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Mita Das (11392)

PERFORMANCE MANAGEMENT

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PM- Definition, concerns and scopeThe management of performanceA short history of performance management

AGENDA:

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PERFORMANCE MANAGEMENT-DEFINITION,

CONCERNS AND SCOPE

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PM is a strategic and integrated approach to delivering sustained success to organisations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors.

DEFINITION:

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Vertical integrationFunctional integrationHuman resource integration Individual needs with the org.

STRATEGIC AND INTEGRATED

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IT’S ALSO ABOUT

HOW IT IS ACHIEVED

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Performance is not achieved unless there are effective process of development

PERFORMANCE AND DEVELOPMENT MANAGEMENT

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CONCERNS OF PERFORMANCE MANAGEMENT

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Output: achievement of results.Outcome: impact made on performance.Process: required to achieve these

results(competencies) and the inputs in terms of capabilities (knowledge, skill and competence) expected from the teams and individuals involved.

Inputs: Competence assessment – danger if lack validity and reliability.

CONCERN WITH OUTPUT, OUTCOMES, PROCESS AND INPUTS

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To achieve future success Defining expectations expressed as objectives and in

business plan

CONCERN WITH PLANNING

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Concerns with measurement and review : If you can’t measure it , you can’t manage it.

Concerns with continuous development and improvement: from the successes and challenges in their day to day activities

Concern for communication: continuous dialogue between managers and members of the team takes place for mutual understanding of what is to be achieved and ensure that it will be achieved.

CONT..

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Concern for stakeholders: employees as partners, PM should respect the needs of individuals and teams as well as those of organisation.

Ethical concerns: respect for individual, mutual respect, procedural fairness, transparency

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Managing the organisation

Managing within the context of business(internal and external environment)

Manage context not performance: Jones

Manager and their teams are jointly accountable for results

SCOPE OF PM..

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THE MANAGEMENT OF PERFORMANCE.

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Importance of defining objectives and of planning to achieve them

Give every employee a business person’s strong sense of revenue, cost and profi t

Pursue fast paced innovationRelationships and communication are more important

than the formal channelsThe pursuit of high performance by developing

competence

FEATURES OF AN EFFECTIVE ORGANISATION

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Importance of goals, and measuring and monitoring of performance in relation to goals

Importance of context(structure, process and people) Importance of competence Importance of value chain

IMPLICATIONS FOR THE MANAGEMENT OF PERFORMANCE: SEARS MODEL

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Oxford dictionary: The accomplishment, execution, carrying out, working out of anything ordered or undertaken.

By Brumbrach: Performance means both behavior and results.

PERFORMANCE

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Pers

onal

fa

ctor

s

Leadersh

ip factors

Team factors System

factors

Contextu

al factorsFACTORS AFFECTING PERFORMANCE

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Context of org.CultureFunctionality Job designTeam workOrganisational developmentPurpose and value statementStrategic managementHuman resource management

WHAT MAKES PERFORMANCE WELL??

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A SHORT HISTORY OF PERFORMANCE MANAGEMENT.

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(AD221-265)Wei dynasty in china had an imperial

rater

Ignatius Loyola(1491-1556) introduced formal

rating of the members of the society of Jesus

First formal rating system by Fredrick Taylor before world

war I

ANTECEDENTS

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Rating for US armed forces in

1920, merit rating in US and UK in 1950s and

1960s.

MBO(1960s)

Critical incident technique and behaviorally

anchored rating scale

Revised form of performance

appraisal

CONT..

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W D Scott who introduced man to man comparison scale

This scale was modified an used to rate the effi ciency of US army offi cers

Initiated an era of promotion on the basis of meritGraphic rating scaleForced distributionFactorising

MERIT RATING AND PERFORMANCE APPRAISAL

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McGregor said focus should be on the future rather than the past in order to establish realistic targets and seek the most eff ective ways of reaching them.

The superior instead of becoming psychologist or therapist can become a coach.

DRAWBACKS

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Mainly concerns with the assessment of traitsAssessment of traits are subjective judgments and

prompted by prejudices

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By Peter Drucker(1955) Integration of individual and corporate goals

MANAGEMENT BY OBJECTIVES

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1. Development of role & mission statement.2. Establishing strategic goals/strategic plan.3. Defi ning key results areas.4. Establishing indicators or eff ectiveness, goals, or orga

nizational objectives.5. Establishing, or negotiating individual employee object

ives.6. Establishing performance standards for each objective.7. Action planning for each employee.8. Periodic measurement and assessment of status of eac

h objective/standard.9. Coaching/training to remediate defi cits.1O. Some form of evaluation or assessment done formally

 and included in an employee's record.

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Tactical Plans

Unit objectives and improvement plans

Individual

manager’s Key

results and

Improvement plan

Review and

control

Strategic plan

MBO CYCLE:

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Levinson- A person doing excellent job by objective standards of measurement may fail miserably as a partner, superior, subordinate or colleague.

Quality of performance frequently losses out to quantification

Schaff er-process was over systematized

CRITICISMS OF MBO

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By FlanaganTo focus on critical behavior rather than trait

assessment(merit rating) and output(MBO).To keep record of incidents and use them as evidence

of actual behavior during review meetings. ‘Black book’More of real informationDiff erentiating competencies

CRITICAL INCIDENT TECHNIQUE

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They include no. of performance dimension and managers rate each dimension on a scale.

But it focuses on specific work behaviors.

BEHAVIORALLY ANCHORED RATING SCALES

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Appraisals can help to improve employees’ job performance by identifying strengths and weaknesses and determining how their strength may be best utilised within the org. and weaknesses overcome

PERFORMANCE APPRAISAL(1970S VERSION)

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Emphasis on both development and evaluationUse of profi le defining the individual’s strengths and

development needs Integration of the results achieved with the means by

which they have achieved

ENTER PM: EARLY DAYS

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Whether performanc

e has achieved

the agreed upon plan

How work is progressing

towards desired results

How it will be

accomplished

What work is to be

accomplished

PM IS COMMUNICATION:

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Performance planning

Performance review

Performance appraisal

3 ELEMENTS

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Performance management is not a system or technique, it is the totality of the day to day activities of all managers.

FOWLER’S DEFINITION OF PM