Management Plan for the Organization

University Degree Business and Administrative studies

Performance Management

Running head: PERFORMANCE MANAGEMENT PLAN FOR THE ORGANIZATION

Performance Management Plan for the Organization

Cancle Tunstall

Colorado Technical University Online

Strategic Human Resources Management (HRM 610)

DR. Seema Vaid

March 7. 2008

Abstract

This article briefly describes three performance management programs Behavioral Observation Scale (BOS), Management by objective (MOB) and Behaviorally Anchored Rating Scales (BARS). ABAR is the recommended performance management program to be used to evaluate employees at TPI. Also discussed is a detailed performance appraisal plan, the benefits of having an evaluation system, management training, communicating the new program, and challenges/issues HR can expect to encounter when implementing a new appraisal system.

Performance Management Plan for the Organization

Employee appraisals are not consistently conducted across the organization. This fact is most disturbing. A labor attorney would love to find out that only certain employees receive documentation regarding their performances. We cannot afford to be selective about the performance appraisal process. Discriminatory policies can get us in a lot of hot water. Clausen, Jones, and Rich (2008) notes, an effective appraisal system should be accurate, outline job responsibilities, be nondiscriminatory, and contribute to the organization. It should motivate employees and allow feedback from employees.

I analyzed three-performance appraisal technique. First, Behavioral Observation Scales (BOS), which is a technique to evaluate performance, which identifies key factors of a position and rates an employee on how often they display the required behavior for that position. Second, Management by Objective (MOB) is the process to identify objectives for each employee and directs their performance against objectives, which have been pre-established. The goal is to match employee performance with organizational goals and include continuous tracking of the processes, provide feedback to reach stated objectives. Third, Behaviorally Anchored Rating Scales (BARS) breaks down each job into key tasks and identifies the type of behavior that employees should display when performing these tasks. The performance rating is then scaled and employees will be evaluated according to this scale (Schraeder, Becton & Portis, 2007, p. 20). I recommend the BARS method of appraisal because it breaks down each job requirements into tasks as opposed to trying to match employee objectives to organizational objectives, which can be quite complicated to achieve. It takes less time to develop and put into practice than the other two methods.

The Appraisal Plan

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The Appraisal Plan

Performance management processes opens communication between management and staff. It connects expectations and job performance standards to the goals of the organization. Supervisors and HR together should characterize what the expectations are for each position. These expectations should be communicated to new employees as well as current employees. A performance appraisal will carry no weight until each employee is aware of what is expected of him or her . Performance appraisals must be consistent across all departments. The responsibilities of the performance appraisal system will be assigned as follows: The Company's responsibility will be to create the strategic plan and provide support and resources. Managers will have the responsibility of establishing what the job requirements are. They will observe and document employees' performance and provide feedback to employees about their performance (Guern & Delp, 2005, p. 68). Managers and employees together will identify job goals and create an action plan to meet these goals. The employee responsibility will be to listen and act, not react, to feedback from management about job requirements and goals. Employee will be encouraged to provide feedback to managers about how to improve the work environment. Markle (2000) suggest HR's responsibilities should be to provide and facilitate training for managers, monitor the appraisal process of each department for compliance, ensure the appraisal process follows federal and state mandates and if needed a liaison between management and employees.

A formative appraisal will be conducted at three, six and nine months, for new hires and at the end of six months for employees who have one year or more of employment. The formative appraisal will identify areas in need of improvement as well as areas that are satisfactory. A summative appraisal will be conducted at the end of the year to determine if desired goals have been achieved or if more training is needed. Even though summative appraisals will be conducted at the end of the year, managers should monitor employee's performance throughout the year to ensure any deficiencies identified are being addressed and a plan put in place to improve deficiencies. This should be documented on a deficiency removal plan form.

Managers should set aside sufficient time for the performance appraisal meeting with employees. Nothing is more insulting to an employee than to receive an appraisal from a manager who seems to be too busy. Start an appraisal meeting with introductory remarks, give employee a copy of the appraisal, and go through each requirement and goals. Allow the employee to voice or write down any concerns they may have with the appraisal. Together managers and employees will identify new performance goals for the upcoming year. Managers should always end the meeting on a positive note. This may be achieved by focusing on some of the accomplishments the employee achieved throughout the year.

The appraisal will consist of a rating system, a section for remarks by the supervisor and a section for employee feedback. Both employee and supervisor will sign the performance appraisal form and the supervisor/manager will keep a copy for their files and send a copy to the HR department. The appraisal will be tailored to each job responsibility and consist of a rating system. An example would be, exceeds expectations, meets expectations, or below expectations (Armstrong, 2006 pp. 195-198). The expectations will be converted into a numerical rating scale ranging from three for exceeds expectations, a two for meets expectations and a one for below expectations (pp. 195-198). Each below expectations rating should be accompanied by a detail explanation of the deficiency and suggest ways to improve any deficiency and define a timeframe for deficiencies to be corrected. The appraisal must be related to the job performed. It makes no sense to think that a general appraisal form will work throughout the organization. Legally, we will not be justified in punishing an employee for failing to meet a requirement that does not fall under the employee's job description. Employee's that receive more than two below expected, may be assigned to a mentor, supervisor coaching, or outside coaching/training to work with employees to remove deficiencies. The coaching/training process will be documented to show the steps that are taken to improve performance. Any employee who fails to improve after remedial training, may be subject to termination.

The Benefits of a Performance Evaluation System

An effective appraisal system will help the organization by providing a solid foundation for all employees/employee relationships. Appraisals can be instrumental in determining how the job of employees can further or improve the overall goals of the organization. It allows for the examination of each employee's strengths and weaknesses, identifies and rewards good employees. This motivates employees to continue to grow and develop their skills, which in turn helps the organization grow as well. By providing feedback about the appraisal, this reduces the risk of complaints and possible lawsuits by ensuring employees feel they are treated fairly. Employees will have the opportunity to provide feedback, why they agree/disagree with the rating they received. Appraisals also identify problem employee and provides documentation that will be needed for any discipline action and if necessary, termination.

Communicating the New Appraisal Program to Employees

The HR department will communicate the new appraisal system to employees by conducting departmental meetings. Each employee will be given a copy of the appraisal form for his or her reference. It will be explained, in detail, how this new policy will affect employees and examine procedures and processes that will be used in the evaluation process. Employees will be encouraged to ask question or voice concerns they may have with the new program. New employees will be educated on this process during the orientation period.

Training for Managers

Managers will be required to go through Performance Appraisal Training. Training will be provided by the HR staff in a formal group setting. Training topics that will be covered include:

Reasons for performance appraisals
How much time should be spent doing appraisals
How to identify problem areas
How to improve employee performance
Promoting effective feedback
Proper completion of the appraisal document
How to conduct an effective appraisal

HR staff will model the appraisal process from start to finish. Managers will be divided into groups of two and they will practice the proper method to conduct an appraisal. HR will monitor training and provide feedback to managers. Managers will be required to attend training annually. Newly hired managers and employees promoted to a management position during the year will be assigned a mentor who will help instruct them in the appraisal process.

Challenges/Issues

Line managers may be reluctant to embrace the new appraisal plan. To reduce anxiety among managers, HR can involve them in the design and development of performance management processes. They should also be involved in reviewing the effectiveness of the program. If managers are part owner in a system, they become more receptive to a new system. Time constraint is also another challenge. We needed a consistent appraisal system in place, yesterday! However, it will take time to develop a good appraisal system and train management on the effective use of the new system. The goal is to have this system up and running within three months once approval is attained from senior management. I do not expect resistance from upper-management on this new program. I expect them to welcome a consistent appraisal system that will be implemented throughout the entire organization and aligned with organizational goals and objectives. This new system, once put into place, will lessen the opportunity for potential litigation, because proper documentation will be in place when and if we have to terminate an employee. Some employees, especially those who have not had a job appraisal before might be apprehensive at first. Their uneasiness can be laid to rest with proper training and reassurance that this program in not a "got you " program but rather a program designed to identify strengths and weakness and provide training to improve upon these weaknesses (Clausen, Jones, & Rich, 2008). This will enhance employee performance and this in turn will enhance the organization's performance.

References

Armstrong, M. (2006). Performance management: Key strategies and practical guidelines.

Kogan Page. Retrieve on March 3, 2008, from eBrary.

Clausen, T., Jones, K., & Rich, J. (2008). Appraising employee performance evaluation systems.

The CPA Journal 78(2), p. 74-67. Retrieved March 3, 2008, from ABI/Inform Global

database. (Document ID: 1430203961.

Guern, L., & Delpo, A. (2005). Performance appraisal handbook: A legal and practical guide

(2nd Edition). Delta Printing solutions. Retrieved March 4, 2008, from eBrary.

Markle, G. (2000). Catlytic: The end of performance review. Westport, CT: Greenwood

Publishing Group. Retrieved on March 4, 2008, from eBrary.

Schraeder, M., Becton, B., & Portis, R. (Spring, 2007). A critical examination of performance

appraisals: An organization's friend or foe? The Journal for Quality and Participation. Cincinnati. Vol. 30, Iss. 1, p. 20. Retrieved on March 6, 2008, from ProQuest Database.