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PERFORMANCE MANAGEMENT
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INTRODUCTION
Performance management is an ongoing processthat
involves both the performance manager and the employee
It is the most important and productive activity a managercan pursue, because if it is done well, employees will perform in
the right was to get the right results.
If it is ignored or poorly done, employees performance
results and motivation suffers and the manager may end up
doing the employees work rather than managing
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Definition
Performance management can be defined as a
strategic and integrated approach to delivering sustainedsuccess to organizations by improving the performance of
the people who work in them and by developing thecapabilities of teams and individual contributors
- Armstrong & Baron , 1998
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Performance management is about managing the
organization.
It is a natural process of management , not a
system or a technique.It is also about managing within the context of
the business (its internal & external environment)
The performance management process is a big
change from what was in place previously.It is based on the results or outcomes of your
work, not just the activities you perform day-to-day.
Performance Management
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Contd..
An iterative process of observation and
communication to support, retain and develop
employees for organizational success.
performance management is the process of
planning performance, appraising performance,
giving its feedback and counselling an employee toimprove his performance.
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It is a systematic process of
o Planning work and setting expectations
o Continually monitoring performance
o Developing the capacity to perform
o Periodically rating performance in a summary
fashion
o Rewarding good performance
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CommunicateCommunicate
ObserveObserveEvaluateEvaluate
Set GoalsSet Goals
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PurposeofPerformance Management
y It is a means of getting better results from the organization, teams and individuals by understanding and managingperformance within an agreed frame work of planned goals, standards and competence requirements.
y It is a process for establishing shared understanding aboutwhat is to be achieved , and an approach to managing anddeveloping people in a way that increases the probabilitythat it will be achieved in the short and long term.
y It is owned and driven by line management.
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Principlesofperformance
management
The principles of performance management have been wellsummarized by IRS (1996) as follows :
It translates corporate goals into individual , team, department anddivisional goals.
It helps to clarify corporate goals.
It is a continuous & evolutionary process , in which performanceimproves over time.
It encourages self-management of individual performance.
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It requires a management style that is open & honest & encourages
two-way communication between superiors & subordinates.
It requires continuous feedback
Feedback loops enable the experiences & knowledge gained on the
job by individuals to modify corporate objectives.
It measures & assesses all performance against jointly agreed goals.
It should apply to all staff ; and it is not primarily concerned with
linking performance to financial reward.
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ETHICAL CONSIDERATIONS
Performance management should operate in accordance withthe following ethical principles as defined by Winstanely & Stuart-Smith (1996)
Respect for the individualpeople should be treated as ends inthemselves and not merely as means to other ends ;
Mutual respectthe parties involved in performance management
processes should respect each others needs & preoccupations ;
Procedural fairnessthe procedures incorporated in performancemanagement should be operated fairly to limit the adverse effect onmanagement;
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Transparencypeople affected by decisions emerging from theperformance management process should have the opportunity
to scrutinize the basis upon which decisions were made.
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GoalsofPerformance Management
Ties individual performance objectives to the colleges goal
Promotes partnership between supervisor and employee
Promotes ongoing open communication
Promotes professional development
Establishes framework for future growth
Provides employee with ongoing written feedback
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EffectivenessofPerformance
Management
To create an awareness on the role of understanding themselves,managing stress and building relationships
To help participants be aware of their behavioral strengths,
weakness and understand the importance of a positive attitude.
To help improve effectiveness on the job and become an effective
communicator.
Corporate Skills that include - Presentation Skills, Manners andEtiquette Today - especially as our world shrinks in todays global
scenario.
To provide participants with an understanding of the issues in team
- work and importance of time management.
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What we need to know to design and implementation of
effective performance management system?
To make sure employees contribution have a positive
impact on the organization as a whole
To establish criteria for job success
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Individual Performance Management
Individual Performance Management focuses on
getting the right people in the right positions and helpingthem learn, grow and realize their potential. It is aimed at
getting their efforts directed into achieving objectives
which are aligned with those of the organization.It also
addresses issues arising when people leave.
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Team Performance Management
Team performance measures describes the team
outputs, team processes, customer relations, quality
standards, speed of response or delivery time, projectmanagement, financial results and cost control of a team in
an organization.
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EFFECTIVENESS OF TEAM
PERFORMANCE MANAGEMENT
Help participants see the benefits of working together towards
a shared common goal.
Emphasize the importance of openness and trust for effectiveteamwork.
Define and clarify parameters of effective communication.
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Contd.
Offer experiences that foster good Interpersonal relationship that could be
carried back to the work place.
Help participants gain self esteem and confidence through successes over
challenges that come their way in the program.
Offer opportunities to participants, through intense team and individual
based experiences, for self introspection.
Understand their role in furthering the Vision and Values of the
Organization.
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Componentsofperformance
management
y Performance and development planning
y Coaching and progress reviews
y Performance and development review
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ComponentsofPerformance Management
Performance and
Development
Planning
Coaching and Progress
Reviews
Performance and
Development Review
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Performance Management Tools for
Performance and Development Planning
y Identify the goals/expectations
y Establish measurement criteria
y Identify gaps in knowledge or skills required to
achieve objectives
y
Describe specific development activities
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Performance Management Tools for
Performance and Development Planning:
Identify the goals/expectations
y Good goals are: SMART
Specific
Measurable
Achievable
Results-oriented
Time-oriented
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S = Specific
State clearly what is to be accomplished in concrete terms M = Measurable
Objectives should be quantifiable and the measurement
tools should be available.
A = AchievableCan the result be realistically achieved
R= Result- oriented
the objective should be linked vertically to the
organizations goals T = Time Bound
Each objective should have a clearly defined time frame.
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Performance Management Tools for
Performance and Development Planning:
Establish measurement criteria
y Quantity: specifies how much work must be completed within
a certain period of time
y Quality: describes how well the work must be accomplished,specifies accuracy, precision, appearance or effectiveness,
sensitivity to diversity and culture
y Timeliness: answers the questions, By when? How soon? or
Within what period?
y Effective use of resources: used when performance can be
assessed in terms of utilization: budget savings
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Performance Management Tools for
Performance and Development Planning:
Identify "gaps to achieve objectives
By evaluating employees current job skills to thoseneeded for the performance objective(s), training and
development needs will be identified.
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Performance Management Tools for
Performance and Development Planning:
Describe specific development activities
y Identify areas needing improvement
y Provide specific and realistic suggestions
y Give advanced thought to amount of supervisory time required
y Consider employees key interests and/or developmental needs,
and alignment with departmental goals
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ComponentsofPerformance Management
Performance and
Development Planning
Coachingand
ProgressReviews
Performance and
Development Review
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Performance Management Tools for
Coaching and Progress Reviews
y When
Conduct ongoing feedback and coaching
sessions throughout the year
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Performance Management Toolsfor
Coaching and Progress Reviews
y How
y Let employees knows what is expected of them
y Allow employees sufficient opportunity to perform their job
y Let employees know how they are doing
y Seek the employees opinion
y Ask the employee to identify specific ways to enhance
performance and take ownership
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Performance Management Tools for
Coaching and Progress Reviews
y How - contd
y Give feedback on employees ideas and give your own.
y Summarize meeting outcomes and set a follow-up date
y Express confidence and support
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Performance Management Tools for
Coaching and Progress Reviews
y Feedback should be:
y Behavioral: Focus feedback on employees behavior
y Specific: Give specific examples of observations; avoid
exaggerations, e.g. always never
y Job-related: feedback must be about behaviors
exhibited on the job
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Performance Management Tools for
Coaching and Progress Reviews
y Feedback should be:
y Timely: feedback should be given as soon as possible; time
lapse allows inappropriate behavior to be repeated
y Balance: the sandwich method; deliver positive feedback,
followed by constructive feedback, then positive again
y Respectful: feedback is more easily accepted if the
employees dignity and self-worth are kept intact
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Performance Management Tools for
Coaching and Progress Reviews
y Verbal Formal - set up formal meeting time to hear a
progress report from your employees
y Verbal Informal - a simple hows it going
conversation
y Written Formal - letter or memoy Written Informal - a note giving a quick update or input
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Performance Management Tools for
Coaching and Progress Reviews
y Some reasons for Non-Performance
Employees dont know what they are supposed to do
They dont know how to do it
They dont know why they should do it
There are obstacles beyond their control
They dont think it will work
Not motivated - poor attitudeNot enough time for them to complete it
They dont know what the priority is
They think they are doing it (no feedback)
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ComponentsofPerformance Management
Performance and
Development Planning
Coaching and Progress
Reviews
Performance
and
DevelopmentReview
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Performance Management Tools for
Performance and Development Review
y Performance Reviews - Why do them?
To review employee performance vs. expectations To clarify job responsibilities and understanding
To help plan developmental needs
To provide honest and constructive feedback
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Performance Management Tools for
Performance and Development Review
y Preparation for Review
Review past 12 months performance record
Gather input from others
Review documents from coaching/feedback sessions
Review written notes or communications
Compare performance objectives to results
Examine results against their impact on the Colleges goal
Encourage employees to submit their list of
accomplishments
Review employees development objectives
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Performance Management Tools for
Performance and Development Review
y During the meeting:
State purpose of discussion
Give recognition for each objective, accomplishments, areas
of strength
Specify areas for each objective where performance can be
improved Summarize overall performance
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Performance Management Tools for
Performance and Development Review
y During the meeting:
Ask employee to give comments
Review employees progress with development
End on a positive note
Plan a meeting to create a new performance and development
plan
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Performance Management Tools for
Performance and Development Review
y Supervisors - Keep in mind:
y Listen carefully
y Ask for examples, questions, solutionsy Summarize or restate your understanding of the feedback
y Try not to act defensively or make excuses
y Acknowledge the feedback and offer thanks
y Be open to change -- nobodys perfect
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Performance Management Cycle
Planning
Rewarding
Rating
Developing
Monitoring
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Planning
Planning
Set Goals
Establish and communicate
elements and standards
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Monitoring
Monitoring
Measure performance
Provide feedback
Conduct progress review
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DevelopingDeveloping
Developing
Improve poorperformance
Address good performance
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Rating
Rating
Summarize performance
Assign the rating of record
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Rewarding
Rewarding
Recognize and reward goodperformance
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Performance ManagementPerformance Management
ProcessProcess
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Process:
Overview
Prerequisites
Performance Planning
Performance Execution
Performance Assessment
Performance Review
Performance Renewal and Reconstructing
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Performance Management ProcessPerformance Management Process
Performance
Review
Performance
Renewal and
Recontracting
PerformanceAssessment
Performance
Execution
Performance
PlanningPrerequisites
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Performance planning
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Performance planning
y It is the first step of performance management.
y
It is the process of determining what and how a jobis to be done in such a manner that both the
employee and his superior understand what is
expected from the employee and how success is
defined and measured .
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Contd.
y Performance planning consists of a joint exploration
of what individuals are expected to do and know how
they are expected to behave to meet the requirements
of their role and develop their skills and capabilities.
y It also deals with how their managers will provide the
support and guidance they need.
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Contd
y Starting point for an employee and manager to beginperformance management
y Usually for a one-year period
y Work together to identify
y What the employee should be doing for the period beingplanned
y How well the work should be done
y When it needs to be done
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Performance Planning (cont.)
y By the end of performance planning process, both should be able toanswer the following questions
y what are the employees major responsibilities for the year?
y How will we know whether the employee is succeeding?
y How the work should be done (competence and process required
y Which responsibilities are of most important and which are leastimportance?
y How do the employees responsibilities contribute to departmentand company?
y Any core values the individual should be expected to uphold
core values may be expressed in a list of competencies
y Does the employee need to develop new skills/abilities toaccomplish tasks?
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Performance planning process
y In consultation with the
superior , the employee
formulates his job
objectives keeping in
view the
organizational/unit
objectives.
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Contd..
y During this session, each objective and its contribution
to organisational objectives is discussed.
y If any development activities that will be required by
the employee are worked out.y Once performance plan is established, it is the
responsibility of the employee to carry out the
objectives and other responsibilities specified in the
plan.
P f M '
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Performance Manager's
Responsibilities
Assessment
Providing Information
Referral
Guidance
Develop
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Performance Management-
Roles and Responsibilities
EmployeeEmployee
Responsible for developmentof self
Life-long employability focus
Maintain skills required forcurrent job
Define career interests andgoals
Complete individualdevelopment plan
Supervisor
Create a learning/developmentenvironment
Provide support for acquisition ofnew skills
Discuss development needs for
current job Discuss career development withemployees
Provide opportunities consistent withplan
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Benefits of the PerformanceManagement System
DirectFinancial
Gains
Motivatedworkforce
ImprovedManagementControl
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Direct Financial Gains
Grow sales
Reduce costs
Stop project overruns
Aligns the organization directly behind the CEO's goals
Decreases the time it takes to create strategic or operationalchanges by communicating the changes through a new setof goals
M ti t d W kf
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Motivated Workforce
Optimizes incentive plans to specific goals for overachievement, not just business as usual
Improves employee engagement because everyone
understands how they are directly contributing to theorganisations high level goals
Create transparency in achievement of goals
High confidence in bonus payment process
Professional development programs are better aligned
directly to achieving business level goals
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Improved Management Control
Flexible, responsive to management needs
Displays data relationships
Helps audit / comply with legislative requirements
Simplifies communication of strategic goals scenario
planning
Provides well documented and communicated process
documentation
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Evaluationofperformance management
y It is clearly important to monitor the introduction of
performance management very carefully.
y It is equally vital to continue to monitor and evaluate it
regularly.
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Method
y The best method of monitoring and evaluation is to
ask those involved managers and individuals how
it worked.
y The evaluation can be carried out by members of aproject team and / or by the HR function.
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Contd.
y Individual interviews and focus group discussions can
be supplemented by a special survey of reactions to
performance management, which could be completed
anonymously by all managers and staff.
y The results should be fed back to all concerned and
analyzed to assess the need for any amendments to theprocess or further training requirements.
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Thank You
Presented By
SRUTHI .A