Performance management (PM) includes activities that ensure that goals are consistently being met in

an effective and efficient manner. Performance management can focus on the performance of an
organization, a department, employee, or even the processes to build a product or service, as well as
many other areas.
The process of motivating employees through setting goals, measuring progress, giving feedback, coaching for
improved performance, and rewarding achievements
PerIormance management is the process oI creating a work environment or setting in which people are enabled to perIorm to the
best oI their abilities. PerIormance management is a whole work system that begins when a job is deIined as needed. It ends when
an employee leaves your organization.
OBJECTIVES
The objectives of Performance Management are to:
1. Increase two-way communication between supervisors and employees
2. Clarify mission, goals, responsibilities, priorities and expectations
3. Identify and resolve performance problems
4. Recognize quality performance
5. Provide a basis for administrative decisions such as promotions, succession and
strategic planning, and pay for performance.

Benefits
Managing employee or system performance facilitates the effective delivery of strategic and operational
goals. There is a clear and immediate correlation between using performance management programs or
software and improved business and organizational results.
For employee performance management, using integrated software, rather than a spreadsheet based
recording system, may deliver a significant return on investment through a range of direct and indirect
sales benefits, operational efficiency benefits and by unlocking the latent potential in every employees
work day (i.e. the time they spend not actually doing their job). Benefits may include:
rect fnancaI gan
Grow sales
Reduce costs in the organization
Stop project overruns
Aligns the organization directly behind the CEO's goals
Decreases the time it takes to create strategic or operational changes by communicating the changes
through a new set of goals
ot;ated workforce
Optimizes incentive plans to specific goals for over achievement, not just business as usual
mproves employee engagement because everyone understands how they are directly contributing to
the organisations high level goals
Create transparency in achievement of goals
High confidence in bonus payment process
Professional development programs are better aligned directly to achieving business level goals
mpro;ed management controI
Flexible, responsive to management needs
Displays data relationships
Helps audit / comply with legislative requirements
Simplifies communication of strategic goals scenario planning
Provides well documented and communicated process documentation

Performance appraisals
The process by which a manager or consultant (1)examines and evaluates
an employee's work behavior by comparing it with preset standards,
(2) documents theresults of the comparison, and (3) uses the results
toprovide feedback to the employee to show whereimprovements are needed and why.
Performance appraisals are employed to determine whoneeds what training, and who
will be promoted, demoted, retained, or fired.

Performance appra8aI is the process of obtaining, analyzing and recording information about
the relative worth of an employee.
. PerIormunce uppruIsuI meLIods
(Tools of ) Performance appraisal methods include 11 appraisal methods / types as follows:
1. Critical incident method
This format of performance appraisal is amethod which is involved identifying and describing specific
incidents where employees did something really well or that needs improving during their performance
period.
2. Weighted checklist method
In this style, performance appraisal is made under a method where the jobs being evaluated based on
descriptive statements about effective and ineffective behavior on jobs.
3. Paired comparison analysis
This form of performance appraisal is a good way to make full use of the methods of options. There
will be a list of relevant options. Each option is in comparison with the others in the list. The results
will be calculated and then such option with highest score will be mostly chosen.
4. Graphic rating scales
This format is considered the oldest and most popular method to assess the employees performance.
In this style of performance appraisal, the management just simply does checks on the performance
levels of their staff.
. Essay Evaluation method
In this style of performance appraisal, managers/ supervisors are required to figure out the strong and
weak points of staffs behaviors. Essay evaluation method is a non-quantitative technique. It is often
mixed with the method the graphic rating scale.
6. Behaviorally anchored rating scales
This formatted performance appraisal is based on making rates on behaviors or sets of indicators to
determine the effectiveness or ineffectiveness of working performance. The form is a mix of the rating
scale and critical incident techniques to assess performance of the staff.
7. Performance ranking method
The performance appraisal of ranking is used to assess the working performance of employees from
the highest to lowest levels.
Managers will make comparisons of an employee with the others, instead of making comparison of
each employee with some certain standards.
8. Management By Objectives (MBO) method
MBO is a method of performance appraisal in which managers or employers set a list of objectives and
make assessments on their performance on a regular basis, and finally make rewards based on the
results achieved. This method mostly cares about the results achieved (goals) but not to the way how
employees can fulfill them.
9. 360 degree performance appraisal
The style of 360 degree performance appraisal is a method that employees will give confidential and
anonymous assessments on their colleagues. This post also information that can be used as
references for such methods of performance assessments of 720, 540, 180.
10.Forced ranking (forced distribution)
In this style of performance appraisal, employees are ranked in terms of forced allocations.
For instance, it is vital that the proportions be shared in the way that 10 or 20 % will be the highest
levels of performances, while 70 or 80% will be in the middle level and the rest will be in the lowest
one.
11. Behavioral Observation Scales
The method based on the scales of observation on behaviors is the one in which important tasks that
workers have performed during their working time will be assessed on a regular basis.

PerIormunce MunugemenL
PerIormunce munugemenL
PerIormunce munugemenL Is LIe meuns LIrougI wIIcI munugers ensure LIuL empIoyeeI]s ucLIvILIes und ouLpuLs ure
congruenL wILI LIe orgunIzuLIonI]s gouIs.
Some uspecLs oI perIormunce cun be meusured LIrougI perIormunce uppruIsuI. L Is LIe process LIrougI wIIcI un
orgunIzuLIon geLs InIormuLIon on Iow weII un empIoyee Is doIng IIs or Ier job. PerIormunce munugemenL Ius
sLruLegIc, udmInIsLruLIve und deveIopmenLuI purposes.
TIere ure u Iew upproucIes Lo meusurIng perIormunce. TIe compuruLIve upproucI requIres LIe ruLer Lo compure un
IndIvIduuII]s perIormunce wILI LIuL oI oLIers. TIIs upproucI usuuIIy uses some overuII ussessmenL oI un IndIvIduuII]s
perIormunce or worLI und seeks Lo deveIop some runkIng oI LIe IndIvIduuIs wILIIn u work group. TIree LecInIques
IuII under LIe compuruLIve upproucI: runkIng, Iorced dIsLrIbuLIon, und puIred compurIson.
TIe uLLrIbuLe upproucI Lo perIormunce munugemenL Iocuses on LIe exLenL Lo wIIcI IndIvIduuIs Iuve cerLuIn
uLLrIbuLes beIIeved desIrubIe Ior LIe compunyI]s success.
TIe beIuvIoruI upproucI Lo perIormunce munugemenL uLLempLs Lo deIIne LIe beIuvIors un empIoyee musL exIIbIL Lo
be eIIecLIve In LIe job.
TIe resuILs upproucI Iocuses on munugIng LIe objecLIve, meusurubIe resuILs oI u job or work group. TIIs upproucI
ussumes LIuL subjecLIvILy cun be eIImInuLed Irom LIe meusuremenL process und LIuL resuILs ure LIe cIosesL IndIcuLor
oI oneI]s conLrIbuLIon Lo orgunIzuLIonuI eIIecLIveness.
TIe quuIILy upproucI Is cIurucLerIzed by u cusLomer orIenLuLIon und u prevenLIon upproucI Lo errors.
TIps Ior munugerI]s roIe In un eIIecLIve perIormunce Ieedbuck process:
lX eedbuck sIouId be gIven IrequenLIy, noL once u yeur
lX CreuLe LIe rIgIL conLexL Ior LIe dIscussIon
lX Ask LIe empIoyee Lo ruLe IIs or Ier perIormunce beIore LIe sessIon
lX Encouruge LIe subordInuLe Lo purLIcIpuLe In LIe sessIon
lX RecognIze eIIecLIve perIormunce LIrougI pruIse
lX ocus on soIvIng probIems
lX ocus Ieedbuck on beIuvIor or...