Human Capital Engineering (More Than an Annual Performance Review)

By:  Murray Brookman

As manager or supervisor, one of your major goals is to develop the capacity of your employees to perform. Human Capital Engineering (the new phrase for Performance Management) is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Human Capital Engineering is a complete work system that begins when a job is first defined, and ends when an employee leaves your organization. Many people incorrectly use the term “Performance Management” as a substitution for the traditional appraisal system when it in fact refers to this broader work system.  

Human Capital Engineering system includes at least the following actions:

• Develop a clear job description that identifies and defines the competencies necessary to perform a job effectively

•  Select appropriate people with an appropriate selection process

•  Negotiate requirements and accomplishment-based performance standards, outcomes and measures

•  Provide effective orientation, education and training

•  Provide on-going coaching and feedback

•  Conduct periodic and regular performance development discussions (i.e. quarterly)

•  Design effective compensation/recognition systems that reward people for their contributions

•  Provide promotional/career development opportunities for staff

•  Identify future organizational needs and corresponding development and succession plans

•  Conduct exit interviews to understand why valued employees leave the organization

Human Capital Engineering can therefore be thought of as a continuous cycle:

1. Performance planning where goals, objectives and expectations are established

2. Performance training where needed information and skills are transferred

3. Performance delegation where work assignments are made

4. Performance coaching/counseling/progressive discipline where a manager intervenes to give feedback and adjust performance

5. Performance appraisal where individual performance is formally documented and feedback delivered

In today’s fast-changing economy, human capital has become a key source of competitive advantage. A comprehensive Human Capital Engineering process can help your organization select, direct, assess and develop your people so that you can achieve your bottom line goals and maximize your human capital advantage.

The Human Capital Engineering process will align the strategic objectives of your organization with your key HR business processes. You can use this information to:

• Perform individual and organizational analysis

• Reduce education costs

• Improve hiring practices

• Improve retention

• Improve your human resources performance and developmental planning processes

• Deploy your human capital more effectively, and

• Help management make strategic decisions regarding readiness to take on more or new projects

By: Murray Brookman

© 2015 Alliance Training and Consulting, Inc.

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Seven Steps to Failsafe Delegation (Going From Doer to Delegator)

By:  Dale Mask

For many new supervisors the biggest challenge is “letting go.” To stop being the “doer-of-the-work” and start delegating work effectively. You were promoted because of the great job you did, but your job has changed. You are no longer the “doer” of the work. You are now the “delegator” of the work.

Now, your job is to get things done through others. But what if they don’t do it right? They may not get it done on time. And now, you are still responsible when they mess up. You are putting your future into their hands. It can get pretty scary. Sometimes it might seem easier to just do it yourself, and that is the trap. It would be safer to do it yourself, but you cannot get it all done by yourself. Delegation is the only answer.

If you do not delegate effectively, you find yourself working longer hours, having no time to coach your people, things getting out of control, and you end up with more stress than ever before. You may wonder if you got the job because everyone else turned it down. Do not despair; you can get it all done on time and done right by taking steps to effectively delegate.

Delegation is a seven step process. Effective delegation occurs when you answer the questions posed by each step.

1. Define what needs to be delegated.

   1. What is the task?

   2. When is it due?

   3. What will it look like when it is done?  (How will it be measured and evaluated?)

   4. What are the steps or plan of action to be taken for task completion?

   5. Why is the task important?

2.  Determine to whom you will delegate the task.

   1. What skills and knowledge is required?

   2. What level of experience is required?

   3. What other responsibilities do they have?  (Would this overload them?)

   4. Does the task fit their abilities, interests and/or need for challenge?

   5. Will this task develop them for the future?  (Will it benefit them?)

3.  Determine if training will be required.

   1. What specific areas of the task require training?

   2. How will the training be accomplished?

   3. Who will train? When? Where?

4.  Determine the parameters.

   1. What procedural issues need to be addressed?

   2. What level of authority will the delegate have?

   3. What are the limiting factors?  (Such as time, budget and/or resources.)

5.  Determine communication issues.

   1. Who needs to be informed of this person’s responsibility?  (Inside and outside the department.)

   2. How will you express confidence in the person’s ability to succeed on an ongoing basis?

6.  Determine Checkpoints.

   1. What critical points during the task completion process will you use as checkpoints?

   2. How will progress be measured?

   3. What specific information will be needed?

   4. What method of feedback will be used?  (Written, verbal, in person)

7.  Determine your availability.

   1. What is the person’s level of confidence and competence?

   2. What can you do to encourage independence and at the same time assure them of your availability for support?

   3. Who could they go to for support if you are not available?

Following these seven steps, and answering the questions for effective delegation, will help you feel more comfortable “letting go” and efficiently get things done through others. You will also find that your employees will feel more comfortable receiving delegated tasks. Employees will take on more responsibility and ownership in their work. Your department will get more work done more proficiently. You will have less stress and be more successful.

Hey, maybe this job isn’t so bad after all. You are glad everyone else did turn it down!

By:  Dale Mask

© 2015 Alliance Training and Consulting, Inc.

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360 Degree Feedback: Pluses and Minuses

360 Degree (or Multi-Rater) Assessment Done correctly Can Be Beneficial

By: Dale Mask

Everyone seems to be talking about 360 feedback these days. And, 360 Feedback certainly has merits for most organizations. Still, how you go about the process of implementing the system is more important than actually doing it. Having provided 360º feedback assessment tools and services to many organizations, we have found planning is the key. You will want to know up front how the system will be initiated, and how it will be monitored, so it will have credibility as a valuable tool for individual and organizational growth.

The 360 degree feedback system has proven to have a positive impact on teamwork, to improve communication, and improve productivity. The 360 degree process involves "bypassing" the employee and asking their supervisors, direct reports, peers and clients about the employee’s performance. The information gathered from people all around (360 degree) the employee is used to evaluate the individual’s job performance and to create performance and career development plans.

The process overview is simple enough, but switching from the traditional top-down, manager to employee feedback system is not a simple process. The most difficult task is gaining support and commitment from management. Training on the benefits and value of the process is critical to its success. Often, the 360 degree system is not mandatory. If the managers at the top of business units are not committed to the process, most will not use it. Some companies have used the success stories from those that use the system, and benefit from it, to gain support organization-wide.

Organizations that have implemented the 360 degree system effectively have found:

• Feedback coming from a variety of sources gives a better picture of an individual’s performance development needs
• Overall company performance improves when employees' goals and areas of improvement are more accurately identified
• Multi-source feedback pushes rating decisions to lower levels where the day-to-day job behavior is most actively observed
• Single-rater bias can be avoided

How to implement a 360º Assessment System

Step 1:  The first task is to design a feedback instrument that captures the most important job data. We suggest developing a questionnaire relative to key values and skills within the organization. The questionnaire is then tested and evaluated using a focus group made up of different levels of employees who understand the job issues. There are currently many 360 Feedback Assessment Tools available.

Step 2:  The second step is to identify who the people are that interact with the employee being evaluated and how the raters will be chosen. Sometimes everyone interacting with the employee is asked to evaluate. Often, the person being evaluated will choose their “rating team.”

When the individual being evaluated chooses who they want to rate them, most suggest the rating will be unreliable because they will choose friends or people they feel will give them high ratings. Studies have identified this does not happen if the actual ratings are kept anonymous. Even best friends seem to be brutally honest when their ratings can help the friend and not be held against them personally.

A system where possible raters are identified, and then randomly selected, begins the anonymity process. Then allowing those selected few the option to rate, or not to rate, completes the anonymity process. Everyone has an "out" - no single rating is traceable to a specific individual.

Step 3:  The third step is to collect the data. With optional rating systems, you hope to get enough back to give a true and representative evaluation.

Step 4:  After the data is collected, remove the names of the respondents to maintain anonymity. The results are shared and tabulated to provide an average rating in each area of performance. This helps maintain anonymity and avoids a potential “witch hunt” for the person who might have given a low rating. The results are then given to the individual. The individual ratings are then discussed and performance direction is defined.

Some organizations opt for a less formal approach which involves informal meetings between managers and their subordinates. Using a facilitator and a work study instrument, such as the DiSC^® or another leadership assessment, issues are raised and discussed in an interactive setting.

Is 360 degree feedback the way to go?

A recent study found 360 feedback can be counter-productive if not done correctly.

Even when the basic concept, getting feedback on employees from all sources, seems sound, it can still be perceived as negative. For some managers, meeting with their subordinates and discussing what the boss needs to do to improve was simply too alien and frightening a concept. For some, insufficient training on how the process was to be used doomed it from the start.

Some managers have chided, "Once a year we have to go around and ask somebody for a peer review. It's either screw your buddy or kiss up to them. The whole process is ridiculous."  Whether or not to use 360 degree feedback as part of the compensation equation is another question to be seriously considered. Some employees feel that once you have included it in the review, it is automatically part of the salary determination process. Also, because the process is anonymous, no one is accountable for ratings. Will the system have the validity and credibility to be used to determine pay? 

How to make 360º feedback assessments work for you?

Up front, you will want to ask and answer these questions:

• How you are going to develop the process?
• What do you want to accomplish?
• How will you get key stakeholders to buy in to the process?
• Will the managers be involved in developing the program?
• Will training on the process be done for managers and subordinates?
• How will anonymity of raters be maintained?
• How will it be explained that the process is designed to help those being evaluated?
• Will it be seen as truly a developmental process helping everyone?
• How will employees be held accountable for listening, responding, and changing behaviors as a result of the process?
• What follow-up steps for individual development are included in the process?

How will the process itself be reviewed? Is it working? Does it fit the organizational culture? What adjustments need to be made?

These questions can be answered. The process can be beneficial. The answers to these questions will help you create an evaluation system that is right for your organization. The 360º Assessment Process can be a valuable tool, but it is not a one-size-fits-all process.

For many organizations, the best approach may be to initiate 360º feedback as simply a developmental tool because that is exactly what it is. Performance information is coming from more than one source which can help identify areas where performance can be improved most effectively. Plans for development in those areas can be made. And, as improvement is made, it is reflected in higher ratings in the next review. The result is that the 360 assessment system develops its own credibility and is seen as a valuable career development tool by everyone involved. When the 360 degree system has that level of credibility, it can even be seen as a valuable tool used to make pay and promotion decisions.

By:  Dale Mask

© 2015 Alliance Training and Consulting, Inc.

Learn more about Alliance Training's 360º Feedback Assessment Tools Servicesº Feedback Assessment Services

Rules for Receiving Feedback

By: Dale Mask

Rule #1.  Ask for Feedback

When you think about it, you need your employees more than they need you. Your success relies on your employees doing the work. The more you are aware of their issues, the better you can address them. 

To get feedback, you must ask for it, be open to it, and respond effectively when employees candidly express their real feelings about their work environment and about you. Express to employees your interest in getting feedback by asking five basic questions:

1. 1. What do I do that you like?

   2. What do I do that you dislike?

   3. What do I do that helps you?

   4. What do I do that hinders you?

   5. If this place were what it ought to be, what would be different?

Do not expect them to be comfortable answering all of these questions. Explain your reason for asking. By understanding their issues, you can better meet their needs and make a better working environment. 
 
Because you may be the first boss they ever had who really wanted to hear what they had to say, expect them to be reluctant at first. For some employees, it may take several months to develop their trust and get the real dialogue going.
 

Rule #2.  Practice Active Listening

Be seen as open to discussing any issue. Be careful of becoming defensive when potentially negative issues surface. Using active listening techniques is a must. Nod, restate, and paraphrase their statements in a calm and neutral tone to encourage communication. Look at them, but do not glare at them. Ask questions to clarify issues and keep the discussion conversational. Avoid showing signs of anger, becoming upset, or trying to defend yourself. 
 
Remember, it is you who will ultimately decide whether or not to use the information they are delivering. Also, remember that even though they may not like to admit it, employees understand that you may not be able to eliminate all frustrations in the workplace, but at least you will listen. They will feel better having been allowed to vent their feelings.

Rule #3. Thank Them

Even when you do not agree with everything they say, let them know you appreciate their openness. When you think about it, this person has just helped you out. You now know more about what’s going on with your people. You now have an opportunity to clarify issues and misunderstandings and make positive changes. You are also ensuring you will continue to get the information you need to manage effectively.
 
Giving and getting feedback is essential to any manager’s success. Applying these rules will help you keep the dialogue flowing, giving everyone the information they need to grow – including yourself.

By: Dale Mask

© 2015 Alliance Training and Consulting, Inc.

View our Leadership and Management Courses