Performance Management - the Crompton Greaves perspective by NS Srinivas
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Transcript of Performance Management - the Crompton Greaves perspective by NS Srinivas
PERFORMANCE MANAGEMENTPERFORMANCE MANAGEMENT
10th July 2009
THE STORY OF THE BUILDERAn elderly carpenter was ready to retire. He told his employer-contractor of his plans to leave the house building business andp glive a more leisurely life with his wife enjoying his extended family.He would miss the pay check, but he needed to retire. They couldget by.get by.
The contractor was sorry to see his good employee go and askedif he could build just one more house as a personal favor. The
t id b t i ti it t th t hi h tcarpenter said yes, but in time it was easy to see that his heartwas not in his work. He resorted to shoddy workmanship and usedinferior materials. It was an unfortunate way to end his career.
When the carpenter finished his work and the builder came to inspect the house, the builder handed the front-door key to the carpenter. “This is your house ” he said :”My gift to you”
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“This is your house,” he said, :”My gift to you”.
THE STORY OF THE BUILDERWhat a shock! What a shame! If he had only known he wasbuilding his own house, he would have done it all so differently.Now he had to live in the home he had built none too wellNow he had to live in the home he had built none too well.Think of yourself as the carpenter. Think about your house. Each day you hammer a nail, place a board, or carpet, or erect a wall. Build wisely. It is the only life you will ever build. Even if you live it for only one day more, that day deserves to be lived graciously and with dignity. The plaque on the wall says,”Life is a do-it-yourself project”.Who could say it more clearly? Your life today is the result of your attit des and choices in the past Yo r life tomorro ill be res ltattitudes and choices in the past. Your life tomorrow will be result of your attitudes and the choices you make today.
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Business Vs. PeopleBusiness Vs. People
CultureCulture
PEOPLE
FinanceMarketing
4
g
ORGANIZATIONS OF THE PASTORGANIZATIONS OF THE PAST
Structure
StabilityStability
Consistency
Rules
Rigidity
Linear
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ORGANIZATIONS OF THE FUTURE
Exploration
Adjustment
Dynamics
Innovation
Exploration
Change UncertaintyUncertainty
Growth
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Deploy yourself. Strike hard. Try everything. : Warren Bennis
DEFINITION OF PERFORMANCE APPRAISALAPPRAISAL…
The overall objective of performance appraisal is toimprove the efficiency of an enterprise by attemptingto mobilise the possible efforts from employees. Suchto mobilise the possible efforts from employees. Suchappraisals achieve four objectives:
• Development and training• Planning job rotation• Assistance promotions• Salary reviews• Salary reviews
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PERFORMANCE MANAGEMENT :PERFORMANCE MANAGEMENT : WHAT IS IT?
Performance Management is an ongoingcommunication process, undertaken inpartnership, between an employee and hisor her immediate superior, which has twosub-sets :1. Involves establishing clear expectations;g p2. Understanding about the jobs to be
done.done.
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PERFORMANCE MANAGEMENT : WHAT IS IT?WHAT IS IT?
The essential job functions the employee isexpected to do;p ;How the employee’s job contributes to the goalsof the organization;What “doing the job well” means in concreteterms;How employee and supervisor will work togetherHow employee and supervisor will work togetherto sustain, improve or build on existingemployee performance;How job performance will be measured; andIdentifying barriers to performance and removingthemthem.
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PERFORMANCE MANAGEMENT : WHAT IS IT?WHAT IS IT?
Performance Management is a means ofti f d kipreventing poor performance, and working
together to improve performance.
Is a ongoing process with two wayg g p ycommunication between the performancemanager and the staff member.g
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PERFORMANCE MANAGEMENT : WHAT ISN’T?WHAT ISN T?
Performance Management isn’t :1. Something a manager does to an employee;2. A club to force people to work better or
harder;3. Used only in poor performance situations;4. About completing forms once a year.
Key point : it is about people working with people to makeevery one perform better and you have a much greater
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every one perform better and you have a much greaterchance to succeeding. Everyone wins.
OBJECTIVE OF PERFORMANCE APPRAISAL
Performance Appraisal is concerned with encouraging the BEST possible level ofPerformance Appraisal is concerned with encouraging the BEST possible level of Performance from an Executive through the provision of appropriate Management Support
Employee knows what they are expected to do and can determine how well theyEmployee knows what they are expected to do and can determine how well they have done it
Employee is involved in establishing objectives which raises their commitment to achieving themachieving them
Employee understands how his/her performance is measured and can monitor themselves
Employee feels that the results are important and attainable
Four main components of Performance Appraisal :
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Four main components of Performance Appraisal :
Plan ==> Act ==> Monitor ==> Review
PERFORMANCE APPRAISAL -NEEDSNEEDS
ORGANIZATIONAL EMPLOYEE
• To ensure the appraisal is fair & objective
• To Develop competent, trained &
• To discuss my performance
• To discuss plans for futureTo Develop competent, trained & motivated employees
• To identify Training & Development opportunities
• To get a fair hearing
• To provide ideas / feedback on roleopportunities
• To achieve organizational objectives
• To improve the flow of information
To provide ideas / feedback on role
performed
• To understand my role better• To improve the flow of information
• To raise performance standards
• To understand my role better
• To develop working relations
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HISTORY OF PERFORMANCE APPRAISALAPPRAISAL…
Early references of Performance Appraisal were over ahundred years back.
Merit Rating System – Federal Civil Service Commission :1887.
1914, Lord & Taylor introduced performance appraisal.
Initial Performance Appraisals were more focused onindividual’s personality and traits than actualp yachievements.
1950 Peter Drucker’s Management by Objectives (MBO)1950, Peter Drucker s Management by Objectives (MBO)and Douglas McGregor’s book The Human Side ofEnterprise led to a formal Performance Appraisal System.14
NEW MODELS OF PERFORMANCE APPRAISALAPPRAISAL…
A Job Performance Model A Performer; In a givenSituation; Engages in certain behaviours; that producesresultsresults.
A Situation Analysis.
Traits based Performance Appraisal.
Behaviorally Anchored Rating Scales (BARS) Appraisalon a specific job.
Essay-type Performance Appraisals
Balance Scorecard MethodologyBalance Scorecard Methodology.
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TRENDS IN PERFORMANCE APPRAISALItem Former Emphasis Present Emphasis
Terminology Merit Ranking Employee AppraisalPerformance Appraisal
Purpose Determine qualifications for wage increase, transfer, promotion, lay-off
Development of the individual, improved performance on the job; and to provide emotional security
Factors Rated Heavy emphasis upon personal traits
Results, accomplishments, performance
Techniques Rating scales with emphasis upon scales. Statistical manipulation of data for comparison purposes
Mutual goal-setting, critical incidents; group appraisal; performance standards; less quantitativequantitative
Post Appraisal Interview
Superior communicates his rating to employee and tries to sell his evaluation to him; seeks to have
Superior stimulates employee to analyze himself and set own objectives in line with job
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;employee conform to his view
j jrequirements; superior is helper and counselor
EFFECTIVENESS OF PERFORMANCE APPRAISAL
As an example company GE has used MBO / Theory Y approach in1960. Scientific Study results are :y
Criticism has a negative effect on achievement of goals.
Praise has little effect one way of the other.
Performance improves most when specific goals are established.
Defensiveness resulting from critical appraisal produces inferior performance.
Coaching should be a day-to-day, not a once a year activity.
Mutual goal setting, not criticism, improves performance.
Interviews designed primarily to improve a man’s performance.
Participation by the employee in the goal setting procedure helps produce favorable results
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favorable results.
Even today the above findings are equally relevant as they were in 1960.
HOW FORTUNE 100 COMPANIES USEHOW FORTUNE 100 COMPANIES USE PERFORMANCE APPRAISAL DATA
Improving work performance.
Administering merit pay.
Advising employees of work expectations.g p y p
Counseling & Motivating employees.
Making Career Decisions & career goalsMaking Career Decisions & career goals.
Assessing employee potential.
Development plansDevelopment plans.
Better working relationships.
V lid ti hi i d i i
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Validating hiring decisions.
Source : Steven Thomas and Robert Bretz “Research & Practice in Performance Appraisal.
PERFORMANCE EXCELLENCE
Is about reviewing and raising the.. Is about reviewing and raising theperformance threshold, for self and aspart of a team for competitive edge;part of a team, for competitive edge;setting and meeting stretch targets;accomplishing and exceedingaccomplishing and exceedingperformance commitments. It meansdiscouraging mediocrity in others anddiscouraging mediocrity in others andourselves and confronting status quo.
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Performance Excellence
• Pursues results with
Positive Indicators Negative Indicators
Frequently fails onPursues results withprofessionalism
• employee engagement andrespect to system / process
• Frequently fails oncommitments.
• Accepts mediocrityDi f il• Encourages Performance
Culture• Uncompromising
responsibility
• Disowns failure• Creates hurdles in the way
of performanceresponsibility
• Quality with speed• Proactively builds systems &
processes
• Transfers negative emotions• Indecisive even when
adequate data & authorityp• Nurtures calculated risks• Resolves conflicts in favour of
larger interests
exists.
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PHILOSOPHY
• To build a Performance sensitive Organizationg• To create a culture of measures for achievements – across all
functions.• To differentiate and identify star performers, consistent y p ,
performers, and “below expectations performers”• Driven around Organization Values & Competency Model
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Transformation towards a Great Place to Work …
THRUST:
• Build a Value-driven Leadership• Build a Value-driven Leadership• Develop a Performance sensitive Organization• Create an Engaged Culture amongst Employees
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Transformation towards a Great Place to Work …
Diff ti tiDifferentiating…
Apples from
Oranges
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UNDERSTANDING CAPACITIES AND COMPETENCIESCOMPETENCIES
PotentialCapacity
CompetencyCapacity
Capacity = Demonstrated competencies+ U li d t ti l+ Unrealized potential
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Capacity to Learn
Willingness to look
Observing one’s own thoughts, actions and emotions/feelings and g
back and learn; ability to learn from mistakes and identify areas of
improvement
emotions/feelings and using the awareness to
improve further and perform better
Ability to get into a new y gexperience with an open mind and flow with the
experience. The child like ability to derive joy out of
learning
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learning
Capacity to ThinkCapacity to Think
Capacity to think comprises of analysis creativity &Capacity to think comprises of analysis, creativity & innovation and a combination of both i.e. judgment
Analysis is about asking the right
Creativity and Innovation is about questions and
breaking complex things into simpler
things Judgment requires a combination of both, this is what
Innovation is about generating new
thoughts and breaking the existing patterns of
thought
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,helps us take quality decisions
Capacity to Relatep y
Ability to Listenwith warmth and
Empathizingis the ability to with warmth and
respect. Active listening is free of biases,evaluation and pre-conceived
ti
Trust requires a combination of both
is the ability to put oneself in
someone else’s shoes(by getting out of our own
h )notions empathizing and listening. It’s about authenticity,
openness and genuineness
shoes)
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Capacity to Act
Organizing one’s time and
delegation,attention to detail and focus on the right process build capacity to and
resources so that we convert our intentions into reality
Working under pressure and time constraints and the ability to handle multiple tasks without
build capacity to implement
into reality handle multiple tasks without negative stress
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BASIC CORE COMPETENCIESBASIC CORE COMPETENCIESManaging RelationshipsDirection SettingP l St lPersonal StyleGetting ResultsManaging Change
ENABLERS
High Learning Quotient
Professional Conviction
P f E ll29
Performance Excellence
PERFORMANCE MANAGEMENT : BENEFITSBENEFITS
For Managers :
1. Reduce your need to be involved in everything thatgoes on (micromanagement).
2 S ti b h l i l k d i i2. Save time by helping employees make decisions ontheir own (knowledge building and clearunderstanding).g)
3. Increases role clarity among employees.4. Reduces mistakes and errors (and their repetition).
PMS is an investment upfront for the Manager can just let theiremployees do their jobsp y j
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PERFORMANCE MANAGEMENT : BENEFITSBENEFITS
For Employees :
1. Know their performance during the year (Discusswork progress; receive feedback.
2. Enables degree of empowerment – make decisionsab es deg ee o e po e e t a e dec s o s3. Clear role clarity.4. Identifies the improvement areas.5 O t it t d l kill5. Opportunity to develop new skills.6. Reduces mistakes and errors (and their repetition).
Employee benefit from better understanding their jobs and their jobresponsibilities and enable them to act freely within the definedp yparameters.
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PERFORMANCE MANAGEMENT : BENEFITSBENEFITS
For Organization :
1. Every employee understands how their workcontributes to the success of the companycontributes to the success of the company.
2. Increases Productivity.3 High Morale among all employees3. High Morale among all employees.4. Documenting performance problems on timely
basisbasis.5. Tracking communication and YOY performance.6 Legal Perspective6. Legal Perspective.
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PERFORMANCE MANAGEMENT : KEY SUCCESS FACTORSKEY SUCCESS FACTORS
PMS should provide :1 A means of work that aims to achieve the goals1. A means of work that aims to achieve the goals
and objectives of the organization.2 Identify the critical processes remove bottle-2. Identify the critical processes, remove bottle
necks and improve processes that keep theorganization more effective.
3. Clear integration of other HR sub-processes suchas promotions, employee development etc.
4. A method of providing regular, ongoing feedbackto employees in a way that supports theirmotivation.
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PERFORMANCE MANAGEMENT : KEY SUCCESS FACTORSKEY SUCCESS FACTORS
PMS should provide :5 A means of preventing mistakes by clarifying5. A means of preventing mistakes by clarifying
expectations, establishing shared understandingof what employees can and cannot do on theirp yown;
6. Showing how each employee’s job fit in theorganization context.
It is very important to think PMP as system; focus on theoverall purpose.
34
PERFORMANCE MANAGEMENT : EFFECTS OF POOR DESIGN AND EXECUTIONEFFECTS OF POOR DESIGN AND EXECUTION
1. Undermines the credibility of management.2. Employees consider the process as “waste of
time”.3. Hurts morale.4. Bring employee and manager in a confrontational
positions that damages motivation.5. Poor systems and execution can provide a false
f isense of security.6. Managers may suddenly find themselves caught
i it ti i hi h th h l l t d lin a situation in which they are helpless to dealwith performance problems. 35
THE CONTEXT OF MEASUREMENT
Performance Measurement is a process by which anagency / program / function / outlet office objectivelyassesses and evaluates the extent to which it isaccomplishing a specific objective, goal, or mission.accomplishing a specific objective, goal, or mission.Performance measurement alone is incomplete.
Performance Management is a systemic link betweenPerformance Management is a systemic link betweencompany strategy, Investments, and processes.Performance Management is a comprehensivemanagement process.
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WHY MEASURE PERFORMANCE?
Enables decision makingManage by resultsManage by resultsPromote accountabilityDistinguish between program success and failureAllow for organizational learning and improvementAllow for organizational learning and improvementJustify budget requestsOptimize InvestmentsProvide means of performance comparisonProvide means of performance comparisonFulfill mandatesEstablish catalysts for changeAnd so onAnd so on…
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WITHOUT MEASURING, DECISION MAKERSHAVE NO BASIS FOR:
Knowing what is going on in their enterpriseEffectively making and supporting decisions regarding
HAVE NO BASIS FOR:
Effectively making and supporting decisions regarding Investments, plans, policies, schedules, and structureSpecifically communicating performance expectations to subordinatessubordinatesIdentifying performance gaps that should be analyzed and eliminatedProviding feedback that compares performance to a standardProviding feedback that compares performance to a standardIdentifying performance that should be rewarded
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TYPES OF MEASUREMENTS
Definition ExampleIntermediate outcomes that predicts or
Measure Type
Leading
Lagging
Intermediate outcomes that predicts or drive bottom-line performance results
Bottom-line performance results resulting from actions taken
Employee turnover rate
Employee satisfaction rating
Input
Output
Amount of Investments, assets, equipment, labor hours, or budget dollars used
Units of a product or service rendered Number of Value Meal orders fulfilled
Number of cashiers
Output
Outcome
- a measure of yield
Resulting effect (benefit) of the use or application of an output
Number of Value Meal orders fulfilled
Customer satisfaction rating
Objective / Quantitative
Empirical indicators of performance
Subjective / Q alitati e
Perceptions and evaluations of major customers and stakeholders
Wait time
Customer complaints received as a % of total customers servedQualitative customers and stakeholders of total customers served
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EXAMPLES OF MEASUREMENTS BY PERSPECTIVE
Stakeholder / CustomerStakeholder / Customer Internal ProcessesInternal ProcessesC t t ti f ti l l • Number of unscheduled maintenance calls
• Production time lost because of maintenance problems
• Percentage of equipment maintained on schedule
• Current customer satisfaction level
• Improvement in customer satisfaction
• Customer retention rate
• Frequency of customer contact by customer i • Average number of monthly unscheduled outages
• Mean time between failures
service
• Average time to resolve a customer inquiry
• Number of customer complaints
Learning and GrowthLearning and Growth InvestmentsInvestments• % of facility assets fully funded for upgrading
• % of IT infrastructure investments approved• Percentage employee absenteeism
H f b t i • % of IT infrastructure investments approved
• # of new hire positions authorized for filling
• % of required contracts awarded and in place
• Hours of absenteeism
• Job posting response rate
• Personnel turnover rate
• Ratio of acceptances to offers
• Time to fill vacancy
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A MULTIPLE CHOICE QUESTION –APPROPRIATE MEASUREMENT ??APPROPRIATE MEASUREMENT ??
The measurement, % of employees following ai d t d l ld tsupervisor approved competency model, would most
likely be placed in which perspective of the BalancedScorecard?
a. Stakeholder / Customerb Learning and Growthb. Learning and Growthc. Agency Investmentsd. Internal Processes
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MULTIPLE CHOICE QUESTION –AND THE ANSWER ISAND THE ANSWER IS . . .
b – this measurement relates to helpinggrow the workforce and this would mostglikely fit with the Learning and Growthperspective of the Balanced Scorecard.
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SOME BASIC GUIDELINES FORGOOD PERFORMANCE MEASURES
• You should have at least one measurement for each
GOOD PERFORMANCE MEASURES
• You should have at least one measurement for eachobjective.
• Measurements define or explain objectives intifi bl tquantifiable terms:
Vague => We will improve customer servicePrecise => We will improve customer service byPrecise We will improve customer service by
reducing response times by 30% byyear end.
• Measurements should drive change and encourage• Measurements should drive change and encouragethe right behavior.
• Should be able to influence the outcome.
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SELECTION CRITERIA FOR PERFORMANCE MEASUREMENTSPERFORMANCE MEASUREMENTS
MEANINGFUL - related significantly and directly to organizations g y y gmission and goal
VALUABLE – measure the most important activities of the organizationorganization
BALANCED – inclusive of several types of measures (i.e. quality, efficiency)
LINKED - matched to a unit responsible for achieving the measure
PRACTICAL – affordable price to retrieve and/or capture data
COMPARABLE – used to make comparisons with other data over time
CREDIBLE - based on accurate and reliable data
TIMELY d t d t i bl ti fTIMELY - use and report data in a usable timeframe
SIMPLE -- easy to calculate and understand44
WHAT IS PERFORMANCE PLANNING?
Performance Planning is a DiscussionProcess.
A First Step of an Effective PerformanceA First Step of an Effective PerformanceManagement Process.
45
OBJECTIVE OF PERFORMANCE PLANNING
Coming to agreement on the individual’s key jobComing to agreement on the individual s key jobresponsibilities.
Developing a common understanding of the goalsand objectives that need to be achieved.
Identifying the most important competencies thatthe individual must display in doing the job.the individual must display in doing the job.
Creating an appropriate individual developmentgplan.
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IMPORTANCE OF PERFORMANCEIMPORTANCE OF PERFORMANCE PLANNING
It is the bedrock of an effective PMSIt is the bedrock of an effective PMS.
Gives Manager the chance to talk about his/heri hi h i l i i hexpectations which are genuinely important in the
individual’s job.
Gives Individual a clear operating charter so thathe can go about doing the job with the fullcertaintycertainty.
Individual’s working on the highest priorityresponsibility and operating in a way that theorganization expects. 47
GOAL SETTING A KEY ELEMENT OFGOAL SETTING – A KEY ELEMENT OF PERFORMANCE PLANNING
It identifies the key responsibilities of theIndividual’s jobIndividual s job.
The competencies or behaviours that theporganization expects every one to display.
S tti i t l f th i ( )Setting appropriate goals for the upcoming year(s).
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GOAL-SETTING FUNDAMENTALS
KPA – principle of prioritizing, concentrating – What h bit d I d t lti t t ti thihabits do I need to cultivate to practice this principle?Goals Objectives Targets Outputs DeliverablesGoals, Objectives, Targets - Outputs, Deliverables.Measures of Performance –
choosing appropriate meas reschoosing appropriate measures, using multiple measures,line and service measuresline and service measures.
Time Standards for each deliverable.Detailing Aligning and CascadingDetailing, Aligning, and Cascading.
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GOAL SETTING RESULTSGOAL SETTING – RESULTS
It forces the identification of critical success factorsIt forces the identification of critical success factorsin the job.
It mobilizes individual and organizational energy.
It forces concentration on highest priority activitiesIt forces concentration on highest priority activities.
It increases probability of success.It increases probability of success.
It generates increases in productivity.
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CG’S PMS JOURNEY : INSIGHTS &
EXPERIENCESEXPERIENCES
51
CG’s PMS JOURNEY- KEYLLEARNINGS
• Role Clarity for an Individual• Role Clarity for an Individual.• Employee started feeling & seeing that they
are part of Company / Business Performanceare part of Company / Business Performance.• Employees have taken ownership of their
goalsgoals.• Interdependency to achieve goals.
E l f l PMS b f i• Employees feel new PMS to be fair.• Pushed individual performance to higher
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level.
CG’s PMS JOURNEY- KEYLEARNINGS
• Institutionalized culture of meticulous planningt hi l
LEARNINGS
to achieve goals.
• Subjectivity in appraisal of performance reduced.j y pp pGiving way to objectivity.
• Performance Counseling sessions got kicked off• Performance Counseling sessions got kicked off.
• Linkage between Business performance andIndividual Performance got established.
• Automation of process lead to speedy tracking
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Automation of process lead to speedy trackingand execution of Appraisal.
FEATURES OF CG’S APPRAISAL
Align the Business objectives, Individual Objectives & CG Values
FEATURES OF CG S APPRAISALSYSTEM
Values. Achieve Clarity on:
Roles (Principal Accountability)GoalsPerformance StandardPerformance Review Process.
Aspire towards a culture of “Performance Excellence”.
H l i E ti t F i iti ithi th i j b i th fi t tHelping Executives to Focus on priorities within their jobs is the first stepin managing performance at CG
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APPRAISEE’S OBJECTIVEAPPRAISEE S OBJECTIVEWhy I am Doing?What I am Doing?By When I am Doing?How am I doing ?
Getting feedback about:Getting feedback about:
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Strengths Opportunities for improvement
APPRAISEE’S OBJECTIVEAPPRAISEE S OBJECTIVE
Opportunity to express one’s point of view
Prepare an improvement /rectification plan
Check concern on individual growth anddevelopment & Have the achievementsacknowledged.
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acknowledged.
PURPOSE :GOAL SETTING PROCESS
Greater alignment of goals, performance measures and targets
Company and divisions
Company and support functions
Divisions and support functions
Cascading the same…from Company to Division/ function to departmentto individuals KPIs.
A system to clearly articulate performance expectations.
Raise the bar on company, division/ function and individualp y,performance.
Differentiate between performance and great performance
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Create ownership of the process
GOAL SETTING PROCESS
Individual
Top Management Team
VISIONGoal Setting
10
15
20
25ROCESales Growth
Goal Setting TeamSetting Process
0
5
Y1 Y2 Y3
Business Plan Goal settingFramework
58
GOAL SETTING PROCESS
SBU1
VISIONBusinessPlan
SBU 2
VISION PlanProcess1
Process2
59
GOAL SETTING PROCESS- CASCADING GOALS
Str.Business Unit Goal
BP Goals &
Process GoalsProd. Supply,
Sub function Goals
pp yMarketing
New Products
Production S l
Group Goals
SalesR&DHRDFIN Plant, Division
Key Performance
Key Influencers
,
Factory Manager,Production Manager,Divisional Manager,
Indicatorsg ,
Area Sales Manager
60
GOAL SETTING PROCESS -WHAT DOES GOAL SETTING TEAM DO?WHAT DOES GOAL SETTING TEAM DO?
Define goal setting principles (approach, stretch, goalselection criteria, cascade principles etc)
Review goals at each level to check conformance togoal setting principles
Reviewing goals for conformance to Business Plan
Vetting functional goals and individual performanceplans
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GOAL SETTING PROCESS
Goals for each SBU and function shall be set in the realm of Goal Setting Framework OK’d by the Top Management Team and cascaded from the Corporate Vision
Process DescriptionCorporate
• Goal Setting Principles to include approach to goal setting, principles on cascading, stretch, review of goals, relativity etc
Process Description
Corporate Vision
1 2 3
Operating Goals
6
Translate Translate LinkGoal Setting
Principles
Goals
relativity etc
• Goal Setting committee may consist of• A representative from the Top Management
• Head of HR
SBU Goal s
4SBU
Business Plan
5SBU
Operating Goals
7SBU
Translate Link
Link LinkAssign
• VP IT & Strategic Planning
• Goal setting to be done for SBU, Function, Sub‐function and Group Level Function
Operating
8Function Link
SBU Goal Setting
l
5
Link
• Individual KPAs are derived from goalsGoalsPrinciples
Goals at each level will be set, following principles on selection of goals, stretch, benchmarks etc.
62
GOAL SETTING PROCESS
ACTIVITY RESPONSIBILITY
Annual Planning Committee
Level 1, The Annual Planning
Committee
Annual Planning Committee
Annual Plan
Derive SBU level goals Level 2: SBU heads
Derive Functional goals Level 3: SBU, Function heads
SBU/Functional goals
Verify SBU goals, functional goals for conformance to annual plan, principles of goal setting,
verify lateral linkages for functional goals
Goal Setting Committee
g ,
verify lateral linkages for functional goals
A 63
GOAL SETTING PROCESS
ACTIVITY RESPONSIBILITY
A
Cascade functional goals down to team & individual goals Level 4: Function Heads and all Managers
Sub-functional & Group goals
Function Heads to verify Sub-function goals and Sub-function Heads to verify all individual goals for
conformance to annual plan, principles of goal setting, and lateral linkages
Functional, Sub-functional Heads
Goals tie up linearly to annual plan,or laterally across functionsNo
Yes
Rework Goals
Finalize Performance Plans Goal Setting Committee64
CG’s GOAL SETTING FRAMEWORK
1. Goal Setting framework - basis on which goals are set by all the Units in CG.
Various bases/references used are:
G l S tti F k M if t tiGoal Setting Framework Manifestations
Vision focused Goals commensurate with corporate vision
Historical basis Growth/Improvement over last year
Market linked eg. Industry growth + 4%
Value focused Goal setting to achieve objectives of acertain level of TSR/EVA/other valuecreation objectivescreation objectives
65
CG’s GOAL SETTING FRAMEWORK
2. Bases are interactive and not mutuallyexclusive Recommended that the goal settingexclusive - Recommended that the goal settingprocess takes into account all the abovefactors.factors.
3 Goal setting committee provides the framework3. Goal setting committee provides the frameworkat all levels of goal setting,i e strategic objectives improvement expectationsi.e. strategic objectives, improvement expectations,benchmark peer companies and value creationexpectations, if any
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1. Inputs 2. Process 3. Outputs 4. Outcomes 5. Goals
GOAL SETTING PROCESS- A Performance planning Framework
Skilled
Design of products/ services
P d ti fMotivated, Engaged Employees
Customer Requirements
Delighted Customers
Production of Products
Performanceof services
Products
ServicesA B C
Repeat Business
Requirements
Raw materials & Equipments
Customers’ Needs Met
Delivery/ Distribution of products/ Services
Services
Financial Results
A B DC Long Term
Survival
Capital Servicing Products
A B C DInput Measures
Process Measures
Output Measures
Outcome Measures
1. Employee Engagement
2. Supplier
1. Processes/ operational Measures
2 Safety/ Environmental
1. Product/ Service Quality Measures
2 Financial
1. Customer Satisfaction
67
Performance3. Financial Measures
2. Safety/ Environmental Measures
3. Financial Measures
2. Financial Performance Measures
PERFORMANCE TREE
RoS
a3% Exp
RoCE(PBIT)
a3% Exp.
a4 % Deprn.(+)a1 %
(X)
a5 % FC
(+)P % a2
(X)
OrganizationOrganizationCap Turns a6 % WC
( )gPerformance
gPerformance
Market‐Old/New
SALES Growth New Products
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Cascading Measures : IllustrationCorpora Key Financial Key Operational Outcomes Key Influencers
•Sales from unexplored markets
[Different countries,Different categoriesNew ProductsNew Services] •End Customer /Dealer
S i f i I d
te visionKey Financial
IndicatorsKey Operational Outcomes Key Influencers
GM Manufacturing
P&S Manager
Sales growth
ExistingMarket Share/Segments
]Satisfaction Index
•Revenue from New Products (Cutting edge products) •Target number of
vendors per item
•Brand Profitability
Profits
Costs
• ‘A’ class item procurement lead time
• ‘A’ class item inventory turns‘A’ class item cost / cost
Vision
•Supply chain cost s- Inventory Turns- Transportation costs/Sales- Direct Material cost/Cost of production
Di t l b t/C t f d ti
•Reduction in RM cost and Cycle time due to formulation efficiency
•Reduction in raw material costs (Vendor participation in Cont.
•Direct material cost/cost of production•RM, PM, FG inventory turnsT t ti
• ‘A’ class item cost / cost of production
R0CE
•Selling costs-media spend-promotion costs- MR-Salaries & overheads
- Direct labour cost/Cost of production- Direct expenses/Cost of production
improvement)•No. of items under VMI
•Transportation costs/Sales
•Value of RejectsI t f t k t•Debtors turnover ratio
Capacity utilization
Capital•Stockouts of RM, PM•Plant Uptime
•Instances of stockout of RM
•Value/volume supplied by self certified vendors69
IT &STRAT. PLANNING•Internal customer satisfaction inde
Corporate i i
Fin Measures
Functional measures
Sales growth
•Sales from unexplored markets
•End Customer /Dealer Satisfaction Index
satisfaction index- Information- IT Infrastructure•Cost & time overruns in ERP implementation
•Process Efficiencies
vision
Vi i
ExistingMarketshare
•Revenue from new products (Cutting edge products)
ENGG. SERVICES•Process cost reduction•Additional capacity created on account of improvement projects
•Time & Cost overruns of projectsProfits
Vision
HR•Ratio of HR operating expense to total operating expense
•Percent of workforce having desired competencies
Processes
projects•Brand Profitability
Costs
•Supply chain cost s
•Reduction in RM cost and Cycle time due to formulation efficiency
ROC
•Attrition rate/staffing rate•Reduction in manpower costs through redeployment of staff
•Training inputs/employee
FINANCE , CORPORATE AFFAIRS
•Supply chain cost s- Inventory Turns- Transportation costs/Sales- Direct Material cost/Cost of production- Direct labour cost/Cost of production- Direct expenses/Cost of production-Cost of reprocessing
E•Selling costs-media spend-promotion costs- salaries & overheads•Debtors turnover ratio
AFFAIRS•Timeliness of preparation of financial statements and MIS
•Cost of Funds-Procurement of funds against targets
- Returns from surplus fundsCash/fund flow managementCapital
Capacity utilization
- Cash/fund flow management•Successful negotiation mergers & acquisitions
•Instances of significant savings on account of interpretation of statutes
Capital
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GOAL SETTING PROCESS
The Goals need to be Understood as:
Objectives
Measures
Targets
71
GOAL SETTING PROCESS
Objectives
• Objectives are statements of intent to achieve specific business
results or critical outcomes
• For Example:
Reduce throughput timeImprove unit price realizationBenchmarking against the bestI k t hImprove market reachManage investor relationsMove to systems oriented product delivery parametersImprove plant and manpower productivityStandardi e IT sol tions and implement ERP
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Standardize IT solutions and implement ERP Increase operating efficiency for the department Achieve accelerated sales growth through exports
GOAL SETTING PROCESS
Measures
• Measures are specific quantifiable parameters by which to measure
th hi t f bj tithe achievement of an objective
• For Example:
Reduce throughput timeImprove unit price realizationBenchmarking against the bestImprove market reachImprove market reachManage investor relationsMove to systems oriented product delivery parametersImprove plant and manpower productivityStandardize IT solutions and implement ERP
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Standardize IT solutions and implement ERP Increase operating efficiency for the department Achieve accelerated sales growth through exports
GOAL SETTING PROCESS
Targets
• Measures are specific quantifiable parameters by which to measure
th hi t f bj tithe achievement of an objective
• For Example:
Reduce throughput timeImprove unit price realizationBenchmarking against the bestImprove market reachImprove market reachManage investor relationsMove to systems oriented product delivery parametersImprove plant and manpower productivityStandardize IT solutions and implement ERP
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Standardize IT solutions and implement ERP Increase operating efficiency for the department Achieve accelerated sales growth through exports
CHARACTERISTICS
• It is a step by step processIt is a step by step process• It examine the employee strengths and
weaknessesweaknesses• Scientific and objective study• Ongoing and continuous process• Secure information for making correct g
decisions on employees
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HOW PA CONTRIBUTE TO FIRM’S COMPETITIVE ADVANTAGESCOMPETITIVE ADVANTAGES
Improving performance
Making correctdecisionValues and behavior
Competitive advantage
Ensuring legalcompetence
Minimizing dissatisfactionAnd turnover
76
FORCED DISTRIBUTION METHODFORCED DISTRIBUTION METHOD
No. of employees
10% 20% 40% 20% 10%
employees
poor Belowaverage
average good Excellent
Force distribution curve77
LINKAGES OF PMS
Rewards & Recognition
s
Performance Management
System
Career Management
Job Rotation System
Based on Balanced Scorecard Approach
gRotation
ApproachDevelopment
Plans
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Focus of Performance MManagement
Progress and successtoward goal achievementtoward goal achievement
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Assessing NeedsAssessing Needs
• Your goals
Th l ’ l• The employee’s goals
• The department’s goalsThe department s goals
• The organization’s goals
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ConsiderationsConsiderations• Focus on • Knowledge
performance issues• Clear expectations
g• Ongoing • Detailed
• Improvement • Productivity
• Monitored• Consistent
• Objectivity• Accuracy
P f
• Fair• Timely
• Performance, not person
• Motivational
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Why Do Performance M t?Management?
• Communicate goals, mission, values, g , , ,purpose
• Improve working relationships• Improve management• Identify and communicate strengths and
f i tareas for improvement• Provide feedback• Develop• Develop• Monitor• Support
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• Support
Reflecting on Performance Di iDiscussions
Think about your last review:Think about your last review:
Wh t th ht t i d?- What thoughts come to mind?- What went right, what went wrong?
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What Do Employees Want?What Do Employees Want?• Clear expectationsClear expectations• Positive/constructive
feedback on regular • Accurate job
descriptionsgbasis
• Understand • Be treated fairly and
consistentlyevaluation criteria
• Involvement in goal
• Sharing of info and resourcesJ b/ i h tsetting • Job/career enrichment opportunities
84
Elements and OutcomesElements and OutcomesElements OutcomesElements• Listening
Outcomes• Better performance
• Coaching • Improved morale, trust and loyalty
• Feedback
trust, and loyalty• Commitment
85
Listening SkillsListening Skills
• Active listeningActive listening• Expression
V b l/ b l• Verbal/non-verbal cues• Distractions• Retention
86
Active ListeningActive Listening
• ReflectionReflection• Reiteration/Paraphrase
B d L• Body Language• Elaboration• Acknowledgement
87
Coaching SkillsCoaching Skills
• Observation • SolutionsObservation• Counsel
C diti
Solutions • Agreement
F ll th h• Condition• Criteria
• Follow through• Adjustment
• Response • Follow-up
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FeedbackFeedback
• Purpose • AccuratePurpose• Setting
Ti i
Accurate• Balanced
R l t• Timing• Forward focused
• Relevant • Comprehension
• Two-way• Responsive
• Agreement• Follow-upResponsive Follow up
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Giving Feedback
• Professional• Purpose
• Start with positive• “I” vs “you”Purpose
• Listening vs. talkingP f t
I vs. you statements
• Factual• Performance, not personality
• Factual• Strategize
• Support • Privacy
• Goal setting focus• Resolution
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y
Receiving FeedbackReceiving Feedback
• Have an open mindHave an open mind• Avoid defensiveness
Li t f i• Listen for meaning• Seek out resolution• Give guidance• Utilize effectivelyUtilize effectively
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Communicating EffectivelyCommunicating Effectively
• Preparation Preparation • Professionalism
M t hi b d l t• Matching body language to message• Tone awareness• Scripting• FocusingFocusing• Responsiveness
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Problem SolvingProblem Solving
• DefineDefine• Brainstorm alternatives
Id tif• Identify causes• Collect/analyze info• Consensus• Action planAction plan
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ConflictConflictDestructive Conflict
• Adversarial iti
• Issues/problems not
Destructive Conflict
positions• Right vs. wrong
N li t i
defined• Breakdown in
• No listening• No alternatives
offered
communication• Win/lose, lose/lose
offered• Unyielding
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ConflictConflictConstructive Conflict
• Focus on issueA k l d
• Allow reflectionR b k
Constructive Conflict
• Acknowledge • Allow for venting
• Repeat back• Brainstorm
lt ti• Separate feelings from issues
alternatives• Obtain agreement
/• Active listening • Win/win
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COACHINGCOACHING
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• “Coaching is a solution–focused, results–orientated systematic process in which the Coach facilitates the enhancement of performance, self–directed learning and personal growth of
other indi id als”other individuals”
Coaching is• Coaching is…
– A means for learning and development.
About the Coach guiding the coachee towards his or her goals– About the Coach guiding the coachee towards his or her goals.
– About the mutual sharing of experiences and opinions between
the coach and the coachee to create agreed-upon outcomesthe coach and the coachee to create agreed-upon outcomes.
– About the Coach inspiring and supporting the coachee.
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Coaching is NOT…
– An opportunity for the coach to correct the
coachee’s behaviors or actions.coachee s behaviors or actions.
– About the coach directing the coachee to meet
goals.
– About the coach being the expert or supervisorAbout the coach being the expert or supervisor
with all the answers.
– About the coach trying to address personal
issues of the coachee.
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• Coaching is about individual change and continuous improvement.
I di id l h i l th h• Individual change involves three phases:
Phase One: Awareness and AcceptanceAwareness and Acceptance
A clear understanding and assessment of current behaviors that lead to effective leadership
Phase Two:Action and Application
A clear personalised plan to
Phase Three:Support, Maintain and
Measure A clear personalised plan to address specific behaviour
gaps with measures of success
A support framework that comprises key stakeholders that will help bring about change and
monitor progress
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In the Coaching process, the Coach acts as a Personal Facilitator wherein s/he takes shared ownership of
the key behavioral and performance outcomes of the coachee.
The Coach provides a high level of supportive behavior which includes frequent (monthly) contact,
collaborative idea generation, ongoing feedback on progress, suggestions for action. The Coach indulges
in a low level of directive behavior. This means that the coachee must take primary responsibility of
thinking through options, arriving at plans, executing plans and reflecting on behaviors.
2Coach as
3Coach as
Trainer/Teacher
Psycho‐educational. Explain and teach models and methods for change.
Personal Facilitator
Shared ownership. Collaborative brainstorming. Creation of personal reflective space.
4Coach as Mentor
Infrequent contact.e Be
haviou
r
1Coach as Consultant
Frequent contact.qMinimal direction.
High degree of self‐directed learning from coachee
Level of Sup
portive q
Coach leads and directs process, may set agenda.
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Level of Directive Behaviour
Adapted from : Chapman, T., Best, B., & Van Casteren, P. (2003)
An Effective CoachWhile there are several attributes and definitions to define a good coach, an effective coach must do the following:
• Display a genuine interest in the coachee’s development• Build a good rapport with the coachee • Establish trust• Inspire Energize and Motivate• Inspire, Energize and Motivate• Help the coachee ‘find the answer’• Maintain focus on results
Maintain focus on resultsThe coach must practice ‘tough love’ with the coachee The coach must ensure thatthe coachee. The coach must ensure that the coachee never loses sight of his/her goals.
Managing
Focus on:
Telling
Di ti
Coaching
Focus on:
Exploring
F ilit tiManager as a CoachFor a Manager to make a transition from Managing people to Coaching people, it is important that s/he traverses the
Directing
Authority
Immediate needs
Typically want one
Facilitating
Partnership
Long–termdevelopment
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is important that s/he traverses the following continuum:
Typically want onespecific outcome Open to many possible
outcomes
There are five key steps in the Coaching process. Each step is detailed further:
SET AGENDA
1 2
ENROLL STAKEHOLDERS
MONITOR PROGRESS
COACHINGCOACHING
35
COACHINGCOACHING
GET FEEDFORWARD SUGGESTIONS
REVIEW ACTION
PLAN4
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• Session structure is a crucial factor in the success of the coaching relationship as it provides a t t d f t i t ti b t th C h d th C h
Structuring a Coaching Session - GROW modelstructure and focus to every interaction between the Coach and the Coachee.
• The GROW model, devised by Sir John Whitmore, is a recommended coaching model as it offers a way of structuring coaching sessions to facilitate a balanced discussion:
– GOAL - Defining what the coachee wants to achieve REALITY E l i th t it ti l t hi t d f t t d– REALITY - Exploring the current situation, relevant history and future trends
– OPTIONS - Coming up with new ideas for reaching the goal – WRAP-UP - Deciding on a concrete plan of action
• In practice, since most coaching is driven by questions, this means that different types of question areIn practice, since most coaching is driven by questions, this means that different types of question are used at each stage:
– GOAL - Questions to define the goal as clearly as possible and also to evoke an emotional response
• What do you want to achieve? What will be different when you achieve it? What's important y y pabout this for you?
– REALITY - Questions to elicit specific details of the situation and context• What is happening now? Who is involved? What is their outcome? What is likely to happen
in future?– OPTIONS - Open-ended questions to facilitate creative thinking
• What could you do? What ideas can you bring in from past successes? What haven't you tried yet?
– WRAP-UP - Focused questions to get an agreement to specific actions and criteria for success
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• What will you do? When will you do it? Who do you need to involve? When should you see results?
The Coaching Process• Given the highly contextual nature of coaching, the contracting process is highly critical for
success. Here’s what the process looks like.
Agrees On Takes Responsibility For
• Coachee is valued as a high performer in my team • Setting expectations of ‘breakthrough
f ’ ith th hManager of Coachee
y ea
• I am keen to help the coachee achieve a ‘significant breakthrough’ in performance as a leader
performance’ with the coachee
• Working with the coach to provide feedback and support to the coachee
• I am keen to achieve a ‘significant
Coachee
I am keen to achieve a significant breakthrough’ in my performance as a leader
• I am open to accepting and working on feedback from my peers, subordinates,
• Achieving the ‘significant breakthrough’ in performance
• Working on own behaviors and actions as decided during the processy
manager and coachg
Stakeholders
• I am keen to help the coachee achieve a ‘significant breakthrough’ in performance
• I will be honest and helpful in my feedback
Providing feedback and suggestions to the coacheebe o es a d e p u y eedbac
and suggestions
C h
• I am committed to helping the coacheeachieve a ‘significant breakthrough’ in performance • Setting up, facilitating and managing all
conversations during the process
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Coach• I will treat all conversations during the
process as strictly confidential with the individual involved
conversations during the process
• Reporting progress to process owner
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COUNSELINGCOUNSELING
105
COUNSELINGCOUNSELING
Subordinate-centered communication thatoutlines actions necessary for subordinatesto achieve individual and organizationalgoals.
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Counseling Cycle Continuous Process
ARRIVE AT UNIT
OER/ NCOEREXIT
INTERVIEW
- Reception and Integration
UNIT
PATHWAY TOSUCCESS
Initial OER /NCOER Counseling (30
- Sponsorship
Quarterly CounselingNCOER ChecklistPersonal Issues
SUCCESS Counseling (30 days)
Quarterly CounselingNCOER Checklist
Periodic Reviewof OER Support
Form (R t / SR R t )
Event: Non-select for school /
promotion
(Rater/ SR Rater)Quarterly Counseling
NCOER Checklist
MIDPOINT6 MONTHS
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THE COUNSELING PROGRAM
– A company level leader’s responsibility
– A dynamic system of skilled leaders helping subordinates to develophelping subordinates to develop
Takes time energy and effort to build and– Takes time, energy, and effort to build and sustain
– An investment in leader development and the unitthe unit
108
THE EFFECTS OF COUNSELING ON THE ORGANIZATIONTHE ORGANIZATION
– Develops subordinatesDevelops subordinates
– Strengthens the chain of command
– Provides opportunity for leader growth
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A COUNSELING PROGRAM SHOULD:
Strengthen the Chain of CommandStrengthen the Chain of CommandClarify policies and proceduresReinforce standardsReinforce standardsPrevent rumorsPraise successPraise successAvoid surprisesDevelop responsible subordinatesDevelop responsible subordinates
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COUNSELING AND LEADER GROWTH
Through counseling, leaders:
- Learn about their own effectiveness- Learn more about “leadership”p- Gain an appreciation for the diversity of those they
lead
111
SUBORDINATE-CENTERED (TWO-WAY) COMMUNICATION
Subordinates assume an active role in theSubordinates assume an active role in thecounseling sessions and maintain responsibilityfor their actions. The following skills assistleaders in subordinate-centered counseling:
– Active listening– Responding– Questioning
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THE LEADER AS A COUNSELOR
1 Leaders have a responsibility to1. Leaders have a responsibility todevelop their subordinates.
2. During counseling, the leader actsprimarily as a helper, not a judge.
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THE LEADER AS A COUNSELOR (CON’T)
Th f ll i liti h l th l d tThe following qualities help the leader to assume an effective role during a counseling session:counseling session:
Respect for subordinates– Respect for subordinates– Self and cultural awareness
Credibility– Credibility– Empathy
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THE REASON FOR COUNSELING
– To help subordinates develop in order to achieveorganizational goals and objectives.organizational goals and objectives.
– This overriding theme of “subordinateThis overriding theme of subordinatedevelopment” includes helping subordinates toimprove (or maintain) performance, solve problems,or attain goals.
C– Counseling requirements are also integrated into theevaluation system.
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TWO CATEGORIES OF COUNSELING
Event-Oriented Counseling
Performance Counseling
Professional Growth Counseling
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Event-Oriented CounselingCounseling centers around a specific event
or situation and is personal in natureExamples include:
Reception and Integrationp gPromotion Counseling
Corrective Trainingg
Referrals
SeparationSeparation
Crisis
Positive PerformancePositive Performance
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PERFORMANCE COUNSELING
IncludesPerformance improvement counseling;outlines values, attributes, skills, and actions;establishes performance indicators for the leadershipcompetencies.competencies.
PROFESSIONAL GROWTH COUNSELINGPROFESSIONAL GROWTH COUNSELING
Includes Pathway to Success and Career counselingIncludes Pathway to Success and Career counseling
Counseling is future oriented based on anestablished time lineestablished time line
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PREPARATION FOR COUNSELINGO O COU S G
1 Select a suitable place1. Select a suitable place2. Schedule the time3. Notify the subordinate well in advancey4. Organize the information 5. Outline the components of the counseling
session6. Plan a counseling strategy7 Establish the right atmosphere7. Establish the right atmosphere
Why should a leader prepare an outline?What is a counseling strategy?
119
THE STAGES OF A COUNSELING SESSION
1. OPEN THE SESSION
Identify the purpose and establish a constructive and subordinate-centered tone
2. DISCUSS THE ISSUE
H l th b di t d l d t di f th i d i bl
centered tone.
Help the subordinate develop an understanding of the issues and viablegoals to effectively deal with them.
3. DEVELOP A PLAN
Develop an action plan with subordinate. The plan that evolves fromthe counseling process must be action-focused and facilitate bothleader and subordinate attention toward resolving the identifieddevelopmental needs.
4. CLOSE THE SESSION
Discuss the implementation, including the leader’s role in supporting thes bordinate’s effort Gain the s bordinate’s commitment to the plansubordinate’s effort. Gain the subordinate’s commitment to the plan.Ensure plan is specific enough to drive behaviors needed to affect thedevelopmental needs
120
DEVELOP A PLAN OF ACTION
1. Actions should facilitate the attainment ofgoals.
2. Plan may entail contacting a referral agency.3. Actions should be specific enough to drive
behavior.
121
CLOSE THE SESSION
- Summarize the counseling session.- Discuss implementation of the plan; check for
understanding and acceptance.- Identify leader’s responsibilities- Identify leader s responsibilities.
What is follow-up and why is it necessary?p y yDescribe the assessment of the plan of action.Why is it
i t l t f th li ?an integral part of the counseling process?
122
APPROACHES – BLUE COLLAR
123
APPROACHES – BLUE COLLAR
SkillSkill
Productivity against standard norms
124
MEASURING PERFORMANCE
Individual Based : Grade Seniority linked with skillIndividual Based : Grade Seniority linked with skill
and Attendance
Team Based : Re-work, Rejections, Throughput
Combination : Of both the above factors.
Payments links to the above
125
ROLE OF IT IN PMS
126
ROLE OF IT - PMS
Integrated across the Company.
Uniform approaches and practices.
Timeliness : Initiation, Completion and Decision. , p
On-time tracking of Process.
Speed of Execution.
127
ROLE OF IT - PMS
System should provide for:System should provide for:
1. Development, reporting, and interpretation of key measures and indicators related to the quality,
f ftimeliness, accuracy, and usefulness of products and services.
2. Identification of significant performance trends to find successes and address deficiencies.
3. Useful and meaningful information and feedback for forecasters, managers, partners, and
t
128
customers.
A FINAL THOUGHT
The conventional definition ofThe conventional definition ofmanagement is getting work doneth h l b t l tthrough people, but real managementis developing people through work.
Agha Hasan Abedi- Agha Hasan Abedi
129
PERFORMANCE CRITERIA FOR EXECUTIVESEXECUTIVES
• For top managersFor top managers– Return on capital employed
Contribution to community development– Contribution to community development– Degree of upward communication from
middle-level executivesmiddle-level executives– Degree of growth and expansion of
enterpriseenterprise.
130
FOR MIDDLE LEVEL MANAGERSFOR MIDDLE LEVEL MANAGERS
• Departmental performanceDepartmental performance• Coordination among employees• Degree of upward communication fromDegree of upward communication from
supervisors• Degree of clarity about corporate goals andDegree of clarity about corporate goals and
policies
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FOR SUPERVISORSFOR SUPERVISORS
• Quality and quantity of output in a given period Q y q y p g p• Labor cost per unit of output in a given period• Material cost per unit in a given periodp g p• Rate of absenteeism and turnover of employees• No of accidents in a given period
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