Performance Management and Training

Performance Management and Training

Performance Management

Performance management is defined as a continuous process that allows supervisors and employees to communicate. The managers utilize performance management as an evaluation tool. They can evaluate employees’ performance while creating an environment that supports creativity and efficiency. During the communication process, objectives and expectations are clarified, goals are identified, feedback is provided, and results are reviewed. Effective performance management fosters employee engagement. It also drives the execution of strategy and catalyzes the achievement of the bottom line (Noe, Hollenbeck, & Gerhart, 2018). The attention that performance management receives today is intense as organizations implement it initially and seek constant improvements.

Factors leading to the trend’s adoption

Organizations’ uptake of performance management is motivated by increasing dissatisfaction among human resource managers, employees, and other departmental heads. At least 88 percent of most entities have a performance management system. At least 71 percent of these agree that these systems need improvement. Only 12 percent are satisfied with their current tools (Wellins & Miller, 2015). Secondly, the constantly growing sophistication of the systems that are used to manage performance. Organizations are investing in these technologies, hoping that they can maximize their system’s impact. Thirdly, the increased access to critical information and the shift of responsibility from the leaders to employees. The performance evaluations grant employees more power to control their career growth by seeking constructive feedback. Fourthly, the ability to control one’s career development and growth has resulted in significant changes in the workplace. These four reasons have heightened organizations’ uptake of performance management.

Deloitte Consulting LLP. Performance Management

Specific elements characterize Deloitte’s performance management system.

Firstly, check-ins form a particularly important part of the system. The company’s management ensures that employees have frequent conversations with team leaders. These conversations revolve around priorities, performance, and strengths. The company shifted from the previous system, ‘360 feedback’, where check-ins happened once a year. Deloitte’s partner Rob Massey reiterated the need for a real-time system that engaged the staff members more, motivated them through fueling instead of assessing performance and focused on the strengths (Orlando & Bank, 2016).

Secondly, the system has performance snapshots. These are tools with four questions that are used to capture the assessment of team members from team leaders at a specific time. Team leaders are supposed to base their evaluation on firsthand experience. Deloitte learned that the process of assessment is highly subjective. To increase employees’ engagement, the performance snapshots created a new opportunity and performed weekly. They are additionally quick and straightforward (Jogi, 2020).

In the past, the system placed greater emphasis on the evaluator instead of the person being evaluated. This created the idiosyncratic rater effect, which meant that the ratings were biased. The move towards the current system sought to utilize team leaders as the central assessors. Team leaders would state their future actions regarding various team members. In addition, the system aims to capitalize on the members’ strengths, creating the feeling that each member has a chance to utilize these strengths daily (Jogi, 2020).

Thirdly, the system has a team pulse survey. The survey is a compilation of ten questions that enables team leaders to comprehend the group’s experience through the members’ perspectives (Orlando & Bank, 2016). This plays a critical role in driving the necessary conversations as well as actions to shape them. The members’ descriptions of their daily activities provide leaders with essential information.

Fourthly, there are talent reviews and career coaches. These two aspects enable employees to identify their strengths, achieve career development, explore the various performance trends with help from advisors. It is important to note that Deloitte provides weekly progress reports, which consider the member’s happiness, overdue plans, progress, as well as problems. This step eliminated the use of ratings using single digits, which were used earlier (Jogi, 2020).

Effectiveness of Deloitte’s current performance management system

Based on feedback from the management team and the surveys that led to the adoption of the current system, one can safely conclude that it is efficient and effective. When the entity’s management realized that the 360 Feedback system no longer served the company’s needs, it initiated the change. However, the change occurred after specific areas that made the system inefficient were highlighted. The first aspect of the current system that makes it efficient is its frequency. The employees receive regular feedback from the team leaders regarding their strengths and other elements. The progress reports are filled weekly. Secondly, employee feedback demonstrates that team members enjoy the process more than they did before.

Thirdly, the flexibility of the new system allows for more holistic conversations. The absence of predetermined topics that should be discussed allows the participants to talk about their pressing issues, such as challenges and current performance. Finally, the transparency of this system improves its effectiveness because employees lead the feedback or conversations. Initially, the team leaders used to steer the conversation by following specific rules (Orlando & Bank, 2016). These changes have made the system more engaging and motivating for employees.

Formal and informal performance feedback processes

The formality or informality of feedback processes is determined by the channels that are used for communication. Formal feedback is delivered through performance appraisals, reviews, or meetings with superior management. It is usually scheduled and incorporated into an entity’s official procedures. The delivery occurs between managers and subordinate employees. In other cases, it could be documented and reviewed in an upcoming session (Pitkanen & Lukka, 2011).

Informal feedback processes are quite the opposite of formal ones. Such feedback is communicated frequently within the everyday work environment. It is provided independently of various formal platforms or mechanisms. The informal feedback is spontaneous and unplanned. It is also unscheduled and unsolicited. It can come from multiple sources, including peers, managers, or self (Pitkanen & Lukka, 2011). The two types of feedback demonstrate significant differences in flexibility, timing, source, and context.

Best practices to improve employee performance

Different organizations utilize different tools to improve their employees’ performance. Performance management is one of these tools. Through managing performance, the management can track or monitor the progress of employees and provide feedback. This information is used for other steps that are taken toward the same goal. Setting clear goals and frequently monitoring progress while providing constructive feedback is critical. Through the performance management process, the organization can also identify the challenges and strengths of staff members. The challenges highlight issues that need more attention. These issues may be personal or organizational. Regardless, they take away the employees’ concentration and commitment. The strengths highlight elements about an employee that is unexploited. Identification of these strengths motivates the employee because they feel more capable. One of the potential solutions to the identified challenges includes training of both managers and employees. This imparts skills and knowledge to both parties and enables them to produce new strategies to solve the current problems (Pulakos, 2004).

Importance of training to meet organizational needs and performance goals

Training is an essential aspect of meeting organizational needs and performance goals. Employees gain skills and knowledge that are required to perform the roles that result in specific goals. Once employees undergo training, they are empowered and gain increased confidence. In addition, they attain a consistent level of knowledge and skill. Employees, after training, understand what is expected of them in specific tasks. Training needs to be based on a needs analysis for effectiveness. The organization should spend resources on improving skills and knowledge that are not in the workforce and necessary to work performance. An organization that conducts regular training also needs to evaluate employees after the sessions. This evaluation should obtain information regarding the effect of training on employees’ daily activities. Employees’ feedback should inform the management whether work procedures are more manageable, less time-consuming, ambiguous, conflicting, or more effective. These elements are essential in assessing whether the training achieved its goals.

Designing an effective training program

To design an effective training program, an organization should consider various elements. Firstly, a needs analysis is critical. A needs analysis shows the skills and knowledge that the workforce requires to achieve specific goals. The lacking skills and knowledge are identified as the needs. Secondly, it is vital to determine the type of training that is ideal for the workforce. Training can take various forms, including instructor-led, web-based, on-the-job, mentoring, shadowing, seminars, or classroom training. Each of these forms is ideal for different professions, roles, and workforce needs. Thirdly, it is essential to set clear goals that the training should achieve. These objectives guide the facilitators on content, materials, and delivery. Fourthly, it is necessary to identify or produce ideal training materials that match the chosen form of training. The composition of these materials is essential and should consider the audience. Finally, after conducting the training, it is necessary to carry out an evaluation to monitor the achievement of objectives. Obtaining feedback from employees, observing them as they work, or seeking clients’ feedback all inform the management about the training program’s effectiveness (Pulakos, 2004).

 The role of training and performance management in protecting an organization from litigation

The training of managers and team leaders, who are the main evaluators during performance management, is important in protecting organizations from litigations. Numerous litigations stem from performance evaluation. The evaluators need to know the most appropriate language to use when conducting the assessments and documenting the information. They also need to understand the risks that are involved whenever they become subjective. Overcriticizing an employee, denying them a salary increment, demoting them, firing them, or subjecting either to an undesired transfer all need consistent and objective reasons. The court seeks to establish whether an organization had a good cause to fire an employee. Thus, the organization needs to train the chosen evaluators on objectivity and create a criterion for guidance. They should also be taught about the various elements of the entire performance evaluation. These various factors include transparency, self-reviews, frequency, and appropriate language, which are critical for compliance (Vranjes, 2016). Therefore, an entity that seeks to avoid such legal issues should train its managers and evaluators on the entire process. Furthermore, it is important to evaluate the performance review process to establish fairness.

Potential types of litigation

Organizations are likely to face several types of litigations. The most common is discrimination, either intentional or unintentional. Discrimination can be based on age, sexual orientation, physical ability, race, gender, marital status, and nationality, among others. For instance, if an evaluator states that an individual “is too slow” or “lacks energy,” this can be assumed as age-based discrimination. Suppose an employee is fired and the courts find such feedback in the files, the organization is liable for non-compliance and is likely to pay for damages. Even in cases where the evaluator did not intend to discriminate, the organization becomes liable if some sections of the review have an unequal impact on a particular group. Treating other employees more pleasantly than others due to their abilities or knowledge can also be regarded as discrimination, intentional. If a manager is one of the evaluators, they should understand the need to develop fairness and avoid acting on their feelings obtained from the performance review. Employers may also face litigations due to illegal actions. If a certain review leads to an adverse action that the court considers unlawful, the company is deemed to be non-compliant. For instance, firing an executive without good cause is a breach of contract. The lack of proof for sufficient grounds to take such an action places the employer in a murky situation (Vranjes, 2016).

References

Jogi, O. (2020). Case Study: How Deloitte Reinvented Their Performance Management.

Noe, R. A., Hollenbeck, J. R., & Gerhart, B. (2018). Fundamentals of Human Resource Management. McGraw-Hill Education.

Orlando, J., & Bank, E. (2016). Case Study: How Deloitte Reinvented Their Performance Management. Retrieved from SHRM: https://www.shrm.org/executive/resources/people-strategy-journal/Spring2016/Pages/deloitte-case-study.aspx

Pitkanen, H., & Lukka, K. (2011). Formal and informal feedback in management accounting. Research executive summary series, 6(14).

Pulakos, E. D. (2004). Perfomance Management. SHRM Foundation.

Vranjes, T. (2016). Reduce the Legal Risks of Performance Reviews. Retrieved from https://www.shrm.org/resourcesandtools/legal-and-compliance/state-and-local-updates/pages/reduce-the-legal-risks-of-performance-reviews.aspx

Wellins, R. S., & Miller, L. (2015). Overcoming the barriers to effective performance management.

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Scenario
Choose an organization to use for this assignment. It can be where you are currently employed or a company with which you are familiar. It must be an organization that is researchable, as you will need to gather and analyze information to complete the assignment. You may use the same organization for the other assignments in this course.

If you choose the organization where you are currently employed, please keep in mind that the analyses you make must be based on facts that can be documented rather than your personal opinion as an employee.

Contact your instructor if you have questions.

Instructions
Write a research paper based on your research into the performance management system, which includes training for the chosen organization. In your paper:

Describe the performance management system currently in place.
Explain how the performance management system is explained and communicated to employees.
Analyze how the current performance management system is effective for the organization or why it needs to be changed. If the system needs to be changed, discuss how current trends of performance management could be incorporated into the current system.
Explain the differences between formal and informal performance feedback processes.
Analyze best practices to improve employee performance.
Analyze the importance of training to meet organizational needs and performance goals.
What should be considered when designing an effective training program?
Explain how training and performance management protect an organization from possible litigation.
What types of litigation might arise?
Note: You must address all the required elements of this assignment. If details for any of the bulleted points are unavailable, research the topic and present recommendations you believe would be best for the organization, along with your supporting rationale.

Additional Requirements
Your assignment should also meet the following requirements:

Length: 7–10 typed, double-spaced pages, in addition to a title page and reference page.
Written communication: Communicate in a manner that is scholarly and professional. Your writing should be:
Concise and logically organized.
Free of errors in grammar and mechanics.
Validation and support: Use a minimum of five relevant and credible scholarly or professional resources, such as the Wall Street Journal, to support your work. These resources should not include the resources found in the course.
APA format: Format all citations and references in accordance with current APA guidelines. Refer to the Evidence and APA Campus page for guidance.

References

Cardy, R. L., & Munjal, D. (2016). Beyond performance ratings: The long road to effective performance management. Industrial and Organizational Psychology, 9(2), 322–328.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2020). Fundamentals of human resource management (8th ed.). McGraw-Hill.
Chapter 10, “Managing Employees’ Performance,” pages 289–321.
Chapter 9, “Creating and Maintaining High-Performance Organizations,” pages 262–288.
Reinboldt, M. (n.d.). Performance management trends for 2021. SelectHub. https://www.selecthub.com/hris/employee-performance-management/performance-management-trends/