SESSION 15-Performance Management

Debolina Dutta
WHAT HAS BEEN YOUR EXPERIENCE OF PERFORMANCE
MANAGEMENT ?
 SIMULATION INCIDENT 5

WHAT WAS YOUR DECISION ON PERFORMANCE

MANAGEMENT SYSTEM ?
• Supervisor
• Supervisor and subordinates
• Supervisor and self-appraisal
• Supervisor, subordinates and self-appraisal
SIMULATION INCIDENT 8

WHAT IS YOUR DECISION ON SELF-

MANAGED WORK TEAMS ?
SIMULATION INCIDENT 13

WHAT IS YOUR DECISION ON HARASSMANT

VERSUS LYING DILEMMA ?
SIMULATION INCIDENT 14

DEBATE TIME : PROMOTION DECISIONS

MARGARET ( HEALTH FIRST)

OR
BETH ( FAMILY FIRST) ?
Performance Management and
Performance Appraisal
• Performance management:
– Dynamic, continuous process.
– Tracking strategy implementation of the organization
– Improves organizational effectiveness.
– Aligns Strategic goals with team and individual goals
• Performance Appraisal
– At the individual level
– Evaluating performance based on goals
– Provides developmental feedback
– Is tied to rewards and recognition
Who’s Involved? What Are Their Needs?

• Organization:
– Information.
– Documentation.
• Supervisor:
– Documentation.
– Motivation.
• Employee:
– Feedback.
– Support for career growth.
– Increased compensation.
PERFORMANCE MANAGEMENT consists of

PLANNING AND GOAL SETTING – CASCADING TOP DOWN

Defining performance
Setting criteria and standards

COACHING & FEEDBACK

providing periodic feedback
360 degree and SKIP

APPRAISAL
Measuring performance
Rewards
TNA -linking to growth and development
PDP Framework: invest 20, gain 2000

1. performance planning
• how does individual contribute to ‘big picture’
• meaning of KRA, criteria / metrics, targets & objectives
• set SMART objectives aligned to business plan
• review competencies and agree pdp

4. development dialogues 2. managing / assessing performance

• identifying T & D needs thru development
dialogues
• focus is on potential & future needs
• career & succession planning
• finalizing pdp
• assessing performance against objectives
• role of self / peer / internal customers / suppliers /
Individual & team
• recognise good performance
• identify issues early
• update objectives as required

3. performance review, counseling

• focus is on performance
• transparency of rating
• involvement of Supervisor
• evaluation of context
• focus on improvement
• strengthening relationship / emotional involvement in
growth
• review pdp

Source : TV Rao Performance Appraisal & Performance 2000

Goal Setting Theory
Employees are motivated by clear, well-defined goals
and feedback.

It makes a direct
relationship between
goals, productivity and
employee engagement
being both clear, and
actionable
Goal Setting Theory
• Goal Commitment – Can achieve it and want
to achieve it
• Specificity, difficulty level, feedback
• Prevention vs. promotion focus
• Implications – Management by Objectives
Performance Management: Why is it used?

• Key role in linking organisation goals with

individuals (Vertical Integration)
• Gives a synergy with other HR practices e.g. R& R
(Horizontal Integration)
• Helps improve performance :
– Organisational level
– Individual level
Some key ideas

• Performance Management is the instrument that

allows to measure strategy implementation
• Organizational goals are cascaded into
Departmental performance goals and individual
performance goals
• Goals are usually both short term and mid term.
At senior levels, there are more mid and long
term goals than at junior levels in the
organization.
Components of Performance
Management
Goal Setting as a part of Performance Management
Goal Planning 2022-23..Exercise
Let’s do Goal-Setting Please take 5 mins & focus on Goals
for the Following: for (FMCG Sales Executive) & Self-
Dev/IDP
A. Project
Assignment Goal/ Make it SMART:
FMCG Sales Executive
• Specific
B. Self- • Measurable
Development/IDP • Achievable/Ambitious
Goal (22-23 and • Realistic
Beyond) • Time-Bound
Bell Curve ?

• WHY DO WE NEED A BELL CURVE?

• WHAT ARE THE POSITIVES AND NEGATIVES OF
BELL CURVE?
Competency Based Performance Management?
• WHAT ARE COMPETENCY FRAMEWORKS?
• HOW AND WHY ARE THEY USED ?
GIVING PERFORMANCE FEEDBACK?

• STAR MECHANISM

• SANDWICH APPROACH
APPRAISAL INTERVIEW

• 3 C’S CRITICAL -- CONTEXT, CONTENT AND

CONDUCT
• CONTENT -- covered extensively
• CONTEXT: adequate notice, creating the
environment, preparedness
• CONDUCT: funneling, speak 1/3rd of the time,
set an agenda, have a closure
Be nice to Penny – Performance Review

https://www.youtube.com/watch?v=FGkjyn1eW10
Role Play

As a supervisor confronting poor performance, give

performance feedback to your subordinate ?
Let’s give Feedback
• Be specific
• Ask for information
• State what you have observed
• Explain the impact
• Pause and ask for reaction
• Suggest concrete steps
• Focus on performance, not personality
Trends in Performance Management
Rethinking Performance Management
for post-pandemic success – What to Expect?
 Rethinking Performance Management
for post-pandemic success
Use data to better (see and communicate)
performance

Commit to a continuous feedback culture

Commit to a clarity between assessment and

development

Commit to transparency

Commit to performance management and KPI

alignment

Source : Schrage, M. (2020). Rethinking performance management for post-pandemic success: Organizations serious about high performance must rethink performance metrics. MIT Sloan Management Review.
 Performance Management’s Digital Shift
The future of Performance management’s purpose is shifting, structurally and
performance dramatically.
management
is more data Performance management's longtime reliance on manager opinion,
subjective observation, and intuition is being replaced by a reliance on
driven, more data.
flexible,
more Increasingly, interdependencies between people, processes, and
technologies are becoming more important to getting work done in the
continuous enterprise.
and more
One-size-fits-all approaches will give way to bespoke efforts that revitalize
development human capital.
oriented
The biggest cultural and organizational impact of next-generation PM
systems will be feedback time, tempo, and impact.

Source: Schrage, M., Kiron, D., Hancock, B., & Breschi, R. (2019). Performance Management's Digital Shift. MIT Sloan Management Review, 0_1-23.
In Summary
Scenarios for better Performance Management

Prioritizing
Focusing on Team
Value Performance
Leveraging Creation
Leaders and
Manager
Treating
People as
Assets
Driving
performance
with Metrics

Source: Schrage, M., Kiron, D., Hancock, B., & Breschi, R. (2019). Performance Management's Digital Shift. MIT Sloan Management Review, 0_1-23.
Thank you…