Managing Employee Performance – Assessing Performance
/0 Comments/in Employee Management/by David TownThis blog is part of a series of blogs focusing on the topic of “Managing Employee Performance”. Managing employee performance in the workplace is comprised of all of the interactions and activities that take place between an employer and an employee. These interactions and activities result in the achievement of goals and expectations, and more importantly, employee success and organizational success. The previous two blogs offered insights into how to set expectations. This blog will continue the topic of how to set expectations with a review of goal setting. We will now explore how to assess performance and provide employees with meaningful information on how they are doing.
Giving an Employee Feedback
The foundational purpose of feedback is to help modify a future action. In the case of employee performance in an organization, feedback is given to help a person succeed. This is accomplished by:
a) letting the employee know that they should continue a specific behavior. Doing so will enable them to continue meeting expectations (succeed). This can be called reinforcing feedback.
b) letting the employee know that a specific behavior is not meeting expectations. Dialogue with the employee to enable them to alter or modify future actions in order to meet expectations (succeed).
This concept seems straightforward. However, throughout my career I’ve encountered many managers who believe that if an employee is doing the job correctly there is no need to speak with them about their good performance because that’s what’s expected. Unfortunately, this kind of thinking can result in lowering the level of employee engagement and productivity.
What is the Value of Ongoing Progress Reports?
In their book “The Progress Principle”, Teresa Amabile and Steven Kramer1 share research into the value of giving ongoing progress reports (a.k.a. feedback) to employees. In the research, they reviewed the interactions that managers had with employees. They sorted the managers into two categories – those that provided ongoing progress reports and those that provided infrequent progress reports. The research results provided clear evidence that employees who reported to managers that provided regular progress reports experienced much higher levels of engagement and productivity. For the managers who chose not to provide regular progress reports, the levels of employee engagement and productivity were much lower. This research validates our intuitive assumption that employees have a desire to know how they are doing and would like to get feedback on how they’re doing on a regular basis.
Maintaining Dialogue
Many organizations seem to misunderstand the primary focus of managing employee performance. At the heart of this misunderstanding is the idea that the most important event in the performance management process is an annual meeting. This is where the manager spends most of the time talking about the past with supporting documentation to “fix” the person. In some cases the documents are sparse on facts and details. In some cases, there is back-and-forth dialogue. However, many employees experience a situation where the manager has already determined the employee’s rating.
The perception that can be created in this situation is that the employee’s point of view has little value in determining the overall outcome of how the employee is “rated”. In cases where there is significant underperformance, the organization introduces performance improvement plans (commonly referred to as PIPs) that are administered by the HR department. The lack of involvement and engagement with the employee’s perspective impedes the goal of achieving employee success and organizational success.
The most important event in assessing employee performance is the regular conversations you have when you observe their performance. This should be more of the primary focus than annual meetings where the emphasis is on tracking past performance.
The ongoing dialogue is the best way to help an employee succeed. Have intermittent meetings to review the conversations that have taken place in the past quarter or the past year. Developing a mindset and a system to manage employee performance that focuses on authentic, robust and helpful conversations will create better value for the organization. This is more beneficial than getting together once a year and filling out forms for the HR department.
Review
In summary, the first step in effectively managing employee performance is the process of setting expectations. Both the ongoing job accountabilities as well as the time framed goals. The second step is to assess employee performance. Subsequent blogs will offer insights on how to effectively manage conversations where the goal is to provide feedback to the employee that “lands”. We will also examine the importance of creating a motivating environment in order to help an employee succeed as part of an effective program for managing employee performance. As always, I welcome your feedback. You can connect with me via email or telephone or leave a comment right here on the site.
Until next time,
Dave
David Town, CHRL, ACC is a facilitator and coach of leadership and management principles that enable individuals and organizations to build greater leadership competency, resulting in higher performance and higher employee engagement. David has a particular focus on effectively managing conversations involving confrontation or conflict. As well, he provides insights and assessment strategies for integrating character competencies into leadership skills resulting in increased trust and reduced risk for leaders. David is a member of the International Coaching Federation and is President of Your Leadership Matters Inc.
Managing Employee Performance – Setting Expectations Part 2
/0 Comments/in Employee Management, Goals/by David TownThis blog is part of a series of blogs focusing on the topic of “Managing Employee Performance”. Managing employee performance in the workplace is comprised of all of the interactions and activities that take place between an employer and an employee. These interactions and activities result in the achievement of goals and expectations. The previous blog offered a few insights into how to set expectations. This blog will continue the topic of how to set expectations with a review of goal setting.
Motivating Employees Through Goal Setting
It is commonplace for organizations to use the goal setting process. They do this as a means to motivate employees toward the achievement of organizational objectives. However, the process of setting goals must be managed effectively in order for it to be valuable. In a study of organizational behavior theory on goal setting, there is plenty of evidence to suggest that the motivational value of goal-setting depends on two things:
- Whether the employer has set a goal that is realistically achievable
- Whether the employee receives feedback with respect to their progress in achieving the goal.
I will address the second point in a future blog on creating a motivation environment.
SMART Goals
A widely used acronym for setting goals is “SMART”. In order to make expectations clear, the goal should be:
Specific – clear articulation of expectations
Measurable – a means to assess achievement of the goals
Achievable – challenging but not so difficult that they can’t be achieved
Relevant – contributes to the achievement of a department/organisational goal
Time-framed – there is a clear date of completion (milestones can help as well)
An example of a goal that is not SMART would be saying, “let’s reduce costs”. This can be improved by instead saying, “let’s examine the top twelve areas of spending in the operations budget for our departments over the next three months with the goal of reducing year-over-year spending by 5%. This way we can meet the organizations objective of re-directing spending to an increased investment in research and development”.
The “A” in SMART stands for Achievable. Organizations risk undermining the motivation of their employees if the goals they set for employees are not achievable. They also risk other forms of bad behaviour. Stephen Covey, a noted author on the topic of principled leadership, was quoted as saying “There’s strong data that, within companies, the No. 1 reason for ethical violations is the pressure to meet expectations, sometimes unrealistic expectations.”
Setting Achievable Goals
So, how does an organization ensure that the goals they set for employees are achievable? I believe that there are two important strategies that organizations should employ in order to develop goals that are achievable.
Involve the Employees in the Process
Managers must strategize to ensure that they involve employees in the goal setting process. Management can start with macro goals and a plan of action for each department; however, they must involve the employees in order to get the employee’s commitment to the goal and to identify any barriers to the achievement of the goals that management may not be fully aware of. Also, having the employee participate in the goal-setting process will give them a much stronger sense of accountability for the goals because they help develop them.
Integrate a Job Duty Review
The second strategy needed for developing achievable goals is to integrate a review of the job duties into the goal-setting process. Organizations should review the expectations outlined in a job description at the same time as a review of time-framed goals. When it comes to thinking about managing employee performance and expectations, the only real difference between a job description and the annual goal-setting exercise is the timeframe.
A job description typically has an indefinite time frame. The expectations outlined in the job description remain in place until there is a significant shift in organizational structure or a change in the employee’s designated role. The expectations outlined in a goal-setting process typically have a start date and an end date. However, they take time to accomplish and should be integrated into the outlined job description of the employee.
Employers should provide an estimate of time time required to complete the goals outlined in the goal setting process. There should also be an acknowledgment of how the time required to achieve the goals will be integrated with the time required to achieve the ongoing expectations of the job. Employers should also acknowledge the time required to achieve the goals Failure to do this can lead to issue such as employee burnout or employees who pursue achievement of short-term goals at the expense of important ongoing job expectations.
Conclusion…
In summary, the first step in effectively managing employee performance is the process of setting expectations. This includes both the ongoing job accountabilities and the time framed goals.
The next few blogs will offer insights on the importance of sharing feedback on the employee’s performance in a manner that has the best chance of being embraced by the employee so that they are able to achieve success.
As always, I welcome your feedback. You can connect with me via email or telephone or leave a comment right here on the site.
Until next time,
Dave
David Town, CHRL, ACC is a facilitator and coach of leadership and management principles that enable individuals and organizations to build greater leadership competency, resulting in higher performance and higher employee engagement. David has a particular focus on effectively managing conversations involving confrontation or conflict. As well, he provides insights and assessment strategies for integrating character competencies into leadership skills resulting in increased trust and reduced risk for leaders. David is a member of the International Coaching Federation and is President of Your Leadership Matters Inc.
Managing Employee Performance – Setting Expectations
/0 Comments/in Employee Management/by David TownThis blog is the third in the series focusing on the topic of “Managing Employee Performance” that encompasses the interactions and activities that take place between an employer and an employee. The interactions result in the achievement of goals and expectations. The first two blogs emphasized the need for organizations to choose the most appropriate focus for performance management: the development of a relationship and work environment that enables the employee to achieve success. Many organizations struggle with performance management because the primary emphasis is on other purposes such as tracking performance on forms or establishing compensation. While these can be important benefits of managing performance, the most important objective is employee success. Performance management is not an event, it is an ongoing process.
4 Requirements for Being a Great Manager
Research by the Gallup Organization presented in the book “First Break All the Rules: What the World’s Greatest Managers Do Differently”, identified four core activities that are a necessary part of being a great manager:
- Select a person
- Set expectations
- Motivate the person
- Develop the person
Hiring the Right People
If we assume an employer has hired the right employee with the appropriate set of competencies, the next step is to set expectations. Fixing a hiring mistake should not be the primary focus of performance management. When we start with the assumption that we hired the right person, the process of setting expectations will concentrate on helping the employee succeed by meeting the employer’s expectations, while partnering with the employee to enable them to achieve their won goals. This blog will outline the important elements in developing a solid set of employee expectations.
Job Descriptions for Employee Tasks
Outlining employee expectations involves identifying the tasks that need to be completed in order to achieve the goals and objectives of the organization. These tasks and accountabilities are most often captured in a job description and should ideally answer the following questions:
- What is expected and why it is important – an outline of duties and tasks
- How to meet the expectations – key behaviours
- Results/outcomes – how success is measured
When establishing job descriptions, organizations often make the mistake of placing too much emphasis on activities and not placing enough emphasis on results/outcomes or boundaries of control. For example, cashiers in a retail store might be given the following duties and tasks as a list of job expectations:
- Quality customer service
- Processing customer orders through the point-of-sale cash system
- Providing refunds
These bullet points provide a good start however, they lack the level of detail and clarity required to help an employee really achieve success. For example, there is no indication of what decision-making authority the employee has with respect to providing refunds. If the employee encounters a situation where customer wants a refund without a receipt for an amount that is less than $10, the employee should be given some guidance as to whether they can make that decision on their own or if they need approval from a supervisor or manager.
This is an important question as it defines the quality of service that the customer will experience. If the employee has to go get approval and delays the customer, this could be viewed as a negative experience. It would not be in line with the expectations of the first bullet point – providing quality customer service. Organizations need to be diligent in providing not only the duties and tasks of the job. They need to include other expectations such as decision-making authority and expected outcomes.
Maintain Your Expectations
It is also important to ensure that there is alignment of expectations at three key points of interaction with employees. The expectations that are outlined in a job posting that was used during the hiring process should be exactly the same as the expectations used during the on-boarding and orientation. They should be exactly the same as the expectations used during ongoing performance discussions and annual performance review meetings. Although this sounds like common sense, there is often a substantial disconnect between these three processes. This can result in significant misunderstanding with respect to what the employee thinks that the employer expects from them. This ambiguity with respect expectations does not help the employee succeed by meeting the employer’s expectations.
The next blog will continue the dialogue on building clear expectations by addressing the issues of how organization’s goal setting processes intersect with their permanent job descriptions and how they are used to help an employee succeed as part of an effective program for managing employee performance.
As always, I welcome your feedback. You can connect with me via email or telephone or leave a comment right here on the site.
Until next time,
Dave
David Town, CHRL, ACC is a facilitator and coach of leadership and management principles that enable individuals and organizations to build greater leadership competency, resulting in higher performance and higher employee engagement. David has a particular focus on effectively managing conversations involving confrontation or conflict. As well, he provides insights and assessment strategies for integrating character competencies into leadership skills resulting in increased trust and reduced risk for leaders. David is a member of the International Coaching Federation and is President of Your Leadership Matters Inc.
References: First Break All the Rules: Marcus Buckingham, Curt Coffman, Simon & Schuster 1999 Page 59.