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PERFORMANCE
MANAGEMENT
LESSON 4
KATOPOLA, D.A © 2015: NIT
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Contents:
• At the end of this module, students will:
• Relate individual performance appraisal to the organization wide
performance management process.
• Identify a variety of appraisal methods.
• Explain HR’s role in the performance management process.
• Revise performance appraisal statements.
• Practice performance appraisal interviewing techniques.
• Have the skills necessary to use the performance appraisal
process as a positive enhancement to employee performance.
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Definition of key terms

• Performance is often defined simply in output term .i.e.
the achievement of quantified objectives.
-It is however not only the matter of what people achieve but how
they achieve it.
-Performance means both behaviors and results. Behaviour
emanates from the performer and transform performance from
abstraction to action. Not just the instruments for results, behaviors
are also outcomes in their own right – the product of mental and
physical effort applied to tasks – and can be judged apart from
results.
- performance management – considers inputs (behaviour) and
outputs (results).
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Contd.
• Performance appraisal:
A formal and systematic procedure for planning,
managing and evaluating the performance of an individual
employee for effecting performance improvement through
learning and development.
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Contd.
• Performance management is an ongoing process of
communication between a supervisor and an employee that
occurs throughout the year, in support of accomplishing the
strategic objectives of the organization.

• Is a strategic and integrated approach to increasing the

effectiveness of organizations by improving the
performance of the people who work in them and by
developing the capabilities of teams and individual
contributors.
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Contd.
• Performance management (PM) can focus on the
performance of an organization, a department, employee,
or even the processes to build a product or service, as
well as many other areas.
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Performance management Overview

• Effective performance management builds and nurtures a high-
performance organization culture where employees:
• Know where the organisation is headed;
• Know what is expected of them;
• Know how to achieve results;
• Expend effort to achieve those results; and
• Performance management enables optimal long-term value creation

• The overall aim of performance management is to establish a high

performance culture in which individuals and teams take responsibility
for the continuous improvement of business processes and for their own
skills and contributions within a framework provided by effective
leadership. Its key purpose is to focus people on doing the right things by
achieving goal clarity.
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Effective performance management

include the following features:
• Linking individual goals to the corporate and work unit
business plans and goals;
• Focusing on results, behaviors (competencies) as well as
process improvement;
• Regular reviews and updating of performance plans to
address changing demands;
• Training for both managers and employees on how to
effectively give and receive feedback, including providing
feedback to employees who experience challenges in
performing to the standards required in their jobs / roles;
• Training for managers on how to provide performance
evaluations that are valid, fair and unbiased.
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Performance Management Vs
Performance Appraisal

• Is there a difference between Performance Management

and Performance Appraisal?
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Contd.
Appraisal Management

One time event Ongoing

Retrospective Prospective

Short Term Long Term

Correction oriented Progress steps

Completing form Planning/goal setting

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Performance management goals

• Communication between supervisor and
employee.
• Feedback on performance.
• Documentation.
• Development Goals.
• Alignment with strategic planning goals.
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Who’s Involved? What Are Their Needs?

• Organization:
• Information.
• Documentation.
• Supervisor:
• Documentation.
• Motivation.
• Employee:
• Feedback.
• Support for career growth.
• Increased compensation.
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HR’s role in performance management

• Participate in strategic planning.
• Conduct job analysis.
• Support performance management.
• Design appraisal system.
• Train and support managers.
• Maintain documents.
• Provide employee due process.
• Ensure integrity of the system.
• Ensure compliance with nondiscrimination laws.
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Performance Management Process

1. Prerequisites.
2. Performance planning.
3. Performance execution.
4. Performance assessment.
5. Performance review.
6. Performance renewal and re-contracting.
Plann
ing

Rene Exec
wal ution

Revie Asses
w sment
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1. Prerequisites
• Strategic planning.
• Job analysis.
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2. Performance planning
• Employees must have thorough knowledge of the
performance management system.
• Meeting between employee and manager.
• Set SMART goals and measurement standards:
• Results.
• Behavior.
• Developmental plans.
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Writing Performance Objectives

• Practice writing SMART performance objectives:
• S – Specific.
• M – Measurable.
• A – Attainable.
• R – Realistic.
• T – Timely.
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SMART

Specific: clearly identify the work to be done

Measureable : the quanitity or quality of work to be done

Attainable: both manager and staff member agree on goals /

objectives to be achieved

Realistic : agreed goals / objectives are able to be completed

during the specified time frame

Timed: deadlines for achieving goals / objectives should be

specific and realistic
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3. Performance execution
• Shared responsibility
• Employee responsibility:
• Commitment to established goals.
• Communication and update with manager.
• Manager responsibility:
• Feedback, coaching and reinforcement.
• Resource support.
• Accurate observation and documentation.
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4. Performance assessment and

appraisal
• Who should appraise?
• Supervisors.
• Peers and team members.
• Subordinates.
• 360 degree feedback.
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What About the Employee?

Should employees do self-appraisals?

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Performance appraisal methods

• Graphic rating scale.
• Ranking method.
• Forced distribution method.
• Critical incident method.
• Essay method.
• BARS–behaviorally anchored rating scale.
• MBO–management by objectives.
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Performance appraisal problems

• Appraiser discomfort.
• Strictness/leniency.
• Bias and lack of objectivity.
• Manipulating the evaluation.
• Halo/horns effect.
• Central tendency error.
• Recent behaviour.
• Supervisor unable to observe behaviour.
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5. Conducting the performance

interview
• Explain the purpose of the interview.
• Discuss self-appraisal.
• Share ratings and explain rationale.
• Discuss development plans.
• Employee summary.
• Rewards discussion (if appropriate).
• Set follow-up meeting.
• Employee signature.
• Supervisor recap.
• Appeals process.
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6. Performance Renewal and Re-

Contracting
• Final step in performance management process.
• Readjust based on insight from completed
process.
• Plan for next performance management cycle.
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Problems with assessment

• Tied to compensation.
• Employees lack motivation.
• Manager and employee don’t agree on results.
• Management reluctance.
• No performance documentation.
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Characteristics of a good performance

management system (PMS)
1) It is a planned process of which the primary elements are
agreement, measurement, feedback, positive reinforcement
and dialogue.
2) It is concerned with inputs and values. The inputs are the
knowledge, skills and behaviours required to produce the
expected results.
3) It is a continuous and flexible process that involves managers
and those whom they manage acting as partners within a
framework that sets out how they can best work together to
achieve the required results.
4) It focuses on future performance planning and improvement
rather than on retrospective performance appraisal.
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Issues with performance management

• Legal issues.
• Untrained raters.
• Rater errors.
• Rater distortion.
• No grievance
procedure.
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Ways to overcome the challenges

• The following strategies are identified as means to
overcoming obstacles:
 Relying on Objective Assessments;
 Coordinating Project Planning Centrally;
 Adopting Performance Management Policies;
 Honesty and Transparency;
 Incentivizing Participation without Punishing Poor
Results;
 Incremental Improvements;
 Dedicating Staff and Resources; and
 Clearly Defining Organization Direction
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Poorly implemented PMS

• False and misleading
information.
• Increased turnover.
• Wasted time and money.
• Damaged relationships.
• Decreased motivation.
• Job dissatisfaction.
• Risk of litigation.
• Unfair standards.
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Performance management skills

• Communication.
• Coaching.
• Giving feedback.
• Empathy.
• Teamwork.
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Student Role Play

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Q&A
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