Performance Management Process

‡ Performance Management Continuous Process ‡ Includes several components
± Closely related ± Poor implementation of any one of them has a negative impact on PMS as a whole

What Performance Management Isn¶t
‡ Something a manager does to an employee ‡ A club of force people to work better or harder ‡ Used only in poor performance situations ‡ About completing forms once a year

Performance Management Process: Overview 
Prerequisites  Performance Planning  Performance Execution  Performance Assessment  Performance Review  Performance Renewal and Recontracting

Prerequisites ‡ What we need to know to design and implementation of effective performance management system? ± To make sure employees¶ contribution have a positive impact on the organization as a whole ± To establish criteria for job success .

Prerequisites Performance Planning Performance Execution Performance Management Process Performance Renewal and Recontracting Performance Assessment Performance Review .

Knowledge of the organization¶s mission and strategic goals B. Knowledge of the job in question .Prerequisites A.

A. Knowledge of mission and strategic goals ‡ Strategic planning ± Purpose or reason for organization¶s existence ± Where organization is going ± Organizational goals ± Strategies for attaining goals .

Strategies Critical to involve all levels of management Unit·s Strategic Plan Mission. Behaviors. Developmental Plan . Goals. Vision. Goals. Strategies Job Description Critical to involve all employees Tasks. KSAs Individual and Team Performance Results. Vision.Alignment of Strategic Plan with Performance Organization·s Strategic Plan Mission.

Mission and Goals Cascade effect throughout organization Organization Unit Employee .

vision. which Motivates employees Aligns development plans with organization priorities . goals lead to  Performance management system.Individual and Team Performance Organization and Unit mission.

Strategic Plan Choices in PM System Design ‡ Criteria (Behavior vs. High) ‡ Temporal Dimension (Short Term vs. Long Term) ‡ Level of Criteria (Individual vs. Tenure/Position) . Results) ‡ Participation (Low vs. Team/Group) ‡ System Orientation (Developmental vs. Administrative) ‡ Rewards (Pay for Performance vs.

Knowledge of the job ‡ Job analysis of key components ± Activities. but not necessarily having done it ± Skills ± required attributes that are usually acquired by having done the work in past ± Abilities ± having the physical. emotional.B. tasks. processes ‡ KSAs required to do the job ± Knowledge ± having the information need to perform the work. products. services. intellectual and psychological aptitude to perform the work .

Job Analysis ‡ The identification of criteria necessary for successful performance in a given job ‡ Identifies KSAs ± Job tasks to perform ± Skills required ± Abilities needed .

college student ‡ attend lectures ‡ take notes ‡ read text ‡ write papers ‡ do homework ‡ Worker-Oriented ± analysis of the skills and abilities required ‡ intelligent ‡ self-motivated ‡ able to work alone ‡ able to integrate diverse information ‡ good long-term memory ‡ time-management skills .Job vs.g. Worker Oriented Analyses ‡ Job-Oriented ± analysis of tasks necessary to complete the job ± more concrete ± e.

Sources of Job Information ‡ SMEs (Subject Matter Experts) ± people who have in-depth knowledge of specific job under analysis. and abilities ± Job Incumbent ± Supervisors ± Job Analyst . job skills.

Methods of Job Analysis ‡ Interviews ‡ Structured Questionnaire / Inventory ‡ Direct Observation ‡ Logbooks / Work Diaries .

Interviews ‡ Most commonly used method ± very adaptable ‡ Usually conducted with ± job incumbents ± technical experts ± supervisors ‡ Questions like: ± what are your most typical duties? ± How long do they take? ± How do you do them? ‡ Con: people may misrepresent/exaggerate job .

Questionnaire/Inventory ‡ Lists of many (>200) job characteristics and activities ± rated in term of frequency and importance ‡ method is most useful for comparing jobs ‡ very commonly used (esp. with interviews) .

reports.Very substantial 1.Occasional 3 .Considerable 5 . articles).Very infrequent 2.Does not apply 1 .___ Written materials (books. cloud formations) .___ Measuring devices (calipers. geological samples.Moderate 4 . 2.___ Quantitative materials (graphs. tables of numbers) 3.PAQ Example of ³Sources of Job Information´ Rate the extent to which each is used by the worker as a source of information in performing the job: Extent of Use: N . tire pressure gauges. thermometers) 4.___ Features of nature (landscapes.

Observation ‡ Unobtrusive method ± camera. audio ‡ Excellent for understanding and appreciating conditions under which job is performed ‡ Allows analyst to experience aspects of job that worker may not be aware of ‡ Not as good for understanding why behaviors do/do not occur . video.

not commonly used ± too much variance in writing skills ± can exaggerate tasks performed ‡ Can be done with beepers .Logbook / Worker Diaries ‡ Worker makes systematic entries in book outlining activities ‡ May be useful for jobs that are difficult to observe ‡ But.

Typical Job Analysis ‡ Read any info available re: job ± training manuals ± job descriptions ± equipment manuals ‡ Interview middle managers ± ± ± ± pick up lingo understand job importance acc. to management get feel for job develop questions for later interviews .

uses creativity . ‡ Observe 3 or 4 people doing job ‡ Schedule interviews with incumbents and supervisors ‡ Distribute questionnaires/inventories re: job duties ‡ Combine/compile info (most imp.) ± must summarize using all info. ± no standard procedure.Typical Job Analysis cont.

Performance Management as a System ‡ System ± something that has component parts that interact and work together in an interdependent way to accomplish something ‡ Performance management is a system ± Must include all of the parts of a performance management system ± Neglect one or two and isn¶t going to work .

Performance Planning ‡ Starting point for an employee and manager to begin performance management ‡ Usually for a one-year period ‡ Work together to identify ± What the employee should be doing for the period being planned ± How well the work should be done ± When it needs to be done .

Performance Planning (cont. both should be able to answer the following questions ± what are the employee¶s major responsibilities for the year? ± How will we know whether the employee is succeeding? ± How the work should be done (competence and process required ± Which responsibilities are of most important and which are least importance? ± How do the employee¶s responsibilities contribute to department and company? ± Any core values the individual should be expected to uphold ± core values may be expressed in a list of competencies ± Does the employee need to develop new skills/abilities to accomplish tasks? .) ‡ By the end of performance planning process.

) ‡ Process ± There will be at least one meeting between the manager and each employee ‡ Results ± Questions will be written down in the form of objectives.Performance Planning (cont. standards and development plan .

Performance Planning: Key accountabilities Specific objectives Performance standards .

Key Accountabilities Broad areas of a job for which the employee is responsible for producing results Marketing manager ± introducing a new product in a particular region R&D manager ± developing new products Manager (HRD) ± Training of MTs .

1.Improve assessment of Training program effectiveness from 65% program to 90% program Reduce cost by 5% on approved budget .000 Manager (HRD) .Specific Objectives  Statements of outcomes  Important  Measurable Marketing manager ± to personally contact 10 major customers from each district and get their feedback on the product within a period of two months R & D Manager ±to complete literature and patent search in one year and complete design and development of new prototype in 12 months within a cost of Rs.40.

Performance Standards ‡ ³Yardstick´ to evaluate how well employees have achieved each objective ‡ Information on acceptable and unacceptable performance. such as quality quantity cost time .

Performance Planning: Behaviors How a job is done .

Performance Planning: Competencies ‡ Measurable clusters of KSAs ‡ Critical in determining how results will be achieved .

Performance Planning: Development Plan  Areas for improvement  Goals to be achieved in each area of improvement .

Performance Execution .Ongoing Performance Communication  Employee Responsibilities  Commitment to goal achievement  Ongoing requests for feedback and coaching  Communication with supervisor  Collecting and sharing performance data  Preparing for performance reviews .

Performance Execution ± Ongoing Performance Communication ‡ ‡ ‡ ‡ ‡ ‡ Manager Responsibilities Observation and documentation Updates Feedback Resources Reinforcement .

and ± give both parties the information they needed to succeed .Ongoing Performance Communication ‡ It is two way process ± to track progress. ± identify barriers to performance.Performance Execution .

in which every employee reports on the status of his or her projects or jobs ± Regular short written status report ± Informal communication ± Specific communication when problem crop up ‡ Results ± Track of formal regular status meeting .‡ Performance Execution Ongoing Performance Communication Process ± Short monthly or weekly status report meetings with each employee ± Regular group meetings.

Performance Assessment ‡ Manager assessment ‡ Self-assessment ‡ Other sources (e. peers..) . customers. etc.g.

Multiple Assessments Are Necessary  Increase employee ownership  Increase commitment  Provide information  Ensure mutual understanding .

disciplinary actions ± An opportunity to identify how performance can be improved regardless of current level ± An opportunity to identify strengths and success ± A springboard for planning performance for the next year ± Information about how employee continue to develop ± An opportunity for a manager to identify additional ways to help employees in the future ± An opportunity to identify processes and procedures that are ineffective and costly . pay levels.Performance Review ‡ The performance appraisal process provides ± Feedback to employee that¶s formal. bonuses. and recorded ± Documentation for a personnel file that may be used for determining promotions. regular.

Performance Review Overview of Appraisal Meeting ‡ Past ± Behaviors and results ‡ Present ± Compensation to be received ‡ Future ± New goals and development plans .

Performance Review ‡ Process ± Prior to the meeting some preparation is done ± manager and employee doing independent appraisals on their own ± Agreement on employee¶s performance. identifying causes of the problems. plan development activities .

Solicit feedback 3. Discuss the implications of changing behaviors . Identify what the employee has done well and poorly 2.Six Steps for Conducting Productive Performance Reviews 1.

attitudes to be evaluated . Agree on an action plan 6. Set a follow-up meeting and agree on behaviors. actions.Six Steps for Conducting Productive Performance Reviews 4. Explain how skills used in past achievements can help overcome any performance problems 5.

Performance Renewal and Recontracting ‡ Same as/different from Performance Planning ± Uses insights and information from previous phases ± Cycle begins again .

Performance Management Process Summary: Key Points  Ongoing process  Each component is important If one is implemented poorly. whole system suffers  Links between components must be clear .

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