2. Introduction
Definition
Difference between performance appraisal and performance management
Advantages of Performance Management System
Disadvantages of Poorly-implemented Performance Management System
Components of Performance Management Systems
Role of Performance Management Systems
Characteristics of a Performance Management Systems
Examples of performance management
Content
3. Performance management
Performance management is a continuous
process of identifying, measuring and
developing performance in organizations
by linking each individual’s performance
and objectives to the organization's
overall mission and goals.
4. Alignment of organization plan with individual Performance
Individual Performance
Results, Behaviors, Developmental Plan
Job Description
Tasks, KPAs, KPIs
Unit’s Strategic Plan
Mission, Vision, Goals, Strategies
Organization’s Strategic Plan
Mission, Vision, Goals, Strategies
5. Performance
appraisal
Performance
Management
• Assesses employee Strengths
& Weaknesses
• Once a year
• linked to compensation
• Top-down assessment
• Driven by HR
• Bureaucratic with a focus on
paperwork
• Lacks ongoing feedback
• Strategic business
considerations
• Ongoing and continuous
feedback
• More likely to involve
dialogue (KPR & KPI)
• Flexible process
• Conducted by managers
and supervisors
Evaluating the performance of
employees typically to determine
reward
Managing and developing employee
performance to foster growth
within the organisation
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• The definitions of job and
success are clear
• Motivation to perform is
increased
• Self-esteem is increased
• Self-insight and development
and enhanced
Employees
• Supervisors’ views of
performance are
communicated more clearly
• Managers gain insight about
subordinates
• There is better and more
timely differentiation between
good and poor performers
Managers
• Organizational goals are
made clear
• Organizational change is
facilitated
• Administrative actions are
more fair and appropriate
• There is better protection
from lawsuits
Organization
Advantages of Performance Management Systems for:
7. Modern
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Presentation
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a unique zing and appeal to your Presentations.
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modern PowerPoint Presentation that is
beautifully designed. You can simply impress
your audience and add a unique zing and
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• Lowered self-esteem
• Employee burnout and
job dissatisfaction
• Damaged relationships
• Use of false or
misleading information
Employees
• Increased turnover
• Decreased motivation to
perform
• Unjustified demands on
managers’ resources
Varying and unfair
standards and ratings
Managers
• Wasted time and money
• Unclear ratings system
• Emerging biases
• Increased risk of
litigation
Organization
Disadvantages of Poorly-implemented Performance Management Systems
8. Performance Planning
Performance Appraisal and Reviewing
Feedback on the Performance followed by
personal counseling
Rewarding good performance
Potential Appraisal
Performance Improvement Plans
Components of Performance
Management Systems
9. Role
of
Performance
Management
Systems
• To help top management achieve strategic business objectives
Strategic Purpose
• To furnish valid and useful information for making administrative decisions about employees
Administrative Purpose
• To inform employees about how they are doing and about the organization's and the supervisor’s
expectations
Informational Purpose
• To allow managers to provide coaching to their employees
Developmental Purpose
• To provide information to be used in workplace planning and allocation of human resources
Organizational maintenance Purpose
• To collect useful information that can be used for various purposes (e.g., test development,
personnel decisions)
Documentation Purpose
.
11. Strategic congruence Practicality Meaningfulness Specificity
Identification of effective
and ineffective
performance
Reliability and Validity Acceptability and fairness Inclusiveness
Openness Correctability Standardization Ethicality
Characteristics of an Performance Management Systems
12. Elements of Effective Performance Management
Goal setting
Transparent communicat
Employee development
Honest and regular feedback
and reviews
Employee recognition Collaboration
13. Objectives and
Key Results
system
Pulse surveys
feedback
system
Peer-to-peer
feedback
system
Meet Our
Team
Fluid
performance
management
system
Examples of performance management
Everyday
Performance
Management
system.
Performance Planning: Performance planning is the first crucial component of any performance management process which forms the basis of performance appraisals. Performance planning is jointly done by the appraisee and also the reviewee in the beginning of a performance session. During this period, the employees decide upon the targets and the key performance areas which can be performed over a year within the performance budget., which is finalized after a mutual agreement between the reporting officer and the employee.
Performance Appraisal and Reviewing: The appraisals are normally performed twice in a year in an organization in the form of mid reviews and annual reviews which is held in the end of the financial year. In this process, the appraisee first offers the self filled up ratings in the self appraisal form and also describes his/her achievements over a period of time in quantifiable terms. After the self appraisal, the final ratings are provided by the appraiser for the quantifiable and measurable achievements of the employee being appraised. The entire process of review seeks an active participation of both the employee and the appraiser for analyzing the causes of loopholes in the performance and how it can be overcome. This has been discussed in the performance feedback section.
Feedback on the Performance followed by personal counseling and performance facilitation:Feedback and counseling is given a lot of importance in the performance management process. This is the stage in which the employee acquires awareness from the appraiser about the areas of improvements and also information on whether the employee is contributing the expected levels of performance or not. The employee receives an open and a very transparent feedback and along with this the training and development needs of the employee is also identified. The appraiser adopts all the possible steps to ensure that the employee meets the expected outcomes for an organization through effective personal counseling and guidance, mentoring and representing the employee in training programmes which develop the competencies and improve the overall productivity.
Rewarding good performance: This is a very vital component as it will determine the work motivation of an employee. During this stage, an employee is publicly recognized for good performance and is rewarded. This stage is very sensitive for an employee as this may have a direct influence on the self esteem and achievement orientation. Any contributions duly recognized by an organization helps an employee in coping up with the failures successfully and satisfies the need for affection.
Performance Improvement Plans: In this stage, fresh set of goals are established for an employee and new deadline is provided for accomplishing those objectives. The employee is clearly communicated about the areas in which the employee is expected to improve and a stipulated deadline is also assigned within which the employee must show this improvement. This plan is jointly developed by the appraisee and the appraiser and is mutually approved.
Potential Appraisal: Potential appraisal forms a basis for both lateral and vertical movement of employees. By implementing competency mapping and various assessment techniques, potential appraisal is performed. Potential appraisal provides crucial inputs for succession planning and job rotation.