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  • Performance Management: Rewarding Implementation

    In the last byte, we looked at the pros and cons of using an individual based versus a group based reward system. In today’s byte we look at some of the aspects that a reward system would be required to consider when being implemented.

    We sometimes hear the conversation – “Even if I don’t work, I get my salary!” This is in some ways the subject matter of today’s discussion. If employees do not see the “connection” between their performance and the reward they begin believing that they are entitled to rewards regardless of how they perform. In many ways they begin to believe they are “entitled” to a specific reward rather than them “earning” the reward.

    The Performance Management and Reward systems in organizations are built on the premise that there is a visible connection between performance and reward. It should be noted that when there is a visible relation between the performance of the employee at work and the reward related to the work, effectively handing the performance and reward could act as a lever of change that the organization might be looking out for – that is, the organization gets the performance it rewards for!

    Thus, the organization would need to communicate the direct relation between performance and reward in order to be effective! It would require to leverage the strength of earning and develop that as a culture than, looking forward to an entitlement based culture.

  • Performance Management: Rewarding (Individual & Group)

    In the last byte, we looked at why rewarding employees is a critical organizational decision. In today’s byte, we look at whether rewarding would be good if done at the individual level or a group level.

    In an organization, invariable the completion of a task requires an employee to play 2 distinct roles:

    1. As an individual contributor towards the success of the assigned target
    2. As a group member working together towards accomplishing the target.
    When the question of compensating the performance of the employee arises, different cultures look at it differently. While the American influence looks at a verily individualistic reward system, the Japanese and Chinese cultures have a group based reward system. The individual system in extreme cases could end up leading to dysfunctional behavior in an organization, while the group bases system could kill initiative and creativity of the individuals in the group if not properly planned and executed.

    A good way out of this situation would be: At the individual level, a skill based and pay-for-knowledge system would be good; at the group level, gain-sharing plans emphasizing on reducing costs would be a good approach. However, it is important to note that a case by case approach towards implementation and some tailor made modifications are necessary.

  • Performance Management: Rewarding & Importance

    In the last byte, we initiated a discussion on the underlying challenges in rewarding performance. In today’s byte, we look at why rewarding or punishing a particular behavior is a key organizational decision.

    If we were to ask our self (as representatives of an organization), bestowed with the responsibility of rewarding an employee – it would be important to begin with a thought on the impact of the decision we set out to make. We would require to realize that the decision we are about to make would affect many people throughout the system; it wouldn’t be limited to the person being rewarded or punished. When we choose to reward or punish an employee, the impact is visible not just to the employee in question but also all those around the employee – there is an element of learning that occurs as people watch what happens to the employee.

    Allocation of the reward or the punishment would involve sequential decisions be made about which of the people to reward, how should one reward the employee, and also when to reward! These three dimensions of the reward decision pretty much shape how people in the organization behave.

    The next time, we are in the scenario of taking a call on rewarding/punishing an employee we would need to remember – people watch what happens to their peers who make mistakes or have problems with any change in the system – this acts as a feeder into their own behavior. Think through about what message is sent through the organization.

  • 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!