Annual Performance Management Timelines

Understanding the important Annual Performance Management Timelines

by Mentoring Side Up – TheoryUncategorized
Annual Performance Management Timelines

Performance Management Process is one of the most experienced processes by employees of an organization. Unlike all other HR processes, that touch an employee once or twice in a year, PMS process is an on-going and regular cycle.

Following are the key steps & timelines of this process:

  1. Goal Setting (April – May): As the financial year kicks off, employees collaborate with their managers to establish clear and measurable goals aligned with the company’s strategic priorities. These goals serve as the bedrock for the upcoming performance management cycle. Goals are set at organization, functional and employee level. The two most popular methods of Goal Setting are Balanced Scorecard and OKR Framework.
  2. Mid-Year Check-In (October – November): Around the midway point of the financial year, managers and employees conduct a performance review to assess progress towards established goals. This check-in provides an opportunity for feedback and adjustments, ensuring that employees stay on course and receive the necessary support. Typically, most organizations avoid using this time to do salary increments and/or promotions.
  3. Self-Assessment (February-March): Employees engage in a reflective self-assessment, evaluating their performance against set goals. This process encourages employees to recognize their strengths, acknowledge areas for improvement, and articulate their contributions to the organization.
  4. Performance Discussions (March-April): Managers and employees engage in formal performance discussions. These conversations provide a comprehensive review of accomplishments, challenges, and development opportunities. Clear communication during this stage is crucial for mutual understanding and alignment.
  5. Development Planning (April-May): Following performance discussions, employees and managers collaborate on personalized development plans. This phase focuses on identifying training, mentorship, or skill-building opportunities to enhance employee growth and align individual development with organizational needs.
  6. Normalization Discussions (April-May): The normalization step is a crucial addition to the performance management journey. This involves comparing and adjusting performance ratings to ensure consistency across teams and departments. It prevents biases and ensures fair evaluation by accounting for variations in managerial styles and team dynamics.
  7. Communication & Feedback (May-June): Employees are communicated about the closure of the process, their ratings and salary increments. Additionally, feedback from employees is sought through surveys and open forums, allowing them to contribute their insights to the improvement of the performance management process.
  8. Final Documentation and Reporting (May-June): The performance management cycle concludes with the documentation of performance ratings, achievements, and development plans. This information is often used for salary reviews, promotions, and strategic workforce planning for the upcoming financial year.

A well-structured annual performance management process, aligned with the financial year cycle, ensures that organizations effectively manage and leverage their human capital. By adhering to the outlined timelines, businesses can foster a culture of continuous improvement, align individual efforts with organizational objectives, and propel themselves towards success in the coming financial year.

Creating an HR Strategy for a Startup Organization

Creating an HR Strategy for a Startup Organization

 

When Coca-Cola embarked on its global expansion, it instituted fundamental principles. Each regional office was mandated to adopt locally relevant policies, yet certain key aspects were centralized. For instance, compensation structures were tailored to local norms and regulations, but consistently aimed to match or exceed the highest paying organizations in each respective area.

Expansion was a business call. Standardizing HR practices was that of HR department.

For every business objective, there needs to be an HR plan that should be created.

Here’s how we create a winning HR Strategy:

  1. Understand the Business Objectives: Meet with key stakeholders to grasp the startup’s mission, vision, and short-term/long-term goals.
  2. Conduct a Discovery Exercise: Assess the current workforce, their skills, strengths and motivators. Evaluate existing HR processes and systems.
  3. Conduct a Gap Analysis Report: Against each of these, assess which ones are going to enable the business achieve its objectives and for which certain gaps exist.
    1. People: Assess them on their-
      1. Knowledge
      2. Skills
      3. Attitude
    2. Process: How strong and effective the processes are. Important to also know if they are documented and the organization is unified in its understanding of the process steps.
  1. Create an action plan: Equip the leadership team to appreciate and commit to an action plan. Help them understand the linkage between the gaps and the desired objectives. Take their concurrence on the proposed action steps.
  2. Get Rolling: Execute the plan like a pro. Give your best. Quality wise, timeline wise. Keep your stakeholders informed of the progress and the results.
  3. Review Regularly: If you are on a long term contract with them, review the progress made on the action plan on a regular basis with the leadership team.

Navigating the Skill-Will Conundrum: A Strategic Approach in Team Dynamics

In the dynamic landscape of team dynamics, managers often grapple with the challenge of individuals who fall into various categories on the Skill-Will Matrix. From those who struggle with skills to those who resist motivation, each category demands a separate approach.

Understanding the Skill-Will Matrix:

Understanding the Skill-Will Matrix

The Skill-Will Matrix serves as a valuable tool in managerial effectiveness training, providing a framework to categorize individuals based on their skill levels and willingness (will) to perform. The matrix delineates four quadrants:

  • High Skill High Will
  • High Skill Low Will
  • Low Skill High Will
  • Low Skill Low Will

While skill-related issues are relatively straightforward to address, challenges arise when individuals exhibit high skills but low will – a scenario that demands a delicate and thoughtful approach.

HR partners play a pivotal role in managing these individuals. Recognizing the potential risk of losing such team members to regrettable attrition, HR professionals need to proactively engage and support these individuals.

Individuals with high skills and low will may be hesitant to share their concerns and challenges with their reporting managers. As HR partners, creating a trusting and safe space for open communication becomes paramount. This involves establishing a long-term and regular communication plan to understand their perspective and address their issues.

To effectively manage high skill low will individuals, HR professionals must step into the roles of coaches and advocates. By working closely with these team members, HR can bridge the gaps in motivation and engagement. Celebrating and recognizing progress is crucial in motivating individuals to transition from low will to high will.

Developing a comprehensive communication plan is essential to ensuring a sustained transformation in individuals with high skills but low will. Regular check-ins, feedback sessions, and personalized development plans can contribute to their professional growth and job satisfaction.

The declining popularity of Job Rotations: A Historical Exploration of Organizational Trends

declining popularity of Job Rotations

 

The concept of Job Rotations was once heralded as a transformative practice, fostering skill development, breaking professional stagnation, and nurturing employee growth. However, a perceptible shift has occurred in recent times, with organizations seemingly veering away from this once well-structured and encouraged intervention.

Job Rotations, as a practice, found its roots in the mid-20th century when organizations recognized the need for employees to diversify their skills and gain exposure to different functions within the company. The concept was formalized as a strategic approach to combat stagnation and employee dissatisfaction, offering a structured mechanism for career growth.

During the heyday of Job Rotations, organizations invested significantly in planning and implementing this intervention. Employees were encouraged to undertake rotations that would broaden their horizons, enhance their skill sets, and provide a holistic understanding of various business functions. This strategic approach aimed not only to benefit individual careers but also to fortify the organization by nurturing a versatile and skilled workforce.

But now, not many organizations use it as a strategic talent management intervention. The decline in the popularity of Job Rotations can be attributed to several factors that have reshaped the organizational landscape:

  • Reduced Employee Tenure: The average tenure of employees has witnessed a decline, making it challenging for organizations to invest in long-term developmental initiatives like Job Rotations.
  • Performance Extraction Over Career Building: A shift in organizational priorities towards immediate performance extraction rather than long-term career building has altered the focus of HR practices.
  • Ease of Skill Building in Current Roles: Advancements in training partnerships and online courses have made skill-building within current roles more accessible, reducing the perceived necessity of Job Rotations.
  • Lean HR Teams and Short-Term Focus: Lean HR teams, burdened with additional responsibilities such as regular reviews and reporting, often prioritize short-term gains over long-term interventions like Job Rotations.
  • Changing Definition of Talent: The evolving definition of talent has led functional managers to favour buying talent over investing in prolonged developmental programs.
  • Employee Risk Aversion: Employees, cognizant of organizational flux and changing priorities, may be hesitant to undertake career risks that yield results only after a few years.

Crafting Tailored Excellence: A Theoretical Approach to Implementing Performance Management in an Established Organization

Crafting Tailored Excellence

 

The journey of implementing a Performance Management System (PMS) is a critical juncture for organizations, demanding a specific approach that goes beyond mere industry best practices. I recently worked with an organization where the founders wanted to introduce performance management process. It is an 18-year-old organization, with more than 500 employees, appx 300 of which are blue-collared.

My gut & experience gave me the confidence of knowing exactly what needs to be done. But I refrain from drawing any conclusions. I open a blank page of my diary and ask the following questions to the founders:

  • What is the current Performance Management process in the organization?
  • How are goals/targets/expectations currently communicated to individuals?
  • What challenges are observed with the current process?
  • What does Performance mean to you?
  • What is the accepted meaning of the term performance within the organization?
  • What behaviors do you wish to drive in your teams with a PMS process?
  • How would these behaviors contribute to the organization’s goals?
  • How would the Performance Management System align with the company’s strategic objectives?
  • What challenges do you foresee with the implementation of a PMS framework?
  • What reward mechanism do you wish to link with performance achievement?
  • Are there any specific technologies or tools you envision integrating into the performance management process?
  • How tech-savvy is your workforce, and how open are they to adopting new technologies?
  • Any specific inputs you want me to consider in the PMS framework?

By approaching the founders with these targeted questions, I got inputs and data points that made my approach to PMS implementation extremely specific to this organization.

Implementing a Performance Management System is not a one-size-fits-all endeavor. A theoretical underpinning, rooted in thoughtful inquiry and a deep understanding of organizational intricacies, is essential. By embracing this approach, HR professionals can navigate the complexities of introducing a PMS, ensuring it is not only scientifically robust but also finely tuned to the distinctive dynamics of the organization.

 

HR Strategies

HR Strategies for Cultivating Managerial Success and Building a Positive Work Culture

by HR Side Up - Theory

 

HR Strategies

Andy, a recent graduate, joined our team with a spark that caught our attention. Eager to learn, he showcased excellent communication skills and creativity in presentations. However, as time passed, it became apparent that Andy struggled with timely execution, often placing blame on new team members for delays and inefficiencies.
As his manager, the choices would be to:

  1. Ignore Shortcomings: Some managers might choose to turn a blind eye to Andy’s shortcomings, focusing solely on the positive aspects of his performance.
  2. Provide Feedback and Targets: A proactive approach involves giving constructive feedback, setting specific targets for improvement, and providing support until ownership is built in his work. If improvement doesn’t occur, further steps might be considered, such as suggesting he leaves the role or exploring opportunities in other teams.
  3. Re-align Responsibilities: Another option is to re-align Andy’s responsibilities, shifting towards more strategic activities that leverage his strengths in thinking and creativity.

Human Resources Perspective:

As an HR professional, it is our job to equip the Manager to make the right choice in a manner that aligns with both individual growth and organizational objectives.

  1. Establishing Alignment: Managers need to align talent with the strategic objectives of the organization. This involves open conversations with employees to understand their aspirations and map them to the organization’s goals. If execution is a key need for the success in this organization, then Andy needs to buckle up.
  2. Long-Term Employee Growth: Employee growth should be viewed from a long-term perspective. Focusing solely on weaknesses can demotivate individuals. Providing a holistic perspective on the importance of various skills, including execution, can inspire employees to work on their shortcomings. The silver lining- Managers need to be encouraged to look at the positives of every employee.
  3. Understanding Team Dynamics: Team dynamics play a pivotal role, especially with high-visibility employees like Andy. Managerial decisions can shape the team’s behavior and future dynamics. HR professionals should guide managers to consider the broader impact of their choices on team morale and anxiety.
  4. Supporting Managers: HR’s role is to support functional managers in navigating challenging situations. By offering guidance, facilitating communication, and providing resources for skill development, HR contributes to the creation of a positive work culture.

The Andy dilemma is not unique, and managers often find themselves at crossroads when dealing with contrasting strengths and weaknesses in team members. HR professionals play a crucial role in ensuring that decisions align with both individual development and organizational goals. By fostering open communication, encouraging a long-term perspective on growth, and understanding team dynamics, HR contributes to building a positive work culture that promotes continuous improvement and development.

Navigating Performance Management Setbacks

Navigating Performance Management Setbacks

In the journey of a young HR professional, setbacks can be valuable lessons that shape not only individual growth but also organizational practices. This post recounts a pivotal experience where an Outstanding-rated employee faced the unexpected challenge of being put on a Performance Improvement Plan (PIP). The aftermath of this incident prompted a re-evaluation and reinforcement of the entire performance management system.

The Setback:

As the COE/SME of performance management for my unit, I found myself in the midst of a challenging situation. An employee, initially rated Outstanding, was placed on a Performance Improvement Plan. The shock and disbelief in the room during the ensuing meeting with functional stakeholders was my first experience of such kind.

The Organizational Response:

Organizational Response

Post this incident, the organization embarked on a mission to fortify the discipline around each step of the performance management process. The lessons I learned led during that exercise, enables me to bring to you a set of recommendations:

  1. Consistent Communication: Regular and clear communication around the organization’s PMS philosophy, process, and policy should be disseminated to all employees. This ensures transparency and understanding of the expectations.
  2. Define Desired Performance Levels: The target-setting process should explicitly define the desired performance level for each rating, minimizing ambiguity and aligning expectations.
  3. Feedback Throughout the Year: Regular feedback and developmental inputs should be provided to employees throughout the year, fostering a culture of continuous improvement.
  4. People Manager Orientation: Conduct orientation and development interventions for people managers to ensure they are equipped to conduct fair and accurate assessments.
  5. Document Performance Evaluations: Performance evaluations should be thoroughly documented, providing a comprehensive record of an employee’s contributions and areas for improvement.
  6. Dual Evaluation Process: Both the employee and the reporting manager should actively participate in the performance evaluation process, promoting a two-way dialogue.
  7. One-on-One Conversations: HR teams, whether HRBP or PMS COE, should engage in one-on-one conversations with functional heads regarding both the highest and lowest raters in the team.
  8. Thorough Evaluation Notes: HR teams should prepare detailed notes and reasoning for the highest raters. These notes should encompass stakeholder feedback, performance history, and key initiatives undertaken during the year.
  9. Review by HR Head: The HR Head should review the performance ratings before the calibration process, ensuring alignment with organizational objectives.
  10. Calibration Process: A calibration process should involve all functional stakeholders in a room, collectively discussing each case of the highest and lowest ratings, along with promotion cases.
  11. Leadership Sign-Off: The CEO or the Head of the Business should sign off on the ratings of the year, reinforcing the commitment to the integrity of the process.

The PMS process is not just a set of steps but a crucial factor in shaping the culture of an organization. This case study emphasizes the importance of diligence and consistency in performance management practices. Ensuring the effectiveness of this process is essential, as one misstep can potentially derail the organization’s efforts in attracting and retaining top talent. By implementing these recommendations, HR professionals can contribute to the creation of a robust and fair performance management system that aligns with organizational goals.

Learning from Mistakes: A Case Study on Employee Engagement Surveys

Learning from Mistakes

Early in my second year of corporate tenure, I found myself unintentionally causing a significant disruption in our Human Resources department’s employee engagement score. This case study reflects on a pivotal learning experience that shaped my understanding of the impact of employee engagement surveys on team dynamics.

The Setting:

Our team of 12 HR professionals was exceptionally well-bonded, guided by an outstanding Head of Department (HOD). To manage his span of control, the HOD introduced Senior Managers, including an external hire, altering our reporting structure. The team dynamics changed, and the new Senior Manager’s presence began to bother many of us.

The Misstep:

During the annual Gallup Q12 survey, I, along with the entire team, seized the opportunity to express our frustration with the new Senior Manager. Without thoroughly understanding the questions, I marked them all low, inadvertently dragging down our department’s overall score.

The Consequences:

The results were shocking. Despite being the closest-knit team, our Human Resources department had the lowest Gallup score in the entire business unit. Our friendships endured, but the shared sense of achievement was tarnished. The survey results questioned everything we had built together, and the whole business unit seemed to be laughing at us.

The Learning:

This experience taught me a critical lesson: using one platform to address unrelated issues is detrimental. A single misstep can mar the collaborative landscape that would otherwise have been a testament to teamwork.
Key Recommendations for Employee Engagement Surveys:

  1. Pre-Survey Communication: Conduct pre-survey communication sessions with teams to set expectations and clarify the purpose of the survey.
  2. Shared Meaning Alignment: Discuss and align on the shared meaning of survey questions. Define terms to ensure a common understanding among team members.
  3. Results Explanation: Clearly explain what happens with the survey results, emphasizing that it is a tool for improvement, not a platform for venting frustrations.
  4. Regular Feedback Opportunities: Provide regular opportunities for employees to share concerns and feedback with HR and managers, preventing the survey from becoming a venting outlet.
  5. Results Sharing: Transparently share survey results with teams, fostering open communication and trust.
  6. Action Plan Creation: Collaboratively create action plans based on survey feedback, ensuring that employees feel heard and involved in the improvement process.
  7. Action Plan Implementation: Implement the action plans diligently, demonstrating a commitment to positive change.
  8. Status Updates: Regularly share the status of action plans with teams, keeping them informed and engaged in the improvement journey.
  9. Follow-Up Discussions: Conduct follow-up discussions in smaller groups to understand if there are additional concerns or improvements needed.

This case underscores the significance of thoughtful engagement with employee engagement surveys. The experience highlighted the need for strategic communication, shared understanding of survey questions, and a robust action plan to address concerns. As HR professionals, it is crucial to approach surveys not as mere data collection tools but as catalysts for positive change within the organization.

CEO Appraisal Dilemma: A Case Study on Aligning Principles and Stakeholder Needs

CEO Appraisal Dilemma

Embarking on a performance management implementation project with a new client is an exciting yet challenging endeavour. Here’s my experience where a seemingly smooth project took an unexpected turn during discussions on the CEO’s appraisal process.

The Challenge:

As an HR professional leading the performance management system (PMS) implementation, I encountered a setback when discussing the steps of the CEO’s appraisal process. The CEO expressed a strong reluctance to involve the Board in his assessment, citing a belief that they lacked a deep understanding of his day-to-day responsibilities. Instead, he insisted on having his direct reports evaluate his performance.

Identifying Gaps in the Approach:

Recognizing the major gaps in this approach, particularly from an experienced HR perspective, became imperative:

  1. a) The Board, responsible for setting organizational goals, should be involved in the CEO’s appraisal process.
  2. b) Mixing the appraisal and feedback processes by involving direct reports creates potential bias.
  3. c) Direct reports’ assessments, typically done by the CEO, may result in inaccurate evaluations.
  4. d) The PMS philosophy should be consistent for all participants, including the CEO, aligning with agreed-upon steps.

Navigating Intense Conversations:

What followed were intense conversations between the CEO and me. Despite his adamant stance against sharing his assessment with the Board, I, as an HR consultant, was firm in my belief that the Board’s involvement was crucial for a comprehensive CEO appraisal.

Leveraging Communication and Stakeholder Management:

Leveraging Communication and Stakeholder Management

In navigating these stressful days, my communication and stakeholder management skills were put to the test. I communicated the importance of aligning the CEO’s appraisal with organizational goals and principles. While risking the possibility of losing the client, I maintained a commitment to HR ethics and principles.

Finding Middle Ground:

After extensive discussions, the CEO agreed to share his assessment with the Board. To address concerns about feedback accuracy, we also decided to conduct a 360-degree feedback process to gather developmental inputs.

Signing Contract Extension:

Three months after the challenging phase, I signed an extension of my contract with the CEO, marking the resolution of the dispute. This experience offered valuable insights and learnings for both parties involved.

Key Learnings:

  1. Solid Foundation in HR Concepts: Upholding HR ethics and principles is crucial, even if it means potential financial implications.
  2. Understanding Stakeholder Needs: Recognizing and addressing stakeholders’ needs while maintaining a solid ethical base is key to successful project outcomes.
  3. Leveraging Soft Skills: Soft skills, including effective communication and stakeholder management, play a pivotal role in navigating challenging conversations.
  4. Role Playing Tough Conversations: Preparing for tough conversations through role-playing helps in being well-equipped for the actual interactions.
  5. Mentor Consultation: Seeking perspectives from mentors provides valuable insights and alternative viewpoints that may not have been considered.

Conclusion:

This example will give you an understanding how complex the implementation of performance management systems can get for HR professionals. By staying true to HR principles, understanding stakeholder needs, and leveraging effective communication and soft skills, HR professionals can navigate challenges and contribute to successful project outcomes.

Coaching and Mentoring

Navigating Career Aspirations: The Dual Role of Coaching and Mentoring

by Coaching Side Up – TheoryMentoring Side Up – Case Studies

 

Coaching and Mentoring

In the journey of professional growth, individuals often encounter obstacles that require guidance and support. Sarah, an aspiring HR professional aiming for the role of an HR Head, found herself facing challenges in cracking interviews despite her qualifications. Frustrated and seeking assistance, she reached out to me, offering the opportunity to explore two distinct paths – coaching and mentoring.

Understanding the Distinction:

As Sarah poured out her concerns, it became evident that she needed assistance in honing specific skills, particularly in strategic thinking and managing ambiguity. The challenge was not just about skill development but also about effective communication during interviews and overcoming self-doubt.

The Coaching Approach:

In the coaching scenario, I acted as a facilitator, allowing Sarah to express her concerns and preferences. I focused on active listening, acknowledging her need to work on articulation, strategic thinking, and managing ambiguity. By asking open-ended questions, I empowered Sarah to choose the area she wanted to address first – in this case, her self-doubt.

This approach allowed her to take ownership of her development journey.

The Mentoring Approach:

Mentoring Approach

Conversely, in the mentoring scenario, I provided more direct guidance based on my experience and expertise. Acknowledging Sarah’s need to enhance specific skills, I suggested working on either strategic thinking or managing ambiguity. This approach offered a more structured direction, leveraging my insights to guide her towards the desired outcome.

Understanding the Difference:

The crucial distinction lies in the interaction dynamics. While coaching centers around active listening, questioning, and empowering the individual to find their solutions, mentoring involves sharing knowledge, providing guidance, and offering a more directive approach.

The Lesson Learned:

Lesson Learned

Expecting both coaching and mentoring in one discussion can be akin to two fielders running towards a catch and missing it due to miscommunication. It emphasizes the importance of understanding when to listen and empower (coaching) and when to guide and share experiences (mentoring).

Conclusion:

In the complex realm of career development, the interplay between coaching and mentoring offers a versatile toolkit for individuals seeking growth. Sarah’s journey highlights the significance of recognizing which approach suits the immediate needs – whether it’s active listening and empowerment or direct guidance and knowledge sharing.

The synergy between coaching and mentoring creates a powerful support system, ensuring that professionals like Sarah navigate their career aspirations with clarity and purpose.