CHAPTER 4

The Performance Improvement Plan

Preparing an Effective Plan

A performance improvement plan is a specific course of action to be taken to improve the performance of the employee. It should describe what will be done, by whom, and when.

In the appraisal interview, segments of the job to be improved by the employee should be identified. The next step is to select the one segment of performance that should be worked on first. If too many are worked on, there is a good probability that the task will be overwhelming and nothing will be accomplished. The one job performance segment should be jointly determined by manager and employee. Four criteria should be used to select it:

1.What does the manager feel is most important? Perhaps the employee could improve a weakness that is causing serious problems, or maybe the manager wants improvement in an already strong area.

2.What area does the employee think should be worked on? This factor probably reveals the motivation of the employee to improve, because the employee usually won’t pick an area that she does not want to improve.

3.What area of improvement would bring prompt results? This would provide a successful experience and could lead to improvement in other areas.

4.What area of improvement would have the greatest payoff in advantages versus time, energy, and money expended? This would be an objective decision based only on facts and logic.

The very process of jointly picking the one job segment to improve can build rapport and understanding between manager and employee.

Ingredients of a Plan

The performance improvement plan should meet four criteria:

1. It should be practical. The specifics of the plan should be related to the job performance to be improved. Reading a theoretical book or taking a three-credit university course on industrial psychology might not be practical.

2. It should be time oriented. Specific deadline dates should be set. These should be realistic and jointly determined.

3. It should be specific. It should clearly describe what will be done. For example, if the area to be improved is the quality of communication with employees, the reading of a book by the employee would be one action to take. The name of a specific book should be listed, instead of the statement “Read a book on communications.”

4. It should involve commitment. Both manager and employee should be sold on the plan and committed to its implementation. They should agree that it will be done.

Requirements for Behavior Change

The performance improvement plan is designed to bring about a change in the behavior of the employee. If this change is going to take place, five requirements must be met:

1. Desire. The employee must want to change.

2. Knowledge and Skill. The employee must know what to do and also how to do it.

3. Climate. The employee must operate in a climate that provides an opportunity to behave in a different way. The most important factor in this climate is the manager. Managers can provide the following types of climate:

(a)Preventing. This means that the manager does not allow the employee to do what he or she wants to do.

(b)Discouraging. The manager doesn’t say, “You can’t,” but does say, “I wouldn’t recommend it,” or “I wouldn’t do it if I were you,” or “I’m not saying you can’t do it, but if you do it and it doesn’t work out, you are in trouble!” These statements discourage a employee from changing behavior.

(c)Neutral. The manager leaves it up to the employee. The typical attitude of the manager is: “I just want results. If you want to do it, it’s up to you.”

(d)Encouraging. The manager says, “It sound like a good idea. Why don’t you try it?”

(e)Requiring. The manager says, “Do it and I’ll help you.”

It’s pretty obvious that the climate must be neutral or better if the subordinate is going to change his behavior. If the manager establishes a preventing or discouraging climate, it is almost certain that no change in behavior will take place. Therefore, the entire process leading up to the desired change in behavior must build the right climate between manager and employee.

4. Help and Support. If an employee is going to improve, he will need encouragement and help. The person may be afraid to try something new because of fear of failure Or an employee may intend to try it but not get around to it unless encouraged. Also, the person may not have the confidence or skill to try it without encouragement and assistance. The help can come from the manager, from a training or personnel professional, or from both.

5. Rewards. People who know they will be rewarded for changing are apt to change. Also, if the rewards really come, they will be motivated to change in the future. Rewards for changing behavior may be of a monetary or nonmonetary nature. Monetary rewards include salary increases, bonuses, or other financial incentives. Nonmonetary rewards include self-satisfaction, praise, increased responsibility, and more freedom and authority to act.

Who Develops the Plan?

Plans should be practical, time oriented, and specific. The implementation of the plan requires the commitment of both manager and employee. These requirements suggest and almost necessitate that the plan be jointly developed by manager and employee. In addition, a training and development professional may be required to help. Line managers and employees are able to work out special job assignments, but they usually do not know what books to read or conferences to attend. Training professionals can recommend these from experience.

How Should the Plan Be Developed?

When the need for improvement has been determined, the first step is to determine the causes of the problem. Why isn’t performance as good as it could and should be? The problem may be with the manager, the employee, or the situation.

The employee may be doing something wrong or not doing what he should do. He may not understand what’s expected; he may lack skill or motivation.

The manager could be doing counterproductive things that prevent the employee from performing to the maximum. Or the manager might not be doing something that would help the employee perform better. Some typical supervisor’s mistakes are:

Doing What Shouldn’t Be Done

Supervising too closely

Criticizing every mistake

Requiring the employee to come to the manager for all decisions and solutions to all problems

Putting undue pressure on the employee

Not Doing What Should Be Done

Not clarifying what’s expected on the job

Not seeing that the employee has necessary skills to do the job

Not giving praise for a job well done

Not being available to the employee

Not listening and considering ideas of the employee

Not keeping the employee informed

Not taking a personal interest in the employee

Not encouraging the employee to grow through delegation, special assignments, and education

Not encouraging the employee to try out new ideas

The third category, the situation, encompasses the conditions in which the employee performs but problems persist. Obstacles could include:

Inadequate tools or equipment to work with

Shortage of materials

Poor working conditions, including noise, distractions, inadequate lighting, lack of space, and interruptions

Unsatisfactory coworkers

Changes in methods, procedures, or equipment that create problems for the employee

Consider All Possible Solutions

A list should be made of all the possible things that can be done to improve performance. These should be listed under the categories of what the employee can do, what the manager can do, and what situations should be changed.

On the basis of extensive research concerning the growth and development of managers, Norman Allhiser, of the Management Institute at University of Wisconsin—Extension, identified some job-related growth activities. These are the results of his research, listed in order from most effective to least effective:

Attendance at staff meetings

Job rotation

Discussions with staff specialists

Study of manuals and procedure guides

Attendance at technical department programs

Temporary assignments to other departments

Allhiser found that the example set by the manager was the single most important factor in the growth and development of employees.

These are possible approaches to consider when preparing the performance improvement plan. Off-the-job activities are also important ingredients of a performance improvement plan. The most common options are attending programs, reading books and articles, and participating actively in professional and/or trade organizations.

Following are sample lists of possible actions for improving performance in orienting and training new employees, jointly developed in interviews between Anna Severson, the manager, and Christopher Green, the employee (a supervisor). After the lists, we present the final performance improvement plan that was developed from them.

Possible Actions by Christopher Green

1.Talk with another supervisor who does an effective job of orienting and training new employees.

2.Observe that supervisor when she orients and trains a new employee.

3.Attend the orientation meeting conducted by the human resources department with new employees.

4.Determine the best time for new employees to come into the department.

5.Set aside sufficient time to orient and train each new employee.

6.Have an “expert” observe the next time Christopher orients and trains a new employee. Have the “expert” critique and offer suggestions.

7.Attend a seminar on orienting and training employees.

8.Read books on the subject.

Possible Actions by Anna Severson

1.Talk with each of Christopher’s new employees at the end of the first week of employment to find out how they are doing and how they feel about their jobs. Look for indications of good and bad things that happened in their orientation and training. Discuss this information with Christopher.

2.Be sure that no special pressure or assignments are given Christopher to prevent him from doing an effective job of orienting and training new employees.

3.Work with human resources department to be sure that new employees are sent to Christopher’s department when he wants them to come.

4.Suggest the name of an effective trainer for Christopher to talk with and watch.

5.Correct any of the situations that hinder or prevent Christopher from doing an effective job.

6.Find an expert (possibly from the human resources or training department) to observe Christopher the next time he orients and trains a new employee.

7.Find out what training courses are available that Christopher might attend.

8.Find out the names of specific books that Christopher can read to learn about effective ways to train new employees.

Possible Situations to Be Corrected

1.New employees will come to Christopher’s department when it is most convenient for Christopher.

2.A quiet office will be provided for Christopher so that he can spend time talking with and orienting each new employee.

3.A special place will be set aside for training new employees. No employee will be placed into a production situation until the training has been completed.

Finalize the Plan

The preceding list of possible actions does not constitute a plan. It must be converted into specifics of what will be done, by whom, and when.

Figure 4-1 shows the specific plan that Christopher and Anna worked out together. Larry Jackson, the training director, assisted. This performance improvement plan meets the requirements that it be practical, specific, and time oriented. It spells out what each person will do and by when. Most important, both Christopher and Anna are committed to it.

The Dayton-Hudson Approach

Dayton-Hudson Corporation developed a practical approach to individualized development, under the leadership of Paul Chaddock, vice president of organization planning and development. The feedback from the operating companies that have used this approach has been very positive.

Figure 4-1. Performance improvement plan.

A booklet called “Individual Development Plan” (IDP) was developed as an aid for managers.¹ It had two purposes: To help employees improve performance on present jobs, and to help employees with future potential to prepare for possible promotion through a preplanned series of learning activities. Emphasis was placed on improving present job performance.

The IDP grows directly out of performance reviews. Figure 4-2 shows the relationship between performance and the plan and is designed to improve performance on the present job. It is used to help a person overcome weaknesses and build on strengths. Figure 4-3 shows the form used when a person is preparing for promotion.

The specific plan for performance improvement at Dayton-Hudson uses three different kinds of resources, as illustrated in Figure 4-4: outside sources, intraorganizational activities, and personal self-regulatory activities.

Figure 4-5 shows an example of a completed form aimed at improving an employee’s management of time. Emphasis is placed on intraorganizational activities and personal self-regulatory activities. A manager and employee working together can do more to produce growth than any other force inside or outside the organization.

Figure 4-2. IDP form for improving performance on the present job.

Figure 4-3. IDP form for preparing for promition.

Figure 4-4. IDP form for ideas for an individual development plan.

The Secondary Performance Improvement Plan

We have emphasized that a plan should be developed to cover only one area to improve. This is important to be sure that improvement will take place in at least one part of the job. It was also suggested that three areas to improve be identified, along with three areas of strengths. This means that when one performance improvement plan has been implemented wholly or at least partially, a new plan should be developed for a second area that needs improvement. If the plans aren’t too complicated, manager and employee can work on more than one performance improvement plan at a time.

The Manager and the Performance Improvement Plan

When any type of plan is developed between manager and employee, the manager automatically assumes the final responsibility for the implementation of the plan. This responsibility falls into five practical steps:

1.Be sure the employee understands the plan that was developed. The joint development of the plan almost ensures this. Both manager and employee get a copy of the plan.

Figure 4-5. Completed IDP form for improving time management.

2.Discuss a change in plan if any circumstances occur to warrant it. Make changes on the written plan.

3.Periodically, remind the employee of commitments before their due date. This helps the employee to meet the due dates and prevents failures because of forgetting.

4.Provide continuous help in the implementation of the plan. At the time of a reminder, the manager can ask, “Do you see any problems in meeting the deadline? Can I help you in any way?”

5.Correct the employee if certain parts of the plan are not met on schedule. It has been suggested above that prevention is much better than cure. But if a failure occurs, the manager must see that the situation is corrected and the employee gets back on schedule.

The problem is to accomplish these five steps without causing resentment. The solution depends on the rapport that is maintained between manager and employee. If the tone is kept positive and the manager controls her emotions, there is a very good chance that the plan will be implemented on schedule and everyone will be happy.

The Employee and the Performance Improvement Plan

The agreement on the performance improvement plan is the beginning of the on-the-job coaching. The manager immediately picks up an obligation to see that the plan is carried out. Likewise, the employee picks up an obligation to implement the plan or to let the manager know as soon as anything happens that makes the plan impractical. When a plan becomes unrealistic, a revision in the plan is just as necessary as a revision in a standard when the standard is no longer appropriate. If something comes up that makes it impossible or impractical to carry out any phase of the plan, the employee must realize that it is her responsibility to call it to the attention of the manager.

Summary

A specific written performance improvement plan is very helpful toward improving performance. This plan should include what will be done, by whom, and when.

To be effective the plan should be practical, time oriented, and specific, with commitment on the part of both manager and employee. The best way to accomplish these four requirements is for manager and employee to develop it together. A training professional, if available, can provide valuable assistance.

A good approach is to identify three specific kinds of actions to be taken: what will be done by the employee, what will be done by the manager, and what situations or conditions will be changed. The implementation of the plan becomes the joint responsibility of manager and employee, with the manager playing the role of coach.

Note

1.Dayton-Hudson Corporation, “Individual Development Plan,” Minneapolis, 1979.