Performance Management Process

Characteristics of PMS
 It’s a planned process with 5 primary elements

Agreement
Measurement
Feedback
Positive reinforcement
Dialogue
Performance management cycle

PLAN

REVIEW ACT

MONITOR
 Performance management process
PRE-
REQUISITE ESTABLISHING PERFORMANCE
STANDARDS

MUTUALLY SET MEASURABLE GOALS

FACILITATE
PERFORMANCE
MEASURE ACTUAL
PERFORMANCE

COMPARE WITH SET STANDARDS

DISCUSS WITH EMPLOYEE –

FEEDBACK
Dealing with REWARDS &
feedback RE-
CONTRACT
FUTURE COURSE OF ACTION AND
Performance DEVELOPMENT
Improvements
Stage # 1: Prerequisites
 Knowledge and awareness about – organizational goals,
mission and vision
 Resulting from strategic planning
 Purpose or reason for organization’s existence
 Direction the organization is headed
 Organization goals (which cascade down the line)
 Broad strategies for achieving those goals
 Knowledge about the job to be performed
 Resulting from job analysis
 JD – Tasks, duties, responsibilities, context
 JS – KSAs, other characteristics
Stage # 2: Performance Planning
ACCOUNTABILITY

SPECIFIC
RESULTS OBJECTIVES

PERFORMANCE
STANDARDS
PERFORMANCE
PLANNING BEHAVIOURS
DISCUSSION COMPETENCIES
DEVELOPMENT
AREAS

KPA/KRA/KPI ??
 Stage # 2: Performance Planning
 Key accountabilities
Results from the JD
KPAs – broad areas of the job for which the employee is
responsible for producing results
 Specific objectives – desired level of performance
KRAs : Statements of important and measurable outcomes
 Performance standards - minimum acceptable level
KPIs – yardstick by which achievement is gauged
Information on acceptable / un-acceptable performance w.r.t
Quality
Numbers
Costs
Time
 Stage # 2: Performance Planning
 Performance planning behaviors
How a job is done – behavioral criteria like communication
skills, product knowledge
Competencies : Cluster of KSAs required to perform
Critical in determining how results will be achieved (e.g.,
faculty member)
 Development plan
• Areas of improvement
• Goals to be achieved in each area of improvement
 Performance & Development Planning
 Performance and development agreement
 Action-work development and support- competency evidence
competency requirement
Performance evidence----Performance measures

Managing performance throughout the year through

continuous monitoring and feedback
Formal review. Feedback and joint analysis and
assessment
Rating
Financial reward
Performance Development Planning

 Agreement based on expectations expressed by

the manager
 Expected results (in terms of role profile) &
 Goals or objectives in alignment with strategic
organizational objectives
 Success criteria for each area of performance
 Methods of measuring performance
Stage # 3: Performance Facilitation
 Responsibilities of the employee
Commitment to goal achievement
Ongoing requests for feedback and coaching
Communication with supervisor
Collecting and sharing performance data
Preparing for performance reviews
Stage # 3: Performance Facilitation
 Responsibilities of the supervisor
Observation and documentation
Updates and feedback
Resources
Reinforcement
Social support system
 Stage # 4: Performance Assessment
 Multiple sources
 Manager
 Self-assessment
 Peers
 Customers
 Anyone involved in the particular work / activity
 Stage # 4: Performance Assessment

 Multiple assessments are necessary

 Increase employee ownership and accountability
 Increase commitment
 Provide information
 Ensure mutual understanding and common focus to
goal achievement
 Performance appraisals - overview
 Supervisory ratings
 Ranking
 Paired comparison
 Graphic rating scales
 Forced choice / ranking
 Critical incidence
 Feedback method
 Field review technique
 Self and peer ratings
 360-degree feedback
 Team appraisals
 Stage # 5:Performance Review
 Formal setting where the performance is discussed
 Often the weakest link in the process
 Performance review
 Past oriented
 Behaviors and results
 Present oriented
 Rewards to be received
 Future orientation
 New goals and development plans
Stage # 5:Performance Review
 Conducting productive performance review
 Identify what the employee has done well and poorly
 Solicit feedback
 Discuss the implications for changing behaviors
 Explain how skills used in past achievement can be used to
overcome any performance problems
 Agree on an action plan
 Set a follow-up meeting and agree on behaviors, actions,
attitudes to be evaluated
 Stage # 6: Performance renewal and
re-contracting

 Similar to performance planning stage

 Uses insights and learning from previous cycle
 Cycle time may change or remain the same
 Entire cycle gets repeated
 Principles of effective performance management
(Strebler, Bevan & Robertson, 2001)
1. Have clear aims & measurable success criteria
2. Be designed and implemented with appropriate employee
involvement.
3. Be simple to understand and operate.
4. Have its effective use core to all management goals.
5. Allow employees a clear “line of sight” between their performance
goals & those of the organization.
6. Focus on role clarity & performance improvement.
7. Be closely allied to a clear and adequately resourced training and
development infrastructure.
8. Make crystal clear the purpose of any direct link to reward and
build in proper equity and transparency safeguards.
9. Be regularly and openly reviewed against its success criteria.
Managing Performance management
 Depends on:
Context (culture, management style &
approach)
Organization Structure (multinational,
divisionalized, regionalized, centralized )
What needs to be managed?
 Communication of aims of performance management- how it
works and responsibilities of those involved
 Performance agreement process- guiding on role profiles and
goal setting
 Performance review process- carrying out reviews &
documenting them
 Personal development planning
 Skill development
 Monitoring Performance Management & evaluation of its
effectiveness
 Role of HR
 Encourage & facilitate performance management
process
 Work along line managers to help them develop
their skills and encourage its use
 Assemble team of committed and experienced
managers to act as coaches and mentors
 Run training events and conduct surveys to evaluate
effectiveness of performance management