Enhancing Success for Performance Management in the Public Sector

Copyright © 2024 by Emmanuel S. E. Leigh.

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CONTENTS

Preface

Introduction

Chapter 1   Performance Management Defined

Chapter 2   Human Resource Management and the Public Sector

Chapter 3   Performance Appraisal and Management

Chapter 4   Planning Performance

Chapter 5   Monitoring Performance

Chapter 6   Evaluating Performance

Chapter 7   Reward Management and Performance

Chapter 8   Insights on Human Resource Management

Chapter 9   The Personnel Manager

Appendices

Bibliography

PREFACE

Performance management in the public sector is the process by which government corporations and organizations review and evaluate their achievements in order to make future decisions. Using performance measurement tools, such as Key Performance Indicators (KPIs) and relying heavily on data, performance management serves as the basis for measuring and improving processes and services.

It is often challenging due to the large number of stakeholders, such as schools and hospitals, police forces and local transport providers. In addition, there are many less visible organizations, such as regulatory bodies. These challenges also make adequate performance management even more essential and complicating.

The objectives of public sector organizations are very different from those of the private sector. As Milton Friedman puts it, the sole purpose of the private sector is to maximize profits for shareholders. One of the key features in performance management is the use of performance measures and targets to evaluate all aspects of the performance of an organization’s activities.

In the public sector, performance management can be used to publicize strategy, manage transformation, and improve accountability. Trevor Langan has written in BRONNER, that the best practices for performance management strategies across states and local governments are, focus on outcome, not outputs, use of data visualization to communicate performance, use of metrics with a time series and communicate internally and externally. Also enhancing performance management in the public sector are leadership commitment, staff participation in the system and flexibility in exercising authority.

Notably, countries have undertaken reforms aimed at making public sector organizations become more accountable for performance. It is on this context that this book is written. Namely, to improve the overall efficiency and effectiveness of public expenditure, reduce overall levels of expenditure, improve accountability and transparency of the public sector and enhance the responsiveness of public sector organizations to the needs of citizens.

The book is theoretical, and cites empirical studies, to provide improvements in performance, accountability, transparency, quality of service in the public sector. The contents can be used to enhance performance management in the public sector, which will in some areas collaborate with the private sector.

INTRODUCTION

One of the cornerstones of a successful organization is the performance management system. A system that recognizes and rewards employees based on performance and contributions to the mission of the organization. Understanding how performance and contributions link to achieving organizational goals and critical mission is important. When performance expectations are aligned with organizational goals and mission, the value of the employee to the organization and mission is enhanced. As the organization implements the performance management system, it creates an opportunity to further growth and efficiency.

Performance Management and Appraisal Process improve employee job performance with best practices guidelines, education and evaluations. Proper employee management and performance appraisal are essential components for an effective public sector. It is an ongoing communication process, undertaken in partnership, between an employee and the supervisor, which involves establishing and documenting clear expectations and understanding about:

• The essential job functions the employee is expected to do.

• How the employee’s job contributes to the goals of the organization?

• What doing the job well means in concrete terms?

• How employee and supervisor will work together to sustain, improve, or build on existing employee performance?

• How job performance will be measured?

• Identifying barriers to performance and removing them.

In making these points effective, a comprehensive system with guidelines, methods, strategies and tools must be used by supervisors to utilize in performing these functions.

What is Performance Appraisal?

It is the obligation to employees to let them know how they are doing. The process by which a supervisor (1) examines and evaluates an employee’s work behavior by comparing it with preset standards, (2) documents the results of the comparison, and (3) uses the results to provide feedback to the employee to show where improvements are needed and why they are needed.

Performance appraisals are employed to determine who needs what training, and who will be promoted, demoted, retained, or dismissed.

Why are Appraisals important?

Employee Performance Appraisals can increase productivity of the people managed. It benefits both employee and employer. It is a time to provide feedback, recognize quality performance and set expectations for future job performance. An organization should conduct evaluations on employees on a regular schedule, at least annually, so employees know it is a regular part of their employment.

It helps supervisors with:

1. Employee Development – The manager discusses employee strengths and how to apply them. Goals are discussed as well as plans for growth.

2. Employee Motivation – A non-threatening exchange of ideas between the manager and the employee which may help to solidify the relationship.

3. Employee Relations – A chance to find out how the employee feels about the supervisor, the job, and the organization.

The public sector in any community is committed to maintain high-performance culture, a thorough fair, credible, and transparent performance management structure that fosters timely employee recognition and rewards. Effective efforts of supervisors and employees align with organizational goals, promote consistency in performance review, and motivate employees to perform at their best.

Performance management increases individual success, accountability, achieves agency and organizational goals, and improves operational efficiency. An effective performance management program helps supervisors recognize their employees’ full performance potential by differentiating between high achievers and those requiring performance improvements, thereby assisting the organization in meeting its mission and goals. Performance management focuses on continuous process of communication, development, and results, rather than waiting until the end of the performance period. It encourages active two-way communication between the supervisor and the employee throughout the performance appraisal cycle.

Successful employee performance is essential to accomplish mission goals. A successful performance management ensures that work performed by employees accomplish the goals and meet the mission of the team in the organization.

Benefits of a successfully implemented performance management and appraisal program include:

• An organization that is directly aligned with its goals;

• A motivated workforce where every employee understands their importance to mission success; and

• Employees with a clear understanding of what is expected of them.

An organization’s performance management and appraisal program is intended to:

• Focus on employee engagement, development, performance and accountability.

• Align individual employee goals with organizational mission goals by supporting alignment and cascading of established organizational goals from executive to employee.

• Create a culture of engagement by fostering ongoing feedback, constructive informal interactions, and continuous learning for supervisors and employees at every level.

• Emphasize the continuous nature of performance management while deemphasizing the final performance appraisal discussion by:

o Providing continuous dialogue that allows for timely recognition and reward.

o Addressing technical and interpersonal development early and often.

• Improve supervisory assessment, selection, development, and training.

The supervisor and employee are vital members of a continuously evolving process within the process of performance, planning and monitoring to ensure mission accomplishment. The administration is responsible for providing fair, credible, and transparent performance management and appraisal program that encourages effective communication between employees and supervisors. This ensures that supervisors have the skills and time to manage performance successfully. Supervisors are responsible for developing performance expectations with employee participation; communicating throughout the performance management cycle about employees’ goals, performance; and ensuring that employees have the tools, training, and resources needed to perform their duties successfully. Employees at all levels are responsible for actively communicating with their supervisors about their performance, taking an active role in planning their development; being accountable for their actions; and continually striving for excellence in their performance in support of the organization’s mission.

The performance management process offers a planned opportunity for the employee and supervisor to meet and mutually identify, discuss and document the demonstrated job performance and expectations.

For the employee, the performance discussion:

• clarifies where the employee stands in relation to the expectations of the organization,

• assures mutual understanding of responsibilities and work assignments, helps identify an employee’s performance level, growth potential, and developmental needs,

• assures that the employee is fully aware of assigned duties and responsibilities.

For the supervisor, the performance discussion:

• helps identify an employee’s performance level, growth potential, and developmental needs,

• assures that the employee is fully aware of assigned duties and responsibilities,

• serves as a major consideration in matters concerning employee development, promotion, transfer, retention, salary and performance improvement.

Performance discussions should occur on scheduled review dates:

Initial Review: Performance discussions should be conducted for all regular newly employed, reemployed, promoted or reclassified employees. The discussion should be scheduled 6 months after the date of employment, reemployment, promotion or reclassification.

Annual Review: Performance discussions should be conducted at least once every year. A department should be consistent in establishing the review date.

Unscheduled Discussions: Unscheduled discussions may be initiated at any time by the supervisor or at the request of the employee.

The following guidelines should apply when the supervisor is preparing for the performance management discussion:

• Establish a time and a place for the performance discussion and notify the employee well in advance.

• Provide the employee with a current copy of the job description.

Discuss objectively, referring to the job description, all positive and constructive feedback and incidents occurring during the period of employment covered in the discussion.

• Meet with the employee to discuss performance strengths, improvements, enhancements for each performance factor. Encourage the employee to ask questions and openly communicate about his/her performance.

• Discuss the employee’s performance based on the duties and responsibilities of the job. Discuss performance based on the entire performance period. Outstanding or unsatisfactory occurrences should be considered in context with total performance over the entire rating period.

• When an employee reaches an overall rating of Needs Improvement or Unacceptable, a written Performance Improvement Plan (PIP) must be developed in consultation with Employee Relations (ER). The PIP must establish dates and times for follow-up meeting(s).

• Develop and document short and long-term performance goals for projects and job assignments, to be discussed and reviewed during the next scheduled performance discussion. A time frame for completion should be agreed upon with the employee and documented.

• Allow the employee to take the lead in discussions regarding a Career Development Plan. Provide assistance in fine tuning goals and objectives, identifying resources and organizational support.

The performance management discussion should be documented, signed, and dated by the supervisor, the department head or designee, and the employee. The signature of the employee indicates only that the discussion has taken place and not that there is agreement with the content.

Retain a copy of the documentation in the departmental file. Forward a copy to the employee and to Employee Relations for retention in the employee’s Human Resources file.

An effective performance management program provides a set of guidelines and standards that aim to achieve the employee performance goals of the organization. Performance management also strives to provide the tools needed to motivate and get the best out of the employees. A comprehensive performance management program requires planning, measuring data, and ongoing coaching and development to produce the desired results.

History

According to Dr. Aubrey C. Daniels, performance management is a science for managing behavior and results, the two critical elements of what is known as performance. Performance management arose from the brand of psychology called behavior analysis, with the term being originated in the late 1970s. Workplace performance management was born out of the need to generate desired results within employee interactions.

Features

Successful entities recognize that organizational goals are directly linked to employees. As a result, the best performance management programs make every effort to ensure that employee and organizational goals are coordinated. Performance management programs differ from the performance appraisal process. Performance appraisals typically assess performance and provide feedback only after work tasks are complete and measures past performance. In contrast, performance management involves ongoing fully integrated employee goal-setting and development. Performance management measures present performance and manages employee development toward future goals.

Considerations

An important element of performance management is performance measurement. Clear planning must be present to support performance management programs in achieving the desired goals. Failure to sufficiently plan can lead to ill-defined and ineffective goal measurement. A good rule of business when planning performance is to create goals that are, specific, measurable, achievable, realistic and timely (S.M.A.R.T). Well planned goals facilitate effective goal measurement.

Measures

Performance planning is where goals are created. During the planning phase, critical job functions must be defined and stated. For each employee, a standard of performance must also be defined. Standards of performance are organizational requirements based on how well a task must be done, and by what deadlines and cost constraints the task must be done. Next, the organization and employee must specify the desired results. Finally, planning must outline the processes for self- assessment, and manager and peer feedback and evaluation.

Benefits

Performance management promotes the achievement of strategic organizational goals. Effective performance management programs drive organizational results. Resulting benefits include increased financial returns, a more engaged and motivated employee workforce, and strengthened and responsive management controls.

This book provides comprehensive information, advice, and guidance for administering the performance management and appraisal program. It is designed to inform supervisors, human resources personnel, and employees on the modern performance management processes in the public sector. The chapters in this book cover planning, monitoring, evaluating, recognizing and rewarding employee performance, and examine the personnel manager in an organization. It also promotes compliance with performance management policy, as well as consistent application of performance culture principles across the public sector. It includes details about procedures of performance management cycle.

The book also provides assistance to public sector managers and leaders in preparing for, initiating and implementing change efforts, by highlighting the uniqueness of public and private sector organizations. By identifying and understanding change and change measurement in public sector organizations, public sector change leaders will increase the likelihood of successfully analyzing and adjusting their strategies and processes accordingly, and to navigate the perilous change course. However, many will believe that there is an increased likelihood of successful reform, change or transformation in the public sector by answering the question: What is the difference between public and private sector organizations? This is especially important, as there are continued efforts and demands for turning to the private sector as benchmark for addressing many of the inefficiencies in public sector organization.

CHAPTER 1

Performance Management Defined

Performance management can be defined as a systematic