Performance Management
- 1. Performance Management Systems UNIT - I: Performance Management Scope and Significance - Advantages of Performance Management - Organizational Structure - Impact of Organizational structure - Operational Problems Performance management process - Performance Planning - Performance Appraisal - Performance Mentoring - Performance Management Strategic Planning.
- 2. Basic terminology PERFORMANCE: The performance of an individual can be defined based on their achievement compared with their standard or expected outcome/ result. COMPETENCY: It refers to the combination of knowledge, skills and attitude that is required for an individual to perform their role more effectively. POTENTIAL: The capacity (a group of competencies reflect capacity) of an individual to handle higher responsibilities based on their abilities and competency levels.
- 3. HRM Cycle Job analysis HRP – Human Resource Planning Recruitment Selection Induction Training Compensation Performance Appraisal Reward management
- 4. PERFORMANCE MANAGEMENT SYSTEM: It is a process which represents performance planning, performance monitoring and coaching, measuring the individual performance with respect to the organizational goals, providing feedback, appreciating the employee achievements and planning for their development.
- 5. Performance management cycle Performance planning Performance mentoring & Coaching Performance feedback performance linked rewards & Development
- 6. OBJECTIVES OF PERFORMANCE MANAGEMENT: Evaluation objectives: To identify the readiness of an employee to handle higher responsibilities. To provide feedback to the employees on their performance. To create information that might be useful to take various decisions like salary, bonus, promotion etc. Development objectives: To provide counseling to the employees so that they can enhance their performance and develop competencies. Motivate employees by recognizing their performance. Analyze the individual and organization performance so that action will be taken in problem areas. Identify the need for training.
- 7. Characteristics of Performance Management: Continuous process: Flexible: Futuristic: Participatory: Controlling: Behavioral in Content: Win-Win Philosophy:
- 8. SCOPE OF PERFORMANCE MANGEMENT: It provides shared experiences, knowledge and vision to managers and managees. Increases corporate, team and individual effectiveness by encompasses all formal and informal measures and procedures adopted by organizations. Enables to develop knowledge, skills and capabilities of Managees/ employees in a continuous manner. It is designed by considering the entire organization as whole instead of different parts alone. Thus, it integrates (vertical & horizontal) all the processes of an organization. Performance management assumes that the managers and team members share accountability for performance by jointly agreeing on common set of goals i.e., what they need to do and how they need to do it. They jointly implement the agreed plans and monitor outcomes.
- 9. Contd.. It considers all the elements that are associated with an employee in an organization. i.e., their work, behavior in which they perform, result they achieve. Data generated by appraisal process can be used to decide rewards to the employees, which is an integral part of performance management process.
- 10. Dimensions of effective performance Management People Management Capability Motivation Measurement and rewards Role of HR professionals Learning organization Culture and clarity of purpose
- 11. BENEFITS OF PERFORMANCE MANAGEMENT: For the Organisation: Align corporate, individual and team objectives. Improve performance. Motivate employees. Increase commitment. Underpin core values. Improve training and development process. Help to develop a learning organisation
- 12. …contd For Managers : Provide the basis for clarifying performance and behaviour expectations. Afford a framework for reviewing performance and competence levels. Improve team and individual performance. Support leadership, motivating and teambuilding processes. Provide the basis for helping underperformers. May be used to develop or coach individuals.
- 13. …contd For Individuals: Greater clarity of roles and objectives. Encouragement and support to perform well. The provision of guidance and help in developing abilities and performance. Opportunities to spend ‘quality time’ with their managers. Opportunities to contribute to the formulation of objectives and plans and to improvements in the way work is managed and carried out. An objective and fair basis for assessing performance.
- 14. PERFORMANCE MANAGEMENT PROCESS Prerequisites Performance planning Performance execution Performance Assessment Performance Review Performance Renewal and Reconstructing
- 15. Prerequisites i. Knowledge of the organization's mission and strategic goals – strategic planning ii. Knowledge of job- Job analysis Knowledge - information needed to perform work, skills - required attributes that are usually acquired by having done in the past ability refers to physical, emotional, intellectual, and psychological aptitude to perform the work.
- 16. Explanation:
- 17. Performance planning Provides clear knowledge of PMS to employees. Results – outcomes to be achieved represents - key accountabilities Performance standards – yardstick Both acceptable and unacceptable behaviors Behaviors – How the result achieved – competencies communication skills, product knowledge, handling different issues, creative thinking, dependability etc Development plan- areas of improvement setting developmental goals
- 18. Performance execution Role of employee in performance execution employee participation does not starts actively participate in preparing job description and in the process of evaluation. i. Commitment to goal achievement ii. Ongoing performance feedback and coaching iii. Communication with supervisor iv. Collecting and sharing performance data v. Preparing for performance review
- 19. contd Role of supervisor in performance execution: Observation and documentation Updates Feedback Resources Reinforcement
- 20. Performance Assessment Both employee and manager responsible Direct supervisor assessment more impact Both supervisor and employee fill Self appraisal help to identify areas of problems Also help in review discusion
- 21. Performance Review(appraisal meeting) Formal way of providing feedback discuss about the development plans, trainings to improve skills and knowledge, next year goals and targets and expectations of employee and manager both
- 22. Performance Renewal and Reconstructing Once the performance has been reviewed and end, then the cycle starts for the next performance appraisal. Should align with next year strategic planning of an organization.