Docstoc

Alligning Organizational Culture

Document Sample
Alligning Organizational Culture Powered By Docstoc
					Strategic Links:
Aligning Organizational Culture,
Business Strategies and
Performance Management

Idealist.org
National Nonprofit Human Resources Conference
Portland, Oregon
June 4, 2004
10:30 a.m. to 12:00 noon
Why Implement
Performance Evaluations?
   They‟ve been used at every organization I‟ve
    ever worked.
   To substantiate differences in pay increases
    and/or personnel actions.
   To promote behaviors that are aligned with our
    organizational values and culture.
   To establish, monitor and assess achievement
    of work activities that support our strategic plan.
   All or several of the above.


                         2
What Results Are You Getting
From Performance Evaluations?

   “We‟ve gone through the annual „torture-fest‟ –
    all for a lousy 3% raise!”
   “My boss must be getting ready to fire me – all
    she talked about was every little mistake I made
    this year.”
   “I had a really productive discussion with my
    boss about the things I do well, some new
    projects I‟ll take on and some training to help
    build my technical ability.”


                         3
Objectives of An Effective
Performance Management System

   Stimulates productivity by establishing clear
    performance standards and priorities at the
    beginning of the performance cycle
   Promotes good employee relations by providing
    opportunities for timely feedback
   Strengthens supervisors‟ ability to manage staff
    by giving a rational, “objective” basis for
    evaluating performance and encouraging them
    to identify ways to improve future performance


                        4
            Performance Management
            System Model
                                      Performance Planning
                             Establish and define
                              Key responsibilities
                              Objectives
                              Expected outcomes
                              Priorities
                              Behavioral factors

    Development & Follow Up                                         Performance Monitoring
 Identify interests and needs to                              Timely, relevant feedback
  enhance performance                                           Maintain log
 Establish training plan                                       Mid-Year review
 Review job description                                        Refine responsibilities/objectives
 Identify new challenges                                       Revisit priorities

                                    Performance Appraisal
                               Compile/review data
                               Request self-appraisal
                               Prepare draft appraisal
                               Review with next-level supervisor
                               Finalize appraisal
                               Meet with employee5
Essential Design Considerations

   What does your organization do?
       What goods or services are produced?
       What kinds of people do you hire?
       Can/Do you measure progress or achievement?

   What does your organization value?
       Individual contributions to the strategic plan?
       Quality of internal interactions?
       Nature and quality of external interactions?

   What is level of organizational commitment?


                             6
Do Revenue Streams Matter?

   Fixed funding sources – government contracts,
    grants, fees-for-service
   Charitable contributions – individual donations,
    corporate underwriting, events
   Provision of goods and/or services – program
    delivery, educational services, memberships,
    etc.
   Varied sources – combinations of the above



                        7
Timing of Annual Reviews

 Anniversary Date
 Each employee reviewed around
  anniversary of employment/promotion

 Common Review Date
 All employees reviewed after year-end
  program and financial results are in



                  8
    Anniversary Date
Advantages
   Each employee‟s performance is reviewed on an individual
    basis
   Supervisor better able to focus on individual accomplishments
    and development needs
   Payroll increases are spread out over the year, reducing the
    impact of a single jump in salaries on cash flow

Disadvantages
   Ratings may be influenced by temporary up- or downswings in
    program or fiscal results
   May not establish clear link between individual and
    organizational performance

                             9
Common Review Date
Advantages
   All employees evaluated on overall achievement of program, operational or
    fiscal results
   Provides consistent basis for comparing contributions of individual employees
    in relation to others
   Less of an administrative burden on managers and HR, and increases can be
    based on year-end fiscal results

Disadvantages
   Time required of supervisors to complete several appraisals at the same time
   Individualized coaching or development opportunity may be “lost in shuffle”
   Cash flow impact can be significant when all increases occur simultaneously




                                    10
Weighting Goals

 Provides employee and supervisor
  with common understanding of which
  are most important to success
 Helps in monitoring activities that are
  critical to organizational goals
 Priorities may change during course
  of the year

                   11
 How Many Rating Levels To Use

The number of ratings you use can vary, depending on your
organization‟s culture and the kinds of performance you evaluate.

          Four (or More)                    Fewer than Four
    Focus more on tangible            Focus on behavioral factors
     results produced                   and interactions; “soft”
    Supervisors are comfortable        results.
     using consistent, clearly-        Supervisors have difficulty
     defined criteria to note           identifying criteria for noting
     variances in employee              variances in performance
     performance.                       among employees.




                               12
Numeric Rating Levels

 Generally used to calculate points
  scored for each activity or behavior
 Often uses numeric “weight” to
  establish relative priority
 Establishes range of points associated
  with overall performance ratings


                  13
            Example
         Key                              Expected        Weighted   Rating   Total    Comments
         Responsibility/Performance       Outcome          Factor             Points
         Goals
Sample
         Develop materials            Produce flyers,
         needed to promote            local newspaper
         events and adapt             ads and             10%          3      30
         existing information         community
         materials to assure they     bulletin board
         accurately reflect           materials for
         community information.       individual
                                      events.

                       Rating Level
                          0 to 189 = Partially Meets Goals
                       190 to 349 = Consistently Meets Goals
                       350 to 549 = Frequently Exceeds Goals
                       550 to 600 = Exceeds All Goals



                                                     14
Lettered Rating Levels

   Uses letter(s) to denote rating level for
    each area of performance evaluated
   Priority or “weight” can be described as
    percentage or by narrative descriptor
   Supervisor counts up ratings given to
    each activity and behavior factor and
    determines “average” overall rating.



                       15
         Example
KEY RESPONSIBILITY/          EXPECTED OUTCOME   PRIORITY     SUPERVISOR   Comments
PERFORMANCE GOAL                                               RATING

Develop materials           Produce flyers,
needed to promote           local newspaper
                                                Important      CM
events and adapt            ads and
existing information        community
materials to assure         bulletin board
they accurately             materials for
reflect community           individual
information.                events.

             Rating Level
             Partially Meets Goals (PM)                     
             Consistently Meets Goals (CM)                  X
             Frequently Exceeds Goals (FE)                  



                                          16
Sample Organization #1
   Small social service agency
   Employs primarily caseworkers and
    administrative staff
   Revenues generated primarily by government
    funding and limited fees-for-service
   Success measured by quality of interactions
    and numbers of clients served
   Culture is egalitarian – „we‟re all in this together‟
   Everyone gets common annual increase


                         17
Sample Construct #1
  Job Description                       Agency Values
  Provides basis for                  Provides basis for
  establishing                        determining desired
  activities                          behaviors



                   Performance Plan
             • Establishes expectations for
               performance throughout the
               year
             • Provides qualitative basis for
               annual performance appraisal



                          18
Sample Construct #1 (Continued)

         Annual Appraisal Design Will Include
   Assessment of quality of activities and desired behaviors
   Summary of strengths and areas to be enhanced
   3 rating levels:
        Usually exceeds expectations
        Fully meets expectations
        Partially meets expectations
   Common annual increase, if performance is at “meets
    expectations” level or better



                             19
Sample Organization #2
   Mid-sized educational service organization
   Employs varied staff: curriculum developers, trainers/
    program delivery staff, marketers, customer support
    representatives and administrative/operational staff
   Revenues generated by combinations of government
    contracts, foundation/corporate funding and sales of
    services – with emphasis on expanding sales revenue
   Success measured by quality of programs, increased
    numbers of programs delivered, sales revenue and client
    development and retention
   Culture is results-oriented, with all departments having clear
    understanding of how they support achievement
   Annual increases based on individual performance


                             20
    Sample Construct #2
 Strategic Plan         Job Description           Agency Values
Provides basis for      Provides basis for     Provides basis for
establishing            establishing           determining desired
results goals           activities             behaviors

                         Performance Plan
          • Establishes expectations for individual results
            that result from activities and behaviors
            throughout the year
          • Encourages ongoing discussion of
            organizational progress – more inclusive “line
            of sight”
          • Provides quantitative and qualitative basis for
            annual performance appraisal
                                   21
Sample Construct #2 (Continued)

          Annual Appraisal Design Will Include
   Quantitative evaluation of results; qualitative assessment
    of activities and desired behaviors
   Summary of strengths and areas to be enhanced
   Uses 1 to 10 rating scale:
        10 = Exceptional performance
        5 = Expected performance
        1 = Unsatisfactory performance
         Gradations allow more discussion of relative
         contribution and opportunities for development.
   Greater pay opportunities for high-performing staff

                              22
Employee Self-Appraisal

   Engages employee as partner in managing
    performance
   Alerts supervisors to differences in how
    performance is viewed
   Provides source of information about
    organizational or operational issues that
    influence performance




                       23
Professional Development Plan

   While growth opportunities may be limited, it is
    important to develop staff skills and provide
    experiences that will enrich their professional lives
   Development goes beyond formal training courses:
    may include cross-training, temporary project
    assignments, on-the-job training and mentoring
   Should include timetable for learning skill and how it
    will apply in the employee‟s job
   May include indicator of priority




                          24
Does “One Size Fit All”?

 Consider if one evaluation form
 should/can be used for all employees,
 or if separate forms should be used,
 based on:
   Staff level
   Nature of work performed
   Business unit
   Union/non-union status

                 25
Other Issues

   Include upward/360o feedback?
   Ensure management buy-in and participation
   Determine level of staff involvement in developing and
    testing the system
   Provide adequate training and opportunities for ongoing
    discussion of system
   Review evaluations to ensure they reflect:
        Consistent approach to establishing performance
         expectations
        Common understanding of rating levels
   Assess system effectiveness and revise as necessary



                              26
Questions & Answers



                      ?
Contact:   Larry Beers
           James E. Rocco Associates, Inc.
           914-925-3412
           LFBeers@JERoccoAssociates.com


                       27

				
DOCUMENT INFO
Shared By:
Stats:
views:251
posted:2/23/2008
language:English
pages:27