M04-Performance Mgt Overview Eng -170309

Step One:Identify Job Description andBusiness GoalsStep Two – Set SMART GoalsIdentify key tasks that organisations expect staff toachieve in the position which will then result inachievement of business goals.Example:Business Goal of ABC BankBecome the most preferred bank in China and SouthEast AsiaJob Description of a Customer Relationship ManagerBuild long-term relationships through product andservice delivery that meet and/or exceed customerexpectations.Topic M04Performance and Compensation Management7zPerformance goals should be precisestatements of what the employee isexpected to achieve.zPerformance goals should be mutuallyunderstood and agreed betweensupervisor and employee.Topic M04Performance and Compensation ManagementBAFS Compulsory PartLearning and Teaching Example8BAFS Compulsory PartLearning and Teaching ExampleApart from the job description and business goals, supervisors may setindividual employee performance goals based on the previous year’sperformance.Before setting SMART goals, we need to understand the job descriptionof the employee , i.e. job holder. Without a job description, we are notclear on the key tasks and expectations required of the employee. Wemay be unable to establish SMARTgoals relating to the employee roleand job responsibilities.The performance goals specify exactly what the employee is expectedto achieve. To avoid confusion, they should be clearly stated,communicated to the employee, mutually understood and structured inmeasurable terms. Otherwise, it will be difficult to manage andevaluate the year end performance.Before setting individual performance goals, we must understand thecompany’s overall goals. Individual goals must be directly aligned to andsupport the organisational goals.For example, the goal of ABC Bank is to become “The most preferredbank in China and South East Asia”. The departmental goals are todevelop new products that meet clients’ needs and provide superiorcustomer service that exceeds customer expectations. For individualgoals, provide superior customer service.78

Are these SMART Goals?SMART GoalszzzzzSMART1. Reduce annual overtime costs by 15%compared to last year.2. Complete report by end of Septemberwith appropriate recommendations tothe satisfaction of management.3. Launch new product by Oct 15, 2009within the budget of HK oundTopic M04Performance and Compensation Management9Topic M04Performance and Compensation ManagementBAFS Compulsory PartLearning and Teaching ExampleOne way to set measurable objectives is to set “SMART” goals withspecific and measurable performance standards. With “SMART” goals,employees are clear about management expectations and will helpeliminate subjective judgments or personal biases.10BAFS Compulsory PartLearning and Teaching ExampleAnswers are “Yes” because they are clearly specified in measurableterms with a clear timeframe, realistic and achievable.The goals need to be measurable to avoid subjective judgment. Typicalmeasures are :Goals should be a precise statement of what the employees areexpected to achieve. Goals should be specific, measurable, achievable,realistic and relevant to the employee’s duties and with a completiontimeframe. Goals that are not realistic or unachievable will de-motivatestaff and result in failures. Also, if the goal is subjective with nomeasurable outcome (e.g. “file the documents quickly” instead of “file thedocuments within 1 day”), the employee may not meet the supervisor’sexpectations. Furthermore, there must be a “due date” (time-bound) forany task. Without a due date, tasks tend to be delayed.9Quantitativee.g. %, ratio, dollars, numbersQualitativee.g. to customer / manager’s satisfactionTimee.g. by due dateCoste.g. within the budget of .10

Activity 1SMART goals or notMeet Pretty Betty AgainComplete the Student Worksheet (p.1) on“SMART Goals or Not?Not?”Hi, I am PrettyBetty, the SalesAssistant of thecompany! Howcan I help you?Generation YemployeeTopic M04Performance and Compensation Management11Topic M04Performance and Compensation ManagementBAFS Compulsory PartLearning and Teaching ExampleBAFS Compulsory PartLearning and Teaching ExampleHere comes Betty again. Previously she was our School Perfect. Shehas now graduated and become a sales assistant. You are required toset the “SMART Goals” for Betty.Activity 1Referring to the Student Worksheet (p.1) of “SMART goals or Not?”,ask students to decide which ones on the list are SMART goals.The answers are as (not specific enough)(with specific accuracy rate and cost )(with sales figure and date)(no specific description of quality service)(no specific description of “promptly” and “when necessary”)(no specific description of “efficient”)(no specific description of “promptly” and “timely”)(with specific sales figure and cost)(no specific descriptions of “how fast” and “accuracy”required in completing the task)10. No (no specific description of “efficient”)11. Yes (with specific absenteeism figure)12. Yes (with specific figure on operating budget)1112

Suggested Answer:SMART Goals for BettyActivity 2Prepare SMART Goals for BettyzzJob title:title Sales AssistantJob Duties:Duties:1. Assist sales manager to plan, organise andmonitor all sales activities.2. Serve as personal assistant to sales managerproviding required secretarial support.3. Process sales orders using ERP system.ExerciseRefer to Student Worksheet (p.2) on “Betty’sJob Description” and set the SMART goals forBetty.Topic M04Performance and Compensation Management13 Answer the phone for sales managers within fiverings.ringsPrepare sales data for sales managers for meetingclients two working days before the meeting.meetingPrepare the sales forecast for sales manager on the5th day of every month.monthIssue sales orders 2 days upon receiving clients’request.Follow up with sales payment 3 days upon goodsdeliveryCheck stock and arrange printing promotion leafletwhen the leaflet stock drop to 50 copies.copiesTopic M04Performance and Compensation ManagementBAFS Compulsory PartLearning and Teaching Example14BAFS Compulsory PartLearning and Teaching ExampleAsk students to share their answers to match against the “SMART”criteria. Then provide the “Suggested Answers” for their reference.Activity 2Instructions:End of Lesson 11. Divide students into groups of 4 to 6.2. Distribute Student Worksheet p.2 on “Setting SMART Goals for Betty”.3. Go through the “Job Title”, “ Job Description” and “Key duties” withthe students to ensure they clearly understand of the case.4. Complete the first smart goal with students. Instead of “answering thephone quickly”, the goals is set as “answer within 5 rings” which isspecific and measurable. Besides, it is relevant and achievable for anassistant to answer the phone within 5 rings.5. Ask students to complete the rest.Note:ERP System: Enterprise Resource Planning System1314

Step 3 : Managing performancethrough feedback and appraisalManaging performance byfeedback and performanceappraisalTopic M04Performance and Compensation Management15After setting SMARTgoals Management should monitoremployee’s performance bygiving specific feedback in atimely manner.Topic M04Performance and Compensation ManagementBAFS Compulsory PartLearning and Teaching Example16BAFS Compulsory PartLearning and Teaching ExampleSome managers tend not to discuss the employee’s performance duringthe year. They usually discuss it only at the annual performanceappraisal time at year end and focus on all the mistakes the employeesmade during the year.Lesson 2There are four steps in the “Performance Management System”. InLesson 1, we covered “Step 1: Identify job description and businessgoals” and “Step 2 – Set SMART goals”. In this lesson, we will discuss“Step 3 – Giving specific feedback and performance appraisal”.In that case, both employee and supervisor may consider “performanceappraisal” as a fault-finding exercise instead of a communication tool toenhance mutual understanding of job requirement and performance.Performance management provides a structured approach to reviewstaff progress and achievements. Managers need to acquire theeffective techniques to provide specific feedback (both positive andcorrective feedback) to employees in a timely manner to demonstratethey care.1516

Giving Positive FeedbackGuidelines for Giving FeedbackzzzzzzBehaviouralSpecificBalanced (give positive and correctivefeedback whenever appropriate)TimelyBe aware of your voice tone & bodylanguageBe objectiveTopic M04Performance and Compensation Management17BehaviourState the behaviour nonjudgmentallyEffectState the impact of the behaviour onthe business / team/ goalAppreciation Express your appreciation andfeeling about the successTopic M04Performance and Compensation ManagementBAFS Compulsory PartLearning and Teaching Example18BAFS Compulsory PartLearning and Teaching ExampleIt’s more effective giving praise and positive feedback as peoplewelcome compliments. However when giving positive feedback, do notjust say “Well Done”, “Excellent”, as it sounds too superficial.Preferably, quote a concrete case or incident to demonstrate thepositive behaviour or quality the employee has displayed. With specificfeedback, the employee recognises how to maintain their goodperformance.As supervisors, we must give timely and specific feedback to our staff.Through proper feedback, employees will understand management’sexpectations and identify areas for improvement. Therefore it is veryimportant that supervisors acquire the skills to offer constructive andspecific feedback. Here are the guidelines:-Behavioural: the feedback should focus on behaviours instead ofsubjective opinions.-Specific: the feedback should be supported by a case or specificincident.-Behaviour: Describe the specific behaviour displayed by employee.-Balanced: should give both positive and corrective feedback todemonstrate that the supervisor is not biased.-Effect:-Timely: give the feedback right after the incident while the memoryis still fresh.-Proper tone: remain calm and neutral rather than raising your voiceand “shouting” at employees-Objective: describe behaviours in an objective manner instead of“personal attacks” and request they take appropriate improvementactions.Guidelines in giving positive feedback:Since the employee represents the team or company,explain how their good or bad behaviour affects thecompany.-Appreciation: Finally express sincere appreciation regarding theemployee’s good performance and encourage them tokeep up the good work.1718

Activity 3:Giving positive feedbackAn Example of Giving Positive FeedbackBehaviourEffectWhen you treat your customerslike your good friendszThink of a classmate who performs verywell with one particular task. You wouldlike to praise him/her on that task.zWrite the lines you would use to show yourappreciation to him/her on StudentWorksheet p.3.It really gives a good impressionto your customersAppreciation Thank him/her for their effortsand keeping it upTopic M04Performance and Compensation Management19Topic M04Performance and Compensation ManagementBAFS Compulsory PartLearning and Teaching ExampleHere is an example on giving “Positive Feedback”. Teacher may ask twostudents to role play as an employee and supervisor to demonstrategiving positive feedback.20BAFS Compulsory PartLearning and Teaching ExampleActivity 3Ask students to form groups of 2. Referring to Student Worksheet (p.3),complete the exercise on giving positive feedback.In the first round, Student A gives positive feedback to B by following theguidelines in giving positive feedback. Upon receiving feedback from A, Bshares their feelings and comments on the feedback received.In the second round, Students A & B switch roles and repeat the samerole play as Round One.1920

Example of Giving CorrectiveFeedbackGiving corrective feedbackBehaviourState the behaviour nonjudgmentallyEffectState the impact of the behaviouron the business / goalExpectation State the expected correctiveactionsResultsExplain the results of thecorrective actionsTopic M04Performance and Compensation Management21BAFS Compulsory PartLearning and Teaching ExampleYour tone of voice is flat with no facialexpression when speaking tocustomers.EffectCustomer may feel you are not willingto help.ExpectationSpeak with a smile when speaking tocustomers.ResultsIt can improve your tone of voice andgive the customer a warm and friendlyimpression.Topic M04Performance and Compensation ManagementInstead of “negative feedback”, we say “corrective feedback” to avoidjudgmental comments. Again since it is harder to receive negativecomments, we need to be aware of the impact on receiver.22BAFS Compulsory PartLearning and Teaching ExampleShare this example of “Corrective Feedback” with students.Communication is 90% unspoken and comes from body language.Therefore, maintaining positive body language is important tocommunications.Guidelines for giving corrective feedback:-Behaviour : Describe what happened and the behaviour displayedinstead of blaming or making judgmental comments.-Effect:BehaviourAsk students to role play by communicating with others using no facialexpression and speak in a mono tone manner to demonstrate the rolebody language plays in communication.Point out the negative consequences resulting from theundesirable behavior to inform the employee why theyshould take corrective actions.-Expectation: Encourage employees to take corrective actions and/oravoid committing the same errors again.-Results:Explain the expected desirable behaviour and the positiveconsequences of taking corrective actions.2122

Corrective Feedback:Suggested Answers for Case OneActivity 4:Giving Corrective FeedbackRefer to Student Worksheet (p.4) on “GivingCorrective Feedback”Provide corrective feedback to the twocases listed in the Worksheet.Topic M04Performance and Compensation Management23BehaviourYou were late four times last week.Each time you were late for more than25 minutes.EffectCustomers need to queue up for a longtime due to insufficient staff at work.ExpectationStart work on time.ResultsIt can improve our image as customersdo not need to queue up.Topic M04Performance and Compensation ManagementBAFS Compulsory PartLearning and Teaching Example24BAFS Compulsory PartLearning and Teaching ExampleActivity 4There is no model answer for this exercise.Distribute the Student Worksheet (pp.4-5) and ask students to read thetwo cases and complete the tasks that follow.Teacher can ask students to share answers before showing this“suggested answer”.Briefly go through the worksheets with students to ensure theyunderstand the case.2324

Corrective Feedback:Suggested Answer for Case TwoPerformance AppraisalBehaviourYou’ve argued with customers threetimes last week.EffectCustomers may get upset or angryand complain to the company.zPerformance Appraisal FormExpectationDemonstrate patience, calmcustomers down and resolves issuesfor them.zPerformance Appraisal InterviewResultsProject a good impression tocustomers.Topic M04Performance and Compensation Management25Topic M04Performance and Compensation ManagementBAFS Compulsory PartLearning and Teaching ExampleTeacher asks students to share their answers for Case 2 before givingthe suggested answers.26BAFS Compulsory PartLearning and Teaching ExampleAfter giving regular feedback to employees during the year, we need tosummarise the employee’s performance by filling in the “PerformanceAppraisal Form” and conducting the “Performance Appraisal Interview”.2526

Pitfalls of Filling inPerformance Appraisal FormPurposes of Performance AppraisalPerformance Appraisal is done annually to:zzz Evaluate staff job performance by assessing how wellemployees have achieved the “SMART Goals”zzz Identify the strengths and weaknesses of employees andcompile a training plan for personal development.zzz To reward employees’ contribution with properperformance-linked bonus, salary increase andpromotion.Topic M04Performance and Compensation Management27LeniencyOver demandingHalo effectCentral tendencyRecent effectSimilarityTopic M04Performance and Compensation ManagementBAFS Compulsory PartLearning and Teaching ExampleAt the beginning of year, we set the “SMART Goals”. Throughout theyear, supervisor gives timely feedback on employee’s performanceaccording to preset goals and measures. In other words, supervisorsgive feedback immediately after an employee has done something rightor wrong. Then at year end, supervisors summarise the employee’sperformance during the “Performance Appraisal Meeting” then compilethe training and development plan for the coming year.28BAFS Compulsory PartLearning and Teaching ExampleBefore conducting the “Performance Appraisal Interview” with employee,supervisor needs to complete the employee “Performance Appraisal Form”.While filling in the performance appraisal form, there are some commonmistakes that supervisors tend to make:Based on the performance results (i.e. performance appraisal rating),employees will get appropriate rewards such as salary increases,bonuses and promotions.27 Leniency: too kind and tend to over-rate employees. Over demanding: too strict and tend to under-rate employees Halo effect: Due to one single positive or negative event, employeesare rated very effective for all tasks or not effective for all tasks. Central tendency: tendency to rate in the middle of rating scales, i.e. 3out or a 5-point scale. Recent effect: Rate employee’s performance based on recent eventsinstead of the yearly performance. Similarity: employees with a similar personality or interests with thesupervisor tend to score higher.28

Activity 5:Fill in the Performance AppraisalForm for BettyAfter 1 yearzHi, I am PrettyBetty, the SalesAssistant! How doyou like my workover the past year?Topic M04Performance and Compensation Management29You are given two documents:zzz“Performance record of Betty”“Performance Appraisal Form”Study Betty’s performance record (StudentWorksheet p.6) and fill in the PerformanceAppraisal Form (Appendix 1) for her.Topic M04Performance and Compensation ManagementBAFS Compulsory PartLearning and Teaching ExampleEarlier, we set the “SMART Goals” for Betty. Now it is time to assessBetty’s performance.30BAFS Compulsory PartLearning and Teaching ExampleActivity 5Introduce the structure of the “Performance Appraisal Form”. (Appendix 1)- The first part refers to “Personal Details of

Sep 01, 2008 · 3. Realise how to fill in a performance appraisal form; and 4. Identify the pitfalls in completing a performance appraisal form. Teaching Sequence and Time Allocation: Activities Reference Time Allocation Part I: Introduction Teacher discusses with students about managing performance through feedback and