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Performance Management

By Tayo Gbenro
www.tayogbenro.com
tayo@tayogbenro.com

Performance Planning & Objectives


Setting

Module 3 Outline: Introduction to Performance Management

Understanding Performance Management


The Purpose of Performance Management
Pros, Cons and Reputation of Performance Management

What is Performance Management?

Performance management is a strategic and


integrated process that delivers sustained success to
organizations by improving the performance of its
people and by developing the capabilities of individual
contributors and teams.

Performance
management is the
process of assessing
progress towards
achieving
predetermined
goals through
relevant
communication and
action.

Performance Management System


PMS is a roadmap for creating a High
Performance organization
through
the integration of organization's
vision, values, systems and people
and Aligning the business units,
teams and individuals

Vision & Mission


Strategy
Processes

Systems
Performance
Management
System

Behavior
Results
Actions

Performance Management System


PERFORMANCE
STANDARDS
Identify relevant standards
Select indicators
Set goals and targets
Communicate expectations

PERFORMANCE
MEASUREMENT
Refine indicators and define
measures
Develop data systems
Collect data

PERFORMANCE
MANAGEMENT
SYSTEM

REPORTING
OF PROGRESS
Analyse data
Feed data back to managers,
staff, policy makers, and
constituents
Develop a regular reporting
cycle

QUALITY
IMPROVEMENT PROCESS
Use data for decisions to
improve policies,
programmes and outcomes
Manage changes
Create a learning
organization

Performance Management Model

The Essence of Performance Management

Performance management is
based on the agreement of
objectives, knowledge, skill
and capability requirements,
performance improvement and
personal development plans.

Clarifies corporate goals.


Translating corporate goals
Improves performance
Encourages self-management
Measures performance
against jointly agreed goals
Mutual respect for the
individual
Procedural fairness
Transparency

Phases of Performance Management.

Planning

- Understanding current performance, prioritizing what needs to be


done, identifying actions that need to be taken and planning for the
improvement;

Execution
Review

Revise

Ensuring that the proper systems and processes are in


place to support improvement, take action and manage
risk and helping people achieve better performance;
Understanding the impact of your actions,
reviewing performance, speaking to users and
stakeholders about their experience of performance
and getting a better picture of changing
circumstances;
Using the lessons learned from review to
change your plans or what you do so that
future action is more efficient, effective and
appropriate.

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PLANNING Setting Objectives:

Planning employees' performance involves establishing the standards or


measures like KRAs, value system, ethics, and performance factors, which
guide an employees appraisal. For an employee, performance objectives (in
form of KRAs & IDP) should be developed in line with the respective
departments/ project/groups objectives

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EXECUTION - Competency Development:

Doing/Execution involves evaluating employee developmental needs that will


help them strengthen their job-related skills and competencies, and prioritizing
and developing a plan of action to achieve the set targets.

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REVIEW - CHECKING (Continuous Monitoring):

Checking includes conducting ongoing reviews where employees performance is


quantitatively measured against the set standards to identify how well the
employees are meeting the set goals. Thereafter, the quantitative data is used to
derive performance rating during the appraisal period. For low performance, an
immediate plan of action is taken rather than wait until the end of the appraisal
period when summary rating levels are assigned.

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Acting (Performance Evaluation)


Acting includes evaluating job performance against the standards in the
employees performance plan and assigning a rating to the employee based on
work performed during the entire appraisal period.

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The Purpose
of Performance Management

To improve performance

Develop Employee

Satisfy the needs/expectations of all

Ensure communication and involvement

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Benefits of Performance Management

Clarifies tasks & targets

Focuses on results

Aligns organizational activities and processes

Cultivates a system-wide, long-term view of the firm

Produces meaningful measurements

Depersonalizes issues

Validates expectations

Ensures equitable treatment of employees

Cons of Performance Management

Time Consuming
It is recommended that a
manager spend about an
hour per employee
writing performance
appraisals
Discouragement
If the process is not a
pleasant experience, it
has the potential to
discourage staff

Inconsistent Message
If a manager does not
keep notes and accurate
records of employee
behavior, they may not be
successful in sending a
consistent message to the
employee
Biases
It is difficult to keep biases
out of the PA process

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Performance Planning & Objectives


Setting

Module 4 Outline: Performance Planning and Objectives


Setting

Planning Performance
Defining Performance Objectives
Differentiating work activity from Performance Objectives
Manager's Responsibilities in Performance Planning
Employee's Responsibilities in Performance Planning
The Performance-Planning Meeting
Determining Key Job Responsibilities
Goal Setting & Goal Statements
SMART Performance Objectives
Linking Departmental Goals and Objectives and Employee Performance
Expectations

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Performance Planning Process

Performance planning is a work plan which sets

objectives

Standards

performance improvement areas

agreements for monitoring performance

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Employee Development Plan

This is a learning action plan for the employee with managers support
which includes:

training,
Coaching & mentoring,
job enrichment/rotation,
360 degree feedback.

It records the agreed actions to improve performance and to develop


knowledge, skills and capabilities.

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Employee Performance Agreement

Includes the following

Key Result Areas (KRA)


SMART Objectives
Standards
Competencies
Performance Measures and Indicators
Corporate Core Values or Requirements
Reports & Frequency

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What are Performance Objectives?

Performance objectives describe desirable goals


that define the expectations from a job holder by a
superior executive that has to be accomplished
within a specified period.

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Why set Performance Objectives?

Provides a standard
against which to
assess

Provides the job


holder a tool for
self management.

performance.

Helps to focus and


coordinate the
efforts of the
organization on the
issues that really
matter.

Provides a basis for


fairness and equity
in rewarding
performance.

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Performance Measures
The process of managing performance begins by defining expectations in
terms of targets, standards and competency requirements. This sets the
basis for measuring performance.
Some Measurement Issues
There are sometimes too many measures.
Some measures may not be connected to strategy.
Measures are results-biased and do not tell managers how the results were
achieved.
Reward systems are not aligned to performance measures.
Measures do not support a team-based management structure.

1. They don't know


why they should do it

3. They don't
know what they
are supposed to
do
5. They think their
way is better

7. They think they


are actually doing it

Causes of Poor
Performance that
cannot be solved
without the action of
Line Managers.

9. They are
rewarded for not
doing it

11. They are not


motivated to do it

2. They don't know


how to do it

4. They think your


way will not work

6. They think
something else is
more important

8. They are
punished for doing
it
10. It's beyond their
personal limits

12. No one could


do it

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Criteria for Performance Measures

Performance measures should:


Be related to the strategic goals and measures
Be relevant to the objectives and accountabilities of the teams and individuals
concerned
Focus on measurable outputs
Indicate the data or evidence that will be available as the basis for measurement
Be verifiable
Be as precise as possible
Provide a sound basis for feedback and action
Be comprehensive

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Writing Effective Performance Objectives

Start with understanding what performance objectives are and how they
align with and support your organizations goals, objectives, and priorities.

It starts by following four steps:

Understand the Purpose


of the Performance
Objectives

Determine the
Most Important
Aspects of the
Job

Link Work
Activities to End
Results

Make Your End


Result SMART

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Writing Effective Performance Objectives


STEP ONE: Understand the Purpose of Performance Objectives

A performance objective:

is a specific end result that


contributes to the success of the unit or organization
an employee is expected to accomplish or produce.
provides focus to an employees work
ensures employees actions is directed towards achieving important missionrelated outcomes.

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Writing Effective Performance Objectives


STEP ONE: Understand the Purpose of Performance Objectives

Performance objectives are not work activities, task descriptions, or


responsibilities listed in a performance/job description.

A work activity is the action that an employee takes when performing his or
her job.

A performance objective specifies the outcome or end result of a work


activity.

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Writing Effective Performance Objectives


STEP ONE: Understand the Purpose of Performance Objectives
EXAMPLES:

Work Activity: Determine acquisition strategies.

Performance Objective: By the end of the fiscal year, present two


acquisition plans for new computer systems based on a thorough analysis
of customer needs, capabilities, and cost/benefits.

Work Activity: Prepare and deliver briefings.

Performance Objective: By 28 February, deliver three briefings to key


stakeholders regarding the new security initiative within the organization,
and write a detailed report on the feedback received.

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Writing Effective Performance Objectives


STEP TWO: Determine the Most Important Aspects of the Job

Make a list of the most important work activities for the job.

Consider work activities:


Critical for supporting the organizational mission
Key to supporting other jobs in the organization
Performed most often by the individual

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Writing Effective Performance Objectives


STEP THREE: Link Work Activities to End Results

Choose 3 to 6 of the most important work activities on your list, and for each
one, write down what the end result of performing that activity should be.

EXAMPLES:
Work Activity: Performs research on emerging foreign technologies.
End Result: Produce a report on emerging foreign technologies.
Recurring Task: Ensures computer program is working effectively.
End Result: Submit weekly inspection reports, documenting problems and
corrective actions.

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Writing Effective Performance Objectives


STEP FOUR: Make Your End Result SMART

Once you have written down several end results, turn each one into a
SMART performance objective.
Specific The performance objective needs to specify clearly defined
expected results.
Details are important so you know what is expected.
Clearly defined expectations and results make it easier to determine if
objectives are met.

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Writing Effective Performance Objectives


STEP FOUR: Make Your End Result SMART
EXAMPLES: Objective A

Too Vague: Update report on emerging foreign technologies.


Specific Information that could be included:

What report should be updated?


What is meant by updated?
How much of the report will be updated?
Updates should be current as of when?
What are the standards for evaluating the quality of the updates?

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Writing Effective Performance Objectives


STEP FOUR: Make Your End Result SMART

How would the rater know if the report was successfully updated?
Appropriate Specificity:
By 10 March, update the yearly report on emerging foreign technologies to
include information available through 31 December. As needed, provide
new sections for information not previously addressed, and revise previous
sections for which you have found new information. The final product should
demonstrate a thorough analysis of appropriate sources and meet quality
standards as determined by relevant organizational guidelines and
supervisor review.

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Writing Effective Performance Objectives


STEP FOUR: Make Your End Result SMART

Measurable The performance objective should specify how to measure


success (i.e., provide a verifiable standard for evaluation).
Providing concrete values sets the parameters for what you must achieve
and standards for evaluating that achievement.
Make sure that the measure does not require perfection (e.g., performance
must be 100% error free), otherwise you will never be able to exceed the
objective.

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Writing Effective Performance Objectives


STEP FOUR: Make Your End Result SMART
Types of measurement:

Quality how well the work is performed (e.g., accuracy, effectiveness, or


usefulness)
Quantity amount produced (e.g., raw numbers, percentages, level of
productivity)
Timeliness how quickly the work is completed (e.g., a certain time period
or by a certain date)
Cost Effectiveness how efficiently the product or service was produced
and/or outcomes that result in a savings of time or money (e.g., dollar
amount saved by creating an efficient method of performing a duty)

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Manager's Responsibilities in Performance Planning


The Supervisor has Six (6) Primary Responsibilities;BEFORE THE MEETING
1.

Review Corporate Balanced Scorecard & Departmental Scorecard

2.

Read the employees job description

3.

Identify the most important competencies

4.

Determine the employees Key Performance Indicators

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Employee's Responsibilities in Performance Planning

The Employee has Seven (7) Primary Responsibilities;BEFORE THE MEETING


1.

Review Corporate Balanced Scorecard & Departmental Scorecard

2.

Review your job description and determine your critical responsibilities

3.

Think about your job and identify the most important targets that you feel you must
accomplish in this appraisal period

4.

Think about what you consider the full measure of success in each target area

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The Performance Planning Meeting

Supervisors role:

Discuss and come to agreement with the employee (competencies, targets


and priority)
Agree on the individuals development plan for the period
Employees role:
Discuss and come to agreement with your supervisor on the most important
competencies for your job, responsibilities and targets for the appraisal
period
Discuss and come to agreement on your personal development plan
Discuss and understand your KPI with your supervisor

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Determining Key Job Responsibilities

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Use the Job Descriptions


Identify the Big Rocks of the Job/Role
Set specific objectives and determine what success will look like.

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Goals Setting & Goal Statements

What is Goals Setting?


Any one who does anything worthwhile, anywhere has consciously or
unknowingly followed through on a goal.
Goals keep us focused on a purpose
They help us through difficult times when other less motivated would give up.
A person who wants to get the most out of life often has a number of goals
simmering at the same time, in their personal and business lives.

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Why Set Goals?

Goals help us to evaluate present/actual situation and performance


We are then able to plan/gear up for better performance
Goals ensure that we remain focused
They keep us motivated

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5 Elements Of Useful Goals

Specific: describes what you want to achieve/accomplish with as much


detail as possible
Measurable: describes your goal in terms that can be clearly evaluated.
Challenging: takes energy and discipline to accomplish. It should stretch
you.
Realistic: A goal that you know you are actually capable of obtaining.
Deadlines: goals that break longer term goals into shorter pieces and
clearly specify target completion date.

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Steps for Successful Goal Setting and Achievement

1. Use well formed Goal Statements


2. Break goals down into manageable Steps
3. Motivate and Commit
4. Remind and Keep track
5. Frequently Review and Re-assess

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Examples of SMART Goal Statements (1 of 3)

Vague Goal Statement: I want my job to be a good fit.

SMART Goal Statement: By the end of November of [2016], I will be in a


position that utilizes my top skills, values, passions, and ideal work environment
(e.g. short commute, open concept office, matrix management style, natural
light in work area and perfume free environment). I will join a job search club,
research to create a list of 50 companies that fit with my good fit profile and
participate in ten or more networking events.

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Examples of SMART Goal Statements (2 of 3)

Vague Goal Statement: I will take some professional development courses.

SMART Goal Statement: By January 1st 2017, I will have researched and
decided on five courses I want to complete over a three year period. I will
register in my first course to start September of [insert year]. My course plan fits
with my five year career plan and I will have determined a budget and gathered
the financial resources and family support in place prior to January 1st 2017

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Examples of SMART Goal Statements (3 of 3)

Vague Goal Statement: I want salary increase.

SMART Goal Statement: By December 1st 2013, I will have positioned myself
to ask for a raise of a minimum of 10% of my salary by cutting my departments
budget by 10% and increasing my departments sales by 10%.

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SMART Objectives

Many organizations use the 'SMART' mnemonic

S = Specific/stretching

M = Measurable

A = Achievable

R = Relevant

T = Time-framed

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Summary

Written specific goals provide direction and focus to your activities. They
become a road map to follow.
Learn to focus on only what is truly important. Being busy with activities
does not pay, only results do.
Be committed to the goals and activities that you are working at.

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Linking Departmental Goals and Objectives and Employee


Performance Expectations

Corporate Goals
Functional Goals
Team Goals
Individual Goals
cascading
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Class Activity

Lets Write a few SMART performance


objectives

Performance Review

Module 5 Outline: Performance Review

The Manager's Responsibilities in the Performance Review


The Employee's Responsibilities in the Performance Review
Establishing Rapport & Being Empathic
Conducting the Review
Difficult situations (silence, disagreement, excuses)
Establishing a successful close

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The Manager's Responsibilities in the Performance Review

Providing individuals and teams with clear, constructive feedback


Defining and communicating clear performance objectives and standards
Reviewing performance and delivering incentives in a fair and consistent
manner
Providing relevant learning and development opportunities
Recognising and rewarding strong individual and team performance
Linking performance to compensation and recognition
Identifying clear career progress routes for employees

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The Employee's Responsibilities in the Performance Review

Review your past performance assessments, job description, performance


log listing, professional development activities, key job assignments, work
accomplishments, projects, and initiatives you have completed
Cite specific achievements and the value they added to your departments
mission.
Quantify them whenever possible. Think results, not just activities.
Objectively review strengths and weaknesses, candidly admitting when
things went wrong
Identify areas needing improvement and develop a plan for improving them.
Include what you need from your supervisor to help you improve
Identify professional goals for next year linking them to your departments
strategic plan.

Conducting the Review

Prepare staff for feedback; Let your team members know that the purpose
of the feedback is to recognise their significant value to your business and
help them reach their potential
Open positively; Acknowledge the strengths and contributions of team
members early in the discussion
Discuss staff performance; Focus the early part of your discussion on past
performance, then apply those learnings to future goals, planning and
performance
Provide rewards and remedies; Consider ways to solve staff problems and
reward good performance
Clarify next steps; Agree on a new or revised set of objectives
Keep good records of the discussion

Difficult situations; disagreement,

Prepare. Before heading into the review, re-read what you've written and
give some thought to how you'll respond to disagreement
Start with the positive. During the discussion, start with the higher ratings
and move toward the lower ones
Listen. figure out the source of the disagreement ask the employee to
provide specifics to support his view of his performance.
Gain understanding help the employee to understand why you evaluated
his performance the way you did

Difficult situations; excuses

Express Disappointment - Explain exactly how what he did (or didnt do)
impacted you, the team, and the company as a whole
Ask Questions - Use each excuse as a chance to dig in, ask question and
determine the root cause of the problem
Set Expectations for Next Time - Once youve sorted through explanations,
motivations, and deeper issues, set clear expectations for the future

Establishing a successful close

Discuss ideas for development/action plan. Find out what goals and plans
the employee has for their career. Discover if the employees plans and the
companys plans are in alignment or very different. Talk about the skills and
experience needed for the employee to accomplish their career goals.
Agree upon specific actions to be taken by each of you The goal is to have
a written action plan that is achievable and valuable to both parties
including deadlines.
Summarize the performance review meeting conversation and express
support Wrap-up the conversation by recapping the key discussion points,
thanking the employee for their participation, and showing your support for
the employee.
Ask for feedback. Find out if youre providing valuable support. Ask for
suggestions on ways you can improve as a manager

Class Activity

Lets Role Play

Performance Management Form

Module 6: The Performance Management Form

Determining Core Competencies

Job Analysis

Designing the form

Ratings

Determining Core Competencies

At the beginning of the review


period, the manager and
employee are responsible for
reaching a shared
understanding of the key skills
and behaviors as they relate
to the individuals job
description.

The manager is responsible


for assessing the employees
performance against the
agreed upon performance
expectations and reviewing
the assessment with the
individual

Performance that does not


meet expectations should be
addressed in the
Development Plan section of
the Performance Review.

Job Analysis

This section of the


Performance Review form is
used to record the three or
four major activities or goals
that the employee is
responsible for in their job as
well as the evaluation criteria
for these.

Evaluation criteria
encompass such
standards as impact,
timeliness, cost
effectiveness, client
satisfaction, accuracy,
consistency, etc.

The major activities


typically reflect duties
described in the job
description

During the review period,


the manager and staff
member are encouraged
to review progress in
meeting identified goals

Designing a performance management form

Identifying information; detailed information about employee

Instructions; brief instructions on what is to be done, why, and how to complete


the performance management form

Performance objectives and measures

Competencies such as team work, effective communication, and problem


solving

Rating scales to help guide and simplify the assessment process

Employee training and development plan Document the expectations for training
and development in the performance management form

Sign-off section End your form with an area for the manager's and employee's
signatures

Performance Ratings

Level 5 (E): Exceptional; Performance far exceeded expectations due to


exceptionally high quality of work performed in all essential areas of
responsibility,.
Level 4 (EE): Exceeds expectations; Performance consistently exceeded
expectations in all essential areas of responsibility, and the quality of work
overall was excellent. Annual goals were met.
Level 3 (ME): Meets expectations; Performance consistently met
expectations in all essential areas of responsibility, and the quality of work
overall was very good. The most critical annual goals were met.
Level 2 (I): Improvement needed; Performance did not consistently meet
expectations A professional development plan to improve performance
must be attached, including timelines, and monitored to measure progress.
Level 1 (U): Unsatisfactory; Performance was consistently below
expectations in most essential areas of responsibility A plan to correct
performance, including timelines, must be outlined and monitored to
measure progress.

Case Study

Lets Review a sample performance


measurement form

Developing Performance Excellence

Module 7: Developing Performance Excellence

Factors Influencing an Individual's Development


Identifying Gaps between desired and actual Performance
Creating Development Plans that work
Management and Employee Responsibilities in Development
Using the job as part of the Development Process
Getting agreement to change
Documenting Change Discussions
Coaching Employees to Peak Performance

Factors Influencing an Individual's Development

Managerial Standards Managerial standards


should be in line with the job duties outlined in the
job description outlined by human resources

Motivation; this can come in the form of financial


incentives or the opportunity to get involved in
company projects

Commitment; Commitment shown by the company


is returned in the form of commitment from
employees.

Employee Evaluations; the manager gives his


input on the employee's performance, and the
employee gets the chance to point out what she
has learned throughout the year.

Identifying Gaps between desired and actual Performance

Actual

Desired

Creating Development Plans that work

Consider your business goals; try to align their development plan with your
companys needs
Talk to your employees; have a face-to-face discussion with each of your
team members to get a better understanding of what their career goals are
and how they think they can accomplish them
Decide what skills your employees need; Be sure to your employees goals
are specific and timely
Create an action plan; Developmental programs can include a combination
of activities; formal training, reading, working directly with subject matter
experts
Apply the new skills in the workplace; Set up some opportunities where your
employees can quickly apply the new skills to the job and get feedback

Management Responsibilities in Development

Include Learners in Training and Development Planning


Provide Ongoing Feedback and Support
When Assessing Results of Employee's Learning, Maximize Feedback
About Performance
Budget Necessary Funds for Resources Learner Will Need
Supervisor and Learner Should Set Aside Regular Times for Meetings

Employee Responsibilities in Development

Make certain to master any prerequisite skills.

Talk with your manager about your desire to participate in training programs
and classes. Go into the meeting with a suggested plan of how you will get
your work done

Be responsible for taking the lead in your own career development

Using the job as part of the Development Process

Start by listing the qualifications, skills, and knowledge a specific job


requires. You are trying to create a definition of what an ideal employee in
that specific job is able to do. Write down what each skill and ability brings
to the job, and why it is necessary.
Next, list what skills most employees have when they arrive. This is not a
negative exercise in looking down on your employees; you are simply trying
to determine a baseline for a typical hire so you can better understand the
starting point for most employees.
Finally, list the gaps you see in what that ideal looks like and what most
employees historically have had upon arrival. You likely already know the
areas of strain. Think of the struggles employees have had in a specific job
in terms of productivity, customer service, and overall understanding.
Now plug the gap with an on-the-job training plan

Coaching Employees to Peak Performance


Build a Relationship of Mutual Trust

Open the Meeting in a friendly, nonjudgmental manner

Get Agreement get the employee to agree verbally that a


performance issue exists
Explore Alternatives; explore ways the issue can be improved
or corrected by encouraging the employee to identify
alternative solutions

Help the employee choose an alternative

Give continual performance feedback to employee, both


positive and corrective.

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