Is Performance Management Broken?
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The document outlines an agenda for a meeting of the South African Board for People Practices (SABPP) discussing topics like performance management, HR standards, and HR auditing. It provides information on SABPP's work developing HR competency models and standards to improve consistency and quality in HR practices. The conclusion emphasizes that getting performance management right through standards is key to improved business performance.
Is Performance Management Broken?
- 1. 18 September 2015 Marius Meyer @SABPP1
- 2. Great to be with you!
- 3. Maslow’s needs in 2015
- 4. FOLLOW US ON : @sabpp1 SABPP @siphiwemoyo Chairman @mariussabpp CEO @xolani_mawande COO @SiphiweMashoene Events #hrstandards #sabpp
- 5. AGENDA • Introduction – need for HR Professionalism • Is Performance Management broken? • National Standard on Performance Management • HR Professional Practice Standard on Performance Appraisal • HR Auditing • Conclusion
- 6. Breaking News: SABPP HR Professionals are now Commissioners of Oaths!
- 7. Thank you! Advocate Michael Masutha, Minister of Justice & Correctional Services
- 9. Importance of ethics for HR
- 10. The role of HR …
- 11. SOUTH AFRICAN HR COMPETENCY MODEL STRATEGY TALENT MANAGEMENT HR GOVERNANCE, RISK, COMPLIANCE ANALYTICS & MEASUREMENT HR SERVICE DELIVERY 5 HR CAPABILITIES LEADERSHIP & PERSONAL CREDIBILITY ORGANISATIONAL CAPABILITY SOLUTION CREATION & IMPLEMENTATION INTERPERSONAL & COMMUNICATION CITIZENSHIP FOR FUTURE: INNOVATION, TECHNOLOGY, SUSTAINABILITY CORE COMPETENCIES HR & BUSINESS KNOWLEDGE DUTY TO SOCIETY ETHICS PROFESSIONALISM 4 PILLARS
- 13. Top facts about HR • Human Capital is the biggest concern for CEOs (PwC). • Only 18% of CEOs feel confident that they have the right people in place to execute strategy (CEB). • Human Capital is the biggest risk in business (HCI Africa). • Skills crisis is the top obstacle to economic growth. • Strikes cost SA R 200 million+ per day.
- 14. More facts about HR • SA losing R12 billion a year due to absenteeism. • Only 19% auditors feel they use HR optimally (CG Index – Institute of Internal Auditors) • Only 5% employees understand business strategy. • World-wide 13% of employees actively engaged. • Companies with engaged employees outperform others by 202% (Dale Carnegie). • Companies with good HR Practices outperform others by treating HR as critical business function, these companies are 105% more profitable. • Average ROI on wellness programmes: 300%.
- 15. Is Performance Management broken? • Is the Performance Management System broken? • Is the Performance (Line) Manager broken? • Is the HR Manager broken? • Is the Performance Appraisal broken? • Is the HR value chain broken? • Is the organisation culture broken? • Is the employee broken? • Is society broken? • Is the country broken?
- 16. Operational Management Consistency in the Management of People One of the toughest things to be is consistent
- 17. What are standards really? • A level of acceptable quality • Good enough in terms of professionalism • What is good or normal or usual • A guideline for practice • A foundation for reasonable expectations and sound judgement • A basis for measurement (M&E)
- 18. The reality is …
- 19. 468 HR Leaders developing HR Standards for South Africa
- 20. BUSINESS STRATEGY – HR BUSINESS ALIGNMENT ❶ Strategic HRM ❷ Talent Management ❸ HR Risk Management HR ARCHITECTURE HR VALUE & DELIVERY PLATFORM ❹ Work- force planning ❺ Learning ❻ Perfor- mance ❼ Reward ❽ Well- ness ❾ ERM ❿ OD ⓫ HR Service Delivery ⓬ HR Technology (HRIS) Prepare Imple- ment Review Improve⓭ HR MEASUREMENT HR Audit: Standards & Metrics HRCOMPETENCIES © SABPP HRM SYSTEM STANDARDS MODEL
- 21. HR Standards Files 13 standards (2013) 19 standards (2014)
- 22. HR Professional Practice Standards • Absenteeism management • Career management • Coaching & mentoring • Collective bargaining • Disciplinary procedure • Dispute resolution • Diversity management • Grievance procedure • Leadership development • Learning design • Learning evaluation • Learning needs analysis • On-boarding • Organisation design • Performance appraisals • Recruitment • Remuneration benchmarking • Selection • Succession planning
- 23. BUSINESS STRATEGY – HR BUSINESS ALIGNMENT Strategic HRM 4.7 Talent Management 4.3 HR Risk Management 3.9 FUNCTIONAL & CROSS FUNCTIONAL HR VALUE CHAIN HR VALUE & DELIVERY PLATFORM Work- force Planning 4.1 Learning 5.7 Perfor- mance 5.2 Reward 4.5 Well- ness 5.5 ERM 5.7 OD 4.7 HR Service Delivery 5.4 HR Technology (HRIS) 4.7 Prepare Imple- ment Review ImproveMEASURING HR SUCCESS 3.8 HR Audit: Standards & Metrics HRCOMPETENCIES SELF RATINGS – OVERALL AVERAGE
- 24. BUSINESS STRATEGY – HR BUSINESS ALIGNMENT Strategic HRM 5.9 Talent Management 4.7 HR Risk Management 6.6 FUNCTIONAL & CROSS FUNCTIONAL HR VALUE CHAIN HR VALUE & DELIVERY PLATFORM Work- force Planning 6.2 Learning 6.3 Perfor- mance 6.3 Reward 6.9 Well- ness 5.9 ERM 6.8 OD 5.8 HR Service Delivery 5.3 HR Technology (HRIS) 5.1 Prepare Imple- ment Review ImproveMEASURING HR SUCCESS 4.6 HR Audit: Standards & Metrics HRCOMPETENCIES AUDITED RATINGS – OVERALL AVERAGE
- 25. 20+ Universities
- 27. STANDARD ELEMENT 6 PERFORMANCE MANAGEMENT ❻
- 28. PERFORMANCE MANAGEMENT DEFINITION Performance management is a planned process of directing, developing, supporting, aligning and improving individual and team performance in enabling the sustained achievement of organisational objectives. SABPP (2013)
- 29. PERFORMANCE MANAGEMENT OBJECTIVES 6.2.1 To translate and cascade broad organisational performance drivers into team and individual performance targets. 6.2.2 To establish an appropriate performance management system, process, methodology relevant to the needs, size, scope and complexity of the organisation which will support the development of a performance culture. 6.2.3 To link performance management to other HR processes to align appropriate performance consequences (reward, recognition and development opportunities) that attract, retain and motivate employees and to address poor performance. 6.2.4 To ensure fair, ethical and organisation cultural practices focusing on the achievement of performance targets (that is, a high performance culture) in a sustainable way. 6.2.5 To measure progress against agreed individual and team objectives that enable attainment of organisational objectives. SABPP (2013)
- 30. PERFORMANCE MANAGEMENT SYSTEM PM capability of line, employees and HR MONITOR & EVALUATE Business strategy & plans Performance expectations PM policy and procedure Performance measurement & feedback Consistency Leadership Performance development ENABLERS
- 31. PERFORMANCE APPRAISALS (HR Professional Practice Standard) INPUTS PROCESS OUTPUTS SABPP (2014) PERFORMANCE EXPECTATIONS (CASCADED GOALS & BEHAVIOURS) PERFORMANCE CONTRACTING & MEASUREMENT SYSTEM TRAINED MANAGERS & EMPLOYEES PERFORMANCE CONTRACT AGREEMENT ON RATINGS & IMPROVEMENT PLANS PERFORMANCE MEASUREMENT DISCUSSION ON ACHIEVEMENT PERFORMANCE RATINGS FEED INTO OTHER PROCESSES (TALENT, REWARD) PIPs AND IDPs
- 32. What the Auditors are looking for? Positive trend in results? Sustainable? Targets met? External benchmarks? Approach vs results? Quality of results Across whole organisation? Up and down the organisation? Extent of application Sound? Systematic? Integrated? Reviewed & updated? Quality approach
- 33. 1st Company Audited “The audit process was very insightful and enlightening. It reminded us that we need to make sure that we track every process we execute from end to end. This allows us to be able to constantly check and ensure that our processes stay relevant to the business and people practice standards.” Kholeka Ngubeni-Henderson, HR Executive
- 34. HR Audit - Certification
- 35. Reinventing Performance Management 1. Apply the National Performance Management Standard + PPS on PA (use full cycle) 2. Cascade business objectives to team & individual objectives 3. Develop a performance culture - recognition 4. Train line managers & employees 5. Engage employees in PM - awareness 6. Balance individual & team performance 7. PA is periodic, PM is everyday 8. Develop tangible measures
- 36. The need for consistency and quality
- 37. Conclusion HR standards are needed to improve the consistency and quality of HR management. Getting performance management right is at the centre of the National HR Standards. Let us innovate performance management for improved business performance.
- 38. We set HR standards! professional@sabpp.co.za (Professional Registration) hraudit@sabpp.co.za (HR Audits) events@sabpp.co.za (Stakeholder Relations) penny@sabpp.co.za (Research) naren@sabpp.co.za (Learning & Quality) marius@sabpp.co.za (Strategy inputs) voice@sabpp.co.za (Social media) Website: www.sabpp.co.za Blog: hrtoday.me Office: 8 Sherborne Str, Parktown Tel: 011 045-5400 Fax: 011 482-4830 Cel: 082 859 3593 (Marius Meyer)