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DEFINITION OF PERFORMANCE
MANAGEMENT
A systematic approach to improving individual and teamperformance in order to achieve organisational goals
Hendry, Bradley,and Perkins(1997)Performance management is about directing and supportingemployees to work as effectively and efficiently as possible in
line with the needs of the organisation. Walters(1995)Performance management is a means of getting better resultsfrom he organisation, teams, and individuals within an agreedframework of planned goals, objectives and standards
Armstrong and Murlis(1994)An effective performance management system alignsindividual performance with the organisations mission,visionand objectives
American compensation association(1996)
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Meaning of Performance Management(PM)
PM is a strategic and integrated approachto delivering sustained success toorganisations by improving theperformance of the people who work inthem and by developing the capabilities ofteams and individual contributors.
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Comparision between performance appraisal
and performance management
Performance appraisal Performance management
Usually tailor made
Applied to all staff
Individual objectives may beincluded
Some qualitative performanceindicators may also be included
Annual appraisal
Top-down system with ratings
Often linked to pay
Monolithic system
Complex paper work
Owned by personnel department
Tailor made
Applied to all staff
Emphasis on integrating corporate,teamand individual objectives
Competence requirements often includedas well as quantified measures
Continuous review with one or more formalreviews
Joint process,ratings less common
May not be a direct link to pay Flexible process
Documentation often minimised
Owned by line management
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Performance defined Performance is something that person leaves behind
and that exists apart from the purpose. Kane(1996)
Performance should be defined as the outcomes of workbecause they provide the strongest linkage to thestrategic goals of the organisation, customer
satisfaction, and economic contributions
The Oxford English Dictionarydefines performance as the accomplishment, execution, carrying out, working outof anything ordered or undertaken
In general when one is managing the performance ofteams and individuals, both inputs (behaviour) andoutputs(results) should be considered. performance ishow things are done as well as what is done
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Factors affecting
performance Personal factors- the individuals skill, competence,
motivation and commitment
Leadership factors- the quality of encouragement,
guidance and support provided by managers and teamleaders
Team factors- the quality of support provided bycolleagues
System factors- the system of work and facilitiesprovided by the organisation
Contextual (situational)factors- internal and externalenvironmental pressures and changes
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Objectives of performance management
1. When people (individuals and teams) knowand understand what is expected of them,and have taken part in forming theseexpectations, they will use their best
endeavors to meet them2. The capacity to meet expectations depends
on the levels of capacity that can be achieved
by individuals and teams, the level of supportthey are given by the management and theprocesses, systems and resources ,madeavailable to them by the organisations
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Aims/objectives of PM Help to achieve sustainable improvements in organisational
performance
Act as a lever for change in developing a more performanceoriented culture
Increase the motivation and commitment of employees
Enable individuals to develop their abilities,increase their jobsatis faction and achieve their full potential to their own benefitand that of the organisation as a whole
Enhance the development of team cohesion and performance
Develop constructive and open relationships betweenindividuals and their managers in a process of continuingdialogue which is linked to the work actually being donethroughout the year
Provide opportunities for individuals to express their aspirationsand expectations about their work
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Importance/Benefits of performance management
For the organisation
1.Align corporate, individual and team objectives2.Improve performance
3. Motivate employees
4.Increase commitment
5.Underpin core values6.Improve training and development processes
7.Help to develop a learning organisation
8.Enlarge the skill base
9.Provide for continuous improvement and development
10.Provide the basis for career-planning11.Help to retain skilled employees
12.Support total quality and customer service initiative
13.Support culture change programmes
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Importance contd.For Managers
Provide the basis for clarifying performance and behaviourexpectations
Afford a framework for reviewing performance andcompetence levels
Improve team and individual performance
Support leadership, motivating and team buildingprocesses
Provide the basis for underperformers
May be used to develop or coach individuals
Offer the opportunity to spend structured quality timewith teams and team members
Provide the basis for providing non-financial rewards tostaff (eg. Recognition, opportunity for growth anddevelopment
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Importance contdFor individuals
1. Greater clarity of roles and objectives2. Encouragement and support to perform well
3. The provision of guidance and help indeveloping abilities and performance
4. Opportunities to spend qualty time with theirmanagers
5. Opportunities to contribute to the formulation
of objectives and plans and to improvements inthe way work is managed and carried out
6. An objective and fair basis for assessingperformance
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Scope of performance management
PM is about managing the organisation.It is a natural process of
management, not a system or technique It is also about managing within the context of the business(its
external and internal environment)
PM concerns everyone in the business-not just managers. It
rejects the cultural assumption that only managers areaccountable for the performance of their teams and replaces itwith the belief that responsibility is shared between managersand team members
In short ,best-practice performance-management processes arepart of a holistic (all-embracing) approach to managing forperformance, which is the concern of everyone.
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1. It is a continuous process
2. It is flexible in nature
3. It is futuristic in nature
4. It is a participatory process5. It is a means of controlling
6. It is behavioral in content7. It is win-win philosophy
Nature of PM
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THE PERFORMANCE MANAGEMENT CYCLE
The performance management process
Plan
ActMonitor
Review
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The performance management sequence
Corporate mission andstrategic goals
Business and departmentalplans and goals
Performance anddevelopment agreement
Performance and
development plan
Formal review, feedbackand joint assessment
Action-work anddevelopment
Continuous monitoring
and feedback
Competencerequirement
Competence
evidence
Performancestandards
Performance
measurement
Financialreward
Rating