PERFORMANCE AND DEVELOPMENT: AGREEMENT AND REVIEW SUMMARY Name: Forename(s):
Job title: Department:
Reviewer’s name: Job title:
Objectives Performance measures
Competencies Agreed actions
Development need How it is to be met Action by Target completion PERFORMANCE AND DEVELOPMENT AGREEMENT
PERSONAL DEVELOPMENT PLAN
Figure 5.1 Performance management form (part 1)
Forms in organizations with performance-related pay (PRP) will often have an overall rating section. Those without PRP may still retain ratings as a means of summarizing performance.
The Royal College of Nursing appraisal and appraisal preparation forms are illustrated in Appendix B.
Managing Performance Management 83
PERFORMANCE AND DEVELOPMENT REVIEW Objectives Achievements
Competencies Actions taken
Development needs Actions taken
Comments by reviewer:
Comments by reviewee:
Signed: Date:
Figure 5.2 Performance management form (part 2)
Web-enabled performance management ensures widespread access and provides a standard- ized format for collecting and storing performance data. Web-based software can make it easy for managers and employees to record role profi les and performance agreements, including performance improvement and personal development plans and objectives, monitor progress against the plans, access performance documents online, and gather multi-source (360-degree appraisal) comments. All this data can be used to assist in performance reviews and record further agreements emerging from the reviews. The aim is reduce paperwork and simplify the process. A justifi cation for ‘e-appraisals’ was provided by Barlow (2003).
The justifi cation for e-appraisals (G Barlow)
The time-consuming process of administering old-style performance reviews no longer needs to exist within any organization. E-appraisals are an automated process that dramatically cuts the amount of time and effort that is spent on the administrative procedure by HR staff. The time and effort required to write professional appraisals by line managers can be greatly reduced by the more sophisticated e-appraisal
programmes. They enable employees to gain access via the internet to their record of performance as it develops throughout the year instead of having to rely on their memory of their successes, failures and learning needs.
Summers (2005) claims that: ‘In an internet-based performance management system, employ- ees have “line-of-sight” visibility. They can set their goals to align with those of other manag- ers, and they can see how these goals align all the way to the corporate goals.’ The system provides ‘the ability to pull information from multiple sources and aggregate it, to drive activ- ity by interacting with users and to make information accessible and visible in truly meaning- ful ways’.
However, Pulakos, Mueller-Hanson and O’Leary (2008) comment that a problem with auto- mated performance management systems is that in making evaluations easier to complete, they may result in a propensity for managers to get their performance management responsi- bilities done as quickly as possible and perhaps not spend the extra time in performance- related interactions with employees. And as Fletcher (2001) points out, the more impersonal nature of entering and communicating assessments via a computer could lead to greater objec- tivity but less sensitivity and tact in handling the situation – apart from anything else, there is no chance to observe the recipients’ reactions directly.
Examples of web-enabled performance management systems Raytheon
The Raytheon web-enabled system incorporates a ‘performance screen’ and a ‘performance and development summary’ as well as 360-degree assessment tools and details of how the Raytheon compensation system works. It enables goals to be cascaded down through the organization, although employees can initiate the goal-setting process using the performance screen as a tool. Employees can then document their accomplishments against their goals on their performance screen.
TRW Inc
As reported by Neary (2002) TRW Inc based their system on an ‘output form’ that included:
Managing Performance Management 85
Page 1 Biographical data
identifi cation information;
•
education;
•
experience summary.
•
Pages 2–3 Performance summary
accomplishments against previous year goals;
•
TRW behaviours;
•
TRW initiatives;
•
start appraisal process
check appraisee details
create final draft
appraisee approval
countersigner approval
review of objectives
&
development review appraisee
preparation
appraiser preparation
appraisal meeting
Royal College of Nursing
Figure 5.3 Royal College of Nursing: diagram of online performance appraisal scheme
legal and ethical conduct – diversity and cultural sensitivity;
•
previous year’s professional development activities;
•
employee comments;
•
overall performance – manager’s overall rating (four point scale) and comments.
•
Page 4 Development summary demonstrated strengths;
•
improvement opportunities;
•
performance goals for the upcoming year;
•
professional development activities for the upcoming year;
•
future potential/positions (employee perspective);
•
future potential/positions (manager perspective);
•
electronic sign off from both employee and manager.
•
Once managers have reviewed the employees’ input, they are required to sit down with their reports and have a face-to-face dialogue about the employee’s progress in the past year and plans for the coming year. To aid managers who may have many direct reports, a ‘manage employees’ function is included so that managers can see an on-screen overview of the status of each of their direct reports.
Each year, data from the previous year’s system is transferred to this year’s system, eliminating the need for additional data input.
The Zambon Group
Kathy Armstrong and Adrian Ward (2005) of the Work Foundation described how a multina- tional chemical and pharmaceutical company based in Italy with 2,300 employees developed a web-based performance management system.
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A web-based performance management system at Zambon (Kathy Armstrong and Adrian Ward, 2005)
Consultants developed a blueprint for integrating the performance appraisal form with procedures to ensure a greater level of objectivity and transparency. Crucial to the success was the selection of technology. The overall approach was to separate development of the infrastructure from the business application, so each could be developed by IT and HR respectively. In other words, IT wanted to maintain control of the services and databases in order to guarantee full compatibility with existing IT systems, both at a central and user level. HR wanted to maintain the procedural software without the need for costly software development. The two technologies chosen were Decisionality DecisionFlows and Microsoft InfoPath. Microsoft InfoPath is an application that enables information workers to create dynamic forms that can help to share and manage data easily from different sources. DecisionFlows, in the form of web services, is designed to let business people create decisioning components without the need for software programmers. The tool is underpinned by decision-tree science, ensuring logical completeness (must join up the dots) and logic compliance (prevents recursive logic).
This combination of DecisionFlows and InfoPath enabled the rapid conversion of the existing performance appraisal forms and associated procedures into one integrated
‘smart’ form. This application development approach saves considerable time and costs, because the current systems become a ‘black box’ and InfoPath provides a state-of-the-art composite application. HR used DecisionFlows to develop procedural instructions and automatically generate web services. This means that HR is able to change its procedures at any time and deployment by IT ensures consistency. The result is that the rating outcomes are derived from a simplifi ed series of questions and answers, thus enabling accurate, contextualized performance appraisal. HR supports the performance management process by providing training and coaching for managers and employees.