PERFORMANCE MANAGEMENT

A Process that consolidates GOAL SETTING PERFORMANCE APPRAISAL and DEVELOPMENT into a Single, Common System.

Comparing Performance Management with Performance Appraisal
‡ PERFORMANCE APPRAISAL: It means EVALUATING an employee·s Current or Past Performance relative to his or her Performance Standards. ‡ PERFORMANCE MANAGEMENT: A process which consolidates 1. Goal Setting 2. Performance Appraisal 3. Development in to a single common system, the AIM of which is to ensure that the employee·s Performance is SUPPORTING the company·s STRATEGIC AIMS.

PERFORMANCE MANAGEMENT
‡ Performance Management includes the practices through which the manager (a) DEFINES the Employee·s GOALS and WORK (b) DEVELOPS the Employee· CAPABILITIES (C) EVALUATE and REWARDS the Employee·s EFFORT all within the framework of How the employee·s performance should be Contributing to Achieving the Company·s GOALS.

PERFORMANCE MANAGEMENT
DEFINING THE EMPLOYEE·S GOALS AND WORK EFFORTS Guidelines for Effective Goal Setting: Assign Specific Goals Assign Measurable Goals Assign Challenging but Doable Goals Encourage Participation

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PERFORMANCE MANAGEMENT: Appraising Performance REASONS TO APPRAISE SUBORDINATE·S PERFORMANCE:
‡ 1. It does little good to Translate the Employer·s Strategic Goals into Employees· Goals, If you Don·t periodically Review Your employees· Performance ‡ 2. Develop a plan for Correcting any Deficiencies ‡ 3. Provide the Opportunity to Employee to Review Career Plan in the light of his/her Exhibited Strengths and Weaknesses 4. It almost always Affect the employer·s Salary and Promotional Decisions.

PERFORMANCE MANAGEMENT
‡ It is an approach to creating a -Shared Vision of the Purpose and Aims of the Organization,
-Helping each employee Understand and Recognize their Part in Contributing to them (Purpose and Aims of the Organization), and in so doing, -Manage and Enhance the Performance of both Individuals and the Organization.

PERFORMANCE MANAGEMENT: SCOPE
‡ PM Concerns everyone in the business- not just the managers. Responsibility is shared bt. Managers and the Team members. Managers should regard the people who report to them as CUSTOMERS for the managerial contribution and services they

General Considerations Affecting the Management and Improvement of Performance ‡ Another important Feature of an EFFECTIVE Organization is the Pursuit of High Performance by DEVELOPING COMPETENCIES. Competency is the Key that Unlock the door to individuals in Realizing their Maximum Potential and Providing Maximum Growth Opportunities for Personnel.

PERFORMANCE
‡ Record of Outcomes Achieved ‡ Record of Persons Accomplishments ‡ The Outcome of work because they provide the strongest Linkage to the Strategic Goals of the Organization Customer Satisfaction Economic Contributions

PERFORMANCE
‡ Performance is Behavior and should be Distinguished from the OUTCOMES because they can be Contaminated by System Factors. ‡ Comprehensive View of Performance; Performance means both Behavior and Results.

PERFORMANCE
MIXED MODEL of PM ‡ It is concluded that when managing the Performance of Teams and Individuals, both INPUTS (BEHAVIOR) and OUTPUTS( RESULTS) should be Considered. ‡ It is about How Things are Done and What is Done?

FACTORS AFFECTING PERFORMANCE
‡ PERSONAL FACTORS ‡ LEADERSHIP FACTORS ‡ TEAM FACTORS ‡ SYSTEMS FACTORS ‡ CONTEXTUAL( SITUATIONAL) FACTORS

PERFORMANCE MANAGEMENT
‡ A Process of Aligning or Integrating individual Objectives to Achieve Organizational Effectiveness ‡ Development is the Prime Purpose of PM ‡ It needs Encouraging, Developing, Supporting and Sustaining.

PERFORMANCE MANAGEMENT
Foundation upon which PM is built: ‡ People Know and Understand What is Expected of them. ‡ Have taken part in Forming those Expectations. ‡ The Capacity to meet Expectations depends on; 1. level of Capabilities of People 2. Level of Support they are given by Management 3. Process, Systems, Resources made Available to them by the Organization

PERFORMANCE MANAGEMENT
‡ Considering the above the basic Aims of PM is: -To Share Understanding about What is to be Achieved -To Develop the Capacity of people and the Organization to Achieve it -To Provide Support and Guidance

Performance Management SEQUENCE
1. Corporate Mission and Strategic Goals 2. Business and Departmental Plans and Goals 3. Performance and Development Agreement 4. Performance and Development Plan

Performance Management SEQUENCE
5. Action- Work and Development 6. Continuous Monitoring and Feedback 7. Formal Review, Feedback, and Joint Assessment 8. Rating 9. Financial Reward

Performance Management SEQUENCE
‡ 1.Corporate Mission and Strategic Goals: Starting point of PM Process. All the Activities in the sequence must be aligned to them and contribute to their Achievement. ‡ 2. Business and Departmental Plans and Goals:

Performance Management SEQUENCE
3. Performance and Development Agreement:
‡ ‡ Agreement on Objectives and Accountabilities reached by individuals with their Managers. Performance Agreement defines: the Work to be Done, the Results to be Attained the Performance Standards to be Achieved the Competence Levels Required Formal Review Meeting. Pre-Review Meeting Questionnaire (Agenda for the Review).

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Performance Management SEQUENCE
The Agreement should be based on an OPEN, TWO WAY, and UNAMBIGIOUS discussion. This covers following Areas: ‡ What the person is DOING NOW. ‡ What the person might have to Do in FUTURE due to Changing Environment ‡ How the WORK should be done. (Competence or Process Requirements)

Performance Management SEQUENCE
The Agreement should be based on an OPEN, TWO WAY, and UNAMBIGIOUS discussion. This covers following Areas: ‡ What the person is DOING NOW. ‡ What the person might have to Do in FUTURE due to Changing Environment ‡ How the WORK should be done. (Competence or Process Requirements)

Performance Management SEQUENCE
‡ What the Expected Performance Requirements (Outputs) and Standards are. ‡ What KSAs are Required to do the work ( Input Requirements) ‡ Core Values the individual would be Expected to Uphold such as; Quality, Teamwork, Care for Environmental Issues, Responsibility to the Community, Customer Service.

Performance Management SEQUENCE
-the Discussion will Define the Expectations on how the person·s Behavior should Support these Values. -Values may be expressed in a List of Competencies ‡ What Support the person Requires from the Manager, Co-Workers, Resources, Information.
‡ Agreement should be concluded on Process Goals( How the work is done) as well as Output Goals (What has to be Achieved)

Performance Management SEQUENCE
‡ 4. PERFORMANCE and DEVELOPMENT PLAN: Joint Exploration of what individuals Need to Do and Know to Improve their Performance and Develop their Skills and Competencies and How their Managers can Provide the Support and Guidance they need.

Performance Management SEQUENCE
‡ Agreement is also made on the basis upon which Performance will be MEASURED. ‡ These Measures should be Clearly Identified and fully Agreed because these will be used to MONITOR Progress and demonstrate Achievements. ‡ On the part of Individual it includes Preparation and Agreement of Personal Development Plan.

Performance Management SEQUENCE
‡ 5. Action- Work and Development: It focuses on What has to be Done? How it is Done? What is Achieved? Developing PeopleHelping them to Learn, Providing them with the support they need to do well

Performance Management SEQUENCE
‡ 6. Continuous Monitoring and Feedback: It is not a once in a given period Task for Employees and Managers but it is a Continuous process of Direction-setting, Monitoring and Measuring Performance, Providing Feedback and Taking Action Accordingly.

Performance Management SEQUENCE
‡ 7. Formal Review, Feedback, and Joint Assessment: -Summarize and Draw Conclusions from what has been happening since the last review -to give opportunity to individuals to comment on the Leadership, Support and Guidance they get from the Managers -Managers are there to Coach, not to Criticize.

Performance Management SEQUENCE
‡ 7. OVERALL PERFORMANCE RATING: Levels of Rating; - ODD Numbers- 3, 5, or 7. - EVEN Numbers- 4, 6, or 8. - Negative Descriptions of Levels in a Rating Scale should be Avoided. Instead it must serve as Positive Reinforcement at each level. Examples; ««

Performance Management SEQUENCE
Levels of Rating; Examples; ‡ Highly Effective ‡ Effective ‡ Developing ‡ Improvable

Performance Management SEQUENCE
ACHIEVING CONSITENCY IN RATING ‡ ‡ ‡ ‡ ‡ FORCED DISTRIBUTION RANKING TRAINING PEER REVIEW MONITORING

Performance Management SEQUENCE
PERFORMANCE-RELATED PAY ‡ Organization are concentrating more on the Development than the Reward Aspect of Performance Management.

Performance Management SEQUENCE
DOCUMENTATION ‡ Pre-meeting Documentation; Review of Job Contents Individual·s Achievements Development Needs and Potential Possible Objectives for the next period What Objectives individuals would like to set for themselves ‡ Review Meeting Documentation;

Performance Appraisal Tools
GRAPHIC RATING SCALE METHOD ‡ Simplest- Most Popular ‡ Lists Traits e.g., Reliability and ‡ Range of Performance Values e.g.,
Outstanding,«..Unsatisfactory for Each Trait ‡ Supervisor Rates each subordinate on the basis of these Traits and Perf. Values

Performance Appraisal Tools: GRS
WHAT TO MEASURE?

‡ Job·s Actual Duties
- Admin. Sec.(Fig. 9.4) --Five main sets of duties e.g., ´Maintaining Recordsµ ---Here we Assess How Well she did in exercising her job duties

Performance Appraisal Tools: GRS
‡ Competency-based Appraisal
-Competencies which the employer Values for this Job. -the extent to which the Employee is meeting her Standards

Performance Appraisal Tools:
‡ Tools that measure Several Things: 1.

Competencies to be developed
by the employee e.g., Identifies and Analyze Problems Maintains Harmonious and Effective Work Relationship

Performance Appraisal Tools:
‡ Tools that measure Several Things: 2. Objectives: Employee and Supervisor Fill in the Objectives at the Start of the year

Performance Appraisal Tools:

Alternation Ranking Method
‡ Ranking employees from Best to Worst on particular TRAIT, Choosing Highest then Lowest until All are Ranked. Here it easier to Distinguish between the Worst and Best Employees

Performance Appraisal Tools: Paired Comparison Method
‡ For every TRAIT (Quality or Quantity of Work«) Every Subordinate is PAIRED and Compared with every Other Subordinate. ‡ A Chart is made of all possible pairs of employees for each Trait (Fig. 9-7 page 321).

Performance Appraisal Tools: Forced Distribution
Percentages for Different Performance Categories are Predetermined. ‡ This method means two things (i) Not every one can get ´Aµ (ii) One·s Performance is always rated Relative to one·s Peers ‡ General Electric: Top 20%, Middle 70%, Bottom 10%

Performance Appraisal Tools: Forced Distribution
‡ Sun Microsystems -the Bottom 10% of each group of 30 employees Get 90 days to Improve ‡ With Forced Distribution grading system one either is in Top 5 to 10% and gets an ´Aµ on he/she does nt. No Questions are asked.

Performance Appraisal Tools: Forced Distribution
‡ To protect against Bias Claims, employer·s should; i. Appoint a Review Committee to Review any employee·s Low Ranking take several ii. Train Raters to be Objective iii. Consider using Multiple raters

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