Chapter 8 - Performance Management and Employee Development

Learning Objectives

8.1    Describe the importance and benefits of including a development plan as part of the performance management system.

8.2    Describe the various short-term and long-term objectives of a development plan.

8.3    Design a high quality development plan.
 
8.4    Learn about the key activities that will help the successful implementation of a development plan.

8.5    Understand the role that the direct supervisor plays in the design and implementation of a development plan.

8.6    Implement a 360-degree feedback system with the goal of providing feedback and improving performance.

8.7    Implement an on-line 360-degree feedback system.

8.8    Understand the advantages, as well as risks, of implementing a 360-degree feedback system.

8.9    Evaluate the quality of a 360-degree feedback system.

Chapter Outline

Performance Management and Employee Development

Overview
1. Personal Developmental Plans
2. Direct Supervisor’s Role
3. 360-degree Feedback Systems

1. Personal Developmental Plans

Stakeholders in the Development Process
o Employees
 Help plan their own development
 Improve their own performance
o Managers
 Help guide the process of development
 Support success of process

Personal Developmental Plans 
o Specify actions necessary to improve performance
o Highlight employee’s
 Strengths
 Areas in need of development

Personal Developmental Plans Answer:
o How can I continuously learn and grow in the next year?
o How can I do better in the future?
o How can I avoid performance problems of the past?

Overview of Personal Developmental Plans Section
o Developmental Plan Objectives
o Content of Developmental Plan
o Developmental Activities

•   Developmental Plan Objectives
o Overall Developmental Plan Objectives
 Encourage:
–   Continuous learning
–   Performance improvement
–   Personal growth
o Specific Developmental Plan Objectives
 Improve performance in current job
 Sustain performance in current job
 Prepare employees for advancement
 Enrich employee’s work experience

 How does the Texas A&M University in the USA use its developmental plan?

• Content of Developmental Plan
o Development objectives
 New skills or knowledge
 Timeline
o How the new skills or knowledge will be acquired
 Resources
 Strategies
o Based on needs of organization and employee
o Chosen by employee and direct supervisor
o Taking into account:
 Employee’s learning preferences
 Development objective in question
 Organization’s available resources

 Does Texas A&M University include all of the content described on these two slides in their Professional Developmental Plan?  How could it be improved?

• Developmental Activities “on the job”
o On-the-job-training
o Mentoring
o Job rotation
o Temporary assignments
• Developmental Activities in addition to ”on the job”
o Courses
o Self-guided reading
o Getting a degree
o Attending a conference
o Membership or leadership role in professional or trade organization

 Have you worked for an employer who provided any of these developmental activities?
 Which of these “on the job” and other developmental activities have you participated in?
 Which would you like to participate in? 
 Which, if any, of these developmental activities are you willing to pay for yourself?

2. Direct Supervisor’s Role

In Developmental Plan Meeting
o Explain what is necessary for desired performance
 Steps to take
 Probability of success
o Refer employee to appropriate developmental activities
 Mentors
 Reading materials
 Courses, etc.
o Review and make suggestions re: development objectives
 Assure that goals are:
• achievable
• specific
• doable

Ongoing
o Check on employee’s progress
o Provide motivational reinforcement

 How are supervisors motivated to perform this role at KLA-Tencor Corporation?
 What else is done at this company to encourage success of the employee development program?

3. 360-degree Feedback Systems
Definition:
o Tools to help employees improve performance by using:
• Performance information
• Gathered from many sources
-  Superiors
-  Peers
-  Customers
-  Subordinates
-  The employee
o Anonymous feedback
o Most useful when used
 For development
 NOT for administrative purposes
o Internet used for collecting data

 Let’s consider the system examples offered by CheckPoint in the next few slides.  How is such information useful to the organization, the supervisor, the employee?

Necessary organizational norms include:
o Cooperation 
o Openness and trust 
o Input and participation valued 
o Fairness

Overview of Discussion re: 360-degree Feedback Systems
o Advantages of 360-degree Feedback Systems
o Risks of 360-degree Feedback Systems
o Characteristics of a Good 360-degree Feedback System

• Advantages of 360-degree Feedback Systems
 Decreased possibility of biases
 Increased awareness of expectations
 Increased commitment to improve
 Improved self-perception of performance
 Improved performance
 Reduction of  “undiscussables”
 Increased employee control of their own careers

 What benefits were realized at Sonoco Products when a 360-degree feedback system was implemented?

• Risks of 360-degree Feedback Systems
o Unconstructive negative feedback hurts.
o Are individuals comfortable with the system? 
 User acceptance is crucial.
-  If few raters, anonymity is compromised
-  Raters may become overloaded
-  Stock values may drop

 How is this finding a reminder to use “best practices” in implementing such a system?

• Characteristics of a Good 360-degree Feedback System
o Anonymity
o Observation of employee performance
o Avoidance of survey fatigue
o Raters are trained
o Used for developmental purposes only
o Emphasis on behaviors
o Raters go beyond ratings
o Feedback interpretation
o Follow-up

 How difficult is it to develop a good 360-degree feedback system? 
 Where could you go for help? (e.g., Internet vendors often provide samples, examples, etc.)

Performance Management and Employee Development: Summary
1. Personal Developmental Plans
2. Direct Supervisor’s Role
3. 360-degree Feedback Systems

Worked Solutions for End-of-Chapter Cases

Answers for Case Study 8.1 Development Plan Form at Old Dominion University

There are several positive features of the Old Dominion University employee development form.  The form requests not only the goals that the employee will work toward, but also what the supervisor and also the employee himself/herself must do to reach the goals.  This is positive in that it emphasizes that development is a joint effort between the employee and the supervisor.  However, the form could be improved if it asked for target dates for the goal to be reached, as well as a description of how to assess whether or not the goal has been completed.  The quality of this form also hinges on how well managers are trained at setting goals, because it does not offer guidance on how to set goals that are practical, specific, time-oriented, linked to a standard, and developed jointly between the supervisor and the employee.
(Suggested Points: 10, [8.3])

Answers for Case Study 8.2 Evaluation of a 360-Degree Feedback System Demo

The survey has several positive features.  This assessment focuses on observation of employee performance and behaviors, and it is a short survey to minimize survey fatigue.  However, rater training should accompany this tool to ensure that raters are objective in their ratings and that they provide useful, constructive comments to the ratees.  It will be up to the company who uses this feedback whether or not to use it strictly for developmental purposes and to keep the raters’ identities anonymous, although raters will need to be trained on how to provide comments so that their identities will remain confidential.  The results offered by this site are positive.  They help explain the goals of 360-feedback, divert negative reactions to feedback, and provide next steps that the participant should take, including constructing a developmental plan.

The negatives of this survey are that more follow up is needed for individuals to put this feedback into use.  The site should suggest follow-up coaching sessions.  Furthermore, the need for rater training with this tool is not mentioned.  The rating scale is 9 points and most raters may have a hard time distinguishing between all levels of performance.  Overall, this is a good tool and could be useful to organizations.
(Suggested Points: 10, [8.9])

Answers for Case Study 8.3 Implementation of 360-degree Feedback System at Ridge Intellectual

There are several steps that Ridge could have taken to successfully implement the 360-degree feedback system.  Initially, the president of the company should have made sure that multirater feedback was needed in the company.  If it was needed, she should have held meetings with the employees in her company to describe the benefits of 360-degree feedback and gain employee buy-in of the system.  Furthermore, formal rater training should have been mandatory for all managers, to ensure that performance was being assessed accurately and that the 360-degree feedback form was being used correctly.  The survey should have also only been used for developmental purposes, and not be linked to employee bonuses.  Finally, after the surveys were taken, the participants should have had a coach or HR representative explain their feedback to them and help them design an employee development plan.  Including these benefits of a good system would have ensured successful implementation of the 360 feedback system. 
(Suggested Points: 10, .5[8.8], .5[8.9])
Additional Cases and Worked-Solutions
Case Study: CRB, Inc.

Mary Brown, one of the owners of Car Restoration Business, Inc., has been looking into development plans as a possible way of increasing productivity and morale in the shop.  She adapted a form from some she has seen recently and asks you for feedback on what she and Al have developed as a plan for their mechanic, Clark J. Tyler, based on comments that Clark has made at various times and their own sense of what he needs. 

1. How would you improve and/or change the form (which follows) and its contents?
(Suggested points: 10, .3[8.3], .3[8.4], .4[8.5])

2. Since there are only six employees in the shop, how would you adapt the form to meet the needs of this small business?
(Suggested points: 10, [8.5])

CRB, Inc. Development Plan 
Update date:  June 28, 2005
Name:  Clark J. Tyler
Job Title/Job Code: Mechanic
Department: Engine Shop
 
Dev. Options
OJT (On the job)
Classes
Conferences
Online
Self Study
Job Rotation
Videos
Books
Temp. Assignment
Mentorship
Other (specify)
    
Description
Type of Development
When
How long
Completed hours (this Qtr.)
Comments - Approx. Cost - Other
Objectives/
Evaluation

Current Qtr.
 
 
 
 
 
 

Next. Qtr.
 
 
 
 
 
 

Current +2
 
 
 
 
 
 

Current +3
 
 
 
 
 
 

Primary Reviewer:  Bob Jared
Education:  High school graduate
Prior Training: Certifications in auto mechanics, body work, engine rebuilding
Job History: 10 years experience in various mechanical and auto body jobs
Career Goals:
     Next 1 year 
     Next 2 years
     Next 3 years
     Next 5 years  Foreman or own my own shop where I still do some of the more complex work for myself

Answers:

1. List only the available or possible development options.  Adapt the options to those that fit the interest and educational levels of the employees. For example, if the shop has a library and videos available for employees to use, these should be listed.  It is unlikely that employees in an auto restoration shop will be going to many conferences; however, one who wants to own his own shop may find a small business conference that would meet his needs. 

Provide room for the employee to participate in his own development plan, since it needs to be developed by both the employee and the supervisor, taking into account the employee’s learning preferences, the development objective, and the available resources.  Note:  CRB, Inc. may not be able to finance much in the way of outside learning; however, the company could provide some paid time off and may be able to help the employee to negotiate a better rate for attending some classes, based on various industry memberships.

Revise the form to assist the supervisor in helping the employee to develop the plan and to monitor both implementation and effectiveness of the plan.

2. I would make the form more general and eliminate some of the details, such as career goals each year and an expectation of completed hours. Since the direct supervisor is primarily responsible for helping the employee to implement the development plan, the form should help the supervisor do the following:

1. Describe the steps that would be required for an employee to achieve the desired performance level.
2. Refer employees to appropriate development activities that will help to achieve the specific goals.
3. Review and make suggestions about the specific development objectives.
4. Check on progress of achieving goals.
5. Provide reinforcement for goals achieved.

In addition, as mentioned previously, it is necessary for the form to allow input from the employee.

The following form is one example of how the form could be adapted to allow the supervisors to create a realistic development plan.
 
(Sample revised) CRB, Inc. Development Plan 
Date: 
Name: 
Job Title/Job Code:
Department:
Primary Reviewer:
Education: 
Prior Training:
Job History:
Career Goals:

What employee will do to improve performance and work toward career goals When For how long Approx. Cost  & who will provide Comments How will we know if this has been done? And how effective is it?
         
         
         
         
         
Possible options could include: OJT (On the job training); Classes; Online and other kinds of Self Study;
Job Rotation; Videos; Books; a temporary assignment in another part of the shop; Mentorship by one of the other employees; Other (specify)
6 month review due on:
Supervisor comments:
Employee comments:
Annual review due on:
Supervisor comments:
Employee comments:

Case Study: Customer Service Supervisor for Hoffman Airlines

Harry Patterson is the customer service supervisor for Hoffman Airlines at the Kiowa Airport in Colorado.  He supervises ten employees who are responsible for helping customers with lost baggage, dealing with delayed or missed flights, finding hotel rooms for stranded passengers, etc.  Hoffman Airlines has been considering implementing a 360-degree feedback program for the employees and has hired you to help them develop such a program.  Management has decided to test the concept by using it as a developmental tool for Harry Patterson.

1. What might be the benefits of implementing 360-degree feedback as a developmental tool for this supervisor?
(Suggested points: 5, [8.8)

2. What might be the dangers of implementing 360-degree feedback as a developmental tool for this supervisor?
(Suggested points: 5, [8.8])

3. Using the information at http://online.onetcenter.org/link/summary/43-1011.01, complete the following grid (Note: table is designed to expand to fit contents):
a. What performance dimensions would you define?
b. Who should be the sources for the feedback?
c. What dimensions would be measured by each source? 

a. Performance Dimensions b. Source:

 b. Source:

 b. Source:

 b. Source:

 b. Source:

     
     
     
     
     
     
     
     
     
     
(Suggested points: 10, [8.6])

Answers:
1. Harry might have a better understanding of what others expect of his performance.  If he gets feedback from a variety of sources, he may be more likely to trust its accuracy (rather than assuming some kind of bias on the part of a supervisor, for example) and he might make more of a commitment to improve his performance.  In addition, when Harry understands how his performance affects others (for example, causing someone else more work), he will be more likely to change it for the better.  When he understands how his own perception of his performance relates to others’ perceptions, he will gradually improve his understanding of his own performance.

It will be easier for others to give both positive and negative feedback when it is anonymous and comes from a variety of sources.  Given the above information, Harry will have more information with which to take control of his own career, understanding both his strengths and weaknesses.  His performance should improve.

2. Harry is unlikely to make positive changes unless he believes that he will be rated honestly and treated fairly.

Depending on the number of raters, Harry may be able to figure out who has provided what ratings.  If the raters are concerned that they may be identified (especially Harry’s direct subordinates), it is possible that the feedback will be distorted to protect the raters.  On the other hand, if subordinates and others feel comfortable that they won’t be identified and there is inadequate training in giving constructive feedback – or some sort of malicious intent – non-constructive and negative feedback can be very hurtful. Negative feedback can be hurtful, especially if it is not offered in a constructive way. 

If, after the concept testing has been completed, management decides to implement a 360-degree feedback system for everyone, some raters may become overloaded with forms to fill out because they have to provide feedback for a large number of people.

3. Using the information at http://online.onetcenter.org/link/summary/43-1011.01, complete the following grid:
a. What performance dimensions would you define?
b. Who should be the sources for the feedback?
c. What dimensions would be measured by each source?  (marked in grid with xxx)

a. Performance Dimensions (Note:  these dimensions were taken from the Work Activities section of the job description at ONET; another acceptable source for performance dimensions would be under Tasks) b. Source:

Self b. Source:

Peers b. Source:

Employees b. Source:

Customers b. Source:

Manager
Staffing Organizational Units — Recruiting, interviewing, selecting, hiring, and promoting employees in an organization xxx xxx xxx  xxx
Guiding, Directing, and Motivating Subordinates — Providing guidance and direction to subordinates, including setting performance standards and monitoring performance xxx xxx xxx  xxx
Communicating with Supervisors, Peers, or Subordinates — Providing information to supervisors, co-workers, and subordinates by telephone, in written form, e-mail, or in person xxx xxx xxx  xxx
Establishing and Maintaining Interpersonal Relationships — Developing constructive and cooperative working relationships with others, and maintaining them over time xxx xxx xxx  xxx
Scheduling Work and Activities — Scheduling events, programs, and activities, as well as the work of others xxx xxx xxx  xxx
Documenting/Record-ing Information — Entering, transcribing, recording, storing, or maintaining information in written or electronic/magnetic form xxx xxx xxx xxx xxx
Resolving Conflicts and Negotiating with Others — Handling complaints, settling disputes, and resolving grievances and conflicts, or otherwise negotiating with others xxx xxx xxx xxx xxx
Getting Information — Observing, receiving, and otherwise obtaining information from all relevant sources xxx xxx xxx xxx xxx
Coordinating the Work and Activities of Others — Getting members of a group to work together to accomplish tasks xxx xxx xxx  xxx
Coaching and Developing Others — Identifying the developmental needs of others and coaching, mentoring, or otherwise helping others to improve their knowledge or skills xxx xxx xxx  xxx

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