Human Resource and Labor Laws - c.ymcdn.com Resource and Labor Laws. ... True\爀屲 Career...
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Human Resource and Labor Laws
Human Resource and Labor Laws - c.ymcdn.com Resource and Labor Laws. ... True\爀屲 Career developmen\൴ primarily applies to managers. ... changes in the person’s interests, abilities,
About your SpeakerMichelle has been working in the human resource profession for over 20 years and is the founder and owner of HR Synergy, LLC. HR Synergy, LLC provides outsourced Human Resource consulting services to small to mid-size businesses. Michelle is a member of the Society for Human Resource Management, Greater Nashua Human Resource Association, Massachusetts Non-Profit Network, Greater Manchester Chamber of Commerce.
Michelle serves on the Board of Directors for the NH State HR Council, and volunteers for Families in Transition and New Horizons.
Michelle is an avid believer that to hold employees accountable for meeting expectations the employer has a responsibility to clearly define the expectations.
Michelle Gray, President and Founder
Today's Session
• Most Common Labor Violations Cited by DOL
• Hiring Practices
• Employee Development
• Performance Management Systems and Performance Appraisals
How to keep your Employer off the
Department of Labor’s (DOL)
Top 10 Violations Report
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Trying to keep up with all of the regulations can make you want to pull your hair out!
Presenter
Presentation Notes
As a business owner with employees there are many recordkeeping and reporting requirements to ensure compliance with federal and state labor laws.
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The dangers for noncompliance wage laws are higher than ever before.
Employers need to pay attention to these if they want to avoid being on these DOL nonconforming lists.
Presenter
Presentation Notes
Although many business owners believe they are not at risk because they are too small and the DOL has bigger fish to fry or believe that because the DOL has never bothered them before so they have nothing to worry about. Owners want to rethink their position on being compliant to be proactive instead of reactive. The Department of Labor has increased the number of inspectors to hone in on compliance issues.
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Fair Labor Standards Act Enforcement Statistics
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Let’s get started with the
Top 10 Department of Labor
Violations for 2016
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# 10 Failure to have a written safety plan, joint loss committee and safety summary form filed biennially, as required.
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# 9 Failure to secure and maintain worker’s compensation coverage and misclassification of employees
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# 8 Illegal deductions from wages
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# 7 Failure to pay minimum wage for all hours worked
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# 6 Illegal employment of workers under 18 (not having proper paperwork, hours violations, or working in hazardous environments)
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# 5 Failure to pay minimum pay at their regular rate of pay on a given day that an employee reports to work at the request of the employer.
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# 4 Failure to pay all wages due for hours worked, fringe benefits, breaks less than 30 minutes
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# 3 Employing illegal Aliens (not having proper documentation for authorization to work in the United States)
# 2 Failure to provide written notice to employees of their wage rate, pay period, pay day and a description of fringe benefits, including any changes.
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Can you guess what the
# 1 violation is?
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# 1 Failure to keep accurate records of all hours worked
Break
Hiring Practices
Overview
• Federal labor laws that apply to hiring practices• Steps for an effective hiring process
• Title VII of the Civil Rights Act (15 employees)• Civil Rights Act (all employers)• Age Discrimination in Employment Act (20 Employees)• American with Disabilities Act (15 employees)• Fair Labor Standards Act (1 employee)• Fair Credit Reporting Act • Immigration Reform and Control Act (1 employee)• Pregnancy Discrimination Act (15 employees)• Uniform Services Employment and Reemployment Rights
Act (all employers)
Steps for Implementing a Hiring Process
1. Define the position2. Recruit candidates3. Prescreen applicants4. Develop structured interviews5. Execute interview follow-up6. Conduct pre-employment testing7. Make a hiring decision8. Extend a job offer9. Conduct pre-employment, post-offer background
check10. Employee complete Form I-911. Complete new hire reporting12. Comply with federal and state requirements and
guidelines
Define the Position
• Review existing job description• Conduct ADA analysis• Determine exempt vs. non-exempt status
Recruit Potential Candidates
• Employment advertisements• What to include?• Tips to avoid discrimination
• Other recruitment sources
Prescreen Applicants
• Resume and application review• Telephone screening
Develop Structured Interviews
• Prepare for the interview• Questions candidates MAY and SHOULD NOT be
asked• Sample interview questions• Interview dos and don’ts
necessary and permitted by federal and state regulations
Conduct Pre-Employment Testing
There are important points to remember if you conduct pre-employment testing!
Make a Hiring Decision
• The decisions to hire must be based on job-related factors
• Reasons for NOT selecting a candidate…
Extend a Job Offer
• Present the job offer to the candidate• Confirm in writing• Inform unselected applicants• Be sure your job offer does not create a contract
Pre-Employment, Post-Offer Background Check
• Comply with the Fair Credit Reporting Act• Background checks must be
• job-related• completed post job offer
Form I-9
The Immigration Reform and Control Act requires that all employees complete the Form I-9 on the first day of work to verify identity and work authorization.
Complete New Hire Reporting
Under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P0RWORA), all employers must report certain information on their newly hired employees.
• Ending welfare as an entitlement program;• Requiring recipients to begin working after two years of receiving benefits;• Placing a lifetime limit of five years on benefits paid by federal funds;• Aiming to encourage two-parent families and discouraging out-of-wedlock
births;• Enhancing enforcement of child support; and• Requiring state professional and occupational licenses to be withheld from
• Certain records should be retained for at least one year from the date of the personnel action to which the records relate.
• Certain records should be retained for longer periods of time.
• State laws may be more stringent.
Break
Employee Development
What is?
• Employee development: The combination of formal education, job experiences, relationships, and assessment of personality and abilities to help employees prepare for the future of their careers.
• Development is about preparing for change in the form of new jobs, new responsibilities, or new requirements.
Presenter
Presentation Notes
Today we will explore the purpose and activities of employee development.
Training versus Development
Presenter
Presentation Notes
Development implies learning that is not necessarily related to the employee’s current job. It prepares employees for other positions in the organization and increases their ability to move into jobs that may not yet exist. In contrast, training traditionally focuses on helping employees improve performance of their current jobs. Here you can see a summary of the traditional differences.
Let’s Test our Knowledge
• Significant Developments: True (A) or False (B)?
• There are more horizontal “ladders” in middle management than upward moves.
• Companies focus on employee’s career steps rather than their core competencies.
• Careers are now more a series of projects, rather than upward steps in an organization
• Career development primarily applies to managers.
• The organization manages employee’s careers more so than the individual.
• The average 32-year old has already worked for 7 different firms.
Presenter
Presentation Notes
There are more horizontal “ladders” in middle management than upward moves. True Companies focus on employee’s career steps rather than their core competencies. False – focus is on core business competencies and therefore, fostering those in their employees. Careers are now more a series of projects, rather than upward steps in an organization – True Career development primarily applies to managers. False – Now focus needs to be on all employees because fewer of them have direct managerial control but are rather parts of a team or workgroup. The organization manages employee’s careers more so than the individual. – False, the individual really needs to take control over their career and when you have skills that are in demand, you have more flexibility to change jobs to those that fit your lifestyle. The average 32-year old has already worked for 7 different firms. - True
Development for Careers
• Protean career: A career that frequently changes based on changes in the person’s interests, abilities, and values and in the work environment.
• To remain marketable, employees must continually develop new skills.
Presenter
Presentation Notes
During the recession changes such as downsizing and restructuring have become the norm, so the concept of a career has become more fluid than the traditional view. Today’s employees are likely to have a protean career, one that frequently changes based on changes in the person’s interests, abilities, and values in the work environment.
Four Approaches to Employee Development
Formal Education
AssessmentJob Experiences
InterpersonalRelationships
Presenter
Presentation Notes
The many approaches to employee development fall into four broad categories: Formal education Assessment Job experiences Interpersonal relationships. This chart summarizes these four methods. Many organizations combine these approaches.
Approaches to Employee Development
Formal Education Assessment
• These may include:• Workshops• Short courses• Lectures• Simulations• Business games• Experiential programs
• Many companies operate training and development centers.
• Collecting information and providing feedback to employees about heir behavior, communication style, or skills.
• Information for assessment may come from the employees, their peers, managers, and customers.
Presenter
Presentation Notes
Organizations may support employee development through a variety of formal educational programs, either at the workplace or off-site. Another way to provide for employee development is assessment.
• One way to develop employees is to begin with an assessment which may consist of assigning an activity to a team and seeing who brings what skills and strengths to the team.
Presenter
Presentation Notes
Ask the students: “How can this assessment help employees?”
Assessment Tools
Myers-Briggs Type Indicator (MBTI)®
Assessment Centers
Benchmarks Assessment
Performance Appraisal
360-Degree Feedback
Presenter
Presentation Notes
Organizations vary in the methods and sources of information they use in developmental assessment. The tools used for assessment include those listed on this slide.
Myers-Briggs Type Indicator (MBTI)®
• It is a psychological test that identifies individuals’ preferences for source of energy, means of information gathering, way of decision making, and lifestyle, providing information for team building and leadership development.
• This is the most popular test for employee development.
• The assessment consists of more than 100 questions about how the person feels or prefers to behave in different situations.
Assessment Tools (continued)
Assessment Tools (continued)
Assessment Centers Benchmarks
An assessment process in which multiple raters or evaluators (assessors) evaluate employees’ performance on a number of exercises, usually as they work in a group at an offsite location.
A measurement tool that gathers ratings of a manager’s use of skills associated with success in managing.
Performance appraisals can be useful for employee development under certain conditions:
1. The appraisal system must tell employees specifically about their performance problems and ways to improve their performance.
2. Employees must gain a clear understanding of the differences between current performance and expected performance.
3. The appraisal process must identify causes of the performance discrepancy and develop plans for improving performance.
Assessment Tools (continued)
Presenter
Presentation Notes
Managers must be trained to deliver frequent performance feedback and must monitor employees’ progress in carrying out their action plans.
360-degree feedback can be used for development purposes:
1. The rater would identify an area of behavior as a strength of the employee or an area requiring further development.
2. The results presented to the employee show how he or she was rated on each item and how self-evaluations differ from other raters’ evaluations.
3. The individual reviews the results, seeks clarification from the raters, and sets specific development goals based on the strengths and weaknesses identified.
Assessment Tools (continued)
Interpersonal Relationships
• Interpersonal relationships: employees can also develop skills and increase their knowledge about the organization and its customers by interacting with a more experienced member:
• Mentoring• Coaching
Steps and Responsibilities in the Career Management Process
Presenter
Presentation Notes
Employee development is most likely to meet the organization’s needs if it is part of a human resource system of career management. As shown, a basic career management system involves four steps: Data Gathering Feedback Goal setting Action planning & Follow-up At each step, both the employee and the organization have responsibilities. The system is most likely to be beneficial if it is linked to the organization’s objectives and needs, has support from top management, and is created with employee participation.
Development-Related Challenges
Glass Ceiling
• Circumstances resembling an invisible barrier that keep most women and minorities from attaining the top jobs in organizations.
Succession Planning
• The process of identifying and tracking high-potential employees who will be able to fill top management positions when they become vacant.
Dysfunctional Managers
• A manager who is otherwise competent may engage in some behaviors that make him or her ineffective or even “toxic” –stifles ideas and drives away good employees.
Presenter
Presentation Notes
A well-designed system for employee development can help organizations face three widespread challenges: The glass ceiling Succession planning Dysfunctional behavior by managers
Employee Development Summary
• Employee development is the combination of formal education, job experiences, relationships, and assessment of personality and abilities to help employees prepare for the future of their careers.
• Training is more focused on improving performance in the current job, but training programs may support employee development.
Summary (continued)
• In modern organizations, the concept of a career is fluid – a protean career that changes along with changes in a person’s interests, abilities, and values and changes in the work environment.
• To plan and prepare for a protean career requires active career management, which includes planning for employee development.
• Assessment can help the organization identify employees with managerial potential or identify areas in which teams need to develop.
• Assessment centers combine a variety of methods to provide assessment information. Managers must share the assessments, along with suggestions for improvement.
• Job experiences contribute to development through a combination of relationships, problems, demands, tasks, and other features of an employee’s jobs.
• Organizations can ensure that women and minority employees receive access to development resources such as coaches and mentors.
Summary (continued)
• For dysfunctional managers who have the potential to contribute to the organization, the organization may offer development targeted at correcting the areas of dysfunction.
Summary (continued)
Break
Performance Management and Appraisal
Presenter
Presentation Notes
Start by asking students if they have ever had a performance review. A few will probably raise their hands. Also, ask if any of them have been in a position to conduct a review on another employee either in a management position or as a peer reviewer. This will result in fewer raised hands or maybe none. Ask students to express their feelings about the appraisal process. There may be a few who say it was a good process, but mostly performance appraisals are mostly viewed negatively by managers and employees, and this is probably what you will hear from your students. Acknowledge the negative and tell them that their feelings are common. This is your opportunity to tell them that a performance review is just one part of a performance management process. It is a process that involves goal setting and employee growth for the enhancement of the employee and the organization. When done properly, it is a positive experience. How it can be done is what this class is about.
Learning Objectives
• At the end of this module, you will should be able to:
Relate individual performance appraisal to the organization wide performance management process.
Identify a variety of appraisal methods.Understand your role in the performance management
process.Revise performance appraisal statements.Practice performance appraisal interviewing techniques. Have the skills necessary to use the performance appraisal
process as a positive enhancement to employee performance.
Presenter
Presentation Notes
Discuss the learning objectives for this module. In light of the negative reactions most managers and employees have to performance appraisals, the most significant objective for this class may be the last one listed here. At the end of this module, students will have the skills to turn the negatives of performance appraisals into a positive experience for managers and staff
Performance management is a goal-oriented system to ensure that organizational processes exist to maximize the productivity of employees, teams and, ultimately, the organization. A performance appraisal is a formal system of review and evaluation of individual or team performance. Performance management is an ongoing organizational process that is conducted to maximize the productivity of employees with the overall intention of improving the organization’s effectiveness. It is strategic in nature and involves every person and all HR processes in the organization. All are directly tied to achieving the organization’s goals.
Performance Management and Performance Appraisal (continued)
Performance Appraisal:• Periodic (usually annual) event.• Formal review.• Last step in performance management process.
Presenter
Presentation Notes
The performance appraisal is a periodic event to reflect and evaluate past performance with the intent to identify strengths and weaknesses of an employee’s performance and to identify developmental goals. A performance appraisal is just one part of a performance management system.
Performance Management Goals
• Communication between supervisor and employee.
• Feedback on performance.• Documentation.• Development Goals.• Alignment with strategic planning goals.
Presenter
Presentation Notes
Performance management is not a one-time event but a continuous process. It should align with the organization’s strategic goals and require open communication among managers and staff. It provides time for formal feedback, but employees should receive continuous feedback from their supervisors and not just at review time.
These are the steps in the performance management process. �An important concept of performance management is that it is a continuous process characterized by open communication between employees and supervisors in which feedback is exchanged and coaching is given if needed. The second concept is a clear identification of the link between employees’ contributions and organization’s goals. When we talk about Pre-Requisites this is normally a process that would be completed by management and not include the employee. First, strategic planning must be completed because the performance management process builds on an organization’s goals. Once organizational goals are established, employee goals cascade from there. Remember, an important objective of the performance management process is to enhance employees’ contributions to the organization’s goals. The second prerequisite is a thorough understanding of the job. This is done through job analysis. If it has been some time since a job analysis was conducted for a position, it may be necessary to conduct a new analysis before starting the performance management process. If you are working with job descriptions that read like the last century, it’s time to update them if you expect to be successful in today’s highly competitive, technology-driven workplace. Once strategic planning goals are established and the job analysis information is current, the performance management process can begin.
Performance Planning
• Employees must have thorough knowledge of the performance management system.
• Meeting between employee and manager.• Set goals and measurement standards:Results.Behavior.Developmental plans.
Presenter
Presentation Notes
Once the prerequisites are in place, the next step in the process is performance planning where the organization establishes the criteria and expectations for employee performance. Supervisors must communicate this to employees in such a way that everyone understands the expectations. It would not be appropriate to expect outstanding performance from employees if they had no idea how the organization describes and measures outstanding. Clear communication is a central part of the performance management process. In this step, the manager and employee together identify what needs to be done and how it will be accomplished. This includes consideration of results and appropriate behaviors to accomplish tasks. The supervisor and the employee must agree on the objectives to be accomplished. These are the specific outcomes the employee is expected to achieve. Outcomes must include specific, measurable performance standards. Use the SMART acronym to write appropriate objectives. SMART stands for specific, measurable, attainable, realistic and timely. Instructor’s Note: If students are not familiar with SMART goal setting, some additional discussion may be needed here. Remind students that goals set using SMART guidelines are more likely to be achieved than those without SMART principles. Example: Poorly written objective: Increase widget production. This objective sounds like a good goal, but it is so illusive that employees would not know how to accomplish the task and certainly no way to measure its accomplishment. SMART objective: Control product defects to increase annual widget production by 5 percent while maintaining current budget and specification levels. This objective fits the SMART formula. It’s specific. It tells employees what the end result should be–a 5 percent increase in production. It tells employees what to work on–product defects. It identifies the time period–one year. Finally, it gives measurable parameters for accomplishment–within budget and specifications. The objective is specific, measurable, attainable, realistic and timely. Just as results are important to successful performance, so too are behaviors. Results–“Did the employee accomplish the tasks?” Behaviors–“How did they do it?” Behaviors include competencies as well as traits like teamwork, leadership and communication. If employees accomplish their tasks but they are horrible to work with and have alienated their entire department–that’s not a good outcome! Open communication, working with a team and meeting deadlines so other staff members can accomplish their parts of the process are all areas that should be addressed in the performance review. The last part of the performance plan is to establish employee developmental goals. If there are areas that need improvement, they should be identified and plans made to correct the deficiency. Even without needed improvement, though, employees need an opportunity to grow in their careers and to learn new skills. Improvement plans should be identified and progress toward goals measured as part of the review process. Employee growth adds value not only to the employee personally but to the employee’s manager and to the organization as a whole.
Performance Execution
Shared responsibility
• Employee responsibility:Commitment to established goals.Communication and update with manager.
• Manager responsibility:Feedback, coaching and reinforcement.Resource support.Accurate observation and documentation.
Presenter
Presentation Notes
Accomplishing objectives is a shared responsibility between the employee and manager. It requires both to be committed to achieving the desired results. If the objectives are set by the manager only and the employee doesn’t agree, successful accomplishment is unlikely. If there is disagreement on goals, negotiation and compromise must occur; no progress can be made unless everyone is on the same page. Success also requires open, ongoing communication between the manager and employee. A manager who sets goals for the employee and then walks away and doesn’t check to see if goals are being accomplished until the next review period is setting the employee and the organization up for failure. The manager is responsible for giving feedback to the employee, coaching and encouragement when needed and praise when things are going well. The employee is responsible for communicating progress to the manager and keeping the manager informed of any deviation from timelines, budgets or other problem areas. The manager is responsible for providing the employee with resources needed to successfully complete the task. This is where the “R” part of the SMART acronym comes into play. It is not realistic to expect high-level performance from an employee if he or she is not given the necessary resources to make it happen. If resources are unavailable–there is simply not enough time, money or supplies–this must be taken into consideration when the objectives are set. Because the manager plays a key role in the assessment process, the manager must be aware of the employee’s work. It is the manager’s obligation to provide accurate observation and documentation of the employee’s accomplishments. A manager should never review an employee if that employee’s work is not known to the manager.
Performance Assessment and Appraisal
• Who should appraise?• Supervisors.• Peers and team members.• Subordinates.• 360 degree feedback.
Presenter
Presentation Notes
This is a good time for class discussion. Ask students to suggest some advantages and disadvantage of using multiple raters. What about the possibility of skewed appraisals from co-workers? Sometimes employees give high ratings to friends and poor ratings to those they dislike. How would a manager know if peer ratings are accurate? Under what circumstances are raters likely to provide honest feedback? In the traditional appraisal process, employees are appraised by their supervisors only. It is assumed that the supervisor is the best person to know and assess the employee’s work. This worked well when employees worked in the office with their supervisor, allowing for easy observation of performance. Technology now enables employees to work at various locations, often at sites separate from their managers. This has increased the need for evaluation from peers, customers and co-workers. Consequently, many organizations have moved away from a single-rater appraisal process to a multiple-appraisal system where employees receive feedback from a variety of sources, although supervisors are still likely to be key components of the process. In many organizations, staff members conduct appraisals for managers as well. The most extensive appraisal results from a 360-degree feedback process. In this system employees receive an appraisal from people both in the organization and outside the organization as well. In 360-degree feedback process, a retail salesclerk would receive an appraisal from his supervisor, peers (other salesclerks), managers of other departments or inventory personnel in the organization, as well as appraisals from customers and vendors employed outside the organization. The advantage of this system is that employees receive the widest possible range of feedback and the appraisal is less likely to be skewed by one person in the event of a personality clash or favoritism. One disadvantage of this system is its scope. With many people involved, the system becomes costly and time-consuming to administer. Most organizations have settled with systems somewhere in the middle–not as extensive as a 360-degree feedback but not simply one appraisal from the supervisor.
What About the Employee?
Should employees do self-appraisals?
Presenter
Presentation Notes
This is a good place to ask students to discuss whether employees should do self-appraisals. Ask if any of them have done a self-appraisal where they work and if so, ask them to discuss their experiences. Performance management requires that managers and the employees take responsibility to evaluate the extent to which desired behaviors have been demonstrated and whether the desired results have been achieved. In the past, the performance appraisal was simply a process of the supervisor passing judgment on the employee’s work and then presenting the judgment to the employee--much like a courtroom judge rendering a verdict and a sentence. This was not a satisfying process for either the employee or the manager. Adding employee self-ratings to the process can help identify discrepancies between the views of the manager and the employee and can often point out areas for development opportunities. Some believe the review process can be significantly improved by employee participation throughout the process. There are a number of reasons why employee participation is valuable. 1. Who knows the job better than the employee? Employees possess relevant and unique insight into the job performance that may not be observable by even the most astute evaluator. 2. Appraisal participation gives employees input into the process, making them more confident in the fairness of the process and more likely to accept performance ratings, even adverse ones. 3. Employee participation generates an atmosphere of cooperation and employee support that may reduce tension for all involved. 4. Participation gives employees ownership of the process and a stake in the system. It is a key element in intrinsic motivation that increases employee growth and development (Roberts, 2003). There are some drawbacks to the self-evaluation process. “Research indicates the self-appraisal has great appeal for managers who are primarily concerned with employee participation and development, but self-appraisal appears less useful as an evaluative tool or for compensation purposes.” (Campbell, 1988).
Performance Appraisal Problems
• Appraiser discomfort.• Strictness/leniency.• Bias and lack of objectivity.• Manipulating the evaluation.• Halo/horns effect.• Central tendency error.• Recent behavior.• Supervisor unable to observe behavior.
Presenter
Presentation Notes
Managers are not always comfortable being the appraiser. Some simply don’t like the idea of judging the work of others. Others may have an inaccurate idea of what a manager is supposed to be. Some assume that good managers are tough and may give harsh ratings because they don’t want to be seen as pushover. Others may give lenient ratings, wanting to be liked by staff or fearing hostility or backlash if ratings are less that outstanding. None of these positions provide accurate ratings of the employees involved. Of course, managers are human; there are some people they like and some that may not like. Bias is a common problem in performance appraisals, and managers must be reminded that performance appraisals should be objective. It is NOT an affirmation of friendship nor an opportunity to get even with someone you dislike. It becomes a serious problem for the organization when a manager manipulates the appraisal process to get a disliked employee fired or a favored employee promoted. Remember, performance appraisals can be subpoenaed as evidence in litigation, and the organization may be asked to defend their accuracy. There are other errors as well. There is the halo effect, when there is one outstanding trait of an employee that overshadows all other activities in the appraisal. Then there is the horns effect, when one negative trait overshadows all the good an employee has done and results in a negative appraisal. Just as some managers give strict or lenient ratings, some are too timid to give much of a rating either way. Instead of making a judgment, they simply rate all employees right down the middle of the scale. If it is a one-to-three scale, everyone gets a two. If it’s a one-to-five scale, most everyone gets a three. This can also occur when organizations ask managers to justify their ratings if they are anywhere other than middle of the road. If it’s too difficult to justify, managers will just stick to the middle. Or it may simply be that the manager can’t differentiate one way or the other. Whatever the reason, some employees probably deserve middle ratings, but it is likely not a true reflection of ALL staff. Organizations can avoid this by using a scale with an even number of ratings. It’s hard to find the middle number between one and six. Recent behavior bias may occur when a manager fails to keep records of employee performance. Rather than looking at all behavior during the performance period, the manager rates only the most recent employee behavior because it is all the manager can remember. Appraisals must rate the entire performance period since the last appraisal was done and not just the last 30 days. Good managers keep records of employee performance--not just negative performance but outstanding performance, too. If records are kept, it is much easier to write the appraisal when the time comes. Appraisals can be inaccurate when the supervisor is unable to observe the employee’s performance. Even with good intentions, a supervisor is unlikely to be able to observe all employee behavior, and critical incidents can be missed. This is particularly a problem when the supervisor and the employee work at different locations. Sometimes a staffing change can result in the assignment of a new supervisor who has had only a short time to observe employee behavior. When observation is impossible, the supervisor must rely on results for assessment instead of behaviors. The possibility of error reminds HR how important it is to train managers in the performance appraisal process and to be vigilant in detecting appraisal patterns from managers that may signal inaccurate ratings.
Writing the Appraisal Review Document
Are your comments accurate and meaningful to the employee or just clichés?
Presenter
Presentation Notes
Class activity: Ask students to rewrite the clichés (found in the instructor’s manual) and discuss their answers. Students could do this individually or in groups of two or three. Remind students of the importance of appraising behavior and not personality.
Getting Ready for the Interview
Before you start that interview, what do you need?
Presenter
Presentation Notes
Start the class with an activity; ask students to make a list. As managers, what information do they need before the performance interview? There is a checklist in the instructor’s manual that can be distributed to the class after the exercise. Checklist items: Do you know your employee? Length of service with the organization. Date of last promotion. Experience and educational level. Current projects employee is working on. Career goals. Interview checklist. Do you have? Employee job description. Attendance records. Salary and job grade information. Employee performance journal. History of employee’s training. List of training courses available and appropriate for employee. Previous performance appraisal. Completed performance appraisal form. Employee self-appraisal. Recent examples of employee’s work (if appropriate). Examples of work problems you want to discuss (if appropriate). Are you ready? Have you: Notified the employee of the interview time? Given the employee at least one or two weeks notice? Reviewed your ratings with a peer or with HR before the interview?
Conducting the Performance Interview
• Explain the purpose of the interview.• Discuss self-appraisal.• Share ratings and explain rationale.• Discuss development plans.• Employee summary.• Rewards discussion (if appropriate).• Set follow-up meeting.• Employee signature.• Supervisor recap.• Appeals process.
Presenter
Presentation Notes
After what may seem like endless amounts of preparation time, everything is ready, and it’s time to sit down with your staff member and discuss his or her appraisal. Start by creating the proper climate for the appraisal interview. Conduct the interview in a private, neutral location that has a friendly and informal atmosphere. Be sure to allocate enough time to conclude the interview without being rushed. You may be nervous at the prospect of meeting with the employee to talk about performance, especially if you have little experience conducting review interviews. Remember, your staff member may also be nervous so it’s your job as manager to set the stage, create a comfortable environment and ensure a productive discussion. Start by thanking the employee for setting aside time for your meeting. No doubt your staff member has just as many time pressures as you and you want him or her to know that the performance review is important. Explain the purpose of the interview and what you want to accomplish. Start by discussing the employee’s self-appraisal. Ask him or her to comment on it and ask if there is anything else that should be added. Then move on to the appraisal you completed. If there are differences in ratings between you and the staff member, this is the time to discuss those differences and for you to explain your rationale for the ratings you gave. The appraisal should be future-focused. Remind the employee the purpose of the review is for goal-setting and growth. Be sensitive to the employee’s feelings–always begin by providing positive feedback. Point out specific accomplishments and note how the employee contributed to the team’s efforts and to the organization’s success. If there are problems with performance, the purpose is not to find fault but to address it and concentrate on what actions can be taken for improvement. Avoid discussion of negative personal issues. Instead, concentrate on the employee’s task-related behavior and the consequences of that behavior. It may be important to reinforce the requirements of the job. Give the employee a chance to discuss his or her feelings and reactions to your input and feedback. Listen and allow the employee to say what he or she needs to say. Pay attention to verbal and nonverbal cues. If there are areas that need improvement, encourage the employee to come up with potential solutions. Individuals are always more likely to follow through with solutions to a problem if they created the solution themselves instead of having a solution mandated to them by management. If the employee has a satisfactory or better rating, focus your discussion on setting objectives for the next period. If the employee has unsatisfactory performance, work together to create a developmental plan. Follow the guidelines your organization has for performance improvement plans. Ask the employee to summarize the plans you agreed on. This helps ensure that the employee understands what is expected next. If compensation is a part of your organization’s review process, discuss the changes in the employee’s compensation and share any rationale for the adjustment or other information as necessary. If follow-up meetings are needed after the appraisal interview, schedule them at this time. If follow-up is more informal, let the employee know when you will touch base again. Remember, it is important that feedback and communication is ongoing with all employees, not just with those who have problems. Ask the employee to sign the appraisal form and give them a copy. If the employee disagrees with his or her appraisal rating and refuses to sign, note that the employee chose not to sign and offer a copy of the document anyway. Summarize the results of the meeting and recap any important information needed to carry out future plans. Be sure to remind the employee of any follow-up dates. If appropriate, discuss the process your organization has established for employees who disagree with their performance ratings. Make sure they know the appeals process and that they have the information or documents needed to generate an appeal.
Performance Renewal and Re-Contracting
• Final step in performance management process.• Readjust based on insight from completed process.• Plan for next performance management cycle.
Problems With Assessment/Appraisal
• Tied to compensation.• Employees lack motivation.• Manager and employee don’t agree on results.• Management reluctance.• No performance documentation.
Presenter
Presentation Notes
Many organizations tie compensation to the appraisal process, believing good appraisal ratings deserve reward and at the same time hoping that a compensation reward will motivate employee productivity. It sounds like a win-win situation. A problem occurs, though, when the organization is not able or willing to reward employees with compensation levels employees believe they deserve. Managers find it problematic to praise an employee’s good work and ask for continued or even increased productivity and then reward the employee with a minimal increase in compensation. Employees who are disappointed with their compensation increase may be less motivated, less productive and, worst case, find employment elsewhere. As a result, many managers often prefer an appraisal system not linked to compensation. Problems can result when managers and employees don’t agree on the appraisal ratings. When the manager rates the employee lower than the employee expects, it can be a difficult interview and employees may respond with decreased productivity. Managers must ensure that the employee understands the rating criteria and the rationale for the rating score. It is important to emphasize the positive aspects of the appraisal process–goal setting, development plans and the opportunity for better results next time around. Many managers don’t like to assess employee performance. Some say it makes them feel like the judge and jury. Consequently, procrastination is commonplace when it’s time to get the formal paperwork done and schedule interviews with employees. It is management’s responsibility to complete performance appraisals in a timely manner. When employee appraisals are due and managers put them off, it sends a message to employees that their work is not respected and their appraisals aren’t important. The HR department needs to make sure there are no procrastinating managers. Managers need to maintain records and documentation of each employee’s performance. If performance appraisals are done once a year and the manager has kept no records of employee performance, it is difficult to remember what happened, and it is impossible to appraise appropriately. Most likely, the manager will remember and appraise only the most recent behavior, leading to an incomplete and possibly inaccurate assessment of the employee’s work. If information is maintained as a continuous process, the manager has the information necessary when it’s time to write the appraisal review. This makes the manager’s job easier and ensures that the employee receives fair and valid appraisal.
When completed, the appraisal becomes part of the employee’s personnel record, and it is from these documents that many employment decisions are made. An employee’s compensation level and opportunities for training or job promotion are often made based on performance appraisal ratings, as are organizationwide decisions on retrenchment and layoffs. As a result, it is imperative that performance management activities are nondiscriminatory and that all employees receive a fair process with equal opportunity within the organization. Information in employee files can be skewed by untrained managers who make errors or inadvertently distort information. It is important that managers are trained in performance appraisal and that the HR department monitors activities to ensure that performance appraisal documents are consistent across departments. For example, if one manager is especially harsh in ratings and employees in that department are rated low and another manager is especially lenient and gives staff high ratings, the result is inaccurate appraisal documents that don’t reflect employee performance, giving an unfair advantage to staff whose appraisals are written by the lenient manager. It is important to have a grievance procedure in place for employees who may not agree with their appraisal ratings. Due process is vital. Employees need an unbiased ear where their issues can be heard and addressed objectively.
Poorly Implemented PM Systems
• False and misleading information.• Increased turnover.• Wasted time and money.• Damaged relationships.• Decreased motivation.• Job dissatisfaction.• Risk of litigation.• Unfair standards.
Presenter
Presentation Notes
When performance management systems are poorly managed and don’t work as intended, there are a number of negative consequences. It is impossible for HR to make accurate and equitable employment decisions when employee files are littered with false and misleading information. Employees know when a favored employee receives an undeserved performance rating or when a supervisor unfairly gives staff inappropriately high ratings. Decisions made on such inaccuracies result in employee cynicism, distrust in management and loss of morale. At the least we can expect lower productivity, but worse yet, poorly managed performance management systems will send the best people packing and may lead to claims of discrimination and litigation.
Successful performance management doesn’t just happen. It requires a concentrated effort that includes support from upper management and trained managers at all levels. It is an ongoing process that requires open communication, coaching, feedback and documentation of employees’ work that must be a regular part of management activities and not just a once-a-year paper-and-pencil process. Communication, encouragement and empathy build successful relationships that enhance staff performance and support organizational goals. Students of management and human resources must learn these communication and leadership skills to ensure their place in successful organizations of the future.
