Improving Individual Performance Systems: Effective

Performance Management Systems for Small States

Rosemund R. WarringtonCARICAD

November 3, 2009

• The Context and framework for Performance Management

• The Case for Change• The Performance Management Cycle• Problems with PM systems in the

Caribbean• CARICAD’s model• Requirements for Success

Doing Business in the OECS

The Context for Change:

Globalization

Shrinking Resources

Universality of Public Sector Reform

Demographics & Skills

Enterprising Internal Processes

Increasing Use of Technology

Public Services

Changing Citizen Expectations

Government Agenda

New Technology

External pressures for change

Internal pressures for change

Implications for HR Management

• Effective responses to the economic crisis should be identified

• Training, re-training and re-tooling of employees• Managing performance in the context of an

economic crisis• Strengthen areas of efficiency, reduce inefficiency

and waste• Quality service delivery• Recognise the importance of labour productivity for

overall economic growth and developmentSource: Kari GrenadeEconomist, Eastern Caribbean Central Bank, 2009

WHAT IS PERFORMANCE MANAGEMENT?

• Performance Management has been defined as a “Strategic and Integrated Approach to delivering sustained success to organizations by improving performance of people who work in them and by developing the capabilities of teams and individual contribution”. (Armstrong and Baron)

GovernmentPerformance

Organization Performance

UnitPerformance

LeadershipPerformance

Programme Performance

Team Performance

IndividualPerformance

Performance Model -Organizational and individual Performance Interdependence

??

Ref: Denis Ives, CAPAM 2005

STRATEGIC HRM MODEL: A Strategic Fit

UNIT PLAN

ORGANISATIONAL PLAN

NATIONAL PLAN

INDIVIDUAL PLAN

Training &Dev.

PerformanceMgmt

Rec.&Selection

EmployeeRelations

HR Planning / ICT

Compens-ation

Health &Safety

Guides Strategy and Policy

Influences Performance

R. Warrington, CARICAD

Are Employees aligned to the Strategy?If employees do not know their part of the plan,

They have no direction

Meaning they are disengaged and not focused

More than 30% of employees in organizations are disengaged

COMPLEXITY OF PERFORMANCE MANAGEMENT

Administrative

InterpersonalAspects

TechnicalAspects

DevelopmentalFeedback

Design of an Appraisal System

Appraisal Interviews

Promotion, Pay

Performance Management Cycle

Performance Management Cycle

Planning• Set Goals

• Establish and communicateelements and standards

Performance Management Cycle

Managing/Developing• Measure performance

• Provide feedback

• Conduct progress review

• Address poor performance

•Improve good performance

Performance Management Cycle

Reviewing• Summarize performance

• Assign the rating of record

• Recognize and reward good

performance

PERFORMANCE REVIEW METHODS

• 360-Degree Evaluation

• 720 –Degree Evaluation

• Rating Scales• Critical Incidents• Essay • Performance

Contracts

• Ranking• Paired Comparisons• Behaviourally

Anchored Rating Scales (BARS)

• Result-Based Systems

Problem with Systems of appraisal in the Caribbean

• No clear relationship between performance and the overall objectives of the organization

• No clear system of job description in place in

these territories

• Ministries have not worked out their own objectives or the necessary structures for the "new" systems of appraisal

• Concern with strategic planning in the public sector is a recent phenomenon

• No overall plan for personnel relations at the national level and changes were accordingly introduced in an ad hoc manner

• The structure and culture of the public services themselves

• Cost- Some governments just did not have the resources to reward enhanced performance

Source:The Introduction of New Appraisals Systems in The Public Services of the Commonwealth Caribbean-Public Personnel Management Journal, Summer, 2000

From my personal knowledge of how it works…

• Employees are graded on a “bell curve,” so that most workers are rated average or below average, regardless of the absolute level of their performance

• Employees have little input into the performance goals set for them.

• Performance appraisal is seen by managers and employees as a bureaucratic “paperwork” exercise that they do not take seriously because it has little impact on employee performance or development.

• Employees see nothing in the system for them; performance appraisals do not address their questions about skill development or career advancement

• The performance management system does not reflect or reinforce the organization’s strategy

• Performance ratings are very often inflated.

Structure AND Culture

STRUCTURESTRUCTURE BureaucraticBureaucratic Functional SilosFunctional Silos Chain of CommandChain of Command PyramidalPyramidal

CULTURECULTURE

Weak Internal CommunicationWeak Internal Communication

Poor Management/Employee Poor Management/Employee RelationsRelations

High Mistrust of Management High Mistrust of Management – Management/Employee – Management/Employee DisconnectDisconnect

Poor Human Resource Poor Human Resource Management PracticesManagement Practices

Poor Leadership and Poor Leadership and Management PracticesManagement Practices

Source: Dr. Kwame R. CharlesSource: Dr. Kwame R. CharlesQuality Consultants Limited, Quality Consultants Limited, Trinidad & TobagoTrinidad & Tobago

Leadership and Management

Lack of RespectLack of Respect

Lack of Fairness & Consistency of Lack of Fairness & Consistency of TreatmentTreatment

Power by PositionPower by Position

Command & Control…Command & Control…

Mgmt/Employee Relations

15%Leadership &

Mgmt13%

Work Proc & Practices

14%Job Satisfaction

12%HR Practices11%

Comm8%

Co's Goals & Objectives

4%

Deals with Change

3%

Compensation3%

Customer Focus

3%

Supervision2% Other

7%

No Answer5%

WHAT EMPLOYEES SAY WILL IMPROVE THEIR JOB PERFORMANCE

Source: Dr. Kwame R. CharlesSource: Dr. Kwame R. CharlesQuality Consultants Limited, Quality Consultants Limited, Trinidad & TobagoTrinidad & Tobago

A NEW MODEL FOR PERFORMANCE MANAGEMENT

AT CARICADCompetency based Performance Management

• Considers the HOW of performance

• Qualitative assessment

• Oriented to the future and focused on development

Integral HRIntegral HR

CARICAD’S MODEL OF CPM

• Performance is viewed in terms of the process employees use to achieve their Job results

• It combines planning, management and appraisal of both performance results and competency behaviours

• It assesses what employees accomplished and how they did it

Competency Matrix for CARICADCompetence DescriptionQuality of Work Work is consistent, thorough and

complete

Drive for Results Deadlines are consistently met and results are demonstrable

Job Knowledge Understands the job requirements and has specific content knowledge where appropriate

Learning Ability,Initiative and Flexibility

Is able to adjust to new methods and procedures, and learn new tasks and duties and use initiative

Competence DescriptionCommunication and Teamwork

Communicates effectively. Is a positive contributor to teams

Attitude and Service Communicates effectively. Is a positive contributor to teams

Leadership The ability to work with people to build high morale and group commitment to goals and objectives

Future Performance Management Issues

• How do we move from “silos to systems”?

• How can we inform and influence initiatives to improve performance of public services?

What’s the Transformation?

• A systems-wide scope that is more balanced, targeting competence, capacity, process and outcomes

TOWARDS A MORE EFFECTIVE PERFORMANCEMANAGEMENT SYSTEM

Sensitivity+

Reliability+

Acceptability+

Practicality

SUCCESS =

Requirements for Success

• Vision and Strong leadership/managerial support and commitment

• Department /Unit Roles and Mandates, Accountability• Organizational Cultural Change• Training• Mutual trust,

• Job relatedness• Documentation• Feedback and participation • Involvement and ownership by staff