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Performance Management

1. What do you understand by performance management? Explain the principle
and characteristics of performance management.


“Performance Management is a systematic process by an Organization to improve and
evaluate the performance of its employees as individuals as well as groups.”

In broader view, an organizational goal can only be achieved with the people in the organization
aligning their goals to them. The individual’s goal often relates to the improvement of skills
and knowledge he possess. If the individuals knowledge and skills can be improved through
motivation or training or any other methods, the organizational performance increases and
easier to attain the goal. The tough task is to make the employee understand the needs of his
own self. A successful performance management is
 Where the employee’s interests are understood by the employer and renders his helping
hand to develop employee’s career as well as his performance and
 The employee understanding the requirements of the organization, cooperating and
accepting the helping hand of employer to increase his performance levels and thus also
his self.

Principles of Performance Management

Performance management can bring quality and effectiveness only when certain basic and
fundamental principles are followed. These include:

The system should be transparent, free from partiality, bias and discrimination among the
employees. If not, the base of the system itself will not be strong to build anything above that.
For example, work allocation, promotions, transfers, incentives, and bonus – if based on
Performance management, then the system should be transparent and gives no room for
employees to complaint.

Employee Empowerment
Participative and empowered employees take the responsibility well. They develop the
belongingness towards the organisation. Recognizing and rewarding the employees brings
them together to work and achieve.

Organizational Values and Culture
A fair treatment and ensuring due satisfaction to the employees, empathy and trust, respect and
treating people equally – are all the foundations for the development of the Culture and values
of the organization, which reflects in overall output.

Amicable Workplace
A work environment which attracts the employee rather than expecting the week end to be
away from the workplace is the principle. The workplace should be congenial, warm and

it comes to a point where the inner will of the employee will be the deciding authority to move on or not to move on. Organizational Strategies and Goals The organizational vision. Leadership The leadership plays an important role in the performance management system. the concept of performance management is to help them do better and not just simply to report their progress or regress. the employees. out of sheer respect. Hence. Varying level of strictness or different methods of evaluation will only lead to lack of trust and faith on the system as well as on the organization itself. which can influence the followers. They should be able to convince the employees too. The pull and charisma of the leader is very important to implement a system of performance management. Planning in detail the  Availability of human resources  Optimum utilization of resources  Proper placement of employees  Output needed to meet with the organizational goals  Output needed from each individual employee  Training needs  Motivation and rewards will be the major helping guide to achieve the expected result. The need of imparting the expected performance in a broader view is essential to create a platform for employees to set their personal goals along with the organizational goals.” The aspects of performance that are to be measured must be uniform.amicable to the employees. the management cannot say that they use them to hold the employees to a “standard. Even though the system will try to put the people in the places of improvement. This helps in improving the quality of work life and balancing the work life. Leadership is a simple solution. Standardization of Evaluation Methods If the evaluation criteria and methods are not standardized. obedience. Validity . Characteristics of Performance Management Performance management is a complex concept that encompasses different dimensions of the organization and the people. the performance management has some pre requisites that should be included while designing a system. which can influence the employee to decide on the positive side. mission and objectives need to be clearly and precisely laid down and communicated to all the employees to make them realize what the organization expects from them. love. gratitude or adoration – whatever we may name it. not Control The performance managers should understand that the system of performance management is to nurture the growth and potentiality to performance still better and not to control or exercise authority by finding faults. Cooperation. Planning A well planned act is half done by itself.

should have knowledge about the work process and necessities of the job.Performance management systems should measure the valid tasks.  The confusion in role clarity  Assignment of substitutive tasks  Task assigned on the initiation of employee  Additional assignments  hard to hit targets  Voluntary assignments taken by the employee All the above should be considered with due weight age and all the above should be carefully handled in cases of non-accomplishment of the tasks. and should know the hardships and obstacles in accomplishing the task. . Trained Managers for Evaluation No performance management system can succeed if the managers who conduct evaluations are inadequately trained. should have empathy. The managers should understand the sensitivity of the process.

This is where. whether a success or failure. the purpose of evaluation is not to determine the flaws and errors of the employee. Usually this comes as form to be filled in with given set of measurable variables. The achievements and obstacles may be filled in by the employee. the employee and the superior faces with ups and downs of accomplishing certain tasks. called as self appraisal. Performance Period During the period of performance. Because. It is a mutual understanding over discussion between the reporting officer and the employee. the entire result of the entire system. Explain the performance management cycle. On the other hand. mentoring. he feels confident to face with his flaws. as there is no more need to hide them from his superior. the employer or the appraiser provides ratings to the appraisee. the one who is appraised. Performance monitoring is maintained by the superior and the journal of work is maintained by the employee for a better review. Answer Performance Planning Performance planning is the first crucial component of any performance management system. this is the stage where the employee gets knowledge about the areas of improvements and also whether he is contributing the expected level of performance or not. Hence. Feed back and Counseling Session This is an important phase in the system of performance management. The standards are set on the agreement of both superior and the employee. . The employee decides upon the targets and key performance areas which can be performed over the given period. When the employee gets a transparent feedback. to identify them. a master in that area. apart from the regular duties. and help him to be an expert. 2. and help him improve on those areas. Performance Reviewing and Appraisal The appraisals are normally performed twice in a year in an organisation in the form of mid reviews and annual reviews which is held in the end of the financial year. The entire process of review takes an active turn when both the employee and the superior discuss together the causes for gaps in the performance and how to bridge them effectively. the evaluation may be used to identify the strong areas or key performance areas of the employee. is determined. the appraisee first rates himself. As the next step. we should understand. But. Employee is encouraged and motivated by the superior to finish his task. In this stage. the superior has to take all the possible steps to ensure that the employee meets the expected outcomes through personal counseling. and may not able to complete specific ones. and training and development programmes. In this process.

the motivation to walk disappears”. The employee is clearly communicated about the areas in which the employees are expected to improve. rewarding helps. When the employee is publicly recognized for his good performance. To keep him motivated. So. Hence. the contribution duly recognized by the organization helps and employee in coping up with any other failures and satisfies his need for affection and affiliation. when an employee achieves his fixed targets for the period. There is an old saying that “once you reach the destination. but the enthusiasm would be missing. Next? The same target? Ok. he feels contended and happy. He may do. to keep walking. this plan is jointly developed by the superior and the employee together. Performance Improvement Plans A fresh set of goals are established for the employee and new time line for accomplishment of the objective is provided. Also. . Is it not? The same way. Thus.Rewarding Good Performance This step is to keep the fire alive. we should fix another destination and move on. demotivation. it directly influences on the self-esteem and he will become achievement oriented. a fresh cycle of performance period begins. Again.