PERFORMANCE MANAGEMENT SYSTEM

Performance Management is a series of activities designed to ensure that the organization gets the performance it needs from its employees. An effective performance management system should do the following: Make clear what the organization expects Provide performance information to employees Identify areas of success and needed development Document performance for personal records

COMPONENTS OF PERFORMANCE MANAGEMENT

Developing and understanding corporate strategy

Identifying performance expectations

Conducting performance appraisal

Providing performance direction

Assessing job performance

Encouraging employee participation

Performance management is a dialogue-based joint process that involves a continuous review. In this, the focus is on values and behaviors and is less linked to pay. It aims at looking forward at what needs to be done to develop people to improve performance.

DIFFERENT PERFORMANCE MANAGEMENT APPROACHES 1) 2) 3) 4) 5) Comparative Approach Attribute Approach Behavioral Approach Results Approach Quality Approach

1) COMPARATIVE APPROACH This requires the rater to compare an individuals performance with that of others. Uses overall assessment of an individuals performance. Develop some ranking of the individuals within the group. Three techniques are: A) RANKING B) FORCED DISTRIBUTION C) PAIRED COMPARISON This approach is effective in differentiating employee performance. It is easy to develop and use. Common failure to be linked to the strategic goal of an organization. It is subjective,ie;depends on raters. It lacks specificity for feedback. 2) ATTRIBUTE APPROACH Focuses on extent to which individuals have certain attributes. It defines a set of traits for evaluation like initiative,leadership and competitiveness. A) GRAPHIC RATING SCALE B) MIXED STANDARD SCALES C) EVALUATION 3) BEHAVIOURAL APPROACH Attempts to define the behavior an employee must exhibit to be effective in the job. Behaviors are defined and managers assess the extent to which employees exhibit them. A) CRITICAL INCIDENTS B) BEHAVIOURALY ANCHORED RATING SCALE(BARS) C) BEHAVIOURAL OBESERVATION SCALE(BOS) D) ORGANISATIONAL BEHAVIOURAL MODIFICATION(OBM) E) ASSESSMENT CENTRES 4) RESULTS APPROACH Focuses on managing the objective, measurable results of a job or work group. Results are the closest indicator of ones contribution to organizational effectiveness. A) MANAGEMENT BY OBJECTIVES B) PRODCUTIVITY MEASUREMENT AND EVALUATION SYSTEM(ProMES) C) EVALUATION 5) QUALITY APPROACH

Based on the fundamental characteristic, ie; customer orientation and prevention approach to errors. Its goal is customer satisfaction. Relies primarily on combination of attributes and results approach. Adopts a system oriented focus rather than an individual employee performance.

FROM THE POINT OF VIEW OF THE CASE

Alkesh Nair, even though an average programmer he always managed to finish his tasks within stipulated deadlines. Plus, he had worked on some of the most challenging projects during his tenure and had earned a good reputation for himself. He was of a friendly countenance and was quick to establish rapport and had good working relationship with colleagues at his workplace. Radhika Sen, an above average programmer. Good looking, smart and highly ambitious. Quick in making friends. But didnt enjoy closeness with managers.If she completed her work before Alkesh,she read e-novels. Never stayed back to complete some crucial piece of work. Reason stated was would miss dinner at hostel,if she became late. Rashmi, well experienced. Team received appreciation from the client team on many occasions. Model team because completed tasks much before deadlines and with minimum defects.But had bias for Alkesh because he was from Kerala. Latha, would send only programmed mail of appreciation and she never visists the team personally. Rishav Ghosh, star performer. Known for his coding skills and had single handedly led projects to completion. Had a passion for work which got him rewards on numerous occasions. But had soft corner for Radhika. Tried to help her by suggesting to go directly to Project Manager,Rangaswamy,which was a breach of protocol. And wasnt much of a team player(according to Alkesh) as he was pouring oil to a flame.

1) WHAT KIND OF PERFORMANCE MANAGEMENT SYSTEM WOULD YOU APPLY?

(1) The approach I would chose would be QUALITY APPROACH as it is a mix of ATTRIBUTE AND RESULT APPROACH. Where Attribute Approach: Focuses on extent to which individuals have certain attributes. It defines a set of traits for evaluation like initiative,leadership and competitiveness. And from the point of view of Result Approach: Focuses on managing the objective, measurable results of a job or work group. Results are the closest indicator of ones contribution to organizational effectiveness.

2) WHAT TOOLS DO YOU APPLY?

(2) The tool I would use would be : A) Process flow analysis

B) C) D) E) F)

Cause and effect diagram Pareto chart Control chart Histograms Scattergrams