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Category: Performance Management

  • Performance Management: Rewarding

    In the last byte, we looked at the key characteristics of an effective appraisal system. In today’s byte, we look at the aspect of rewarding performance.

    Generally, performance appraisal systems also act as feeders to rewarding decisions that the organization takes. We also have indicated in the discussion on learning that through reinforcement we could change the behavior of an individual. Extending this to the context of rewarding employees – if an organization wants good performance, it must reward good performance, and if it doesn’t want bad performance then it must not reward bad performance. If the company believes in values, teamwork, customer focus then they need to reward behavior related to these ideas.

    This looks simple, doesn’t it?

    If one were to ask a seasoned professional the answer would be “No”. Reward decisions are the most difficult to make! Surprised?

    Well the solution lies in realizing that not everyone works for money! While pay and reward for performance have value, a lot of other dimensions like – values, trust, fun and meaningful work all begin playing a key role. These elements make reward decisions most difficult and complicated decisions in organizations.

    We shall continue this discussion over the next few blogs.

  • Performance Appraisal System: Characteristics

    Over the last few bytes ending with the last byte, we have looked how a performance appraisals system has to be, and what impact of 360 degree feedback. In today’s byte, we look at some of the characteristics of an effective appraisal system.

    A simple reflection on the discussion thus far would help us identify the following key characteristics:

    • Validity
    • Reliability
    • Responsiveness
    • Flexibility
    • Equitability
    Here are some ways we could improve the effectiveness.
    Validity increases by capturing multiple dimensions of a person’s job performance
    Reliability increasing from capturing evaluations from multiple
    Responsiveness adds in the element of the person who is being evaluate have an input on the final outcome
    Flexibility leaves it open to modifications based on new information that surfaces
    Equitability ensures fairness in the evaluations against established performance criteria, regardless of differences.

  • Performance Appraisal System

    In the last byte, we looked at how 360 degree feedback could be made more effective. In today’s byte, we look at a key function of good performance appraisal system.

    A good performance appraisal system would need to keep the development of people and career enhancement in mind during execution. Developmentally, these appraisal systems should emphasize individual growth needs and future performance. Mutual trust between the supervisor and the follower employee is crucial for the success. The supervisor would have to be open to any challenge from the subordinate, keep an eye on the responsibility for execution. It is quintessential that the supervisor be skilled, empathetic listener and constantly encourages the employee.

    The employee must take active responsibility for future development and growth – the individual shouldn’t be frightened to challenge the supervisor’s idea about future development and should express his/her preference/goals.

    Thus, both the supervisor and the employee should look at their roles from the developmental angle to make the performance appraisal really impactful in the long run.

  • Performance-monitoring system: 360 Degree Feedback 3

    In the last byte, we looked at how the various inputs from stakeholders in a 360 degree feedback could give a comprehensive view of the individual’s performance. In today’s byte we look at how we can improve the effectiveness of the 360 degree feedback.

    We can look at the improvements in 2 broad categories:

    1. Addition of a Systemic Coaching component into the 360-degree feedback
    2. Separation of the performance feedback component from management development component.
    By focusing on enhanced self-awareness and behavioral management, the feedback – coaching model can enhance performance overall, as well as satisfaction and commitment and reduce the turnover of people.

    On the separation aspect, feedback component should emphasize quantitative feedback and performance measures, while the management development component should emphasize qualitative feedback and competencies for development.

  • Performance-monitoring system: 360 Degree Feedback 2

    In the last byte, we began our discussion on the 360 degree feedback, in today’s byte, we continue the discussion.

    By incorporating the inputs of all the stakeholders, we get a well-rounded view of the performance. This improves the accuracy of performance appraisal as it is based on multiple sources of information.

    It is extremely possible that an individual might be presenting a very positive, compliant and deferential performance to the superior. He/She might be completely indifferent to the peers and could be seen as demanding, abusive and cruel by the followers! Thus a 360 degree feedback could give a lot of information that otherwise doesn’t surface!

    Thus we could define 360 degree feedback as a process of self-evaluation and evaluation by a manager, peers, direct reports, and possibly customers!

    In the next byte, we look at how we can enhance the effectiveness of 360 degree feedback.

  • Performance-monitoring system: 360 Degree Feedback

    In the last byte we looked at how one would require providing feedback as part of the performance appraisal process. In today’s byte, we look in detail about 360 degree feedback.

    If we look at our work, we find that we engage with various people at different level. Each of the interactions expects a certain standard of behavior, and 360 degree feedback helps get this. The various stakeholders we interact could be classified into:
    1. Superiors
    2. Peers
    3. Followers
    4. Customers.

    The following diagram could help understand the reason we call it a 360 degree feedback

  • Performance-monitoring system 2

    In the last byte, we looked at some of the challenges one would face in monitoring performance. In today’s byte, we look at the feedback aspect in a bit more detail.

    One common challenge every individuals face is to discuss about their areas of improvements with someone else. This scenario is generally forced by the performance management in the form of feedback sessions. The challenge of feedback is one of the most stressful events for supervisors and employees – no doubt.

    To make the feedback session better, both the employee and the supervisor would require trying and making the session a constructive learning focused experience. The implications of these discussions are extremely long term and hence should be executed extremely well. It would definitely be useful to note the following when providing feedback (from the supervisor’s angle):

    1. Refer to specific details – this enhances acceptance
    2. Focus on changeable behavior than the individual personality attributes
    3. Plan for the session
    4. Start with Positives of the employee
    5. Do more of listening and help the employee come out with areas of improvement
    It is important to remember here that – the supervisor would need to balance the aspect of exploration, learning etc when providing specific feedback!

  • Performance-monitoring system

    In the last byte, we looked at the source of the three categories of problems. In this byte, we move on understand what performance monitoring system would keep note of.

    Performance-monitoring systems are varied in numbers. One category is that of result-oriented methods. Examples of these include the goal setting and MBO methods. There are some other methods that use modern technology for the purpose.

    While using modern technology – the accuracy of the measurement might increase; there are a host of questions on principles and morals that could arise when performance is being measured. An example could be – should the individual being measured really know that he/she is being measured?

    The Goal-setting and MBO methods are result oriented, but shift the emphasis to being subjective, judgmental on the results. The goals once set at the beginning and these form the bench mark on which the evaluation is done. The lop side here is that, in case a new opportunity arises to improve performance, these tend to be missed.

    In the next byte, we look at moving on to understanding the feedback aspect of performance measurement in greater detail.

  • Performance Management: Actual & Measured 3

    In the last byte, we looked at the various problems that arise in the assessment of performance. In this byte, we look at understanding these in greater detail.

    To help recap the source of various problems:

    • Deficiency results from overlooking important aspects of a person’s actual performance.
    • Unreliability results from poor-quality performance measures
    • Invalidity results from inaccurate definition of the expected job performance.

    The Reliability problem could further originate from any of the following sources:
    1. The effect of the situational factors such as mood or timing of the evaluation
    2. The Disagreement between evaluators about the methods
    3. The Temporary personal factors like fatigues, or ill health of the person being evaluated.
    It is to be noted that no existing system of performance appraisal is completely free from defects. Addressing the various emotions and defenses are essential to make the attempt of performance appraisal developmental in nature.

  • Performance Management: Actual & Measured 2

    In the last byte, we looked at the difference between what is actually performed by the employee and what aspect of the performance is measured.

    If we look at the diagram a bit closely and understand what aspects of errors could arise from such measurement?

    A first look at the diagram – would indicate 2 possible areas where the defects in measurement could arise from – these are the areas of the 2 circles which are not part of the true assessment area indicated. Refer the diagram below:

    The area of the circle of actual performance which has been over looked by the evaluator is essentially a deficiency in the measurement itself. This is called Deficiency Problem.
    The area of the circle of measured performance which has been outside the true-assessment area could have two sorts of problems:
    1. The reliability of the measurement
    2. The validity of the measurement
    We shall explore these in detail in the next byte.