MGT-520: Managing Perform Module 11: Implementing a Performance Management System

Module 11: IntroductionAttached Files:

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  • In this module, you will continue to examine the performance management system implementation phase and also learn how regular evaluation and monitoring of the system is required to support success. Further, you will learn about building cooperation and understanding among participants and how this can be accomplished using an inclusive and transparent implementation method. Additionally, the importance of aligning organizational goals with an appropriate strategic measurement method will be explored.
  • Analyze the role of a communication plan in performance management systems.

    Evaluate the factors and training that impact the quality of performance information.

    Evaluate the different steps for implementing an effective performance management system.

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    7/5/23, 11:31 AM
    Operations Management
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    1
    Chapter 7
    Rolling Out the Performance Management
    System
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    Overview





    Communication Plan
    Appeals Process
    Rater Training Programs
    Pilot Testing
    Ongoing Monitoring and Evaluation
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    Implementation

    “Implementation” refers not only to launching a new
    system from scratch, but also, to revising and improving
    an existing one
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    Communication Plan Components
    7-5
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    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?
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    Cognitive Biases That Affect
    Communications Effectiveness(1of 4)

    Selective Exposure

    Selective Perception

    Selective Retention
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    Cognitive Biases That Affect
    Communications Effectiveness(2 of 4)

    Selective Exposure
    • Tendency to expose our minds only to ideas with
    which we already agree
    • E.g., only communicating with employees who agree
    that PM is a good idea
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    Cognitive Biases That Affect
    Communications Effectiveness(3 of 4)

    Selective Perception
    • Tendency to perceive a piece of information as
    meaning what we would like it to mean even though
    the information, as intended by the communicator, may
    mean the exact opposite
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    Cognitive Biases That Affect
    Communications Effectiveness(4of 4)

    Selective Retention
    • Tendency to remember only those pieces of
    information with which we already agree
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    Minimizing Effects of Cognitive
    Biases
    Involve employees
    Understand employee needs
    Strike first
    Provide facts and consequences
    Put it in writing
    Use multiple channels of communication
    Use credible communicators
    Say It and then say It again
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    Minimizing Effects of Cognitive Biases
    (1 of 8)

    Involve Employees
    • People support what they help create
    • Higher the level of participation is in designing the
    system, the greater the support for the system will be
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    Minimizing Effects of Cognitive Biases
    (2 of 8)

    Understand Employee Needs
    • Identify how to meet needs through PM
    • E.g., Are they interested in development activities
    that would eventually lead to a promotion or a
    different job within the organization?
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    Minimizing Effects of Cognitive Biases
    (3 of 8)

    Strike First
    • Create positive attitude toward PM
    • Do not set up expectations you cannot deliver
    • Provide evidence to counter some of the arguments
    that might be used against the system
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    Minimizing Effects of Cognitive Biases
    (4 of 8)

    Provide Facts and Consequences
    • Clearly explain facts and what they mean or what the
    consequences are
    • Do not let employees draw their own conclusions
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    Minimizing Effects of Cognitive Biases
    (5 of 8)

    Put it in Writing
    • Create documentation describing the system and post
    it where it is accessible to everyone
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    Minimizing Effects of Cognitive Biases
    (6 of 8)

    Use Multiple Communication Channels
    • Face-to-face meetings; Virtual meetings; Email; TED
    talks; Short video clips
    • Expose employees repeatedly to the same message
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    Minimizing Effects of Cognitive Biases
    (7 of 8)

    Use Credible Communicators
    • Communication should be delivered by people who are
    trusted and admired within the organization
    • People regarded as key and powerful organizational
    players
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    Minimizing Effects of Cognitive Biases
    (8 of 8)

    Say It, and then, Say It Again
    • Repeat the information frequently
    • People can absorb only a small amount of information at
    a time, and may be resistant to change
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    Appeals Process(1 of 2)

    Promote employee buy-in to PM system
    • Amicable/Non-retaliatory
    • Resolution of disagreements

    Increases perception of the system’s fairness
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    Appeals Process
    (2 of 2)

    Employees can question two types of issues:
    • Judgmental

    Validity of evaluation
    • Administrative

    Whether policies and procedures were followed
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    Recommended Appeals Process (1 of 2)
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    Recommended Appeals Process (2 of 2)

    Level 1
    • HR reviews facts, policies, and procedures
    • HR reports to supervisor/employee
    • HR attempts to negotiate a settlement

    Level 2
    • Arbitrator (panel of peers and managers)

    Level 3
    • High-level manager—final decision
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    Company Spotlight (1 of 2)

    University of Lethbridge implemented a three-level appeals
    process in their performance management system to
    increase buy-in from employees and perceived fairness

    Levels include:
    • 1: Human Resource investigation
    • 2: Performance Evaluation Committee investigation
    • 3: Formal Grievance under collective bargaining
    guidelines
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    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
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    Rater Error Training (RET)
    Similar to me
    Contrast
    Halo
    Primacy
    Recency
    Negativity
    First impression
    Spillover
    Stereotype
    Attribution
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    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
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    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
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    Pilot Testing(1 of 3)

    Pilot testing is done before the system is implemented.
    • Provides ability to:

    Discover potential problems

    Fix them
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    Pilot Testing—Benefits(2 of 3)

    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
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    Implementing a Pilot Test(3 of 3)

    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
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    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
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    Company Spotlight (2 of 2)

    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
    b. Training line managers
    c. Ongoing monitoring of the program using data from
    employee surveys, face-to-face meetings with line
    managers, and team meetings
    a.
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    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
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    Quick Review
    Communication Plan
    ■ Appeals Process
    ■ Rater Training Programs
    ■ Pilot Testing
    ■ Ongoing Monitoring and Evaluation

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    Copyright
    All rights reserved. No part of this publication may be reproduced,
    stored in a retrieval system, or transmitted, in any form or by any
    means, electronic, mechanical, photocopying, recording, or
    otherwise, without the prior written permission of the publisher.
    Printed in the United States of America.
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