Welcome

Kay Jay Anwer

Performance Management

R U Ready for Chapter 1

An overview of performance management

Definition Purpose & History Discretionary behavior

Human capital Advantage

Performance M. Questions

Chapter 1

Concept of Performance Performance Management & values

Principles of Performance Management

Performance Management Cycle

Performance M. & Performance appraisal

Chapter 1

Impact on organizational Performance The reaction of employees to P. Management Performance and HR The Ethics of Performance Management

Developments in Performance Management

Chapter 1

Performance Management in action

Defined

Performance Management first came into wide use in the HR field in early 1990s

Objective setting Assessment and review Performance related pay

Performance Management in action

Institute of Personnel Management 1992 (Research)

A confusion over the term Performance Management

An appraisal process Performance related pay exercise Training and Development technique

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Performance Management in action

Institute of Personnel Management 1997 (Research)

Much more agreement on term Performance Management

A distinct polarisation between the following thoughts Focused on pay Training and Development led

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Performance Management in action

Definition

A natural process of management contributes to the effective management of individuals and teams to achieve high levels of organizational performance A systematic approach to improving individual and team performance in order to achieve organizational goals (Hendry)

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Performance Management in action

Definition

The development of individuals with competence and commitments, working towards the achievement of shared meaningful objectives within an organization that supports and encourages their achievements (Lockett)

Directing and supporting employees to work as effectively and efficiently as possible in line with the need of the organization
(Waltars)

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Performance Management in action

The overall purpose and aims

Contribute to the achievement of high performance by the organization and its people Reaching and exceeding stretching targets for the delivery of productivity, quality, customer service, growth, profits and share holder value

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Performance Management in action

The overall purpose and aims

To make a good better Share understanding what is to be achieved Develop the capacity of people to achieve it Provide the support and guidance people need to deliver high

performance

To capitalize the full potential of people to benefit of Org.

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Performance Management in action

The overall purpose and aims

Performance Management is concerned with under-performers Positively providing the means to improve the abilities to perform and achieve the organizational goals

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Performance Management in action

A History

(Continued)

The emperors of the Wei dynasty (AD- 221-265) had an imperial rater whose task was to evaluate the performance of the official family. Centuries later, Ignatius Loyola established a system for formal rating of the members of the Jesuit society

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Performance Management in action

A History

The first formal monitoring systems by Frederick Taylor and his followers before World War I. Rating for officers in the us armed services was introduced in the 1920s. The term Performance Management was first used in the 1970s by Beer and Ruh.

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Performance Management in action

PM and Discretionary Behaviour

Discretionary behaviour refers to choices that the people make about they carry out their work and the amount of efforts, care, innovation and productive behaviour they display.

It is the difference between people just doing a job and people doing a great job

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Performance Management in action

PM and Human capital advantage

The goal is to achieve human capital advantage People are most important source of competitive advantage People factor is difficult to replicate unlike design or process

Employing people with valuable knowledge and skills

Organizational performance is dependent on human skills KSA

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Performance Management in action

Performance Management Questions

What do we mean by high performance? Do people understand what is expected of them in terms of performance? How can we align individual and corporate objectives? Can we identify good and poor performance? Can we establish the reasons for good & bad performance? How can we develop & motivate people to perform well? How can we do that fairly, consistently without discrimination

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Performance Management in action

The concept of performance

Performance is regarded in out-put terms The achievement of quantified objectives but it is more than.. It is out-come of activity & endeavour that matter

Qualitative assessment: reference to standard of performance

Performance; What people achieve but how they achieve..

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Performance Management in action

Performance Management and Values

Performance is about upholding the values of the organization Aspect of behaviour but focus on what people do to realise core values;

Concern for quality Concern for people Concern for equal opportunity and operating ethically Integrity Impartiality Professionalism and mutual respect
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Performance Management in action

Principles of Performance Management (Guidelines)

Most people want direction, freedom to get their work done, and encouragement not control. The Performance Management system should be a control system only by exception. The objective is to make it a collaborative development system The entire performance management process-coaching, counselling, feed-back, tracking, recognition and so forth..- should encourage development. When managers and team members ask what they need to be able to do bigger and better things, they move to strategic developments..
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Performance Management in action

Principles of Performance Management

Translates corporate goals in to individual, team & department It helps to clarify the corporate goals

It is a continuous and evolutionary process, performance improves over

time It realise on consensus & cooperation rather than control or coercion

It creates a shared understanding of what is required to improve

performance and how it will be achieved It encourages self-management of individual performance
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Performance Management in action

Principles of Performance Management

It encourages two way communication between seniors & subordinates It requires a continuous feed-back

Feed-back loops enable the experience & knowledge to modify corporate

objectives It measures & assesses all performance against joint agreed goals

It should apply to all staff

It is not primarily concerned with linking performance to financial rewards
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Performance Management in action

Principles of PM

CIPD Research 1997 and 2003/04 (10 maxims)

A management tool which helps managers to manage Driven by corporate purpose and values

To obtain solutions that work

Only interested in things you can do something about and get a visible improvement

Focus on achieving behaviour rather than paper work

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Performance Management in action

Principles of PM

CIPD Research 1997 and 2003/04 (10 maxims)

Its all about how we manage people its not a system Performance management is what managers do: a natural process of

management

Based on accepted principles but operates flexibly Focus on development , not pay

Success depends on what the organization is and needs to be in its

performance culture

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Performance Management in action

The performance Management cycle

Review

Plan

Monitor

Act

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Performance Management in action

The performance Management cycle

Plan;

Agreed objectives and competence requirements; identifying the behaviours required by the organization; producing plan expressed in performance agreements for meeting objectives and improving performance; preparing personal development plans to enhance knowledge, skills and competence and reinforce the desired behaviour

Act;

Carrying out the work required to achieve objectives by reference to the plans and in response to new demands

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Performance Management in action

The performance Management cycle

Monitor;

Checking on progress in achieving objectives and responding to new demands; treating performance management as a continuous process. managing performance all the year around rather than an annual appraisal event Holding a review meeting for a examination assessment of progress and achievements and identifying where action is required to develop performance as a basis for completing the cycle by moving into the planning stage.

Review;

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Performance Management in action

Performance Management & Performance Appraisal

Performance Management Model

Standard Charted Bank

Page No. 14 Assignment 1

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Performance Management & Performance Appraisal

Performance Appraisal
Top down assessment Annual Appraisal Meeting

Performance Management
Joint process through dialogue Continuous review with one or more formal reviews

Use of Rating
Monolithic System Focus on Qualified objectives

Rating less common

Flexible Process Focus on values and behaviors and objectives

Often linked to Pay

Bureaucratic Complex paperwork Owned by the HR Department

Less likely to be directly linked to Pay

Documentation kept to a minimum Owned by a line Managers

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Performance Management in action

The Impact on Organizational Performance

Communicates a shared vision of the purpose and values of organization

Expectation; what must to be delivered and how it should be delivered

People are aware of high performance, how they need to behave to achieve it Enhance motivation, engagement, & commitment to achieve through feedback Provide the basis for formulating personal development & improvement plans Enable people to monitor their own performance and responsible to them Encourage dialogue about what needs to be done to improve performance

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Performance Management in action

Employees reaction to Performance Management

(IPD-97)

You need appraisal to get the best out of people and develop them

What we have moved away from is peoples perception-just marking, someone

depending on how they felt about them. Now theres is evidence They can tell us what they want, just as we can tell them, what we want For me the real strength of the process lies in the continuing dialogue and negotiation as the year goes on You are one on one with your boss

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Performance Management in action

Performance Management and HR

In the past; performance appraisal was driven by the personnel department and often seen by line managers as something imposed on them rather than part of the normal process of managing resources. As described by this book; Performance Management is something that line managers do encouraged, advised and guided by HR, perhaps but is managers who are responsible

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Performance Management in action

Performance Management and Line Managers

Performance management is owned and delivered by line managers It is not a personnel technique run by the HR department Performance management works very well with managers who are competent Less competent with behavioural requirements of their role find it difficult as this approach requires them to make some business judgements and discuss the rational for them

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Performance Management in action

The Ethics of Performance Management

Four Ethical Principles which should be built into the performance management process have been proposed by Winstanley and Staurt-Smith

Respect for Individual Mutual Respect

Procedural fairness
Transparency for decision making

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Performance Management in action

Development in Performance Management

(IPD-1997)

We expect managers who lead this organization to behave in line with the stated core values and competencies must reflect the values and individual performance management assessments are invited to assess how far managers are behaving in line with core values We expect line managers to recognize performance management as a useful contribution to the management for their teams rather than a core criteria Managing performance is about coaching, guiding, motivating and rewarding colleagues to help unleash potential and improve organizational performance To ensure; what we do is guided by our values and relevant to the purpose of the organization 39

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