Behavior continuum

– Behaviors are the things we can control
– Results are the outcome of behavior
– Effectiveness is not about personality but the process of doing better

When evaluating performance, we have to care about of how deep an employee has involved into a process.

Components of performance

1. Declarative knowledge
   – What does the employee do?
   – Approaches, goals, principles

2. Procedural knowledge
   – How employee does?
   – Cognitive, physical, perceptual, interpersonal
   – Motivation
   – Why does the employee do this?
   – Choices
   – – Expenditure of effort
   – – Level of effort
   – – Persistence of effort
   – Conscious practice leads to excellence
   – – Goal and getting better and better
   – – Performance focus: What is happening and why?
   – – Feedback from expert sources
   – – Gladwell Effect, 10 000 hours

When we do performance management, employees' motivation will be much higher if they see an individual approach to themselves.

Poor performance influencing factors

1. Individual characteristics
   – Procedural knowledge
   – Declarative knowledge
   – Motivation

2. Organizational support
   – HR practices
   – Work environment

3. HR practices
   – Hiring
   – Training
   – Development
   – Rewarding
   – Inclusive
   – Engaging
   – Work-life balance control

4. Motivation
   – Goal setting
   – Decision making
   – Recognition
   – Rewards

The employee's poor performance is a complex factor that we have to consider before starting the review process.

Performance management approaches

1. Individual approach (who they are as individuals)
   – Energetic
   – Creative
   – Patient

2. Behavior approach (how do they work)
   – Shows up on time
   – Play well with others
   – Communicates effectively

3. Results approach (what do they produce)
   – Profits
   – Satisfaction

The approach we select depends on the scale of the group we evaluate, its personal characteristics, and corporate culture and policies.

Methods of measuring results

1. Comparative (comparing employees one against the other)
   – Energetic
   – Creative
   – Patient

   PROC
   – Easy to explain
   – Simple process
   – Results are clear to employees
   – Easier to determine rewards
   – Identifies top, mediocre, poor, and under-performers
   – Force managers to evaluate the performance

   CONS
   – No information on the relative distance between
   – Poorly designed rankings may not be specific-enough for effective feedback
   – Difficult to rank similar performance levels
   – Can be time-consuming
   – Specific issues with the forced distribution method

2. Absolute (comparing employees’ performance with performance standards)
   – Essays
   – Behaviour checklist
   – Critical incidents
   – Graphic rating scale

   PROS
   – In large and small organizations
   – Evaluations more widely accepted by employees
   – Based on pre-defined behavior
   – Can be focused on future developments
   – Essays offer the potential for more in-depth feedback
   – Checklist can offer consistency and easy to use

   CONC
   – More time-consuming than comparative systems
   – Unstructured
   – Quality can be based on the skills of the manager

3. Factual (comparing employees’ performance against preset objectives)
   – Management by objectives
   – – – Results focused
   – – – Future focused
   – Management by SMART goals

   PROS
   – Objectives fit with the strategy
   – Objectives monitored when well contracted
   – Objectives can be less subjective
   – Objectives can be used for development
   – Measure real results based on achieving objectives and goals
   – Provides clear expectations

   CONS
   – Doesn’t necessarily take behaviors into account
   – Doesn’t always consider other factors that may play a role
   – Requires managers with strong performance management skills
   – When tied to rewards, may focus only on goals fit which they are rewarded

There are no unique or universal methods that cover all cases. The best way for getting a correct and valid evaluation is by combining methods depending on the specific groups of review.

Purposes of performance review

1. The performance process should be
   – Aligned with organizational goals
   – Fair process
   – Documented

2. Types of reviews
   – Formal
   – Informal

3. Essence of review
   – Performance assess
   – Platform for feedback
   – Dialogue for a positive outcome
   – Development
   – Motivation
   – Evidence for rewards, discipline, terminations

4. Review process
   – Clear expectations
   – Past and future behaviors and accomplishments
   – Goal setting for future growth
   – Job-relevant skill and knowledge assessment
   – Should be a review or recap
   – No surprises

5. Use of collected data
   – Strength
   – Training needs
   – Leadership
   – Succession
   – Compensation
   – Terminations

The performance review process includes a different level of interaction with employees. That helps to validate all collected data and make sure the evaluation results are correct.

Factors of effective review

1. Conducting steps
   – Discuss the importance of the review process
   – Explanation of meeting purpose
   – Jointly discuss accomplishments
   – Developmental and future goals discussion
   – Summarise
   – Set date for follow up

2. Employees’ expectations
   – Clear expectations
   – Positive/constructive feedback on a regular basis
   – Understand the evaluation creature
   – Involvement in goal setting
   – Accurate job description
   – Be treated fairly and consistently
   – Sharing of info and resources
   – Job/career enrichment opportunities

The effectiveness of the review lies in a consistent and supportive process. This is the both-side process that helps an employee to provide accurate results from one side. Conversely, it helps us, as team leads or team managers, to collect the relevant data and make the right evaluation summary.