1.1 Management is defined as “working with and through others to achieve organizational objectives.” Managing people includes three major functions:
1.1.1 Performance Planning (i.e., setting objectives at the beginning of a planning period);
1.1.2 Coaching (day to day feedback and development activities); and,
1.1.3 Performance Review (overall evaluation of performance for a specific period).
1.2 The successful manager can achieve task goals through effectively managing and developing people. This system was designed to give both John and Tom Butler a new easy-to-use tool that can facilitate the achievement of both short-term task objectives and long-term developmental objectives at Bodax Foundations, Inc.
2.1 Many if not most managers are very effective in letting associates know what performance problems exist but rather ineffective in helping them determine why those problems exist. To put it differently, managers are strong in problem identification but weak in problem analysis. Frequently staff members complain about Management By Objectives systems by saying that they may be criticized for the occurrence of problems that are beyond their control. To be most effective in evaluating and solving performance problems, managers need to determine why the problems occurred. This system was designed to help managers determine why performance problems occurred and then to develop change strategies to solve those problems.
2.2 This system focuses on the step that should occur between problem identification and problem solution — the determination of why performance problems exist.
3.1 The system has isolated seven variables necessary for effective performance:
3.1.1 Motivation
3.1.2 Ability
3.1.3 Role perception
3.1.4 Organizational support
3.1.5 Environmental fit
3.1.6 Evaluation
3.1.7 Validity
3.2 Now we must arrange (and rename) these factors so that they can easily be remembered. The decision was made to arrange their initials to spell a word (an acronym). The word chosen was REALIZE. This word was chosen because when managers begin to utilize this system, they will “realize” great success.
3.3 Arranging and applying the seven important variables to our word, we now see them as follows:
R real knowledge and skills to do the job — Ability
E educated on a clear description of the job — Clarity
A active interest in the employee by the company — Help
L likes to do the job — Incentive/Motivation
I investing time and energy in the employee’s performance — Evaluation
Z zero legal problems with decisions — Validity
E environment — Environment
4.1 The simplicity of the system is one of its most attractive components. It’s not one of the new fads, it’s not filled with complex (and often useless) technical jargon, and it’s not difficult to remember or apply. The manager evaluates how each factor will impact present or potential performance. Then the manager applies the proper procedure to find the unique cause of the performance problem.
4.2 The seven factors of the REALIZE system, along with some problem solving alternatives are listed below:
4.2.1 Real knowledge and skills to do the job — ability. This refers to the associate’s knowledge and skills (abilities), which will enable him/her to successfully complete the task or function. We humans are not universally competent, nor are we able to do everything equally well. The key components of this very important factor include:
a. education relevant to the task at hand (the associate’s formal and informal training which assists in the completion of the task);
b. experience relevant to the task at hand (prior work experience which assists in the completion of the task);
c. relevant aptitudes (the associate’s potentials or traits that will strengthen the chances of successful completion of the task).
4.2.1.1 In the analysis of an associate’s performance, the manager must ask simply, “Does this associate have the knowledge and skills which are necessary to complete this task?”
4.2.1.2 If a problem exists in this area, some specific solutions may include task-specific training, coaching, formal educational courses, or reassignment of duties or responsibilities (to bring them more in line with the factor being
considered). Of course, these alternatives must be considered in the light of cost effectiveness.
4.2.2 Educated on a clear description of the job — clarity. This refers to the associate’s understanding and acceptance of what to do, when to do it, and how to do it. To ensure that the associate has a thorough understanding of the job, he/she needs to be very clear on (a) the major goals and objectives, (b) how these goals and objectives should be accomplished, and (c) the priority of goals and objectives.
Many times when a problem exists in the understanding of a job, there will also be a problem in the performance-planning phase. In many cases an oral agreement on objectives is insufficient, and the manager must ensure that all objectives are written down. The associate must be encouraged to ask plenty of questions so that clarification is certain.
4.2.3 Active interest in the employee by the company — help. Also called organizational support, it refers to the organizational help or support that the associate needs for effective completion of the task. Some components of organizational support include (a) an adequate budget, or enough money to complete the job, (b) enough equipment, the right equipment to complete the task, and suitable facilities for the task, (c) necessary support from other departments, (d) the on time availability of the correct and high quality products, (f) and the adequate supply of personnel to complete the task.
In assessing a lack of organizational support, the manager must first determine where the problem exists. If the problem is lack of money, personnel, equipment or facilities, the manager must then determine if an adequate supply can be acquired. If the proper resources cannot be acquired, the manager may have to revise the objectives so that the associate is not punished because of the lack of supplies beyond his/her control.
4.2.4 Likes to do the job — incentive. This refers to the associate’s motivation to complete the specific task in a successful manner. The manager must remember that not all people are equally motivated to complete all tasks. Being human beings, associates
tend to be more motivated toward the successful completion of tasks that will bring them either intrinsic or extrinsic rewards.
4.2.4.1 Problems in this area should first be evaluated under the light of the proper use of rewards and punishments. The associate must understand that performance on a specific task is directly related to pay, promotion, recognition and job security. Many managers simply hope that associates will engage in certain behaviors without rewarding these behaviors. Associates have a natural tendency to do tasks that are rewarded and to avoid tasks that are not rewarded. An example in the area of compensation — if there is to be an 8% overall pay raise where 7% of the raise is based on longevity and 1% based on performance, then associates
will probably be more concerned with longevity than with performance.
4.2.4.2 Rewards do not necessarily have to be tangible to be effective. In some cases appropriate feedback, such as a “pat on the back,” will suffice and be very effective. This positive (and public) reinforcement of successful performance should be an integral part of the overall incentive system.
4.2.5 Investing time and energy in the employee’s performance — evaluation. This refers to the formal and informal processes of coaching and performance feedback. Coaching is simply letting associates know how well they are performing in their jobs on a regular basis. The most unrealistic manager is the one who expects associates to improve job performance when they are actually unaware that performance problems exist. Surprises on a formal performance evaluation should never occur, and they won’t if the manager regularly and informally evaluates performance with the associate.
If there is an evaluation problem, it probably has been caused by a lack of day-to-day feedback on both positive (catch somebody doing something right) and negative performance. Many managers focus on only the bad news and take positive performance for granted. Recognition for a job well done can serve as a vital part of the ongoing evaluation process — it increases motivation, strengthens company loyalty, and costs very, very little.
Managers can use the significant-incident process to help highlight the extremes in performance. This is simply the recording of highly positive or negative performance.
4.2.6 Zero legal problems with decisions — validity. This refers to the appropriateness and the legality of personnel decisions made by the manager. Managers must be aware of appropriate laws, court decisions and company policies to ensure that their decisions are valid. The manager should ask, “Are my personnel decisions related to performance-oriented criteria?” Managers must stress the use of performance-oriented criteria when recommending the promotion, transfer, or dismissal of any associate.
4.2.7 If there is a problem in this area, managers should know that the trend of the law is clear — personnel decisions need to be documented and justified on the basis of performance-oriented criteria. Recommendations for promotion or recommendations for dismissal must be fully documented and the decision should be related to performance (either at the next level for a promotion or to this level for dismissal or other disciplinary action).
4.2.8 Environment — or environmental fit. It refers to the external factors that can influence performance, even if the individual has all the ability, clarity, help and incentive otherwise needed to do the job. Key elements of this component include competition, changing market conditions, government regulation, and suppliers. In analyzing performance, the manager must not blame associates for performance problems that were caused by environmental factors, which they could not control. Associates, however, should be expected to provide the best reasonable results in cases in which the environment plays a role.
5.1 The REALIZE system can be used to analyze almost any performance situation. The manager looks at the situation and determines which factors are responsible for a performance problem. Some performance problems can be a function of more than one factor. The manager can also use this method for performance planning, coaching, and for performance review.
5.2 This system, REALIZE, gives managers guidelines for performance analysis that they can remember, understand and apply. There is not one best way to solve problems. The manager must use the problem solving strategy that best fits the needs of the associates’ in particular situations. This system provides managers with a simple, easy to use guide for analyzing problems, determining why the problems exist, and then choosing the solutions that best fit the unique problems.
Ken Roys, CEO
BTF Management
Consultants Inc
866-385-1900 Toll Free
713-983-7904 Fax
Ken.Roys@btfmanagement.com
www.btfmanagement.com