Integrated Performance Management Policy Framework
City University
Integrated Performance Management Policy Framework
Introduction
Purpose and rationale
The purpose of this document is to explain what is meant by “performance management” at City University, to outline what the performance management framework is and to explain how it works.
It is important to remember that this document is written from a position of best practice and it is recognised that City University may not immediately be in a position to fully embrace some of the elements of this framework. For example, some policies referred to (e.g. capability) have yet to be fully developed and implemented. This is due to constraints by which City is currently affected which are outside our control.
It is anticipated that this framework will be promulgated through various mechanisms. The dissemination process will be use to clarify the structure and content of the framework, to support colleagues in its implementation and to encourage managers and staff to embrace our “best practice” position where they are able.
Definition - performance management
Performance management is the process through which organisations deliver lasting improvement. It does this by ensuring individuals, teams, and ultimately the organisation, know what they should be doing, how they should be doing it and take responsibility for what they achieve. It is about placing the emphasis on managing, supporting and developing staff at all levels within the organisation. An integral part of this is the need to monitor performance, reward staff that perform well, and challenge those who do not.
For performance management to work well it is crucial that employees fully understand the organisation’s key corporate objectives, the reasons behind them and what contribution they all make to achieving them. It is also crucial that we develop all our staff at every stage of their careers in order to help them realise their full potential.
Organisational requirements
Effective performance management requires an ongoing 'dialogue' with staff. A number of simultaneous actions are needed to help develop an organisational attitude where performance is managed well and really leads to service improvement. They include:
• Clarifying the benefits of really making an effort to manage and improve performance, as employees need to know how it can help them deliver.
• Making sure employees know the key organisational objectives and priorities, what they should focus on and how they can contribute.
• Ensuring that employees who perform well are rewarded and those who under-perform are challenged.
It is critical that City 'backs up' what we say about performance by what we do. Employees are then more likely to feel that the way they are dealt with is fair and open and will also take the issue more seriously.
The performance management process
Clear, consistent systems and procedures are needed to support the ongoing dialogue with employees on performance management and provide feedback on how this is impacting on delivery. The emphasis should be on developing an approach tailored to help the organisation and its employees to perform well which is not too complex for the benefits it delivers. Whatever the approach, everyone should know where to find information about performance management and be able to access it whenever they need to.
Performance management needs to operate at organisational, team and individual level if it is to be effective. This means that organisational objectives inform the development of team and individual objectives, but also that individuals and teams are able to feedback issues from the “front-line” in order to support the development of future organisational objectives and plans. Using this approach helps to ensure that support and development opportunities are appropriate, helps to identify any barriers to implementation and can assist with determining better measures of effective performance.
Benefits of performance management
Having an effective performance management system has multiple benefits for organisations, ultimately resulting in the organisation being better at whatever it does. Firstly, it means everyone knows where the organisation is going, as there is a clear focus on key objectives and priorities. Secondly, it makes work more satisfying for employees because they know what is expected of them, how this fits into the bigger picture and that support is available to help them to perform well. Thirdly, because the whole emphasis is on meeting set criteria and meeting targets, it is easier to monitor how individuals and areas are performing and to take action to intervene and improve where necessary. Finally it helps organisations to meet their legal responsibilities in employment in terms of health and safety, equality and diversity.
A performance management approach that recognises and promotes diversity, whilst supporting fairness and equity will ensure that people are selected and developed on the basis of their capability to do the job.
The performance management framework
Performance management is a cycle within which a range of individual but potentially linked processes operate. The overarching framework identifies and integrates all of the individual elements of the performance management process within the context of the strategic aims and direction of the university as a whole.
Integrated Performance Management Policy Framework
POLICY AND SCOPE
1. Statement of Policy
1.1 City University recognises that its staff are its greatest asset and are key to its ability to deliver its strategic objectives. The effective application and development of individuals’ skills, knowledge and abilities should enable City University to:
(i) lead, create, and deploy City’s talent and resources to achieve its strategic aims, thereby delivering on its mission to be the University for business and the professions; and
(ii) be a leading influence on individual staff members’ development and future careers.
1.2 An important mechanism for enabling staff to contribute fully in achieving the University’s goals is a quality performance management system.
1.3 The purpose of this integrated performance management framework is to provide a clear, coherent, fair and equitable framework for managers to use throughout any phase of the performance management process. It makes explicit the policies to be used in support of achieving desired outcomes for both the individual staff member and the area or team to which the employee belongs.
1.4 At the heart of City’s performance management strategy is the aim to foster a culture in which staff are empowered to manage their own performance and results through discussion and agreement with their manager.
1.5 The University recognises that the development of such a culture will take time to evolve, but it can be achieved through the establishment of a working environment based on open and constructive feedback and support in which staff are encouraged to identify and address performance issues for themselves. This principle applies at the individual, team and university level thereby creating a clear link between performance and individual, area and corporate plans.
1.6 This policy framework promotes an holistic approach to performance management by incorporating all aspects of performance management within a single integrated framework. Induction, probation, appraisal, mentoring, promotion, career development, succession planning, rewards, capability and discipline are included. It encapsulates the underlying principle that performance is an on-going process that takes place from the time an employee joins the organisation until they leave and should be used in that time to support and develop people throughout their employment with the University.
1.7 Performance management should, by its very nature, embody the positive aspects of performance and while it is accepted that there will be cases of poor performance, these are relatively rare. A model which empowers staff to manage and assess their own performance affords the employee a much greater role in determining her or his goals and targets within her or his area and relating these to broader organisational objectives.
1.8 The model of performance management promulgated by the University is one that integrates the management of organisational, team and employee performance. It acknowledges the importance of recognising and rewarding good performance. This model also seeks to link performance to rewards thereby establishing clear connections between behaviour and outcomes. The University’s Human Resource Strategy espouses the concept of a total rewards strategy, that is, an approach which incorporates benefits which may be financial or non-financial in nature.
2. Scope
2.1 This framework applies to all staff of the University.
3. Managing Performance in a university context
3.1 In developing this framework careful consideration has been given to the context in which the university must operate and the implications of these factors for effective performance management:
• the teaching, research and service context within which City operates is dynamic and this framework has therefore been developed to facilitate adaptation to changes in the circumstances of individuals, teams, areas and the University as a whole.
• the University achieves its goals through effective sharing and development of learning between individuals and teams with different roles in the University.
• the University, funded by students, government, non-government and private bodies, has an obligation to address the requirements of these stakeholders. Furthermore, these stakeholders increasingly expect institutions like City to be able to demonstrate effective performance at both the macro and micro levels.
• City’s workforce profile should have sufficient variety and complexity to match that of its stakeholders and of the environment within which it operates, this is an explicit objective of the University’s human resource strategy.
• the University sets goals and should provide feedback to staff on how their performance is meeting their objectives and make explicit the links to area and University goals, as facilitated by this framework.
• staff most effectively manage their own behaviour and results when given appropriate information with which to make a judgment, the skills to organise themselves and honest, descriptive feedback, these approaches are incorporated in this framework.
• a creative and inspiring environment is more likely to be achieved with open communication.
• individuals, teams and the University need to collect and organise information in order to monitor and improve performance; information from the area plans of schools, institutes and central management portfolios will begin to provide that collective intelligence at area level and, over a period of time, at university level, in a way that can support future planning and resourcing decisions.
• achieving City University’s goals depends on staff having and renewing the skills, knowledge and commitment to their role, this framework encourages such an approach.
Performance Management Context
Performance management is an holistic process which follows a logical succession of stages beginning with recruitment and selection, induction and probation and, through a process of continuous assessment leading to, where appropriate, promotion and reward. The framework facilitates explicit links between each phase of the performance management process, e.g. appraisal outcomes will be used to inform the promotion process along with other relevant data and acknowledges occasions when capability and disciplinary procedures may need to be invoked.
The performance management process involves the communication to individuals of the departmental aims and objectives most directly relevant to them and supporting and directing them in identifying areas in which they can best make a contribution and then supporting and developing them, both professionally and personally, so that they can optimise that contribution. The individual elements of the performance management that support this process are:
Induction - the process by which people are inducted into the organisation and made aware of culture, behavioural norms and performance expectations.
Probation - the process by which performance against these expectations is supported, monitored and evaluated, culminating in a decision to confirm or terminate employment.
Appraisal - an iterative process by which development and contribution is continuously evaluated against agreed performance and developmental objectives
Training and development - the processes by which people are supported in developing the skills and behaviours required for successful execution of their performance objectives, as well as their longer-term work and career objectives.
Mentoring - a developmental process by which employees receive confidential one-to-one support and guidance from a more experienced colleague through an ongoing mentoring relationship.
Capability procedure - an iterative process by which apparent capability issues are discussed and guidance and support offered to bring performance up to standard. The capability procedure may lead to disciplinary action if development and support options have been exhausted and performance has not reached satisfactory levels.
Disciplinary procedure - a process which is invoked in order to address misconduct or persistent poor performance, including performance issues which may initially have been dealt with via the capability procedure.
Whilst performance management is clearly about what happens to individuals once they have joined the organisation, it also has implications for their recruitment. By ensuring that we clearly communicate the aims, priorities and values of our organisation to potential employees at the recruitment stage, we can help to ensure that we appoint “congruent” people; people who readily identify with our aims and objectives and who feel able to commit themselves to helping us achieve these.
Each phase of interaction above is addressed through formal and informal meetings between the line manager and the employee, enabling a clear two way channel of communication and feedback. It may also be appropriate and even necessary to involve other parties at certain points in these processes. For example, 360 degree feedback is gaining support as an effective means of acquiring useful feedback on individual performance.
4. Principles
4.1 An effective performance management system needs to facilitate alignment between the strategic direction of the University, its various organisational units and teams, and the performance of individual members of staff, while also ensuring that the core principles upon which it is founded provide for a fair, equal and open process for assessing, monitoring and reviewing performance. The University regards its obligations and those of its managers as being governed by the following principles:
(i) engaging people with the skills, knowledge, abilities, professional credentials and values that are congruent with those of the University.
(ii) sharing information about the University direction, stakeholder requirements, individual roles and expected outcomes or team objectives to enable continuous improvement in the context of changing internal and external demands.
(iii) facilitating communication and relationships to support creative debate that improves outcomes.
(iv) valuing individual scholarship and professional activity.
(v) managing staff respectfully through processes that are procedurally fair, transparent and encourage flexibility and responsiveness in work arrangements.
(vi) developing staff and organisational capabilities to reach the University’s goals and targets.
(vii) providing honest, evidence-based feedback to enable monitoring and adjustment of performance.
(viii) motivating staff to perform at a high level with pride in their achievements and applying appropriate consequences, including staff benefits and rewards, based on the outcomes achieved.
(ix) resolving differences in staff or organisational issues by applying fair, respectful and efficient review processes and mechanisms.
(x) preserving confidentiality during the whole process and disseminating formal reports to only those staff or departments named within each policy, normally the line manager and, where appropriate, the HR / Organisational and Staff Development team.
4.2 Different approaches may be necessary to meet local area needs in addition to university-wide requirements, but adherence to the above principles will be essential to ensure consistency and accountability, even if documentation has to be adapted to suit local area needs.
5. Fair rewards systems
5.1 All employees already receive a salary commensurate with expected standards of performance. Additional remunerative rewards maybe offered to individuals or teams in return for specific performance. In developing a system of linking rewards more clearly with team or individual achievements, the policy and operational principles enumerated below must be followed:
• clearly distinguish additional rewards that are associated with a role (such as those that might attract a market rate supplement or discipline loading), and those associated with a team or individual’s high achievement;
• be demonstrably fair and transparent in its application, and operate on the principle that there should be ‘no surprises’ during the formal feedback process where the level of reward is discussed;
• be generous but sufficiently demanding;
• balance incentives with guaranteed rewards;
• be justifiable to internal and where appropriate, external stakeholders;
• be based on agreed quantitative and qualitative dimensions of specified outcomes, to be achieved within a specified time period;
• be explicitly linked with relevant corporate objectives;
• be sensitive to the team work dimensions of an individual’s capacity to achieve specified objectives;
• be supported by appropriate staff and management development for those who will apply the scheme;
• be informed explicitly by relevant employment law, including the body of equal opportunity employment law;
• be clear in informing employees about how the scheme works and how it informs their pay; and
• be carefully monitored and reported on to ensure that practice is consistent with the above characteristics to ensure that there is no bias or potential for bias.
5.2 Rewards may be remunerative and non-remunerative;
(a) remunerative rewards may take the form of promotion, regradings and the payment of advanced or discretionary increments. These are already reflected in well established HR policies at City, for example those relating to the Remuneration Committee which determines Professorial and SALC 6 salaries;
(b) non-remunerative rewards may include flexible working arrangements and support for one’s academic or professional development in the form of sabbatical leave, study leave and/or financial support.
5.3 It is intended that this policy framework will ensure that appraisal will apply to all staff and that information arising from appraisal discussions can be used in salary review processes for all staff.
5.4 It is recognised that all rewards, whether financial or non-financial in nature, still carry resource implications and, as such, the level of rewards will be based on the principle of affordability. The nature, type and size of rewards offered by the University will be reviewed from time to time based on this criterion.
5.5 A key feature of this framework is to provide an explicit link between performance and rewards. City University believes that this link will best be achieved through the introduction of contribution-based pay for all staff, to be developed as a fundamental element of the University's Reward Strategy. Contribution-based pay is designed to ensure that the arrangements for managing pay are clear, transparent and objective.
6. Monitoring and Review
6.1 This integrated performance management policy framework will be reviewed in two years time to assess its effectiveness.
6.2 Equity and parity of treatment will be demonstrated by regular reports to the University’s Audit and Compliance Committee detailing rewards by employee group, gender and race and, where information is available, disability. Transparency and fairness will be monitored and action taken where issues emerge.
Approved by the University Secretary
Date February 2006
Integrated Performance Management Policy Framework
PRACTICAL APPLICATION
1. The Performance Management Process
Performance management begins with the expectation that all managers will play a prominent role in attracting the best people to the organisation. By ensuring that we clearly communicate the aims, priorities and values of our organisation to potential employees at the recruitment stage, we can help to ensure that we appoint people who readily identify with our aims and objectives and who feel able to commit themselves to helping us achieve these. Thereafter, it should be regarded as a participative process between the employee and line manager jointly setting goals and reviewing progress towards their achievement.
The process helps to prioritise work and provides on-going feedback on progress made. It enables staff to see how their work has contributed to the achievement of clear outcomes and to organisational success, whether at area or university level. The link with rewards is an important issue and this policy provides a clear framework which articulates the link between performance and reward.
This framework is underpinned by a range of interrelated policies covering induction, probation, appraisal, mentoring, promotion, career development, succession planning, rewards, capability and discipline. These policies each contain their own detailed advice to guide managers in the implementation of that policy.
The Performance Management Cycle
The performance management process is cyclical, consisting of three stages:
1. Defining and Planning: identifying what type of performance is required and how it can be met.
2. Delivering and Monitoring: providing appropriate support and development and checking progress.
3. Evaluating: assessing whether or not performance is to the required standard, recognising where standards have been met and seeking improvements where they have not.
At any of the three stages of the performance management cycle, at least one of a range of formal processes will be operating.
2. The Individual Formal Processes
2.1 Each element of the performance management framework may be defined as representing different processes and/or cycles within that. These processes are based on a sequence of formal meetings held between the manager and the employee conducted in accordance with the relevant policy, and may be illustrated as follows:
-Performance Management process 1 – Induction/probation. This process starts with the induction meeting with the manger and ends with the probation meeting at which employment is confirmed. From here, the appraisal cycle will take over.
-Performance Management process 2 – Appraisal Cycle.
Each appraisal cycle begins and ends with a formal performance appraisal review meeting.
In a performance management culture these processes will apply to all staff at some time during their employment at City. Currently all appraisals are conducted from June to the end of September.
There are other aspects of the performance management process that will apply in respect of poor performance or misconduct. These may be depicted as follows:
- Performance Management Process 3 – Capability.
Each capability process begins when the capability procedure is invoked because an employee has not performed to the standard required. It ends with the final review meeting at which capability can be agreed to have reached the required standard, or where the disciplinary process is invoked.
- Performance Management Process 4 – Disciplinary.
Each disciplinary process begins when the disciplinary procedure is invoked because of poor performance or unacceptable behaviour. The disciplinary process ends when formal agreement is reached or employment terminated.
2.2 Formal Meetings
Whilst each process will have its own detailed guidance on good practice, the formal meetings that characterise the cycles should comply with the following generic guidelines. The purpose of each meeting will be to address some or all of the points in the table below, depending on the type of meeting and its level.
Formal Meetings - Good Practice Guideline
Relevant Performance Management Process is indicated in brackets.
Allow at least an hour for the meeting which should be conducted in a venue allowing for full and uninterrupted discussion and have a clear plan for the meeting.
(All)
Review the role – The pre-meeting held prior to an appraisal provides an opportunity to clarify the process, check understanding and expectations and confirm that the employee’s job description is up-to-date;
(Appraisal)
Define objectives - define and agree a realistic set of objectives which are aligned to the area and, therefore, University objectives. Discuss the contribution made by the employee to the fulfilment of the area’s aims and objectives, this should focus on developing people to meet their full potential as this serves to achieve a balance between those factors which the individual finds personally satisfying while also meeting the goals of the area and agree relevant competencies where applicable.
(Induction/probation, appraisal)
The employee may wish to bring other information to the meeting which is relevant to the discussion, e.g. quantity and quality of teaching or research, contribution to course curriculum development, grants attracted, involvement with external professional bodies, and successful completion of a project.
(Induction/probation, appraisal, capability, discipline)
Agree performance indicators - agree specific, measurable, realistic, attainable performance indicators and realistic timeframes within which to achieve these (SMART) objectives;
(Induction/Probation, Appraisal, capability, discipline)
Set review periods - agree interim and final review periods;
(All)
Assess, monitor and provide feedback - discuss progress: the manager should provide constructive feedback, ensuring open, thoughtful, supportive but challenging (where appropriate) discussion; recognise progress made; recognise organisational constraints; be clear about whether objectives and expectations are being met;
(Induction/probation Appraisal, capability, discipline.)
Allow employee to seek feedback – encourage and provide ample opportunity for the employee to seek further advice and feedback;
(All meetings, as appropriate.)
Identify shortfalls and propose appropriate support - identify aspects of performance where there are shortfalls in meeting agreed objectives, how these need to be addressed and, where appropriate, the support that will be provided; take joint decisions on the process for taking forward these issues;
(Appraisal, probation, capability, discipline.)
Discuss career and professional development - discuss future plans in the context of the employee’s career development and the plans of the school, institute or central management portfolio;
(Probation, Appraisal)
Discuss appropriate remunerative or non-remunerative rewards - discuss whether the employee’s performance merits a reward under the framework;
(Appraisal – once reward strategy has been developed)
Record decisions - ensure all objectives, staff development proposals and other decisions are recorded on the relevant section of the paperwork. Forms should be signed by both parties; an employee can record her or his agreement or dissension.
(Induction, probation, appraisal, capability, discipline.)
4. Informal processes
Effective performance management is an ongoing activity and an integral part of leadership and management. It is not intended to operate as a “bolt on”, formal set of policies and procedures which incur an additional burden to those involved. The formal processes are intended to offer structure, clarity and consistency to management activity that should, in best practice terms be happening as a matter of course. In addition, much of it will take place informally.
4.1 Informal processes play a key role in performance management. They provide a useful and important means of maintaining momentum, between formal discussions, without the process becoming overly bureaucratic.
4.2 Informal processes may take the form of meetings in which the line manager and staff member engage in positive discussions to consider progress, address any organisational constraints and identify interim actions required by either person to ensure continued progress in that area of work. Such on-going discussions lead to a greater sense of achievement for the individual staff member and provide a good indication of the area’s overall performance in relation to its own area plan.
4.3 Informal processes may also take the form of occasional more “casual” enquiries by the manager as to how the employee is progressing and whether there are any issues on which they need support. This can be motivating for the employee and helps to dispel the notion that performance management is nothing more than an occasional and isolated appraisal meeting or something that happens when things go wrong.
5. The role of the employee
5.1 The employee is required to:
(i) ensure that s/he is familiar with the performance management framework;
(ii) ensure that s/he takes all reasonable actions to be able to meet her/his objectives within the timescales agreed;
(iii) accept responsibility for her/his own academic and professional development where this has been agreed in the performance management meeting, including undertaking any development activities or taking forward other actions identified as being the responsibility of the employee.
It is important to remember that performance management is an ongoing, dynamic process with provision to reassess objectives in the light of changing internal and external factors such as changes in practice or resources
6. Commitment to staff development
6.1 The University is committed to providing appropriate staff and management development to support staff in the performance of their roles, subject to area level priorities and available resources.
7. Other Relevant Human Resource Policies
Access to all current relevant Human Resource Policies can be found on the below websites
8. Levels of authority – performance management meetings will be conducted by a member of staff’s line manager.
9. Other useful websites
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