Performance Management

Introduction, Performance Objectives

and Plans

What is Performance Management?

 Systematically managing all the people in
an organization, for innovation, goal
focus, productivity and satisfaction--it is a
goal- congruent win - win plan
What is Performance Management?

 Armstrong and Baron define performance

management as a “strategic and
integrated approach to delivering
sustained success to organizations by
improving performance of people who
work in them and by developing the
capabilities of teams and individual
contributors
 What is Performance Management?

 It is integrated, because it effects four

types of integration

 Vertical
 Functional
 Human Resource
 Goals
What is Performance Management?

Performance Managed Organizations are

likely to have the following
characteristics:

 Measurable performance targets

 Manage-learning linked with

organizational goals on the one hand
and with career development on the
other
What is Performance Management?

 Pre-eminence of intrinsic needs of

managees without neglecting their
extrinsic needs

 Ownership of performance management

by line management rather than the
personnel function
 The Manager’s Concern and Interests

 The rationale for establishing a performance

management system does, and must emerge
from the managers’ concerns and interests
 To be effective, this process must start with
identification and analysis of the managers’
performance problems and related
management skills, in the context of the
specific organization
The Manager’s Concern and Interests

 remedying poor performers and

performance

 bridging gaps in performance expectations

 securing equitable rewards and punishment

decisions from the management

 softening performance pressures through

appropriate planning, scheduling and
delegation
Key to Performance Management

 Building organizational capability and

successful implementation of high-
commitment management practices is a
key managerial responsibility

 High-performance management practices

require consistent leadership attention,
while time and attention are the scarcest
of resources in most organizations
Key to Performance Management

Three basic principles, which effective

leaders use to transform their
organizations into high-commitment
models of management are:
 build trust
 encourage change
 use appropriate measures
 Performance Management and People
Management

 Performance management is that part of an

organization’s people-related function, which

is performed by those directly managing the

people
 Performance Management and People
Management

Within any organization, there are atleast two

levels of effort, that

 concern the performance of its people

 and optimize individual and collective output

Performance Management and People
Management

 effort at the organizational level, which

determines the organization’s internal
environment

 effort at the managerial level, which

constitutes core of the leader-manager
role--- what each manager does to
supervise her managees
 Performance Management System

 A set of sequential dynamic subsystems

 Like any system, it has relatively

autonomous, but interdependent and inter-
related parts, which ensure effective and
smooth functioning of the total system
 Performance Management System

 Three broad sub-systems:

 planning managee performance and

development

 monitoring managee performance and

mentoring managee development

 annual stocktaking
 Organizational and Individual
Performance Plans

Convergent goals and expectations in an

organization for group and individual

performance would naturally flow from the

organization’s performance plans

 Organizational and Individual
Performance Plans

 The organization’s mission and goals

and its long-range or strategic plans


The organization’s annual operating

plans, circumscribing the team or

project-level performance goals

Organizational and Individual
Performance Plans

 Organizationalvalues and work

ethics to be observed in course of
achieving the goals

 Organization-wide job descriptions,

indicating skills and competencies
needed
 Organizational and Individual
Performance Plans

Annual operating plans and work ethics of

the organization feed into objectives and
strategies of the various organizational sub-
units--departments, divisions, groups,
branches, teams, projects, etc, and the
individual managee roles--their role
descriptions and performance targets
Research Base for Performance Planning
and Goal Setting

Goal setting theory

 setting goals at work can help a managee

incorporate ways to meet her personal and
professional needs, thereby optimizing
goal congruence between her and the
organization
Research Base for Performance Planning
and Goal Setting

Goal setting theory

research confirms that goal-setting

improves managee performance at
all levels---managerial as well as non-
managerial---over extended periods
of time, in different kinds of
organizations
Research Base for Performance Planning
and Goal Setting
Goal setting theory

 According to Gordon, goals vary on three

dimensions:

 specificity
 difficulty
 acceptance
 Performance Standards

 Organizations need performance standards,

at the level of individual managees as well as
at the project or functional or programmatic
levels

 Organizations want to standardize precise

expectations
 Performance Standards

 Managees need equitable and

consistent standards for their individual
performance, comparable to others in
the organization, to be monitored or
assessed by
Performance Standards

 Managees expect that managers

everywhere in the organization will use
identical--at least similar---standards to
measure the performance of competing
positions