Performance Management and Reporting

Master of Accounting

Siska Tifany K, 2001904992

Dear All, please learn the related topic with Performance Planning: Setting Targets. Then
discussed the questions below. And post your answer by replying this at the latest on
Monday, 6 March, 2020. 
1. Describe what is Performance Planning, what aspects must be done in planning the
performance to achieve targets. 
2. Why Performance Planning is important in the organisation? 
3. How Performance Planning is executed, explain step by step. 
4. In evaluating whether the objective is already met by the employee, company set
Performance Standard. What criteria must be complied by the Performance standard, explain
your reasons. 
5. Why some managers add a step between the performance planning meeting and follow up.
Explain 

ANSWERS

1. Describe what is Performance Planning, what aspects must be done in planning the
performance to achieve targets. 

Performance planning is a systematic and structured approach to successfully achieve

the desired goals of an individual or team throughout the assessment year. A plan is
chalked out for the team or an individuals keeping in mind the broader objectives of
the organisation. Performance planning is a crucial part of an employee's growth in
the organisation. An effective performance planning system will be easy to
understand, as well as to implement. It would also be accurate enough to provide the
performance of an employee throughout the year. 

The aspects :
i) Start with a conversation.
ii) Outline areas to work on.
 iii) Define quantifiable standards for success.
iv) Determine a deadline for improvement. 
v) Provide resources for improvement.
vi) Explain consequences.
vii) Communicate feedback regularly.

2. Why Performance Planning is important in the organisation? 

Planning helps an organization chart a course for the achievement of its goals. The
process begins with reviewing the current operations of the organization and
identifying what needs to be improved operationally in the upcoming year. Planning
involves envisioning the results the organization wants to achieve, and determining
the steps necessary to arrive at the intended destination – success, whether that is
measured in financial terms, or goals that include being the highest-rated organization
in customer satisfaction. Performance Planning is important in the organisation
because its Efficient Use of Resources, Establishing Organizational Goals, Managing
Risk And Uncertainty, promotes Team Building and a spirit of Cooperation, also can
Creating Competitive Advantages.

Performance planning is the first step of performance management. Performance

planning is the process of determining what and how a job is to be done in such a
manner that both the employee and his superior understand what is expected from the
employee and how success is defined and measured. Performance planning for an
employee flows from organizational or unit objectives and is undertaken jointly by the
employee and his superior. 

Performance planning is a simple way of ensuring that the employee gives quality
inputs that will ensure the output expected from him. Planning gives a sense of
direction and ensures good economics for the company. In addition, it ramps up the
contribution of the individual and enhances his self-worth.
3. How Performance Planning is executed, explain step by step.

Performance Planning Steps

Step One: Obtain and Review the Appropriate Materials

 Performance Management Resource Guide

 Entity and Department Balanced Scorecards
 Staff Member's Job Description
 Expected Job Results Template
 Performance Planning and Review form

Step Two: Prepare for Performance Planning

 Review entity and department balanced scorecards and strategies: 

o Obtain documents. 
o Review and clarify with Next Level Supervisor and others as appropriate. 
 Inform Staff Member of upcoming Performance Planning Session: 
o Describe and discuss the overall performance management process. 
o Review performance forms with Staff Member. 
o Describe objectives of performance planning session. 
o Provide background information and related materials as available and
appropriate. 
 Schedule Performance Planning Session: 
o Encourage Staff Member to "rough draft" a few important Expected Job
Results and Behaviors or list job responsibilities. 
o Allow Staff Member at least one week to prepare and plan. 
 Prepare preliminary drafts of Staff Member Expected Job Results and Behaviors
and review job description.

Step Three: Conduct Performance Planning Session

 Confirm Staff Member's understanding of the performance management process. 

 Review balanced scorecards and strategies: 
o Seek consensus on departmental goals and strategies. 
 Discuss Staff Member role and job responsibilities: 
  Review job description and confirm job purposes. 
 Discuss relationship between job and department goals and strategies.
o Review job description for clarity and agreement
o Establish Expected Job Results and Behaviors by sharing preliminary draft
and discussing areas of disagreement or need for clarification. 
o Record defined Expected Job Results and Behaviors. 
o Determine resources and skills required to complete the Professional
Development Plan. 
 Distribute copies of the Performance Planning and Review form: 
o Copy to Staff Member. 
o Supervisor retains original.

4. In evaluating whether the objective is already met by the employee, company set
Performance Standard. What criteria must be complied by the Performance standard,
explain your reasons.

1. General Measures: Performance standards should be: objective, measurable,

realistic, and stated clearly in writing (or otherwise recorded). The standards
should be written in terms of specific measures that will be used to appraise
performance.

To develop specific measures, you first must determine the general measure(s)
important for each element. General measures used to measure employee
performance include the following:

 Quality addresses how well the work is performed. Quality refers to

accuracy, appearance, usefulness, or effectiveness.
 Quantity addresses how much work is produced. A quantity measure can be
expressed as a general result to be achieved.
 Timeliness addresses how quickly, when or by what date the work is
produced. The most common error made in setting timeliness standards is to
allow no margin for error. As with other standards, timeliness standards
should be set realistically in view of other performance requirements and
needs of the organization.
  Cost-Effectiveness addresses dollar savings to the [agency] or working
within a budget. Standards that address cost-effectiveness should be based on
specific resource levels (money, personnel, or time) that generally can be
documented and measured in [the agency’s] annual fiscal year budgets. Cost-
effectiveness standards may include such aspects of performance as
maintaining or reducing unit costs, reducing the time it takes to produce a
product or service, or reducing waste.

For each element, decide which of these general measures are important to the
performance of the element by asking the following questions:

 Is quality important? Does the stakeholder or customer care how well the
work is done?
 Is quantity important? Does the stakeholder or customer care how often a
general result is achieved?
 Is it important that the element be accomplished by a certain time or date?
 Is it important that the element be done within certain cost limits?

2. Specific Measures: Once you've decided which general measures are important,
you can develop specific measures. It is these specific measures that will be
included in the standard. To develop specific measure(s) for each element, you
must determine how you would measure the quantity, quality, timeliness, and/or
cost-effectiveness of the element.

If it can be measured with numbers, clearly define those numbers. If performance

only can be described (i.e., observed and verified), clarify who would be the best
judge to appraise the work and what factors they would look for. (The first-line
supervisor is often the best person to judge performance, but there may be
situations, depending on what is being measured, when a peer or the customer
receiving the product or service would be the best judge.)
 The following questions may help you determine specific measures. For each
general measure, ask:
 How could [quality, quantity, timeliness, and/or cost effectiveness] be
measured?
 Is there some number or percent that could be tracked?

If there is no number, and the element can only be judged, ask:

 Who could judge that the element was done well? What factors would they
look for?

Performance standards should be presented to employees at the beginning of every

rating period.

5. Why some managers add a step between the performance planning meeting and
follow up. Explain

There’s some reasons why managers add a step between the performance planning
meeting and follow up:
 To be up-to-date with the employees:
o 1 on 1s allow managers to have a finger on the pulse of what the employees
are doing after the meeting.
o Employees share their objectives and key results so that managers can see
whether they are aligned with the company’s objectives.
o Managers can find out how productive employees are during the meeting.
o Managers have a better understanding of what each of their direct reports are
working on and how they can support them.