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Program : MBA

Semester : IV

Subject Code : MU0016

Subject Name : Performance Management and Appraisal

Unit number : 4

Unit Title : Process of Performance Management

Lecture Number : 4

Lecture Title : Process of Performance Management

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Objectives :

To explain performance planning.

To describe how expectations are designed.

To explain performance measurement.

To discuss performance review.

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Unit-4 Process of Performance Management Framework

Process of Performance Management

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Lecture Outline

Introduction

Performance Planning

Expectations

Objectives

Performance Measurement

Performance Review Guidelines used to provide Feedback

Continuous Process of Performance Management

Performance Rating

Coaching

Documentation

Summary

Check Your Learning

Activity

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Introduction

Performance management system consists of many interconnectedprocesses which takes place throughout the year.

Performance management process is also related to how employees

monitor and improve their performance, measuring performance anddocumenting the results of performance management plans and

reviews.

In this session we will discuss :

Performance planning

Performance measurement

Performance review

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Performance Planning

Performance planning:

Focuses on setting the direction, accepting performance agreements

and agreeing personal improvement plans.

Is the first step of an effective performance management process.

Is concerned with improving employee performance by helping them

to learn and providing them with the support they need to do well,

now and in the future.

Involves a meeting of about an hour or so between an appraiser and

the employee being assessed.

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Expectations

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Expectations are defined and agreed in the form of role profiles.

Expectations are described as short or medium term targets, the

extension of knowledge and skills, keeping the core values of the

organisation and meeting behavioural requirements.

Expectations should be defined based on a role profile which sets out

the overall purpose of the role and the important result areas it

contains.

Role profiles define the overall purpose of the role, its reporting

relationships and key result areas.

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Objectives

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Managing expectations is based upon an agreement between the

manager and the employee on the objectives of the job under

discussion and how its attainment would be measured.

Objectives can be work-related, referring to the achievement of

role requirements.

The various types of objectives are:

On-going role objectives

Targets Tasks/projects Values Behaviour Developmental Performance improvement

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Performance Measurement

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The criteria that will be used to assess the extent to which objectives havebeen achieved is identified and agreed upon during the planning stage.

The performance metrics can be categorised as:

Finance

Output

Impact

Reaction

Time

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Reviews give managers and the individual members of their teams achance to break and reflect on the key issues of personal development

and performance improvement.

The objectives of performance reviews are:

Motivation

Development

Communication

Performance Review

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Guidelines used to provide Feedback

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Feedback should be given on real results or observed behaviour. It should be

supported by evidence. It should not be based on assumptions about the

reason for the behaviour.

Feedback should be given immediately. It should be given as soon as possible

after the performance review so that it makes a strong impact.

Feedback should not be a judgement. It should be presented as a description

of what has happened.

Feedback should focus on aspects of performance the employee can improve.

Feedback should make employees feel empowered.

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Continuous Process ofPerformance Management

A basic part of the continuing process of management is performancemanagement . This is based on a belief which emphasises that:

Performance has to be continuously improved .

Skills and capabilities Have to be constantly development .

An organisation should constantly develop and apply the learninggained from experience and analyse the factors that have producedhigh levels of performance.

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i f f k

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Performance Rating

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Coaching

Coaching needs may arise from formal or informal performancereviews, but opportunities for coaching will emerge during the normalday-to-day activities.

As part of the normal process of management coaching:

Make employees aware of their performance.

Make sure that employees understand what they need to know to beable to complete their task adequately.

Use appropriate situations to promote learning

Encourage people to take up higher-level issues and helping themidentify how they would tackle them.

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Documentation

It is very important to maintain records of the role profiles, theagreed objectives and the improvements made.

The essential information to be recorded on a form are :

The key result areas from the role profile.

The objectives agreed for each key result area.

The values or competency headings.

The assessment of performance against each key result area

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Summary

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Performance management is a continuous process that

happens through out the year.

The first step of an effective performance managementprocess is performance planning.

Performance management is basically about managingexpectations.

It is very important to know what the present performanceis, in order to improve performance. Hence, performancemeasurement is very important.

The objectives of performance reviews are motivation,

development and communication.

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Check Your Learning

1. What is performance planning?

Ans. Performance planning focuses on setting the direction, accepting

performance agreements and agreeing personal improvement plans.

2. Mention the categories of performance metrics.

Ans. The performance metrics are classified into finance, output, impact,

reaction, and time.

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Activity

ABC is a software development company. Assume that you are

the manager of the HR department in ABC. How would you go about

planning performance?

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