Performance management system
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The document discusses the importance of an effective performance management system in organizations, emphasizing the shift towards open and discussion-based appraisal methods. It highlights common issues with traditional systems, such as dissatisfaction and resistance to change, and outlines various appraisal methods and factors influencing employee performance. Additionally, it covers the roles of appraisers and potential errors that can arise during performance evaluations.
Performance management system
- 1. Dr. Anand K. Rai H e a d ( H R & A d m i n i s t r a t i o n ) T h e I n d i a n Wo o d P r o d u c t s C o . L t d , B a r e i l l y a n a n d r a i @ i w p k a t h a . c o . i n Dr. Anand K. Rai, IWP,Bareilly, anandrai@iwpkatha.co.in 1 PERFORMANCE MANAGEMENT SYSTEM
- 2. Strategic and Integrated process • that delivers sustained success to organizations • by improving the performance of the people who work in them • and by developing the capabilities of individual contributors and teams. - Michael Armstrong PERFORMANCE MANAGEMENT Dr. Anand K. Rai, IWP,Bareilly, anandrai@iwpkatha.co.in 2
- 3. • Large number of organisations still follow trait-based confidential formats • Most are dissatisfied with present systems • A few organisations have begun experimenting with new systems • Organizations that have merely changed the format and not reoriented managers have run into problems • Managers want open systems • To know how their bosses rate them • Intellectually accepts open systems but face blocks in implementing them • Most managers still don’t realise the full potential of performance appraisal Performance Measurement in INDIAPerformance Measurement in INDIA Dr. Anand K. Rai, IWP,Bareilly, anandrai@iwpkatha.co.in 3
- 4. • Most see development as a Personnel/HR job and not a line function • In a lot of organizations symbols become more important than the purpose • There is a shift from ‘Composite’ appraisal to ‘Separate’ appraisal for different purposes • Performance appraisal systems are becoming more open, discussion-based, with 360 degree feedback • Shorter, quicker reviews; team appraisals’ flexible systems; innovations and experimentation in performance appraisal system are becoming buzzwords. Performance Measurement in INDIA Dr. Anand K. Rai, IWP,Bareilly, anandrai@iwpkatha.co.in 4
- 5. Why check performance? Dr. Anand K. Rai, IWP,Bareilly, anandrai@iwpkatha.co.in 5
- 6. Basic steps in PMS Dr. Anand K. Rai, IWP,Bareilly, anandrai@iwpkatha.co.in 6 Performance Appraisal Measuring Success Finding Performance Gaps Finding Performance Opportunities Developing Scope & Opportunities Developing Capabilities Reinforcing Success Achieving / Exceeding target results year after year
- 7. Performance Appraisal and other HRM Functions Dr. Anand K. Rai, IWP,Bareilly, anandrai@iwpkatha.co.in 7
- 8. Environment • Equipment/materials • Job design • Economic conditions • Unions • Rules and policies • Management support • Laws and regulations Ability • Technical skills • Interpersonal skills • Problem-solving • Analytical skills • Communication skills • Physical limitations Motivation • Career ambition • Employee conflict • Frustration • Fairness/satisfaction • Goals/expectations P = f (A,M,E) Factors that Influence Performance Dr. Anand K. Rai, IWP,Bareilly, anandrai@iwpkatha.co.in 9
- 9. SUPERIOR CUSTOMERS TEAM SUBORDINATES PEERS SELF Alternative Sources of Appraisal Dr. Anand K. Rai, IWP,Bareilly, anandrai@iwpkatha.co.in 10
- 10. HOW? Appraisal Methods Dr. Anand K. Rai, IWP,Bareilly, anandrai@iwpkatha.co.in 11 • Objective Bound – MBO • Absolute Measures – Graphic rating scales – See Performance – BARS – See Potential – Critical incidents – Narrative essay • Comparative Rating – Ranking – Forced distribution 360 appraisal of Values & Ethics, Leader Qualities
- 11. Step 1: Organization goals and metrics Step 2: Department goals and metrics Step 5: Interim review Step 5b: New inputs are then provided Step 5a: Inappropriate goals/metrics deleted Step 4: Mutual agreement of goals and metrics Step 3: Subordinate proposes goals and metrics Step 3: Supervisor lists goals and metrics for subordinate Step 7: Review of organization performance Step 6: Final review MBO Dr. Anand K. Rai, IWP,Bareilly, anandrai@iwpkatha.co.in 12
- 12. WHAT? Criteria used Dr. Anand K. Rai, IWP,Bareilly, anandrai@iwpkatha.co.in 18 Traits or characteristics Actual performance Training Needs Potential
- 13. Supervisor Roles in PA Purpose Determining merit compensation Identifying/solving perf. problems Identifying training needs Staff development & career planning Motivating employees Promotion/selection decisions Role Judge Doctor Doctor Counsellor Counsellor Judge ie. role conflicts - Judge/Counsellor/Doctor Dr. Anand K. Rai, IWP,Bareilly, anandrai@iwpkatha.co.in 20
- 14. Role of Appraiser Dr. Anand K. Rai, IWP,Bareilly, anandrai@iwpkatha.co.in 21 • Understand the Appraisee as a Human Being • Value Basics – strong points vs. weak points • Understand the Appraisee as an Employee • Performance on job – achievement, stretch • Understand the dynamics of Career Aspiration • Understand the dynamics of Life Aspirations • Guide with compassion, Assess with Business mind • Setting Goals for Appraisees & Appraising them
- 15. Appraisal Interviewing Styles Dr. Anand K. Rai, IWP,Bareilly, anandrai@iwpkatha.co.in 22 Tell and Sell Tell and Listen Problem Solving Mixed
- 16. Why Performance Appraisals can fail? Dr. Anand K. Rai, IWP,Bareilly, anandrai@iwpkatha.co.in 23
- 17. • Halo / Horns • Constant error – Leniency/Strictness • Central Tendency Error • Similarity Error • Primacy and Recency Error • Effect of ‘Attribution Theory’ • Inability of a rater to differentiate between ‘effort’ and ‘results’ • Error arising due to one’s personal biases and prejudices Errors in Performance Measurement Dr. Anand K. Rai, IWP,Bareilly, anandrai@iwpkatha.co.in 24