Implementing a Performance Management System

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Chapter 7 Rolling Out the Performance Management System

7-1

Overview

Preparation

Communication Plan

Appeals Process

Rater Training Programs

Pilot Testing

Ongoing Monitoring and Evaluation

7-2

Preparation

Rolling out refers not only to launching a new system from scratch, but also, to revising and improving an existing one

7-3

Communication Plan Components

7-4

Communication Plan Answers the Questions:

What is Performance Management (PM)?

How does PM fit into our strategy?

What’s in it for me?

How does it work?

What are my responsibilities?

How does PM relate to other initiatives?

7-5

Cognitive Biases That Affect Communications Effectiveness

Selective Exposure

Selective Perception

Selective Retention

7-6

Recommended Appeals Process

7-7

Minimizing Unintentional Rating Errors

Rater Error Training (RET):

Make raters aware of types of rating errors they are likely to make

Help raters minimize errors

Increase rating accuracy

7-8

Rater Error Training (RET)

7-9

Frame of Reference Training (FOR)

Goal of FOR*

Raters develop common frame of reference

Observing performance

Evaluating performance

Expected results of FOR

Raters provide consistent, more accurate ratings

Raters help employees design effective development plans

*Most appropriate when PM appraisal system focuses on behaviors

7-10

Frame of Reference (FOR) Training

How does FOR training help counter biases in performance ratings?

What are some obstacles to implementing FOR training within organizations?

7-11

Frame of Reference Training (FOR)

Behavioral Observation Training (BO)

Goals of BO

Minimize unintentional rating errors

Improve rater skills by focusing on how raters:

Observe performance

Store information about performance

Recall information about performance

Use information about performance

7-12

Pilot Testing

Pilot testing is done before the system is implemented.

Provides ability to:

Discover potential problems

Fix them

7-13

Pilot Testing—Benefits

Gain information from potential participants

Learn about difficulties/obstacles

Collect recommendations on how to improve system

Understand personal reactions

Get early buy-in from some participants

Get higher rate of acceptance

7-14

Implementing a Pilot Test

Roll out test version with sample group

Staff and jobs generalizable to the organization

Fully implement planned system

All participants keep records of issues encountered

Do not record appraisal scores

Collect input from all participants

7-15

Ongoing Monitoring and Evaluation

When system is implemented, decide:

How to evaluate system effectiveness

How to measure implementation

How to measure results

Evaluation data to collect:

Reactions to the system

Assessments of operational and technical requirements

Effectiveness of performance ratings

7-16

Company Spotlight

BT Global Services used a three-step approach to rolling out a new PM system

Workshops that helped executives articulate why a new system was needed, what roles employees would play, and how those roles would contribute to the success of the company

Training line managers

Ongoing monitoring of the program using data from employee surveys, face-to-face meetings with line managers, and team meetings

7-17

Indicators to Consider

Number of individuals evaluated

Quality of qualitative performance data

Quality of follow-up actions

Quality of performance discussion meetings

System satisfaction

Cost-benefit ratio or return on investment (ROI)

Unit-level and organization-level performance

7-18

Quick Review

Preparation

Communication Plan

Appeals Process

Rater Training Programs

Pilot Testing

Ongoing Monitoring and Evaluation

7-19

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