Module 2 Conduct Mid and End Cycle Performance Review for Managers

1
Module 2 - Conduct Mid and End Cycle Performance
Review for Managers

• Performance, Development and Rewards Training

2
Module 2 Conduct Mid and End Cycle Performance
Review focuses on the course objectives outlined
below

• At the end of this session participants will be
  able to
• Discuss the purpose of performance reviews
• Explain the Mid and End Cycle processes and where
  these processes fit into the PDR process
• Effectively prepare to conduct a performance
  review
• Apply performance ratings to performance
  objectives based on evidence and information
  provided in examples
• Answer questions about performance ratings and
  the distribution process (including managing
  forced distribution)
• Explain the resolution procedure
• Discuss the importance of the final rating, in
  particular its linkage to rewards
• State what needs to happen when communicating
  results

3
Before we begin, lets discuss and explore a few
concepts to do with performance reviews
Discussion

• What is the purpose of performance reviews?
• What are some guiding principles for Performance
  Reviews?

4
This module will focus on the Mid and End Cycle
review phases, highlighted in red
PDR Process
Develop Performance Plan

• Draft Performance Objectives
• Agree Performance Plan discussion
• Manager Sign-off

Conduct Mid Cycle Review

• Employee Performance Plan Review
• Manager Performance Plan Review
• Discussion and updates
• Manager Sign-off

Feb -Mar Apr 09
Conduct End Cycle Review

• Employee Performance Review (and rating)
• Manager Performance Review (and rating)
• Performance Discussion
• Performance Review Sign-off

Aug Sept Oct 09
Conduct Moderation Process

• Faculty/Business Unit Moderation Process
• Higher Ed and Corporate Moderation Process
• Incentive Modelling
• Final Performance Rating Sign-off

Jan Feb 10
Performance Bonus Payments May pay run
Mar 10
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The Mid-Cycle Review checks progress against
agreed objectives and planned development for an
employee
Mid-Cycle Review Process
Does Direct Report agree with progress assessment?
Resolution Process
NO
Review Performance Plan
Collect Evidence
Document Performance and Development progress
Update Performance Plan based on discussion and
send to Manager
Direct Report
YES
NO
Does performance plan require updating?
Discuss progress with Direct Report
Receive Performance Plan and sign of Mid-Cycle
Review
YES
Review Direct Report Performance and Development
Plan
Assess progress towards performance objectives
and development plan
Schedule Performance and Development Review
Meeting
Manager
Request Performance Plan Amendment form
Enter mid-cycle performance comments
Notification trigger to all employees of PDR
review cycle
HR
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Preparation on the part of the Manager and the
Direct Report is the key to successful
performance reviews
Discussion

• What inputs would you need to conduct a
  performance review?
• How else might you prepare for the review?
• What do you think your Direct Reports need to do
  prior to the meeting?

7
There are a few things we think are really
important to conducting a good performance review
with your Direct Reports
8
There are a few things we think are really
important to conducting a good performance review
with your Direct Reports (Contd)

9
It is important that you get an opportunity to
practice doing a performance review
Scenarios

• In 2 groups, use the information provided to
  prepare for a mid cycle performance review
• You will have 20 minutes to complete it as well
  as you can
• Nominate a spokesperson who will present your
  answers to the group (10 mins per group)

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The End-Cycle Review Process is very similar,
with the addition of a rating for the year
End-Cycle Review Process
Does Direct Report agree with performance review?
Resolution Process
NO
Review Performance Plan
Collect Evidence
Self-assess performance against objectives and
assign rating
Direct Report
Discuss performance, ratings and completion of
development activities with Direct Report
YES
Update End-Cycle Review comments and ratings
Review Direct Report Performance and Development
Plan
Assess progress towards performance objectives
and development plan
Assign rating against each objective using cited
evidence
Assess satisfactory completion of development plan
Manager
Schedule Performance and Development Review
Meeting
Moderation Process
Notification trigger to all employees of PDR
review cycle
HR
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It is important that performance ratings are
determined in line with Swinburne guidelines
Rating Performance

• Employees will self assess their performance and
  assign a rating to each of their performance
  objectives
• Managers will meet with their employees to
  discuss the performance year and manage employee
  expectations as appropriate this may require
  re-rating of performance objectives
• Evidence of performance measures will be a key
  input to assessing employee performance
• Managers will assign a performance rating to
  individuals as per agreed 1 to 5 rating scale
  against each performance objective using PDR
  guidelines to assess performance
• SuccessFactors will calculate a final performance
  rating by multiplying each performance rating by
  the weighting percentage and adding each score
• Performance Ratings are used to determine
  financial rewards and short-term incentive
  payments and thus getting them right is very
  important

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The table below defines the Performance Ratings
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Rating Performance Example What ratings would
you assign?
4
3
2
4
Performance Rating Calculation (4 x 60) (3 x
10) (2 x 20) (4 x 10) 2.4 0.3 0.4
0.4 3.5
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Now that you understand how a performance review
should be conducted, lets discuss an important
topic
Discussion

• What are some things that may go wrong during a
  performance review and how might you handle these
  situations?

15
Now you understand how to conduct a performance
review, lets discuss an important topic How to
Handle Difficult Situations
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How to Handle Difficult Situations (continued)
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There may be instances where disagreements arise
between you and your Direct Reports
The Resolution Process

• There are a number of checks and balances within
  the PDR process to facilitate fairness,
  transparency and objectivity
• Regular reviews and meetings between a Manager
  and Direct Report - open and honest two way
  communication is necessary
• To reduce ambiguity and increase consistency and
  transparency, all performance ratings will be
  subject to the Moderation process. This process
  involves Senior Managers reviewing the ratings
  and objectives to ensure all performance ratings
  have been applied fairly and consistently.
• As we get more familiar with the process, our
  skills for honest communication and clarity of
  objective setting will improve
• Nevertheless, there may be some instances where
  the Manager - Direct Report relationship may
  experience difficulties and a Direct Report
  disagrees with your assessment of their
  performance
• If you and your Direct Report cannot reach
  agreement when setting performance objectives and
  measures, or the Direct Report disagrees with
  your assessment of their performance, they are
  able to request your Manager to intervene and
  mediate.
• The process is outlined on the next page

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If there are disagreements between you and your
Direct Report about performance, the Resolution
Process is followed
The Resolution Process
Informs Manager that they would like to start the
Resolution Process as dissatisfied with ratings
or performance assessment
Moderation Process
Direct Report
YES
Agreement reached?
Discuss with Manager reasons for disagreement
Meeting with Direct Report, Manager and 2nd Level
Manager
NO
Manager
2nd Level Manager makes decision on resolution
2nd Level Manager
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Communication transparency is important in
regards to ratings and incentive framework -
payments should remain confidential
Communication of Ratings

• Ensure that your Direct Report is aware that the
  initial ratings discussed in your end-cycle
  review may be moderated at the Moderation process
  (either up or down)
• You should also inform them if they received a 4
  or a 5 and thus a performance bonus
• IMPORTANT Final performance outcomes cannot be
  communicated employees prior to Performance Round
  Table Panel Chair sign-off

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In pairs, write down the answers to the following
quiz on the answer sheets provided without
referring to your notes
Quick Quiz

• Question 1
• What are the two review processes called?
• Question 2
• How many performance ratings are there?
• Question 3
• What is the descriptor for a 3 rating?
• Question 4
• What percentage of people should, on average,
  rate as a 3?
• Question 5
• What are ratings based upon? (3 factors)
• Question 6
• When do the mid and end-cycle performance reviews
  happen?

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Lets review our course objectives to see if we
have covered off all required topics
Course Objectives - Review

• You should now be able to
• Discuss the purpose of performance reviews
• Explain the Mid and End Cycle processes and where
  these processes fit into the PDR process
• Explain preparation requirements the inputs, how
  to prepare for a performance review, what youd
  expect to see from staff and when
• Apply performance ratings to performance
  objectives based on evidence and information
  provided in examples
• Answer questions about performance ratings, the
  distribution process (including managing forced
  distribution)
• Discuss the importance of the final rating, in
  particular its linkage to rewards
• State what needs to happen when communicating
  results
• Explain the resolution process

22
Thinking about what we have learned is an
effective method of retaining informationso
Key Learnings

• Individually, write down your top 3 learnings
  from this module
• Thank you for your attention!