Performance Management Framework

&

HR Perspective
Research Ajit Sawant
Introduction

What is a performance management?

As a manager your job is to get results; specifically to get results through others. Let us
see what all things a manager does to achieve this. He generally performs following tasks
as his day-to-day activities.

The manager leads, manages, plans, and budgets. He counsel people, motivates them and
disciplines them. He hires them and sometimes also fires them. He writes proposals and
reports, gives presentations and conducts meetings. And most importantly he solves
problem and makes decision.

These things are important but not alone. They are only important to get results. They are
just means to end. They are just the things a manager needs to do get results. But that
does not mean that if a manager does these things properly he will manage to get results.
He should plan all these activities with the end in mind. And this is what the performance
management allows the managers to do. Performance management is a technique for
beginning with the end in mind.

There are three important areas that are covered in performance management. These are
shown in the diagram below.

Key Results Area

Goals Key Performance

Indicators

• Key result areas

They deal with the outcomes or results managers are responsible to achieve.
• Key performance indicators
They are the measures or gauges that are used to find out how well a manager has
performed to achieve these results.
 • Goals
Goals are the tools you use to achieve these results.

Advantages of performance management

• People believe that they have stake in the organization.

• People feel motivated because they know where the organization is moving.
• Infighting and politics ceases to exist.
Definitions of ‘key result areas’ and ‘key performance indicators’

Key result areas deal with the ends and not means to them. The word ‘key’ signifies the
vital few results that are important. The results are the things that are intended
consequences of the things you do. The word ‘areas’ means that the results could be
made up of clusters of related but specific results. There is no strict limitation but as a
thumb rule the managers should have no more than four to five key results areas.

Key performance indicators as defined earlier are the gauges that are used to measure the
achievements of an organization. KPIs can be classified into two types.

Key Performance Indicators

Direct Performance Indicators Indirect Performance Indicators

Direct Performance Indicators are direct measured of the results. For example, if the
profitability is a KRA, profit can be classified as the Direct Performance Indicator. These
are the areas that are quantifiable in nature.

But many a times measuring the performance can not be that simple to be measured in
terms of direct performance indicators. Many a times non-quantifiable parameters could
also be the performance areas. For example brand loyalty. In such kind of cases we have
to go for Indirect Performance measures.

For example if a manufacturing company wishes to measure its performance. For this one
of the obvious key result area could be ‘Sales’. Now Sales can be measure in terms of
revenue over a given time or units sold. Each brand manager might use a different
measure out of these but nevertheless they both are directly linked to the KRA and that is
Sales. But sales may not be the ideal way to measure the performance. It is important that
the sales are made profitably. Hence KRA could be identified as ‘Profit’ and the
indicators could be Annual sales at annual gross margin or Absolute annual profitability.
Similarly there could be other KRAs like market share, expansion of the organization
reach in new geographical territories. But continuing with the sales example we can see
that the sales can not be made by the manager himself; he will definitely need to recruit,
hire and retain highly motivated world class sales team. This could be identified as his
KRA too. But there is no direct way to measure whether or not our team is world class or
not so in this case a set of indirect measurements can be identified as the performance
indicators. These indicators could be in terms of sales achieved per sales rep or sales as
percentage of payroll expenses or amount of sales training provided to each sales
representative or retention of best sales representatives and attrition of low performing
sales representative. Thus if the organization has best sales people on its roll, it pays
them well, keeps them motivated and happy.
Though the indirect measures go pretty close in identifying the thrust areas, it is often
very difficult to decide upon the indirect measure. This is because the indirect measures
come into picture when we are dealing with the intangible areas like people or knowledge
or competence. It is important to remember that a successful measurement system
provides a balanced view of the organizations operations. No single measurement can
ever be a true indicator of the performance. Even the most talked about measure, the
bottom line is just like that.

Requirements of Key Performance Indicators: -

There is a tendency in the organizations to ‘engineer’ the numbers. This is done to

impress the internal and external performance evaluators. By having an all-round
approach to performance measurement and control these kinds of malpractices are
discouraged.

But many a times it is also true that people do not do this deliberately. Sometimes people
themselves don’t know the true performance evaluation criteria. Earlier this did not use to
be a problem because the industries were manufacturing industries and people were
working there as an individual. But now by the growing stress on service related
industries it is difficult for them to exactly know what is expected out of them. Also the
work that people do is no more of individual nature but it is increasingly becoming team
centric. The all-round performance management system allows them to know what they
are doing and what they need to do in order to reach there. They can actually see the
contribution that they are making to there teams and hence the organizations.

It is also important that the Key Performance Indicators keep up with the time. They
should not be only static in nature and should take into consideration the trends that are
observed in various parameters.

Often key performers concentrate on the effects. It is like advising a batsman by watching
his average go down or go up. But what the player needs so as to improve the
performance is the timing of the shots, gaps which he can or can not explore while hitting
the balls. Similar things happen in the organization. Hence it is important that the
performance indicators are selected in right manner. For example s we have already seen
to measure the sales effectiveness the indirect measure like Hiring/ recruitment, retention
of the highly motivated and world class sales force could be a much performance
indicator than the direct measurements like just the sales figure, profitability etc.

The key performance indicators should be directly linked to the Vision, mission and
values of the organization. If any of these components change it is important that all the
indicators be revisited and analysed again to arrive at the correct indicators in the new
context. It is not advisable to follow same set of indicators just because someone else in
the past designed and/or followed it.
Goals and implementation

What are goals?

Goals are how you turn intentions into action. The dictionary meaning of the goals is ‘the
end to which the design tends’. To develop this concept let us go back a bit to the vision
and mission of the organization and then link it to the goals.

The vision that any company has is just like a destination. The vehicle that the company
is use to reach this destination is nothing but the mission. The values of the company give
a broad direction to journey. The organization should strive hard to reach the destination
but never by compromising on the values. The distance covered in the direction of the
destination could be the ‘key result area’ for the organization and the speed of travel,
stoppage times, and breakdowns could be the ‘key performance indicators’. And the
goals will be the path or the road that the organization takes to reach the destination. That
is the goal is the intention expressed by the organization to make a positive change in the
direction of the long-term vision and mission of it.

Goal setting is both a discipline and a skill. Like any other skills this takes time to master.
Here are see some of the guidelines for goal setting.

When the managers set the goals for the first time they suffer from a traditional problem
and that is they often over estimate what they can accomplish in the short term and under
estimate what they can achieve in long term.

• While setting a goal it is important to make sure that the goals are challenging. If
the goals are not challenging then they are not goals but they are just activities. for
example getting a project through bidding process is hardly a goal but completing
that project in lesser time or saving ten percent of the project costs is surely a
goal.
• The goals should be time bounded. The goals without the deadlines could just be
wishes. Because the deadline spurs the people involved into acting so as to
achieve the goal.
• There must be obstacles between the present state and the goal. If there are no
barriers between the present state and the goal then the goal would be nothing but
some other form of the present state. In fact the greater the obstacle, more one
exerts oneself to achieve them and hence brings out the real performance.
• Many a times lack of knowledge is given as a tame excuse for setting easy goals.
But as one progresses further in achieving them the things start becoming clear
and clear.
• But at the same time goals need to be believable (tough challenging).
Unrealizable goals set not only result into failure to achieve them but also
hampers the motivation levels in the organization.
 • The goals must be worthy of the time, energy, emotion and resources one expends
to achieve them. It must be measurable, both in terms of the time, energy,
resources that have gone into it and in terms of the value that they bring about.
• And as discussed earlier the goals should be in line with the mission, vision and
the values of the organization. Achieving the goals must result in the achieving
the ‘key result areas’ and they must be reflected in the ‘key performance
indicators’.

This completes the goal setting process.

After the key result areas, key performance indicators and the goals have been laid down,
it is important that these are shared with the team. Then follows the action plan to travel
on this path. But at the same time it is necessary that the team also contribute in the
process of setting the goal because unless they participate in this process, they do not feel
motivate enough to work towards them. Here’s a step-by-step guide to get the team to do
it.

• Call a meeting to discuss the ‘key performance areas’, ‘key performance

indicators’ and the ‘goals’. Take time explaining what they are and how they
work.
• Take inputs of the team about the organizational goals. Call a follow up meeting
to discuss these suggestions. Doing this the team gets motivated to participate in
the whole process of performance management.
• Develop the plans to attain the goals. Also monitor whether due to changing
environment you need to modify these plans or the goals themselves.
• Decide upon the rewards for the team on achieving the goals.
• Finally, review the KRAs, KPIs and the goals on the regular basis.
Performance Management in Employee perspective

Till now we have seen how the performance management can be used to improve the
business processes and to achieve success in moving towards the mission and vision of
the organization. Now we will concentrate our effort on performance management in to
effectively utilize the human capital that the organization has. We will not discuss the
exact performance management framework for the employee performance management
because this framework will vary from industry to industry and also from organization to
organization. But nevertheless we will discuss how to arrive at the framework in detail.

First of all let us define the performance management in the HR perspective.

Performance management can be defined as the ongoing communication process that

involves both manager and the employee in:

• Identifying and describing essential job functions and relating them to the mission
and goals of the organization
• Developing realistic and appropriate performance standards
• Giving and receiving feedback about performance
• Writing and communicating constructive performance appraisals
• Planning education and development opportunities to sustain, improve or build on
employee work performance.

The essence of the performance management system in organization is to recognize the

importance of the employees towards achieving the organizational objectives. The basic
requirement for this is that the employees’ personal goals should be perfectly aligned
with the vision, mission and the values of the organization.

The proposed conceptual framework also underscores the vital role of education, training
and development in the envisioned successful organization. In this organization,
continuous learning is a prerequisite to successful job performance and organizational
effectiveness. Employees must be able to learn work, developing effective technical and
people skills in order to assume new responsibilities, and keep pace with and anticipate
the changing nature of work and our workplace.

For performance managers and employees, responding to these changes requires the
ability to learn, adapt to change, solve problems creatively, and communicate effectively
in diverse groups. In addition, employees must take personal and proactive responsibility
for their careers to ensure future employability and advancement.

The realities of the contemporary workplace will continue to challenge existing

paradigms and should be considered in managing the performance of employees in a
dynamic working environment.
The framework:

Going by the framework of the performance management system, we will first identify
the Key result areas, Key performance indicators and Goals for employee performance
management and then dwell upon each of them in detail.

Key Result Areas:

For employee performance management the key result area could be like: -

• Reinforce good performance

• Improve unsatisfactory performance
• Foster a spirit of cooperation and teamwork

Key Performance Indicators:

The key performance indicators would be some things that can be measured over the time
period. Hence they would include something like
• Attrition rate of the employees (Direct)
• Efficiency of the employees at the departmental levels (Direct)
• How proud are the employees are about the organization (Indirect)
• Motivation of the workers (Indirect)

Goals:

Goals should include the action plan that we are going to follow to achieve the success in
the Key Result Areas. For achieving all these benefits of HR performance management
we recommend a five fold strategy and that is indicated in the diagram given below. The
five stages are two be followed in specific order as indicated by the arrows.
 Observation &
Feedback

Standards Of Performance
Performance Appraisal

Job Description & Performance

Strategic Plans Development

Let us see each of these issues in detail in the following chapters.

Job description and essential functions, Strategic plans and
the annual targets

This tells us what is expected out of the employee and hence it is the key result area
for the employee. Also these functions and the duties of the employee as well as the
authorities given to the employee are the things that the

Job description:

It is necessary that even before the employee is hired the job description is kept in
mind and published with the invitation for the applications. This is important because
the job description specified before the job starts becomes the job contents
afterwards.

Writing a job description is a process of systematically collecting, analyzing, and

documenting the important facts about a job. The job description provides a basis for
job-related selection procedures and performance standards.

The job description specifies:

• The specific job functions and tasks which are essential or otherwise
• The percentage of time typically to be spent performing each function
• The skills, knowledge and abilities required to perform the job successfully
• The physical and mental requirements of the position
• Special conditions of employment
• The level of supervision received and exercised.

Strategic Planning:

A strategic plan is composed of a mission statement, identified goals related to the

organization's mission, as well as strategic initiatives necessary to accomplish each
goal. The mission statement describes the fundamental reason that your organization
or department exists. The goals identify the results that will further that mission, and
strategic initiatives set out the specific steps that must be taken to achieve those
results. It must be appreciated that the strategic planning is the perpetual process and
the plans need to be updated from time to time.

Individual employees will each make a contribution to the realization of goals and
may be responsible for accomplishment of specific strategic initiatives in support of
those goals. To ensure that initiatives are completed, those responsible for particular
strategic initiatives are usually named and due dates are specified.

The annual goals and strategic initiatives for which the employee has responsibility
should be clarified to the employee while describing the position, setting standards
of work performance, giving feedback about performance, doing the annual
performance appraisal, and planning for employee education, training and
development. This helps in keeping the work force focused towards the ultimate
organizational objectives.
Standards of performance

The performance standard provides a benchmark against which to evaluate work

performance. While the job description describes the essential functions and the
tasks to be done, the performance standard defines how well each function or task
must be performed in order to meet or exceed expectations.

Standards of performance are usually:

• Developed in collaboration with the employees who do the tasks or

functions
• Explained to new employees within the first month on the job.

For example the standard performance can be calibrated in five stages as described
below.

E = Exceptional: Performance well exceeds expectations and is consistently

outstanding.

A = Above Expectations: Performance is consistently beyond expectations.

S = Solid Performance: Performance consistently fulfills expectations and at times

exceeds them.

I = Improvement Needed: Performance does not consistently meet expectations.

U = Unsatisfactory: Performance is consistently below expectations. Deficiencies

should be addressed as noted in the performance appraisal.

These performance standards are applied at the beginning of the appraisal period and
the performance is reviewed at the end of the period.

Developing the standards:

When performance standards are in place, both manager and employees will know
what the expectations are for the performance of essential functions and related
tasks. This common understanding provides the basis for ongoing feedback and
performance counseling between appraisals as well as for the formal performance
appraisal process.

One of the approaches for developing the standards is the directive approach in
which the performance manager writes the standards, in consultation with
management and the Employee Relations representative for his or her department.
Then the standards are shared with the employees affected for their information and
any questions they might have are addressed.
Another is a collaborative approach in which employees work with the manager to
develop the performance standards for their positions. While it is a legitimate option
to develop the standards without employee input, the benefits of a collaborative
approach are important. Both the performance manager and the employee bring
valuable information to the process and the end result is more likely to be supported
by everyone involved.

The performance manager, however, should make the final decision about the
appropriateness of the standards in consultation with management and the Employee
Relations consultant for your department. Mutual agreement with the employee
about standards is preferable, but may not be always possible. But mutual
understanding and recognition of the standards goes a long way in successful
implementation of the employee performance management system.

In the collaborative process of developing standards for a task or function, all of

those employees whose work will be evaluated according to those standards should
be included. If the task or function is unique to one position, then the employee in
that position in the development process should be included. If more than one
employee performs the task or function, all employees whose job description
includes it should be involved. For the sake of fairness and consistency, it should be
considered to collaborate with other units in the department if employees reporting
to different performance managers perform the same tasks or functions.

Before the team meets, it is necessary to explain to everyone involved exactly what
performance standards are, why they are important, and how they will be used. It
should be confirmed that the employees understand the process and solicit their
comments and questions. It should be made clear to them that the team should work
together to develop standards for their positions and that their recommendations and
concerns will be considered seriously. Also it should be explained that it is the
manager’s responsibility to make the final determination about the appropriateness
of the standards.

Writing the Standards:

All the participants in the standards writing process should have access to the
following documents:

• An up-to-date copy of their job description

• A copy of the department mission and goals
• The form for the performance appraisal model used in the department

This will cover any scope of negligence from the employees on account of
ignorance. It may be appropriate to define standards that apply to an entire essential
function, though typically standards are developed for related tasks. It is not
necessary to write a performance standard for every task in a job. Only those that are
most important to the position should be considered with the top most priority.
The behaviors and results that would constitute the minimum acceptable and
expected performance for the task or function should be explicitly stated.
Performance that satisfies those standards should be awarded with proper ratings.
Standards should be written in clear language, describing the specific behaviors and
actions required for work performance to meet, exceed or fail to meet expectations.

Following is the dos and don’ts list for the managers for developing standards:

1. Describe performance expectations in terms of timeliness (deadlines, dates), cost

(budget constraints, limits), quality (subjective and objective measures of
satisfaction), quantity (how many), customer satisfaction, independent initiative
demonstrated and any other relevant verifiable measure.

2. Specify the acceptable margin for error. Ideally perfection should not be the
standard even for the highest grade. Having the perfect outcome in the list of
standards might detract the employees from even having a shot at the top of the
ratings.

3. Refer to any specific conditions under which the performance is expected to be

accomplished or performance assessed. Statements like the following refer to the
conditions under which the task or function is done: 1) with training from XYZ, 2)
using job aids provided by PQR, 3) assuming all required information is received on
time from department, 4) assuming [this task] is performed N% of the work day.

Written performance standards may also be developed for the general categories to
be evaluated, like: initiative/innovation, teamwork/collaboration, leadership,
decision-making, etc. These standards should be developed for these categories with
the particular position as well as the needs of the organization in mind.

Guidelines for Performance Standards

Following guidelines should be kept in mind when writing performance standards:

• Performance standards should be related to the employee's assigned work

and job requirements. This helps remove any confusions and burdens that
might be there in the employee’s mind.
• The reporting systems should be adequate to measure and report any
quantitative data achieved by the employees.
• Quantifiable measures may not apply to all functions. Describe in clear
and specific terms the characteristics of performance quality that are
verifiable and that would meet or exceed expectations.
• Accomplishment of organizational objectives should be included where
appropriate, such as cost-control, improved efficiency, productivity,
project completion, process redesign, or public service.

Checking the Standards with the standards

After the standards have been written, they should be checked against the questions
in the following list:

1. Are the standards realistic? Standards should be attainable and

consistent with what is necessary to get the job done. Standards for
performance that meets expectations represent the minimum acceptable
level of performance for all employees in that position.
2. Are the standards specific? Standards should tell an employee exactly
which specific actions and results he or she is expected to accomplish.
3. Are the standards based on measurable data, observation, or
verifiable information? Performance can be measured in terms of
timeliness, cost, quality and quantity.
4. Are the standards consistent with organizational goals? Standards link
individual (and team) performance to organizational goals and should be
consistent with these goals. The success of the University's and
department's missions depends on this strategic connection.
5. Are the standards challenging? Standards may describe performance
that exceeds expectations. Recognizing performance that is above
expectations or outstanding is crucial to motivating employees.
6. Are the standards clear and understandable? The employees whose
work is to be evaluated on the basis of the standards should understand
them. Standards should use the language of the job.
7. Are the standards dynamic? As organizational goals, technologies,
operations or experiences change, standards should evolve.
Observation and feedback

Observing employee performance and offering feedback about what the performance
manager sees should be a routine part of the employee performance management.
Feedback is most effective in reinforcing or improving work performance when the
employee has confidence in the basis of that feedback. And the performance
manager, will be more confident when giving feedback based on information that he
can support. Hence it is important to first gather as much information as one can and
then packaging it in such a way that it brings about the performance without
hampering the organization’s health.

Observing Employee Performance

From the standpoint of performance management, observation involves noticing

specific facts, events, or behaviors related to work performance and the results of
work performance. Observations are the raw data upon which effective performance
feedback may be based. It must be appreciated that the purpose of observing
employee behavior and the results of work performance is not to use it as a stick
against them but is to identify and describe it in order to help the employee be
successful and continue to develop his or her skills, knowledge, and experience and
hence making the organization more efficient and effective.

When observations about the results of employee performance, the output employees
generate and the impact of their work are made, it is advisable to gather additional
information to make both praise and constructive feedback more effective.
Observations should be the basis for feedback, and may also suggest actions that
might be taken to support, develop or improve performance.

Feedback based on observed or verifiable data is more likely to influence employee

behavior than feedback that cannot be supported by firsthand information. For the
performance manager it may not be always possible to observe employees at work,
but he should build occasions to observe their performance into his workday and
consider it as his duty. In that way, he can provide opportunities to understand what
the employees do, to talk with and get feedback from them, to see employees as they
perform at their best and to recognize areas in which their performance could be
improved.

But this would be an ideal situation for the busy performance managers of today.
There has to be a way to ‘observe’ (and not monitor) the performance of the
employees when the manager can not be physically present. Here it is how: -

When the manager is not present physically he should develop the processes or the
mechanisms that would help him ‘observe’ the performance. The processes
developed should be open, fair and understood by everyone. Some of the processes
that can be useful in observing the performance are given below. The list is just an
indicative list and is not exhaustive. Every manager should understand the working
environment of his organization and modify the following processes or should
develop his own processes for observing the employees.

• Evaluate the output and products of the employee's work.

• Have routine one-on-one meetings with the employee and include discussions
of performance.
• Periodically review and discuss with the employee the standards of
performance for his or her job and your own expectations.
• Ask your employee to do periodic reports and share them with you for
discussion.
• Obtain feedback from customers - in writing when possible.
• Do brief stand-up check-ins or phone calls.
• Ask an appropriate person who is present day-to-day to serve as a work leader
or give the person authority to act in your stead, and ensure that everyone
understands the person's role.
• Perform routine spot checks of the employee at work.
• Ask for confidential evaluations of employee performance by peers (or direct
reports of supervisors). This process should be clearly understood by everyone
and applied fairly to all.

Behavioral Feedback

Feedback may be defined as "information about past behavior, delivered in the

present, which may influence future behavior."

Feedback is influential. During the performance appraisal period, feedback about

performance should be provided regularly. When employees receive feedback that is
timely, frequent and specific they are more likely to understand what is expected of
them, to repeat successful performance and to improve their work when necessary.

Feedback that describes observed or verifiable behavior and facts is different from
feedback that evaluates the person based on assumptions, interpretations,
generalizations and judgments about what the behavior or facts mean. for example:

1. That was a very poor report. I wish you were more committed to doing a good
job.

2. Your report was not formatted according to standard practice and the content
was based on data that is a year out of date.

Note that in statement #1, the speaker has judged the employee as lacking
commitment, and the statement about the report being "poor" is evaluative without
being helpful. Statement #2 tells the employee exactly what needs to be improved
without judging his or her character or motives. Employees' performance is more
likely to improve when asked to do something specific differently or in better
manner rather than asking them to be different or better. People become defensive
when they feel judged, and are more likely to accept feedback that is behavioral. It
may seem like just a matter of words and both the things indirectly meaning the
same thing but the words only play an important role in hurting the employee or
bringing about the performance out of him. Hence the packaging of the feedback is
as much important as the content is.

Behavioral feedback consists of statements about observed or verified behavior

related to performance standards. If the employee does not understand what you
expect or what the standards are, clear messages about those expectations and
standards should be given, understanding should be ensured by conformation from
the employee, and then employee should be given a chance to improve performance
to meet them.

Guidelines for Giving Behavioral Feedback:

1. Behavioral feedback should be based on specific, observable or verifiable, data

and information, and should be delivered as close to the event or behavior as
possible.

Example: I noticed that you arrived at 8:30 on Monday, Tuesday and Thursday
rather than at 8:00.

2. After describing the observations to the employee, ask for his or her input before
deciding what the behavior means. For example, it might have been observed that an
employee has been arriving late over a period of days. Before deciding that the
employee is being irresponsible, more information should be obtained. You may find
that there is a valid reason for the behavior or there are other factors that would
contribute to your understanding. Hence even when a clear-cut indication about the
performance has been obtained it should be compared with the other relevant
information. For example, the employee comes late it should be noted whether this a
regular phenomenon or only this week this has happened, also have all the other
employees staying in the same locality been late then it could be the problem of the
transport systems. Hence it is important to get to know more.

Example: I'd like to talk with you about the reasons for your late arrival.

3. Discuss the impact of the performance or its consequences, but never make threats
or promises of promotion. When an employee understands the impact of
performance, he or she will know why it is important.

Example: As a result, other staff had to leave their work to cover our service desk.
Communicate by words, body language and tone of voice that the intention is not to
hold him pray but it is to be helpful when giving feedback. The goal of feedback is
to reinforce or redirect performance so that the employee can be successful.

Examples

The behavioral approach to feedback is valuable when describing performance that

needs to be improved, because the employee learns which specific behaviors to
change rather than receiving general comments that don't give much information.
Compare the following statements.

1. This was not your best work.

2. This project was completed three weeks later than you originally estimated and
the result is that our client is thinking about bringing in an outside consultant
next time. What will it take to deliver on time in the future?

Statement #1 is vague and does not tell the employee what the specific performance
problem was. Statement #2 gives the employee a more complete picture of what
needs to be improved and the importance of improving performance. It also enlists
his or her support in improving future performance.

Behavioral feedback is also valuable when giving feedback about successful

performance. Compare the following statements:

1. Terrific job!
2. Everyone on the team appreciates the way you facilitated this meeting. You
identified the areas in which we were confused, you summarized to help us stay
on track, and you maintained your neutrality. As a result, we were able to come
to a decision today rather than haggling over details for another week.

When feedback about successful performance is given in specific behavioral terms,

the employee knows which behaviors to continue or repeat.

Feedback about performance in need of improvement is best delivered in private to

avoid embarrassment to the employee. it may be argued that the successful
performance feedback should be given in the public so as to portray this
performance to others but many a times people are also embarrassed when feedback
about successful performance is given in front of others. Also others in the group
may be hurt and be discouraged by such act. Feedback is more effective if the
manger knows and respects the preferences of his employees.

Notes that are made or records that are kept about employee performance should
also be phrased in behavioral terms. Statements that would imply subjective
judgment or prejudice about the employee’s personality, character, or motives
should be uprightly avoided. Employees should be encouraged to keep records of
their own accomplishments.
The performance manager and the employee should exchange performance-related
information throughout the review cycle. At these discussions, sufficient time should
be given to discuss accomplishments, needs for further training, and any problems or
concerns. If there are performance problems, meetings at regular intervals for the
purpose of providing feedback on performance should be scheduled. This practice
will ensure that issues are addressed promptly and a problem-solving approach is
fostered between the performance manager and employee.
Performance appraisal

Performance appraisal is a process of summarizing, assessing and developing the

work performance of an employee. In order to be effective and constructive, the
performance manager should make every effort to obtain as much objective
information about the employee's performance as possible.

The following are recommended steps for the performance appraisal process.

The preparation process involves review and data gathering, holding a preliminary
meeting with the employee, and employee preparation of a self-appraisal. The
following steps are suggested to the performance manager:

1. Before meeting with the employee, review his or her job description and work
record for the review cycle. Review your observations, notes, and the previous
performance appraisal. Obtain performance feedback from people with whom the
employee has worked (including direct reports, if appropriate). This is important
information to have when evaluating customer service and teamwork aspects of
the employee's job. Where customer service is a key part of the job, feedback
from customers may also be solicited. Locate and have ready any supporting
information.

If during the review cycle, the employee reported to more than one performance
manager, it is appropriate to consult with the other performance managers for
input into the appraisal. Before including any information in an appraisal that
indicates there was a performance problem, ask the previous performance
manager if the information about the problem has been shared with the employee.

2. Give the employee advance notice of the performance appraisal so that he or she
has the chance to review and prepare.

3. Hold a preliminary meeting with the employee in private. The first meeting
should take place before you write or deliver the formal performance appraisal.

At this meeting, explain or review what will happen during the appraisal process
and review the performance appraisal model used in the department. Do this even
if you have appraised the employee's performance in the past. With the employee,
review his or her job description and the department's strategic goals. Discuss and
decide which essential functions and strategic initiatives (for which the employee
is responsible) should be appraised for the period. Some functions or initiatives
may not have figured prominently in the employee's role for the appraisal period,
and appraisal in those areas may not be necessary or significant.

4. Conclude the meeting by scheduling a second meeting. Invite the employee to

prepare a written self-appraisal, if one is used in your department. A self-appraisal
 may be used as the basis of discussion during the formal appraisal process. You
have the option of 1) receiving the self-appraisal at the preliminary meeting, so
that you will have it prior to preparing your draft; or 2) receiving the self-
appraisal at the time you review your draft with the employee, for purposes of
comparison, and after discussing it with the employee, you may use the self-
appraisal to inform the final version of the appraisal. The self-appraisal is a
valuable tool through which to discover the employee's perspective on his or her
performance for the review cycle, as well as to identify interests related to goals
and career development initiatives.

Writing

The writing phase of the performance appraisal process involves completing the form
or the Performance Appraisal Models used by the department, and writing the
supporting comments. In writing the performance appraisal, and for each essential
function, task, annual goal or strategic initiative to be appraised, these questions
should be considered:

1. How does the level of performance compare with the performance standards for
this function, task, goal, or initiative?
2. How was the level of performance confirmed? What did you see the employee
doing? What do analytical reports or work products show?
3. What were the consequences, results and impact of the performance?

Comments

A three-step procedure is recommended for writing the comments in the performance

appraisal.

• Record the ratings that have been arrived at through the performance
standards.
• The behavior or incidents that have observed or verified that led to this
appraisal should be described.
• The impact or consequences of the behavior should be stated.

The comments in draft form should be prepared to discuss them during the formal
performance appraisal meeting with the employee. In this discussion with the
employee and review of his or her self-appraisal, new information, or be reminded of
previous information may be learnt, which might cause the manager to revise his
assessment. The final draft should be prepared and given to the employee after the
formal meeting and discussions have taken place.

Delivering
Planning the performance appraisal meeting contributes to the success of the
process. Below are some guidelines that should help the manager accomplishing the
goals of the formal performance appraisal meeting.

• Prior to the meeting, review your written appraisal of the employee's

performance. Review your notes covering the last year and the evidence in
support of the rating you gave.
• Plan your discussion. Objectives for the discussion include:
o Reviewing, discussing, and confirming understanding of the
essential functions listed on the job description, annual goals and
standards of work performance.
o Recognizing strengths and achievements.
o Confirming previously identified functional areas needing
improvement and establishing agreement about how improvement
is to be accomplished.
o Identifying areas in which education, training, or other
development opportunities are needed and a strategy for
developing skills, knowledge or abilities. Discuss and confirm
understanding and agreement about the steps the employee will
take to accomplish self- development goals, as well as how you or
the department will help.
• Plan to meet with the employee in private.
• When you meet, carefully review his or her self-appraisal. Discuss areas of
agreement and difference.
• Review your draft of the Performance Appraisal and supporting comments
with the employee. Discuss the employee's strengths first, covering each
point in detail. This sets a positive tone to start the discussion.

Previously discussed areas needing improvement should also be discussed.

The employee should be asked for suggestions about how he or she will
improve performance at the same time new ideas for improvement should
also be suggested.

Consider whether anything raised in the employee's self-appraisal sheds

new light on your assessment, and be prepared to modify your appraisal if
appropriate.

• Show your interest in your employee's progress and your willingness to take
up the discussion again any time. Close the appraisal when all points have
been covered and the employee has had the opportunity to provide input.

If changes are to be made to the appraisal, those changes should be discussed and a
date should be agreed upon by which the final draft of the appraisal will be prepared
and the appraisal will be signed.
After necessary changes have been made, the employee should be given a chance to
read, comment (if he or she would like to) and sign the Performance Appraisal. The
employee should be assured that that his or her signature indicates that he or she has
read the appraisal and that a discussion has taken place. It does not signify that the
employee agrees with the appraisal. He should be given a chance to attach his views
about the appraisal with the actual appraisal and sign the views in his presence so
that environment of mutual understanding is developed.

Producing

A copy of the final signed performance appraisal should be given to the employee
for his or her records. He or she can also use it as a guide for improving performance
and for professional development.

The performance appraisal process is intended to break down barriers and maintain
open communication, creating an atmosphere that allows a candid approach to
discussions of performance. During the new review period, the performance
manager and employee discuss the employee's performance on an ongoing basis
until it is time for the next written appraisal. This communication is part of the
ongoing process of observation and feedback.

By following the steps that are discussed above by the time the manager writes the
performance appraisal, he will have the resources he needs to do an effective job. He
will have a clear and current job description and performance standards in place. He
will have a supportable basis for making your appraisals. He will have documented
the employee's performance and given clear feedback about the performance over
the course of the appraisal period. He will have provided the employee with
opportunities to improve performance when necessary. There will be no surprises
about performance problems. At the time of the performance appraisal, both he and
the employee will discuss what the process will involve and you will invite the
employee's input.
Performance development

An important component of the performance management process is development of

employees' work-related skills, knowledge and experience. The development process
offers another opportunity for the manager and the employee to work collaboratively
to improve or build on his or her performance and to contribute to organizational
effectiveness.

Continuous Learning

Development of employee skills, knowledge and experience is essential in today's

rapidly changing workplace. In order for the organization to remain competitive and
to retain its reputation for excellence, employees should have up-to-the-minute
information and the ability to use new technologies, adapt to organizational change,
work in flatter organizations in which cross-functional skills and knowledge are
required, and work effectively in teams and other collaborative situations.
Employees, too, recognize that it is essential for them to continue to learn so that
they will be effective in their current jobs and able to move into other positions or
accept new responsibilities as circumstances demand.

Preparing the Plan

There are four principal occasions when preparation of a performance development

plan might be considered: 1) after definition or review of performance standards, 2)
as a part of the ongoing process of observation and feedback, 3) as the final element
of the performance appraisal process, 4) when an employee initiates a request for
education or development opportunities.

At any of these points in the performance management process, the issues like
training, education or development opportunities can be discussed with the
employee. Identify the specific steps to be taken and document a strategy for
accomplishing these objectives. That documentation should include:

• A description of the specific steps to be taken

• The names of those who will assist the employee
• End dates for the completion of the plan's objectives
• A statement of how successful completion of the plan's objectives will be
appraised.

Below is a list of examples of activities that could be considered appropriate for

employee development. The list is not exhaustive, but represents many of the most
commonly used methods:

• On-the-job training cross training

• Attending or participating in institutes or conferences
• Membership in professional organizations
• Participation in professional organizations
• Coaching or consulting
• Writing professional articles or books
• Individual career counseling
• New employee orientation
• Working with a mentor
• Management development programs (management skills assessment program,
middle management advance, etc.)
• Internships
• Self-study or reading assignments
• Computer-based training
• Participation in projects
• Participation on teams, task forces, or committees

Considerations

Performance development plans should be considered with the needs of the

organization and the needs of the employee in mind. The manager should ask
himself, "What are the new functions that this unit will need to perform in the near
term and over the next two to five years? What knowledge and skills will employees
need to develop in order to perform these functions?" Doing an assessment of the
unit's future goals and objectives will enable you to identify development
opportunities for the employees that will also benefit the organization.

When the manager supports and encourages the growth and development of his
employees, he builds employee motivation and commitment to the organization, and
improves morale. The unit, the department and the organization benefit when the
employee succeeds in developing new skills, knowledge or experience.

Some of the factors that may be appraised in deciding whether to authorize an

employee’s participation in a particular activity are:

• The employee's need for training

• The employee's career plan
• The needs and strategic goals of the organization
• The affirmative action objectives of the organization
• The resources of the department
• The advantages of one type of training over another
• The training needs of other department employees
• The effect of the determination on workload and other employees.

Performance Manager's Responsibilities

Assessment:
As mentioned above, effective preparation of performance development plans, with
and for the employees, requires the ability to assess the needs of the employee and
the organization.

The manager should help his employees to set career goals that are consistent with
their skills, knowledge, experience and interests by providing feedback based on
your observations and assessment of their abilities, readiness and potential. The
assessment should be based on his actual experience and observation of employee
performance and behavior rather than on assumptions and personal biases.

Providing Information:

Performance managers support career development when they inform an employee

about options for and possible barriers to career movement. For example, he may tell
his employees about upcoming positions or openings for which they may be
qualified, or about budgetary constraints that may inhibit career options or
development opportunities in the unit or department.

Referral:

The manager should refer his employees to others who can assist them in achieving
development goals. As a performance manager, it is his responsibility to be aware of
the appropriate referral sources both within and outside of his department.

He may refer employees to books, journals, professional associations or other

sources of information. You may also put them in touch with people who might be
willing to serve as mentors or with those who might provide an information
interview in which employees can learn more about a field or position from someone
who is currently working in that area or capacity.

Guidance:

The performance manager should encourage his employees to focus on clear,

specific and attainable career goals. He should share his knowledge and experience
with his employees. Typical questions employees might have are: 1) what is required
to move to the next logical position, 2) what are the chances for advancement in this
department, 3) how to be mobile within the organization, 4) how to qualify for
training and development opportunities, and 5) who to contact for further
information or career counseling. He should provide guidance to his employees
about steps they might take to improve existing skills and knowledge or develop in
new functional areas.

Develop:

Performance managers should support employee development when they assign

employees roles or tasks that challenge them and provide the opportunity to grow.
He should base his decisions about development options and opportunities on a
careful assessment of the employee's readiness to accept additional or new
responsibilities or challenges. He must consider delegating a responsibility that is
currently his own which is appropriate to the employee's classification and
development. He should provide on-the-job training and refer employees to classes,
workshops, and other learning and development opportunities, and recommend
employees to serve on committees, task forces or cross-functional teams.

This completes the guide on employees’ performance management.