Performance Management: A roadmap for developing ...
[Pages:56]EFFECTIVE PRACTICE GUIDELINES
Performance Management
A roadmap for developing, implementing and evaluating performance management systems
Elaine D. Pulakos
EFFECTIVE PRACTICE GUIDELINES
Performance Management
A roadmap for developing, implementing and evaluating performance management systems
Elaine D. Pulakos
This publication is designed to provide accurate and authoritative information regarding the subject matter covered. Neither the publisher nor the author is engaged in rendering legal or other professional service. If legal advice or other expert assistance is required, the services of a competent, licensed professional should be sought. Any federal and state laws discussed in this book are subject to frequent revision and interpretation by amendments or judicial revisions that may significantly affect employer or employee rights and obligations. Readers are encouraged to seek legal counsel regarding specific policies and practices in their organizations.
This book is published by the SHRM Foundation, an affiliate of the Society for Human Resource Management (SHRM?). The interpretations, conclusions and recommendations in this book are those of the author and do not necessarily represent those of the SHRM Foundation.
?2004 SHRM Foundation. All rights reserved. Printed in the United States of America.
This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the SHRM Foundation, 1800 Duke Street, Alexandria, VA 22314.
The SHRM Foundation is the 501(c)(3) nonprofit affiliate of the Society for Human Resource Management (SHRM). The SHRM Foundation advances the human resource management profession and increases the effectiveness of HR professionals through research, innovation and research-based knowledge. The Foundation is governed by a volunteer board of directors, comprised of distinguished HR academic and practice leaders. Contributions to the SHRM Foundation are tax-deductible.
For more information, please contact the SHRM Foundation at 703-535-6020. Online at foundation.
Table of Contents
Forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii About the Author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix Effective Practice Guidelines for Performance Management . . . . . . . . . . . . . . . . . . . . . 1
Methodology for Developing Practice Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Overview of the Performance Management Process . . . . . . . . . . . . . . . . . . . . . . . . 2
Performance Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Ongoing Feedback . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Employee Input . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Performance Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Performance Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Ensure Alignment with Other HR Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Get Organizational Members on Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Communicate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Automate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Pilot Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Train Employees and Managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Evaluate and Improve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Legal Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Summary and Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Sources and Suggested Readings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
iii
Forward
The SHRM Foundation Board of Directors appreciates how difficult it is for HR practitioners to access current research findings and incorporate them into their own human resource practices.
Human resource professionals juggle multiple responsibilities and do not have time to read long research reports, no matter how beneficial. Realistically, most HR practitioners will seek guidance from research findings only if they are presented in a clear, concise and usable format.
To make research more accessible, the SHRM Foundation has created a new series entitled Effective Practice Guidelines. The Foundation will publish new reports on different HR topics each year. You are now reading the first report in the series: Performance Management.
Here is the series concept: A subject matter expert with both research and practitioner experience is selected to prepare the guidelines and the author distills the research findings and expert opinion into specific advice on how to conduct effective HR practice. We believe this new product presents relevant research-based knowledge in an easy-touse format. We look forward to your feedback to let us know if we've achieved that goal.
The author of Performance Management is Dr. Elaine Pulakos, executive vice president and director of the Personnel Decisions Research Institutes (PDRI) Washington, D.C. office. Dr. Pulakos is one of the country's leading experts in performance management, both as a researcher and a consultant, and she has provided the very best guidance available on this topic.
The Foundation board recently created a new vision for the organization: "The SHRM Foundation maximizes the impact of the HR profession on organizational decision-making and performance, by promoting innovation, research and the use of research-based knowledge."
We are confident that this new series of Effective Practice Guidelines takes us one step closer to making that vision a reality.
Herbert G. Heneman III, Ph.D. Director of Research, SHRM Foundation Board Professor, School of Business, University of Wisconsin-Madison
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