Synopsis On

Comparative Analysis of Performance Management at Senior and Middle level

Submitted To: Prof.Swati Agrawal Shilpi Rani Heena Kumari Monalisa Nayak

Submitted By: Romana Aftab

Michelle Baa

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Comparative analysis of Performance Management at senior and middle level

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Introduction
Performance management processes have come to the fore in recent years as a means of providing a more integrated and continuous approach to the management of performance than was provided by previous more isolated and often inadequate merit rating or performance appraisal schemes. Performance management is based on the principle of management by agreement or contract rather than management by command. It emphasizes development and the initiation of self managed learning plans as well as the integration of individual and corporate objectives. It can in fact play a major role in providing for an integrated and coherent range of personnel processes which are mutually supportive and contribute as a whole to improving organizational effectiveness. Performance management is a means of getting better results from the organization, teams and individuals by understanding and managing performance with in an agreed framework of planned goals, standards and competence requirements. It is a process of establishing shared understanding about what is to be achieved and an approach to managing and developing people in a way which increases the probability that it will be achieved in the short and long term. The basis of performance management is an agreement between the manager and the individual on expectations in relation to each of these headings. Performance management is largely about managing such expectations.

A process-Performance management is not only just a system of forms and procedures .It is about the actions which people take to achieve the day to-day delivery of results and manage performance improvements in themselves and others.

Shared understanding: To improve performance, individuals need to have a shared understanding about what high levels of performance and competence look like and what they are working towards. Performance management is concerned with the interrelated process of work, management, development and rewards. It can become a powerful integrating force, ensuring that these processes are linked together properly as a fundamental part of the human resource management approach.

The concept of performance management has been one of the most important developments in the sphere of management in recent years. It began to take shape in the later 1980s, growing out of the realization that a more continuous and integrated approach was needed to manage and reward performance. All too often, crudely developed and hastily implemented
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performance-related pay and appraisal systems were not delivering the results that, somewhat naively, people were expecting from them.

Performance management has risen like a phoenix from the old-established but somewhat discredited systems of merit rating and management by objectives. Many of the more recent developments in performance appraisal have also been absorbed into the concept of performance management, which aims to be a much wider, more comprehensive and more natural process of management.

Literature Review

There are numerous definition of Performance Management, from the general Performance management is what an organisation does to realise its aspirations (IDeA, 2001) to the more specific It is intervention.....targeted at individual employees with the aim of directing and enhancing their performance so as to improve organisational performance (Williams, 2002). However, the common feature of all definitions lies in the organisations goals or objectives: It is the process of improving the quality and quantity of work done and bringing all activity in line with an organisations objectives (Walters, 1995)

The principle of setting goals for individuals which are linked to organizational goals has a long history, evolving from merit-rating to management-by-objectives (MBO first coined by Peter Drucker in 1995), through Lockes Goal Setting Theory of 1968 (Greenberg & Baron, 2000) and finally to performance management, which became a recognised process in the 1980s (Armstrong & Baron, 2002).

Proponents of MBO argue that a focus on result should be the preferred approach to performance management as it takes a customer perspective and enables an individuals efforts to be linked to organisational goals (Ainsworth & Smith, 1993; Armstrong, 1994; Lockett, 1992). However, evidence suggests that there are considerable benefits to the organization where employee participation is sought (Rodgers & Hunter, 1991) a top-down approach to goal-setting may lead to absence of ownership and created an obstacle to improved performance (Stiles, Gratton, Thruss, Hope-Hailey & McGovern, 1997).

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The importance of goal setting and feedback is still an integral feature of performance management process from traditional appraisal schemes (Armstrong, 1999).

Armstrong argues that a well-conceived and well-implemented performance management process can motivate through non-financial rewards such as positive feedback and opportunities for development. However, if the process fails to focus on continuous feedback and development, then not only it is unlikely to succeed, but it is also likely to act as a demotivator within the organisation.

Engalmann & Roesch (1996) identified the negative consequences of poorly designed and poorly administered schemes (or schemes that lack management commitment) as:

Poor motivation and self-esteem because receive inadequate feedback on their work performance

Little or no focused communication about performance between managers and employees Inefficient use of managers time Litigation over alleged discriminatory actions (Engelmann & Roesch, 1996)

For this project we have chosen two companies namely

I] Gas Authority of India II] Bharat petroleum

The topic for our project

Comparison of Performance management at middle level and senior level in Gas Authority of India and Bharat Petroleum.
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The Objective of the project

To know the key factors on which the performance is measured at the executive as well as at middle level for the respective organizations.

Why did we choose this topic?

Fletcher and Williams said that the real concept of performance management is associated with an approach to creating a shared vision of the purpose and aims of the organization, helping each individual employee understand and recognize their part in contributing to them, and in so doing manage and enhance the performance of both the individuals and the organization. Hence we are doing this project so that we can get answers to these questions: 1] Is performance management owned and driven by line management and not by the HR department? 2] Is there emphasis on shared corporate goals and values? 3] Is performance management something that has to be developed specifically and individually for a particular organization? 4] Does it apply to all staff or just to managerial group?

Limitations
The limitations are:

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The company might not be too keen to share the details regarding of their performance management criterias. We might have too much information but we are not able to do justice to the information available to us. Therefore, we cannot disregard the limitations of our resources as well the human judgement factor.

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