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Performance Management

System

Dr Swati Agrawal
Objectives of today’s session
Session 1
 Understand your expectations
 Discuss basics relating to Performance
Management
 Establish a Framework for rest of the
sessions
 Learning Methodology– pedagogy
Why Performance Management?

“Managerial Moments of Truth”


Why Performance Management?

High Impact Process

Business
Goals

Reward & Development


Recognition Performance Management
Planning
Framework

Career & Succession Planning

Central to organizational Success


Why Performance Management?

 Helps plan and Manage Performance


 Optimizes and channelizes efforts and behavior
of people
 Provides a structure to communicate
systematically
 Helps employees to improve their performance
and develop their skills
 It is not a “Performance Appraisal Event”
 Extremely important strategic tool
Performance Management
vs Performance Appraisal
 Performance appraisal  Performance Mgt
 Annual Event  Ongoing interaction
 Top Down evaluation  Multiple feedback
 No customer involvement  Customer involvement
 Static format  Flexible Format
 Individual orientation  Team Participation
 Activity based  Objectives Based
 Results only  Results and processes
 Job Description focus  Strategic priorities linked
 Retrospective focus  Retrospective and
prospective
Performance Management
 Performance Management is creating shared
vision of the purpose and aims of the
organization, helping individual employees to
understand and recognize their part in
contributing to them and thereby managing and
enhancing the performance of both individual
and the organization.
( Fletcher and Williams, 1992,a)
Performance Management is strategic and
integrated approach of getting better
results from the organization, team and
individual by understanding and managing
performance within an agreed framework
of planned goals, standards and
competence requirements and developing
the capabilities of team and individual
contributors.
Steps –Performance
Management
 Step 1
 Performance Planning
 Aligned to performance year?
 Aligned to Strategy

 Agree on objectives and Targets

 Assign weightages to Targets

 Assign measures for all targets

 Agree on process of realignment


Steps—Performance
Management

 Step 2
 Feedback and Coaching/Mentoring
 Periodicity of formal feedback
 Assessment of coaching/mentoring needs
 Rollout of above processes
 Ongoing feedback
 Two way process
Steps—Performance
Management

 Step 3
 Assessment ,Reward and Development
 Ratings?/Rating Fitments
 Performance Reviews
 Development Planning / Review
 Rolling out the reward process
 Variable pay Structures
Steps—Performance
Management
 Step 4

A new performance year begins


Performance Planning

Performance Assessment Performance Coaching

ANZ Grindlays Bank’s Process

Aim is to help each one of the employee achieve his their own goals
while at the same time meeting the Bank’s immediate business objective
and strategic goals.
Framing policy/Guiding Principles
 Global Focus
 Business Strategy
 Continuous Improvement
 Results vs Process
 Individual and team objectives
 Ongoing feedback and participation
 Customer and Supplier feedback
 Developmental Activities
 Formal Measurements and Review
 Rewards Linked to contributions
 Ongoing execution support and redevelopment
Success Factors
 Top Management involvement
 Driven by a strong culture of performance and
development
 Considered a shared Employee-Manager
responsibility
 Line Management Driven
 Integrated with business planning,human
resource planning and development planning
systems
 HR facilitates an aggressive follow up and
delivery of actionable agenda
 Constant training and support
Performance Management Strategies
ORGANIZATIONAL Level
Intervention
Reengineering selection
Reengineering performance appraisal
Reengineering Training Development
Reengineering Compensation
Reengineering Career Development
Enhanced Enhanced
Motivation Job Level
GROUP Level Intervention Level
Creating motivating climate
Participative Decision Making
Support
Empowerment
Group Psychotherapy and T Group

INDIVIDUAL level Intervention


Mentoring
Role Clarification
Organizational Mission, Goals, Strategy
and Operational plans

Individual Role & its Description,


Indices for Monitoring Performance, Role wise Plans and
Performance Standards, expectations

Feedback Monitoring and Mentoring


Stocking Activity

Performance Management Process Docket


Input Throughout Output

Managee Task related Managee Performance


Potential Activities & Context or Effectiveness

Feedback

Feedback

Performance Framework
Dimensions Of Performance
Management
 Output or Result Dimension
 Input Dimension
 Time Dimension
 Focus Dimension
 Quality Dimension
 Cost Dimension

LG Model

Empower
Aligning Employees
The HR
Value, High
System Partnership,
Targets
Openness,
Speed, Aim High
Innovation

Building A
High
Performance
Culture
Exceptionally
Differentiation
Strong
Training Review Rewards
System

Develop
Leaders