MBA 09 HR 02 PERFORMANCE MANAGEMENT TOPICS 1.

INTRODUCTION TOPERFORMANCE MANAGEMENT An Overview of performance management system Dimensions of performance management Performance management process Organizational and Individual performance and impact of objectives

2. PERFORMANCE PLANNING AND ANALYSIS

Performance planning and its need Components of performance planning KPAs Performance analysis Objectives of performance analysis Process of performance analysis 3. PERFORMANCE REVIEW DISCUSSION AND PERFORMANCE RATINGS Objectives of PRD Process of performance Review and Discussion Performance rating and factors et!ods and errors Reducing rater"s bias Performance rating and administrative Decisions 4. IMPLEMENTING PERFORMANCE MANAGEMENTSYSTEMS AND APPRAISAL SYSTEMS Implementing process #actors affecting implementation Pitfalls in implementation Performance Appraisals et!ods of Appraising Appraisals and $R Decisions 5. REWARD SYSTEMS Introduction of reward systems Dimensions of reward systems Constraints in lin%ing rewards wit! performance Implications for managers and for organizations onetary and &on'monetary rewards

UNIT I
INTRODUCTION TO PERFORMANCE MANAGEMENT
De !"!#!$"%
Performance anagement may be defined as a planned and systematic approac! to managing t!e

performance of individuals ensuring t!eir personal development and contribution towards organizational goals( Performance management is defined as a data guided approac! to managing wor% be!avior &&D'"!e() '"* R$)e" +19,4THE CONCEPT OF PERFORMANCE MANAGEMENT Performance is understood as ac!ievement of t!e organization in relation wit! its set goals( It includes outcomes achieved, or accomplished t!roug! contribution of individuals or teams to t!e organization)s strategic goals( *!e term performance encompasses economic as well as be!avioral outcomes( +aramba! views performance more compre!ensively by encompassing bot! be!aviors and results( $e is of t!e view t!at be!aviors as ,outcomes in t!eir own rig!t)w!ic! ,can be judged apart from results)( Performance is an impact( *!e roles of any manage can be seen in t!ree parts. Being, Doing '"* Relating. +eing it is concerned wit! t!e competencies of t!e manage t!at are relevant to !is/!er performance( It is preparedness of t!e mind of t!e manager( Doing focuses on t!e manage activities t!at are variably effective at different levels in t!e organization. t!at affect performance of ot!er roles dependent on t!e manage output- and t!e organizational performance as a w!ole( As someone said- ,Ideas are funny little t!ings( *!ey won)t wor% unless you do()

Relating" emp!asizes t!e nature of relations!ips wit! members of t!e role networ%'vertical!orizontal or ot!erwise( Performance !as a lin%age wit! t!e individual potential and !ow best it is realized by t!e individual( 0it! regard to manage- !is/!er potential becomes t!e input to t!e productive process and performance is t!e output( M'"'.ee/) P$#e"#!'( is determined w!en a set of tas%s are assigned to !im( It is also related to performance standards set( T')0&1e('#e* '2#!3!#!e) refer to managee)s or supervisors involvement to ac!ieve t!e allocated tas% or meet e1pectations in t!e given tas% environment( Pe1 $14'"2e !) 56'# #6e 4'"'.ee/) '2#7'((8 '26!e3e. Performance in a role refers to t!e e1tent to w!ic! t!e managees ac!ieve t!e purpose for w!ic! t!e role is created( ,C!oice- not c!ance)- t!ey say- ,determines destiny)( *!e actual performance of a managee is a function of several forces- internals as well as e1ternal to t!e organization'some of c!oice- some of c!ance( ost organizations do not ta%e t!ese forces into account'eit!er systematically or

intuitively'w!ile building e1pectations from a managee( A managee in !er tas% environment could be subject to some of t!e influences and factors s!own in 21!ibit( F1'4e5$10 #$ U"*e1)#'"* R$(e Pe1 $14'"2e In t!is framewor%9 O1.'"!:'#!$"'( Re(e3'"# E"3!1$"4e"#9 R$(e P71;$)e $1 O<=e2#!3e9 S#'0e6$(*e1 E>;e2#'#!$")9 R$(e Te26"$($.8 '"* I";7# R$(e $1 Ve"*$1 C$"#1!<7#!$" are inputs to t!e managee)s performance( *!ese are substantially %nown- and are t!e factors and forces- w!ic! organizational e1pectations from t!e M'"'.ee Pe1 $14'"2e can reasonably be predicted( R$(e De)!."9 M'"'.ee P$#e"#!'(9 M'"'.e1!'( Le'*e1)6!;9 C$4;e#!". '"* C$(('<$1'#!". C$((e'.7e)9 '"* G1$7; C(!4'#e are t!roug!put factors t!at can be optimized by a manager to

en!ance t!e M'"'.ee Pe1 $14'"2e. *!ese determine w!et!er t!e organization)s performance e1pectations from a managee are realistic( As suc!- #61$7.6;7# '2#$1) are t!e 2$1e 2$"2e1") $ P M. It can be argued t!at R$(e De)!." '"* M'"'.ee P$#e"#!'( are- in fact- input factors( $owever- a manager can modify'en!ance or stretc!'t!ese factors by improving t!e fit between t!e managee)s capacities- resources and role re3uirements- PfM would assume t!ese as t!roug!put factors( Role Output or anagee Performance is t!e end'result't!e effect for w!ic! we wor%( *!is is t!e

variable t!at is predicted or planned( It is invariably observable and measurable( *!e be!avior of all organisms is goal'directed( As suc!- people performance is not only a se3uence of causes and effects4 it is a c!ain of sub'goals and actions- leading towards t!e ultimate goal( In fact- w!en a managee !as a goal- !e/s!e be!aves as if s!e is following some signposts t!at create a !ealt!y e1pectancy in !im/!er to reac! t!e goal( Role Purpose or Objective sets t!e boundary for t!e goal5s6( It is a reference point for S#$206$(*e1/) E>;e2#'#!$". anagee Potential corresponds to t!e role to w!ic! a managee is assigned and t!e inputs !e/s!e receives to fulfill t!e role purpose( It stretc!es or contracts depending upon t!e G1$7; C(!4'#e9 #6e <e6'3!$1 $ #6e C$4;e#!". '"* C$(('<$1'#!". C$((e'.7e)9 '"* #6e M'"'.e1!'( Le'*e1)6!;. T6e '2#7'( realization of a managee)s potential depends !eavily on. ? G1$7; '"* O1.'"!:'#!$"'( P71;$)e. ? G1$7; $1 O1.'"!:'#!$" C';'2!#!e) '"* Re)$712e). ? H74'" C(!4'#e !" #6e G1$7; $1 #6e O1.'"!:'#!$". ? @7'(!#8 $ U;&)#1e'4 $1 Ve"*$1 I";7#).

? Fee*<'20 $" Pe1 $14'"2e(

Role Design is fas!ioned by t!e organizing process( *!e sole purpose of organizing and designing a role is to provide a ve!icle for implementing performance plans and e1pectations( It determines t!e re3uisite competencies- %nowledge and s%ills( Role design predominantly determines tas%'related attributes needed by t!e managee( anagerial 7eaders!ip predominantly determines t!e be!avioral attributes needed by t!e managee( 7eaders!ip role of t!e manager and managerial style of t!e leader are also major determinants of t!e managee)s development and !is/!er job satisfaction( and group climate !ave considerable influence on eac! ot!er( G1$7; C(!4'#e ' *!e internal psyc!ological environment of t!e group'influences t!e be!aviorstyle and performance of t!e managee( It is also- in turn influenced by t!e be!avior and attitude of t!e managee( 8roup climate is after all- t!e collective outcome of t!e be!avior and attitudes of all t!e members of t!e group't!e managee and all !is/!er competing and collaborating colleagues- t!e manager or t!e leader( People in any group or organization are less an1ious about wor% if bot! .$'( 2('1!#8 '"* .$'( '.1ee4e"# are present( Considerable conflict arises w!en purposes are unclear or w!en people disagree on w!at t!e priorities s!ould be( 0it!out convergence on goals and priorities- groups or organizations cannot develop a climate t!at facilitates performance( anagerial leaders!ip

PERFORMANCE MANAGEMENT PROCESS OVERVIEW

I"#1$*72#!$" #$ #6e Pe1 $14'"2e M'"'.e4e"# P1$2e)) *!is !andboo% is an introduction to t!e Performance anagement Process 5P P6- providing

information to 9tate of O%la!oma employees- supervisors and ot!ers w!o !ave an interest in performance management( 0!ile supervisors may use t!is !andboo% as a reference guide to t!e PMP9 #6!) *$274e"# !) not !"#e"*e* #$ )#'"* '($"eA '(( )7;e13!)$1) 5!(( 1e2e!3e #1'!"!". '"* '**!#!$"'( 1e e1e"2e 4'#e1!'( $" #6e "e5 ;e1 $14'"2e 4'"'.e4e"# )8)#e4. T6e PMP !) *e)!."e* #$ <e ' 8e'1&1$7"* ;'1#"e1)6!; <e#5ee" e4;($8ee) '"* )7;e13!)$1) !" #6e ;('""!".9 2$'26!". '"* 1e3!e5!". $ =$< ;e1 $14'"2e. U"(!0e ;1e3!$7) )#'#e5!*e )8)#e4) $1 ;e1 $14'"2e ';;1'!)'(9 #6e PMP #'0e) !"#$ 2$")!*e1'#!$" "$# =7)# e4;($8ee)/ A22$7"#'<!(!#!e)9 <7# '()$ ' )e# $ !3e Be6'3!$1) #6'# !" (7e"2e #6e!1 ;e1 $14'"2e%

C7)#$4e1 Se13!2e O1!e"#'#!$"9 Te'45$109 P1$<(e4&S$(3!". I"!#!'#!3e9 Le'*e1)6!; '"* O<)e13!". W$10 H$71)BU)!". Le'3e. F$1 4'"8 )#'#e 5$10e1)9 #6e)e Be6'3!$1) 4'8 )ee4 '4!(!'19 ') #6e8 5e1e 26$)e" #$ 1e (e2# ;e1 $14'"2e '2#$1) #6'# 3'1!$7) '.e"2!e) 6'3e !"2(7*e* !" #6e!1 $5" e3'(7'#!$" )8)#e4) $1 8e'1). Pe1 $14'"2e 2$'26!"g !) 21!#!2'( #$ #6e ;1$2e)). E4;($8ee) '"* )7;e13!)$1) '1e e>;e2#e* #$ 6'3e $".$!". *!)27))!$") '<$7# #6e Be6'3!$1)9 )0!(() '"* '<!(!#!e) 1eC7!1e* #$ )722ee*. T6!) 6'"*<$$0 e>;('!") #6e 8e'1&1$7"* ;1$2e))9 1$4 #6e ;('") #6'# e4;($8ee) '"* )7;e13!)$1) 4'0e 1e.'1*!". A22$7"#'<!(!#!e) '"* Be6'3!$1)9 #$ #6e 2$4;(e#!$" $ #6e PMP $14 . Pe1 $14'"2e M'"'.e4e"# !) ' ;1$2e)) $1 e)#'<(!)6!". ' )6'1e* 7"*e1)#'"*!". '<$7# 56'# !) #$ <e '26!e3e* '"* 6$5 !# !) #$ <e '26!e3e*. I# !) '" ';;1$'26 #$ 4'"'.!". ;e$;(e #6'# !"21e')e) #6e ;1$<'<!(!#8 $ '26!e3!". )722e)).

PERFORMANCE MANAGEMENT PROCESS OVERVIEW W68 C6'".eD A review of O%la!oma"s classification and compensation system in :;;<';= included a revision of t!e state"s performance management- wit! t!e aim of moving into a system of rewarding e1cellent performance by state employees( *!e state !ired t!e H'8 G1$7; 's a consultant as part of t!e Classification/Compensation Reform Project( *!e consultant surveyed selected agency !eads- supervisors- and focus groups- composed of state employees and ot!er sta%e!olders- to get feedbac% on t!e way performance appraisals !ave been done in t!e past and !ow t!ey t!in% performance management s!ould be conducted under t!e new P P( T6e $(($5!". #'<(e )744'1!:!". #6e ee*<'20 !) *!3!*e* !"#$ $71 2'#e.$1!e)% C7(#71e9 P('""!".9 C$'26!". '"* Re3!e5. Fe'#71e) $ #6e PMP+Pe1 $14'"2e M'"'.e4e"# P1$2e))$ere is a loo% at t!e main features of t!e P P. >??Ye'1&1$7"* ;1$2e))( *!e P P involves feedbac% between t!e supervisor and employee t!roug!out t!e year- not just at t!e end of t!e year( A special emp!asis is placed on t!e supervisor"s coac!ing of t!e employee so t!at t!ey can fulfill t!e e1pectations set fort! at t!e beginning of t!e year( *!is !andboo% gives guidelines on !ow supervisors can encourage employees" development year'round( >??EN74<e1(e))F 1'#!".)( *!e P P is a @numberlessA system( On eac! Accountability- an employee will receive one of t!e following ratings % D$e) N$# Mee# S#'"*'1*)9 Nee*) I4;1$3e4e"#9 Mee#) S#'"*'1*) $1 E>2ee*) S#'"*'1*). *!is !andboo% will provide guidance on w!at eac! category means(

>??I"#1$*72#!$" $ Be6'3!$1)(

any agencies !ave developed t!eir own performance appraisal

systems and !ave rated employees on factors li%e customer service t!at affect t!eir performance( 0it! t!e P P- all employees !ave a c!ance to be rated on t!e following +e!aviors. C7)#$4e1 Se13!2e O1!e"#'#!$"9 Te'45$109 P1$<(e4&S$(3!". I"!#!'#!3e9 Le'*e1)6!; 5if applicable6- and O<)e13!". W$10 H$71)BU)!". Le'3e( *!e +e!aviors will be rated Does Not Meet Standards, Meets Standards or Exceeds Standards- e1cept for Observing 0or% $ours/Bsing 7eave- w!ic! won"t !ave an option for 21ceeds 9tandards( *!e ratings are e1plained in more detail later in t!e !andboo%( >??P'1#"e1)6!;( *!e P P encourages a partners!ip between t!e supervisor and employeefocusing on regular discussions about Accountabilities- performance e1pectations and development plans( *!e supervisor and employee begin t!e year wit! an e1tensive discussion of t!e Accountabilities and w!at is e1pected from t!e employee( +ot! t!e supervisor and employee !ave a responsibility to initiate conversations about performance t!roug!out t!e year( >??T1'!"!". $1 )7;e13!)$1)( All supervisors will be re3uired to go t!roug! a training program before t!ey do any performance appraisals wit! t!e P P( *!ey will be provided wit! additional training materials- resource guides and definitions of +e!aviors so t!ey can do a good job of assessing employees" performance and !elping t!em improve( 0!en supervisors receive t!eir own evaluation at t!e end of t!e year- a mandatory Accountability will be on Performance anagement- so supervisors !ave an incentive to follow t!roug! wit! t!eir commitment to coac! employees(

R$(e) $ S7;e13!)$1)9 E4;($8ee) '"* Re3!e5e1) !" #6e PMP 9everal people s!are t!e responsibility in t!e coac!ing- development and feedbac% involved in t!e P P( #ollowing are descriptions of t!e roles played by various people. S7;e13!)$1/) R$(e !" #6e PMP% P('""!".% >??21plain to t!e employee !ow t!ey !elp t!e agency provide services to t!e public and ot!er agencies( >??0or% wit! t!e employee to define Accountabilities and performance standards( understand t!e Accountabilities and e1pectations about t!eir wor%( >??21plain t!e five +e!aviors- w!at is e1pected from t!e employee and w!y(>??7et t!e employee %now t!ey are responsible for ta%ing an active role in managing and assessing t!eir performance t!roug!out t!e year( C$'26!".% >??Provide fre3uent informal coac!ing( Point out t!e good wor% t!at t!e employee is doing( $elp t!e employee w!ose performance is lagging to bring t!eir wor% up to par( >??Identify ways t!at t!e employee can develop and improve- and wor% wit! t!e 2mployee to create development plans( As% t!e employee for suggestions- so t!at t!ey are encouraged to ta%e an active role( >??Promptly communicate new opportunities and c!anges t!at affect t!e employee"s wor%( Identify observable actions t!at t!e employee s!ould ta%e so t!at your suggestions are concrete and can be implemented( >?? a%e informal notes 5per!aps on a calendar6 w!en t!e employee does a good job- follow t!roug! on development plans- or !ave problems doing so( *!ese notes will !elp t!e supervisor wit! t!e id'Cear Review and t!e completion of t!e P P form( a%e sure t!ey

>??Keep trac% of praise or complaints from customers regarding an employee"s wor%(

Re3!e5% >??Put toget!er all saved notes or documents about t!e employee"s performance and assess t!eir performance on Accountabilities and +e!aviors( >??As% t!e employee for feedbac% about !ow t!ey performed during t!e year( *!ey may remind t!e supervisor of particular instances of good performance or problems outside t!eir control t!at !urt t!eir ability to do t!eir job well( >??Complete P P form- t!en discuss ratings and comments wit! t!e employee(

Pe1 $14'"2e M'"'.e4e"# P1$2e)) O3e13!e5 E4;($8ee/) R$(e !" #6e PMP% P('""!".% >?? eet wit! your supervisor at t!e beginning of t!e P P year( Discuss your Accountabilities and !ow t!ey fit into t!e agency"s goals for successful operation( suggestions on !ow to improve t!e description of t!e Accountabilities( >??As% t!e supervisor 3uestions until it is clear w!at is e1pected from you on all Accountabilities and +e!aviors( >??*ell your supervisor !ow you view t!e Accountabilities and +e!aviors so t!at you can clear up any possible misunderstandings about w!at is e1pected( >??Discuss customers" e1pectations- t!e supervisor"s priorities- budget and anyt!ing else you can t!in% of t!at relates to getting t!e job done( C$'26!".% >??*a%e responsibility for your own continuous performance improvement and development( >?? a%e plans and follow t!roug! to meet t!e re3uirements of your Accountabilities and +e!aviors( a%e

>??Periodically t!roug!out t!e year- as% t!e supervisor for feedbac% on your performance( Consider t!e feedbac% you receive to be suggestions for improving performance- not personal criticisms( *ry to follow t!roug! on suggestions for improvement and development of new s%ills( >??*al% to t!e supervisor about your progress as well as any obstacles to improvement- so t!at t!e supervisor can !elp remove t!e barriers to good performance( >??0rite down w!en you do well on Accountabilities and +e!aviors so t!at you can ma%e sure your supervisor %nows about your accomplis!ments( >??Re3uest a brief meeting wit! your supervisor- if needed- to as% for direction or a refres!er discussion on Accountabilities and +e!aviors( >??Occasionally re'read t!e Accountabilities and +e!aviors t!at were discussed in t!e Planning meeting at t!e beginning of t!e year( Re3!e5% >?? onitor your performance by as%ing ot!ers to tell you !ow you"re doing and by %eeping notes on your progress( >??Prepare for t!e review discussion by collecting your notes on your performance( >??Participate in t!e review meeting by s!owing your supervisor any notes you"ve made about your accomplis!ments and by suggesting t!ings t!at mig!t !elp you during t!e ne1t P P year( Pe1 $14'"2e M'"'.e4e"# P1$2e)) O3e13!e5 Re3!e5e1/) R$(e !" #6e PMP% P('""!".% >??Read t!e P P form before and after t!e supervisor and employee !ave !ad t!eir Planning session( *al% to t!e supervisor about plans for t!e meeting- as well as c!ec%ing afterward on !ow t!e meeting went( >??C!ec% on w!et!er t!e Accountabilities include statements of performance standards '' t!at isstatements describing w!at it would ta%e to receive a rating of Meets Standards(

>??*al% to t!e supervisor and ma%e sure t!e e1pectations for t!e Accountabilities and +e!aviors were communicated clearly( Discuss any points of disagreement t!at may !ave arisen during t!e Planning session( C$'26!".% >??As% t!e supervisor periodically if informal discussions or coac!ing sessions !ave ta%en place( >??As% t!e supervisor !ow various employees are doing on t!e job( If t!e answer 9eems wea%you may need to encourage t!e supervisor to tal% to employees more fre3uently about t!eir performance( Re3!e5% >??*al% to t!e supervisor before and after t!e id'Cear Review( C!ec% in advance on

t!e %ind of feedbac% t!e supervisor plans to give( Afterward- find out !ow t!e meeting went( >??After t!e Planning meeting- t!e t!e P P form titled @Record of id'Cear Review- and Cear'2nd Review- sign t!e section of eetings/Discussions(A *!e same %inds of 3uestions you posed

to t!e supervisor after t!e Planning session s!ould be as%ed after eac! review session( >??7oo% over t!e fully completed form( Re'read !ow t!e supervisor and employee wrote t!e Accountabilities and +e!aviors- t!en loo% at t!e results and ratings( *al% to t!e supervisor about !ow well t!e process went and !ow it mig!t go better in t!e future( >?? a%e sure t!at t!e supervisor !as e1plained eac! rating wit! written comments in t!e results section( 50ritten results are re3uired for all ratings e1cept eets 9tandards(6

>??C!ec% for a given supervisor"s consistency in managing t!e performance of a number of employees( C!ec% for consistency between supervisors in t!e use of t!e P P( A given supervisor s!ould be consistent in t!e interpretation of t!e meaning of ratings and ot!er facets of t!e P P- and a number of supervisors wit! similar employees s!ould be consistent in t!eir understanding and use of t!e system(

>??Discuss wit! t!e supervisor w!et!er verbal or written feedbac% is being given to 2mployees( A supervisor w!o is not used to praising employees may need to be reminded of its importance(

DIMENSIONS O# PERFORMANCE MANAGEMENT

T6e GPI+Ge8 ;e1 $14'"2e I"*!2'#$1)F'4!(8 D!4e")!$" Anot!er important consideration in t!e development of KPIs is t!e selection of t!e appropriate measurement family to capture operational performance over time and t!en relate t!ese KPIs to internal business and e1ternal industry benc!mar%s( Alt!oug! t!e following list reflects common measurement families- different industries will !ave t!eir own specific business drivers and related measures( P1$*72#!3!#8% easures employee output 5units/ transactions/dollars6- t!e uptime levels and !ow

employees use t!eir time 5sales'to'assets ratio- dollar revenue from new customers- sales pipeline6( @7'(!#8% easures t!e ability to meet and/or e1ceed t!e re3uirements and e1pectations of t!e

customer 5customer complaints- percent returns- DP O '' defects per million opportunities6( P1$ !#'<!(!#8% easures t!e overall effectiveness of t!e management organization in generating

profits 5profit contribution by segment/customer- margin spreads6( T!4e(!"e)): easures t!e point in time 5day/wee%/ mont!6 w!en management and employee

tas%s are completed 5on'time delivery- percent of late orders6(

P1$2e)) E !2!e"28:

easures !ow effectively t!e management organization incorporates 3uality

control- 9i1 9igma and best practices to streamline operational processes 5yield percentageprocess uptime- capacity utilization6( C82(e T!4e: easures t!e duration of time 5!ours/days/mont!s6 re3uired by employees to

complete tas%s 5processing time- time to service customer6( Re)$712e U#!(!:'#!$"% easures !ow effectively t!e management organization leverages

e1isting business resources suc! as assets- bric%s and mortar- investments 5sales per total assetssales per c!annel- win rate6( C$)# S'3!".): easures !ow successfully t!e management organization ac!ieves economies of

scale and scope of wor% wit! its people- staff and practices to control operational and over!ead costs 5cost per unit- inventory turns- cost of goods6( G1$5#6: easures t!e ability of t!e management organization to maintain competitive

economic position in t!e growt! of t!e economy and industry 5mar%et s!are- customer ac3uisition/retention- account penetration6( I""$3'#!$"% easures t!e capability of t!e organization to develop new products- processes and

services to penetrate new mar%ets and customer segments 5new patents- new product rolloutsRDD spend6( Te26"$($.8% easures !ow effectively t!e I* organization develops- implements and maintains tec!nologies

information management infrastructure and applications 5I* capital spending- CR implemented- 0eb'enabled access6(

*!e perspectives and measurement families can now be combined to develop a KPI profile matri1 - w!ic! provides a construct for balancing t!e number and types of KPIs t!at are developed( *!e profile matri1 also ensures t!e proper mi1 of financial and non'financial measures ' typically a s!ortfall of most performance management implementations( BASIC PRINCIPLES OF EFFECTIVE P M Euality and effectiveness of Pf is a reality in organizations only w!en certain basic and

fundamental tenets/ principles or practices of management are followed( *!ese include. :( T1'");'1e"28 F decisions relating to performance improvement and measurement suc! as planning- wor% allocation- guidance and counseling and monitoring- performance review etc(s!ould be effectively communicated to t!e manages and ot!er members in t!e organization( G( E4;($8ee *e3e($;4e"# '"* e4;$5e14e"# F effective participation of employees/ managees 5individuals and teams6 in t!e decision F ma%ing process and treating t!em as partners in t!e enterprise( Recognizing employees/ managees of t!eir merit- talent and capabilitiesrewarding and giving more aut!ority and responsibility etc(- come under t!e umbrella t!is principle( H( V'(7e) F a fair treatment and ensuring due satisfaction to t!e sta%e!olders of t!e organizationempat!y and trust and treating people as !uman beings rat!er t!an as mere employees form t!e basic foundation- apart from ot!ers( I( C$".e"!'( 5$10 e"3!1$"4e"# F t!e management need to create a conducive and congenial wor% culture and climate t!at would !elp people to s!are t!eir e1perience %nowledge and information to fulfill t!e managees aspirations and ac!ieve organizational goals( *!e managees/ employees s!ould be well informed about t!e organizational mission- objectives- values and t!e framewor% for managing and developing individuals and teams for better performance(

J( E>#e1"'( e"3!1$"4e"# F effective and conte1tual management of e1ternal environment to overcome t!e obstacles and impediments in t!e way of effective managerial performance( FEATURES OR CHARACTERISTICS OF EFFECTIVE PM Pf is a comple1 concept t!at encompasses different dimensions of t!e organization and t!e

people( *!e mission- t!e object organization s!ould be well designed( Performance planningdevelopment and reward systems enable t!e managees to realize t!eir true potential in order to contribute for organizational growt! and development( *!e managees)performance and 3uality is a function of several prere3uisites t!at managers need to ta%e care of( *!e following constitute t!e prere3uisites /c!aracteristics to ensure effective practice of Pf . :. C('1!#8 $ $1.'"!:'#!$"'( .$'() F t!e managers need to clearly and precisely lay down t!e organizational goals- objectives and ensure t!at t!ese are well informed to t!e managees and ot!er employees and ma%e t!em to realize w!at t!e organization e1pects from t!em( *!e organizational goals need to be translated into individual- team and departmental/ divisional goals( G( E3'(7'#!$" F t!e individual- team- department/ divisional performance needs to be evaluated on continuous basis( *!e organization s!ould develop an evaluation system and process- w!ic! is designed and developed on scientific lines( H( C$$;e1'#!$" <7# "$# 2$"#1$( F t!e managers s!ould nurture t!e practice of getting wor% done t!roug! t!e system of obtaining managees)consensus rat!er t!an t!roug! control or coercion( I( Se( &4'"'.e4e"# #e'4) F t!e management need to encourage t!e individual and teams for self'management of t!eir performance *!is procedure creates in t!e manages a sense of

responsibility and develops a spirit to wor% wit! commitment and evaluate !is/!er strengt!s and wea%nesses from time to time and plan for reducing t!e performance gaps( J. Le'*e1)6!; *e3e($;4e"# F t!e managers need to identify suc! of t!e managees w!o !ave leaders!ip potential and apart from sincerity and !onesty to ensure better and effective two'way communication between t!e managers and t!e managees( K( S8)#e4 $ ee*<'20 F t!e organization must !ave a foolproof feedbac% system of managees/ individuals/ teams/ departments) performance( It s!ould be monitored continuously and generate feedbac% loops for better performance management( *!ere must be a system t!at would !elp to monitor and measure all performance against t!e set standards and t!e managees need to be informed of t!eir s!ortcomings( *!e evaluation system s!ould be made transparent so as to repose managee)s fait! in t!e system( SCOPE OF P M *!e Pf *!e Pf s!ould conform to broad organizational framewor%( It s!ould provide for

managers and managees s!ared e1periences- %nowledge and vision( It encompasses all formal and informal measures and procedures adopted by organizations to increase corporate- team and individual effectiveness( anagees/ employees s!ould be enabled continuously to develop !as got to be understood in totality of t!e organization but

%nowledge- s%ill and capabilities( Pf not in various parts( Pf

is designed and operated to ensure t!e interrelations!ip of eac! of t!ese

processes in t!e organization( Pf assumes t!at t!e managers and team members s!are accountability for performance by

jointly agreeing on common set of goals i(e(- w!at t!ey need to do and !ow t!ey need to do it( *!ey jointly implement t!e agreed plans and monitor outcomes(

Pf

is concerned wit! everyt!ing t!at people do at wor%( It deals wit! w!at people do 5t!eir

wor%6- !ow t!ey do THE PROCESS OF PM it 5t!eir be!avior6 and w!at t!ey do it 5t!eir result6( Pf data

generated by t!e appraising process is used primarily for deciding rewards( Including performance related pay( $owever- it is not t!e integral part of Pf *!e process of Performance process(

anagement is comprised of t!ree important parts 5:6 Planning onitoring anagee Performance and

anagee Performance and Development4 5G6

Development and 5H6 Annual 9toc% *a%ing( *!ese occur in a specified se3uence( Planning is made at t!e beginning of t!e year w!ile monitoring and mentoring is continued t!roug! out t!e year as t!e plans are e1ecuted( 9toc%ta%ing ta%es place at t!e end of t!e year( 2ac! one of t!ese p!ases re3uires certain concrete actions by t!e managers and t!e managee( +ot! t!ese parties 5manager and managee6 provide appropriate inputs by %eeping t!e w!ole process in perspective( *!e w!ole process of t!e performance management can be approac!ed in a different mode( Planning- review and stoc% ta%ing can !appen t!roug! out t!e year- more specifically at t!e time of periodic review during t!e monitoring and mentoring p!ase( As suc!- t!ese t!ree p!ases are dynamic and a continuously interact wit! one'anot!er( *!e plans are periodically reviewed and feasibility is tested t!e conte1t of c!anging events and influences t!at could not be ade3uately forcing( 9ince t!e process involves in bot! t!e managers and t!e managees it !as a participatory c!aracter( *!e following flow c!art e1!ibits performance management process in an organization O1.'"!:'#!$"'( M!))!$"9 G$'()9 S#1'#e.89 '"* O;e1'#!$"'( P('") R$(e&5!)e P('") '"* E>;e2#'#!$")

I"*!3!*7'( R$(e H !#) De)21!;#!$"9 I"*!2e) $1 M$"!#$1!". Pe1 $14'"2e9 Pe1 $14'"2e S#'"*'1*) M$"!#$1!". '"* Me"#$1!". A2#!3!#8 Fee*<'20 S#$20#'0!". THE PERFORMA !E MA A"EME T PRO!E## *!e c!art e1!ibits t!at individual roles and t!eir description- indices for monitoring performance( Performance standards naturally cascade from organizational mission- goals- strategy and operational plans( 9ince performance management aims to improve 3uality of coordination among people in t!e organization- role'wise performance plans and e1pectations must flow from bot!( Organization)s mission- strategy and operational plan- and individual managee)s role and !is/!er contribution to organizational process are cardinal inputs to performance plans( *!e performance plans of all t!e managee)s in t!e organization must finally add up to t!e organizational goals to be ac!ieved during t!e year( anagee)s performance and development plans are subjected to

monitoring and mentoring( 0it!out cogent plans- for tas% accomplis!ment- it is not possible to decide a benc!mar% to ac!ievement against set goals( direction from bot! development plan and re3uirements( entoring can also include briefing t!e managee before eac! training and development activity F bot! on t!e job and off t!e job( +riefing focuses on t!e managee learning agenda( Debriefing t!e managee crystallize !is/!er learning ac!ieved during t!e training( 9toc% ta%ing bot! periodical and annual attempts to continuously assess t!e e1tent of wor% as well as learning opportunity t!at !ave been optimally avail by t!e managee( Inputs to stoc%ta%ing entoring and development draws it

are provided by performance plans and monitoring and mentoring records( 9toc% ta%ing also provides several inputs to future performance plan( Review in tas% assignments- tas% systems and tools are also possible t!roug! stoc%ta%ing( An assessment of managee)s development needs of future tas%s and responsibilities is done more realistically to stoc%ta%ing( GEYS TO HIGH PERFORMANCE +uilding *rust 2ncouraging C!ange easuring w!at is important O1.'"!:'#!$"'( Pe1 $14'"2e 56'# !# !)D Performance is all of t!ese( It)s t!e end result of an activity( And w!et!er t!at activity is !ours of intense practice before a ORGANIIATIONAL PERFORMANCE concert or race or w!et!er it)s carrying out job responsibilities as efficiently and effectively as possible- performance is w!at results from t!at activity( anagers are concerned wit! organizational performanceLt!e accumulated end results of all t!e organization)s wor% processes and activities( It)s a comple1 but important concept- and managers need to understand t!e factors t!at contribute to !ig! organizational performance( After all- t!ey don)t want 5or intend6 to manage t!eir way to mediocre performance( *!ey want t!eir organizations- wor% units- or wor% groups to ac!ieve !ig! levels of performance- no matter w!at mission- strategies- or goals are being pursued( W68 !) Me')71!". O1.'"!:'#!$"'( Pe1 $14'"2e I4;$1#'"#D anagers measure and control organizational performance because it leads to better asset management- to an increased ability to provide customer value- and to improved measures of organizational %nowledge(

Me')71e) $ O1.'"!:'#!$"'( Pe1 $14'"2e *!ere are t!ree ways of measuring organizational performance( 8enerally applied measures are F :( Productivity G( Organizational 2ffectiveness- H( Organizational Ran%ing( Pe#e1 F. D1720e1 t!e well'%nown management guru was of t!e view t!at an organization)s employees need to see t!e connection between w!at t!ey do and t!e outcomes( $e said- M*!e focus of t!e organization must be on performanceN *!e spirit of organization is !ig! performance standards- for t!e group as well as for eac! individual( +ut before employees can see t!is connection and wor% toward ac!ieving !ig! performance- managers need to specify t!e performance outcomes t!at will be measured( *!e most fre3uently used organizational performance measures include organizational productivity- organizational effectiveness- and industry ran%ings( W6'# A1e T6e C$4;$"e"#) $ A Pe1 $14'"2e M'"'.e4e"# S8)#e4D any people mista%e ;e1 $14'"2e ';;1'!)'( for ;e1 $14'"2e 4'"'.e4e"#( Actuallyperformance management is a muc! bigger system- and is muc! more valuable to managers and companies 5and employees6 t!an performance appraisal( *!e essential components or parts of an effective performance management system include.

Pe1 $14'"2e P('""!". +!"2(7*e) e4;($8ee .$'( )e##!". B $<=e2#!3e )e##!".O".$!". Pe1 $14'"2e C$447"!2'#!$" D'#' G'#6e1!".9 O<)e13'#!$" '"* D$274e"#'#!$" Pe1 $14'"2e A;;1'!)'( Mee#!".) Pe1 $14'"2e D!'."$)!) '"* C$'26!". T6e R$(e $ Pe1 $14'"2e M'"'.e4e"# !" O1.'"!:'#!$")

Pe1 $14'"2e management is a 3uic%ly maturing business discipline( 7i%e its better %nown siblingsLsales and mar%eting- !uman resources- supply c!ain management- and accounting and financeL;e1 $14'"2e management !as a %ey 1$(e to play in improving t!e overall value of an organization( W'8"e A20e1)$" of *!e Data 0are!ouse Institute defines Pe1 $14'"2e anagement

') E' )e1!e) $ $1.'"!:'#!$"'( ;1$2e))e) '"* ';;(!2'#!$") *e)!."e* #$ $;#!4!:e #6e e>e27#!$" $ <7)!"e)) strateg$.A

I"*!3!*7'( '"* $1.'"!:'#!$"'( ;e1 $14'"2e

Derek Stockley !ig!lig!ts some of t!e %ey issues involving performance- bot! at t!e individual and organizational level( Pe1 $14'"2e !) #6e 7"*e1(8!". #6e4e $1 $1.'"!:'#!$") any companies and organizations embrace new concepts and ideas to !elp better manage day'to'day activities or business( 9ometimes people become so involved in t!e new process- t!ey forget t!e more important aspects- particularly t!e need to focus on benefits and outcomes( In t!e early days- t!e 3uality movement suffered greatly from t!e over' emp!asis on t!e format and style of 3uality manuals and ot!er documents( *!e focus became t!e documents t!emselves- rat!er t!an t!e processes t!at t!ey described( Organizations need to focus on t!e critical elements of performance( Alt!oug! a variety of different tools and met!ods e1ist 53uality-

balanced scorecard- si1 sigma6- t!e important point is ac!ieving t!e improvements and refinements e1pected( Improved benefits and value must be ac!ieved( Pe1 $14'"2e '# #6e !"*!3!*7'( $1 $1.'"!:'#!$"'( (e3e( Different organizations !ave different problems( I was recently involved in a discussion wit! t!ree managers from t!ree different organizations( 2ac! organization !ad its own performance need( In one case- performance problems were widespread( ultiple actions

at multiple levels were re3uired to address some basic and fundamental problems( At t!e ot!er e1treme- anot!er manager reported on a very !ealt!y organization wit! a strong performance culture( *!e organization climate was also positive and morale was !ig!( 2ven so- t!ere were still some areas w!ere improvement was possible( In t!is case- some individuals re3uired greater assistance( Euality processes were not ac!ieving t!e e1pected results because of personal issues( In summary- I recommend t!at you focus on t!e outcomes( Bse w!atever processes are suitable- but remember t!ey are tools ' a means to an end( 2ven successful companies can find areas for improvement( 9ometimes- large'scale c!ange is re3uired( In ot!er companies- specific

pressure points re3uire attention( *!is may involve individualsorganizational units or processes( If you !ave a comment you would li%e to ma%e- please send t!e comment to one of t!e email addresses listed below( (*!e major portals on t!is site are. Training Courses and Consulting - LearningPerformance Management and Website Optimizations(

Performance Management Performance management is a repeating process w!ic! involves monitoring performance of staff and giving t!em feed bac% so t!at performance can be improved(

performance of employees can be measured in different ways- for e1ample. you can measure by loo%ing at t!e number of unit produced- t!e 3uality of a product- timelines- cost effectivenesspersonal appearance- absenteeism and t!ere are many more ways( Performance is measured because employers need to monitor employees and ma%e sure t!at eac! goal is completed in t!e given timeif not monitored employees could become free roamers(

*!e benefit of measuring employee performance are t!at- employers will be able to %now if t!ey are meeting wit! customer re3uirements- w!ic! areas to improve on- if t!ere are problems wit! e1isting procedures- it will increase communication between staff and management- and most of all employees will be recognised for t!e wor% t!ey do and t!erefore motivate t!em more( (orau

[2010])( A;;1'!)'('#W$10% 0!en i used to wor% for +P my manager would call me out and give me feedbac% on my performances and would tell me to improve on areas t!at i wasnOt doing so well( w!en i managed to complete tas%s !e would apprise me by saying t!at i did a good job and would tell me t!at i would get promoted sooner if i continued li%e t!at( Pust t!ose words !ave motivated me to do better and more and as time went !e would %eep on saying t!e same t!ing but t!en i got to t!e point w!en i realized t!at i would never get promoted w!en my manager employed somone from anot!er store and t!erefore i dropped my performance level( t!e feedbac%s !owever- were very good but t!e apraisals was just to motivate me to increase performance( very nice tric% from t!e managerMe"#$1)% entors are e1perienced and s%illed people w!o are !ere to !elp people- by listening- giving advices on !ow to solve t!ingsor life problemsanyt!ing really( i was too naive(

a s%illed mentor would be one wit! very good listening s%ills- analytical s%ills- a very e1perienced person w!o do not tell t!e person w!at to do but !elps t!em and teac!es t!em !ow to do it( entor s!ould !ave a number of useful conections- and most of all s!ould be a person

w!o is approc!able wit! any sorts of 3ueries( (businessti eson!ine [2010])( In my view a very good mentor s!ould be able review your erformance and give you feedbac%( a mentor w!o doesnOt give feedbac% is not really a mentor( and t!is is w!ere t!e performance management s%ills comes in for a mentor( goodfeedbac%( entors need to be able to loo% analyse and give very

M84e"#$1% 0!en i first came to t!is country i was in year <( At t!at sc!ool i !ad a mentor as i didnOt %now t!e language aswell as t!e people and t!e place( $e spo%e frenc! w!ic! was a great advantage!e !elped me t!roug! my sc!ool days- !e %new a number of people t!at could !elp me to improve my englis! s%ills( $e also introduced me to %ids in t!e sc!ool so t!at i could ma%e freinds and not be on my own- !e !as t!aug!t me to be independent( $e would always listen to my problems and would give me very good advices on !ow to resolve t!em( +y !aving !ad a mentor i now feel more independent and %now !ow to solve most problems- i !ave learned to loo% at life and plan a!ead before life loo%s at me and draggs me down(

C$"2(7)!$"% Overall i believe t!at performance management is re3uired in all organisation as it is a crutial process t!at would !elp organisations to ac!ieve goals and detect problems if t!ere are any( entors wit!out performance management s%ills- in my point of view will not be good mentors(
o o o

Cosourcing & resourcing nterprise risk ser!ices "uman capital ad!isory ser!ices C#ange management and corporate culture Compensation and benefits $ecuti!e searc# & selection "% operations and tec#nology Organisation de!elopment & people performance and

 o o

Ot#er ser!ices Strategy & operations Tec#nology &inancial ad!isory Ta$ &oreign desks Organization & people performance and development Our main focus is to align !uman capital strategies wit! business strategies so as to address t!e people'related factors t!at affect an organization"s performance and success( 0e provide e1perience tested solutions in t!e areas of performance management and of competency'based development programs- including organizational design- succession planning and HKQR feedbac%( Our service offering includes.

Assessment and 5re'6design of competency models and performance management sc!emes- including t!eir integration wit! remuneration policies(

Pob design and job grading 0or%force planning and development- including talent identification and development programs and succession planning

&ew !ires integration and on'boarding Design and delivery of assessment centers- including psyc!ometric testing and role plays Design and administration of tailor made HKQR evaluation processes *eam effectiveness evaluation and improvement

Coac!ing and definition of development programs based on results of assessment centersHKQR feedbac% or ot!er specific needs F bot! at individual and team levels

9upport wit! training programs design and evaluation- including vendor selection

UNIT II PERFORMANCE PLANNING AND ANALYSIS MEANING OF PERFORMANCE PLANNING Pe1 $14'"2e ;('""!". !) #6e ;1$2e)) $ 2$447"!2'#!$" <e#5ee" ' 4'".e1 '"* '" e4;($8ee #6'# 1e)7(#) !" 47#7'( 7"*e1)#'"*!". $ 56'# #6e e4;($8ee )6$7(* <e *$!". *71!". #6e "e># ;e1!$* $ #!4e. De !"!#!$" $ Pe1 $14'"2e P('""!". Performance planning define e1pectations Ft!e results to be ac!ieved and t!e s%ills- %nowledge- e1pertise- and capabilities re3uired to attain t!ese results( Pe1 $14'"2e ;('""!". '"* !#) "ee* Identifying potential barriers to successful ac!ievement of jobs tas%s and t!e means of overcoming t!em Developing an understanding of t!e relative importance of job tas%s to wor% unit 5eg(- 9etting performance criteria for employees and documenting

t!em in a form

 Identifying t!e !elp re3uired by employees from t!eir managers to successfully carry out job tas%s( Division or department6objectives and goals

GRA)+Ge8 Re)7(# A1e') T6e GRA) are considered to be a parameter for performance is mutually agreed upon by bot! appraise and appraiser( *!e KRAs are t!e activities/project/s w!ic! are assigned to an employee time to time and are essentially 9 AR*( I# )6$7(* <e% S;e2! !2 & Re(e3'"#& Me')71'<(e & T!4e&<')e*& A26!e3'<(e& '''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' Ge8 Pe1 $14'"2e F'2#$1) $1 GPA are t!e factors t!at ma%e up an employees" job( KPAs are fi1ed and are t!ose w!ere t!e incumbent is doing t!e ma1imum value creation for organization(

T6e)e 5 Ge8 Pe1 $14'"2e F'2#$1) +I" Ge"e1'(- '1e J K$< 0"$5(e*.e @7'(!#8 $ $7#;7# @7'"#!#8 $ $7#;7# C$)#B#!4e 2$")2!$7)"e)) Te'4 W$10 G met!ods adopted to carry on KP# analysis are dependent on size of t!e team and are'*eam size more or e3ual to J PCR F Paired Comparison D Review ' 2ac! employee is compared wit! all !is team members individually on basis of KP#s( $e/ s!e is given : 5 if better t!an ot!er wit! w!om !e / s!e is compared6 or Q 5 vice'versa6( $is total individual score is obtained by adding all :"s obtained by !im in t!e s!eet( I"*!3!*7'( We!.6#'.e )2$1e L T$#'( I"*!3!*7'( )2$1e M We!.6#'.e .!3e" #$ e'26 '##1!<7#e I"*!3!*7'( A##1!<7#e S2$1e L We!.6#'.e )2$1e B N$. $ e4;($8ee) !" #6e *e;'1#4e"# C$44$" O1.'"!:'#!$"'( S2$1eBPC S2$1eB GPF S2$1e L S74 $ I"*!3!*7'( A##1!<7#e S2$1e) !" '(( 5 '##1!<7#e) *eam size less t!an J

90R F 9trengt! 0ea%ness D Review ' Individual Attribute 9core S *otal 9core attained in eac! point of t!at attribute/ I I"*!3!*7'( We!.6# '.e S2$1e L I"*!3!*7'( A##1!<7#e )2$1e M We!.6# '.e .!3e" #$ e'26 '##1!<7#e C$44$" O1.'"!:'#!$"'( S2$1eBSW S2$1eB GPF S2$1e L S74 $ I"*!3!*7'( We!.6# '.e S2$1e) !" '(( 5 '##1!<7#e)B5 *!ere can be ot!er factors based on relevant factors( W6'# !) Pe1 $14'"2e A"'(8)!)D A )e1!$7) *e !"!#!$" .$e) (!0e #6!)% Performance analysis involves gat!ering formal and informal data to !elp customers and sponsors define and ac!ieve t!eir goals( Performance analysis uncovers several perspectives on a problem or opportunity- determining any and all drivers towards or barriers to successful performance- and proposing a solution system based on w!at is discovered( A (!.6#e1 *e !"!#!$" !)% Performance analysis is t!e front end of t!e front end( ItOs w!at we do to figure out w!at to do( 9ome synonyms are planning- scoping- auditing- and diagnostics(

W6'# *$e) ' ;e1 $14'"2e '"'(8)# *$D $ereOs a list of some of t!e t!ings you analysis.? I"#e13!e5!". ' );$")$1 ? Re'*!". #6e '""7'( 1e;$1# ? C6'##!". '# (7"26 5!#6 ' .1$7; $ 27)#$4e1 )e13!2e 1e;1e)e"#'#!3e) ? Re'*!". #6e $1.'"!:'#!$"N) ;$(!28 $" 27)#$4e1 )e13!2e9 $27)!". a"be doing as part of a performance

;'1#!27('1(8 $" #6e 1e2$."!#!$" '"* !"2e"#!3e ');e2#) ? L!)#e"!". #$ '7*!$#';e) '))$2!'#e) 5!#6 27)#$4e1 )e13!2e 2$4;('!"#) ? Le'*!". ' $27) .1$7; 5!#6 )7;e13!)$1) ? I"#e13!e5!". )$4e 1'"*$4(8 *1'5" 1e;1e)e"#'#!3e) ? Re3!e5!". #6e 2'(( ($. ? Re'*!". '" '1#!2(e !" ' ;1$ e))!$"'( =$71"'( $" #6e )7<=e2# $

27)#$4e1 )e13!2e ;e1 ? C6'##!". '# #6e )7;e14'10e# 5!#6 )$4e<$*8 56$ !) ' 27)#$4e19 56$ 5'"#) #$ #e(( 8$7 '<$7# 6e1 e>;e1!e"2e 5!#6 27)#$4e1 )e13!2e

OBKECTIVES OF PERFORMANCE ANALYSIS :( Industry awareness G( 7eaders!ip s%ills H( Interpersonal relations!ip s%ills

I( *ec!nological awareness and understanding J( Problem'solving s%ills K( 9ystem t!in%ing and understanding <( Performance underta%ing =( Knowledge of interventions ;( +usiness understanding :Q( Organization understanding ::( &egotiation / Contacting s%ills :G( +uy'in/advocacy s%ills :H( Coping s%ills :I( Ability to see t!e M+ig Picture 1J( Consulting s%ills :K( Project management s%ills P1$2e)) O Pe1 $14'"2e A"'(8)!) Process Performance Analysis 5PPA6 provides a new way to assess processes( *!is met!odology is a revolutionary approac! w!ic! moves beyond t!e traditional control and capability analysis( PPA uses performance measures suc! as P#, P#$, and P# wit! analysis to assess performance of a process- determine sources of variation- assess process potential- and determine improvement opportunity( *!is analysis may be conducted w!ere control may not !ave been ac!ieved and w!ere a large number of process streams e1ist(

Pe1 $14'"2e A"'(8)!) $1 P1$2e)) I4;1$3e4e"# In ay of :;;=- a paper was presented by ic!ael T( Petrovic! at t!e American 9ociety for

Euality Congress in P!iladelp!ia- PA( *!e title of t!e paper was Perfor ance %na!"sis for Process & #ro'e ent( *!is paper introduced t!e concepts of PPA to t!e general public and was t!e first presentation of t!is material outside seminars taug!t by L7 #!. H W'11e" I"#e1"'#!$"'( W68 D$ ' Pe1 $14'"2e P('"D( Contributes to t!e success of t!e department/college/organization $elps employees understand t!e importance of t!eir job to t!e broader organizational objectives( +uilds t!e partners!ip between t!e supervisor D t!e employee

9ets t!e stage for successN

Identifies w!at t!e employee must do to be successful- inc!udin( de'e!o# ent acti'ities Identifies w!at supervisor must do to !elp employee be successful

9implifies performance evaluation Pe1 $14'"2e P('""!". !)O A( *!e first step in t!e overall process of @Performance anagementA

+( Part of t!e partners!ip wit! t!e employee C( *!e foundation for any performance management system D( An absolutely essential process 2( A process t!at s!ould be completed wit!in HQ daysU of !iring or ost recent e'a!uation ). %!! of t*e %bo'e Ans%er&F W6$ D$e) Pe1 $14'"2e P('""!". D Re3!e5e1 '"* S7;e13!)$1 #'0e #6e (e'* !" 21e'#!". #6e Performance Plan and bot! s!ould agree on t!e final plan before it is s!ared wit! t!e employee 2mployee w!o !as been in t!e job any lengt! of time s!ould be consulted and !ave input into t!e target W6'# A1e #6e S#e;) #$ C1e'#e ' Pe1 $14'"2e P('"D 9elect appropriate competencies for t!e position Identify %ey goals/responsibilities and define your e1pectations eet wit! t!e employee to get t!eir input 2stablis! career development plan Review t!e plan wit! t!e reviewer

eet wit! employee to review t!e final plan and obtain t!eir signature I) #6e Pe1 $14'"2e P('" C$4;(e#eD

$ave

you

collaborated

wit!

t!e

employee

and

agreed

t!at

t!e

8oals/ etrics/Competencies are reasonable and clearV $ave you addressed anyt!ing t!at mig!t get in t!e way of success or t!at is needed for employee growt! 5career development plan6V $ave you met wit! t!e Reviewer to ensure your employee"s goals are aligned wit! t!e overall unit goalsV A# #6e E"* $ #6e P('""!". P1$2e)) #6e E4;($8ee S6$7(* G"$5OOO Responsibilities and 8oals 21pected Completion Dates

0!at level of performance is e1pected

Criteria to be used to review and evaluate performance F metrics/success indicators

0!at development activities are e1pected

*!at t!e 9upervisor is invested in and willing to assist t!e employee to be successful

$ow individual job responsibilities and goals relate to t!e goals of t!e wor% unit and t!e university

 &ot written on t!e plan- but s!ould be discussed in t!e meeting wit! t!e employee( A# #6e E"* $ #6e P('""!". P1$2e)) #6e S7;e13!)$1 S6$7(* H'3eO An understanding of t!e employee"s day'to'day responsibilities A plan/approac! for !ow !e/s!e will observe and document employee"s wor% results

An understanding of w!at t!e supervisor needs to do to !elp t!e employee be successfulincluding support for employee career development Confidence t!at bot! supervisor and employee !ave a 9$AR2D understanding of t!e job and performance e1pectations

UNIT&III PERFORMANCE REVIEW DISCUSSION AND PERFORMANCE RATINGS

Re3!e5 De !"!#!$"% T6e !"'( )#'.e $ #6e PMP9 *71!". 56!26 #6e )7;e13!)$1 '"* e4;($8ee ($$0 <'20 '# #6e A22$7"#'<!(!#!e) '"* Be6'3!$1)9 #'(0 '<$7# 6$5 5e(( #6e e4;($8ee) *!* $" #6e =$<9 '"* 2$"2(7*e #6e e3'(7'#!$" 8e'1 5!#6 #6e 2$4;(e#!$" $ #6e PMP $14.

 Pe1 $14'"2e Re3!e5 D!)27))!$" P71;$)e !) #$ !4;1$3e #6e ;e1 $14'"2e $ #6e e4;($8ee F$14'( *!)27))!$" <e#5ee" ';;1'!)e1 '"* ';;1'!)ee $" #6e ('##e1/) *8'*!2 ;e1 $14'"2e $1 ' .!3e" ;e1!$* $ #!4e P71;$)e !) #$ !*e"#! 8 '2#$1) #6'# 6'3e ;$)!#!3e(8 '"* "e.'#!3e(8 ' e2#e* #6e!1 ;e1 $14'"2e S8)#e4'#!2 1e3!e5 $ ;e1 $14'"2e $ #6e ';;1'!)e1 '"* ';;1'!)e F$27) $" ';;1'!)e F$27)e) $"

';;1'!)e1/) $5" ;e1 $14'"2e #$ #6e e>#e"# !# 6') !4;'2#e* #6e ';;1'!)e +(e'*e1)6!; )#8(e)9 )7;;$1# .!3e"9 .7!*'"2e9 e#2 PRD & De !"!#!$" % PRD & De !"!#!$" T6e 6e(; ;1$3!*e* <8 ' 4'"'.e1 #$ 6!)

)7<$1*!"'#e) !" '"'(8:!". #6e!1 ;e1 $14'"2e '"* =$< <e6'3!$1 !" $1*e1 #$ !"21e')e #6e!1 e e2#!3e"e)) PRD J H$5D 8eneral climate of openness and mutuality $elpful and empat!etic attitude of manager Bnin!ibited participation by subordinates Dialogic relations!ip in goal setting and performance review #ocus on wor%'related be!avior only Discussion of conte1tual problems in ac!ieving/not'ac!ieving goals Avoidance of discussion of salary and ot!er rewards 5not to be used in understanding relations!ip between performance and reward6 ( PRD J W6e"D At least one time a year As an integral part of performance and appraisal systems Could be carried out more fre3uently by managers depending on. &eeds of eac! appraisee *ime available to t!e appraiser &ote. +y investing time in PRD- a anager is

li%ely to gain more time in t!e long run as a result of improved capabilities of subordinates PRD J W6$D Appraiser s!ould be senior to t!e appraisee F in competence- %nowledgepsyc!ological e1pertise- !ierarc!ical position

 PRD J T61ee 4'!" ;1$2e))e) % PRD J *!ree main processes Communication 7istening Responding 8iving feedbac% Influencing 2nable t!e appraisee to e1ercise greater autonomy Provide Wve reinforcement Identification $elping Concern and empat!y t!e AR !as for t!e A2 relations!ip Identification of developmental needs of t!e A2 PRD XCommunication F As%ing 3uestionsY . PRD XCommunication F As%ing 3uestionsY Euestions t!at do not !elp i6 Critical 3uestions 5w!ic! are used to criticize- reprimand- or doubt t!e A26 ii6 *esting 3uestions iii6 Resenting 3uestions iv6 7eading 3uestions Euestions t!at are !elpful *esting 3uestions 5as%ing for !elp6 Clarifying 3uestions Open 3uestions PRD PC$447"!2'#!$" J Re);$"*!". #$ C7e)#!$")Q % PRD PC$447"!2'#!$" J Re);$"*!". #$ C7e)#!$")Q PRD PC$447"!2'#!$" J Fee*<'20Q % PRD PC$447"!2'#!$" J Fee*<'20Q #eedbac% is effective if it is Descriptive and not evaluative #ocused on t!e be!avior of t!e person and not on t!e person !imself Data' based and specific and not based on impressions 9uggestive and not prescriptive Continuous &eed'based and solicited Intended to !elp #ocuses on modifiable be!avior C!ec%ed and verified 0ell'timed Contributes to mutuality and building of a relations!ip ( utuality of

PRD PC$447"!2'#!$" J Fee*<'20QDe e")!3e <e6'3!$71 % PRD PC$447"!2'#!$" J Fee*<'20QDefensive be!aviour An employee w!o receives feedbac% mig!t adopt t!e following defensive be!aviour Deny feedbac%4 not own up

responsibility Rationalization 5e1plain away feedbac% by giving reasons6 instead of self' analysis Projection 5e1press negative feelings to t!e person giving feedbac%6 instead of empat!y Euic% acceptance wit!out e1ploration 5%nowing more about t!e feedbac%6 as opposed to collecting more information to understand t!e be!aviour Cynicism 5strong s%epticism t!at t!ings cannot improve6 as opposed to positive critical attitude to accept certain feedbac% and 3uestion ot!ers PRD J SeC7e"#!'( ;1$2e)) % PRD J 9e3uential process *!ree p!ases Rapport building 21ploration Action planning PRD J SeC7e"#!'( ;1$2e)) +De#'!(e* )#e;)- % PRD F 9e3uential process 5Detailed steps6 Rapport building Attending 7istening Acceptance 21ploration 21ploring Problem Identification Diagnosis Action planning 9earc!ing Decision'ma%ing 9upporting PRD J W6e" "$# #$ 7)e OO % PRD J 0!en not to use NN If PRD is given wit!out being soug!t 5li%ely to be of limited value6 If employee !as serious emotional bloc%s in dealing wit! !is supervisor 5use problem' solving sessions6 If A2 does not understand or if !e !as wrong e1pectations from PRD 5!old a preliminary session before t!e actual PRD session6 Avoid arguments 5one argument will ma%e bot! defensive6 PRD J W6e" "$# #$ 7)e OO % PRD F 0!en not to use NN If PRD is given wit!out being soug!t 5li%ely to be of limited value6 If employee !as serious emotional bloc%s in dealing wit! !is supervisor 5use problem'solving sessions6 If A2 does not understand or if !e !as wrong e1pectations

from PRD 5!old a preliminary session before t!e actual PRD session6 Avoid arguments 5one argument will ma%e bot! defensive-. IMPORTANCE OF PRD F!1)# #6e)e *!)27))!$") '(($5 e4;($8ee) #$ !4;1$3e #6e!1 ;e1 $14'"2e #$ !*e"#! 8!". ;e1 $14'"2e ;1$<(e4) '"* )$(7#!$" ) $1 $3e12$4!". #6e4. Se2$"*9 #6e8 6e(; <7!(* ' .$$* 1e('#!$")6!; <e#5ee" )7;e13!)$1 '"* #6e e4;($8ee O<=e2#!3e) $ PRD *$2 P2R#OR A&C2 R2TI20 A&D D2T27OP 2&* PROC299 5PRD6 is a system of performance management t!at is a mec!anism to provide ongoing interaction- recognize good performance- and offer training and development opportunities( *!e PRD process was developed using input from representative groups of employees at all levels to assure t!at B Os needs and desires for a sound performance review process were met( *!e objectives of t!e Performance Review and Development process 5PRD6 are.

*o provide an effective- fair system of performance management for all non'faculty employees at B 4

*o strengt!en employeesO performance wea%nesses and develop career potential t!roug! training and development4

to support Bniversity and unit goals( C$4;$"e"#) $ PRD

*!ere are five major components of t!e PRD process- including at least t!ree re3uired meetings and ongoing feedbac% over t!e course of t!e year'long review cycle

T6e E>;e2#'#!$"&Se##!". Mee#!".

*!e supervisor and t!e employee discuss and document t!e

priority duties and most important aspects of t!e employeeOs job( *!ey also determine w!at level of performance would meet or e1ceed e1pectations( O".$!". Fee*<'20 *!e supervisor will provide informal feedbac% on employee performance

t!roug!out t!e review period( 21pectations s!ould be discussed and may be revised or restructured according to needs( Se( &A))e))4e"# *!e employee will conduct a 9elf'Assessment of !ow well !e or s!e !as

performed t!roug!out t!e review period( *!is self'appraisal is conducted twice a year- before t!e idway #eedbac% 9ession and before t!e final Performance Review( *!e information serves

as a discussion point during bot! appraisal sessions (M!*5'8 Fee*<'20 Se))!$" *!e supervisor and employee meet and discuss t!e employeeOs performance to date( *!e employee receives a Zmoc%Z evaluation and an informal midway performance rating( *!e supervisor and employee also discuss strengt!s and wea%nesses and a development plan to improve areas of concern( E"*&$ &C82(e Pe1 $14'"2e Re3!e5 *!e supervisor and employee meet formally to discuss

t!e employeeOs performance during t!e review period( 0it! employee input t!roug! t!e 9elf' Assessment- performance is rated and training and development plans are discussed( 0!en t!e final review is completed- t!e supervisor and employee begin t!e ne1t cycle by Performance rating

A procedure for determining t!e value for a factor w!ic! will adjust t!e measured time for an observed tas% performance to a tas% time t!at one would e1pect of a trained operator performing t!e tas%- utilizing t!e approved met!od and performing at normal pace under specified wor%place conditions( &ormal time 5ultimately subjectively based6 is t!e time t!at a trained wor%er re3uires to perform t!e specified tas% under defined wor%place conditions- employing t!e assumed p!ilosop!y of @a fair dayOs wor% for a fair dayOs pay(A Pe1 $14'"2e R'#!". *!e performance rating process is concerned wit! determining normal pace during t!e wor% portion of an average day and must- t!erefore- consider t!e fatigue recovery aspects of allowance 5nonwor%ing6 times occurring during t!e day( *!e following two e3uations relate factors in determining !ow muc! time a wor%er will be allowed per unit of output. If t!e observed time for a tas% is adjusted by t!e performance rating factor to determine normal time- and allowance time is added for nonwor% time- t!e standard time will represent t!e allowed time per unit of production(

*!e most commonly employed rating tec!ni3ue t!roug!out t!e !istory of stopwatc! time studyincluding t!e present- is referred to as pace rating( A properly trained employee of average s%ill is time'studied w!ile performing t!e approved tas% met!od under specified wor% conditions( Rating consists only of determining t!e relative pace 5speed6 of t!e operator in relation to t!e observerOs concept of w!at normal pace s!ould be for t!e observed tas%- including consideration

of e1pected allowances to be applied to t!e standard( See H74'"& '2#$1) e".!"ee1!".- Me#6$*) e".!"ee1!".- W$10 4e')71e4e"# onducting an 21pectation'9etting meeting for t!e upcoming review cycle( Pe1 $14'"2e A;;1'!)'( R'#!". F'2#$1) *!e following are samples of rating factors and e1ample standards ta%en from a variety of sources( 9ome may overlap- and some may need to be e1panded to include more descriptive and/or numerical measures( Please feel free to combine or modify t!em to fit your needs by cutting and pasting( GENERAL :( A*';#'<!(!#8 Efficienc" +it* +*ic* e #!o"ee +or$s under stress and res#onds to c*an(e.

Receptive to c!ange/new ideas 9!ows poise and/or courtesy in toug! situations Demonstrates ability to modify be!avioral style and approac! to goal

G( A))e1#!3e"e))BM$#!3'#!$" De(ree to +*ic* t*e e #!o"ee #ursues (oa!s +it* co acco #!is* ent.

it ent and ta$es #ride in

*a%es initiative eagerly Demonstrates orientation to ac!ieve results +e!avior reflects a desire to e1cel on t!e job

0or%s steadily and actively Demonstrates self'confidence and positive attitude towards self and ot!ers(

H( A##e"*'"2e ,*e extent to +*ic* t*e e #!o"ee can be de#ended u#on to be a'ai!ab!e for +or$ and to fu!fi!! #osition res#onsibi!ities.

Reports to wor% on time Communicates sc!edule c!anges promptly to supervisor aintains regular attendance

I( C$447"!2'#!$" ,*e extent to +*ic* t*e e #!o"ee effecti'e!" !istens, con'e"s and recei'es ideas, infor ation and direction.

9ee%s to clarify and confirm t!e accuracy of t!eir understanding of unfamiliar or vague terms and instructions

a%es oral and written communication clear and easy to understand Assesses and ta%es steps to improve ability to communicate 5written and verbal6 so ideas and consultations are conveyed wit! precision and efficiency

J( C1e'#!3!#8 Extent to +*ic* e #!o"ee (enerates +or$ab!e and inno'ati'e ideas, conce#ts and tec*ni-ues.

Attempts to simplify and/or improve procedures and tec!ni3ues Initiates new and creative ideas or procedures to en!ance t!e department or organization

7oo%s for new solutions to old problems

K( C7)#$4e1F$27) ,*e de(ree to +*ic* t*e e #!o"ee ta$es t*e initiati'e to custo er needs in a ti e!" and courteous anner.

eet interna! and externa!

21amines customer re3uests to properly identify and resolve customer concerns 9upports customer service efforts t!roug! program design- implementationrecovery and follow'up

<( C7)#$4e1 Se13!2e *!e degree to w!ic! t!e employee represents t!e university community in a positiveprofessional manner(

9erves customers in a manner t!at increases t!eir confidence and %nowledge to resolve t!eir own problems

Ac%nowledges s!ortcomings w!en appropriate Reaffirms commitment to professional service Bses a Z9ocraticZ style of assistance ' as%ing probing 3uestions t!at elicit t!e facts and !elp t!e customer t!roug! some of t!e decision'ma%ing process

Bses customer contacts as opportunities for education to increase customer independence

Responds to customer re3uests on contact date or wit!in GI !ours Advises in a manner consistent wit! t!e comple1ity and nature of t!e customerOs need

=( De;e"*'<!(!#8BI"!#!'#!3e ,*e extent to +*ic* an e #!o"ee effecti'e!" and ent*usiastica!!" acco #!is*es assi(n ents +it* ini a! su#er'ision.

Independently contributes ideas and projects Adapts to c!ange #ollows't!roug! on wor% assignments Demonstrates eagerness and positivism 9!ares ideas and suggestions *a%es on new responsibilities 0illing to assist co'wor%ers

;( K$<G"$5(e*.e ,*e de onstration of tec*nica!, ad inistrati'e, s#ecia!i.ed $no+!ed(e re-uired to #erfor ana(eria!, su#er'isor", or ot*er

t*e /ob. 0onsider t*e de(ree of /ob

$no+!ed(e re!ati'e to !en(t* of ti e in t*e current #osition.

Able to answer difficult 3uestions 2ffectively learns new s%ills aintains up'to'date job related information

:Q( K7*.4e"# %bi!it" to ana!".e #rob!e s or #rocedures, e'a!uate a!ternati'es, and se!ect best course of action.

Bses of logic and common sense in decision ma%ing

a%es appropriate and consistent decisions Obtains and evaluates pertinent information to determine source of and alternative solutions to problems

::( I"!#!'#!3e ,*e de(ree to +*ic* t*e e #!o"ee inde#endent!" #erfor s and acco #!is*es assi(n ents.

Re3uires minimal supervision 9ees and acts upon opportunities Independently contributes ideas and projects Promptly underta%es problems and devises solutions Acts independently wit!in establis!ed guidelines

:G( I"#e1;e1)$"'(Re('#!$") ,*e de(ree to +*ic* t*e e #!o"ee s*o+s understandin( and sensiti'it" to needs and #rob!e s of ot*ers.

Actions are intended to calm- diffuse- and be !elpful Interacts positively wit! a variety of people in different situations Accepts and ac%nowledges suggestions from ot!ers 0or%s cooperatively and effectively wit! ot!ers to ac!ieve unit goals

:H( M'"'.e4e"# S0!(()

Extent to +*ic* e #!o"ee de onstrates effecti'e resu!ts.

ana(e ent abi!ities and o'era!!

2ffectively sets goals and establis!es priorities Improves wor% met!ods Ac!ieves e1pected results Plans and administers budgeted funds Implements cost'saving procedures- e1pense control- etc(

:I( P('""!". H O1.'"!:!". ,*e extent to +*ic* t*e e #!o"ee #!ans, or(ani.es and i #!e ents tas$s or #ro(ra s.

Demonstrates effective use of time and facilities subject to t!eir control eets deadlines aintains a clear grasp of daily tas%s Prioritizes duties in a manner consistent wit! organizational objectives 2ffectively manages tas%s or program assignments including follow't!roug! and delegation

:J( P1$<(e4 S$(3!". H De2!)!$" M'0!". De(ree to +*ic* e #!o"ee de onstrates abi!it" to c!ear!" iso!ate, define and see$ so!utions to #rob!e areas.

2ffectively identifies D evaluates alternative solutions a%es decisions consistent wit! s%ills and e1perience

Recognizes decisions t!at !ave to be deferred until all pertinent facts are gat!ered and analyzed

#le1ible in modifying decisions

:K( P1$*72#!3!#8 De(ree to +*ic* t*e e #!o"ee #roduces t*e ex#ected -ua!it" and -uantit" of assi(n ents.

Attains conclusive measurable results aintains control and wor% pace Completes assignments on time and to specifications

:<( @7'(!#8 $ W$10 ,*e abi!it" to set *i(* standards for o+n #ersona! #erfor ance1 stri'e for -ua!it" +or$1 #ut fort* extra effort to ensure -ua!it" +or$.

Develops and implements new solutions- procedures and concepts Demonstrates accuracy- t!oroug!ness- and reliability 9!ows organization and completeness Pays attention to detail Consistently delivers w!at is re3uired w!en re3uired @7'"#!#8 $ W$10 ,*e 'o!u e of +or$ #roduced b" t*e e #!o"ee, a!on( +it* *is or *er s#eed, accurac" and consistenc" of out#ut.

Accomplis!es assigned wor% in an organized- timely manner Produces necessary results in spite of unforeseen c!anges

Alerts appropriate team member if deadlines need to be re'negotiated to accomplis! wor% wit! !ig!er priority

:=( Re)$712e 7("e)) 0onsider t*e de(ree to +*ic* e #!o"ee is a source of su##!" and su##ort to t*e de#art ent, custo ers, and2or t*e or(ani.ation as a +*o!e.

asters difficult situations in a timely and effective manner Answers 3uestions and deals wit! problems effectively and t!oroug!ly

:;( Re);$")!<!(!#8 ,*e de(ree to +*ic* t*e e #!o"ee de onstrates de#endabi!it" in +or$ #erfor ance.

Completes wor% in a timely- capable and reliable manner Ad!eres to instructions aintains regular attendance

GQ( S' e#8 De(ree to +*ic* e #!o"ee ad*eres to safet" and *ea!t* re(u!ations.

aintains and observes safety and !ealt! standards &otifies ot!ers w!en violating safety and !ealt! regulations

G:( S#1e)) T$(e1'"2e De(ree to +*ic* e #!o"ee3s #erfor ance de onstrates stabi!it" under ti e and2or inter#ersona! #ressure and o##osition.

Demonstrates composure and good judgment in stressful situations aintains appropriate response and outcomes during encounters and/or periods of !ig! levels of pressure

GG( T!4e M'"'.e4e"# ,*e abi!it" to ad*ere to one3s res#onsibi!ities in a ti e!" anner.

eets deadlines anages multiple tas%s wit! accuracy and efficiency

GH( W$10H'<!#) ,*e anner in +*ic* an e #!o"ee conducts *is or *erse!f in t*e +or$in(

en'iron ent.

Displays professionalism Demonstrates effective time management s%ills 9!ows positive attitude aintains regular attendance eets productivity standards

TEAM BASED FACTORS :( C$")e")7)B7!(*!". ,*e extent to +*ic* t*e e #!o"ee bui!ds and aintains +or$ re!ations*i#s and contacts

needed to effecti'e!" address #rob!e s and o##ortunities associated +it* t*eir #osition.

Actively resolves wor%place conflicts 0illingly underta%es assigned projects 9upports organizational goals and endeavors

G( Te'45$10 ,*e de(ree to +*ic* t*e e #!o"ee +or$s +e!! in a tea settin(.

Interacts and e1c!anges idea

Observes t!e abilities and ideas of fellow team members 0or%s fairly and attempts to s!are an e3ual wor%'load wit! ot!ers

H( W$10!". 5!#6 O#6e1)BC$$;e1'#!$" Extent to +*ic* e #!o"ee +or$s coo#erati'e!" +it* custo ers, co4+or$ers and t*e #ub!ic.

8ains confidence and trust of ot!ers Recognizes strengt!s and limitations of self and ot!ers 21!ibits appropriate sensitivity to ot!ersO feelings #ocuses on performance rat!er t!an personality in relating to ot!ers

SUPERVISORY FACTORS :( C$)# E e2#!3e"e)) Extent to +*ic* e #!o"ee see$s best use of ateria!s, e-ui# ent, and staff to axi i.e efficienc" and effecti'eness.

Bses effective materials to en!ance department and/or job performance 2stablis!es budget and/or functions wit!in t!e budget

G( De(e.'#!$" H S7;e13!)$18 S0!(() ,*e extent to +*ic* t*e e #!o"ee s*o+s t*e abi!it" to effecti'e!" aut*ori.e +or$ and su#er'ise subordinates.

Clearly defines responsibilities and aut!ority limits of subordinates a%es effective assignments to subordinates based upon demonstrated s%ills and %nowledge

otivates employees to t!in% and wor% independently

Recognizes individual capabilities and assigns wor% accordingly Counsels employees in bot! positive and negative circumstances Appraises performance and individual contributions

H( De3e($;4e"#$ S7<$1*!"'#e) 0onsider t*e e #!o"ee3s abi!it" to effecti'e!" e'a!uate s$i!!s, $no+!ed(e, a#titudes, interests and de'e!o# enta! needs bearin( on indi'idua! and (rou# +or$ #erfor ance.

Develops and implements or assures appropriate training or development plans and programs

Provides appropriate support for employee to reac! !is/!er potential and goals

I( Le'*e1)6!; 0onsider t*e e #!o"ee3s abi!it" to direct t*e o#erations, acti'it" and #erfor ance of ot*ers.

8ives direction wit!out conflict Creates environment t!at guides employees to accomplis! unit and individual goals

J( Pe1 $14'"2eA;;1'!)'() De(ree to +*ic* e #!o"ee #re#ares t*orou(* and ob/ecti'e annua! a##raisa!s.

Provides informal performance feedbac% on a regular basis Ac%nowledges good performance and discusses performance problems Prepares precise written annual evaluations

K( S#' De3e($;4e"# De(ree to +*ic* e #!o"ee #ro'ides o##ortunities to c*a!!en(e subordinate3s ca#abi!ities and de'e!o#s t*e $no+!ed(e and s$i!!s necessar" for career de'e!o# ent.

Identifies training programs to improve subordinateOs performance Defines and communicates standards of performance and assists employees in ac!ieving t!ese standards

2ncourages and supports staff participation in job related activities

<( S7;e13!)!". S#' Re('#!$") 0onsider t*e extent to +*ic* t*e e #!o"ee effecti'e!" o'ersees and faci!itates staff.

9!ows fairness and impartiality in interactions Demonstrates interest in employee welfare 2licits staff input w!ere feasible Responds to staff suggestions and complaints in a serious- sensitive- and timely manner

#acilitates staff adaptability Is %nowledgeable about and in compliance wit! t!e BniversityOs 23ual Opportunity and Affirmative Action policies and plans

Anticipates staff problems and ta%es preventive measures Resolves disputes among employees $andles corrective discipline and employee grievances

R'#!". E11$1) '"* B!')e) *!e supervisor needs to be aware of various ways t!at errors occur in rating performance( 9ome systematic biases t!at e1ist include. >??Ge"e1'( B!') E11$1) ' w!en raters are too severe in t!eir ratings on all employees 5negative bias6 or w!en raters are too easy in t!eir ratings of all employees 5positive bias6- and do not ta%e into account t!e individual employee"s actual job performance(

>??H'($ E e2# ' w!en raters let an assessment of an employee on one tas% influence t!eir overall rating of t!e employee( >??L$.!2'( R'#!". E11$1 ' w!en raters give an employee a !ig! score on one tas% because it is related to anot!er tas% t!at t!e employee performed well( >??C$"#1')# '"* S!4!('1!#8 E11$1) ' w!en raters judge ot!ers based on !ow t!ey perceive t!emselves- eit!er similar to t!e employee or different from t!e employee( >??Ce"#1'( Te"*e"28 E11$1) ' w!en raters are reluctant to ma%e e1treme judgments about ot!ers- avoiding t!e e1tremes on t!e rating scale- w!ic! results in a narrow range of scores( >??P1$>!4!#8 E11$1) ' w!en raters !ave a tendency to be influenced by !ow t!ey rated surrounding items( #or e1ample- if item [G was given a !ig! rating- t!en t!e rater may tend to carry over t!e favorable response to item [H- even if it is inappropriate( >??R'#!". I" ('#!$" ' w!en a supervisor"s ratings tend to increase over time wit!out justification( *!e supervisor s!ould ma%e sure t!e ratings are based on results- not t!e feeling t!at ratings s!ould increase( Alt!oug! it"s not a bias in t!e same way as t!e errors listed above- a big concern for many supervisors !as to do wit! t!eir ongoing relations!ip wit! t!e employee( It is not easy to tell an employee about t!eir ratings( 9ome supervisors will give better ratings t!an t!e employee actually deserves- for fear of !urting people"s feelings or causing problems in t!e wor%ing relations!ip( +e aware of your own feelings about t!e ratings- and be !onest( People usually %now t!eir strengt!s and wea%nesses on t!e job- and supervisors w!o !ave provided coac!ing and feedbac% t!roug!out t!e year must provide ratings t!at are consistent wit! t!e previous feedbac%( Improvement is possible w!en people are told !ow t!ey must improve(

9upervisors and reviewers s!ould review t!ese rating errors and biases on a regular basis( +eing aware of t!em is t!e best way to avoid t!em( Reviewers s!ould loo% for t!ese %inds of biases w!en t!ey are loo%ing at various supervisors" consistency in use of t!e P P(

UNIT IV
IMPLEMENTING PERFORMANCEMANAGEMENT SYSTEMS AND APPRAISAL SYSTEM
IMPLEMENTING PROCESS O3e13!e5 A performance management framewor% will ma%e it possible for 09Ps to address. >?desired outcomes and objectives4 >?t!e performance model4 >?establis!ing performance measures4 >?setting performance targets4 >?monitoring performance4 >?performance assessment and evaluation4 >?statutory performance reporting re3uirements4 and

>?performance improvement( *!is 8uide provides a 3uality frame wor% for performance management capable of consistent implementation by all service providers( At t!is stage it defines only t!e minimum number of generic performance measures for performance assessment and reporting( 9ervice providers s!ould review t!eir performance management re3uirements and use t!is 8uide to develop t!eir own asset management measures as appropriate( Fe'#71e) $ ' ;e1 $14'"2e 4'"'.e4e"# 1'4e5$10 *!e performance management framewor% identifies a number of %ey objectives for operational and anagerial responsibility wit!in t!e organization( *!ese are listed in Appendi1 +( anagement #ramewor% !as t!e following features.

*!e Performance

>?*!e measurement- evaluation and reporting of performance starts at t!e asset level( >?Asset performance is summarized to a w!ole'of'service level( >?All planning performance is assessed and reported( >?Asset program performance for investment- management and renewal or disposal is assessed and reported( >?Asset performance for investment and management'in'use is assessed- ta%ing into consideration. & P!ysical performance4 & #unctional performance4 and & #inancial performance( >?Performance of t!e asset management system is also assessed- and improvement strategies included in t!e strategic planning process(

>?An organization"s performance focus is on t!e improvement strategies developed and implemented by its individual services( F'2#$1) ' e2#!". !4;(e4e"#'#!$" *!ere are many factors listed by different aut!ors related to affecting factors on Implementation( 0e categorize and listed t!em as follows. :' Implementing was run slower t!an foreseen time G' Occurring une1pected problems H' ActivitiesO coordination was not rig!tly performed I' 9ome competitive jobs and crisis- diverted managers attention from implementation of strategies J' Implementing staff were not capable enoug! K' 9ubordinates were not trained effectively <' Bncontrollable e1ternal environment factors =' anagers could not be able to do leading and directing properly

;' Activities and %ey tas%s of implementation process were poorly defined :Q' *!ere was no information system for sufficient control of activities P!# '(() !" I4;(e4e"#'#!$" 1.C7(#71'( I))7e) 2.U)e1) A##!#7*e 3.E2$"$4!2 F'2#$1) 4.T1'!"!". 5.I"'*eC7'#e '3'!('<(e '2!(!#!e) R.De)!1e* $7#2$4e)

S.E)#'<(!)6!". Pe $14'"2e 4'"'.e4e"# ,.Se##!". Pe1 $14'"2e #'1.e# 9.M$"!#$1!". ;e1 $14'"2e 10.Pe1 $14'"2e E3'(7'#!$" 11.Pe1 $14'"2e !4;1$3e4e"#

Pe1 $14'"2e A;;1'!)'( Performance appraisal is t!e %ey ingredient of performance management( In a wor% group members- consciously or unconsciously- ma%e opinion about ot!ers( *!e opinion may be about t!eir 3uality- be!aviors- way of wor%ing etc- suc! an opinion becomes basis or interpersonal interaction( In t!e same way- superiors form some opinions about t!eir subordinates for determining many t!ings li%e salary increase- promotion- transfer- etc( in large organizations4 t!is process is formalized and ta%es t!e form of performance appraisal( Performance appraisal in some form !as e1isted in old days also( F$1 e>'4;(e- 0ei dynasty in C!ina introduced performance appraisal in w!ic! an Imperial Rater used to appraise t!e performance of members of t!e official family( In its present form- t!e &ew Cor% City Civil 9ervice adopted performance appraisal in :==H( 9ince t!en and especially after 0orld 0ar I- performance appraisal in formal way !as been adopted by most of t!e large organizations particularly in business field( In our country too- large organizations adopt formal appraisal met!od( De !"!#!$") $ Pe1 $14'"2e A;;1'!)'( We"*e(( F1e"269 E#6e $14'(9 )8)#e4'#!2 '))e))4e"# $ 6$5 5e(( e4;($8ee) '1e ;e1 $14!". #6e!1 =$<) !" 1e('#!$" #$ e)#'<(!)6e* )#'"*'1*)9 '"* #6e 2$447"!2'#!$" $ #6'# '))e))4e"# #$ e4;($8ee)

C$"2e;# $ ;e1 $14'"2e A;;1'!)'( \ Pe1 $14'"2e A;;1'!)'( !) ' 4e#6$* 56!26 !"3$(3e) T F F F Se##!". W$10 S#'"*'1*) A))e))!". A2#7'( Pe1 $14'"2e P1$3!*!". Fee*<'20 #$ #6e E4;($8ee)

Appraisal is t!e evaluation of wort!- 3uality or merit( In t!e organization conte1t- performance appraisal is a systematic evolution of personnel by superiors or ot!ers familiar wit! t!eir performance( Performance appraisal is also described as merit rating n w!ic! one individual is ran%ed as better or worse in comparison to ot!ers( *!e basic purpose in t!is merit rating is to ascertain an employee)s eligibility of promotion( $owever- performance appraisal is more compre!ensive term for suc! activities because its use e1tends beyond ascertaining eligibility of promotion( 9uc! activities may be training and development- salary increase- transfer- disc!argeetc- besides promotion( A formal definition of performance appraisal is as follows. Mit 5performance appraisal6 is t!e process of evaluating t!e performance and 3ualifications of t!e employees in terms of t!e re3uirements of t!e job for w!ic! !e is employed- for t!e purposes of administration including placement- selection for promotion- providing financial rewards and ot!er actions w!ic! re3uire differential treatment among t!e members of a group as distinguis!ed from actions affecting all members e3ually eac! !as defined performance appraisal as follows. MPerformance appraisal is t!e systematic evaluation of t!e individual wit! regard to !is or !er performance on t!e job and !is potential for development(

*!us- performance appraisal is a systematic and objective way of judging t!e relative wort! or ability of an employee in performing !is bob( It emp!asizes on two aspects4 systematic and objective( *!e appraisal is systematic w!en it

O<=e2#!3e) $ Pe1 $14'"2e A;;1'!)'( \ \ \ \ \ \ \ Fee*<'20 #$ E4;($8ee C$4;e")'#!$" De2!)!$") Re20$"e* $1 P1$4$#!$" B De4$#!$" BT1'") e1 I";7#) $1 Pe1)$"'( De3e($;4e"# Re*72e S7<=e2#!3!#8 C('1!#8 $1 #6e E4;($8ee I4;1$3e) S7;e13!)!$"

As discussed earlier- performance appraisal is underta%en for a variety of reasons( Review of organizational practices s!ows t!at organizations underta%e performance appraisal e1ercises to meet certain objectives w!ic! are in t!e form of salary increase- promotionidentifying training and development needs- providing feedbac% to employees and putting pressure on employees for better performance( :( S'('18 !"21e')e( Performance appraisal plays a role in ma%ing decision about salary increase( &ormally salary increase of an employee depends on !ow !e is performing !is job( *!ere is continuous evaluation of !is performance eit!er formally or informally( In a small organizationsince t!ere is a direct contact between t!e employee and t!e one w!o ma%es decisions about salary increase- performance appraisal can be an informal process( $owever- in a large organization w!ere suc! contact !ardly e1ists- formal performance appraisal !as to be

underta%en( *!is may disclose !ow well and employee is performing and !ow muc! !e s!ould be compensated by way of salary increase( 2. P1$4$#!$"( Performance appraisal plays significant role w!ere promotion is based on merit( ost of t!e organizations often use a combination of merit and seniority for promotionperformance appraisal discloses !ow an employee is wor%ing in !is present job and w!at !is strong H( T1'!"!". '"* De3e($;4e"#( Performance appraisal tries to identify t!e strengt!s and wea%nesses of an employee on !is present job( *!is information can be used for devising training and development programmes appropriate for overcoming wea%nesses of t!e employees( In factmany organizations use performance appraisal as means for identifying training needs of employees( I( Fee*<'20( Performance appraisal provides feedbac% to employees about t!eir performance( It tells t!em w!ere t!ey stand( A person wor%s better w!en !e %nows !ow !e is wor%ing4 !ow !is efforts are contributing to t!e ac!ievement of organizational objectives( *!is wor%s in two ways( #irst- t!e person gets feedbac% about !is performance and !e may try to overcome !is deficiencies w!ic! will lead to better performance( 9econd- w!en t!e person gets feedbac% about !is performance- !e can relate !is wor% to t!e organizational objectives( *!is provides !im satisfaction t!at !is wor% is meaningful( *!us- given t!e proper organizational climate- !e will try !is best to contribute ma1imum to t!e organization( J( P1e))71e $" E4;($8ee)( Performance appraisal puts a sort of pressure on employees for better performance( If t!e employees are conscious t!at t!ey are being appraised in respect of certain factors and t!eir future largely depends on suc! appraisal- t!ey tend to !ave positive and acceptable be!avior in t!is respect( *!us- appraisal can wor% automatically as control device and

wea% points are( In t!e lig!t of t!ese- it can be decided w!et!er !e can be promoted to t!e ne1t !ig!er position and w!at additional training will be necessary for !im( 9imilarly- performance appraisal can be used for transfer- demotion and disc!arge of an employee(

Pe1 $14'"2e A;;1'!)'( Me#6$*) anagers can c!oose from seven performance appraisal met!ods( *!e advantages and disadvantages of eac! of t!ese met!ods( W1!##e" E))'8). *!e 0ritten essay is a performance appraisal tec!ni3ue in w!ic! an evaluator writes out a description of an employee)s strengt!s and wea%nesses- past performance- and potential( *!e evaluator would also ma%e suggestions for improvement( C1!#!2'( I"2!*e"#). *!e use of critical incidents focuses t!e evaluator)s attention on t!ose critical or %ey be!aviors t!at separate effective from ineffective job performance( *!e appraiser writes down anecdotes t!at describe w!at t!e employee did t!at was especially effective or ineffective( *!e %ey !ere is t!at only specific be!aviours- not vaguely defined personality traits- are cited( G1';6!2 R'#!". S2'(e) One of t!e oldest and most performance appraisal met!ods is grap!ic rating scales( *!is met!od lists a set of performance factors suc! as 3uantity and 3uality of wor%- job %nowledgecooperation- loyalty- attendance- !onesty- and initiative( *!e evaluator t!en goes down t!e list and rates and employee on eac! factor using an incremental scale( *!e scales typically specify five points4 for instance- a factor suc! as job %nowledge mig!t be rated from : 5Mpoorly informed about wor% duties6 to J 5M!as complete mastery of all p!ases of t!e job6( Be6'3!$1'((8 A"26$1e* R'#!". S2'(e). One increasingly popular performance appraisal approac! is be!aviorally anc!ored rating scales 5+AR96( *!ese scales combine major elements from t!e critical incident and grap!ic rating scale

approac!es( *!e appraiser rates an employee according to items along a numerical scale- but t!e items are e1amples of actual be!avior on a job rat!er t!an general descriptions or taints( M7(#!&;e1)$" C$4;'1!)$"). ulti'person comparisons compare one individual)s performance wit! t!at of one or more ot!ers( It)s a relative- not an absolute- measuring device( *!e t!ree most popular approac!es to multi'person comparisons include group order ran%ing- individual to place employees into a

particular classification suc! as Mtop one'fift! or Msecond one'fift!( *!e individual ran%ing approac! re3uires t!e evaluator merely to list t!e employees in order from !ig!est to lowest( In t!e paired comparison approac!- eac! employee is compared wit! every ot!er employee in t!e comparison group and rated as eit!er t!e superior or wea%er member of t!e pair( After all paired comparisons are made4 eac! employee is assigned a summary ran%ing based on t!e number of superior scores !e or s!e received(

O<=e2#!3e)% +O is also a mec!anism for appraising performance( In fact- it)s t!e preferred met!od for assessing managers and professional employees( 0it! +O- employees are evaluated by !ow

well t!ey accomplis! a specific set of goals t!at !as been determined to be critical in t!e successful completion of t!eir jobs( 3R0 De.1ee Fee*<'20. HKQ degree feedbac% is a performance appraisal met!od t!at utilizes feedbac% from supervisorsemployees- and co'wor%ers( In ot!er words- t!is type of review utilizes information from t!e full circle of people wit! w!om t!e manager interacts( Companies suc! as Alcoa- Pitney +owesA*D*- DuPont- 7evi 9trauss- and BP9 are using t!is innovative approac!( Bsers of t!is

approac! caution t!at- alt!oug! it)s effective for career coac!ing and !elping a manager recognizes !is or !er strengt!s and wea%nesses- it)s not appropriate for determining paypromotions- or terminations( C$4;e")'#!$" '"* Be"e !#) 0ould you wor% IQ !ours a wee% or more for an organization for no pay and no benefitsV Alt!oug! we mig!t consider doing so for some Msocial cause organization- most of us e1pect to receive some compensation from our employer( An effective and appropriate compensation system can !elp attract and retain competent and talented individuals w!o can !elp t!e organization accomplis! its mission and goals( anagers must develop a compensation system t!at reflects t!e c!anging nature of wor% and t!e wor%place in order to %eep people motivated( Organizational compensation can include many different types of rewards and benefits suc! as base wages and salaries- wage and salary add'onsincentive payments- and ot!er benefits and services( As levels of s%ills tend to affect wor% efficiency and effectiveness- many organizations !ave implemented s%ill'based pay systems- w!ic! reward employees for t!e job s%ills and competencies t!ey can demonstrate( In a s%ill'based pay system- an employee)s job title doesn)t define !is or !er pay category4 s%ills do( #or e1ample- t!e !ig!est pay a mac!ine operator at Polaroid Corporation can earn is ]:I an !our( $owever- because t!e company !as a s%ill'based pay plan- mac!ine operators can earn up to a :Q percent premium if t!ey broaden t!eir s%ills and perform tas%s suc! as material accounting- e3uipment maintenance- and 3uality inspection( 9%ill' based pay systems seem to mes! nicely wit! t!e c!anging nature of jobs and today)s wor% environment( As one e1pert noted- M9lowly- but surely- we are becoming a s%ill'based society w!ere your mar%et value is tied to w!at you can do and %nowledge are w!at really count- it

doesn)t ma%e sense to treat people as job!olders( It ma%es sense to treat t!em as people wit! specific s%ills and to pay t!em for t!ese s%ills( O#6e1 !4;$1#'"# Pe1 $14'"2e A;;1'!)'( Me#6$*) \ B1$'*(8 $ #5$ #8;e)% 1. T1'*!#!$"'( Me#6$*) +TM2. M$*e1" Me#6$*) +MM1. T1'*!#!$"'( Me#6$*) +TM+a6(Bnstructured et!od et!od et!od

5b6(9traig!t Ran%ing 5C6(Paired Comparison 5d6(8rading et!od

5e6( Critical Incident

et!od

M$*e1" Me#6$*) +MM-. 5a6(+e!aviorally Anc!ored Rating 9cales 5+AR96 5b6( anagement +y Objectives 5 +O6

5c6( HKQ 8egree Appraisal :( TM %+'-. U")#172#71e* Me#6$* \ \ \ \ Appraiser describes !is impression Bnstructured manner $ig!ly subjective in nature Bseful at lower levels TM%+<-. S#1'!.6# R'"0!". Me#6$* \ Ran%ing of all t!e employees

\ \ \

9ame unit- same wor% profile employees Ran%ing from best to poorest $ig!ly subjective TM %+2-. P'!1e* C$4;'1!)$" Me#6$*

\ \ \

2mployees of a group are compared wit! one anot!er- one at a time &umber of comparisons S 5&5&':66/& 2ac! employee is compared wit! t!e ot!er TM%+*-. G1'*!". Me#6$*

\ \ \

Certain categories / grades are determined in advance 8rades are based on a variety of parameters Actual performance is compared wit! parameters to allot a grade TM+e-. C1!#!2'( I"2!*e"# Me#6$*

Performance rated on t!e basis of certain events t!at occurred during t!e performance of t!e job

\ \

Incidents represent t!e outstanding / poor be!aviour of t!e employee Bnder t!is tec!ni3ue t!e be!aviour of t!e employee in all significant incidents is recorded in a boo% and reviewed at t!e end

\ \

2.MM%+'-Be6'3!$1'((8 A"26$1e* R'#!". S2'(e) +BARSRating scales are created using t!e following approac! F F F F F Identify Critical Incidents 9elect Performance Dimensions Retranslate Incidents Assign 9cale Talues

Rate t!e employee on t!e scale

MM% +<-.M'"'.e4e"# B8 O<=e2#!3e) +MBO\ \ \ W6'# J H$5 ';;1$'26D 9ubstitutes good intentions wit! a process w!ere everyt!ing is put in blac% D w!ite Process F F F F F Define Role Define KRAs Indicators of 2ffectiveness 9et 9 AR* objectives onitor

MM% +2-.3R0 De.1ee A;;1'!)'( \ H levels of employees rate t!e performance F F F \ \ 9uperior Peers 9ubordinates

$olistic view Rules out t!e bias of any one person

W6$ 5!(( A;;1'!)eD \ \ \ \ \ Immediate 9upervisor 2mployee"s Peers 9elf Appraisal 2mployee"s 9ubordinates $ig!er 7evel anager

Personal Department 9pecialist

W6e" #$ A;;1'!)eD \ Periodic Appraisals F Euarterly- +i'annually- Cearly

W6'# #$ A;;1'!)eD \ \ \ \ 0!at do we want to evaluateV 21tracted from t!e Pob Analysis ostly Organizational 8oals w!ic! t!e employee was responsible for Can also !ave some 9ofter Aspects

P1$2e)) $ Pe1 $14'"2e A;;1'!)'( \ \ \ \ \ \ \ \ \ Pob Analysis Bnderstanding t!e deliverables Detailing t!e Pob Description 2stablis!ing 9tandards of Performance 9etting Performance 9tandards +enc!mar%s to easure Performance

Attainable by a &ormal 2mployee Clear D Bnderstandable Communicating Performance 9tandards F F F Appraiser vs( Appraisee +ot! s!ould be communicated t!e standards Communication s!ould be written

F F F \

easuring Actual Performance Objective 9ubjective easures. Euantitative D Terifiable easures. Personal 9tandards D Opinions

C$4;'1!". A2#7'( Pe1 $14'"2e 3). S#'"*'1*) F F F F F F F &ote deviations Could be bot! positive D negative Reasons for t!e deviation Analysis of 9trengt!s D 0ea%nesses Initiating Corrective Action Positive. Discussion D Improvement Plan &egative. 9colding D 0arning

E))e"#!'() $ ' G$$* A;;1'!)'( \ \ \ \ \ \ \ Reliability Pob Related 9tandardization *raining to Appraisers Open Communication 2mployee Access to Results Clear Objectives

P1$) H C$") $ Pe1 $14'"2e A;;1'!)'() Me1!#) '"* De4e1!#) $ Pe1 $14'"2e A;;1'!)'()

*!e traditional manager'employee performance appraisal can divert valuable supervisory assets 5time- attention and brain power6 from t!e daily company mission( As t!is is ta%ing place- t!e employees are busy reviewing t!e past year in t!eir minds- cataloging t!e projects t!ey did well and t!ose w!ere t!eir performance fell s!ort of managerial e1pectations( Instead of focusing on t!e 'ob at !and- employees and managers can be diverted by an annual occurrence- w!ic! may not provide t!e most accurate measure of performance( A;;1'!)'() '"* HR *e2!)!$")

Appraisal of employee performance is one of t!e most widely used !uman resource management practices of American employers( *!e overw!elming majority of employers- w!et!er privatepublic or not'for'profit- !ave some %ind of performance appraisal system( Among t!e reasons usually advanced for t!e widespread adoption of performance appraisal is t!at it may be used to.

U 2ncourage supervisors to observe subordinates more closely and carefully- and to do a better job of coac!ing4

otivate employees by providing t!em wit! feedbac% on t!eir performance4

U Provide information for improving employee wor% performance4

U Provide information for personnel decisions on pay- promotion- job assignments- traininglayoffs- etc(4

U Identify employees wit! t!e potential for advancement4

U 8ive employees t!e opportunity to e1press t!eir job e1pectations- ambitions- satisfactions and dissatisfactions4

U Provide documentation for possible legal c!allenges by disgruntled employees4

U $elp t!e enterprise in its !uman resource planning4 and

U Provide data for personnel researc!- e(g(- validating employment tests- evaluating training programs(

2ven t!oug! performance appraisal !as many actual or potential benefits- it !as nevert!eless been fre3uently criticized and found wanting( Dissatisfaction wit! performance appraisal !as been e1pressed by !uman resource management professionals- line managers responsible for appraisals- employees w!o are t!e subjects of appraisals- top managements of enterprises and judges rendering decisions in court cases involving appraisal of employee performance( 9ome critics !ave gone so far as to advocate doing away wit! employee appraisals altoget!er(

W68 6') ;e1 $14'"2e ';;1'!)'( <ee" )7<=e2#e* #$ )$ 4726 21!#!2!)4D *!e answer lies in t!e failure of appraisals to deliver w!at !as been e1pected of t!em( *!is failure may be attributable to two fundamental wea%nesses t!at !ave often underlined appraisals. faulty design of appraisal systems and failures in system administration(

We'0"e))e) !" )8)#e4 *e)!." Performance appraisal systems are sometimes criticized for measuring or evaluating t!e wrong job be!aviors or results- or for focusing on employeesO personal c!aracteristics rat!er t!an on job performance( In some cases- standards for evaluating employee performance are not related to t!e duties re3uired of job incumbents4 in ot!ers- t!e

standards reflect relatively minor- incidental- or unimportant job duties- not t!e critical ones( 2mployees are not li%ely to be receptive to a system t!at is supposed to evaluate !ow well t!ey are doing if- in fact- performance standards are not based on t!eir actual wor% or fail to emp!asize its really important aspects( Also- t!e standards may not %eep up wit! c!anges in jobs and employees may be appraised on t!e basis of standards t!at are no longer relevant( #urt!ermore- all too fre3uently standards tend to focus on t!e personOs personality or ot!er c!aracteristics- rat!er t!an on job performance(

UNIT&V
INTRODUCTION OF REWARD SYSTEM
It refers to an organization"s integrated policies- processes-and practices for rewarding its employees in accordance wit! t!eir contribution- s%ill and competence- and t!eir mar%et wort!( W6'#N) ' 1e5'1* )8)#e4D Re5'1*S8)#e4 5a6 *!e personal and social gratification derived from role'playing- a feature of Creative Agenda( 5b6 In'game c!anges- usually to a player'c!aracter- a feature of 9ystem and C!aracter( 5c6 As a subset to 5b6- improvement to one or more of t!e c!aracterOs Components( *ypically- t!e term refers to !ow 5a6 is facilitated by 5b6(

DIMENSIONS OF REWARD SYSTEM A(( $1.'"!:'#!$") )8)#e4) 6'3e ' 2$"#e"# $1 )#172#71'( D!4e")!$" ') 5e(( ') ' ;1$2e)) D!4e")!$") '"* C$1e =$< D!4e")!$") S#172#71'( D!4e")!$" *!e structural Dimensions of reward system refers to t!e formal mec!anisms- procedures and practices- for 21ample- t!e salary structure- t!e performance appraisal forms-etc( P1$2e)) D!4e")!$" Process Dimension refers to t!e communication and decision ma%ing parts of t!e system( C$1e K$< D!4e")!$") 9%ill Tariety *as% Identity *as% 9ignificance Autonomy oderate ris%s #eed bac%

C$")#1'!"#) !" L!"0!". 1e5'1*) 5!#6 Pe1 $14'"2e ost organizations are !eavily dependent upon t!eir !uman resources- not only for t!eir financial prosperity- but indeed- for t!eir very e1istence( #or a good many organizations- t!e cost associated wit! t!eir !uman resources comprises t!e largest item of annual e1penditure(

*!is is reward systems assume importance( Reward management !as attracted increased attention in recent years( *!e purpose of reward management as an element of t!e delivery system is to attract-retain-and motivate t!e employee in order to ac!ieve t!e organizational objectives(*!erefore-in order to compete successfully in t!is !ig!ly competitive world-organizations and employees !ave to continuously perform at !ig!er

levels(*!erefore -t!e manner in w!ic! performance is managed and t!e way t!e reward is structured Certainly influences t!e level of performance is managed and t!e way t!e reward is

structured certainly influences t!e level of performance -at bot! t!e individual and organizational level( Integrative performance management and reward system s!ould be put in place to ensure 3uic%er accession to a world'class status( T6e 4'=$1 2$")#1'!"#) !" (!"0!". 1e5'1*) 5!#6 ;e1 $14'"2e I"*!3!*7'( C$4;e#e"2e Pob Performance 5a6(Opportunity 5b6( otivation 'Cultural attributes '$ig!er Performance Performance F7in%ed Reward Pob 9atisfaction ''Continuous improvement and learning I4;(!2'#!$") $1 4'"'.e1) '"* $1 O1.'"!:'#!$"'( Re5'1* )8)#e4)

In today"s %nowledge'based competitive environment- organizations must mobilize and motivate t!eir employees latent entrepreneurial talent- encourage t!em to bring forward innovative ideasand t!en see t!em to t!roug! to launc!( A %ey element of t!is is t!e management of personal ris% and reward system( Organizations need people- and people need organizations( +y and large- t!e best people tend to go to organizations offering t!e best rewards( A useful dic!otomy in t!in%ing about t!e design of reward system is process and content(

Me'"!". $ "$"&monetary rewards( &on monetary rewards mean t!ose rewards of good performance w!ic! are not monetary in nature. F$1 e>'4;(e- a pat on t!e s!oulder or encouragement by seniors at wo% place(

P1$3!*!". 4$#!3'#!$" monetary and non monetary( onetary motivation means t!at t!e winner of a contest could receive a certain amount of money say :QQ dollars- euros- pounds- or :QQQ yen( &on monetary motivation could be anyt!ing else( *!e winner((( W6'# '1e *! e1e"2e <e#5ee" 4$"e#'18 1e5'1*) '"* "$"4$"e#'18 1e5'1*)D Distinguis! between monetary reward and non monetary rewardV $ow do monetary rewards affect sportsmanOs performancesV 0!at are t!e nonmonetary rewards for a fas!ion designerV onetary and nonmonetary costs of communicationV 0!at are t!e nonmonetary onetary rewards and non'monetary rewardsV 8ive t!e definition of onetary and nonmonetary incentiveV 0!at does a nonmonetary

rewards of a nurseV monetary rewardsV

reward meanV 0!at are t!e nonmonetary rewardsV 0!at is t!e nonmonetary systemV 0!at are t!e nonmonetary costsV 0!at are t!e monetary rewardsV 0!at is t!e monetary rewardV 0!at are monetary rewardsV 0!at is monetary rewardV M$"e#'18 ' relating to or involving money4 Zmonetary rewardsZ4 Z!e received t!an%s but no pecuniary compensation for !is servicesZ

A;;e"*!>

Performance Review Form Pe1)$"'( D'#' 2mployee ID Division/9ection

2mployee &ame Reviewer

Pob *itle Review Period '"* R'#!".) against 9elect one rating for performance or job

Pe1 $14'"2e G$'() '"* B $1 K$< Re)7(#) Re);$")!<!(!#!e) +E(e4e"#)A22$4;(!)64e"#) A performance goal is a 2valuate results statement of results to be mutually

establis!ed eac!

ac!ieved in a given review performance goals and job goal period( 8oals are project or responsibilities(

responsibility 5element6(

target'based( A job responsibility 5element6 is a re3uirement t!at must be met on an ongoing basis( Pob responsibilities define routine tas%s or essential functions( :( As an employee of #ermi labyou will demonstrate support for t!e 29D$ Program by staying re3uired current 29D$ wit! all

^^^ Outstanding ^^^ 21cellent ^^^ Commendable ^^^ #ully competent

training4

planning and e1ecuting all assigned wor% activities so as to minimize t!e ris% of injury or illness to yourself or ot!ers4 ma%ing improving suggestions t!e safety for or

^^^

eets minimal

e1pectations ^^^ Does not

meet e1pectations

environmental performance of t!e 7aboratory4 reporting any wor%'related injuries or near' misses promptly and to t!e protect #ermi to your ta%ing and lab w!ere

supervisor4 measures preserve

environment-

appropriate( G( 29D$ F Demonstrate visible leaders!ip in support of t!e 29D$ program by. a6 Conducting wal%t!roug!s of regular area of

^^^ Outstanding ^^^ 21cellent ^^^ Commendable ^^^ #ully competent ^^^ eets minimal

responsibility to interact wit!

subordinates and encourage safe wor%ing be!avior4 b6 Attending training subordinates possible4 c6 9oliciting 29D$ suggestions from employees and always responding4 G( Incorporating 29D$ into t!e agenda of every staff meeting( H( re3uired courses29D$ wit! w!erever

e1pectations ^^^ Does not

meet e1pectations

^^^ Outstanding ^^^ 21cellent ^^^ Commendable ^^^ #ully competent ^^^ eets minimal

e1pectations ^^^ Does not

meet e1pectations

I(

^^^ Outstanding ^^^ 21cellent ^^^ Commendable ^^^ #ully competent ^^^ eets minimal

e1pectations ^^^ J( Does not

meet e1pectations ^^^ Outstanding ^^^ 21cellent ^^^ Commendable ^^^ #ully competent ^^^ eets minimal

e1pectations ^^^ Does not

meet e1pectations

K(

^^^ Outstanding ^^^ 21cellent ^^^ Commendable ^^^ #ully competent ^^^ eets minimal

e1pectations ^^^ <( Does not

meet e1pectations ^^^ Outstanding ^^^ 21cellent ^^^ Commendable ^^^ #ully competent ^^^ eets minimal

e1pectations ^^^ =( Does not

meet e1pectations ^^^ Outstanding ^^^ 21cellent

^^^ Commendable ^^^ #ully competent ^^^ eets minimal

e1pectations ^^^ ;( Does not

meet e1pectations ^^^ Outstanding ^^^ 21cellent ^^^ Commendable ^^^ #ully competent ^^^ eets minimal

e1pectations ^^^ :Q( Does not

meet e1pectations ^^^ Outstanding ^^^ 21cellent ^^^ Commendable ^^^ #ully competent ^^^ eets minimal

e1pectations ^^^ Does not

meet e1pectations

C$1e C$4;e#e"2!e)

C$4;e#e"28 R'#!".) 9elect one rating for eac! competency

Initiative Creativity Pudgment

and *!e ability to plan wor%- to go a!ead wit! a tas% wit!out being told every detail and to ma%e constructive suggestions( *!e e1tent to w!ic! t!e employee ma%es decisions t!at are sound( Ability to base decisions on fact rat!er t!an emotion(

Cooperation/*eamw 0illingness to wor% !armoniously wit! ot!ers in getting a job done( or% Euality of 0or% Reliability Readiness to respond positively to instructions and procedures( #reedom from errors and mista%es( Accuracy- 3uality of wor% in general( *!e e1tent to w!ic! t!e employee can be depended upon to complete wor%- projects or assignments on time( Commitment 9afety *!e degree to w!ic! t!e

to Ability to ad!ere to all safety rules and perform wor% in safe manner( employee is reliable and persistent( (Ne(ati'e indi'idua! be*a'ior !eadin( to undesirab!e safet" #ractices a" re-uire correction 'ia t*e disci#!inar" #rocess).

9upport of Diversity Demonstrated commitment to a respectful and inclusive wor% environment( K$<&);e2! !2 C$4;e#e"2!e) +O;#!$"'(^^ Does not meet ^^

eets minimal

^^ #ully

^^ Commendable ^^ 21cellent Outstanding ^^

e1pectations e1pectations ^^ Does not meet ^^ eets minimal

competent ^^ #ully

^^ Commendable ^^ 21cellent Outstanding ^^

e1pectations e1pectations ^^ Does not meet ^^ eets minimal

competent ^^ #ully

^^ Commendable ^^ 21cellent Outstanding ^^

e1pectations e1pectations ^^ Does not meet ^^ eets minimal

competent ^^ #ully

^^ Commendable ^^ 21cellent Outstanding ^^

e1pectations e1pectations ^^ Does not meet ^^ eets minimal

competent ^^ #ully

^^ Commendable ^^ 21cellent Outstanding ^^

e1pectations

e1pectations

competent

^^ Does not meet ^^

eets minimal

^^ #ully

^^ Commendable ^^ 21cellent Outstanding ^^

e1pectations

e1pectations

competent

M'"'.e1!'(BS7;e13!)$18 C$4;e#e"2!e) +F$1 e4;($8ee) 56$ )7;e13!)e $#6e1)V'(7e) '"* E#6!2)% Demonstrates respect for people and 7aboratory principles and policies( &nte(rit" 5es#ect S#1'#e.!2 T6!"0!".% %na!"si s and &deas E".'.e4e"#% Peo #!e, ,ea s, and aintains a respectful- diverse and inclusive wor% environment( $olds self andadvice ot!ers and accountable for actions( Offers creates plans based on analysis of issues and trends and lin%s t!ese to t!e responsibilities- capabilities and potential of !is/!er organization( 9cans an ever'c!anging- comple1 environment in 2ngages employees- teams and collaborators in developing goalse1ecuting plans and delivering results( otivates employees and teams

0o!!aborators

to accomplis! goals by communicating clearly and consistently( Bses negotiation s%ills and models adaptability to encourage recognition of Aligns peoplewor% and systems wit! t!e 7aboratory"s strategy( 2nsures

M'"'.e4e"# E>2e((e"2e%

t!at t!e staff !as t!e %nowledge- s%ills and versatility to meet current and longer'term goals( 2nsures t!at people !ave t!e support and tools t!ey need to succeed t!eir wor%( anages t!e performance Accesses and in reviews standard budget reports as management appropriate(

Re)$712e M'"'.e4e"#%

Reallocates resources as organizational c!ange occurs(

8at!ers and

organizes credible data to ma%e a case for budget c!anges( Regularly

S744'18 $ Pe1 $14'"2e '"* Re3!e5 $ to C$4;e#e"2!e) analyzes budget data ensure cost effectiveness and efficiency(

S744'18 $ L'<$1'#$18 C$44!##ee '"* Se13!2e W$10

Pe1 $14'"2e Pe1 $14'"2e G$$*9

)$(!* G$$*9

)$(!* E>2e((e"# ;e1 $14'"2e

O7#)#'"*!". ;e1 $14'"2e #6'# !" e>#1'$1*!"'1 '"* 1e)7(#)

!) 5e(( <e($5 (e'3e) 1$$4 ;e1 $14'"2e #6e 4!"!474 ;$)!#!$" 1eC7!1e4e"# ). $1 !4;1$3e4e" #(

;e1 $14'"2e

( #ulfills all ( #ulfills all #6'# position position re3uirements 2$")!)#e"#(8 .e"e1'#e)

2mployee re3uirements and goals(

re3uires

and goals and results above 8 4'89 $22')!$"9 generate $" t!ose e1pected t!e

Re3uires eit!er '**!#!$"'( and *e3e($;4e"# !" *e !2!e"#

e>2e;#!$"'( of '22$4;(!)64 5!#6

immediate review action including

position( e"#)

results above Contributes in )!."! !2'"# t!ose an e1cellent 2$"#1!<7#!$") to to goals of t!e

#e26"!2'( $19 <e '

!4;(e4e"#'#! '1e')4 $" $ 4'8

e1pected

of manner

t!e position(

tec!nical and Departmentfunctional innovations( Division 7aboratory( or

Pe1 $14'"2e "e5 I4;1$3e4e" # P('" +PIP-.

6!1e

1eC7!1!". '4!(!'1!#8 5!#6 ;1$2e))e)A $19 !) "$# ('<

1e);$"*!". '3$1'<(8 #$

Se2$"*&(e3e( M'"'.e1!'( A;;1$3'( $ Pe1 $14'"2e Re3!e5 D$274e"# I !ave reviewed and approved t!e performance review document and overall rating( 9ignature ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Date

^^^^^^^^^^^^^^^^^^^^^^^^^^ 5 anager of reviewer6 Re3!e5e1 A20"$5(e*.e4e"# $ Pe1 $14'"2e Re3!e5 D$274e"# I !ave discussed t!e performance review document wit! t!e employee and advised t!e employee of !is/!er overall rating( Reviewer 9ignature ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Date

^^^^^^^^^^^^^^^^^^^^^^^^ 5Person w!o prepared t!e review6 E4;($8ee A20"$5(e*.e4e"# $ Pe1 $14'"2e Re3!e5 D!)27))!$" y supervisor/manager !as reviewed and discussed t!e performance review document wit! me( y signature means t!at I !ave been advised of my performance status and does not

necessarily imply t!at I agree wit! it( 2mployee 9ignature ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Date

^^^^^^^^^^^^^^^^^^^^^^^^^

E4;($8ee C$44e"#) +O;#!$"'(-

Me"#$1 C$44e"#) +O;#!$"'(-

MBA09HR02 PERFORMANCE MANAGEMENT (IV TRIMESTER) STUDY MATERIAL PREPARED BY

Mr.S.NAGARAJAN
M.Sc IT&Mg .!M.C"#.!M.B.A.!M.P$%&.! ASSISTANT PROFESSOR GNANAMANI INSTITUTE OF MANAGEMENT STUDIES