatyouarewillingtohelpinanywaynecessary.

Case Study
XYZPaperCompanycommencedoperationwith10employeesinJanuary2009.At
itsfirstyearmark,CEO,JaneDavisdecideditwasnecessarytoevaluatethe
performanceoftheemployeestoensureeveryoneisontargetforreaching
companygoalsforthefiscalyear.
Aftercarefulconsideration,Janerealizedthatunlesschangeinemployeeperformancewas
implemented,thecompanywouldfall20%belowitsprojectedsaleslevel.Janeemployedanincentive
programinwhichemployeesreceivedapercentageofeverysalemade.
Aftertheincentiveprogramwasinplaceforayear,Janeexecutedassessmentsandperformance
reviewsforeachemployee.Theyrevealedthatthecompanywasontracktonotonlymakeupthe20%
pitfallfromthepreviousyear,butalsosecurea10%increaseinsales.

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Module Three: Review Questions
1. Whatistheorderofthethreephasechangemanagementmodel?
a. Unfreezing,change,freezing
b. Change,freezing,unfreezing
c. Unfreezing,freezing,change
d. Freezing,change,unfreezing
2. Thethreephasemodeltaughtinthislessonwasdevelopedbywhom?
a. JohnP.Kotter
b. KurtLewin
c. TomPeters
d. RobertWaterman
3. Whattypeofemployeeperformanceassessmentengagestheopinionsofavarietyofpeople
whointeractwiththeemployeeinquestion?
a. Knowledge
b. 360Degree
c. PreScreening
d. ProgramEvaluation
4. WhendoPreScreeningAssessmentsgenerallytakeplace?
a. Ontheemployeesfirstdayofwork
b. Beforetheprospectiveemployeeishired
c. Aftertheemployeeisfired/resignsbutbeforetheybeginapositionwithanewcompany
d. Eachdayanemployeecomestowork
5. Whichofthefollowingistrueaboutaperformancereview?
a. Itisonlynecessarytodiscusstheperformancestandardsthattheemployeedidnotmeet
b. Itisonlynecessarytodiscusstheperformancestandardsthattheemployeeexceeded
c. Itisonlynecessarytodiscusstheperformancestandardsthattheemployeebarelymet
d. Itisnecessarytodiscusstheperformancestandardsthatwerenotmet,metandexceeded
6. Whatmethodoffollowupshouldbeusedafteraperformancereview?
a. Email
b. Oneonone,facetofacemeeting
c. Theemployeespreferredmethod
d. Phonecall

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7. WhatdidXYZPaperCompanydecidetoimplementtohelpincreasesales?
a. Incentiveprogram
b. Masslayoff
c. Additionaltraining
d. Oneononecoaching
8. Ontopofmakingupthe20%thatthecompanywasbehind,bywhatpercentagediditincrease
sales?
a. 5%
b. 10%
c. 15%
d. 20%

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Module Four: Goal Setting
Everysuccessfulbusinessplanrequiresgoalsandobjectives.Goals
showthestrengthsandweaknessesofplansandprocedures.
Implementingregularlyevaluatedgoalsallowsleaderstounderstand
whereperformanceisandwhatneedstobeimproved.When
managingperformance,makesurethatyouimplementSMART
goals.

SMART Goal Setting

Peopleoftenfailtoreachtheirgoals.Thisusuallyindicatesthatthewronggoalsare
beingchosen.SMARTgoalswillimprovethechancesofachievingbothpersonaland
businessgoals.
SMARTgoals:
Specific:Goalsshouldhavespecificinstructions.
Measurable:Itshouldbeclearwhengoalsandobjectivesaremet.
Attainable:Impossiblegoalsarenotmotivating.
Realistic:Goalsneedtobesomethingpeopleareabletoworktowards.
Timely:Goalsneedspecifictimeframes.

Be the change you want to see in the world.

Mahatma Gandhi
If you dont know where you are going,
how can you expect to get there?
Basil S. Walsh
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Specific Goals
Goalsneedtobespecific.Employeesneedtounderstandexactlywhattheyare
expectedtodo.Itisnotenoughtosimplyaskforimprovement.Thisisageneralgoal.
Specificgoalsexplainwhoisinvolvedandwhatgoalshouldbeachieved.Itcanalso
identifyalocation,requirements,andreasoningbehindthegoal.
Example:
Generalgoal:Improveperformance.
Specificgoal:Meetwithyourmentoronceaweek.

Measureable Goals
Goalsneedtobemeasurableinordertobeeffective.Theyspecifyhowmuchorhow
many.Measurablegoalsallowemployeestoidentifywhentheyhaveaccomplishedtheir
goals.
Example:
Generalgoal:Increasesales.
Measureablegoal:Increasesales7percentoverlastyears.

Attainable Goals
Goalsmustalwaysbeattainable.Employeesneedgoalsthatchallengethembutmust
stillbewithinreach.Whengoalsareseenasunattainable,employeeswillgiveupon
themwithouteventrying.Themeasureofagoalshouldalwaysbewithinreach.
Unattainablegoal:Reduceturnoverby60percent.
Attainablegoal:Reduceturnoverby10percent.

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Realistic Goals
Employeesneedrealisticgoals.Itisimportantthatemployeesareabletoachieve
theirgoals.Thegoalsneedtorelatedirectlytoemployeeabilities,anditisimportant
tomakesurethattheyhavethetoolsnecessarytomeetthem.Breakinglargergoals
downtosmallerachievementswillmakethemmorerealistic.
Example:
RealisticGoal:Theproductiondepartmentcurrentlymakes200carsaweek.Withnewtraining,
theywillcreate225aweek.

Timely Goals
Goalsshouldalwayshaveatimeframe.Generalgoalsdonotestablishatimeframe.
Timeframesencourageemployeestomoveforward.Havingspecificdateswillalso
determinewhengoalsarereevaluated.
Example:
Generalgoal:Increasesales.
Timelygoal:Increasesaleswithinsixmonths.

Monitoring Results
Oncegoalsareestablished,itisimportanttomonitortheirresults.Thiswill
determinehoweffectiveaplanorstrategyis.Useabasicevaluationtodetermine
whatchangesneedtobemadeinaplanandreevaluateyourgoals.
Whattoevaluate:
Werethegoalsandobjectivesachieved?
Weretheyachievedintheestablishedtimeframe?
Whatisthefeedbackfromemployeesandleadership?
Whatarethefinancialgainsorlosses?

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Case Study
AstartupITcompanyneededtoincreaseprofitsandproductivity.The
managementteamcreatedasetofgoalstomotivateemployees.Onegoalwasto
doublesaleswithinamonth.Ratherthanachievingthegoal,salesactually
slipped.Thegoalwasresettoincreasesales10percentwithinamonth.Thesales
teammanagedtoincreasesalesby12percent.

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Module Four: Review Questions
1. WhatdoesSstandforinSMARTgoals?
a) Special
b) Specific
c) Safe
d) Scientific
2. WhatdoesTstandforinSMARTgoals?
a) Trackable
b) Tangible
c) Timely
d) Tasks
3. WhatdoesaSpecificgoalnotestablish?
a) Evaluation
b) Location
c) Requirements
d) Whoisresponsible
4. Sellmoreisa___________.
a) Specificgoal
b) Measurablegoal
c) Timelygoal
d) Generalgoal
5. Whichtypeofgoalanswershowmuch?
a) Attainable
b) Measureable
c) General
d) Realistic
6. Whatisameasurablegoal?
a) Decreaseturnover
b) Decreaseturnoverinamonth
c) Decreaseturnoverby10percent
d) Decreaseturnoverinproduction

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7. Whattypeofgoalwillcauseemployeestogiveup?
a) Unattainable
b) Realistic
c) Attainable
d) General
8. Whatisanattainablegoal?
a) Reduceturnoverby80percent
b) Reduceturnoverby60percent
c) Reduceturnoverby40percent
d) Reduceturnover10percent
9. Whatdorealisticgoalsrelateto?
a) Turnover
b) Measurability
c) Employeeabilities
d) General
10. Whatwillmakeagoalmorerealistic?
a) Makethemchallenging
b) Breaklargegoalsintosmallerones
c) Compilesmallgoalsintoalargeone
d) Makethemeasy
11. Timelygoalsdowhichofthefollowing?
a) Encourageemployeestoworktowardstheirgoals
b) Provideinstructions
c) Makegoalsmoreachievable
d) Explainresponsibilities
12. Whatisatimelygoal?
a) Reduceturnover
b) Reduceturnoverin6months
c) Reduceturnoverinproduction
d) Reduceturnover10percent

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13. Whatwillevaluatingresultsofgoalestablish?
a) Reviews
b) Employeeengagement
c) Talentreviews
d) Necessarychanges
14. Feedbackfrom_________isimportanttoevaluategoals.
a) HR
b) Employees
c) Employeesandmanagement
d) Management
15. Whatdidthecompanyresetthesalesgoalto?
a) 10percent
b) 12percent
c) 15percent
d) 20percent
16. Howmuchdidsalesincrease?
a) 10percent
b) 12percent
c) 15percent
d) 20percent

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Module Five: Establishing Performance Goals
Performancegoalsrequirestrategicaction.Tobeeffective,these
goalsshouldnotbehandeddowntoemployees.Itisimportantto
includeemployeesinthegoalsettingprocessandencouragethemto
meettheirindividualperformancegoals.Thiswillimproveindividual
andcompanyperformance.

Strategic Planning
Astrategicplandetermineswhereemployeesare,wheretheywanttobe,and
howtheywillgetthere.Itshouldembracethevaluesoftheorganizationand
alignwiththefollowingcompanyinformation.Theorganizationmustcreatea
strategicplanbeforecreatingperformancegoals.
CompanyStrategicPlan:
Vision
Mission
Philosophy
Goals
Objectives
Employeeperformancegoalsneedtoconsiderthecompanysstrategicplan.Individualperformance
goalsmustbeSMARTgoalsthatincludestrategiesandactionsforemployeestotake.
ExampleGoal:Stayinformedaboutinnovationsintheindustry,itcanhelpimproveproductivityby10
percentthisyear.
Performance is your reality. Forget
everything else.
Harold S. Green
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ExamplesofActions:
Attendtrainingclasses
Meetwithamentor
Communicateconsistently

Job Analysis
Ajobanalysisdetermineswhatisrequiredtodoaspecificjob.Itwillhelpdetermine
whichskillsandattributesanemployeeneedstocompleteajobsuccessfully.Ajob
analysiswillhelpdeterminewhotohire,howtotrain,andwhatcompensationajob
shouldreceive.Jobanalysesareinstrumentalindeterminingperformance.Research
apositiontodeterminethefollowinginformation:
JobAnalysis:
JobRequirements:
Responsibilities
Toolsorsystemsused
Reportingrequirements
EmployeeRequirements:
Training/Education
Skills
Aptitudes
Necessarycertification

Setting Goals
PerformancegoalsneedtobeSMARTgoals.Theyneedtoaddressbehavior,
competency,andresults.Remembertoinvolveemployeesintheirperformance
goals.
ExamplesofGoals:
Page25
Behavior:Employeeshavecomplainedaboutdistance.Communicatewithemployeesinperson
everyweek,ratherthanjustsendingemails.
Competency:Newequipmentisbeinginstalled.Performallthetrainingwithinthreeweeks.
Results:Salesaredown.Increasesalesby5percentthisquarter.

Motivation
Performanceisrelatedtomotivation.Motivationisthejobofeveryleader.Thereis
notasinglemethodformotivatingemployees.Peoplehavedifferentpersonal
motives,andleadersmustmeettheneedsofindividuals.
MotivatingTips:
Leadbyexample:Motivateyourselfbeforeyoucanmotivateothers.
Meetwithindividuals:Communicatewithemployeesdirectlytofindoutwhatmotivatesthem.
Rewardemployees:Findmotivatingrewardsforindividuals.
Delegate:Donotmicromanageemployees.
Inform:Informpeopleabouthowtheyaremakingadifferenceintheorganization.
Celebrate:Payattentiontoachievementsandcelebratewithemployees.

Case Study
Aretailchaincreatedindividualsalesgoalsforeachemployee.Theefforttoincrease
saleswascounterproductive.Uponevaluation,employeefeedbackcomplainedthat
theywerenotprovidedwithanynewsalesstrategiesordirection.Thecompany
trainedemployees,andsharednewsalestechniqueseverymonth.Employeesbegan
toreachandexceedtheirdailygoals.Profitsincreasedby8percentsixmonthsafter
adaptingtheperformancegoals.

Page26
Module Five: Review Questions
1. Individualstrategicplansreflect_________.
a) Valuesofthecompany
b) Themarket
c) Individualmotivation
d) Peerreviews
2. Whatisnotanexampleofastrategicaction?
a) Meetwithsupervisoronceaweek
b) Attendtrainingclasses
c) Improvesales10percent
d) Practicespeakingskills
3. Whatisajobrequirement?
a) Training
b) Responsibilities
c) Skills
d) Certification
4. Whatisanemployeerequirement?
a) Tools
b) Reporting
c) Responsibilities
d) Education
5. Performancegoalsneedtobe_________.
a) General
b) Specific
c) Timely
d) SMART
6. Whatdoperformancegoalsnotneedtoaddress?
a) Behavior
b) Competency
c) Time
d) Results

Page27
7. Howshouldmanagersnotmotivateemployees?
a) Threats
b) Example
c) Rewards
d) Meetingwithindividuals
8. Whodomanagersneedtomotivate?
a) Customers
b) Teams
c) Clients
d) Themselves
9. Whatdidthecompanyunsuccessfullyimplement?
a) Turnovergoals
b) Productiongoals
c) Individualsalesgoals
d) Newpolicies
10. Howmuchdidprofitabilityimproveafterstrategieswereimplemented?
a) 5percent
b) 8percent
c) 10percent
d) 12percent

.
Page28
Module Six: 360 Degree Feedback
360degreefeedbackisusefulforevaluatingperformance.Itprovides
evaluationsfromdifferentsourcestopaintaclearpictureofhowwell
anindividualperforms.Identifyingstrengthsandweaknesseswill
allowemployeestocontinuallyimprovehowtheyperform.

What is 360 Degree Feedback?

360degreefeedbackisanalternativemethodofreviewingemployees.Ratherthana
traditionalreview,employeesaregivenanonymousfeedbackfromsupervisorsand
peers.Managersfeedbackalsoincludesdirectreportsandreviewsfromemployees.
Individualsalsoevaluatethemselvesin360degreefeedback.Together,these
evaluationswillhelpimproveperformanceby:
Identifyingandenhancingstrengths
Identifyingareasthatneeddevelopment
HelpingEmployeessetgoals
Creatingactionplans

Vs. Traditional Performance Reviews

360degreefeedbackprovidesabetterpictureofperformancethan
traditionalreviews.Supervisorsperformtraditionalperformancereviews.
Traditionalreviewcanhaveanegativeimpactonperformance,if
employeesfeelitisnotfair.Thiscandamagetrustbetweenmanagersand
employees.Traditionalperformancereviewsalsodolittletoencourage
cooperationbetweenemployeesbecausecoworkersdonotinfluence
scoresontraditionalreviews.Peopleinpositionsofauthorityalsobenefitfrom360degreefeedback.
Feedback is the breakfast of champions.
Ken Blanchard
Page29
Traditionalperformancereviewsdonotalwaysgiveanaccuratedescriptionofemployer/employee
relationships.
The Components
360degreefeedbackevaluationformsaretypicallydoneonascaleof1to10.There
isaplaceforcommentsontheevaluationform.Thescoresfromsupervisors,peers,
employees,anddirectreportsareaveragedandcomparedwithaveragecompany
scores.HRtypicallyhandlesthereportingtomakesurethatthefeedbackremains
confidential.
Example:
ComputerSkills
1________2________3________4________5________6________7________8________9________10
Comments:
_____________________________________________________________________________________
_____________________________________________________________________________________

Case Study
Adepartmentmanagerofalargeproductioncompanyhadaproblemwith
productivityandmorale.Hisemployeereviewsseemedunsuccessful,andemployees
continuedtoargueamongstthemselves.Hethreatenedjobsanddisciplined,butit
didnotwork.Thecompanyinstitutedanew360degreefeedbacksystem.The
managerlearnedthathisemployeesfeltthathewasnotsupportive,andhefocused
onmotivatingpeopleinthefuture.Asemployeeslearnedtorelyoneachotherfor
performance,theystoppedarguingandproductivityincreased12percentthatquarter.

Page30
Module Six: Review Questions
1. 360degreefeedbackisnormally________.
a) General
b) Signed
c) Anonymous
d) Personal
2. Whatdoesamanagersfeedbackincludethatothersdonot?
a) Directreports
b) Peerreviews
c) Customerreviews
d) Supervisorreview
3. Whotypicallyperformsatraditionalreview?
a) Employees
b) Supervisors
c) Peers
d) Customers
4. Whatprovidesabettersenseofsupervisorandexecutiveperformance?
a) SMARTgoals
b) Generalreviews
c) Traditionalreviews
d) 360degreeperformance
5. Howarethescoresfromdifferentsourcesgraded?
a) Added
b) Averaged
c) Multiplied
d) Individually
6. Howdoesfeedbackremainconfidential?
a) Supervisorshandleit
b) Employeessignit
c) HRhandlesit
d) Customershandleit

Page31
7. Howdidthemanagercommunicatewithemployeesaboutperformance?
a) Calmly
b) Motivation
c) Threats
d) Directly
8. Howmuchdidproductivityincrease?
a) 5percent
b) 8percent
c) 10percent
d) 12percent

Page32
Module Seven: Competency Assessments
Competencyassessmentsareessentialtoperformance
management.Theseassessmentsmakeiteasiertohireand
promotetherightpeople.Theyalsohelpassessperformanceand
thedifferentcompetenciesthatemployeesneedtoimprove.Itwill
alsoidentifythetopperformers.

Competency Assessment Defined

Competenciesareasetofskillsandessentialknowledgethatarenecessaryto
performajobwell.Thecompetenciesforeverypositionshouldbedefinedbefore
hiring.Theyareimportanttothehiringandguidetheinterviewprocess.A
competencyassessmentassessestheskillsofemployeesandcomparesthemwith
previouslyestablishedcorecompetencies.AsupervisororHRprofessionaldecides
thescoreofeachassessment.Theperformanceisbasedonchosenindicatorsand
separatelevelforeachrating.Eachcompanyhasitsowncompetencyassessmentlevels,butmost
assessmentsincludethefollowingratings:
SampleRating:
Excellent
Meetsexpectations
Needsimprovement
Notapplicable
Haveopportunitiestoadvance

Competence, like truth, beauty, and contact

lenses, is in the eye of the beholder.
Dr. Laurence J. Peter
Page33
Implementation
Thereareseveralstepsthatyouneedtotakebeforeyouimplementcompetency
assessments.Successfulimplementationrequiresyoutocompleteallofthesteps.
Steps:
IdentifyCompetencies:Ascertainwhichcompetenciesareneededto
performajobandtheskilllevelofeachcompetency.
DevelopAssessments:Createafairmethodofassessmentthatconcentratesontargets.
Companygoalswilldeterminethetargets.
PracticeAssessments:Practiceusingassessments,justlikeanyotherskill.
AssessEmployees:Usethestandardsandassessmentstoreviewemployees.
Plan:Useactionplanstohelpemployeesdevelop.

Final Destination
Thefinaldestinationwillprovideapooloftrainedprofessionalswithstrong
performance.Eachcompanywillhaveitsownfinaldestinationthatdepends
onthegoalsandneeds.Reachingthestageoffinaldestinationmaymean
completelyoverhaulingthecompetencyprogram.Itcouldalsomeanplacing
moreattentiononactionplansandtraining.Italldependsonthe
competenciesrequiredforeachrole.Identifyingthegoalsoftheorganization
andthecompetenciesofeachpositionwillallowyourorganizationtoreachthefinaldestination.

Case Study
Yearlycompetencyassessmentsatalocalmarketingfirmarenotsuccessful.TheCEO
encouragesfeedback,butimprovementsareslow.Theoverallgoalistodoublethe
numberofhighperformingemployeeswhoexceedexpectations.
Thecompetencyassessmentswerealteredtoincludeactionplansalongwiththe
evaluations.Overthenextyear,manyemployeesbegantoshowimprovement.
Overall,thescoresimprovedalevelonaverage.

Page34
Module Seven: Review Questions
1. Whoassessescompetenciesbesidessupervisors?
a) HR
b) Coworkers
c) Peers
d) CEO
2. Whataremostassessmentratings?
a) Stages
b) Evaluations
c) Levels
d) Steps
3. Whatpartofthecompetencyassessmenthelpsemployeesimprove?
a) Actionplan
b) Direction
c) Peerreviews
d) Goals
4. Managersneedto_______usingcompetencyassessments?
a) Explain
b) Practice
c) Rewardemployees
d) Promote
5. Whatwilldeterminethefinaldestinationforeachcompany?
a) Goalsandneeds
b) Productivity
c) Profitability
d) Feedbackandcompetencies
6. Goalsand______mustbeidentifiedforthefinaldestination.
a) Expectations
b) Talent
c) Competencies
d) Motivation

Page35
7. WhatwasthegoaloftheCEO?
a) Increasehighperformance
b) Doublehighperformance
c) Triplehighperformance
d) Reducehighperformance
8. Howdidthecompetencyscoresimproveonaverage?
a) Onelevel
b) Twolevels
c) Threelevels
d) Fourlevels

Page36
Module Eight: Kolb's Learning Cycle
KolbsLearningCyclestatesthatlearningisbasedonexperience.The
learningcyclehasfourbasicelements:experience,observation,
conceptualization,andexperimentation.Itisimportanttobefamiliarwith
thelearningcycletoeffectivelymanageperformance,andguide
employeestogreaterachievements.

Experience
Kolbdescribestheimportanceofconcreteexperience.Concreteexperienceis
directexperiencethatinvolvesthesenses.Itisnotsimplyknowledgeabouta
subject.Handsontrainingisanexampleofconcreteexperiencethatemployees
learnatwork.Experienceandconceptualizationarethetwowaysthatemployees
takeinknowledge.

Observation
Kolbdefinesobservationasreflectiveobservation.Itiswhattheconcrete
experiencemeanstothepersonlearning.Watchingisthewaythatknowledgeis
transformedintomeaningforanindividual.Thisiswheretheconnotationsare
createdaslearnersseedifferentperspectives.Anexamplewouldbewatchinga
trainerperformataskagainorconsideringataskrecentlyperformed.
Experimentationisanotherwaytotransformknowledge.

Nothing is a waste of time if you use
experience wisely.
Auguste Rodin
Page37
Conceptualization
Abstractconceptualizationisawaytogatherknowledgeonasubjectwithoutdirect
experience.Thisinvolvesabasicunderstandingofasituationbyapplyinglogic.An
exampleofthiswouldbereadingatrainingmanual.Abstractconceptualizationis
havingtheknowledgeaboutsomething.

Experimentation
ActiveexperimentationisthefinalpartofKolbsLearningCycle.Here,people
learnbydoing.Theytransformknowledgebyactingonit.Anexampleofthis
wouldbeusinganewcomputerprogram.Activeexperimentationinvolvestaking
risksbasedontheknowledgepeoplehavegathered.Itisimportantthat
employeesbeallowedtotakeriskswhenlearning.

Case Study
Anewhirewastrainedatasoftwarecompany.Hewasshownhisworkspace,anda
trainerwalkedhimthroughtheprogramshewoulduseinthejob.Hethenwatched
otherpeopleperformdifferenttasks.Thetrainergavethenewhireamanualfor
eachprogram.Aftertraining,theemployeewasstillveryuncomfortablewiththe
programs.Hewasafraidofmakingamistake.Hisproductivitywasbelowaverage.

Page38
Module Eight: Review Questions
1. Whatisamethodforgainingknowledge?
a) Learning
b) Observation
c) Experience
d) Experimentation
2. Concreteexperienceinvolves________.
a) Observation
b) Books
c) Feelings
d) Senses
3. Whatisamethodfortransformingknowledge?
a) Reflectiveobservation
b) Senses
c) Books
d) Concreteexperience
4. Knowledgeistransferredto_______.
a) Feelings
b) Meaning
c) Senses
d) Experience
5. Whatisawaytogainknowledgewithoutdirectexperience?
a) Reflectiveobservation
b) Concreteconceptualization
c) Abstractconceptualization
d) Abstractobservation
6. Howdoesabstractconceptualizationwork?
a) Feelingsinterpret
b) Watchinginterprets
c) Experienceinterprets
d) Logicinterprets

Page39
7. Whatisactingonknowledgegathered?
a) Reflectiveobservation
b) Activeexperimentation
c) Activeconceptualization
d) Directexperience
8. Whichofthefollowingincludestakingrisks?
a) Activeexperimentation
b) Abstractconceptualization
c) Concreteexperience
d) Reflectiveobservation
9. Whatstageoflearningdidthenewhirenotexperience?
a) Reflectiveobservation
b) Concreteexperience
c) Abstractconceptualization
d) Activeexperimentation
10. Whatwastheresultofthetraining?
a) Poorattitude
b) Toomanymistakes
c) Poorproductivity
d) Theresultswerepositive

Page40
Module Nine: Motivation
Everyemployeeneedstobemotivatedinorderforperformance
managementtobesuccessful.Whileemployeesmusttakesome
responsibilityinmotivatingthemselves,managementcanhelp
motivateanddevelopindividuals.Practicingbasicmotivational
techniqueswillimproveperformanceasitboostsmorale.

Key Factors
Motivationismorethanbeingsatisfied.Motivationiswhatcausesemployees
togotheextramileandcommittoaprojectorcompany.FredrickHerzberg
identifiedthekeyfactorsthatdrivemotivationinemployeesacrossdifferent
fields.Payandworkconditionsweretiedtosatisfaction.Poorpayandwork
conditionsadverselyaffectproductivity,butpositivepayandworkconditions
dolittletoincreasemotivation.
Motivators:
Responsibility:Employeesshouldhaveasenseofownershipintheirwork.
Natureofthework:Thenatureoftheworkcanhelpmotivatepeople.
Recognition:Employeeeffortsneedtoberecognized.
Achievement:Peopleneedtofeelliketheyareachievingsomethingworthwhile.

Build upon strengths and weaknesses will
gradually take care of themselves.
Joyce C. Locke
Page41
The Motivation Organization
Peopleperformbetterwhentheybelieveintheircompany.Whenthevaluesofan
organizationmatchthepersonalvaluesofemployees,anorganizationwillbe
highlymotivated.Thisiswhysociallyresponsiblecompaniesareabletoeasily
attracttalent.Theyspeaktoanindividualsinternalmotivators.Businessesthat
addressinternalmotivationsaremorelikelytobehighperforming.
InternalMotivations:
Family
Environment
Success
Community
Personaltime

Identifying Personal Motivators

Eachpersonhasadifferentsetofmotivators.Somepeoplerespondbetterto
verbalpraiseandothersneedrewards.Itisimportanttomotivateemployeesona
personallevel.Thisiseasiertodoinsmallorganizations.Largecompanieswill
havetorelyoneachmanagertoidentifypersonalmotivators.
TechniquestoIdentifyPersonalMotivators:
Observation:Observehowindividualsrespondtodifferentmotivatorsandtakenotes.
Communication:Gettoknoweachemployee,andidentifypersonalmotivators.
Surveys:Haveemployeesfilloutsurveysthatidentifywhatmotivatesthem.

Evaluating and Adapting

Likeeverythingelse,itisessentialtoevaluateandadaptmotivationtechniques.
Thisshouldincludethefollowingsteps:
Surveys:Surveyswillshowthelevelofengagementandhowmotivated
employeesare.
Reviewmission:Comparethemission,policies,andprocedurestointernal
motivators.Aretheyaligned?
Page42
Development:Examinethenumberofemployeeswhohaveadvancedwithinthecompany.
Goals:Whetherornotcompanygoalsaremetisanindicationofmotivation.
Adaptmotivationtechniquesasnecessarytoimproveperformanceandengageemployees.

Case Study
Aprintingcompanyhadaproblemwithhighturnoverandlowproductivity.The
salariesarecompetitiveandtheofficeswererecentlyredecoratedtocreatea
pleasantatmosphere.Peopleseemedsatisfiedatfirst,buttheydidnotstayforthe
longterm.Asurveyrevealedthatemployeeswerenotsatisfiedwiththelonghours
andnumberofweekendstheywereexpectedtosacrifice.Managersassumedthat
thepayandenvironmentmadeupfortheseexpectations.Policieswerechangedto
betterpromoteworkandlifebalance.Turnoverdropped15percentthatyearandproductivity
increased,evenwithfewerdemandedhoursofwork.

Page43
Module Nine: Review Questions
1. PayInfluences________.
a) Satisfaction
b) Motivation
c) Management
d) Achievement
2. Whatisanotakeymotivator?
a) Responsibility
b) Workconditions
c) Recognition
d) Achievement
3. Peopleperformbetterwhenthey_____theircompany.
a) Areeducatedby
b) Arevestedin
c) Believein
d) Understand
4. Whatisnotaninternalmotivation?
a) Personaltime
b) Success
c) Family
d) Pay
5. Whatwillnotidentifypersonalmotivators?
a) Age
b) Surveys
c) Observation
d) Communication
6. Largeorganizationsrelyon________tounderstandwhatmotivatesindividuals.
a) Peers
b) Customers
c) Managers
d) Policies

Page44
7. Whatshouldbedoneifasurveyindicatesemployeesarenotmotivated?
a) Hirenewemployees
b) Adaptmotivationtechniques
c) Providemoretraining
d) Ignoretheresults
8. Whatisnotanindicationofmotivation?
a) Age
b) Meetinggoals
c) Surveys
d) Development
9. Theproblemwaswithturnoverand________.
a) Productivity
b) Profits
c) Sales
d) Customerservice
10. Howmuchdidturnoverdecrease?
a) 8percent
b) 10percent
c) 12percent
d) 15percent

Page45
Module Ten: The Performance Journal
Performancejournalscreateevaluationsthataremoreaccurateby
allowingemployeesandmanagertokeeptrackofperformance
throughouttheyear.Bothmanagersandemployeescankeep
journals.Thiswillhelpguideanddevelopemployeeswhochallenge
themselvesandimproveperformance.

Record Goals and Accomplishments

Itisimportanttorecordyourgoalsandaccomplishments.Evenminor
accomplishmentsneedtogointheperformancejournal.Seeingyour
accomplishmentswillencourageyou,andseeingyourgoalswillmotivateyouto
continueworkingtowardsthem.Comparinggoalsandaccomplishmentswillhelp
youfocusonwhatyouneedtodotoimproveperformance.
EmployeeRecords:
Accomplishments:Includerecognitionsandawards.
Challenges:Includerequestsfortrainingorotherhelptomeetgoals.
EmployerRecords:
Accomplishments:Detailsincludedocumentationandnotes.
Evaluation:Includeperformancegapsanddirectreports.

The best way to predict the future is to
create it.
Peter Drucker
Page46
Linking with Your Employees or Managers
Itisimportantthatemployeesandmanagersconnectforperformancemanagement
tobeeffective.Relationshipsoneverylevelmustremainprofessional.When
employeesandmanagersdonottrusteachother,performancesuffers.Itispossible
formanagerstolinktoemployeesperformancejournalsandseeanyinformation
thatemployeeschoosetosharewiththem.Thishelpsmanagersseethingsfroman
employeesperspectiveandcreateaccurateevaluations.Italsomakesemployees
partoftheevaluationprocess.

Implementing a Performance Coach

Aperformancecoachwillhelppeoplemeettheirneedstoimproveperformance.Inmost
organizations,managersactasperformancecoaches.Howwellmanagerscoach
performanceaffectsthequalityofemployeeperformance.Mangersmustcommunicate
effectivelywitheachemployeeandmotivatethatpersontoexcel.Thisrequiresa
combinationofencouragement,praise,andcorrection.Assessandcoachemployeesin
thefollowingareas.
CoachingAssessments:
Assessskillsandknowledge:Provideanynecessarytraining.
Assessthetools:Makesurethattheindividualhaseverythingnecessarytocompletehisorher
job.
Assesstheprocesses:Improveprocedurestohelpemployees,orinstructtheminusingdifferent
procedures.
Assessmotivation:Motivatepeopleonapersonallevel.

Keeping Track
Coachesneedtokeeptrackofemployeeprogress.Thiswillhelpthemcreate
strategiesthatwillchallengeemployeesandhelpthemgrow.Thereareseveralways
tokeeptrackofperformance.
TraditionalEvaluations
360Feedback
Journals
Page47
Performancelog
Aperformancelogiswhereyoucanmakenotesofanyobservationsregardingperformance.Thiswill
helpyoubecomeabettercoach.

Case Study
Aretailmanageralwayshatedgivingreviews.Itwasalwaysdifficulttosumupa
yearsworthofwork.Thelastcouplemonthswereallhecouldremember.Employees
sometimesseemedshockedbytheirevaluations.Somepeopleaccusedhimofhaving
favorites,andotheremployeesclaimedhewasnotfair.Salesalwaysdropped10
percentafterreviews.Hesetupaperformancejournalprogram.
Atthenextroundofreviews,hediscoveredthathemayhavebeenalittleharshon
somepeople.Hewasalsoshockedtoseethatothersonlyperformedwellthemonthbeforethereview.
Hewasabletoprovidespecificfeedbackinthereviews.People,generally,consideredtheprocessfair,
andsalesimproved5percentafterthereviews.

Page48
Module Ten: Review Questions
1. Whataccomplishmentsshouldemployeesrecord?
a) Encouragementandpraise
b) Praiseandrewards
c) Awardsandrecognition
d) Recognitionandencouragement
2. Whatdetailsdoemployersneedtorecord?
a) Praiseandcomplaints
b) Encouragementandnotes
c) Documentationandnotes
d) Recognitionanddocumentation
3. Whatwilldamageperformance?
a) Trustingmanagers
b) Distrustofmanagers
c) Trustingemployees
d) Journalentries
4. ______mayseeemployeejournalentriesiftheemployeesochooses.
a) Investors
b) Customers
c) Peers
d) Managers
5. Whichofthefollowingisnotawayforcoachestocoachemployees?
a) Threats
b) Praise
c) Correction
d) Encouragement
6. Whotypicallyservesasaperformancecoach?
a) CEOs
b) Customers
c) Managers
d) Peers

Page49
7. Wheredomanagersconsistentlyrecordtheirobservations?
a) Performancelog
b) Evaluations
c) 360Feedback
d) Journalentries
8. Whichisnotawaytokeeptrackofperformance?
a) Performancelog
b) Evaluations
c) 360Feedback
d) Surveys
9. Whatalwayssufferedafterreviews?
a) Profitability
b) Sales
c) Productivity
d) Labor
10. Howmuchdidsalesimprovewiththejournals?
a) 8percent
b) 20percent
c) 5percent
d) 10percent

Page50
Module Eleven: Creating a Performance Plan
Aperformanceplanisessentialtoperformancemanagement.Itisa
strategicplanthateachindividualneedstofollowtobecomehigh
performingemployees.Managersmustcreateaplanwithevery
employeetheyworkwith.Thereisalwaysroomforimprovement.

Goals
Establishprofessionalgoalsthatreflecttheneedsoftheorganizationandindividual.
Makesurethatemployeeshavethetoolstoreachthesegoalsandprovidethemif
theydonot.Thiswillimproveproductivityandperformance.
SettingGoals:
Determinewhatemployeesneedtoaccomplish.
MakeSMARTgoals.
Allowemployeestodevelopthegoalswithyou.
Example:
Enrollinaspeakingclasswithinthreemonthstofacilitatemeetingsbytheendoftheyear.

Desired Results
Theresultsofaperformanceplanarenotstrategies.Theyarewhatemployeesare
expectedtoachieve,andthisshouldbemadeclearintheperformanceplan.
Employeesareresponsibleforachievingthedesiredresults.Forexample,adesired
resultmaybetoconsistentlymeetsalesgoals.Theabilityorinabilitytomeetdesired
resultsdeterminesthelevelofperformance.Anindividualwhocannotmeetdesired
resultswillneedcoachinginthatarea.
He who fails to plan, plans to fail.
Proverb
Page51
Prioritization
Itisimportanttoprioritizegoals.Employeesshouldfocusonthetopthreegoals.
Thegoalsgivenpriorityneedtoalignwiththecompanygoalsandthetop
competenciesofeachposition.Theseusuallyinfluenceproductivityandcost.A
nonessentialgoalsuchasfilingattheendofeachdaydoesnottakepriority.Make
surethatgoalsdonotconflictwitheachother.
ExampleofPrioritizingGoals:
Traintousethenewsoftwarewithintwomonths.
Callclientseveryweektoincreasecustomersatisfaction.
Meetmonthlysalesgoalswithsocialnetworking,coldcalling,andscheduledmeetings.

Measure
Performancemustbemeasured.Thisisnotalwayseasybecausesometasksmaybe
subjective.Theremustbefairstandardsandmeasurementestablishedforeach
position.Youwillneedtoconsiderthejobrequirementsandemployee
competenciesthatyoupreviouslyestablished.Itisalsohelpfultomakethe
measurementscostspecific,whenpossible.Createaratingscaleforeachmeasure.
Itcanbenumberedornot.
MeasurementExample:
Thetotalnumberofcustomercomplaints.
Percentageofwastedproduct.
Metpersonalgoals

Evaluation
Comparethemeasurementsagainstperformancetoevaluateemployees.Itisalso
importanttoincludewhetherornotemployeesachievedtheirgoalsandmet
desiredexpectations.Thisinformationisnormallyincludedinanemployee
evaluationform.Formalreviewsaretypicallydoneeveryyear,butfrequent
informalreviewsaremoreeffective.Meetwithemployeesregularlytoevaluate
performance.Usethesamecriteriaasaformalevaluationtohelpdirectand
improveperformance.
Page52
Case Study
Anexpandingchainofbookstoreswaslosingcustomers.Thecompanyinstituted
aperformancemanagementprogramfocusingonproblemswithstore
management,andcustomerserviceemployees.Trainingfocusingondesired
resultsandcoachingtoachievetheresultswasgiven.
Thetasksandmeasurementofeachpositionwereredefined,andeach
employeewasgivenapersonalgoaltofocusonthatalignedwithcompanygoalofimprovingcustomer
service:
CompanyGoals:
Customerservice:Completetrainingandincreasesecretshopperscoresby10percentinsix
months.
Employeeswereconstantlyevaluatedandcoached.Aftersixmonths,moststoreshadreachedtheir
secretshoppergoals.

Page53
Module Eleven: Review Questions
1. Whoshouldhelpdevelopgoals?
a) HR
b) Management
c) Employees
d) Employeesandmanagement
2. Employeesmusthavethe_______toreachtheirgoals?
a) Feedback
b) Communication
c) Tools
d) Management
3. Whoisresponsibleforachievingdesiredresults?
a) Mangers
b) Employees
c) Peers
d) CEOs
4. Whoneedscoaching?
a) Someonewhodoesnotmeetdesiredresults
b) Someonewhomeetdesiredresults
c) Someonewhoexceedsdesiredresults
d) Someonewithoutdesiredresults
5. Howmanygoalsshouldbemadepriorities?
a) 3
b) 5
c) 7
d) 10
6. Goalsmustnot___________.
a) Bespecific
b) Alignwithcompanyvalues
c) Conflictwitheachother
d) Beprioritized

Page54
7. Whatwillneedtobeestablishedbeforemeasurements?
a) Evaluations
b) Competencies
c) Assessments
d) Priorities
8. Whenpossible,measurementsshouldbe______.
a) New
b) General
c) Numbered
d) Costspecific
9. Compareperformancewith________.
a) Priorities
b) Measurements
c) Assessments
d) Plans
10. Whichevaluationsaremoreeffective?
a) Yearly
b) Formal
c) Annual
d) Informal
11. Whatwasthetimeframeofthegoal?
a) 1month
b) 3months
c) 6months
d) oneyear
12. Howmuchwasthegoaltoimprovesecretshopperscores?
a) 10percent
b) 5percent
c) 15percent
d) 8percent

Page55
Module Twelve: Wrapping Up
Althoughthisworkshopiscomingtoaclose,wehopethatyour
journeytoimproveyourperformancemanagementskillsisjust
beginning.Pleasetakeamomenttoreviewandupdateyouraction
plan.Thiswillbeakeytooltoguideyourprogressinthedays,
weeks,months,andyearstocome.Wewishyouthebestofluckon
therestofyourtravels!

Words from the Wise

HaroldS.Geneen:Itismuchmoredifficulttomeasurenonperformancethan
performance.
WinstonChurchill:Howeverbeautifulthestrategy,youshouldoccasionallylookat
theresults.
DaleCarnegie:Themanwhostartsoutgoingnowhere,generallygetsthere.

Lessons Learned
Theobjectivesofthiscourseare:
Definedperformancemanagement.
Outlinedtheprocessoftalent.
Taughtwaystomotivateanddevelopemployees.
Exploredfeedbacktechniques.
Sharedgoalsettingtechniques.
Explainedthelearningcycleandjournals.
Lookedatperformanceplans.
Our chief want is someone who will inspire
us to be what we know we could be.
Ralph Waldo Emerson