“Management is doing things right; leadership is doing the right things” Peter F. Drucker

Performance Management is not a company’s way of employing “micro‐managing” techniques that stunt the professional growth of its employees. But rather, it is a strategic approach to ensuring the  efficiency and effectiveness of an organization. Whether at the organizational, departmental or employee level, the goal of performance management is to make sure all business goals are being met in a satisfactorily manner.
“Management is doing things right; leadership is doing the right things” Peter F. Drucker
The effectiveness of an organization in terms of whether or not it is meeting its mission or goals can be determined by engaging in performance management. Performance management consists of five components: “Planning work and setting expectations, continually monitoring performance, developing the capacity to perform, periodically rating performance in a summary fashion, and rewarding.”
With the proper training, management can manipulate the conditions of the workplace (e.g. policies and procedures, available skills to train and motivate employees) in order to measure the true succes of the business – that is the financial standing of a company as well as the individual success of its employees.
The drive to implement a performance management system is not sufficient.  Management as well as employees must put forth the effort necessary to make it happen. With “all hands on deck” and the observation of the following, organizations can build a successful program.
– Clearly identify the job’s purpose as well as the duties associated with it.
– Determine goals and how to measure outcomes.
– Rank job priority.
– Characterize the standard of performance for critical aspects of the position.
– Discuss employee performance and provide feedback. This should at least be done on a quarterly basis.
– Keep track of performance records.
– If necessary, create an improvement plan to better employees’ performance
It is unrealistic to expect employees to perform at an optimal level without  providing them with the tools to succeed. The following tools are crucial to the  achievement of the system.
Model of standards: Creating a model that clearly defines employee  performance standards helps the company and employees avoid ambiguities in  what is expected. It also enables employers to provide their employees with  specific feedback, which is greatly beneficial because it potentially increases job satisfaction. Whether in writing or delivered verbally, performance standards are enforceable. It is, however  advisable that they are captured in writing to avoid questions in the future. There should be a set standard for every aspect of one’s position.
For example, an employee who is a Customer Service/Sales Representative may be expected to take and sufficiently answer the service  questions of 10 customers an hour. This employee may also be required to upsell products to 50% of the  clients he talks to.
There are several factors to keep in mind when developing this model. Performance standards should:
– Be realistic in terms of whether or not it can be attained as well as whether or not employees  have adequate training.
– Be measurable with regard to quantity, quality, time, etc.
– Be clear in defining the proper method for gathering performance information and how it  measures against the standard.
Annual Employee Appraisal Document:
– While employers monitor employees’ performance throughout  the year and provide feedback and coaching during that interval, employers are also responsible for  conducting an employee appraisal, which is generally done on an annual basis. The appraisal allows the employer to summarize the employee’s performance, gauge job satisfaction, as well as prepare for the  future.
Coaching: Once the standard has been set and performance feedback has been provided to the  employee, it is critical that the employer offer some type of coaching. The purpose of coaching is to  strengthen areas of improvement as well as enhance areas where the employee is currently successful.  In order to accomplish this, coaching must be done in a positive manner. The words used must build and  not destroy. Diplomacy is important when providing coaching. Coaching promotes employee motivation  as well as continued success.
“The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low and achieving our mark” Michelangelo
A Performance Management system is only as good as its evaluation  process. It is not enough to implement an effective program that covers  all the basics, but you must be able to measure its success via  assessments and performance reviews. This will in turn allow you to  see where modifications need to take place (e.g. in the performance  management system itself, performance of the company as a whole or  specific employee performance).
The Three Phase Process 
Kurt Lewin, also known as the “founder of social psychology”, introduced a threephase theory of change that goes hand‐in‐hand with performance management. The  process includes the following:
Phase One: Unfreezing:
– This phase is extremely important as you aim to understand  change and how it takes place. This phase is crucial because it includes coming to the  realization that change needs to happen. It also requires one to leave that which has been comfortable  in order to make this change possible.
In order for someone to decide whether or not they are willing to change, they must weigh the  advantages and disadvantages of this being done. This concept is what Force Field Analysis is based on.  Force Field Analysis considers the different factors that work for and against the change that one must  understand in order to make a decision.
Phase Two: Change:
In Lewin’s model, he pointed out that “change” is not a one‐time event that takes  place, but rather the inner‐transition that takes place as a response to the outward changes that are  taking place.
Due to the uncertainties of “what will happen next”, this phase is considered one of the more difficult  ones to achieve. And because of this, it is important for employees to have access to training and  coaching to help ease the transition.
Phase Three: Freezing:
– Also known as “refreezing”, this phase is the establishment of new norms and  gaining stability after the institution of change. This phase can sometimes be misleading. It seems to be  a long‐term state, when in fact it is one that can change to “Unfreezing” within a matter of days. So,  although this stage cannot be viewed as the “last”, having the ability to successfully make it to this point  is a great accomplishment. This could allude to the fact that it is becoming easier for someone to adjust  to change, which is crucial because it happens regularly.
Every successful business plan requires goals and objectives. Goals  show the strengths and weaknesses of plans and procedures.  Implementing regularly evaluated goals allows leaders to understand  where performance is and what needs to be improved. When  managing performance, make sure that you implement SMART  goals.
SMART Goal Setting People often fail to reach their goals.
This usually indicates that the wrong goals are  being chosen. SMART goals will improve the chances of achieving both personal and  business goals.
SMART goals:
– Specific: Goals should have specific instructions. 
– Measurable: It should be clear when goals and objectives are met. 
– Attainable: Impossible goals are not motivating. 
– Realistic: Goals need to be something people are able to work towards.
– Timely: Goals need specific timeframes.
Specific Goals Goals need to be specific. Employees need to understand exactly what they are  expected to do. It is not enough to simply ask for improvement. This is a general goal.  Specific goals explain who is involved and what goal should be achieved. It can also  identify a location, requirements, and reasoning behind the goal.
–  General goal: Improve performance.
– Specific goal: Meet with your mentor once a week.
  Measureable Goals Goals need to be measurable in order to be effective. They specify how much or how  many. Measurable goals allow employees to identify when they have accomplished their  goals.
– General goal: Increase sales.
– Measureable goal: Increase sales 7 percent over last year’s.
  Attainable Goals Goals must always be attainable. Employees need goals that challenge them but must  still be within reach. When goals are seen as unattainable, employees will give up on  them without even trying. The measure of a goal should always be within reach.
– Unattainable goal: Reduce turnover by 60 percent.
– Attainable goal: Reduce turnover by 10 percent.
Realistic Goals Employees need realistic goals. It is important that employees are able to achieve  their goals. The goals need to relate directly to employee abilities, and it is important  to make sure that they have the tools necessary to meet them. Breaking larger goals  down to smaller achievements will make them more realistic.
Realistic Goal: The rehabilitations department currently threats 180 patients a day. With new training, they will manage to threat 225 patients a day.
  Timely Goals Goals should always have a time frame. General goals do not establish a time frame.  Time frames encourage employees to move forward. Having specific dates will also  determine when goals are reevaluated.
– General goal: Increase sales.
– Timely goal: Increase sales within six months.
  Monitoring Results Once goals are established, it is important to monitor their results. This will  determine how effective a plan or strategy is. Use a basic evaluation to determine  what changes need to be made in a plan and reevaluate your goals.
What to evaluate:
– Were the goals and objectives achieved?
– Were they achieved in the established time frame?
– What is the feedback from employees and leadership?
– What are the financial gains or losses?
Establishing Performance Goals 
Performance goals require strategic action. To be effective, these  goals should not be handed down to employees. It is important to  include employees in the goal setting process and encourage them to  meet their individual performance goals. This will improve individual  and company performance.Strategic Planning A strategic plan determines where employees are, where they want to be, and  how they will get there. It should embrace the values of the organization and  align with the following company information. The organization must create a  strategic plan before creating performance goals.

Company Strategic Plan:
– Vision
– Mission
– Philosophy
– Goals
– Objectives
Employee performance goals need to consider the company’s strategic plan. Individual performance  goals must be SMART goals that include strategies and actions for employees to take.
Example Goal: Stay informed about innovations in the industry, it can help improve productivity by 10  percent this year.
Examples of Actions:
– Attend training classes
– Meet with a mentor
– Communicate consistentlyJob Analysis, A job analysis determines what is required to do a specific job. It will help determine
which skills and attributes an employee needs to complete a job successfully. A job  analysis will help determine who to hire, how to train, and what compensation a job  should receive. Job analyses are instrumental in determining performance. Research  a position to determine the following information:

Job Analysis:
Job Requirements:
– Responsibilities
– Tools or systems used
– Reporting requirements
Employee Requirements:
– Training/Education
– Skills
– Aptitudes
– Necessary certification
Setting Goals Performance goals need to be SMART goals. They need to address behavior,  competency, and results. Remember to involve employees in their performance  goals.
Examples of Goals:
Behavior: Employees have complained about distance. Communicate with employees in person  every week, rather than just sending emails.
– Competency: New equipment is being installed. Perform all the training within three weeks.
– Results: Sales are down. Increase sales by 5 percent this quarter.
Motivation Performance is related to motivation. Motivation is the job of every leader. There is  not a single method for motivating employees. People have different personal  motives, and leaders must meet the needs of individuals.
Motivating Tips:
– Lead by example: Motivate yourself before you can motivate others.
– Meet with individuals: Communicate with employees directly to find out what motivates them.
– Reward employees: Find motivating rewards for individuals.
– Delegate: Do not micromanage employees.
– Inform: Inform people about how they are making a difference in the organization.
– Celebrate: Pay attention to achievements and celebrate with employees.
Competency Assessments 
Competency assessments are essential to performance  management. These assessments make it easier to hire and  promote the right people. They also help assess performance and  the different competencies that employees need to improve. It will  also identify the top performers.
Competency Assessment Defined  Competencies are a set of skills and essential knowledge that are necessary to  perform a job well. The competencies for every position should be defined before  hiring. They are important to the hiring and guide the interview process. A  competency assessment assesses the skills of employees and compares them with  previously established core competencies. A supervisor or HR professional decides  the score of each assessment. The performance is based on chosen indicators and  separate level for each rating. Each company has its own competency assessment levels, but most  assessments include the following ratings:
Sample Rating:
– Excellent
– Meets expectations
– Needs improvement
– Not applicable
– Have opportunities to advance
Implementation There are several steps that you need to take before you implement competency  assessments. Successful implementation requires you to complete all of the steps.
– Identify Competencies: Ascertain which competencies are needed to  perform a job and the skill level of each competency. 
– Develop Assessments: Create a fair method of assessment that concentrates on targets.  Company goals will determine the targets.
– Practice Assessments: Practice using assessments, just like any other skill. 
– Assess Employees: Use the standards and assessments to review employees.
– Plan: Use action plans to help employees develop.
  Final Destination 
The final destination will provide a pool of trained professionals with strong  performance. Each company will have its own final destination that depends  on the goals and needs. Reaching the stage of final destination may mean  completely overhauling the competency program. It could also mean placing  more attention on action plans and training. It all depends on the  competencies required for each role. Identifying the goals of the organization  and the competencies of each position will allow your organization to reach the final destination.
Learning Cycle 
Learning Cycle states that learning is based on experience. The  learning cycle has four basic elements: experience, observation,  conceptualization, and experimentation. It is important to be familiar with  the learning cycle to effectively manage performance, and guide  employees to greater achievements.
Concrete experience is  direct experience that involves the senses. It is not simply knowledge about a  subject. Hands‐on training is an example of concrete experience that employees  learn at work. Experience and conceptualization are the two ways that employees  take in knowledge.
Observation is what the concrete  experience means to the person learning. Watching is the way that knowledge is  transformed into meaning for an individual. This is where the connotations are  created as learners see different perspectives. An example would be watching a  trainer perform a task again or considering a task recently performed.  Experimentation is another way to transform knowledge.

Conceptualization Abstract conceptualization is a way to gather knowledge on a subject without direct  experience. This involves a basic understanding of a situation by applying logic. An  example of this would be reading a training manual. Abstract conceptualization is  having the knowledge about something.

Experimentation Active experimentation is the final part of the Learning Cycle. Here, people  learn by doing. They transform knowledge by acting on it. An example of this  would be using a new computer program. Active experimentation involves taking  risks based on the knowledge people have gathered. It is important that  employees be allowed to take risks when learning.

Every employee needs to be motivated in order for performance  management to be successful. While employees must take some  responsibility in motivating themselves, management can help  motivate and develop individuals. Practicing basic motivational  techniques will improve performance as it boosts morale.Key Factors 
Motivation is more than being satisfied. Motivation is what causes employees  to go the extra mile and commit to a project or company. Fredrick Herzberg  identified the key factors that drive motivation in employees across different  fields. Pay and work conditions were tied to satisfaction. Poor pay and work  conditions adversely affect productivity, but positive pay and work conditions  do little to increase motivation.

– Responsibility: Employees should have a sense of ownership in their work.
– Nature of the work: The nature of the work can help motivate people.
– Recognition: Employee efforts need to be recognized.
– Achievement: People need to feel like they are achieving something worthwhile.
The Motivation Organization People perform better when they believe in their company. When the values of an  organization match the personal values of employees, an organization will be  highly motivated. This is why socially responsible companies are able to easily  attract talent. They speak to an individual’s internal motivators. Businesses that  address internal motivations are more likely to be high performing.
Internal Motivations: 
– Family 
– Environment 
– Success 
– Community 
– Personal time
 Identifying Personal Motivators Each person has a different set of motivators. Some people respond better to  verbal praise and others need rewards. It is important to motivate employees on a  personal level. This is easier to do in small organizations. Large companies will  have to rely on each manager to identify personal motivators.
Techniques to Identify Personal Motivators:
– Observation: Observe how individuals respond to different motivators and take notes.
– Communication: Get to know each employee, and identify personal motivators.
– Surveys: Have employees fill out surveys that identify what motivates them.
  Evaluating and Adapting Like everything else, it is essential to evaluate and adapt motivation techniques.  This should include the following steps:
– Surveys: Surveys will show the level of engagement and how motivated  employees are.
– Review mission: Compare the mission, policies, and procedures to internal  motivators. Are they aligned?
– Development: Examine the number of employees who have advanced within the company.
– Goals: Whether or not company goals are met is an indication of motivation.
Adapt motivation techniques as necessary to improve performance and engage employees.
The Performance Journal 
Performance journals create evaluations that are more accurate by  allowing employees and manager to keep track of performance  throughout the year. Both managers and employees can keep  journals. This will help guide and develop employees who challenge  themselves and improve performance.Record Goals and Accomplishments It is important to record your goals and accomplishments. Even minor  accomplishments need to go in the performance journal. Seeing your  accomplishments will encourage you, and seeing your goals will motivate you to  continue working towards them. Comparing goals and accomplishments will help  you focus on what you need to do to improve performance.

Employee Records:
– Accomplishments: Include recognitions and awards.
– Challenges: Include requests for training or other help to meet goals.
Employer Records:
– Accomplishments: Details include documentation and notes.
– Evaluation: Include performance gaps and direct reports.
Linking with Your Employees or Managers It is important that employees and managers connect for performance management  to be effective. Relationships on every level must remain professional. When  employees and managers do not trust each other, performance suffers. It is possible  for managers to link to employees’ performance journals and see any information  that employees choose to share with them. This helps managers see things from an  employee’s perspective and create accurate evaluations. It also makes employees  part of the evaluation process.
Implementing a Performance Coach A performance coach will help people meet their needs to improve performance. In most  organizations, managers act as performance coaches. How well managers coach  performance affects the quality of employee performance. Mangers must communicate  effectively with each employee and motivate that person to excel. This requires a  combination of encouragement, praise, and correction. Assess and coach employees in  the following areas.
Coaching Assessments:
– Assess skills and knowledge: Provide any necessary training.
– Assess the tools: Make sure that the individual has everything necessary to complete his or her  job.
– Assess the processes: Improve procedures to help employees, or instruct them in using different  procedures.
– Assess motivation: Motivate people on a personal level.Keeping Track Coaches need to keep track of employee progress. This will help them create  strategies that will challenge employees and help them grow. There are several ways  to keep track of performance.
– Traditional Evaluations
– Feedback
– Journals
– Performance log

A performance log is where you can make notes of any observations regarding performance. This will  help you become a better coach. 
Creating a Performance Plan 
A performance plan is essential to performance management. It is a  strategic plan that each individual needs to follow to become high  performing employees. Managers must create a plan with every  employee they work with. There is always room for improvement.Goals  Establish professional goals that reflect the needs of the organization and individual.  Make sure that employees have the tools to reach these goals and provide them if  they do not. This will improve productivity and performance.

Setting Goals:
– Determine what employees need to accomplish.
– Make SMART goals.
– Allow employees to develop the goals with you.
– Enroll in a speaking class within three months to facilitate meetings by the end of the year.
  Desired Results  The results of a performance plan are not strategies. They are what employees are  expected to achieve, and this should be made clear in the performance plan.  Employees are responsible for achieving the desired results. For example, a desired  result may be to consistently meet sales goals. The ability or inability to meet desired  results determines the level of performance. An individual who cannot meet desired  results will need coaching in that area. 
He who fails to plan, plans to fail. Proverb 
It is important to prioritize goals. Employees should focus on the top three goals.  The goals given priority need to align with the company goals and the top  competencies of each position. These usually influence productivity and cost. A  nonessential goal such as filing at the end of each day does not take priority. Make  sure that goals do not conflict with each other.
Example of Prioritizing Goals:
– Train to use the new software within two months.
– Call clients every week to increase customer satisfaction.
– Meet monthly sales goals with social networking, cold calling, and scheduled meetings.
Performance must be measured. This is not always easy because some tasks may be  subjective. There must be fair standards and measurement established for each  position. You will need to consider the job requirements and employee  competencies that you previously established. It is also helpful to make the  measurements cost specific, when possible. Create a rating scale for each measure.  It can be numbered or not.
Measurement Example:
– The total number of customer complaints.
– Percentage of wasted product.
– Met personal goals
Compare the measurements against performance to evaluate employees. It is also  important to include whether or not employees achieved their goals and met  desired expectations. This information is normally included in an employee  evaluation form. Formal reviews are typically done every year, but frequent  informal reviews are more effective. Meet with employees regularly to evaluate  performance. Use the same criteria as a formal evaluation to help direct and  improve performance.
Wrapping Up 
Although this workshop is coming to a close, we hope that your  journey to improve your performance management skills is just  beginning. Please take a moment to review and update your action  plan. This will be a key tool to guide your progress in the days,  weeks, months, and years to come. We wish you the best of luck on  the rest of your travels!Words from the Wise • Harold S. Geneen: It is much more difficult to measure nonperformance than  performance.
– Winston Churchill: However beautiful the strategy, you should occasionally look at  the results.
– Dale Carnegie: The man who starts out going nowhere, generally gets there.
Lessons Learned The objectives of this course are:
– Defined performance management.
– Outlined the process of talent.
– Taught ways to motivate and develop employees.
– Explored feedback techniques.
– Shared goal setting techniques.
– Explained the learning cycle and journals.
– Looked at performance plans.

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