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Performance Management

Performance management is a continuous process where employees and management collaborate to plan, monitor, and review objectives and career goals. It aims to improve employee performance, productivity, engagement, and retention. The process involves setting expectations, providing feedback, coaching, and aligning employee performance with organizational objectives. It is focused on future results rather than past accomplishments alone. Key stages include planning, execution, assessment, and review.

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Liu Qiu Hua
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15 views

Performance Management

Performance management is a continuous process where employees and management collaborate to plan, monitor, and review objectives and career goals. It aims to improve employee performance, productivity, engagement, and retention. The process involves setting expectations, providing feedback, coaching, and aligning employee performance with organizational objectives. It is focused on future results rather than past accomplishments alone. Key stages include planning, execution, assessment, and review.

Uploaded by

Liu Qiu Hua
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Performance Management

- Is an continuing and evolving process that is collaborative, communication -based where employees
and management work together to plan, monitor, and review the employees and management work
together to plan, monitor and review the employee’s objectives, long term goals, career opportunities
that can lead to comprehensive contribution to the company.

Performance Management Process

Identify short and long Obtain insights into


Improve employee
term goals counter-productive
performance and
activities
productivity

Set clear performance


expectations Align employee
performance with thw
Recognize training and
organization’s
development needs
objectives
Provide real-time
feedback and constant
coaching Transform the
Increase employee workforce into a
engagement and strategic business
retention advantage

PERFORMANCE MANAGEMENT vs. PERFORMANCE APPRAISAL

Performance Management Performance Appraisal


A process broader in perspective, Periodic Event
continuous and evolving
Focused on future results Focused on Past accomplishments
Facilities and empowers Rates and gives feedback
Strategies goals A component of PM

HR Role

1. Participate in strategic planning


2. Conduct Job analysis
3. Design appraisal system
4. Train and support managers
5. Monitor the process and ensure documents keeping
6. Provide employee due process
7. Ensure integrity of the system.
Performance Management Competencies
1. Communication
2. Coaching
3. Giving feedback
4. Empathy
5. Teamwork

Performance Management stages


1. Pre-requisites
Includes: Strategic planning , Planning, work schedules, tasks and Job analysis.

2. Performance planning - employees must have thorough knowledge of the performance


management system. Meeting between employee and manager. Set measurement standards
such as > Results (KPI scorecard) > Behavior (Values Rubrics) > Development plans.

3. Performance execution : Shared responsibility > Employee’s major responsibility: Commitment


to established goals, Communication and update with immediate heads.
> Departmental support responsibility: Feedback, coaching and reinforcement. Resource
support, Accurate observation and documentation.

4. Performance assessment & appraisal - a process which a predefined standard of factors such
as work knowledge, work performance, work attitude , leadership quality , team player behavior,
consistency, decision making abilities and skills is created and then actual performance as well as
personality of employee is compared with these expected standard by the organization.

Who should appraise?


> Supervisors
> Peers and team members
> Subordinates
> 360 degrees feedback

What about self appraisal? Why involve the employee himself?

- Employees possess relevant and unique insight int the job performance that may not be
observable by others. (Known-Self)
- Makes them more confident in the fairness of the process
- Participation gives employees ownership of the process and a stake in the system
- Generates an atmosphere of cooperation and employee support that may reduce tension
for all involved.

Objectives:
- To determine the strengths and weakness of the employees and helps to place right person at right
job.
- Provides access to the potential in the person for future growth and development
-Guides in determining the training needs of the employees.
- Influences the working habits of the employees and makes them goal-oriented

5. Performance review- this stage lets subordinate and superior exchange performance
feedbacks and review performance against given targets or goals to individual.
The involvement and exchange of dialogue are equally essential between employees and his/her
immediate head.

They discuss about the development plans, trainings to improve skills and knowledge, next year
goals and targets and expectations of employee and manager both.

Performance Review:

1. Explain the purpose of the interview


2. Discuss self-appraisal
3. Share ratings and explain rationale
4. Discuss development plans
5. Rewards discussion (if appropriate).
6. Self follow up meeting
7. Employee signature.

Problems and Concerns on Performance appraisal:

1. Appraiser discomfort
2. Strictness/ leniency
3. Bias an lack of objectivity
4. Manipulating the evaluation
5. Halo/ Horns effect
6. Central tendency error
7. Recent behavior
8. Supervisor unable to observe behavior.

Methods on evaluating Performance appraisal:

1. Graphic rating scale


2. Ranking method
3. Forced distribution method
4. Critical incident method
5. Essay method
6. BARS- behaviorally anchored rating scale
7. MBO - Management by Objectives
8. Balanced Scorecard, KPIs.

HR Part in the Balance Score card


Return of Capital Employed
FINANCIAL (Acctg Dept)
Customer Loyalty (Mktg Dept)
(Acctg Dept)
CUSTOMER
On-Time Delivery (Logistics)
(Acctg Dept)
INTERNAL/BUSINESS PROCESS
Process Quality Process Cycle Time
(Acctg Dept) (Acctg Dept)
LEARNING & GROWTH

Employee Skills
(Acctg Dept)
Coaching Vs Counseling

Coaching is used to increase performance when the employee is already performaing and needs
encouragement to improve performance.

Counseling is used to improve performance, when the employee has a problem with the
performance and needs correction to succeed.

When to do Counseling: >Waste of material


> Missing deadines
> Low productivity
> Pattern of accidents or errors
> Poor Judgement
> Unprofessional conduct
> Tardiness
> Absenteeism/ unscheduled absences
>Excessive social time
>Excessive personal phone calls

Steps in coaching for performance:

> Put the employee at ease


> Discover what the employee already knows
> Present information or demonstrate work methods
> Evaluate learning
> Provide feedback.Let the employee know if they have successfully learned what was
presented.
> Correct
> Periodically check
> Reward

Steps in Counselling for performance:


> Remind the employee what “good” looks like.
> Tell them what specific behavior you have seen or heard and how it missed the mark.
>Ask for the behavior you want
> Ask the employee what you can do to help boost performance.

6. Performance renewal and re-contracting

Purpose of Job analysis


1. Training needs development
2. Recruitment and selection procedures
3. Compensation Management
4. Performance Review

Process:
1. Organizational Analysis
2. Select Representative positions
3. Collect data
4. Review colletc data
5. Developing job description
6. Developing Job specification

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