IMPLEMENTING

A PERFORMANCE MANAGEMENT
SYSTEM

Implementing a Performance
Management System: Overview
1.
2.
3.
4.
5.
6.

Preparation
Communication Plan
Appeals Process
Training Programs
Pilot Testing
Ongoing Monitoring and Evaluation

6. Ongoing Monitoring
& Evaluation
5. Pilot Testing
4. Training Programs

3. Appeals Process

2. Communication
Plan
1. Preparation

Implementing PMS

1. Preparation
Need to gain system buy-in
through:
Communication plan regarding
Performance Management
system
Including appeals process
Training programs for raters
Pilot testing system
Ongoing monitoring and
evaluation
Providing data

2. Communication Plan
answers:
What is Performance Management (PM)?

objectives
How does PM fit in our strategy?
strategic
planning
Whats in it for me?
benefits to all
How does it work?
process and time line
What are our roles and responsibilities?
role
and responsibilities to all
How does PM relate to other initiatives?

training, promotion, succession planning

Cognitive Biases that affect

communications effectiveness
1. Selective exposure
2. Selective perception
3. Selective retention

To minimize effects of cognitive biases:

A. Consider Employees:
Involve employees in system design
Show how employee needs are met

To minimize effects of cognitive biases (continued):

B. Emphasize the positive

Use credible communicators
Strike first create positive attitude
Provide facts and conclusions

To minimize effects of cognitive biases (continued):

C. Repeat, document, be consistent

Put it in writing
Use multiple channels of communication
Say it, and then say it again

3. Appeals Process
Promote Employee buy-in to PM system
Amicable/Non-retaliatory
Resolution of disagreements

Increase perception of the system as

fair

Appeals Process
Employees can question two types of
issues:
Judgmental
may not reflect to actual
performance
(validity of evaluation)

Administrative
may argue about never

conduct meeting with his employees
(whether policies and procedures were
followed)
Supervising, coaching

Appeals Process
Level 1
HR reviews facts, policies, procedures
HR reports to supervisor/employee
HR attempts to negotiate settlement

Level 2
Arbitrator (panel of peers and managers)
and/or

High-level manager final decision

4. Rater Training Programs

Content Areas to include
1. Information
2. Identifying, Observing, Recording, Evaluating
3. How to Interact with Employees

Choices of Training Programs to implement

Rater Error Training (RET)
Frame of Reference Training (FOR)
Behavioral Observation (BO)
Self-leadership Training (SL)

Content
A. Information - how the system works
Reasons for implementing the
performance management system
Information
the appraisal form
system mechanics

Content (continued)
B. Identifying, observing, recording, and
evaluating performance
How to identify and rank job activities
How to observe, record, and measure
performance
How to minimize rating errors

Content (continued)
C. How to interact with employees when
they receive performance information
How to conduct an appraisal interview
How to train, counsel, and coach

5. Choices of Training Programs

a)
b)
c)
d)

Rater Error Training (RET)

Frame of Reference Training (FOR)
Behavioral Observation Training (BO)
Self-leadership Training (SL)

a. Rater Error Training (RET)

Goals of Rater Error Training (RET)
Make raters aware of types of rating errors
Help raters minimize errors
Increase rating accuracy

Intentional rating errors

Leniency (inflation)
Severity (deflation)
Central tendency

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Unintentional rating errors

1.
2.
3.
4.
5.

Similar to Me
Halo
Negativity
First Impression
Contrast

6. Stereotype
7. Primacy
8. Recency
9. Spillover
10.Attribution

Possible Solutions for Types of Rating Errors

Intentional
Focus on motivation
Demonstrate benefits of providing accurate
ratings

Unintentional
Alert raters to different errors and their
causes

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b. Frame of Reference Training (FOR)

Goal of FOR*
Raters develop common frame of reference
Observing performance
Evaluating performance

*Most appropriate when PM appraisal system focuses on behaviors

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Expected Results of FOR

Raters provide consistent, more accurate
ratings
Raters help employees design effective
development plans

c. Behavioral Observation Training (BO)

Goals of BO
focus on behavior
Minimize unintentional rating errors
Improve rater skills by focusing on how raters:
Observe performance
Store information about performance
Recall information about performance
Use information about performance

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d. Self-leadership Training (SL)

Goals of SL
Improve rater confidence in ability to
manage performance
Enhance mental processes
Increase self-efficacy

5. Pilot Testing
Provides ability to
Discover potential problems
Fix them
Good idea to test a version of the entire system so
that adjustment and revisions can be made as needed.

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Pilot Testing - benefits

Gain information from potential participants

Learn about difficulties/obstacles
Collect recommendations on how to improve
Understand personal reactions
Get early buy-in
Get higher rate of acceptance

Implementing a Pilot Test

Roll out test version with sample group
Staff and jobs generalizable to organization

Fully implement planned system

All participants keep records of issues encountered
Collect input from all participants

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6. Ongoing Monitoring and Evaluation

When system is implemented, decide:
How to evaluate system effectiveness
How to measure implementation
How to measure results

Evaluation data to collect:

Reactions to the system
Assessments of requirements
Operational
Technical

Effectiveness of performance ratings

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Indicators to consider

Number of individuals evaluated

Distribution of performance ratings
Quality of information
Quality of performance discussion meetings
System satisfaction
Cost/benefit ratio
Unit-level and organization-level performance

Quick Review
1.
2.
3.
4.
5.
6.

Preparation
Communication Plan
Appeals Process
Training Programs
Pilot Testing
Ongoing Monitoring and Evaluation

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