Performance

Management
Sultan Mahbubul Haque
HR Specialist
Major Content
 Performance (understanding the vastness)
 Performance Management
 Why is it essential?
 Performance Management Systems/Methods
 360 Performance Appraisal
 Evaluation methods
 Qualities of Appraiser and Appraisee
 Role of Management
 Role of Supervisors
 Reward Management
 Embedding values
 Converting to high performing organization and sustainable culture
PERFORMANCE !! (How big the scope is?)

 The actual output or results of an organization as

measured against its intended outputs (or goals and
objectives).

 Aspects of performance:
 Financial Performance
 Market/product outcome
 Shareholder return
Individual Performance and
Organizational Performance

 The organization itself does not perform any work but its
managers are performing their assigned works and in a
combination of these performed works is called
organization performance.
Factors affecting organizational
performance
External Factors Internal Factors Individual Factors

 Cultural factors (national level and organizational culture)

 Management philosophy
 Goals, Values (beliefs and norms), Vision, Mission,
 Technology
 Natural resources
 Economic condition
 Regulatory matters
 Organizational structure
 Financial resources
 Demography
 Leadership style etc.
Performance Management !!

 Performance management is all about setting clear goals

and providing regular feedback for each employee to help
you achieve your organizational goals.

 Performance management is an ongoing dedication to

improving employee performance and engagement in line
with company’s goals, values, and business objectives.

 It is a holistic and continuous effort, not a one-time project

The area of performance management

 Company-wide goals
 Collaborative goal-setting with employees
 Regular performance check-ins and one-on-ones
 Ongoing coaching and career pathing
 Timely rewards and recognition
 360-degree feedback
 Succession planning
Performance Management Vs
Performance Appraisal

 Performance Appraisal is a reactive approach and one

time evaluation of the employee’s past performance

 Performance Management is a proactive, holistic, long-

term strategic approach
Benefits of Performance Management

 Define clear organizational goals

 Create objective measures of success
 Reduce bias and subjectivity
 Identify HR goals and challenges
 Create better job descriptions
 Track and improve quality of hire
 Motivate your team
 Improve performance
Phases of Performance Management

 Plan: Individual goals are created based on organizational objectives (SMART

GOALS)

 Act: Employees follow their personal development plans to achieve their goals

 Monitor: Managers and employees communicate regularly about performance

 Review: Reflect on and reward achievements and learnings

It is crucial to understand that these phases do not happen in isolation. They are
not discrete steps that happen one by one. Instead, these phases overlap organically
and feed back into each other. They should all happen continuously…
Phases of Performance Management

 Phase 1:
 Setting S M A R T Goals
 S pecific - Goals should be narrowly and clearly focused
 M easurable - Objective numbers make it easy to assess if you accomplished the goal
 A ttainable - Goals should be moderately challenging but realistic and within the
control of your team members
 R elevant - Individual goals should be meaningful to the team member while also
aligning with organizational goals.
 T ime-bound - Goals should have target end dates.

 Goals may cover JD related goals, Project, Behavioural, and Stretch goals
Phases of Performance Management

 Phase 2: ACT

 When an unexpected project pops up, it can be easy to abandon previously

set goals and milestones.
 It’s easy to say, “I’ll do it later when I have time,” but that time may never
come.
 A few months later, you may look back at your goals and see you didn’t
achieve any of them.
Phases of Performance Management

 Phase 3: Monitor

 Tracking tool or system

 Regular feedback
 One-on-one meetings
 Coaching sessions
 Encouragement and appreciation

Listening is the best skill you can have as a coach. Do more listening than talking in
your one-on-ones. Don’t feel the need to fill every silence. This will help you
understand your employee’s mindset.
Phases of Performance Management

 Phase 4: Review

 Periodic assessment of the employee’s achievements and learnings

measured against their goals.
 The performance review is an opportunity to provide constructive
feedback about performance, show recognition, adjust future
objectives, and evaluate compensation.
 How often you carry out the review process is up to your organization
—whether it’s once per quarter, every six months, or annually.
 Introducing 360 degree feedback is essential
Performance Management System

 A performance management system is a mechanism for tracking the

performance of employees consistently and measurably…

 3 Types of Organizational Performance Management Systems

 The Balanced Scorecard
 Management by Objectives (MBO)
 Budget-driven Business Plans
360 degree performance appraisal..

 when employers evaluate employee performance from as many

sources as possible, instead of only one-on-one feedback from a
direct manager

 360 degree appraisal has four integral components:

 Self appraisal
 Superior’s appraisal
 Subordinate’s appraisal
 Peer appraisal
Evaluation methods..

 Self-Evaluation
 Behavioral checklist
 360 degree feedback
 Management by Objectives
 Rating scale method
Qualities of Appraiser and Appraisee

 Unbiased…
 Organized. ...
 Self-Motivated. ...
 Analytical. ...
 Patient. ...
 Flexible. ...
 Tech-Savvy. ...
 Curious
Role of a Manager for good appraisal
dialogue…
 Be prepared. ...
 Create a joint agenda. ...
 Discuss challenges and successes. ...
 Discuss ideas for development and action. ...
 Agree actions that need to be taken. ...
 Summarise the meeting and express support.
Responsibilities of Appraisee

 Share efforts and obstacles. Mention how your efforts made a

measurable impact on the team and the organisation. ...
 Identify areas of improvement. ...
 Quantify achievements. ...
 Ask for growth opportunities. ...
 Set goals. ...
 Stay positive, respectful and open to the dialogue…
Importance of reward management:

 Retains employees
 Attracts new employees
 Avoids the cost of hiring and training new employees
 Builds loyalty and honesty
 Creates a healthy work environment
 Encourages positive attitudes and behaviour
 Makes employees more likely to seek advancement
Values in practice…

 Your company values are the beliefs, philosophies, and

principles that drive your business.
 Because your company values reflect what you and your
employees stand for, they give them a sense of
responsibility.
 Indeed, every decision your employees make should be
aligned with the company values you’ve communicated
with them.
 Asking a question comes as a habit : does this decision
reflect our values?
How to establish a performance culture?

 Create a Stable Team. ...

 Build a Cohesive and Value Aligned Team Dynamics. ...
 Encourage an Environment of Open Communication. ...
 Stress on the Importance of Learning. ...
 Set Measurable Goals…
What does HR do?

Getting the best out of the people…

 Thank You
Questions are welcome