Copy of Performance Management 25th Oct 09

8/8/2019 Copy of Performance Management 25th Oct 09

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PERFORMANCE MANAGEMENT

NEEL

DME, BE, MBA (HRM), M.PHIL (Business Admin), M.S.

(Counselling and Psychotherapy), M. Sc. (Counselling and

Psychotherapy)

Mob: 9324507182


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COMPARISON OF

MANAGEMENT BY OBJECTIVES, PERFORMANCE APPRAISALAND PERFORMANCE MANAGEMENT

PMS COMPARISON.xls


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The essence of

Performance Management

An effective PM system aligns individual

performance with the organisations mission,

vision and objectives.American CompensationAssociation (1996)

PM is a process for establishing shared

understanding about what is to be achieved, and

an approach to managing and developing people

in a way which increases the probability that it will

b e achieved in the short and longer

term..Armstrong (1994)


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25th Oct 2009


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Propositions on which PM is built:

The basic aim-

1. When people know and understand what is

expected of them, and have taken part in

forming these expectations, they will use theirbest endeavours to meet them.

2. The capacity to meet expectations depends on

the levels of capability that can be achieved by

individuals and teams, the level of support they

are given by management, and the processes,

systems and resources made available to them

by the organisation.


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Detailed Aims

Help to achieve sustainable improvement in Org.

Performance

Act as lever in developing performance oriented culture Increase: Motivation & Commitment of employees

Enable: Individual and Org to help maximise their

potential and growth.

Enhance: Team cohesion and performance Help enhance relationship between teams and

Managers due constant interaction and dialogue.

Help all to express their feelings and desires for growth


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Why Organisations introduce PM

ORGANISATION REASONS GIVEN

American Express Services Cultural Change

Arts council of England Link pay to performance

British Medical Association Customer Service

Building Research

EstablishmentLink pay to performance

Mansfield Shoe GroupQuality, reduce costs and

improve customer service


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Why Organisations introduce PM

National History Museum Link pay to performance

NHS Executive TrustLink pay to performance, quality

and skills development

Northern Ireland Audit Office Improve Customer Service

Pearl Assurance Improve customer Service

Public Record OfficeImprove Efficiency and devolve

control to line managers

Scottish Power

Link pay to performance for

Managers, identify training needs

and link pay to skill development

for other staff.


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PM CYCLE..A CONTINEOUS ONE

PLAN

ACT

MONITOR

REVIEW


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Defining Performance Mgmt Cycle

Torrington and Hall

Supporting Performance

Determining Performance

Expectations

Reviewing & Appraising

Performance

Managing Performance

Standards


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PERFORMANCE MANAGENT

SEQUENCE

Adapted from Cave and Thomas 1998

Performance Mgmt Sequence.xls


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Corporate Mission and Strategic Goals

These provide the starting point of the performance

management process. The Aim is to ensure that

each of the activities in the sequence is aligned tothose goals and contributes to their achievement.

Business and Departmental Plans and Goals

These flow directly from the Corporate Goals but

some iteration may take place so that departmental

views about what can be achieved are taken into

account before the business goals are finalised.


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Performance and Dev. Agreement

Sometimes called performance contract.

Agreement reached between Managers and Individuals

on Objectives and Accountabilities. Done during formal meeting and recorded in

Performance Review Form.

Better to do it with enough advance preparation prior toformal meeting from both ends.

This covers following areas:1. What the person is doing now.

2. Future expectation due to change in role if applicable

3. Well defined Competence and Process requirement.


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Contd.

Expected outputs and outcomes of the work.

Input requirements (Knowledge, Skills and

Abilities)

Expected core valuese.g. quality, teamwork,

customer service, Social responsibilities(environment))

Support expected by the employee from

Manager, co-workers, other resources /

information.

A detailed discussion will help in understanding

and revising the KRAs of individuals and will

bring harmony in the system


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Performance Review and

Development Plan

Well defined Measurement processes and

evidences that are going to be used.

Define KRA and method of validating Review

Well defined development plan of Organisation

with scope and how individuals will be fitted in it

as per Performance Review results. E.g. Sales Data, Production Data, DARs,

Marketing Data, Commercial or Accounts Data,

SAP/ ERP etc


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Action Work, Development and Support

PM gets people into action. Helps in

understanding the development needed for

improvement and helping them to learn with

management support for better results.

Support should be provided on a continuousbasis through counselling, coaching with

adequate facilities and resources necessary

to meet expectations.


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Marchington and Wilkinson 1996

PM requires ongoing and unsolicited support

in order to be effective, that is the telephonic

call and the or the chance conversation,just to check that all is going well, which

many busy managers tend to overlook, in

their efforts to satisfy formal organisational

requirements.


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Continuous Monitoring and Feedback

It is the most important aspect of PM

It is a continuous process of managing and developing

performance standards. It should not be imposed on Managers as something

Special they have to do.

American Compensation Association 1966: Develop

PM on the basis of Open, honest, positive, two waycommunication between supervisors and employees

throughout the period.

Interim informal reviews to be held: Qtrly, Monthly etc.


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Formal Review and Feedback

Frequency to be decided based on work

needs

Occasion for providing structured feedback

and reflections.

To be based on events and observations

rather than on opinions. To be limited to period under consideration.

There must be an element of self

assessment.


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Points covered during review:

Achievement of objectives: How on +ve and why not

ve

Level of achievement under each competency

Contribution by individual in upholding core values.

Achievement in implementing PRDP.

Areas of Strengths and improvements

Emotional feelings about work, environment and future

Career Aspirations

Comments by person on support he got from

supervisor or manager


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Overall Performance Rating

Whenever a PLI is involved a Rating is a MUST.

Arguments in favour of Ratings:

1. A PLI can not be paid without a rating.

2. Convenient means of summing up review and

separating low and high performers.

3. Can provide a basis for prediction in future role.This is highly dubious. Past future.

4. They let people know where they stand, atleast

in the eyes of their managers.


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Arguments against Ratings:

It may be unjustifiable to sum up performance with singledigit. System factors are beyond the control of individuals.

Consistency between raters are difficult to achieve.

May be based on subjective judge-ments.

Managers may find it difficult to answer What do I have todo to get higher Rating

Rating encourages Manager to be dishonest. Central

Tendency in Rating or they decide what they want on PLIand then rate their team.

Tends to get into Top-Down judge-mental exercise.


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Arguments against Ratings:

The positive developmental aspects of the review may be

overshadowed by he knowledge that the end product will

be a rating that will inform a pay decision. In practice, thereview and the preparation for it may be dominated by its

pay implications, destroying its main purpose.

To label people with a number or letter is both demeaning

and demotivating.

Ratings convey opinions about the past performance and

do not indicate anything about future.

It makes people Impression Managers and people get

into managing impressions than getting on with their work


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THANK YOU

YOUR FRIEND AND PARTNER

IN PROGRESS

[email protected]

9324507182

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Copy of Performance Management 25th Oct 09

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