Human Resource Audit – Performance Management System

Laura BeattyMeredith FrisbieShelby WestbrookZach SmithNorth Carolina State University – MIE436

State Employees Credit Union

An Overview• Orientation to SECU• What is Performance Management

(PM)• How is PM being conducted at

SECU• How PM is being handled

▫ Strengths▫ Weaknesses

• Recommendations for improving PM▫ Improvement areas▫ How to improve deficient PM

areas▫ Justification/Outcome toward

improvement• Conclusion• Questions

Orientation to SECU• Non-profit financial cooperative serving North

Carolina• Founded June 4, 1937• "People Helping People in North Carolina." • Limited Membership with approx. 1.5 million members.• Promote thrift among its members by affording them an

opportunity to accumulate their savings.• Creates a source of credit at a fair and reasonable rate of

interest for members.• Provides an opportunity for members to use and control

their money to improve their economic and social condition.

• 4,200 employees , 225 branches, and more than 1,000 ATMs

• Exponential growth rates in employees and branches

•Performance Management is the continuous process of identifying, measuring, and developing the performance of individuals and/or teams, with the goal of aligning performance with the strategic goals of the organization.

What is Performance Management?

• HR/Personnel Department▫ Centralized internally

• Manages PM through PMS developed in 2001▫ Use of Job Analyses in development of PM

practices▫ Employee self-appraisals▫ Employee evaluations by direct supervisor▫ Progressive discipline policy▫ Limited topic grievance process▫ Performance improvement through training▫ Documentation of PM actions and events

Performance Management in SECU

Performance Management in SECU• Section I Part B

▫ How does the HR sub-function contribute to or facilitate the achievement of the strategic goals of the organization? Does it influence attraction, retention and motivation?

Performance Management in SECU• Section I Part C

▫ How consistent is this HR sub-function with other HR sub-functions (e.g., performance management, training and development, compensation, recruiting and selection)?

Performance Management in SECU• Section I Part D

▫ How are the practices evaluated by the company?

Evaluation FormEMPLOYEE EVALUATION FORM

EMPLOYEE NAME (Last, First, MI)

EMPLOYEE #

POSITION TITLE Designate precisely (ie. Senior Teller, Loan Officer, MSR. etc.)

DATE OF EMPLOYMENT

POSITION STATUS

EEXXEEMMPPTT NNOONN--EEXXEEMMPPTT

BRANCH/DEPARTMENT

EVALUATION COMPLETED BY

EEMMPPLLOOYYEEEE SSUUPPEERRVVIISSOORR

SUPERVISOR

DATE OF EVALUATION

DATE OF LAST EVALUATION

COMPLETE EACH SECTION THOROUGHLY AND USE ADDITIONAL PAPER IF NEEDED.

1. Note areas of professional development since your last evaluation (training/education). 2. Describe your strengths as they relate to your job duties and responsibilities. 3. Identify areas you could improve to enhance your effectiveness. 4. What would you like to see changed within your specific work area and/or the Credit Union? 5. What suggestions or recommendations do you have for implementing these changes? 6. What are your short-term and/or long-term career goals? 7. List any goals you have achieved or contributions you have made since your last evaluation.

SIGNATURES: X_________________________________________ VP DATE X_____________________________________ EMPLOYEE DATE X_________________________________________ SVP DATE X_____________________________________ SUPERVISOR DATE X_________________________________________ PRESIDENT – SR. EXECUTIVE VP DATE

SECU # 442 A (1/01)

Strengths

•1) yearly online evaluations▫Easy to use/store/transfer

•2) board meetings▫Open to all employees and members▫Board member are not paid as incentive

•3) review meetings▫Keep objectives current

•4) committee meetings▫Bring SECU community together

•5) low turnover rate▫12% in last year, job stability

Weaknesses• 1) outdated PM system

• 2) lack of incorporation of organization’s mission, vision, and goals into their PMS

• 3) facilitation of performance appraisal rather than a PM

• 4) absence of coaching and feedback in the workplace

• 5) insufficient training for employees and management on making the PM system effective.

Mission and Vision

Coaching/Feedback Implementation

•1) Set developmental goals•2) Identify resources and strategies•3) Implement strategies•4) Observation and documentation•5) Feedback

Performance Appraisal

Implementing New PM System• Preparation of New PMS

▫ Achieve system buy-in by employees Communication Plan, Appeals Process, Training,

Testing, and monitoring and evaluation• Communication Plan

▫ Communicate important factors of implementing a new PMS in an organization

▫ Avoid biases, consider employees, promote positive, & document

• Appeals Process▫ Promotes buy-in, allows employees to question

• Training Programs▫ Rater Training, RET, FOR, BO, SL

• Pilot Testing▫ Discover problem, fix problems, gain input, sample

size• Continuous Monitoring and Evaluation

▫ System satisfaction, cost/benefit, performance level

Questions/Comments