POSITION DESCRIPTION - Terex



Frequently Asked Questions: Rating Scale

• Are there changes to the Performance Rating Scale this year?

No. The 5-point rating scale has not changed and is the same scale and definitions that were used with last year’s performance review process.

5-Point Performance Rating Scale (to measure performance against annual objectives):

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• Will there be a forced distribution of the ratings?

There will not be a forced distribution of ratings. We have provided the following guidelines to ensure we have a balanced distribution and do not experience “rating inflation.”

The guidelines are:

✓ Each segment / function / geography will need to tie to an average rating of 3.2 – 3.4 (calculated when the ratings are aggregated into numbers)

✓ The number of “significantly exceeds” ratings cannot be given to more than 5% of each segment / function / geography population

We also expect that all five points on the rating scale will be used to evaluate team member performance. We encourage managers to read the definitions carefully and choose the one which most closely describes each team member’s performance.

• Why doesn’t the rating scale have numbers?

We deliberately created the new scale without numbers so that the focus would be on the words and the definitions.

• How should I interpret the rating of “Meets Expectation”?

A rating of “Meets Expectations” means that performance meets management expectations. You may have exceeded in some areas and missed in a few areas but primarily met on balance. Performance is largely effective and consistent. We would expect that this definition would apply to a significant number of our team members.

• How do my ratings affect my compensation?

Team members who receive a rating of “Unsatisfactory/Does Not Meet Expectations” will not be eligible to receive a salary increase or bonus. All other team members will be eligible but managers will be issued guidance around differentiation. Salary increase and bonus recommendations will be made by managers, approved by leadership, and will adhere to

budget guidelines.

• How do the ratings affect MIB Payout?

In order to provide more flexibility and the opportunity to reward superior performance, we will be using the following guidelines:

✓ Segments/functions/geographies are allotted an MIB cash pool to manage

✓ Individuals who are rated “significantly exceeds” could receive individual performance payouts >100%, but not to exceed 120%

✓ MIB payouts for individual performance >100% must be balanced with lower payouts on individual performance so the total cash pool is not exceeded

• Why does the Behavior Scale have the option of “Too New to Rate” but the Performance Scale does not?

The Performance Scale does not have this option because any team member who was hired before November 1st should have objectives appropriate for the balance of the year so that they can have a review. If a team member has been recently transferred to a new role, his/her prior manager should be asked for feedback on the accomplishment of his/her objectives for the prior assignment. In the case of a team member who is new to Terex, there may be some competencies that it is just too soon for the manager to assess. That’s why we provide the “Too New to Rate” option. We expect that it will be used sparingly.

Frequently Asked Questions: Self Assessments

• Why do I need to do a self-assessment?

A self-assessment is an opportunity for you to look back over the year, review your objectives and see how you have performed. It provides you with an opportunity to share your accomplishments with your manager and let him/her know about things they might not have been aware of. It is also an opportunity to let your manager know what development activities you completed during the year and what development you would still like to undertake.

• Why don’t I assess myself using the 5 point scale?

You are asked to give yourself an overall assessment of “Didn’t Meet Expectations”, “Met Most Expectations”, “Met Expectations”, “Exceeded Most Expectations”, or “Significantly Exceeds Expectations” in order to provide your manager with a general sense of how you think you performed during the year. You are not asked to rate your individual objectives using the scale because we want the performance discussion to focus on your accomplishments. Also, we wanted to eliminate any possibility of managers being influenced by the ratings provided by their team members.

• Why should I update my profile information?

We are providing the opportunity for team members to update their TTMS profile information as part of the self-assessment process. Updating your profile provides your management team with important information that can help to identify you for development and advancement opportunities. It allows senior leadership to quickly recognize your skills and experience when they are seeking internal talent.

• If I’m not a manager, do the Terex Leadership Competencies apply to me?

Yes, if you refer to the Terex Leadership Competency Model, you will see that there are competencies within each category that pertain to individual contributors. Within “Making It Happen” for example, individual contributors have competencies such as Time Management, Action Oriented, Standing Alone and Functional/Technical Skills.

• What if I don’t know what to write?

The Terex Talent Management System provides a link to a “Writing Assistant” which provides some general statements or “thought starters” that can get you started. This verbiage can then be customized and edited to fit your personal situation. You will find “Writing Assistant/Coaching Advisor” under the “Help & Tutorials” sub-tab on the Home page.

• What happens if I start to complete my self-assessment and get interrupted? Do I lose what I have already completed?

The TTMS system has a Save function (indicated by a floppy disc icon) that allows you to save what you have entered into the system and go back and finish it at a later time. It is recommended to click the Save icon frequently to avoid any loss of data.

• How will my performance be assessed?

Managers are expected to take into consideration all relevant performance information to best assess your performance. This includes taking into account your self-assessment as well as their personal observations and the feedback they may receive from others. Your overall rating will reflect a combination of the objectives you accomplished [i.e. “what” you did] (80%) and the behaviors you demonstrated [i.e. “how” you did it] (20%).

• What happens if I don’t complete my self-assessment in the specified timeframe?

While there is no penalty for not completing a self- assessment, you are strongly encouraged to do so. This is an opportunity for you to provide your manager with a review of your annual performance and highlight your accomplishments. It is a valuable tool for both you and your manager that can be used for open dialogue about performance and development. If you don’t complete the self-assessment within the specified timeframe, the form will be automatically routed to your manager without your comments and rating and your manager will not have the benefit of your input.

• What happens once I do the self-assessment?

Once you enter your self-assessment into the system, you will need to route it to your manager simply by clicking the “Send to Manager” button in the form. Or, if you have not routed it on the date it is due, it will be automatically routed for you. Your manager will then review the self -assessment and add his/her comments and observations about your performance.

• What happens if my self-assessment has been routed, but I think of something else I want to add?

Simply ask your manager to return the form to you so that you can input the additional information.

• What happens if I get my self-assessment and it has no objectives on it?

If your form has no objectives, it means that you didn’t set any objectives at the beginning of the year or at mid-year calibration time. All TMs in TTMS who began before November 1, 2014 must have objectives in the system in order to have a review and be eligible for any kind of salary increase or bonus. If your form is blank, you should immediately contact your manager and/or HR manager.

• If I entered comments and questions all year, will they automatically appear on my review form?

Yes. You will also be able to edit these fields and to provide updates.

• Why do I need to list my development activities?

Listing your development activities creates a record within your performance review. It is a way of documenting things that you have done to improve yourself and serves as a discussion point with your manager.

• What if I don’t remember what courses I took or when I took them?

You can go to Terex University and you will see a tile called “History”. You can click on the “view all” link to see your list of completed learning activities. Or use the link that is provided in the form.

• What is my user name and password for TTMS?

Your user name is typically your first name and last name separated by a dot (i.e., Firstname.Lastname …. Ex. Brooke.Brown). Your password was provided to you in an email sent by the system administrator when you were initially entered into the system. If you have forgotten it, you can click on the “Forgot Your Password” button on the TTMS login page and your password will be emailed to you from the system.

• How can I access the Terex Talent Management System (TTMS)?

The link for TTMS is

You can find additional information, tools and reference guides on how to use TTMS under the Help & Tutorials sub-tab on the Home page, Performance and Objectives page.

• What if I get an “invalid manager” error message when trying to log in to TTMS?

This message means that there is an error in TMS or our Global Data File. If you get this message, you should contact your HR manager immediately so your manger’s info can be updated and your form can be properly routed.

Frequently Asked Questions: Managers

• What does the “Rate My Team” button mean in Part 3 of the Performance Review?

“Click to Rate My Team” allows managers with more than one direct report to rate all their team members’ demonstration of values and competencies at the same time. This allows for a more efficient process and likely a more effective one as well, because managers will be able to easily calibrate ratings amongst their team members.

• How do I use the “Rate My Team” button?

You can use the “Rate My Team” button when you are in any of your direct report’s reviews. When you click on it, you will see all your team members on one page. Once you rate all your team members using this format, their individual performance reviews will be populated with the ratings. You can make changes either using the “Rate My Team” button again or within individual reviews.

Note that in order to see all your team members, each of their reviews needs to be in your in-box (i.e. not forwarded to someone else’s in-box to get feedback).

• How does the rating I give my team member affect their salary increase or bonus payout?

Team members you rate “Unsatisfactory/Does Not Meet Expectations” will not be eligible to receive a salary increase or bonus.  All other team members will be eligible but managers need to manage their payouts within their cash pool.  Team members who receive a rating of “significantly exceeds” could receive individual performance payouts >100%, but not to exceed 120%. Any individual payouts >100% must be balanced with lower payments so the total cash pool is not exceeded. Salary increase and bonus recommendations will be reviewed for final approval by leadership and must be within budget guidelines.

• I don’t want to write my team member’s performance review without having a conversation with her first. That’s not a part of the process, but can I do it?

This isn’t a mandated part of the process, but it is considered to be a “Best Practice”. The advantage of having a conversation before writing the review is that you can get more input from your team member(s) – beyond what’s written on the self-assessment form. This sets the scene for alignment between managers and their team members around where team members see their performance vs. where you see it – and may provide you with new insights. Having this conversation will result in fewer “surprises” when the review discussion takes place.

• Should I discuss performance and development and compensation in the same conversation?

Our strong recommendation would be to split up these conversations and we have designed this year’s HR process timetable to reflect this intent. We believe that the performance and development conversation should come first, allowing the team member to be fully focused on what he/she has done well and what he/she could improve upon. This should ensure that the team member’s full attention is on his/her performance and development and he/she is not distracted by his/her salary increase and payout. The compensation / bonus information can follow in a second conversation as a natural reflection of the rating and feedback they have received.

• Do performance and development have to be addressed in one conversation?

No. How you handle these conversations will depend on each team member’s individual situation. For example, you may want to have more than one discussion with a team member who has extensive development and/or performance gaps. All we are asking is that you complete your performance discussions before April 15th, so the review does not become too disconnected from the prior year’s performance.

• When is MIB paid out?

There are tax advantages to Terex to make the MIB payments to U.S team members no later than March 15th and by March 31st in all other countries. Managers should plan to discuss MIB with their team members by these dates. Note: The discussion of performance and development can be conducted separately from MIB. However the entire review process should be complete by April 15th.

• I’m asked to complete performance reviews before the financial numbers have been finalized? How can I give a rating without knowing the final financials?

It’s true that our financial numbers are not finalized until mid-February, but typically we have a fairly good sense at year end of where they will come out. When completing performance reviews, you should use these estimates – knowing that if the numbers substantially change, that ratings can be adjusted accordingly. In addition, team members usually have many objectives that are not driven by the financials. You can, and should, provide feedback on progress against these without having the final numbers.

• What if I want to get feedback from someone else on my team member’s performance? Can I get input from my manager? Can I get input from someone else my team member has worked with?

The “Get Feedback” button in TTMS allows you to get feedback from anyone else in the TTMS system. Just remember that when you send your form to someone else to get feedback, you need to keep track of the form and get it back so you can complete the review.

• What if I send the form to someone else using the Get Feedback button and the form isn’t returned to me? You can use the “Recall” button. Click on the Performance Form Tab, En route link on the left. Open the team member’s form and you will see a “Recall” button at the top of the form. When you click on the button, you will instantly retrieve the form and can proceed from there.

• My team member has me as his manager, but he also has a matrix manager. How does that work at performance review time?

A number of our team members report to more than one manager – either as two “solid lines” or with a “solid line” and a “dotted line”. Often these additional managers are called matrix managers. No matter whether the second manager is dotted or solid, your team member’s performance review should reflect feedback from both of his/her managers. Before finalizing the performance review, you should ensure that you seek input from the other manager if he/she has not already provided it to you. You should use the “Get Feedback” button to get feedback from your team member’s other manager within TTMS.

• What if the matrix manager and I disagree on the ratings we want to give?

Such disagreements will require a conversation between you and the matrix manager. Both of you can provide your comments on the review form, but only 1 rating can ultimately be included.

• What should I do if the matrix manager does not return the form to me in a timely basis?

As the manager, you have the responsibility to keep track of where your team members’ forms are. If you send a matrix manager a form, best practice would be to ask for it back by a specified date and make yourself a note to follow up accordingly. While the matrix manager receives notification when you send him/her the form, he/she does not receive notification from the system to send it back. The process of getting matrix manager input will likely require some follow up on your part. You can use the “Recall” button. Click on the Performance Form Tab, En Route link on the left. Open the team member’s form and you will see a “Recall” button at the top of the form. When you click on the button, you will instantly retrieve the form and can proceed from there.

• I used the “Get Feedback” button to get input and now I can’t find the review. What do I do?

Rest assured that the review is not lost. If you look in your “en route” folder in TTMS, you will see the review and who currently has it. You should call the person to whom you sent the review, ask him/her to complete it and forward it back to you by a specified time or you can use the “Recall” button within the form to instantly retrieve the form.

• How is the overall rating calculated in TTMS?

TTMS is programmed to calculate a numeric rating by translating the performance ratings into numbers and weighting the objectives section at 80% and the behavior section at 20%. This numerical rating should correlate with the final rating that you, as the manager, recommend. If it does not, you may want to reconsider the rating that you are giving. In general, a calculated numerical rating of 1 = “Unsatisfactory”, 2 = “Meets Most Expectations”, 3 = “Meets Expectations”, 4 = “Exceeds Most Expectations” and 5 = “Significantly Exceeds Expectations”. Manager discretion can be used, for example, to determine whether a 2.5 is “Meets Most” or “Meets”. However, it would be highly unlikely that a 2.5 would be considered “Exceeds Most”.

• When should I use the “Too New to Rate” rating?

The “Too New to Rate” option should be used only in cases where a team member is so new to the company or your team that you have not been able to see a demonstration of specific values and/or competencies. If your team member has recently transferred into your group, you should consult with his/her prior manager. It is expected that this rating would be used sparingly.

• I spend a lot of time on airplanes. Can I write performance reviews off line?

Yes. TTMS does have a feature that allows you to download forms onto your computer. Directions are located in the Terex Reference Guides located in the quick links on TTMS.

• My team member transferred to me during the year. How should I handle her review?

In general, if team members transfer during the year, the objectives from their previous positions will remain with them and you will need to use the “get feedback” feature in TTMS to seek input from their former manager. Note that the weighting of their former objectives may need to be modified to accommodate for leaving the position part way through the year, and objectives for the new position should be added accordingly.

• We have done a lot of restructuring in my group and I now have team members reporting to me whose former manager has left the company. How should I handle?

In this situation, you will need to rely on the team member’s self-assessment, along with additional feedback you can gather from peers, customers and others. When you get a self-assessment from one of your team members, make the time to review it with them in depth so you get a good feel for what they accomplished throughout the year. Ask probing questions to get more in-depth information. Get additional points of view from others who have worked with them throughout the year.

• One of my team members exceeded his objectives and got excellent results, but he did not do it in a way that I believe is consistent with showing respect for other team members. How do I reflect that on his performance review?

There are several ways for you to convey this message. One is by pointing it out in the comments sections available to you on the form. Another is by reflecting this in the ratings that are given in the Behaviors section of the review. Note that the overall rating should reflect 80% “what” was achieved and 20% “how” it was achieved. So even though a team member may have exceeded expectations on his most important objectives and had a ‘Exceeds Most Expectations’ year on that basis, his overall rating might be “Meets Expectations” based on the 20% “how” portion. In either case, your concern about his behaviors should definitely be communicated to the team member during your performance and development review discussion.

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5-Point Behavior Rating Scale (to measure demonstration of The Terex Way values and the Terex Leadership Competencies)

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Performance and Development Review

Frequently Asked Questions

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