STATE PERSONNEL MANUAL Performance Management
Section 10, Page 1
September 1, 2007
Performance Management
Policy It is the policy of the State of North Carolina that each agency shall have an
operative performance management system. The purpose of the performance
management system is to ensure that:
1. The work performed by employees accomplishes the work of the agency;
2. Employees have a clear understanding of the quality and quantity of work
expected from them;
3. Employees receive ongoing information about how effectively they are
performing relative to expectations;
4. Awards and salary increases based on employee performance are
distributed accordingly;
5. Opportunities for employee development are identified; and
6. Employee performance that does not meet expectations is addressed.
An operative performance management system shall consist of:
1. A process for communicating employee performance expectations,
maintaining ongoing performance dialogue, and conducting annual
performance appraisals;
2. A procedure for addressing employee performance that falls below
expectations;
3. A procedure for encouraging and facilitating employee development;
4. Training in managing performance and administering the system; and
5. A procedure for resolving performance pay disputes.
Definitions • Performance management – A management process for ensuring
employees are focusing their work efforts in ways that contribute to
achieving the agency’s mission. It consists of three phases: (a) setting
expectations for employee performance, (b) maintaining a dialogue
between supervisor and employee to keep performance on track, and (c)
measuring actual performance relative to performance expectations.
• Work plan – A document that describes the work to be completed by an
employee within the performance cycle, the performance expected, and
how the performance will be measured.
• Corrective action plan – A short-term action plan that is initiated when
an employee’s performance fails to meet expectations. Its purpose is to
achieve an improvement in performance.
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Definitions • Individual development plan – An action plan for enhancing an
(continued) employee’s level of performance in order to excel in the current job or
prepare for new responsibilities.
• Performance appraisal – A confidential document that includes the
employee’s performance expectations, a summary of the employee’s
actual performance relative to those expectations, an overall rating of the
employee’s performance, and the supervisor’s and employee’s signatures.
• Performance documentation – A letter, memo, completed form, or note
on which the supervisor indicates the extent to which the employee is
currently meeting expectations and provides evidence to support that
conclusion.
• Fair appraisal – Appraising employees in a manner that accurately
reflects how they performed relative to the expectations defined in their
work plan and in a manner that is not influenced by factors irrelevant to
performance.
The Process of Supervisors and managers are responsible for managing the performance of
Managing their employees. Each agency’s policy shall specify how the three phases of
Performance performance management will be carried out. Agencies shall adopt
performance management practices that are consistent with the requirements
of this policy and that best fit the nature of the work performed and the
mission of the organization.
1. Communicating employee performance expectations
a. At the beginning of the agency’s twelve-month work cycle,
supervisors shall meet with their employees, establish expectations
regarding their employees’ performance, specify how employees’
actual performance will be measured and their success determined,
and impart to them an understanding of how meeting these
expectations will contribute to the achievement of the agency’s
mission.
b. Performance expectations shall be written at the “meets expectations”
level (the midpoint of the state rating scale) and shall be documented
on a form defined by the agency – the “work plan.” (An agency may
designate different work-plan formats depending on the nature of the
work.)
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Performance Management, Continued
The Process of c. Work plans shall be signed and dated by both the supervisor and the
Managing employee.
Performance
(continued) 2. Maintaining ongoing performance dialogue
a. Employees shall be responsible for meeting their performance
expectations.
b. Progress toward meeting expectations shall be measured, reported,
discussed, and documented throughout the work cycle.
c. Supervisors are expected to use appropriate supervisory techniques to
support employee efforts to meet or exceed their performance
expectations.
d. When expectations change during the course of the work cycle,
supervisors shall communicate these changes and modify work plans
as necessary. Modifications shall be signed and dated by both the
supervisor and the employee.
3. Conducting annual performance appraisals
a. At the end of the work cycle, supervisors shall evaluate employees’
performance during the past year compared to their performance
expectations. They shall use verifiable information collected and
documented throughout the cycle to determine the extent to which
actual performance has met the expectations defined in the work plan.
b. The evaluation shall be documented on a standard form defined by the
agency – the “appraisal.” (An agency may define more than one
standard appraisal form based on the nature of the work being
appraised.)
c. The annual performance appraisal shall use a 5-level rating scale for
reporting overall performance. A rating at the midpoint of the scale
shall indicate that an employee’s performance has met expectations.
(Alternative rating scales are permissible, provided they are
convertible to a 5-level scale.)
d. Prior to discussing a completed performance appraisal (that is, an
appraisal containing ratings and descriptions of actual performance)
with an employee, a supervisor shall review the appraisal with the
next-level manager to ensure that ratings are appropriate and
consistent.
e. Supervisors shall discuss the appraisals with their employees. Both
supervisor and employee shall sign and date the completed
performance appraisal indicating that the discussion has taken place.
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Performance Management, Continued
Addressing When an employee’s performance falls below expectations at any time during
Poor the performance cycle, the supervisor shall document the performance
Performance deficiency and take actions, including (if appropriate) disciplinary action, to
assure that performance expectations will be met within a reasonable period
of time.
1. The supervisor shall document the performance that falls short of
expectations by preparing a corrective action plan or other documentation.
The documentation will specify (a) the performance problem, (b) the steps
to be taken to improve performance, including the timeframe for
improvement, (c) the consequences of failure to improve, and (d) a
follow-up date.
2. A corrective action plan shall be considered successfully completed only
when the employee’s actual performance has improved to the point where
expectations are being met.
3. The agency’s performance management policy shall specify the
relationship between disciplinary policy and performance management.
4. Performance deficiencies that occur during the performance cycle shall be
referenced in the annual performance appraisal.
Supporting Many employees may express interest in growing in their current positions or
Employee in furthering their careers in state government. Supervisors shall work with
Development them to identify strengths and weaknesses and, if appropriate, to help them
prepare an individual development plan. Individual development plans may
specify how employees can more fully apply their strengths in their current
positions, build up areas of weakness, enhance their performance in their
current positions, or develop the skills and experience they will need for
possible future assignments.
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Transitions When employees move into or out of their positions, relevant performance
information shall be communicated in a timely way
1. Probationary employees shall have work plans within a certain number of
days (set by the agency) of their date of employment. To remove an
employee from probationary status, the supervisor shall provide
performance documentation, in a manner specified by the agency, that the
probationary employee’s performance is at minimum meeting
expectations.
2. Employees in training progressions shall have work plans, or an
equivalent document that describes performance expectations, within a
certain number of days (set by the agency) of the date of employment.
The supervisor shall provide performance documentation that
performance at minimum meets expectations before each salary increase
is granted within the progression.
3. Employees whose responsibilities are changed substantially, either within
their current position or by transfer (promotion, lateral transfer, or
demotion), shall have work plans established within a certain number of
days (set by the agency) following the new assignment.
4. When an employee transfers from one agency to another within state
government, the releasing agency shall send to the receiving agency
performance documentation summarizing the employee’s performance
from the last appraisal up to the date of transfer. This performance
documentation shall be provided before the employee’s first day with the
receiving agency. The receiving supervisor may use this performance
documentation when completing the employee’s end-of-cycle appraisal.
5. When a supervisor leaves a work unit, the next-level supervisor shall
ensure that performance documentation concerning the employees
supervised by the departing supervisor is made available to the
employees’ new supervisor.
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Access and Use 1. Confidentiality of appraisals – Completed performance appraisals shall be
of Performance retained on file by the agency for three years and disposed of according to
Information GS 121.5(b&c).
2. Properly informed personnel decisions – Agencies shall take measures to
ensure performance information is appropriately and consistently used
and that personnel decisions are based on appropriate performance
information. Decisions involving promotions, performance-based
disciplinary actions, performance-based salary increases, and reductions
in force shall be supported by a current (completed within the past twelve
months) appraisal on file.
3. When current or former State employees are being considered for hire or
promotion, their past appraisals may be obtained for review by those
involved in making the hiring or promotion decision. This right to access
is based on State policy (Employment and Records, Section 3) and on the
employee’s signature on the state application that authorizes the release of
information relevant to job requirements.
4. In their performance management policies, agencies shall clarify which of
the documents used for performance management purposes are
confidential and which are not, as well as define what “confidential”
means. Completed performance appraisals (with ratings, supporting
information, and signatures and dates) shall be treated as confidential
(under the provisions of the Employment and Records policy). Agencies,
however, are encouraged to make openly available employees’ work plans
and any information recorded during the work cycle for the purposes of
clarifying performance expectations, tracking progress, or reporting on the
status of the results achieved. The free availability and use of this
information is integral to the ongoing management of an agency’s,
division’s, or unit’s work.
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Performance Management, Continued
Training in How effectively employees perform depends to a great extent on how well
Managing supervisors manage their performance. Thus, it is essential that agencies train
Performance managers and supervisors how to manage their employees’ performance and
and that responsibility for coordinating the elements of the agency’s performance
Administering management system be clearly assigned.
the System
1. Each agency shall designate a person as performance management
coordinator with responsibility for coordinating the development and
revision of the agency’s performance management policy and the
implementation and ongoing administration of performance management
within the agency.
2. Each agency shall provide performance management training to all
employees who have supervisory responsibility. Training for new
supervisors shall be completed within a timeframe set by the agency.
Resolving Each agency shall have a procedure for reviewing and resolving employees’
Performance disputes concerning performance ratings or performance pay decisions. This
Pay Disputes procedure may be incorporated in the agency’s existing grievance process or
may be administered separately. For policy requirements and guidelines, see
the Internal Performance Pay Dispute Resolution Procedures (State Personnel
Manual, Section 7).
Monitoring and 1. The performance management coordinator (or other designated person)
Evaluating the shall monitor the agency administration of the performance management
Performance system to ensure compliance with agency policy.
Management
Process 2. The State Personnel Director shall report to the State Personnel
Commission each year on the administration of performance management
systems.
3. Each agency shall evaluate its performance management system at least
every three years to determine how effectively the system is meeting the
purposes stated in the first section of this policy and take actions to
improve the system if necessary. Evaluation findings and improvement
actions shall be reported to the State Personnel Director.
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