The Impact of Performance Management on Employee Engagement Frazer Rendell – Chair, Performance Management Sub Group, Engage for Success. Director, e-trinity. Grahame Russell – Founder & CEO, Change Associates
Performance Engaged Improved Management Employee Performance
The Impact of Performance Management on Employee Engagement
Performance Management What ’ s the point? Octagon Research Series 2015
“ most CEOs admit that performance management is a weakness in their business .”
The six reasons why Performance Management fails in many organisations 1. PM has become an overloaded administrative process driven by HR
“Performance Management needs a complete re-think. For too long it has been dominated by the need of HR to produce a number; business needs it to be much more simpler and to add value to their agenda not that of HR” Toby Peyton-Jones, HR Director, Siemens plc
“The process is fundamentally flawed. As a profession HR typically looks to create a process solution that joins up everything that performance management is trying to achieve. This fundamentally misses the point in that what we are trying to do is meet the needs of individuals who don’t respond well to being shoehorned into a one size fits all process” Lucy Adams, MD at Firehouse Productions Ltd and former HR Director for the BBC
The six reasons Performance Management fails in many organisations 1. PM has become an overloaded administrative process driven by HR 2. PM meetings happen too infrequently
“in a fast moving company like Superdry, priorities change weekly. If someone is working on opening a store in Italy, then France is no longer a priority, so objectives can quickly become irrelevant. In agile firms, its about developing people to do a good job; it must be continual. Andrea Cartwright, HR Director Supergroup plc
The six reasons Performance Management fails in many organisations 1. PM has become an overloaded administrative process driven by HR 2. PM meetings happen too infrequently 3. PM fails to deal with underperformance (and arguably is the wrong way to do so)
“Everyone in the organisation expects and wants underperformance in others to be addressed. We need to find the courage to have the difficult conversations Joel Le Goffic, Regional HR Director DS Smith plc
The six reasons Performance Management fails in many organisations 1. PM has become an overloaded administrative process driven by HR 2. PM meetings happen too infrequently 3. PM fails to deal with underperformance (and arguably is the wrong way to do so) 4. Performance improvement has become a process of measuring failure
“Performance Management should be about enabling people to perform at their best – about ‘playing to win’…not playing to avoid losing” “…people’s fields of view actually Andrea Cartwright, HR Director constrict; they can take in a Supergroup plc narrower stream of data and there’s a restriction in creativity’ David Rock, author of ‘Your brain at Work and co - founder of the neuro Leadership institute
The six reasons Performance Management fails in many organisations 1. PM has become an overloaded administrative process driven by HR 2. PM meetings happen too infrequently 3. PM fails to deal with underperformance (and arguably is the wrong way to do so) 4. Performance improvement has become a process of measuring failure 5. Forced distribution is fundamentally flawed
“The reality is that we, like many businesses, end up focussing on the two extremes: who are the bottom ten per cent and the top ten per cent. As a consequence we are at risk of missing the middle 80% and how we can motivate them to nudge their performance and development” Tony Prestedge, Chief Operations Officer Nationwide Building Society
The six reasons Performance Management fails in many organisations 1. PM has become an overloaded administrative process driven by HR 2. PM meetings happen too infrequently 3. PM fails to deal with underperformance (and arguably is the wrong way to do so) 4. Performance improvement has become a process of measuring failure 5. Forced distribution is fundamentally flawed 6. Stars get lost in the process
How to make PM work in your organisation 1. Leaders must lead – and be seen to lead – performance management 2. Strive for great conversations that happen regularly and frequently 3. Create an environment in which performance is endemic 4. Engender employee commitment through shared purpose and values 5. Keep it simple and focused on performance/development.
“[ We] simplified the process to reduce emphasis on documentation and form filling. We have refocused on driving quality development conversations and continuous “ We are fast coming up to a crisis feedback – the role of manager as coach is point where managers will not have a critical element of this to identify and the capabilities to understand retain our top talent .” different generations’ motivations and be able Charlotte Clayton, Senior Manager − Global to relate to their workforce. This is People, Performance and Culture, KPMG UK critical and crucial to get right. T echnology must be used to help solve this crisis .” Mike Amato, Non-Executive Director, Santander UK
What drives positive behaviours around performance appraisal?
The Behavioural Neuroscience of Performance Management Professor Richard Crisp
Be Inclusive Brain imaging studies show that when people are excluded from a group the same part of their brain ‘lights up’ as if they were experiencing physical pain (Williams & Jarvis, 2006) PM reviews that tackle difficult issues head on can stimulate “system 2” thinking – helping to foster innovative outcomes through social collaboration (Crisp & Turner, 2012)
Be Informal Status and hierarchy can be endemic to PM But emphasizing social differences can shut down the medial prefrontal cortex: the part of the brain used for advanced social cognition (perspective- taking, empathy, trust) … … and activate the amygdala: the part of the brain that responds to threat (‘fight or flight’) (Harris & Fiske, 2006) Effective engagement might therefore be best achieved by reducing the elements of status surrounding PM (using less formality, less status-driven language)
Be Open Adopting an ‘expansive’ posture (relax, informal) vs. ‘contractive’ posture (arms folded, legs crossed) can promote less defensive, risk-averse behaviour Expansive postures are also associated with less cortisol production (the stress hormone) (Carney, Cuddy, & Yap, 2010) PM reviews that encourage a relaxed posture (e.g. think sofa vs. desk) can help stimulate innovation, exploration and reduce stress
Performance Management What ’ s the point? Octagon Research Series 2015
Research - How to increase engagement through Performance Management. • Do you want to get the best from your Performance Management process? We need you! • Are you all ready measuring levels of Employee Engagement? Research Supported by Research in collaboration with
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