Strategic Business Planning for Commercial Producers
Leading, Motivating and Evaluating Employees
Bernard L. Erven
Department of Agricultural, Environmental and Development Economics Ohio State University
Strategic Business Planning for Commercial Producers
A paradigm about employees:
You can buy peoples time; you can buy their physical presence at a given place; you can even buy a measured number of their skilled muscular motions per hour. But you cannot buy the devotion of their hearts, minds, or souls. You must earn these.
Strategic Business Planning for Commercial Producers
A paradigm about jobs:
Fall in love with your job and keep the romance alive. Sure, your employer will benefit if youre committed but not as much as you will. High job commitment is a gift you should give yourself.
Strategic Business Planning for Commercial Producers
The top managers perspective
Mission Goals Tactics Tasks
Job analysis
Duties and responsibilities Job descriptions
Strategic Business Planning for Commercial Producers
Human resource management success
Success comes from attracting, developing, and maintaining an effective workforce. Our focus is just three of several HRM activities: leading, motivating, and evaluating.
Strategic Business Planning for Commercial Producers
Leading employees
Leadership is influencing peoples behavior through: Communicating Enabling others to act Modeling the way Disciplining Encouraging the heart Motivating
Strategic Business Planning for Commercial Producers
Why do managers lead?
Help employees accomplish their own career and personal goals. Help accomplish the farms mission and goals.
Strategic Business Planning for Commercial Producers
Leaders have power through their: Positions Ability to reward Coercion Expertise Personal appeal and charisma
Strategic Business Planning for Commercial Producers
Should I be autocratic or democratic?
The wrong question about leadership style
Strategic Business Planning for Commercial Producers
The right question:
What combination of directive behavior and supportive behavior, i.e., leadership style, should I use with an employee given his or her knowledge, skills, abilities, experience, self-esteem, selfconfidence and commitment?
Strategic Business Planning for Commercial Producers
Directing Control with close supervision Coaching Explain, seek input and stay in control Supporting Support without controlling Delegating Turn over authority and responsibility
Four basic leadership styles
Strategic Business Planning for Commercial Producers
Motivating employees
Motivation is the inner force that drives employee behavior
Strategic Business Planning for Commercial Producers
Some background points on motivation:
Most employees prefer to be motivated. What one person finds motivating another may find boring, frustrating and debilitating. Self-motivation plays a crucial role. An unmotivated person can become motivated and vice versa. Motivation does not explain all performance problems.
Strategic Business Planning for Commercial Producers
The simplest and most intuitive approach to motivation is to satisfy an employees needs. This approach has four parts:
Employees have needs that they desire to satisfy, which in turn Leads to actions that will fulfill their needs, which in turn Leads to rewards from the employer and satisfaction from doing the job, which in turn Reinforces their actions and causes
Strategic Business Planning for Commercial Producers
Fundamental argument drawn from this simple needs/reinforcement model of motivation:
Employee motivation works best as a partnership between employer and employee.
Strategic Business Planning for Commercial Producers
The employees contributions to the motivation partnership
Be self-motivated. Search for the right job and work environment. Be willing to learn. Commit to the organizations vision, mission, core values and goals. Communicate needs, concerns and ideas to the employer. Listen to the employers point of view.
Strategic Business Planning for Commercial Producers
The employers contributions to the motivation partnership
Remove employee dissatisfiers such as poor working conditions, unsafe equipment, exhausting physical work combined with excessively long work days and weeks, unfair pay, disagreeable supervisors, unreasonable rules and policies, unchallenging work, obnoxious coworkers and conflict with co-workers.
Strategic Business Planning for Commercial Producers
Employers contributions (continued)
Put motivators in place, e.g., opportunity to achieve, recognition, satisfying work, responsibility and personal growth through training and new experiences. Promote communication to discover the dissatisfiers and the effectiveness of motivators.
Strategic Business Planning for Commercial Producers
Evaluating employees
How am I doing? How can I do better? Most employees want an answer to these questions. Employee performance reviews should be designed to answer the how am I doing? and how can I do better? questions for each employee on a continuous basis.
Strategic Business Planning for Commercial Producers
Feedback helps:
Improve employee performance. Decrease turnover. Motivate self-improvement. Build trust. Prevent litigation. Create a paper trail useful in litigation.
Strategic Business Planning for Commercial Producers
Eight questions guide employers development of effective employee reviews
1. 2. 3. 4. 5. 6. 7. 8. What are my objectives for employee performance reviews? Whom will be reviewed? What will be the mix of individual and group reviews? Will the reviews be formal or informal? What will be the mix of objective and subjective measures of performance? How often will the reviews be done? Who will conduct the reviews? What review processes will be used?
Strategic Business Planning for Commercial Producers
Whom to review
Start at the top of the organization and work down. Few people complain about having too much information about their performance.
Strategic Business Planning for Commercial Producers
Individual or group
Person-by-person is most common. Team reviews may need to come before individual reviews.
Strategic Business Planning for Commercial Producers
Formal or informal
Formal reviews occur on a regular schedule with written reports to employees. Informal reviews occur on an as needed basis. A combination of formal and informal reviews usually works best.
Strategic Business Planning for Commercial Producers
Objective and/or subjective measures of performance
The objective approach measures performance against specific standards, e.g., times tardy this year. The subjective measures are based on evaluators judgment, intuition, and feelings, e.g., attitude of employee. Realistically, subjective measures cannot be avoided. Challenge is to combine objective and subjective measures.
Strategic Business Planning for Commercial Producers
Frequency
Formal evaluations should be conducted at least once each year. Formal evaluations more than two times per year are usually infeasible. Sticking to announced schedule of reviews is much more important than how often. Glut of reviews at one time can be avoided by scheduling on anniversary of first day on the job.
Strategic Business Planning for Commercial Producers
Evaluator
Usually the immediate supervisor. Supervisors can seek input from others.
Strategic Business Planning for Commercial Producers
Choice of evaluation processes
Keep it simple to start; add the bells and whistles later. Evaluation should be based on a job description, i.e., what the employee was hired to do.
Strategic Business Planning for Commercial Producers
Simplest process follows this general outline
Analyze the job to have a basis for a job description and performance standards, i.e., expected outcomes. Observe performance, collect performance data and make judgments to then be able to say to the employee, I see your three most important strengths (contributions or accomplishments) as. . .
Strategic Business Planning for Commercial Producers
Simplest process (continued)
Ask the employee, What do you see as your most important strengths (contributions, accomplishments)? Say to the employee, I see this (these two things) as most important for improving during the next six months.
Strategic Business Planning for Commercial Producers
Simplest process (continued)
Ask the employee, What would you like to improve? Follow with a discussion of needed follow up by discussing possible training, retraining, needed equipment, useful information and whatever else may be necessary for the employee to meet performance standards.
Strategic Business Planning for Commercial Producers
Simplest process (continued)
Summarize with, I want to summarize what we have agreed to. Conclude with a positive note and assure the employee that there will be opportunity for follow up including the next scheduled performance review.
Strategic Business Planning for Commercial Producers
Simplest process (continued)
Supervisor writes summary for the file and shares a copy with the employee. Supervisor invites employee to respond in writing.
Note No forms required and emphasis is on helping employee improve.
Strategic Business Planning for Commercial Producers
Graphic rating scale
Most common process for employee evaluation. Built around a brief form. Form based on job description. Form designed to identify employees strengths, weaknesses and areas for improvement. Provides an overall assessment of performance.
Strategic Business Planning for Commercial Producers
Tips for employee reviews
Train all supervisors to do employee reviews. Strive for a positive supervisor attitude toward employee reviews. Dont surprise employees with reviews. Stick to an announced schedule. Explain the review procedures to all employees.
Strategic Business Planning for Commercial Producers
Tips for employee reviews
Ask employees to think about their own performance, their questions and their career aspirations before discussion with their supervisors. Discuss performance in private. View employee reviews as an opportunity for open and honest communication.
Strategic Business Planning for Commercial Producers
Tips for employee reviews
Make the review communication twoway. Make the annual or semi-annual formal evaluation a supplement to continuous informal communication. Be prepared to deal with strong emotional responses from employees. Spend some time on career implications.
Strategic Business Planning for Commercial Producers
Tips for employee reviews
End the review on a positive note. Ask employees how the review process can be improved.
Strategic Business Planning for Commercial Producers
Strategic Business Planning for Commercial Producers
