Performance+Management.pptx
- 1. Performance Management • By Vijayant Verma
- 2. What is Performance Management ? • Performance management is a business management tool that helps managers monitor and evaluate employees' work • Performance management tools help people to perform to the best of their abilities and produce the highest-quality work most efficiently and effectively. • The precept of performance management is to view individuals in the context of the broader workplace system. • Performance management focuses on accountability and transparency and fosters a clear understanding of expectations.
- 3. WHY PERFORMANCE MANAGEMENT? Promoting Organizational Capabilities Identifying Organizational Capabilities Subordinate Development T & D Communication/ Interaction Career Planning Reward H R Planning Performance Management
- 4. Performance Management Process Corporate Objectives and Strategies Departmental Goals Planning Performance (Goal setting) Enabling Performance Evaluating Performance Communicating Performance Rewarding Performance
- 5. Process of Objective Goal Setting in PMS
- 6. What is Performance? Organisation al Individual What should be measured? Outcom e Behaviou r Note: PM is a process of getting better results from individual groups and organisation
- 7. Two viewpoints to measure individual performance I) PERFORMANCE SHOULD BE EQUATED WITH TASK OR GOAL ACHIEVEMENT, RESULTS OR OUTPUT. I) PERFORMANCE SHOULD BE EQUATED WITH BEHAVIOUR.
- 8. Some examples of Performance determinants concerning individual behaviour Helping and cooperating with others Enthusiasm shown or effort made to complete task Making constructing suggestions Maintaining personal discipline supervision/leadership quality proficiency in written and oral communication problem solving capacity
- 9. Goal Setting Process • What are Goals?
- 10. Basic Principles of Goal Setting Goals should be challenging but attainable • There should be employees participation in setting goals Goals should be specified in terms of time frame: short/long • How objectives can be made quantifiable/ measurable? Relative importance should be clearly mentioned in case of multiple goals • Goals should be “SMART” • S - Specific • M - Measurable • A - Agreed • R - Realistic • T - Time-related
- 11. Pre-condition for an Effective Goal Setting Process • Role clarity • Job description • Organisational and departmentalgoals • Conducive climate • Positive mind-set
- 12. Theory of Goal Setting (Based on experience of 500 organisations) More difficult goals produce better performance. Specific goals are better than “do your best’ goals. People may abandon goals if the goals become too difficult. Participation in setting goals increases commitment and attainment of goals. Feedback and goals improve performance. Individual differences tend not to effect goal setting.
- 13. What is KPA and What is KRA? • Note: the terminology may differ in different organizations
- 14. Goal Setting process: Some Tips • Key performance areas or KPAs when made objective or measurable become KRAs • KRAs are the objectives/ goals (Objectives are specific & time-bound) • Each KPA may have one or more KRA • KPAs should not be very large in number. The about 5 to 8 KPAs are sufficient. • KRAs should be quantifiable/ measurable (KRAs could be related to any area –financial, managerial, customer service, quality or interpersonal dimensions). • Give relative importance to the KRAs with weightage given to each KRA
- 15. Performance Appraisal • Why Appraisal? How Appraisal? Who Appraises?
- 16. Why Performance Appraisal (Objectives) To measure and judge performance (Performance Measurement) To relate individual performance to organisational goals To foster increasing competence and growth of the subordinates (Performance Improvement) To stimulate the subordinate’s motivation by indicating their performance level To enhance communications between superior and subordinates To provide feedback to subordinates in order to know where they stand and what is expected from them. To serve as a basis for judgement about employees’ for salary, promotion, transfer or termination of service. To determine training needs for further improvement To identify potential for development To provide information to the Personnel Department for future reference.
- 17. How Performance Appraisal? A FEW COMMON APPRAISAL METHODS • Simple Rating Scale Method • Ranking Method • Paired Comparison Method • Forced Distribution Method • Critical Incident Method • BARS • Management By Objective (MBO)
- 18. SOME COMMON PROBLEMS IN APPRAISAL SYSTEMS WHICH WE ARE AWARE OF • Job Related • INABLITY TO SET TARGETS AT THE BEGINNING OF THE YEAR • UNCLEAR PERFORMANCE STANDARDS AND AMBIGUOUS CRITERIA • Person Related • HALO EFFECT • PERSONAL RELATIONSHIPS AND RESULTING BIASES, LIKING OF SIMILARITIES AND SOMETIMES ELEMENTS OF VINDICTIVENESS • RECENT INCIDENT SYNDROME • CENTRAL TENDENCY • LENIENCY OR STRICTNESS • TENDENCY OF INDIVIDUAL’S PERFORMANCE BEING JUDGED BY USING ORGANISATIONAL OR DEPARTMENTAL GOALS
- 19. MORE RECENT METHODS • Assessment Center Technique • Reverse appraisal and 360 degree feedback • Team appraisal • Balanced Scorecard Method • e-Performance Management
- 21. The Philip Model Problem Children Stars Planned Separation Solid Citizens P O T E N T I A L PE R F O R MAN C E
- 22. POTENTIAL APPRAISAL CRITERIA • Conceptual Effectiveness (Vision, Business Orientation, Entrepreneurial orientation, Sense of reality) • Interpersonal Effectiveness (Networking, Negotiating power, Personal influence, Verbal behaviour) • Operational Effectiveness (Result orientation, Individual effectiveness, Risk-taking, control) • Achievement Motivation (Drive, Professional ambition, Innovativeness, Stability)
- 23. Question ?