HRM500 Week 5 Scenario Script: Performance Management Slide # Scene/Interaction Narration HRM500 Week 5 Scenario Script - Part 1: Performance Management Slide 1 Scene 1 Angela's Office Slide 2 Scene 2 Angela's Office Angela: Welcome back, team! Performance Management is a practice in which managers guide employee actions toward reaching an organization's goals. Managers must be aware of the actions and outputs that are required, and must provide feedback to employees to manage expectations. Come on - let's meet back up with Ashley and Michael to take a closer look! Angela: Ashley and Michael, we need to look at the performance management process within Montrose to determine if the everyday activities carried out by employees are aligning with organizational goals. We need to identify the activities involved in performance management; ensure that managers are providing performance feedback effectively; and determine ways to improve unsatisfactory performances. Can you two help me come up with a plan to address all of these areas? Michael: Sure, Angela! We need to look at the stages of the performance management process by specifying relevant aspects of performance, appraising performance, and providing performance feedback. Ashley: Many of our employees dread their annual performance appraisal, in which their supervisor analyzes their performance based on behaviors and accomplishments of the past year. However, performance management can provide many benefits. Angela: Absolutely, Ashley! We can assure top performers that they are valued; encourage dialogue between managers and employees; create uniform standards for evaluating employees; and help the company identify strong and weak performers. Michael: Our first step toward performance management is to define what the organization expects of each employee. It will be important to measure each employee's current performance to identify expectations and determine if they are being met. This will allow us to take corrective action, such as providing training incentives or discipline. Angela: I think it's important to remember here that we need to establish a performance management system for three purposes: administrative, developmental, and strategic. Ashley: The administrative purpose will allow us to make day to day decisions about salary, benefits, and recognition programs. Performance management will help us support administrative decision-making related to employee retention, termination for poor performance, hiring, and layoffs. Michael: Our developmental purpose for performance management will allow us to help employees develop the knowledge and skills necessary to perform their job responsibilities. Employees who are meeting expectations become more valuable when they hear and discuss performance feedback. Effective performance feedback allows employees to be aware of their own strengths and weaknesses. Ashley: The strategic purpose of performance management allows us to achieve business objectives. We can establish this by linking employee behaviors with the organization's goals. We should create a team of employees and managers in each department to establish objectives for the department. The team can also identify any trainings the employees need. Managers can meet with employees regularly to discuss their progress in meeting objectives. Angela: Great idea, Ashley! And you have both made important points. To recap, we defined the performance management process, which includes specifying relevant aspects of performance; appraising performance; and providing performance feedback. We also discussed the three purposes of performance management systems, which are administrative, developmental, and strategic. Our next step will include looking at the criteria for effective performance management. We will meet tomorrow to plan our next course of action. Before that, please take a few minutes to complete a brief activity on what we've learned so far about performance management. Slide 3 Dropdown interaction - Match the three purposes of performance measurement (administrative, developmental, and strategic) with a brief definition of each. Slide 4 Scene 3 Angela's Office *Create Tab interaction for the five criteria Angela: Good morning, Ashley and Michael. Good job matching the purposes of performance measurement with their corresponding definitions. Today we will look at the five criteria present in an effective performance management system. There are several ways we can measure the performance of an employee. Determining the measures will be a critical part of our planning. Have you done your research? Michael: (Home layer of Interaction) We sure have, Angela! Let's take a closer look.... Michael (Layer A of Interaction) The first measure we should look at is fit with strategy. Our performance management system should aim to align employee attitudes and behaviors with organizational strategy, goals and culture. Michael: (Layer B of interaction) The next criteria is validity. Our measurement tools should actually measure what they are intended to measure. The performance appraisal should measure only relevant aspects of performance. Michael: (Layer C of interaction) Another criteria is reliability, which looks at the consistency of results when more than one person measures performance. Michael: (Layer D of interaction) Acceptability is the next criteria. A performance measure must be acceptable to the people who use it. Our employees must believe the performance standards are fair and not overly time consuming. Michael: (Layer E of interaction) The final criteria is that specific feedback be provided to employees, so they can understand what is expected of them and how they can meet those expectations. If performance measures are not specific, our employees will not be able to support the organization's strategy. Ashley: So, just to recap, we have discussed the five criteria for measuring the effectiveness of our performance management system. They are: fit with strategy, validity, reliability, acceptability, and specific feedback. Angela: Great job, both of you! I've reserved the conference room because we still have a lot of ground to cover. Let's meet there after lunch to discuss the two main options for managing performance, as well as sources of performance information. Slide 5 Scene 4 - Conference Room Angela: Hello again, Ashley and Michael. This morning we discussed the five criteria needed in an effective performance management system. Now, first up on this afternoon's agenda, let's compare two widely used systems for managing employee performance - Management by Objectives and Total Quality Management. Michael, what have you learned about management by objectives? Michael: I learned that in adopting a system of management by objectives, people at all levels in the organization need to set goals that align with the organization's overall objectives. Ashley: Management by objectives, or MBO for short, has three components: specific, difficult, and objective. Managers and their employees will work together to set goals. Managers will give feedback throughout the rating period to monitor progress toward goals. Michael: MBO can have a positive effect on our performance here at Montrose. Productivity increases when top management is committed to MBO. Ashley: If our employees are involved in goal setting, it is likely that an MBO system will effectively link individual employees' performance with the organization's overall goals. Angela: That makes sense to me! Let's move on to the next system of measuring employee performance, Total Quality Management, or TQM. Slide 6 Scene 5 - Conference Room Michael: Total Quality Management is another option for managing performance. This method entails assessing the individual's performance and the system within which the employee works. Ashley: Yes! In TQM, employees and their customers work together to set standards and measure performance, with the ultimate goal being to improve customer satisfaction. Feedback within a TQM system comes from managers, peers and customers. It is also subjective and largely based on the employee's personal qualities, such as cooperation, initiative, and responsiveness to direction. Angela: You've both definitely done your research! Now let's move on to our last item on the agenda today... what did you two find about sources of performance information? Slide 7 Scene 6 - Conference Room *Create diagram of 360 degree performance appraisal measurement Michael: We discovered that sources of performance information can include managers, peers, subordinates, the employee himself, and customers. We can adopt a 360 degree performance appraisal measurement system that combines information from all of these sources. Ashley: Also, it is important to note that performance feedback should be regular and consistent, and should be treated as an expected role of management. Generally, employees receive formal performance feedback once a year. However, this is not often enough, since managers are responsible for improving performance deficiencies as they occur. Feedback is most effective when the information is not a surprise to the organization. Angela: Well, that's certainly not a surprise to me, anyway! (laughs) You both have done a good job explaining the two main systems of performance management that can be used within an organization and identifying the major sources of performance information. Let's complete a quick activity to reinforce what we've learned before we call it a day, and then meet back in my office to wrap things up. Slide 8 Drag/drop interaction with two envelopes - TQM and MBO - and multiple examples that learner must drag to the correct envelope based on which of these 2 performance management systems they represent Slide 9 Scene 7 - Angela's office Angela: Great job on that activity, both of you. You have a solid understanding of the different features of the two performance management systems we studied - Management By Objectives and Total Quality Management. Angela: To sum it up, Performance Management is a critical step in which managers guide employee actions toward reaching an organization's goals. Managers must be aware of the activities and outputs that are required in performance management, make sure these things are done, and improve feedback to employees regarding performance. Dialogue between managers and employees may identify performance issues and ways to resolve them. Don't forget to complete this week's discussions on Performance Management and Performance Pressure. Also, try to check out the article I put in your Additional Resources folder on \"The Top 50 Problems with Performance Appraisals\". Have a great week, and good luck on your exam! 1. 360 degree performance feedback is a very effective method of performance appraisal that is used by several of the major companies to manage their employees' performance. In this regard companies can adopt two important approaches to make the feedback process effective as well as successful. The first important approach is to use the process of 360 degree feedback for individual development. Another important approach is to align the participants with the strategic imperatives. 360 degree performance feedback requires the involvement of the employees (Rogers, n.d.). In this regard the two approaches the organization can take is to use it for the individual development of the employees. In this regard the company should invest in the feedback process like it would in any of the business endeavours. From the feedback to the evaluation, there should be administrative control on the entire process as well as the process should be monitored for the achievement of the desired outcomes. The results of the feedback should be used to improve the performance of the individual employees. It means the results of the feedback process should be used to make improvements to the individual employees' performance. Another critical thing is that the company aligns the participants' efforts with the strategic imperative behind the process. In this way, not only will the company be able to use the feedback process effectively, but its results be utilized to get meaningful outcomes. 360 degree feedback can be an important process but the company should invest in it wisely and monitor the entire process carefully. 2. There are various advantages of providing on going feedback to the employees. Usually, companies provide feedback once a year but what happens is that it does not prove effective at employee performance management. Ongoing feedback provides for ongoing performance management. It helps manage the employees' performance in the short term (OPM, 1997). Thus, the company can easily align its employees' performance to get better output in the short run. Next, it helps the management to develop competencies that come from having a high performance workforce. Overall, the ongoing feedback process can also be helpful at developing a high performance culture. If the employees are not provided with ongoing feedback the result can be that discrepancies in performance may arise. If the managers do not provide ongoing feedback employees might feel directionless without guidance. This also means that they will not be able to set clear cut goals for themselves. For the lack of clear cut goals the employees would work without any purpose. So, it becomes difficult for them to align their performance with the organizational objectives of the company. If the company are to derive performance from their employees they also need to support their employees with ongoing feedback. Other problems may also arise like the employees' start feeling a lack of motivation. Their job satisfaction level can also be affected if they are not provided with ongoing feedback regarding their performance. In the modern age, ongoing feedback becomes all the more important as the companies have to focus more and more on the performance of the employees as well as their productivity. References: Rogers, E. (n.d.). Improving the Payoff from 360-Degree Feedback. In UWMC. Retrieved August 7, 2016, from http://odt.uwmc.washington.edu/pdfs/360-brochure.pdf 360-Degree Assessment: An Overview (1997). In OPM. Retrieved August 7, 2016, from https://www.opm.gov/policy-data-oversight/performance-management/performancemanagement-cycle/rating/360assessment.pdf 1. 360 degree performance feedback is a very effective method of performance appraisal that is used by several of the major companies to manage their employees' performance. In this regard companies can adopt two important approaches to make the feedback process effective as well as successful. The first important approach is to use the process of 360 degree feedback for individual development. Another important approach is to align the participants with the strategic imperatives. 360 degree performance feedback requires the involvement of the employees (Rogers, n.d.). In this regard the two approaches the organization can take is to use it for the individual development of the employees. In this regard the company should invest in the feedback process like it would in any of the business endeavours. From the feedback to the evaluation, there should be administrative control on the entire process as well as the process should be monitored for the achievement of the desired outcomes. The results of the feedback should be used to improve the performance of the individual employees. It means the results of the feedback process should be used to make improvements to the individual employees' performance. Another critical thing is that the company aligns the participants' efforts with the strategic imperative behind the process. In this way, not only will the company be able to use the feedback process effectively, but its results be utilized to get meaningful outcomes. 360 degree feedback can be an important process but the company should invest in it wisely and monitor the entire process carefully. 2. There are various advantages of providing on going feedback to the employees. Usually, companies provide feedback once a year but what happens is that it does not prove effective at employee performance management. Ongoing feedback provides for ongoing performance management. It helps manage the employees' performance in the short term (OPM, 1997). Thus, the company can easily align its employees' performance to get better output in the short run. Next, it helps the management to develop competencies that come from having a high performance workforce. Overall, the ongoing feedback process can also be helpful at developing a high performance culture. If the employees are not provided with ongoing feedback the result can be that discrepancies in performance may arise. If the managers do not provide ongoing feedback employees might feel directionless without guidance. This also means that they will not be able to set clear cut goals for themselves. For the lack of clear cut goals the employees would work without any purpose. So, it becomes difficult for them to align their performance with the organizational objectives of the company. If the company are to derive performance from their employees they also need to support their employees with ongoing feedback. Other problems may also arise like the employees' start feeling a lack of motivation. Their job satisfaction level can also be affected if they are not provided with ongoing feedback regarding their performance. In the modern age, ongoing feedback becomes all the more important as the companies have to focus more and more on the performance of the employees as well as their productivity. References: Rogers, E. (n.d.). Improving the Payoff from 360-Degree Feedback. In UWMC. Retrieved August 7, 2016, from http://odt.uwmc.washington.edu/pdfs/360-brochure.pdf 360-Degree Assessment: An Overview (1997). In OPM. Retrieved August 7, 2016, from https://www.opm.gov/policy-data-oversight/performance-management/performancemanagement-cycle/rating/360assessment.pdf