Intro To PMS 17022021 - ARC

Performance Management
Compiled for Teaching Purpose By: Dr. Arup Roy Chowdhury 1

Tentative Session Plan
Sessions Topic Case Study

Scope & Significance of Performance
1, 2 Performance Appraisal in
Management System
Career Builder Pvt Ltd.
3 PMS Workshop I
Organizational Structure & Performance Appraisal of
4, 5
Performance Management Process Legal Executives in National
6 PMS Workshop II Bank of India
7, 8 Performance Measurement Metrics
The Urgent Order
9 PMS Workshop III
10, 11
Frameworks The Dilemma at ABC Autos
12 PMS Workshop IV
13, 14 Talent Review Systems Green- Valley Megastores
15 PMS Workshop V
Overview of Pay-for-Performance
16, 17 Performance Appraisal
Plans
System Designs in ABC Steels
18 PMS Workshop VI
19, 20 Potential Appraisal
Take Aways
 Strategic PMS Process & Approaches

 Performance Management Frameworks
 Organization Structure & PMS
 Balanced Score Card
 EFQM Excellence Model
 X Matrix
 Talent Review Mechanism
 360º Feedback mechanism
 Potential Appraisal Process
 Gamification

Evaluation
Sl. Component Weightage Mode

No. (%)
1 Class Participation 10
2 Quiz I (Individual/Group) (End of Session 6) 15 Open Book
3 Quiz II (Individual/Group) (End of Session 15) 15 Open Book
4 End Term Examination 40 Open Book
5 Group Project 20

What is Performance?
Performance Management involves thinking through various facets of
 Performance
 Identifying critical dimensions of performance
 Planning
 Reviewing
 Developing & enhancing performance & related competencies
It is
 Simple
 Commonsensical
 Enjoyable
Performance has many Dimensions
Output or result dimension
Time dimension
Input dimension
Quality dimension
Focus dimension
Cost dimension
Performance is what is expected to be delivered by an individual or a set of individuals within a time

frame. What is expected to be delivered could be stated in terms of
 Results
 Tasks & Quality
With specification conditions under which it is to be delivered.
Input dimension deals with the activities/tasks to be accomplished by the Individuals
(Shraddha/Soumya).
The nature of activities to be undertaken by the concerned individual, the time frame,
the quality of inputs Constitute the input dimension.
Performance Equation
Timeframe
Ability/competence
Motivation
Organizational Support
Performance of an individual (Shraddha/Soumya) in organizational setting may be

defined as the output delivered by Shraddha in relation to a given role during a given
timeframe under the set of circumstances operating at that point of time

Performance Management consists of :
1. Defining performance taking into account all the complexities as described (KPA, tasks etc)
2. Planning performance both in terms of the input, output, conditions under which these are to take
place (Objectives, activities, targets etc)
3. Measuring performance& understanding the limitations in measuring performance.
4. Analyzing performance & understanding what caused it or contributed to it. Postively?

Negatively? etc. Identifying development needs & support requirements from this analysis.
5. Developing capabilities to perform or the capability to give inputs, possess competencies to convert
the inputs into desired output.
6. Monitoring it & reviewing it. (Performance review discussions etc.)
7. Recognizing various dimensions of performance & rewarding it wherever appropriate.

Dyadic Performance

Measure of Dyadic Performance:
Use the following Q’nnaire to measure dyadic performance. Collect data from each of
the pairs of a given Supervisor or Manager. The sum of the scores will give the Dyadic
Performance Index.
1. I enjoy working with this person.
2. He provides me the guidance & support required to do my job well.
3. He provides me the information & support required to do my job well.
4. He is a great motivator. I feel motivated to work with him.
5. He gives me feedback that is empowering.
6. He complements and supplements my own effort.
7. We work well as a dyadic team.
8. I get a clarity about my job & what is expected out of my job.

Performance Management:
Scope and Significance

Scenario

Performance Management is a Continuous Process of
 Identifying
 Measuring
 Developing the performance of individuals & teams and
 Aligning performance with the Strategic Goals of the organization

Main components of the definition:
1) Continuous Process
Performance Management is ongoing. It involves a never ending process of
 Setting Goals & Objectives

 Observing Performance
 Giving & receiving Feedback
 ongoing Coaching
2) Alignment with Strategic Goals
Performance Management requires that managers ensure that employees’ activities

and outputs are congruent with the organizational goals & consequently help the
organization gain a competitive advantage.
Performance Management therefore creates a direct link between employee

performance & organizational goals & makes the employees’ contribution to the
organization explicit.
 Many organizations have what is labeled a “Performance Management” system.

However, we must distinguish between Performance Management & Performance
Appraisal.
 A system that involves employees evaluations once a year without an ongoing effort to
provide feedback and coaching so that performance can be improved is not a true
PMS. Instead this is only a Performance appraisal System.
 Performance Appraisal is the systematic description of an employees strength &

weaknesses. Thus Performance Appraisal is an important component of PMS, but it is
just a part of the bigger whole because PMS is much more than Performance
Measurement.

Performance Management is a holistic framework. It integrates
 Vision
 Business objectives
 Strategic goals
 Critical Success factors
 Action plan
 Performance measurement

Source: Bititci and McDevitt (1997)
18
Compiled By: Dr Arup Roy Chowdhury; Ref: Performance Management
Strategy formulation
• Analysis of environment
Strategy Implementation
• Development of objectives
• Development of processes
• Resource Allocation
• Ensuring information flow
19
Compiled for Teaching Purpose By: Dr. Arup Roy Chowdhury

A schematic representation of the activities within the scope of Performance Management
20
Strategic Alignment
Strategy formulation
•Requires alignment of every facet of organization's activities
•Ensures each activity contributes to organization's goals
•Avoids superfluous activities and wastage of resources
•Example of same in next slide for small restaurants common in Chennai/
Bangalore/ Mumbai

Strategy Map
A strategy map is a simple

What is a strategy map used for?
graphic that shows a logical,
cause-and-effect connection
Strategy maps describe how organizations create
between strategic objectives
value by building on strategic themes such as
(shown as ovals on the map). It
'growth' or 'productivity'. They provide a way
is one of the most powerful
for companies to 'tell the story' of
elements in the balanced
their strategy to employees and other corporate
scorecard methodology, as it is
stakeholders, thereby increasing engagement in
used to quickly communicate
the strategic process.
how value is created by the
organization.
Differences Between Balanced Scorecard and Strategy Map
Strategy maps help clarify the strategy and the related strategic objectives,
whereas balanced scorecards are used to establish metrics and targets to measure
and manage the performance of the organization against
those
Compiled strategic
for Teaching objectives.
Purpose By: Dr. Arup Roy Chowdhury 22
How to Create a Strategy Map
 A strategy map looks similar in structure to a swim lane diagram but the
concepts it deals with are more similar to those found on a balanced
scorecard.
 Strategy maps are divided into horizontal lanes that represent different
perspectives to evaluate.
 These perspectives are typically Financial, Customer, Internal Business

Process, and Learning and Growth, following the typical balanced scorecard
divisions.
 For each category, brainstorm ways to improve that aspect of your business
and place your ideas inside boxes and ovals.
 Connect the ideas with arrows to illustrate relationships between the goals
and changes listed.

Analysis of typical fast food restaurants found in Southern cities
34
35
36
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Performance Management

Compiled for Teaching Purpose By: Dr. Arup Roy Chowdhury 1

Sessions Topic Case Study

 Strategic PMS Process & Approaches

Compiled for Teaching Purpose By: Dr. Arup Roy Chowdhury 3

Sl. Component Weightage Mode

Compiled for Teaching Purpose By: Dr. Arup Roy Chowdhury 4

Performance Management involves thinking through various facets of

 Identifying critical dimensions of performance

 Developing & enhancing performance & related competencies

Output or result dimension

Performance is what is expected to be delivered by an individual or a set of individuals within a time

Performance of an individual (Shraddha/Soumya) in organizational setting may be

Compiled for Teaching Purpose By: Dr. Arup Roy Chowdhury 8

3. Measuring performance& understanding the limitations in measuring performance.

4. Analyzing performance & understanding what caused it or contributed to it. Postively?

6. Monitoring it & reviewing it. (Performance review discussions etc.)

7. Recognizing various dimensions of performance & rewarding it wherever appropriate.

Compiled for Teaching Purpose By: Dr. Arup Roy Chowdhury 9

Compiled for Teaching Purpose By: Dr. Arup Roy Chowdhury 10

1. I enjoy working with this person.

2. He provides me the guidance & support required to do my job well.

3. He provides me the information & support required to do my job well.

4. He is a great motivator. I feel motivated to work with him.

5. He gives me feedback that is empowering.

6. He complements and supplements my own effort.

7. We work well as a dyadic team.

8. I get a clarity about my job & what is expected out of my job.

Compiled for Teaching Purpose By: Dr. Arup Roy Chowdhury 12

Compiled for Teaching Purpose By: Dr. Arup Roy Chowdhury 13

Performance Management is a Continuous Process of

 Developing the performance of individuals & teams and

 Aligning performance with the Strategic Goals of the organization

Compiled for Teaching Purpose By: Dr. Arup Roy Chowdhury 14

Performance Management is ongoing. It involves a never ending process of

 Setting Goals & Objectives

2) Alignment with Strategic Goals

Performance Management requires that managers ensure that employees’ activities

Performance Management therefore creates a direct link between employee

 Many organizations have what is labeled a “Performance Management” system.

 Performance Appraisal is the systematic description of an employees strength &

Compiled for Teaching Purpose By: Dr. Arup Roy Chowdhury 16

Compiled for Teaching Purpose By: Dr. Arup Roy Chowdhury 17

Compiled for Teaching Purpose By: Dr. Arup Roy Chowdhury

Compiled for Teaching Purpose By: Dr. Arup Roy Chowdhury 21

A strategy map is a simple

Differences Between Balanced Scorecard and Strategy Map

 These perspectives are typically Financial, Customer, Internal Business

Compiled for Teaching Purpose By: Dr. Arup Roy Chowdhury 23

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