Assess Performance

Once work has been allocated and performance standards/indicators set, you will need to design a performance management and review process that ensures that all objectives and standards are achieved. The performance management process you design should be based on the performance management cycle shown below.

The performance management process you design will include a number of activities spread throughout the performance management period. Performance management periods usually last twelve months but can be as short as six months. The activities in the performance management process you design may include but are not limited to:

• Define role profiles, updating as necessary.
• Ensure that role profiles set out updated key result areas and competency requirements.
• Define goals and standards of performance.
• Identify and define key performance indicators.
• Draw up development plans.
• Monitor progress and review evidence of achievement.
• Provide informal feedback as required.
• Provide coaching as required.
• Update role profiles and objectives as necessary.
• Prepare for performance review by analysing achievements (work and learning) against objectives.
• Identify specific strengths and weaknesses on the basis of evidence.
• Assess overall performance.
• Provide feedback.
• Use conclusions of performance review as the basis for next year’s performance and development agreement.

^{(Armstrong 2014, 17)}

Not all performance management processes are the same, you may not include all the activities listed above in your process and you may include other activities that aren’t listed.

The following extract describes the performance management process at defence contractor Thales Australia.

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Before you can start to conduct performance management processes you will need to train participants in the performance and review process. When training participants you will need to train both managers and their subordinates so that they know why performance management is important, how it works, what they need to do and any skills they will need. In order to train participants you will need to design a training plan.

Group training in performance management can usually be conducted in a half day to two day session (depending upon the complexity of the process and the organisation). The session you develop should include a combination of techniques consisting of both formal and informal learning. Training sessions should be grouped into management and employees so that each group can be trained in the relevant parts of the process. Each participant should have access to their own training materials which they should be able to keep once the training is over. Training should include an introduction by the trainer and a description of the specific learning objectives. Successful training sessions usually incorporate a variety of training methods which are appropriate to the topic and each student should complete a proficiency test or assessment at the end of their session. Training should incorporate also any legal and ethical considerations that users should be aware of such as privacy, discrimination and industrial relations. And of course, training sessions which last more than an hour should include regular rest breaks.

The training techniques you use will vary depending on your organisation, staff training needs, and the complexity of the process you develop. Training can be provided using a variety of techniques such as:

• Presentations
• Lectures
• Tutorials
• Group discussion
• Practical application
• Demonstrations
• Simulations
• Practical assessments
• Theory assessments
• Quizzes

When designing a training program you will also have to consider and organise a number of other elements, such as

• Training personnel – will you use in-house or external trainers?
• Training facilities – will training take place in-house or at an external location?  
• Training equipment – will you need a computer, projector, software, etc?
• Training materials – will you need workbook, handouts, forms, slides, etc?
• Training schedule – when will training take place and how often?
• Induction training – new hires and promotions will also require training
• Remedial training – some staff may need additional training and support
• Gathering feedback – how will you determine if training is successful?

The following extract contains some suggestions for designing effective training programs.

• Ensure that you do a thoughtful needs analysis of the organization and prospective learners before designing and delivering the training. 
• Stay flexible in your design and delivery. If you need to change gears in response to what you're seeing and hearing, don't be afraid to do so. This means, however, that you must go into the session with a deep understanding of the content, which will enable you to pivot when necessary. Be prepared.
• Actively involve participants in their own learning. Use a variety of interactive training methods: small groups, pairs, role-playing, action planning, pop quizzes, practice time, brainstorming, games, and guided inquiry are some common methods. Be adventurous and take some risks to help make learning happen.
• Break up the allotted training time into segments, focusing on a specific learning outcome in each.
• Design each learning segment with a clear beginning, middle, and end. Ensure that the training methods and activities you use help achieve the specific learning objective of each segment.
• At the beginning of the session, give trainees the "big picture" of the topic and the issues you'll be exploring with them during the program.
• Solicit participant questions and integrate a process of addressing these questions into your training delivery.
• Provide sufficient time for learning integration. Pace your learning objectives and supporting activities to allow time for trainees to reflect upon their learning insights and integrate them into their future practice.
• Provide supplemental worksheets to facilitate the trainees' recording of key learning insights ("aha! moments") gleaned from session discussions and applications.
• Build trainee action planning into your training program. Developing a specific action plan of what the trainee will do back on the job helps ensure that what is learned is applied to daily tasks and responsibilities after the training session.
• Strive to integrate all three ways in which people learn (auditory, visual, and kinesthetic) when teaching each of your learning outcomes. For example, when delivering a specific learning objective to trainees, tell a revelatory story (auditory), give people a checklist or graphic that displays key learning points (visual), and engage the learner in some "doing" activity—such as role-playing or action planning (kinesthetic). By using each of the three learning modes to teach every learning objective, the trainer increases the likelihood that each trainee, regardless of his or her preferred learning style, will remember the learning objective.
• End your training session with a recap of the key learning points and a final restatement of the value of translating the insights gained into daily practice.

^{(Russell and Russell 2009, 59)}

The following case study has been developed to assist your learning in this unit. In the case study below the operations manager of ABC Technologies trains his employees to participate in performance management.

Case Study

ABC Technologies
David was asked to develop a performance management process for his department. He then had to train his team how to use the performance management process. He decided his team needed training in the following areas:

• What is performance management and why is it important?
• An overview of the new process
• Goal setting
• Self evaluation

David subsequently developed the following training plan.

Training Plan

Employee name		Production team
Employee position		Production
Manager name		David
Manager position		Production Manager
Date of training		01/03/201X
Resources		Slides/paper/pens/forms
Learning objective		Performance management
Time	Topic	Activity	Resources
09:00 – 09:30	Introduction	Presentation	Slides
09:30 – 10:00	Learning Objectives	Presentation	Slides
10:00 – 10:30	What is PM	Presentation	Slides/paper/pens
10:30 – 11:00	What is PM	Discussion	Slides
11:00 – 11:30	Overview of process	Presentation	Slides/paper/pens
11:30 – 12:00	Overview of process	Discussion	Slides
12:00 – 01:00	BREAK	-	-
01:00 – 01:30	Goal setting	Presentation	Slides/paper/pens
01:30 – 02:00	Goal setting	Discussion	Slides
02:00 – 02:30	Goal setting	Application	Forms/pens
02:30 – 03:00	BREAK	-	-
03:00 – 03:30	Self evaluation	Presentation	Slides/paper/pens
03:30 – 04:00	Self evaluation	Discussion	Slides
04:00 – 04:30	Self evaluation	Application	Forms/pens
04:30 – 05:00	Conclusion	Discussion	Slides

In summary, David decided that because the first two topics (what is performance management and overview of process) were knowledge based he would train participants using a presentation followed by a group discussion.

Since the next two topics (goal setting and self evaluation) were practical David decided to use a combination of presentations, followed by discussions, followed by applications where employees would have a chance to practice setting goals and self evaluating.

David also thought it was important to explain the learning objectives at the start of the session, include breaks and finish with a summary of what was learned.

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Now that all employees have been trained in performance management it is time to start conducting performance appraisals. The performance appraisal occurs at the beginning of the performance management cycle in the planning phase.

During the performance appraisal you should:

• Give feedback for the previous period
• Assess performance for the previous period
• Agree and build on existing strengths
• Agree on areas for improvement
• Work with clear role definitions (position descriptions)
• Set clear objectives for the next period
• Agree on competencies to be obtained
• Develop and agree on performance improvement plans
• Develop and agree on personal development plans

When conducting performance appraisals it is import to consider the following questions:

• Is there an up-to-date role profile that sets out key result areas and competency requirements? 
• Have ‘SMART’ objectives been set for each of the key result areas? 
• Have individuals been encouraged to formulate for themselves performance and personal development plans? 
• Has a realistic performance development plan to enhance strengths and overcome any weaknesses been agreed? 
• Has an attainable personal development plan been agreed? 
• Are plans based on an analysis of past performance and an assessment of future demands (new skills to be acquired, new tasks for the role holder, changes in the role or scope of the function)? 
• Do the plans indicate success criteria – how the individual and the manager will know that the desired results have been achieved? 
• Has the agreement been reached through constructive dialogue, with the full involvement of the individual and without any sort of coercion from the manager? 
• Have individuals been empowered to implement the plans? 
• Has provision been made for monitoring and reviewing progress without being oppressive?

^{(Armstrong 2014, 355)}

When conducting performance appraisals it is also important to follow any existing organisational protocols and timelines. Organisational protocols and timelines can usually be determined by examining the performance management policies and procedures of your organisation. Where performance management policies and procedures don’t already exist you should develop them in consultation with relevant managers. As mentioned earlier most organisations conduct performance appraisals annually. Other organisations choose to conduct performance appraisals more frequently (e.g., every six months) but it is inadvisable to wait longer than twelve months between appraisals. The timing of performance appraisals is also important – some organisation manage performance on the same day that an employee started with the company each year. Others manage all employees’ performance at the same time, often at the end of the calendar year or financial year.

The following extract describes the performance appraisal process and timeline at CEMEX.

CEMEX’s performance management scheme runs over the calendar year as follows:

• The company’s overall budget is set in January and from this the most senior managers’ objectives are established which are then cascaded down the organization.
• Around July, there is a mid-year review of initial objectives set and discussions on how the individual is progressing over the first part of the year.
• Finally, between November and January an ultimate meeting takes place where line managers and individuals meet and staff are rated between one and five by their line managers.

^{(Armstrong, 2014, 373)}

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In addition to formal performance management session, managers are also required to monitor employee performance on a day-to-day basis. This allows line managers to identify performance issues early and jointly devise a solution with the employee before the end of the performance management period.

Monitoring performance occurs during the monitor phase of the performance management cycle. While employees implement their performance management plan, managers monitor their performance and provide feedback and coaching.

“Monitoring performance is a structured, planned activity where both the manager and the staff member collect examples and samples of their actual performance for comparison against the agreed performance objectives.

And a quick word about what monitoring isn’t – it isn’t about checking every bit of the staff member’s work or about following them around. It’s about collecting examples and samples.”

^{(Henshaw 2012, 1)}

The examples and samples you collect when monitoring performance may relate to:

• Results
• Events
• Critical incidents
• Significant behaviour

Collecting examples and samples may involve but is not limited to:

• Direct observation
• Reading reports
• Self reporting by employees
• Gathering feedback from clients, customers, superiors or subordinates
• Data collection and analysis
• Performance tracking software

The performance monitoring techniques you use should be agreed up by the employee during the performance appraisal and should be directly related to their objectives and KPIs.

Watch

This section of the module we focused on assessing performance. In this section you have learned how to design performance management processes, train participants, conduct performance appraisals, and monitor and evaluate performance.

Armstrong, Michael. 2009. Armstrong’s Handbook of Performance Management. London, UK: Kogan Page.

Armstrong, Michael. 2014. Armstrong’s Handbook of Human Resources Management Practice. 13th ed. London, UK: Kogan Page.

Fair Work Ombudsman. 2015. Employee Entitlements. Accessed May 14, 2015. http://www.fairwork.gov.au/employee-entitlements.

Henshaw, Joan. 2012. Monitoring Employee Performance, What’s the Point? Accessed May 21, 2015. http://hr.toolbox.com/blogs/managing-employee-performance/monitoring-employee-performance-whats-the-point-50970#comments.

London Deanery. 2015. Giving Formal Feedback. Accessed May 25, 2015. http://www.faculty.londondeanery.ac.uk/e-learning/feedback/giving-formal-feedback.

Russell, Linda and Russell, Jeffrey. 2009. ASTD's Ultimate Performance Management: Training to Transform Performance Reviews into Performance Partnerships. Alexandria, VA: ASTD Press.

Sign Up Genius. (n.d.). 10 Ways to Improve Employee Training and Development Programs. [Photograph of several professionally dressed people sitting and watching a presentation]. https://www.signupgenius.com/business/ways-to-improve-employee-training-development-programs.cfm

Workplace Info. 2009. Performance Management: Two Case Studies. Accessed May 27, 2015. http://workplaceinfo.com.au/hr-management/performance-management/analysis/ performance-management-two-case-studies#.VWUXFNKeDRZ.