Performance Management

GROUP MEMBERS
JAYATI MAITI YOGESH SANGLE AMIT KADIAN MIHIR SUTARIA SWATI MORAES GHANSHYAM MORASIYA

Performance Management
Management = getting work done through others Managers performance is only as good as his/her employees performance Managers job = performance management of others

Performance Management
Process that significantly affects organizational success.
Managers and employees work together to set expectations, review results and reward performance.
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Performance Management
Organizational system Focusing on employee performance Consistently applied throughout organization With a supporting structure

PERFORMANCE MANAGEMENT
-Based on Scientific Management concepts -Focus on observable performance -Goal directed

-Planning required and formalized

-Consistent, continuous collection, analysis, and collection of data -Value of feedback reinforced -Facilitates benchmarking

MODEL OF PERFORMANCE MANAGEMENT

Individual and Group Performance

Employee Involvement

Goal Setting

Performance Appraisal

Workplace Technology

Business Strategy

Reward Systems

Goal Setting
Goal: What an individual is trying to accomplish through his or her behavior and actions. Goal Setting Theory: A theory that focuses on identifying the types of goals that are most effective in producing high levels of motivation and performance and why goals have these effects.

Goal setting can operate to enhance both intrinsic motivation (in the absence of any extrinsic rewards) and extrinsic motivation (when workers are given extrinsic rewards for achieving their goals).

CHARATERISTICS OF GOAL SETTING

Establishing Challenging Goals. Clarifying Goal Measurement.

Approaches to Goal setting

Diagnosis. Preparation of Goal Setting. Setting of Goals. Review.

Goal Setting

MANAGEMENT BY OBJETIVES
MBO is a system of allowing employees to work with their supervisors in the setting performance objectives in an effort to achieve organisational outcomes. In other words, the organisational overall objectives are translated in to specific objectives for each succeeding level in the organisation.

The Five-Step MBO Process

Steps in Implementing an MBO process

Work group involvement. Joint manager-subordinate goal setting. Establishment of action plan for goals. Establishment of criteria, or yardsticks of success. Review and recycle. Maintenance of records.

Effects of Goal Setting and MBO

MBO generally are positive but less consistent than the goal setting. MBO effectiveness is large but mixed. If properly designed MBO program can have positive organizational results. While goal setting appears to produce positive results over a wide range of jobs and organizations.

PEFORMANCE APPRAISAL Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, performance, potential, of its group members.

Performance Appraisal Process

Taking corrective standards

Setting performance standards

Communicating standards

Discussing Results Comparing standards

Measuring standards

Application of Performance Appraisal

Select the Right People. Diagnose the Correct Situation. Establish the Systems Purposes and Objectives.

Design the Performance Appraisal System.

Experiment with Implementation Evaluate and Monitor the System.

Reward Systems
Intrinsic Rewards Status Growth Responsibility Extrinsic Rewards Non-financial (office, staff, title, etc.) Financial (direct and indirect compensation)

Structural & Motivational Features of Reward Systems

Person/Job Based vs. Performance Based. Internal and External Equity. Hierarchy. Centralization. Rewards Mix. Security. Seniority.

Ability of Rewards Depend on Five factors

Availability. Timeliness. Performance Contingency. Durability. Visibility.

Skill-Based Pay Systems

Skillbased pay (SBP) is a compensation system that rewards employees with additional pay in exchange for formal certification of the employees mastery of skills, knowledge, and/or competencies. Skill is acquired and observable expertise in performing tasks. Knowledge is acquired information used in performing tasks. (SBP) is a compensation system that rewards employees with additional pay in exchange for formal certification of the employees mastery of skills, knowledge, and/or competencies.

Performance-Based Pay System

Many employers are now seeking to sustain their competitiveness through pay increases which are more related to performance measures as a way of absorbing increased labour costs, while at the same time rewarding and motivating employees.
To create favourable environment for better motivation of employees and support achievement of organisational goals. Through performance based pay schemes employees are transmitted the message what results and effort is especially expected from them.

Gain-Sharing Systems
Process of Design. Organizational Unit Covered. Bonus Formula. Sharing Process Frequency of Bonus. Change Management. The Participative Systems.

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