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Strategic Human Capital Leadership
        Training Series—Session 3




Productive Work Environments: Creating a
    High Performance Work Culture
Introduction
Jonathan H. Westover, Ph.D.
                    Visiting Fulbright Scholar
                   Belarusian State University
School of Business and Management of Technology MBA Program




Assistant Professor of Management, Woodbury School of Business




 Email: jon.westover@gmail.com; jonathan.westover@uvu.edu
           About Me: about.me/jonathan.h.westover
What we will Cover

This session will address proven best practices and principles of productive
work environments with a focus on creating a high performance work culture.

We will:
1. Define high-performance work systems and identify the elements of such
   a system.
2. Summarize the outcomes of a high-performance work system.
3. Describe the conditions that create a high-performance work system.
4. Explain how human resource management can contribute to high
   performance and the purposes of performance management systems.
5. Compare the major methods for measuring performance.
6. Explain how to provide performance feedback effectively and summarize
   ways to produce improvement in unsatisfactory performance.
How Are We Doing?
           –We are confident that:

1. We know where strategic improvements are needed
   and we ARE making them.
2. We have a performance appraisal system that is both
   accurate and fair.
3. When our best employees choose to leave, our exit
   evaluation process identifies with great clarity why we
   suffered this loss.
4. Our middle management supervisors possess the
   skills required to develop the people entrusted to
   them and have earned the trust of those they serve.
The Challenge of Utilizing Human
               Capital
• How can I get the right people into
  the right job?
• How can I reduce employee
  turnover?
• How can I improve my
  performance management
  process?
• How can I create a high-
  engagement work culture?
• How can I best tap the full
  potential of my employees?
Maximizing Your Human Capital
          Potential
Performance Management

• Performance management:           Stages of the Performance
  the process through which           Management Process
  managers ensure that
  employees’ activities and
  outputs contribute to the
  organization’s goals.
• This process requires:
   – Knowing what activities and
     outputs are desired
   – Observing whether they occur
   – Providing feedback to help
     employees meet expectations
Performance Management
Basic Approaches to
Performance Measurement
Types of Performance Measurement
             Rating Errors
• Contrast errors: the rater compares an individual, not against an
  objective standard, but against other employees.
• Distributional errors: the rater tends to use only one part of a
  rating scale.
   – Leniency: the reviewer rates everyone near the top
   – Strictness: the rater favors lower rankings
   – Central tendency: the rater puts everyone near the middle of the scale
• Rater bias: raters often let their opinion of one quality color
  their opinion of others.
   – Halo error: when the bias is in a favorable direction. This can mistakenly tell
     employees they don’t need to improve in any area.
   – Horns error: when the bias involves negative ratings. This can cause employees
     to feel frustrated and defensive.
Principles of Justice
Progressive Discipline

       Hot-Stove Rule                 Progressive Discipline
Principle of discipline that says   A formal discipline process in
discipline should be like a hot     which the consequences become
stove, giving clear warning and     more serious if the employee
following up with consistent,       repeats the offense.
objective, and immediate
consequences.
Giving Performance Feedback

• Scheduling Performance Feedback
   – Performance feedback should be a
     regular, expected management
     activity.
   – Annual feedback is not enough.
   – Employees should receive feedback
     so often that they know what the
     manager will say during their annual
     performance review.
• Preparing for a Feedback Session
   – Managers should be prepared for
     each formal feedback session.
Giving Performance Feedback—Cont.
• Conducting the Feedback Session
   – During the feedback session, managers
      can take any of three approaches:
   1. “Tell-and-Sell” – managers tell
      employees their ratings and then justify
      those ratings.
   2. “Tell-and-Listen” – managers tell
      employees their ratings and then let the
      employees explain their side of the
      story.
   3. “Problem-Solving” – managers and
      employees work together to solve
       performance problems.
Improving Performance
High-Performance Work Systems

• High-performance work system – the right combination of people,
  technology, and organizational structure that makes full use of the
  organization’s resources and opportunities in achieving its goals.
• To function as a high-performance work system, each of these
  elements must fit well with the others in a smoothly functioning
  whole.
Outcomes of a High-Performance
        Work System
Key Features of Learning
                   Organizations
1.   Continuous learning – each employee’s and each group’s ongoing
     efforts to gather information and apply the information to their
     decisions.
2.   Knowledge is shared – one challenge is to shift the focus of training
     away from teaching skills and toward a broader focus on generating
     and sharing knowledge.
3.   Critical, systemic thinking – is widespread and occurs when
     employees are encouraged to see relationships among ideas and
     think in new ways.
4.   Learning culture – a culture in which learning is rewarded,
     promoted, and supported by managers and organizational
     objectives.
5.   Employees are valued – the organization recognizes that employees
     are the source of its knowledge. It therefore focuses on ensuring the
     development and well-being of each employee.
The 10 Key Steps in Developing an Effective
    Performance Management Strategy
1.  Define what's driving the need for a performance management
    solution
2. Determine your strategy for moving forward.
3. Align your business units with your strategy.
4. Agree on what kind of people you have in the company and what
    kind of people you need
5. Evaluate employees on consistent criteria.
6. Close the loop and give workers a sense of how they fit into the
    company's strategy, or don't.
7. Give employees an opportunity for career growth.
8. Link workers' skills to the job roles.
9. Encourage people to behave in a way that will carry the company's
    goals forward.
10. Identify gaps and monitor these over time.
                    Source: www.sumtotalsystems.com
QUESTIONS?
Jonathan H. Westover, Ph.D.
                    Visiting Fulbright Scholar
                   Belarusian State University
School of Business and Management of Technology MBA Program




Assistant Professor of Management, Woodbury School of Business




 Email: jon.westover@gmail.com; jonathan.westover@uvu.edu
           About Me: about.me/jonathan.h.westover

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Performance Management by Jonathan Westover

  • 1. Strategic Human Capital Leadership Training Series—Session 3 Productive Work Environments: Creating a High Performance Work Culture
  • 2. Introduction Jonathan H. Westover, Ph.D. Visiting Fulbright Scholar Belarusian State University School of Business and Management of Technology MBA Program Assistant Professor of Management, Woodbury School of Business Email: jon.westover@gmail.com; jonathan.westover@uvu.edu About Me: about.me/jonathan.h.westover
  • 3. What we will Cover This session will address proven best practices and principles of productive work environments with a focus on creating a high performance work culture. We will: 1. Define high-performance work systems and identify the elements of such a system. 2. Summarize the outcomes of a high-performance work system. 3. Describe the conditions that create a high-performance work system. 4. Explain how human resource management can contribute to high performance and the purposes of performance management systems. 5. Compare the major methods for measuring performance. 6. Explain how to provide performance feedback effectively and summarize ways to produce improvement in unsatisfactory performance.
  • 4. How Are We Doing? –We are confident that: 1. We know where strategic improvements are needed and we ARE making them. 2. We have a performance appraisal system that is both accurate and fair. 3. When our best employees choose to leave, our exit evaluation process identifies with great clarity why we suffered this loss. 4. Our middle management supervisors possess the skills required to develop the people entrusted to them and have earned the trust of those they serve.
  • 5. The Challenge of Utilizing Human Capital • How can I get the right people into the right job? • How can I reduce employee turnover? • How can I improve my performance management process? • How can I create a high- engagement work culture? • How can I best tap the full potential of my employees?
  • 6. Maximizing Your Human Capital Potential
  • 7. Performance Management • Performance management: Stages of the Performance the process through which Management Process managers ensure that employees’ activities and outputs contribute to the organization’s goals. • This process requires: – Knowing what activities and outputs are desired – Observing whether they occur – Providing feedback to help employees meet expectations
  • 10. Types of Performance Measurement Rating Errors • Contrast errors: the rater compares an individual, not against an objective standard, but against other employees. • Distributional errors: the rater tends to use only one part of a rating scale. – Leniency: the reviewer rates everyone near the top – Strictness: the rater favors lower rankings – Central tendency: the rater puts everyone near the middle of the scale • Rater bias: raters often let their opinion of one quality color their opinion of others. – Halo error: when the bias is in a favorable direction. This can mistakenly tell employees they don’t need to improve in any area. – Horns error: when the bias involves negative ratings. This can cause employees to feel frustrated and defensive.
  • 12. Progressive Discipline Hot-Stove Rule Progressive Discipline Principle of discipline that says A formal discipline process in discipline should be like a hot which the consequences become stove, giving clear warning and more serious if the employee following up with consistent, repeats the offense. objective, and immediate consequences.
  • 13. Giving Performance Feedback • Scheduling Performance Feedback – Performance feedback should be a regular, expected management activity. – Annual feedback is not enough. – Employees should receive feedback so often that they know what the manager will say during their annual performance review. • Preparing for a Feedback Session – Managers should be prepared for each formal feedback session.
  • 14. Giving Performance Feedback—Cont. • Conducting the Feedback Session – During the feedback session, managers can take any of three approaches: 1. “Tell-and-Sell” – managers tell employees their ratings and then justify those ratings. 2. “Tell-and-Listen” – managers tell employees their ratings and then let the employees explain their side of the story. 3. “Problem-Solving” – managers and employees work together to solve performance problems.
  • 16. High-Performance Work Systems • High-performance work system – the right combination of people, technology, and organizational structure that makes full use of the organization’s resources and opportunities in achieving its goals. • To function as a high-performance work system, each of these elements must fit well with the others in a smoothly functioning whole.
  • 17. Outcomes of a High-Performance Work System
  • 18. Key Features of Learning Organizations 1. Continuous learning – each employee’s and each group’s ongoing efforts to gather information and apply the information to their decisions. 2. Knowledge is shared – one challenge is to shift the focus of training away from teaching skills and toward a broader focus on generating and sharing knowledge. 3. Critical, systemic thinking – is widespread and occurs when employees are encouraged to see relationships among ideas and think in new ways. 4. Learning culture – a culture in which learning is rewarded, promoted, and supported by managers and organizational objectives. 5. Employees are valued – the organization recognizes that employees are the source of its knowledge. It therefore focuses on ensuring the development and well-being of each employee.
  • 19. The 10 Key Steps in Developing an Effective Performance Management Strategy 1. Define what's driving the need for a performance management solution 2. Determine your strategy for moving forward. 3. Align your business units with your strategy. 4. Agree on what kind of people you have in the company and what kind of people you need 5. Evaluate employees on consistent criteria. 6. Close the loop and give workers a sense of how they fit into the company's strategy, or don't. 7. Give employees an opportunity for career growth. 8. Link workers' skills to the job roles. 9. Encourage people to behave in a way that will carry the company's goals forward. 10. Identify gaps and monitor these over time. Source: www.sumtotalsystems.com
  • 20. QUESTIONS? Jonathan H. Westover, Ph.D. Visiting Fulbright Scholar Belarusian State University School of Business and Management of Technology MBA Program Assistant Professor of Management, Woodbury School of Business Email: jon.westover@gmail.com; jonathan.westover@uvu.edu About Me: about.me/jonathan.h.westover