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BSBMGT Performance Management
BSBMGT Performance Management
Erlet Shaqe
www.erletshaqe.com
Performance Management Cycle
HARVARD COLLEGE
LIBRARY “What” “How”
Organizational
Priorities Values
Your
DEPARTMENT
UNIT OR
Departmental
Priorities
Individual Priorities
» 2002: May
» 2002: April-
May
» 2002: March
» 2002:
December-
January
What Is “Good Performance”?
• More than just activities, effort, good intentions, or results
• Working hard and staying busy are not necessarily
high performance
• Attending training sessions and studying hard does not
necessarily lead to good performance
• Strong commitment may not lead to good performance
• Even accomplishing some goals may not be high
performance
Performance Management –
Broader Than
Performance Appraisal
Begins with a look at goals &
strategies of the organization
Organizational Alignment
…a key to Performance
Management
All efforts must be aligned with
overall goals and strategies of the
organization.
Performance Management
a Cascading Process
Defining Performance
Facilitating Performance
Encouraging Performance
Performance Appraisal
• Alternation ranking
• Paired comparison
Explain Each of the Ranking
Methods
Preference Among Them?
Attractions? Limitations?
Forced Distribution
• Design?
• Purpose?
• Potential strengths?
• Potential weaknesses?
Critical Incidents
• Validity
What Do You Think?
What Form of Performance Appraisal Would You
Recommend?
What Criteria Have You Used in Making Your
Recommendation?
What Limitations (As Well As Strengths) Does
Your Recommended Method Have?
Who Appraises?
• Supervisor
• Peers
• Subordinates
• Self Appraisal
• Customers
Usefulness of Each?
Explain
360 Degree Appraisal
• Problem Solving
Performance management
Definition:
Employee performance management is the process
of involving employees in accomplishing your
agency’s mission and goals.
Accountability
Performance target
setting and
outcome/results
review
AND / OR
Managing performance for …
Employee
Development
Competence assessment
and development
Stages of performance management
Monitor
Develop
Plan
Reward Review
Stage 1 – Individual Performance Planning
Stage 1 – Planning
•Work goals
Plan
•Competencies
•Learning
• How is what I do on a
daily basis tied to the
success of this
organization?
• What are my
performance goals for
the next time period?
• How are my goals
aligned with the
organizational goals?
Performance Planning
• Performance results – the what
– Performance outcomes or standards – from job
description
– Performance objectives for the next time period
• Performance behavior – the how
– Competencies, performance factors, or
behavior expectations
• Development objectives
Peter Drucker
Management by Objectives was first outlined by Peter
Drucker in 1954 in his book 'The practice of
Management'. According to Drucker managers should avoid
'the activity trap', getting so involved in their day to day
activities that they forget their main purpose or objective. One
of the concepts of Management by Objectives was that instead
of just a few top-managers, all managers of a firm should
participate in the strategic planning process, in order to
improve the implementability of the plan. Another concept of
MBO was that managers should implement a range of
performance systems, designed to help the organization stay
on the right track.
• MBO is a system in which specific
performance objectives are jointly
determined by subordinates and their
superiors, progress toward objectives is
periodically reviewed, and rewards are
allocated on the basis of this progress.
MBO Principles
Cascading of organizational goals and
objectives
Specific objectives for each member
Participative decision making
Explicit time period
Performance evaluation and feedback
Objectives should be specific, attainable, yet
challenging.
Is the objective appropriate for the business at this time?
Does it take the organization in the direction it wants to go?
Does it support the overall mission of the business?
Is it compatible and complementary with the other
objectives?
Is it acceptable and understandable to the majority who will
be charged with implementing it?
Is it affordable for the organization?
Is it measurable and achievable?
Is it ambitious enough to be challenging?
Hierarchy of objectives
Vision
Mission
Goals
Objectives
Policies
Procedures
MBO substitutes for good intentions a process that
requires rather precise written description of
objectives (for the period ahead) and time-lines for
their monitoring and achievement. The process
requires that the manager and the employee agree to
what the employee will attempt to achieve in the
period ahead, and (very important) that the employee
accept and buy into the objectives (otherwise
commitment will be lacking).
SMART
Management by Objectives introduced the
SMART method for checking the validity of
Objectives,
'SMART':
• Specific
• Measurable
• Achievable
• Realistic, and
• Time-related.
Stage 2/3 – Monitor and Develop
Monitor
Daily performance
management! Develop
Monitoring includes
measuring performance
and giving feedback. Two
way communication
between the manager and Stage 2/3 – Monitor and
employee throughout the Develop
• Identifying information
• Instructions
• Performance outcomes and/or results
achieved (or not achieved) on objectives
• Performance factors / competencies / work
behaviors
• Employee signature and approvals
Other information
• Employee comments
• Summary of one to three major achievements
• Strengths / areas for development
• Overall rating
• Plan for development (if not elsewhere)
• Performance plan for next period (if not
elsewhere)
Stage 5 – Reward
Measure
Provide Feedback
Performance
© Dr. Dianna Stone
Organization Seeks
Individual Seeks
Information On Which
Extrinsic Rewards
To Base Rewards
Requirements of Effective
Performance Management
• Relevant to job
performance
• Distinguishes Effective &
Ineffective Performance
• Fair & Acceptable
Performance Standards
• Managers assume
standards are clear
• Communicate -
What is to be done?
• How well should it
be done?
Performance Measures
• Objective Measures - Hard Criteria
$ Sales Personnel Data Tardiness
Units Produced Absence Rate
Error Rate Turnover
• Weaknesses
– Performance Modified by Situation - Opportunity Bias
– System Responsible for 96% of Variance - Person 4%
(Deming)
– Objective measures do not apply to all jobs