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Performance Management Cycle
HARVARD COLLEGE
LIBRARY “What” “How”
Organizational
Priorities Values
Your
DEPARTMENT
UNIT OR
Departmental
Priorities
» 2002: May
» 2002: April-
May
» 2002: March
» 2002:
December-
January
What Is “Good Performance”?
• More than just activities, effort, good intentions, or results
• Working hard and staying busy are not necessarily
high performance
• Attending training sessions and studying hard does not
necessarily lead to good performance
• Strong commitment may not lead to good performance
• Even accomplishing some goals may not be high
performance
Performance Management –
Broader Than
Performance Appraisal
Begins with a look at goals &
strategies of the organization
Organizational Alignment
…a key to Performance
Management
All efforts must be aligned with
overall goals and strategies of the
organization.
Performance Management
a Cascading Process
Defining Performance
Facilitating Performance
Encouraging Performance
Performance Appraisal
• Alternation ranking
• Paired comparison
Explain Each of the Ranking
Methods
Preference Among Them?
Attractions? Limitations?
Forced Distribution
• Design?
• Purpose?
• Potential strengths?
• Potential weaknesses?
Critical Incidents
• Validity
What Do You Think?
What Form of Performance Appraisal Would You
Recommend?
What Criteria Have You Used in Making Your
Recommendation?
What Limitations (As Well As Strengths) Does
Your Recommended Method Have?
Who Appraises?
• Supervisor
• Peers
• Subordinates
• Self Appraisal
• Customers
Usefulness of Each?
Explain
360 Degree Appraisal
• Problem Solving
Performance management
Definition:
Employee performance management is the process of
involving employees in accomplishing your agency’s
mission and goals.
Accountability
Performance target
setting and
outcome/results
review
AND / OR
Managing performance for …
Employee
Development
Competence assessment
and development
Stages of performance management
Monitor
Develop
Plan
Reward Review
Stage 1 – Individual Performance Planning
Stage 1 – Planning
•Work goals
Plan
•Competencies
•Learning
Vision
Mission
Goals
Objectives
Policies
Procedures
MBO substitutes for good intentions a process that
requires rather precise written description of
objectives (for the period ahead) and time-lines for
their monitoring and achievement. The process
requires that the manager and the employee agree to
what the employee will attempt to achieve in the
period ahead, and (very important) that the employee
accept and buy into the objectives (otherwise
commitment will be lacking).
SMART
Management by Objectives introduced the
SMART method for checking the validity of
Objectives,
'SMART':
• Specific
• Measurable
• Achievable
• Realistic, and
• Time-related.
Stage 2/3 – Monitor and Develop
Monitor
Daily performance
management! Develop
Monitoring includes
measuring performance
and giving feedback. Two
way communication
between the manager and Stage 2/3 – Monitor and
Develop
employee throughout the
performance period is •Feedback
critical to the performance •Coach
management process. •Adjust goals
Daily performance
management
• Feedback and coaching –
informal
• Monitoring and tracking
performance against standards
and progress toward goals.
• Quarterly performance
planning and performance
discussions
• Development through
coaching, training, challenging
or visible assignments,
improving work processes
What performance will be
measured?
• Behaviors – how the work is done
– Performance factors / competencies
– Required behaviors
– Behaviors supporting desired organizational culture
• Results – what is achieved
– Performance outcomes
– Performance compared to job standards
– Performance goals and/or objectives
Stage 4 – Performance Review
• Identifying information
• Instructions
• Performance outcomes and/or results
achieved (or not achieved) on objectives
• Performance factors / competencies / work
behaviors
• Employee signature and approvals
Other information
• Employee comments
• Summary of one to three major achievements
• Strengths / areas for development
• Overall rating
• Plan for development (if not elsewhere)
• Performance plan for next period (if not elsewhere)
Stage 5 – Reward
Measure
Provide Feedback
Performance
© Dr. Dianna Stone
Organization Seeks
Individual Seeks
Information On Which
Extrinsic Rewards
To Base Rewards
Requirements of Effective
Performance Management
• Relevant to job
performance
• Distinguishes Effective &
Ineffective Performance
• Fair & Acceptable
Performance Standards
• Managers assume
standards are clear
• Communicate -
What is to be done?
• How well should it
be done?
Performance Measures
• Objective Measures - Hard Criteria
$ Sales Personnel Data Tardiness
Units Produced Absence Rate
Error Rate Turnover
• Weaknesses
– Performance Modified by Situation - Opportunity Bias
– System Responsible for 96% of Variance - Person 4%
(Deming)
– Objective measures do not apply to all jobs