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Individual Performance Systems: Effective
Performance Management Systems for
Small States
Rosemund R. Warrington
CARICAD
November 3, 2009
• The Context and framework for
Performance Management
• The Case for Change
• The Performance Management Cycle
• Problems with PM systems in the
Caribbean
• CARICAD’s model
• Requirements for Success
Doing Business in the OECS
The Context for Change:
Changing Citizen Expectations
Universality of Public Sector Reform
Shrinking Resources
New Technology
External
pressures for
change
Globalization
Public Services
Demographics & Skills
Enterprising Internal Processes
Increasing Use of Technology
Government Agenda
Internal
pressures for
change
Implications for HR Management
• Effective responses to the economic crisis should be
identified
• Training, re-training and re-tooling of employees
• Managing performance in the context of an
economic crisis
• Strengthen areas of efficiency, reduce inefficiency
and waste
• Quality service delivery
• Recognise the importance of labour productivity for
overall economic growth and development
Source: Kari Grenade
Economist, Eastern Caribbean Central Bank, 2009
WHAT IS PERFORMANCE
MANAGEMENT?
• Performance Management has been
defined as a “Strategic and Integrated
Approach to delivering sustained success
to organizations by improving
performance of people who work in them
and by developing the capabilities of
teams and individual contribution”.
(Armstrong and Baron)
Performance Model -
Organizational and individual
Performance Interdependence
Government
Performance
Organization
Performance
Unit
Performance
Leadership
Performance
?
Programme
Performance
?
Team
Performance
Individual
Performance
Ref: Denis Ives, CAPAM 2005
STRATEGIC HRM MODEL: A Strategic Fit
NATIONAL PLAN
ORGANISATIONAL PLAN
Guides Strategy
and Policy
Influences
Performance
UNIT PLAN
INDIVIDUAL PLAN
Training
&Dev.
Performance
Mgmt
R. Warrington, CARICAD
Rec.&
Selection
Employee
Relations
HR Planning /
ICT
Compensation
Health &
Safety
Are Employees aligned to the
Strategy?
If employees do not know their part of the plan,
They have no direction
Meaning they are disengaged and not focused
More than 30% of employees in
organizations are disengaged
• Disengaged employees are
disinterested and unproductive
• D
COMPLEXITY OF PERFORMANCE
MANAGEMENT
Developmental
Feedback
Technical
Aspects
Design of an Appraisal System
Interpersonal
Aspects
Appraisal Interviews
Administrative
Promotion, Pay
Performance Management
Cycle
Planning
Managing
Reviewing
Performance Management Cycle
Planning
• Set Goals
• Establish and communicate
elements and standards
Performance Management Cycle
Managing/Developing
• Measure performance
• Provide feedback
• Conduct progress review
• Address poor performance
•Improve good performance
Performance Management Cycle
Reviewing
• Summarize performance
• Assign the rating of record
• Recognize and reward good
performance
PERFORMANCE REVIEW METHODS
• 360-Degree
Evaluation
• 720 –Degree
Evaluation
• Rating Scales
• Critical Incidents
• Essay
• Performance
Contracts
• Ranking
• Paired Comparisons
• Behaviourally
Anchored Rating
Scales (BARS)
• Result-Based
Systems
Problem with Systems of
appraisal in the Caribbean
• No clear relationship between performance
and the overall objectives of the organization
• No clear system of job description in place in
these territories
• Ministries have not worked out their own
objectives or the necessary structures for the
"new" systems of appraisal
• Concern with strategic planning in the public
sector is a recent phenomenon
• No overall plan for personnel relations at the
national level and changes were accordingly
introduced in an ad hoc manner
• The structure and culture of the public services
themselves
• Cost- Some governments just did not have the
resources to reward enhanced performance
Source:The Introduction of New Appraisals Systems in The Public Services of the
Commonwealth Caribbean-Public Personnel Management Journal, Summer, 2000
From my personal knowledge of
how it works…
• Employees are graded on a “bell curve,” so that most
workers are rated average or below average,
regardless of the absolute level of their performance
• Employees have little input into the performance
goals set for them.
• Performance appraisal is seen by managers and
employees as a bureaucratic “paperwork” exercise
that they do not take seriously because it has little
impact on employee performance or development.
• Employees see nothing in the system for them; performance
appraisals do not address their questions about skill
development or career advancement
• The performance management system does not reflect or
reinforce the organization’s strategy
• Performance ratings are very often inflated.
Structure AND Culture
STRUCTURE
CULTURE
 Bureaucratic

Weak Internal Communication
 Functional Silos

Poor Management/Employee
Relations

High Mistrust of Management
– Management/Employee
Disconnect

Poor Human Resource
Management Practices

Poor Leadership and
Management Practices
 Chain of Command
 Pyramidal
Source: Dr. Kwame R. Charles
Quality Consultants Limited, Trinidad &
Tobago
Leadership and Management
 Lack of Respect
 Lack of Fairness & Consistency of
Treatment
 Power by Position
 Command & Control…
WHAT EMPLOYEES SAY WILL IMPROVE
THEIR JOB PERFORMANCE
Customer
Focus
3%
Supervision
2%
Other
7%
No Answer
5%
Compensation
3%
Mgmt/
Employee
Relations
15%
Leadership &
Mgmt
13%
Deals with
Change
3%
Co's Goals &
Objectives
4%
Comm
Job Satisfaction
HR
Practices
8%
12%
11%
Source: Dr. Kwame R. Charles
Quality Consultants Limited, Trinidad &
Tobago
Work Proc
& Practices
14%
A NEW MODEL FOR
PERFORMANCE MANAGEMENT
AT CARICAD
Competency based Performance Management
• Considers the HOW of performance
• Qualitative assessment
• Oriented to the future and focused on
development
Integral HR
CARICAD’S MODEL OF CPM
• Performance is viewed in terms of the process
employees use to achieve their Job results
• It combines planning, management and
appraisal of both performance results and
competency behaviours
• It assesses what employees accomplished and
how they did it
Competency Matrix for CARICAD
Competence
Description
Quality of Work
Work is consistent, thorough and
complete
Drive for Results
Deadlines are consistently met and
results are demonstrable
Job Knowledge
Understands the job requirements
and has specific content knowledge
where appropriate
Learning Ability,
Is able to adjust to new methods
Initiative and Flexibility and procedures, and learn new
tasks and duties and use initiative
Competence
Description
Communication and
Teamwork
Communicates effectively. Is a
positive contributor to teams
Attitude and Service
Communicates effectively. Is a
positive contributor to teams
Leadership
The ability to work with people to
build high morale and group
commitment to goals and objectives
Future Performance Management Issues
• How do we move from “silos to systems”?
• How can we inform and influence initiatives to
improve performance of public services?
What’s the Transformation?
• A systems-wide scope that is more
balanced, targeting competence,
capacity, process and outcomes
TOWARDS A MORE EFFECTIVE PERFORMANCE
MANAGEMENT SYSTEM
SUCCESS =
Sensitivity
+
Reliability
+
Acceptability
+
Practicality
Requirements for Success
• Vision and Strong leadership/managerial support and
commitment
• Department /Unit Roles and Mandates, Accountability
• Organizational Cultural Change
• Training
• Mutual trust,
•
•
•
•
Job relatedness
Documentation
Feedback and participation
Involvement and ownership by staff