Performance Management Session 3

Introduction
MBA (HRM) 5th

Performance Management
Process of Performance Management (C:2)
Performance Planning and Development (C:4)
Discussion 03
17-04-2013
By
Faseeh Ur Rehman
ffaseeh@gmail.com
ISP, Multan
1
PM in Action at Scottish Parliament
The approach to performance management adopted by the Scottish

Parliament as set out in the guidance notes is summarized below.
Purpose
Aim
Achieving purpose, aims and values
Aims of performance management
Basis of performance management
Good performance management
Personal development plan

Purpose
To support the Scottish Parliament in fulfilling its
constitutional role as a representative and
legislative body by providing professional advice
and services of the highest standards.

Aim
To be an organization in which we all behave corporately and are
properly trained, informed, involved, motivated and rewarded and
to which we are proud to belong.

Achieving purpose, aims and values
To help achieve the above a performance management system has
been developed specifically to:
Be simple to operate.
Establish a clear link between business and individual objectives.
Ensure commitment to our values and culture.
Ensure that skills and knowledge and behavior are reviewed.
5

Achieving purpose, aims and values Cont.
Generate a thorough and continuing review of T&D needs.
Enable us to continue to improve the organizations performance.
Ensure we can identify and reward exceptional performance and
contribution.
Identify good and bad performance clearly.

Aims of performance management
Performance management is designed to:
Ensure that what we do is guided by our values and is relevant to
the purposes of the organization.
Ensure that we are all clear how to demonstrate the skills,
knowledge and behaviors that are expected of us.
Ensure that we are clear what our individual role is and how we
intend to fulfill it.
7

Aims of performance management Cont.
Link our job roles and individual objectives to the organizational
objectives and priorities set out in the Management Plan.
Ensure that all managers agree and review objectives, priorities
and developmental needs with team members.
Review performance against objectives and areas of competence
to ensure that we are making the best possible contribution to the
organizations overall aim.

Aims of performance management Cont.
Ensure that all team members receive constructive feedback in
order to develop and improve performance.
Ensure that a thorough review of training and development takes
place as an integral part of the system so that personal
development plans reflect both business and individual aims.
Ensure that poor performance is identified quickly and support
provided to eliminate it.

Basis of performance management
Performance management involves measuring not only whether
jobs are done but how they are done.
10

Basis of performance management Cont.
Staff are assessed against a set of eight core areas of competence:
High quality service
flexibility and adaptability
personal contribution
problem solving and decision making
leadership/teamwork
communication and interpersonal skills
parliamentary awareness and
equal opportunities improving access and promoting
equality.
11

Basis of performance management Cont.
Positive and negative indicators exist against each area of
competence to illustrate the ways in which staff are expected to
behave and the ways in which they are expected not to behave.
12

Good performance management
Good performance management is achieved through both parties
ensuring that:
New staff know what is expected of them from the outset.
Everyone is clear about corporate goals and works towards them.
Objectives are SMART (Specific, Measurable, Achievable,
Relevant, Time related).
13

Good performance management Cont.
A system exists to accommodate day-to-day performance
feedback.
The personal development plan (PDP) is used formally to help self
developmental activities and/or improve performance.
The line manager provides and the jobholder undertakes the
training needed to support the individual and the organization.
Appropriate support is in place to eliminate poor performance.
14

Personal development plan
A personal development plan is an important part of the system. It is
a plan on which to record:
where the level of competence is met but where we would like to
develop further;
any training and/or development needed to support the delivery of
that objective; and
any gaps in skills, knowledge or behaviors that need to be
overcome in order to meet our objectives.
15

Personal development plan Cont.
It gives jobholders and line managers the opportunity to:
identify, discuss and agree development needs for the year ahead
prioritize and plan how these will be addressed and achieved
agree and set dates for reviewing the plan
if necessary, plan how poor performance might be improved
16
Need of the PMSs

The need for an efficient and effective PMSs has increased
over the last decade and the successful implementation and
use of these systems has become of paramount importance to
organizations.
Unfortunately, only scattered information is available in the
literature about the problems that can be expected during the
implementation and use processes.
Even the failure rate (70-56%), which is often mentioned in
the literature has never been substantiated.
17
CHPATER 3
Performance Management Practices
1.Standard Chartered Bank
2.IRS
3.Ed Lawler &Micheal McDermmot
4.Chartered Institute of Personnel and Development (CIPD)
5.e-Rewards
18
Contents
Performance Management Discussion
Role Profiles
Objective Setting
Performance Measures and Assessment
Performance Planning
Development Planning
The Performance Agreement
Performance and Development Planning - Checklist
19
20

Performance management helps people get into action so that they
achieve planned and agreed results (Armstrong, 2006; 2010).
21

Performance management focuses on:
What has to be done?
How it should be done?

What is to be achieved?
22

Performance management is (equally) concerned
with developing people helping them to learn
and providing them with the support they need
to do well, now and in the future.
23

The framework for PM is provided by the
performance agreement, which is the outcome of
performance and development planning.
24

The agreement provides the basis for:
managing performance throughout the year;
and
guiding improvement and development
activities.
The agreement is used as a reference point when
reviewing performance and the achievement of
improvement and development plans.
25

Performance and development planning is carried out jointly by the
manager and the individual. These discussions should lead to an
agreement on:
What needs to be done by both parties?
26

The starting point for the performance and development plans is
provided by the role profile, which defines the required:
Results,
Knowledge,
Skills, and
Behaviors.
This provides the basis for agreeing objectives and performance
measures.
Performance and personal development plans are derived from an
analysis of role requirements and performance in meeting them.
27
Role Profiles
28
Role Profiles
The basis of the performance and development agreement is a role

profile, which defines the role in terms of the key results expected,
what role holders are expected to know and be able to do
(technical competencies), and how they are expected to behave in
terms of behavioral competencies and upholding the
organizations core values.
Role profiles need to be updated every time a formal performance
agreement is developed.
29
Role Profiles
Role Profile comprises following:
Developing role profiles
Defining key result areas
Defining technical competencies
Defining behavioral competencies
Core values
30
Role Profiles Developing role profiles

To develop a role profile it is necessary for the line
manager and the individual to get together and
agree key result areas, define what the role
holder needs to know and be able to do and
ensure that there is mutual understanding of the
behavioral competencies required and the core
values the role holder is expected to uphold.
31

Defining key result areas
To define key result areas individuals should be asked by their
manager to answer questions such as:
What do you think are the most important things you have to do?
What do you believe you are expected to achieve in each of these
areas?
How will you or anyone else know whether or not you have
achieved them?
32

Defining technical competencies
To define technical competencies, i.e. what people need to know and
be able to do, three questions need to be answered:
To perform this role effectively, what has the role holder to be able
to do with regard to each of the key result areas?
What knowledge and skills in terms of qualifications, technical
and procedural knowledge, problem-solving, planning and
communication skills etc. do role holders need to carry out the
role effectively?
How will anyone know when the role has been carried out well?
33

Defining behavioral competencies
The usual approach to including behavioral competencies in the
performance agreement is to use a competency framework
developed for the organization. The manager and the individual
can then discuss the implications of the framework at the
planning stage.
34

Defining behavioral competencies Cont.
The following is an example of a competence framework:
Personal drive demonstrate the drive to achieve, acting
confidently with decisiveness and resilience.
35

Business awareness identify and explore business opportunities,
understand the business concerns and priorities of the
organization and constantly seek methods of ensuring that the
organization becomes more business like.
36

Teamwork work cooperatively and flexibly with other members
of the team with a full understanding of the role to be played as a
team member.
37

Communication communicate clearly and persuasively, orally or
in writing.
38

Customer focus exercise unceasing care in looking after the
interests of external and internal customers to ensure that their
wants, needs and expectations are met or exceeded.
39

Developing others foster the development of members of his or
her team, providing feedback, support, encouragement and
coaching.
40

Flexibility adapt to and work effectively in different situations
and carry out a variety of tasks.
41

Leadership guide, encourage and motivate individuals and teams
to achieve a desired result.
42

Planning decide on courses of action, ensuring that the resources
required to implement the action will be available and scheduling
the program of work required to achieve a defined end-result.
43

Problem solving analyze situations, diagnose problems, identify
the key issues, establish and evaluate alternative courses of action
and produce a logical, practical and acceptable solution.
44
Role Profiles Core values
Increasingly, performance management is being used by

organizations to encourage people to live the values. These
values can include such concerns as quality, continuous
improvement, customer service, innovation, care and
consideration for people, environmental issues and equal
opportunity. Discussions held when the performance agreement is
being reached can define what these values mean as far as
individual behavior is concerned.
45

The Scottish Parliament emphasizes that assessing how well people
uphold core values is an integral part of performance
management, stating that:
Our success depends on all of us sharing the common values set out
in the management plan, i.e.:
Integrity We demonstrate high standards of honesty and
reliability.
Impartiality We are fair and even-handed in dealing with members
of the public and each other.
46

Professionalism We provide high quality professional advice and
support services.
Client focus We are responsive to the needs of members, the
public and one another.
Efficiency We use resources responsibly and cost-effectively.
Mutual respect We treat everyone with respect and courtesy and
take full account of equal opportunities issues at all times.
47
Role Profiles Example

An example of a role profile is shown below.
Role title: Database administrator
Department: Information systems
Purpose of role: Responsible for the development and support of
databases and their underlying environment.
48

Key result areas:
Identify database requirements for all projects that require data
management in order to meet the needs of internal customers.
Develop project plans collaboratively with colleagues to deliver
against their database needs.
Support underlying database infrastructure.
Liaise with system and software providers to obtain product
information and support.
49

Cont
Manage project resources (people and equipment) within
predefined budget and criteria, as agreed with line manager and
originating department.
Allocate work to and supervise contractors on day-to-day basis.
Ensure security of the underlying database infrastructure through
adherence to established protocols and to develop additional
security protocols where needed.
50

Need to know:
Oracle database administration.
Operation of Designer 2000 and Oracle forms SQL/PLSQL,
UNIX administration, shell programming.
51

Able to:
Analyze and choose between options where the solution is not always
obvious.
Develop project plans and organize own workload on a timescale of
1-2 months.
Adapt to rapidly changing needs and priorities without losing sight
of overall plans and priorities.
Interpret budgets in order to manage resources effectively within
them.
Negotiate with suppliers.
Keep abreast of technical developments and trends, bring these into
day-to-day work when feasible and build them into new project
developments.
52

Behavioral competencies:
Aim to get things done well and set and meet challenging goals,
create own measures of excellence and constantly seek ways of
improving performance.
Analyze information from range of sources and develop effective
solutions/recommendations.
Communicate clearly and persuasively, orally or in writing,
dealing with technical issues in a non-technical manner.
Work participatively on projects with technical and non-technical
colleagues.
Develop positive relationships with colleagues as the supplier of an
internal service.
53
Objective Setting
54
Objective Setting
Objectives describe something that has to be accomplished.
Objectives or goals (the terms are interchangeable) define what
organizations, functions, departments and individuals are
expected to achieve over a period of time.
Objective setting that results in an agreement on what the role
holder has to achieve is an important part of the performance
management processes of defining and managing expectations
and forms the point of reference for performance reviews.
55
Objective Setting
Objective Setting needs discussion on:
Types of objectives
Good objective
Integrating objectives
Objective-setting checklist
56
Objective Setting Types of Objectives

Ongoing Role or Work Objectives
All roles have built-in objectives, which may be expressed as key
result areas in a role profile.
The definition of a key result area states that this is what the role
holder is expected to achieve in this particular aspect of the role.
For example:
Identify database requirements for all projects that require data
management in order to meet the needs of internal customers or
Deal quickly with customer queries in order to create and
maintain high levels of satisfaction.
57

Ongoing Role or Work Objectives Cont.
A key result area statement should contain an indication of not only
what has to be done but also why it has to be done.
The why part clarifies the ongoing objective but it may be
necessary to expand that by reaching agreement on a
performance standard that describes what good performance will
look like.
A performance standard definition should take the form of a
statement that performance will be up to standard if a desirable,
specified and observable result happens. It should preferably be
quantified in terms, for example, of level of service or speed of
response.
58

Ongoing Role or Work Objectives Cont.
Good role or work objectives will clearly define the activity in terms
of the results and standards to be achieved. They may be
supplemented by quantified targets. Although described as
ongoing, they need to be reviewed regularly and, as necessary,
modified.
59

Targets
Targets are objectives that define the quantifiable results to be
attained as measured in such terms as output, throughput,
income, sales, levels of service delivery, cost reduction and
reduction of reject rates. Thus a customer service target could be
to respond to 90% of queries within two working days.
60

Tasks/Projects
Objectives can be set for the completion of tasks or projects by a
specified date or to achieve an interim result. A target for a
database administrator could be to develop a new database to
meet the need of the HR department by the end of the year.
61

Behavioral Expectations
Behavioral expectations are often set out generally in competency
frameworks but they may also be defined individually under the
framework headings.
Competency frameworks may deal with areas of behavior associated
with core values, for example teamwork, but they often convert
the aspirations contained in value statements into more specific
examples of desirable and undesirable behavior, which can help in
planning and reviewing performance.
62

Values
Expectations can be defined for upholding the core values of the
organization. The aim would be to ensure that espoused values
(that supplement) become values in use.
63

Performance Improvement
Performance improvement objectives define what needs to be done
to achieve better results. They may be expressed in a performance
improvement plan, which specifies what actions need to be taken
by role holders and their managers.
64

Developmental/Learning
Developmental or learning objectives specify areas for personal
development and learning in the shape of enhanced knowledge
and skills (abilities and competences).
65
Objective Setting Good Objective

Good work objectives are:
Consistent with the values of the organization and departmental
and organizational objectives;
Precise: clear and well defined, using positive words;
Challenging: to stimulate high standards of performance and to
encourage progress;
66

Cont
Measurable: related to quantitative/qualitative performance
measures;
Achievable: within the individuals capacity and capability;
Agreed by the manager and the individual concerned the aim is
to provide for the ownership, not the imposition, of objectives;
Focused on teamwork: emphasize the need to work as an effective
member of a team as well as individual achievement;
67

Many organizations use the SMART mnemonic for the purpose:
S = Specific/stretching clear, unambiguous, straightforward,
understandable and challenging.
M= Measurable quantity, quality, time, money.
A = Achievable challenging but within the reach of a competent
and committed person.
R = Relevant relevant to the objectives of the organization so
that the goal of the individual is aligned to corporate goals.
T = Time framed to be completed within an agreed timescale.
68
Objective Setting Integrating Objectives

A defining characteristic of performance
management is the importance attached to the
integration or alignment of individual objectives
with organizational objectives. The aim is to
focus people on doing the right things in order to
achieve a shared understanding of performance
requirements throughout the organization.
69

The integration of organizational and individual and team objectives
is often referred to as a process of cascading objectives.
However, cascading should not be regarded as just a top-down
process. There will be overarching corporate goals, but people at
each level should be given the opportunity to indicate how they
believe they can contribute to the attainment of team and
departmental objectives.
70

Integration of organizational objectives is a bottom-up process, and
the views of employees about what they believe they can achieve
should be noted and, as appropriate, higher-level objectives
amended to take account of them.
71

An approach along these lines increases ownership of the objectives
as well as providing a channel for upward communication on key
issues affecting the achievement of business goals. Of course there
will be times when the overriding challenge has to be accepted,
but there will also be many occasions when the opinions of those
who have to do the work will be well worth listening to.
72

Integration is achieved by ensuring that everyone is aware of
corporate, functional and team goals and that the objectives they
agree for themselves are consistent with those goals and will
contribute in specified ways to their achievement.
73

This process is illustrated below:
74

Two-way process of agreeing integrated objectives
Corporate
Functional
Team
Individual
75

Example
Corporate
Define corporate objectives in such terms as: Provide a reliable
product to fit customer needs complemented by helpful and
efficient service and support.
Functional
Define aspects of customer service for which function is responsible
in such terms as quality, value for money, responsiveness and
courtesy. Agree operational targets for the function in each area.
76

Example Cont.
Team
Agree operational standards for service delivery and targets for
improvement in each of the areas covered in the functional
strategy. Ensure targets are in line with and support the
achievement of functional and corporate strategic objectives and
targets.
Individual
Agree individual standards for customer service and improvement
targets that support the achievement of team targets. Define
competencies and skills required and agree steps to develop them.
77
Objective Setting Checklist

Has the objective-setting process been based on an agreed and upto-date role profile that sets out key result areas?
Has objective setting been carried out jointly with your manager?
Are your standards and targets clearly related to the key result
areas in your role profile?
Do your objectives clearly and specifically support the
achievement of your team and functional objectives and,
ultimately, corporate objectives. If so, how?
Are your objectives specific?
78
Objective Setting Checklist Cont.

Do they provide some challenge to you?
Are they realistic and attainable?
Has a time limit for their achievement been agreed?
How will you know that your objectives have been achieved?
Have any problems you may meet in attaining your objectives
been identified and has action to overcome these problems been
agreed?
79

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Introduction

MBA (HRM) 5th

PM in Action at Scottish Parliament

The approach to performance management adopted by the Scottish

PM in Action at Scottish Parliament

PM in Action at Scottish Parliament

PM in Action at Scottish Parliament

PM in Action at Scottish Parliament

PM in Action at Scottish Parliament

PM in Action at Scottish Parliament

PM in Action at Scottish Parliament

PM in Action at Scottish Parliament

PM in Action at Scottish Parliament

PM in Action at Scottish Parliament

PM in Action at Scottish Parliament

PM in Action at Scottish Parliament

PM in Action at Scottish Parliament

PM in Action at Scottish Parliament

Need of the PMSs

Performance Management Discussion

Performance Management Discussion

Performance Management Discussion

How it should be done?

Performance Management Discussion

Performance Management Discussion

Performance Management Discussion

Performance Management Discussion

What needs to be done by both parties?

Performance Management Discussion

The basis of the performance and development agreement is a role

Role Profiles Developing role profiles

Role Profiles Developing role profiles

Role Profiles Developing role profiles

Role Profiles Developing role profiles

Role Profiles Developing role profiles

Role Profiles Developing role profiles

Role Profiles Developing role profiles

Role Profiles Developing role profiles

Role Profiles Developing role profiles

Role Profiles Developing role profiles

Role Profiles Developing role profiles

Role Profiles Developing role profiles

Role Profiles Developing role profiles

Role Profiles Developing role profiles

Role Profiles Core values

Increasingly, performance management is being used by

Role Profiles Core values

Role Profiles Core values

Role Profiles Example

Role Profiles Example

Role Profiles Example

Role Profiles Example

Role Profiles Example

Role Profiles Example

Objective Setting Types of Objectives

Objective Setting Types of Objectives

Objective Setting Types of Objectives

Objective Setting Types of Objectives

Objective Setting Types of Objectives

Objective Setting Types of Objectives

Objective Setting Types of Objectives

Objective Setting Types of Objectives

Objective Setting Types of Objectives

Objective Setting Good Objective