You are on page 1of 26

PERFORMANCE MANAGEMENT

Prof. Shabnam Siddiqui Faculty (HR & OB) RIMS, Rkl

Module I
• STUDY PLAN  Introduction & Meaning  Basic Definitions  What is Performance?  What is Performance Management (PfM)?  Concerns of PfM  Factors affecting Performance  History of PfM  Features of Effective PfM System  Nature of PfM

Module I
 Scope of PfM  Objectives of PfM  Process of PfM  PfM Theatre  Pillars of PfM  Link between PfM & Performance Appraisal  Benefits of PfM

I do the best I know how, the very best I can; and I mean to keep on doing it to the end. If the end brings me out all right, what is said against me will not amount to anything. If the end brings me out all wrong, then angels swearing I was right would make no difference.
--- Abraham Lincoln

INTRODUCTION & MEANING
• Two trends have emerged as major factors in the performance of organisations in many sectors. • These organisations ranges from business & industry, govt., NGOs, non-profit organisations, academics, etc. • Managing human & organisational performance will be central concerns in the coming decades. • First, the processes and forces of globalisation have shrunk the world.

INTRODUCTION & MEANING
• Globalisation demands more capacity to deal with differences, greater ability to learn from experience at local, national & international levels, enhanced investment in recruiting, coordinating & developing human resources from a wide range of backgrounds.
• Second, sustained effectiveness of organisations depends in large measure on their ability to manage performance & develop capacities of their human resources.

INTRODUCTION & MEANING
• Long-term competitive advantages of corporations depend on their abilities to attract, manage, develop and retain high quality talent. • The only way to generate enduring profits is to build the kind of work environment that attracts, focuses on, and retains talented workers. • PfM is an area that has attracted interest from all kinds of organisations. • Most organisations have begun to define and

INTRODUCTION & MEANING
assess managee performance through measurable indices and visible behaviours that spell high performance. • They also emphasise development of managee potential in terms of systematically analysed competencies that are essential for effective job performance, present as well future. • PfM begins by understanding the organisational, the departmental, the unit or the project goals for the year.

INTRODUCTION & MEANING
• It then works out what people at different levels in the organisation must do --- produce or deliver --- for these goals to be met. • Desired outcomes determine the kind of people that an organisation needs, the roles they must perform, and the results they must individually and collectively achieve.

INTRODUCTION & MEANING
• PfM is about enabling managees to perform better in order to succeed. • This means creating a motivating work environment through appropriate incentives, feedback & rewards: encouragements for wanting to do a better job. • This also means innovations in leadership and an overall organisational climate that exudes optimism and high-performance expectations. • PfM is ultimately about communication: communicating what is expected from people

INTRODUCTION & MEANING
people and how best this can be achieved, allowing individuals to develop themselves and their contribution to the organisation.

BASIC DEFINITIONS
1. Performance The achievement of an employee against the expectations from his/her role along clearly defined targets for the year is what constitutes the individual’s performance. • Organisational requirements based on company goals • Role areas of the individual position 2. Competency This is a combination of the knowledge, skill and attitude required for an individual to

BASIC DEFINITIONS
effectively perform in a role. 3. Potential The capacity of the individual to handle higher responsibilities based on his/her overall abilities and current competency levels.

WHAT IS PERFORMANCE?
• It can be regarded as simply the record of outcomes achieved. • Performance means outcomes achieved, or accomplishments at work --- the actual contribution of an individual or team to the organisation’s strategic goals. • Campbell believe that performance, as behaviour, should be distinguished from its outcomes, because the outcomes can be contaminated by systems prevalent in the organisation.

WHAT IS PERFORMANCE?
• Brumbach views performance more comprehensively by encompassing both behaviours and results. • A manager, therefore, needs to consider both inputs (behaviours) and outputs (result) when managing the performance of teams and individuals. • The role of any managee can be seen in three parts: Being, Doing, and Relating. • ‘Being’ concerns the competencies of the managee that are relevant to performance. It

WHAT IS PERFORMANCE?
means that the managee has prepared her mind. • ‘Doing’ focuses on the managee activities that are variably effective at different levels in the organisation. • ‘Relating’ emphasizes the nature of relationships with members of the role network--- vertical, horizontal or otherwise.

PERFORMANCE FRAMEWORK
Any performance framework would respond to the following sequence:
INPUT THROUGHPUT OUTPUT

Managee Potential

Task-related Activities and Context
Feedback Feedback

Managee Performance or Effectiveness

PERFORMANCE FRAMEWORK
• Managee potential is determined when a set of tasks is allocated to a managee, or certain performance expectations are set. • Task-related activities & context are what a managee or her/his supervisor indulge in to achieve the allocated tasks. • Managee performance or effectiveness is what the managee actually achieves.

PERFORMANCE MANAGEMENT (PfM)
• Effective management of human performance in an organisation is very much needed in the fast changing technology oriented world. • PfM is a step taken by the organisations to keep track of their goals being met consistently in an effective & efficient manner. • It involves not only evaluation of performance but also involves managers who work as a team with the employees to improve their future performance. • PfM does not stop with assessment and evaluation of the performance but also goes beyond that by providing meaningful feedback, collaborating with employees

PERFORMANCE MANAGEMENT (PfM)
to solve their performance problems and help them in developing improved levels of performance. • Performance = ability + motivation

PERFORMANCE MANAGEMENT
• Performance management (PfM) is a strategic and integrated approach to delivering sustained success to organisations by improving the performance of the people who work in them and by developing the capabilities of individual contributors and teams. 1. Strategic: it is concerned with the broader issues facing the business, and the general direction in which it intends to go to achieve longer-term goals. 2. Integrated in four senses:

PERFORMANCE MANAGEMENT
i. ii. iii. vertical integration --- linking or aligning business, team & individual objectives, functional integration --- linking functional strategies in different parts of the business, human resource integration --- linking different aspects of HRM, especially O.D. and HRD & reward, to achieve a coherent approach to the management and development of people, integration of individual needs --- with those of the organisation. Improving performance : concerned with

iv. 3.

PERFORMANCE MANAGEMENT
performance improvement in order to achieve organisational, team and individual effectiveness. Management is involved in direction, measurement and control but these are not the exclusive concerns of managers; teams and individuals jointly participate as stakeholders. 4. Development: this is perhaps the most important function of PfM. Continuous development addresses the core competences of the organisation and the capabilities of individuals and teams.

CONCERNS OF PfM
1. Concern with outputs, outcomes, process and inputs : PfM is concerned with outputs (the achievement of results), outcomes (impact made on performance), processes (competencies) required to achieve these results and the inputs (in terms of capabilities i.e. knowledge, skill, etc ) 2. Concern with planning : Looking ahead to achieve future success. This means defining expectations expressed as objectives. 3. Concern with measurement & review : PfM is concerned with the measurement of results

CONCERNS OF PfM
and with reviewing progress towards achieving objectives as a basis for action. 4. Concern with continuous development and improvement : PfM is concerned with creating a culture in which organisational & individual learning and development are a continuous process. 5. Concern for communication : Create a climate in which a continuing dialogue between managers and the members of their teams takes place to define expectations and share information on the organisation’s mission, values & objectives. This establishes mutual understanding of

CONCERNS OF PfM
what is to be achieved and ensuring that it will be achieved. 6. Concern for stakeholders :