Introduction

MBA (HRM) 5th

Performance Management
Performance Planning and Development
Discussion 04
17-04-2013
By
Faseeh Ur Rehman
ffaseeh@gmail.com
ISP, Multan

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

Contents
Performance Management Discussion
Role Profiles
Objective Setting
Performance Measures and Assessment
Performance Planning
Development Planning
The Performance Agreement
Performance and Development Planning - Checklist

Role Profiles

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.

Role Profiles
Role Profile comprises following:
Developing role profiles
Defining key result areas
Defining technical competencies
Defining behavioral competencies
Core values

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.

Role Profiles Developing role profiles

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?

Role Profiles Developing role profiles

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?

Role Profiles Developing role profiles

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.

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Role Profiles Developing role profiles

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.

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Role Profiles Developing role profiles

Defining behavioral competencies Cont.
The following is an example of a competence framework:
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.

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Role Profiles Developing role profiles

Defining behavioral competencies Cont.
The following is an example of a competence framework:
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.

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Role Profiles Developing role profiles

Defining behavioral competencies Cont.
The following is an example of a competence framework:
Communication communicate clearly and persuasively, orally or
in writing.

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Role Profiles Developing role profiles

Defining behavioral competencies Cont.
The following is an example of a competence framework:
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.

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Role Profiles Developing role profiles

Defining behavioral competencies Cont.
The following is an example of a competence framework:
Developing others foster the development of members of his or
her team, providing feedback, support, encouragement and
coaching.

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Role Profiles Developing role profiles

Defining behavioral competencies Cont.
The following is an example of a competence framework:
Flexibility adapt to and work effectively in different situations
and carry out a variety of tasks.

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Role Profiles Developing role profiles

Defining behavioral competencies Cont.
The following is an example of a competence framework:
Leadership guide, encourage and motivate individuals and teams
to achieve a desired result.

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Role Profiles Developing role profiles

Defining behavioral competencies Cont.
The following is an example of a competence framework:
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.

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Role Profiles Developing role profiles

Defining behavioral competencies Cont.
The following is an example of a competence framework:
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.

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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.

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Role Profiles Core values

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.
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Role Profiles Core values

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.

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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.

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Role Profiles Example

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.
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Role Profiles Example

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.

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Role Profiles Example

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

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Role Profiles Example

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.
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Role Profiles Example

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.
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Objective Setting

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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.

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Objective Setting
Objective Setting needs discussion on:
Types of objectives
Good objective
Integrating objectives
Objective-setting checklist

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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.

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Objective Setting Types of Objectives

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.
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Objective Setting Types of Objectives

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.

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Objective Setting Types of Objectives

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.

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Objective Setting Types of Objectives

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.

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Objective Setting Types of Objectives

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.

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Objective Setting Types of Objectives

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.

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Objective Setting Types of Objectives

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.

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Objective Setting Types of Objectives

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

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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;

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Objective Setting Good Objective

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;
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Objective Setting Good Objective

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.
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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.

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Objective Setting Integrating Objectives

The integration of organizational and individual and team objectives
is often referred to as a process of cascading objectives.
Cascading should not be regarded as just a top-down process
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.

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Objective Setting Integrating Objectives

Integration of organizational objectives is a bottom-up process
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.

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Objective Setting Integrating Objectives

Integration is achieved by ensuring that everyone is aware of:
Corporate,
Functional &
Team goals
Objectives they agree for themselves are consistent with those goals
and will contribute in specified ways to their achievement.

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Objective Setting Integrating Objectives

This process is illustrated below:

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Objective Setting Integrating Objectives

Two-way process of agreeing integrated objectives

Corporate
Functional
Team
Individual
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Objective Setting Integrating Objectives

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.
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Objective Setting Integrating Objectives

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.
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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?
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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?

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