The purpose of performance management strategies:-

Performance management strategy aims to provide the means through which better results can be obtained from the
organization, teams, and individuals by understanding and managing performance within an agreed framework of
planned goals, standards, and competence requirements.

A performance management system tracks the performance of employees in a manner that is consistent and
measurable. The system relies on a combination of technologies and methodologies to ensure people across the
organization are aligned with – and contributing to – the strategic objectives of the business

Performance management defines : the relationship that should exist between state employees and their
Managers. To be effective, employees must understand how their work contributes to the success of the
organization.

Performance management is an interactive process where Agency Leadership communicates the agency’s strategic
vision and objectives to every Manager and employee, who then develop program, division, and individual goals
designed to align with the agency’s strategic objectives.

Everyone is responsible for the implementation and administration of the performance management process
defined in this policy and its accompanying procedure(s).
Key components of an effective performance management culture include:
• Clearly defined goals for the agency, which are cascaded to Managers to create specific, aligned
performance goals for their teams.
 • Specific, measurable, achievable, relevant, and timely performance goals expressed as an outcome
or result of agency goals.
• Statewide, supervisory, and role-assigned competencies that aid employees in successfully
achieving performance and development goals
• Ongoing feedback and communication between the employee and the Manager to regularly track

Observations and progress on performance goals.

• Formal assessments of performance, conducted at regular intervals during the review period, with
the most common being the Interim Review and Performance Appraisal.
• Timely and meaningful recognition of successful performance outcomes.
• Timely, appropriate intervention when performance is less than Successful

There are three stages in the performance management process:

 Plan and act with goal management.

 Monitor with continuous performance management.
 Evaluate and recognize through performance assessments.

Annual Reviews Vs Strategic Performance Management

An annual review assesses a person’s performance and value to the company. Businesses use yearly assessments to
determine the best performers, evaluate their progress, and reward them. Strategic performance management is a tool for
corporate management. It enables managers to examine and evaluate the work of their personnel. It aids in fostering a
culture where employees can give their all and deliver the best possible work quickly and skillfully.

It allows for contextualizing individuals within the larger workplace structure while emphasizing accountability and
transparency. According to Simply Learn, it helps people understand expectations more clearly. Annual reviews and
strategic performance management are distinct terminologies. The use of both strategies in an organization is
advantageous to any organization.

Strategic Performance Management Annual Reviews

It focuses on ensuring that employees are better placed to Focuses on evaluation of previous performance. It also
perform for the betterment of the company. communicates to employees about their performance on
current tasks. It doesn’t have a strategy for employee growth
in the future.

Evaluates whether an employee has accomplished assigned Only focuses on the annual performance of an employee and
tasks or goals or not. It also seeks to weed out any hindrances gives feedback.
to peak performance.

It is more future-oriented, looking at how the employee can Evaluates an employee’s weaknesses and provide avenues
perform better going forward. for better performance

It is a continuous process between managers and employees, At most, it takes place twice a year.
sometimes through day-to-day conversations.

Applies both qualitative and quantitative approaches with the It’s mostly a quantitative process.
intent of enhancing employee performance.

It is a multi-stakeholder proves involving employees, It is under the purview of the human resources department.
managers, supervisors, and employees who take part in
everyday processes.

Very flexible Rigid

 Strategic Performance Management Annual Reviews

Experts consider it a strategic tool. It is an operational tool ideal for enhancing the efficiency of
employees.

Performance Strategies

First Balanced Scorecard (BSC)

 A balanced scorecard is a performance metric used to identify, improve, and control a business's various
functions and resulting outcomes.
 BSCs were originally developed for for-profit companies but were later adapted for use by nonprofits and
government agencies.
 The balanced scorecard involves measuring four main aspects of a business: Learning and growth, business
processes, customers, and finance.
 BSCs allow companies to pool information in a single report, to provide information into service and
quality in addition to financial performance, and to help improve efficiencies.
 SCs were originally meant for for-profit companies but were later adapted for nonprofit organizations and
government agencies.2 It is meant to measure the intellectual capital of a company, such as training, skills,
knowledge, and any other proprietary information that gives it a competitive advantage in the market. The
balanced scorecard model reinforces good behavior in an organization by isolating four separate areas that
need to be analyzed. These four areas, also called legs, involve:
  Learning and growth
 Business processes
 Customers
 Finance

Balanced Scorecard Advantages

1. The BSC allows businesses to pool together information and data into a single report rather than
having to deal with multiple tools

2. Scorecards provide management with valuable insight into their firm's service and quality in
addition to its financial track record

3. It helps companies reduce their reliance on inefficiencies in their processes. This often results in
reduced productivity or output, which can lead to higher costs, lower revenue.

4. It Provides a Visual Picture of Strategy

5. It Works as a Base for the Discussion

6. It Works on Three Levels of Abstraction , it allows us to work on three levels of abstraction:

 Mission and vision

 Strategic priorities or themes
 Goals (quantified by indicators)
 Action level (initiatives and action plans)
7. Support of the Business Context by Design

8. Easier Data Collection

 9. Cascading and Alignment Explained

10. Easier Strategy Reporting

11.The Framework is Well Accepted

12.Easy to Get Trained in the Concept
13.13. Software Automation Makes Things Easier

Balanced Scorecard Disadvantages

1. Balanced Scorecard Term is misleading

2. No Focus on External Factors and Competitors

3. Lack of Risk Analysis
4. Lack of Time Dimension
5. The Choice of Indicators is not Validated
6. Unidirectional Bottom-Up Cause-and-Effect Logic
7. Consultants Won’t Do the Balanced Scorecard for You
8. Strategy Map / KPIs are Hard to Maintain
9. Won’t Work without Cultural Shift

The Balanced Scorecard is perceived by many as:

 A tool from the top managers’ world

 A tool that is focused on the KPIs, and
 That those KPIs are used to control performance results.
Second: 360 Degree Feedback

It is an evaluation system or process in which employees receive confidential, anonymous feedback from the
people who work around them. This typically includes the employee's manager, peers, and direct reports .

360 Feedback As A Development Tool To Help Employees Recognize Strengths And

Weaknesses And Become More Effective

360 is highly effective as a development tool. The advantages of the feedback process include giving
people an opportunity to provide anonymous feedback to a coworker that they might otherwise be
uncomfortable giving. Feedback recipients gain insight into how others perceive them and have an
opportunity to adjust behaviors and develop leadership skills that will enable them to excel at their jobs.

360 Feedback As A Performance Appraisal Tool To Measure Employee Performance

Using a 360-degree feedback system for Performance Appraisal is a common practice, but not always a
good idea. It is difficult to properly structure a 360-feedback process that creates an atmosphere of trust
when you use 360 evaluations to measure performance. Moreover, a 360-feedback survey focuses on
behaviors and competencies more than on basic skills, job requirements, and performance objectives.
These things are most appropriately addressed by an employee and his/her manager as part of an annual
review and performance appraisal process. It is certainly possible and can be beneficial to incorporate
360 feedback into a larger performance management process, but only with clear communication on how
the 360 feedback will be used.
360 FEEDBACK BE USED:

o Custom Insight recommends repeating 360 feedback every one to two years to allow people to work
through their development plans. The goal of a 360 review process is to provide actionable feedback
to improve performance. This cannot happen overnight.

360 Feedback Advantage:

o 360 feedback measures behaviors and competencies
o 360 assessments provide feedback on how others perceive an employee
o 360 feedback addresses skills such as listening, planning, and goal-setting
o A 360 evaluation focuses on subjective areas such as teamwork, character, and leadership effectiveness

360 Degree Disadvantage

o 360 feedback is not a way to measure employee performance objectives (MBOs)
o 360 feedback is not a way to determine whether an employee is meeting basic job requirements
o 360 feedback is not focused on basic technical or job-specific skills
o 360 feedback should not be used to measure strictly objective things such as attendance, sales quotas, etc .
 Third MBO ((Management by Objectives))

MBO stands for Management by Objectives and is a framework designed to manage businesses based on their
needs and goals. MBO goals are tailored to meet the needs of today’s fast-growing businesses and fast-paced work
environments.

It can be defined as a management system that measures employees' performance against a series of set targets or
goals to gauge their overall performance in their role. These objectives are often tied into those set for the overall.

MBO process consists of five steps:

1. Set company objectives

2. Cascade objectives to employees
3. Monitor
4. Evaluate performance
5. Reward performance

The management by objectives technique has several Advantages, including:

 Teamwork – As MBO drives each member of staff towards business-focused objectives, it can lead to
improved communication and teamwork.
 Clarity – MBO sets out straightforward business goals and gives each member of staff a clear set of tasks
to help meet them.
 Empowerment – Equipped with clear objectives related to the wider business strategy, staff at all levels of
the organization feel involved, empowered and indispensable.
 Efficiency – With staff goals geared towards business success, managers know all staff are facing the same
direction.
 Customization – Managers tailor each set of objectives to individual staff members — based on their
specializations, skills, qualifications and career goals.

MBO can present several Disadvantages too:

 High-pressure – With a measurable, business-aligned set of goals, staff can feel under pressure.
 Impersonal – Though goals can be tailored to individual staff skills, they might omit personal and
career development considerations.
 Lack of context – MBO approaches don’t account for factors like motivation, resources and buy-in.
It also doesn’t reflect existing work culture, conditions or ethos.
 Over focused – Focusing exclusively on business goals can detract from other important elements of
your operations.