Managing Employee Performance

and Reward
Concepts, Practices, Strategies
2nd edition
 BMO 6625 – Semester 1-2020

Week 6: Reviewing and Developing

Employee Performance
 Performance feedback and development

1. The performance management cycle

2. Analysing individual performance deficiencies
3. Providing feedback: three approaches
4. Counselling underperformers
5. Action planning
6. Providing negative feedback
7. High performance coaching
 The performance management cycle
MONITORING

INFORMAL
LEARNING AND
FEEDBACK
DEVELOPMENT

 COMPETENCIES
 BEHAVIOURS
 RESULTS

ACTION FORMAL
PLANNING ASSESSMENT
FORMAL
REVIEW
MEETING
 Diagnosing individual performance deficits

Performance Motivation Competencies Resources

(validly and =  Direction X  Knowledge X  Technology
reliably  Intensity  Skills  Materials
assessed)  Duration  Abilities  Information
 Attributes  Supervisor
 Person–role and peer
fit support

Recognition Psychological Selection,

and rewards contract training and
 Deal development
delivery
 Trust
 Felt-fairness
Video – Managing underperformance
• http://www.hrmonline.com.au/section/legal/
hrm-tv-managing-under-performing-employee
s/
 Performance review meetings (or formal
feedback sessions)

A formal dialogue/exchange between employee and supervisor

about the employee’s performance over the review period for
the purpose of reaching agreement about what has been
achieved, what can be improved and how such improvements
can be achieved.
 Performance review meetings

Key steps:

1. Evaluate performance (competencies, behaviours, results)

2. Summative and detailed feedback on performance
3. Provide positive reinforcement
4. Exchange of views about what has been achieved and what
needs to be done
5. Agreement about what needs to be done next (action planning)
 Providing feedback:
three approaches

‘Tell and sell’

Aims 1. Tell employee of performance
2. Obtain employee acceptance of evaluation
3. Persuade employee to agree to supervisor’s plan for
improvement
Role of supervisor Sentencing judge
Supervisor’s attitude That employees appreciate advice and constructive criticism
 Providing feedback:
three approaches

‘Tell and listen’

Aims 1. Tell employee of performance
2. Allow employee to respond to appraisal
3. Consider both views together, reach conclusion and plan for improvement

Role of supervisor Attentive judge

Supervisor’s attitude Feelings of the employee should be understood and respected

 Providing feedback:
three approaches

‘Problem-solving’
Aims 1. Discuss appraisal jointly
2. Work together to identify solutions to performance problems
3. Encourage employee development and improvement
Role of supervisor Helper/counsellor/coach
Supervisor’s attitude Mutual and constructive approach is best for identifying and correcting
problems
 The ‘problem-solving’ review meeting

Main interviewer competencies 1. Use of exploratory questions

2. Evaluating and reflecting ideas
3. Ability to listen
4. Ability to generate ideas
5. Sensitivity
6. Seeing job from employee’s perspective
7. Summarising
Open Q&A dialogue  Invite reflection and self-assessment
 How well do you feel that you have done?
 How do you feel about that?
 Why do you think that happened?

Advantages  Constructive nature means improvement is more likely

 Ideas and views more easily expressed (without being judged)
 Greater freedom and cooperation
 Mutual discussion may remove barriers and allow insight
 Fosters ‘double-loop’ learning

Disadvantages  Aim may conflict with evaluative purpose

 Requires highly competent interviewers
 More difficult to control; more time-consuming
 Video – Employee Performance
Review
• https://www.youtube.com/watch?v=axUYxKC
2U04

Reflective question:
How do you respond to critical feedback when
you believe you have performed well?
 Action planning instrument
Performance development plan for the year 2016
Employee name:……………………………… Supervisor:………………………………………
Position:………………………………………… Signature:……………………………………….
Signature:……………………………………… Date:……………………………………………..
Date: ……………………………………………

All performance development planning should be based on:

1. A thorough and agreed analysis of the nature and scope of assessed performance weakness over the preceding year.
2. Agreement as to the factors primarily responsible for these weaknesses and the main needs arising from these weaknesses.
3. Agreement as to the steps that should now be taken to address these weaknesses and needs and the goals that should be
applied to ensure that these needs are met in an effective and timely way.

In determining the steps to be taken and goals to be set, consider which of the following options may provide the
most appropriate and realistic solutions:
 On-the-job training  Further education  Formal training
 Mentoring  Committee/task force participation  Self-learning programs
 Secondment  Lateral transfer  Special projects
 Coaching  Higher duties  Assessment centre activity
 Job rotation  Online training  Networking
 Reading and discussion of relevant  Conference/seminar attendance  Teamworking exercises
publications
 Action planning instrument

Performance development goals

3–5 high priority development needs for 2016: Specific goal and measure to address each need:

1.
2.
3.
4.
5.
1–3 longer-term career development needs/aspirations: Goal and measure for addressing each nominated long-
term need/aspiration:
1.
2.
3.
 Providing negative feedback
What is negative feedback?
The communication of information and judgements regarding low or reduced
achievement against desired performance standards or expectations.

Barriers that may prevent people benefiting from negative feedback:

• Most people don’t like giving it
• Most people do not want it because of perceived loss of ‘face’
• Cultural barriers, especially regarding loss of ‘face’
• Typically perceived less accurately than positive feedback because
mechanisms aimed at protecting self-esteem distort message
• Self-serving bias: undesirable outcomes blamed on contextual factors rather
than on the individual
• Denial, especially by individuals with high self-esteem, history of high
performance and over-exposure to positive feedback
• Individuals with low self-esteem may experience a further loss of self-image
 Developing high performance:
mentoring and coaching
What is a mentor?
• A mentor can be defined as an individual of high status in
the work environment who has superior experience and
knowledge and is committed to providing upward mobility
and career support to a mentee (Ragins, 1989)
• Can be a formal or informal relationship
• One-on-one support and guidance is provided by the
mentor
 Performance coaching

What is performance coaching?

• A learning process to help high-performing employees to
further enhance their performance
• The purpose is to examine areas for development and to assist
the ‘coachee’ in thinking through work-related problems and
identifying and evaluating possible responses
• The coach helps establish development plans and, if the
relationship continues, can track accomplishments in carrying
out the plan
 Performance coaching

• Historically, focused on remediation for derailing executives

• Today, is focused on preparing high-potential employees for

career advancement such as:
- accelerating high-potential development
- developing special populations (e.g. minority executives)
- special needs (e.g. on boarding or managing remote teams, or
managing a specific project) (Bono et al., 2009)
• Emphasis is on drawing a strong link with learning and
development and assisting individuals or teams to reach their full
potential.