Performance Management

Bunga Aprigati Iskandar, SEI., MSc.

 ▪ The process of planning, appraising performance. As
well as giving feedback and counseling of an employee
Definition to improve one’s performance. Hence, it involves
different activities.
 Plan

Cycle of Reward Monitor

Performance
Management

Review Develop
 ▪ Performance measure is based on the critical success
factors derived directly from the corporate and
business strategy
▪ It is a continuous process of monitoring and giving
feedback.
▪ It involves effective use of technology in conveying
Features desired competencies as well as in monitoring and
giving feedback process.
▪ It emphasizes on comprehensive training rather than
individual’s
▪ It is a dynamic system that suits the workplace realities.
 ▪ A process of determining what and how a job is to be
Performance done in such a manner that both employees and
managers understand what is expected and how a
Planning success is defined and measured.
 ▪ The process of evaluating the performance and
qualifications of the employees in terms of the
requirement of the job for which they are employed.

Performance ▪ A systematic evaluation of individual with regards to

one’s performance on the job and one’s potential for
Appraisal development.

▪ Mostly for administration purposes (placement,

promotion, financial rewards, etc.)
 ▪ Salary Increase

Objective of ▪ Promotion
▪ Training and Development
Performance
▪ Feedback
Appraisal ▪ Pressure on employees
 ▪ Defining objectives of appraisal
▪ Defining appraisal norms
Process of ▪ Designing appraisal program
Performance ▪ Appraisal feedback
Appraisal ▪ Post-appraisal actions
 ▪ Ranking method
▪ Paired comparison
▪ Grading
▪ Forced distribution method
Methods of
▪ Forced choice method
Performance
▪ Checklist method
Appraisal:
▪ Graphic scale method
Traditional
▪ Essay method
▪ Field review method
▪ Self appraisal
 ▪ Appraisal by result or by objectives
Methods of
▪ BARS (Behaviorally Anchored Rating Scales)
Performance
▪ Assessment Centers
Appraisal:
▪ 360-degree appraisal
Modern
 ▪ Emphasizing on the development of the employees
rather than on their evaluation.
Potential ▪ Fulfilled by the potential appraisal, which involves
Appraisal assessing the capabilities of an employee which one
possesses but that is not being utilized fully.
 ▪ Performance appraisal
▪ A system used to judge the performance of employee
over a given period of time. Depending on the past
Contrasting performance a person is rewarded with an appropriate
cash incentive of bonus
Performance and
▪ Potential Appraisal
Potential ▪ A system done to judge the capability of the person for a
Appraisal possible future role. Focus on whether the individual has
the skills, aptitude, attitude, and competency for and
increased level of responsibility.
 Barriers to ▪ Faulty assumptions
Effective ▪ Psychological blocks
Performance ▪ Technical Pitfalls
appraisal
Overcoming ▪ Adoption of contemporary appraisal system
▪ Objectivity in appraisal and feedback
barriers