Performanc

Objective
Explain What is Performance Management
Describe the Elements of Performance
Management System
Describe the Objectives of Performance
Management
Explain the Performance Management Process
Explain the Key to Performance Management
List the differences between Performance
Appraisal and Performance Management
Explain the various Performance Appraisal
Methods
List the Steps in Writing Performance and Goals
Explain the Tips for Successful Performance
Management
Explain What are Key Performance Indicators
Describe the Challenges of Performance
Management
Explain the Sources of Errors in Performance
Management

Introduction

Helios Inc. has

several
employees
working across
different

Lately, Helios
has been
recording
decreased
profits.

Upon auditing,
they found that
there was low
performance
across many

Introduction

Helios could have easily

used an effiective
Performance
Management System to
monitor and manage

Performance
Management is an
important
management tool
which is critical for

Let us learn
about
Performance
Management
in detail.

What is Performance Management?

It is integrated, because it effects four types of integration:

Vertic
al

Goals

Function
al

Human
Resour
ce

Definition of Performance
Management

Performance Management has been defined as:

A strategic and integrated approach to delivering sustained
success to organizations by improving performance of people
who work in them and by developing the capabilities of teams
and individual contributors
An important aspect of performance management is
performance appraisals where a clear set of quantifiable goals
and objectives are used to measure an individual performance
against these goals.

Elements of Performance
Management
System
The
key elements of a Performance
Management System include the following:
A Formal Compensation Philosophy
Statement
Salary Administration Program

A Formal Audit/Success Rating

overview on an annual or periodic
basis with disclosure of results to
management

Lets look at each in detail.

Principles of Performance
Management
Supports
business-oriented strategy

Is values based

Communicates organizational mission

Fulfils responsibilities to organizational

members
Enables employees to manage own
performance
Manages expectations (clarifies roles and
responsibilities)
Creates partnership between management
and employee
Emphasizes importance of measurement,
feedback, and reinforcement

Empowers employees

Natural extension of management

Objective of Performance
Management
To review the performance of the employees over a
given period of time
To judge the gap between the actual and the desired
performance
To help the management in exercising organizational
control
Helps to strengthen the relationship and
communication between superior subordinates and
management employees
To diagnose the strengths and weaknesses of the
individuals so as to identify the training and
development needs of the future

Importance of Balanced Scorecard

Strategic
Planning

Mission &
Vision

Balanced
Scorecard

Activity Based
Costing
Economic Value
Added
Forecasting
Benchmarking
Market Research
Best Practices
Six Sigma
Statistical Process
Control
Reengineering
ISO 9000
Total Quality
Management
Empowerment
Learning
Organization

Possible Performance Measures

Customer Perspective
Financial / Regulatory Perspective
Internal Perspective
Learning and Growth

Lets look at each in detail.

Performance Management for the

Organization

To give feedback to the staff about their

performance.
Encourages good work and points towards
improvement opportunity

Helps setting measurable targets and

objectives

Increases Role Clarity

ManagementStudyGuide.co
m This
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Performance
Performance Management.
Management.
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