Performance Management: A New National Standard with International Applicability
-
Upload
the-hr-observer -
Category
Business
-
view
48 -
download
0
description
Transcript of Performance Management: A New National Standard with International Applicability
Potential Global Implications
Performance Management
Standard
What is a Standard?
"A standard is a document, established by consensus, that provides rules, guidelines or characteristics for activities or their results”(As defined in ISO/IEC Guide 2:2004).
Standards are voluntary for organizations. • Reflect minimum standards of effectiveness • Provides adaptability to reflect organization’s
HR’s sophistication and development
Standards Development can be: • Country specific—ANSI; or Global---ISO
ISO/Technical Committee (TC) 260 for Human Resource Management
An international standard for HR terminology (convened by
the Netherlands)
A technical specification for Cost per Hire (convened by the U.S. and initially based on the American National Standard for Cost per Hire)
An international standard for Human Governance (convened by France)
An international standard for Workforce Planning (convened by Australia)
SHRM’s Role in
Standards Development
To lead the profession by sponsoring the
development of HR standards nationally through the American National Standards Institute (ANSI) process.
To meet the needs of the market by engaging HR
thought leaders to define the threshold of effective practices of the profession.
To promote the adoption and implementation of
standards
5
Status of US Standards Development
Staffing & Workforce Planning Taskforce
Cost Per Hire
Workforce Planning
Job Descriptions
Metrics & Measures Taskforce
HR Metrics & Reporting
Turnover Definition
Performance Management
Taskforce
Performance Management
Diversity & Inclusion Taskforce
Lead Diversity & Inclusion Professional
Diversity & Inclusion Programs
Diversity & Inclusion Metrics
Start-up of the workgroup creating
the standard
Standard in drafting phase
Standard in public review phase
Standard in ANSI approval phase
Publication of the standard
A published American National Standard for Workplace Violence Prevention and Intervention is also
available on the SHRM website.
What Your Leaders Need to Know: Standards Are Useful Tools for Organizations
An overview of general security policies, processes, and protocols that organizations
can adopt to help prevent threatening behavior and violence affecting the workplace
and better respond to and resolve security incidents involving threats and episodes of
actual violence.
.
What Your Leaders Need to Know: Standards Are Useful Tools for Organizations
Designed as a tool to determine accurate and comparable costs of recruitment through
a standard algorithm to calculate the recruiting costs to be incorporated into cost-per-
hire.
What Your Leaders Need to Know: Standards Are Useful Tools for Organizations
Designed as a proposed set of minimum elements of a performance management
system in three areas - goal setting, performance review and performance
improvement plans.
.
What you & your Organizational Leaders Want to Know
Volunteer subject matter experts (like
you) who develop the content of the
standards.
Taskforce members work through a
consensus process to define effective
practices for the HR profession.
Balanced by interest category and
representation of HR profession.
Standards Augment a Profession
Standards are a critical component to evolve a
profession.
• Development of national HR standards
A profession also needs a minimum barrier to entry
into the field.
• Minimum educational requirements
Competencies also denote levels of effective
performance by those in the profession.
• Competency based certification
What is Performance Management?
Performance management is the foundation for organizational effectiveness for employers worldwide. To innovate, develop, sell and maintain goods and services that deliver value to customers, clients or stakeholders, organizations must employ techniques that encourage and motivate employees to perform to their full potential in a manner that adds value to the organization.
(ANSI/SHRM-09001)
• Goal Setting Standard
• Job Description Goals – Day-to-day responsibilities
• Project Goals – Specific assignments
• Behavioral Goals – “How” things are done
• Stretch Goals – Expanding knowledge, skills, or
abilities
• Rating Scale – Measurement; future performance
• Elements • Participative
• Documented
• Specific
• Measureable
• Challenging
• Reasonable
• Time-sensitive
• Flexible
• Monitored
• Top Down
Module 1: Why Performance Management? Key System Components
• Performance Review Standard • Considers:
– Objective and subjective indicators
– Knowledge, skills, abilities, and personal characteristics
• Used for: – Personnel decisions
– Coaching
• Includes: – Training
– Measurement and controls
– Rating scale standards and calibration
13
Module 1: Why Performance Management?
Key System Components
Elements
Continuous
Timely
Goal-based Dialogue
Acknowledgment
Two-way Conversation
Documented
• Performance Improvement Plan (PIP) Standard
• Process for resolving persistent performance issues in accordance with documented guidelines
• Requires conversation and documentation
• Measureable results
• Elements • Employee Information
• Relevant Dates
• Description of:
o Performance Discrepancy/Gap
o Expected Performance
o Actual Performance
o Consequences
o Plan of Action • Signatures
• Evaluation
Module 1: Why Performance Management? Key System Components
Is Employee Productivity Stable? SHRM Customized Benchmarking Database
$576,397
$421,233
$287,324
$248,429
$343,246
$322,799
$527,233
$508,020
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
2006 2007 2008 2009 2010 2011 2012 2013
Revenue per FTE
Revenue per FTEThe Red Line represents the resession
Value of Effective Performance Management
Organizations with effective performance management practices can have a competitive advantage in maximizing firm-wide productivity over firms without effective performance management.
• Maximizing employee potential • Clarifies expectations for all employees • Addresses employees with low performance • Helps lower unintended turnover by increasing
communication between manager and employees
Performance Management ... and there’s more good news
Does your organization have a formal
employee performance evaluation process?
Yes, 98%
No, 2%
n = 510; SHRM/APT Metrics Poll:2011
SHRM/APT Metrics Poll 2011
Does your organization provide voluntary or mandatory training for the
performance evaluation process?
n = 510
3%
8%
44%
46%
7%
31%
48%
15%
Other
No, training not provided
Yes, voluntary training
Yes, mandatory training
All employees (n = 445)
People managers only (n = 444)
Are people managers in your organization required to support their performance ratings with written behavioral examples as
part of the formal performance evaluation process?
47%
26% 26%
Yes, for all ratings Yes, only for ratings at/neartop or bottom of rating scale
No
Note: n = 481. Percentages do not total 100% due to rounding. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations had a formal employee performance evaluation process were asked this question. SHRM/APT Metrics Poll 2011
Note: n = 463. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations had a formal employee performance evaluation process were asked this question. SHRM/APT Metrics Poll: 2011
Yes, 54%
No, 46%
Does your organization’s performance evaluation process involve a formal calibration or group review process to ensure consistency across ratings/reviews within a group (e.g., unit, department, division)?
Note: n = 249. Only respondents whose organizations had a formal calibration or group review process were asked this question. SHRM/APT Metrics Poll: 2011
5%
2%
15%
17%
61%
Other
No, HR seldom or never attends
Yes, but they just facilitate and do notactively participate
No, but HR does attend meetings whenrequested or under certain circumstances
Yes, and they actively participate
Are HR representatives included in all or a majority of these formal calibration or group
review meetings?
Demographics: Organizational Staff Size
Note: n = 481. Percentages do not total 100% due to rounding. Respondents who answered “Don’t know” were excluded from this analysis. Only respondents whose organizations had a formal employee performance evaluation process were asked this question. SHRM/APT Metrics Poll 2011
18%
26%
14%
19%
24%
2,500 to 9,999employees
10,000 to 17,499employees
17,500 to 24,999employees
25,000 to 49,999employees
50,000 or moreemployees
Questions?
Thank You!