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What is Performance?
Performance is what is expected to be delivered by an individual or a set of individuals (team(s)) within a time frame. The expectations may be in terms of,
Results or efforts Tasks Quality, with specification of conditions under which it is to be delivered.
5. Input-Output Relationships
Process measures
Finally, Performance of an individual in organizational setting may therefore be defined as the output delivered by an individual in relation to a given role during a particular period of time under the set of circumstances operating at that point of time .
A process for communicating employee performance expectations, maintaining ongoing performance dialogue, and conducting annual performance appraisals; A procedure for addressing employee performance that falls below expectations; A procedure for encouraging and facilitating employee development; Training in managing performance and administering the system; and A procedure for resolving performance pay disputes.
1. PERFORMANCE AGREEMENTS
Performance Agreements form the basis for
Development Assessment Feedback in the Performance management process
PERFORMANCE AGREEMENTS
Defining role requirements in terms of:
Key results expected What role holders need? Competencies required Upholding the organization s core values On-going role or work objectives Targets Tasks/projects Behaviour
Objectives
PERFORMANCE AGREEMENTS
Criteria for Objectives
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 time scale.
PERFORMANCE AGREEMENTS
Performance Measures: Achievement of objectives Competence Quality Contribution to team Customer care Working relationships Productivity
Flexibility Skills/learning targets Aligning personal objectives with organizational goals Business awareness Financial awareness
PERFORMANCE AGREEMENTS
Performance planning
agreement between the manager and the individual To achieve objectives raise standards improve performance and develop the required competencies
2. MANAGING PERFORMANCE THROUGHOUT THE YEAR performance management is a continuous process that reflects,
Direction Monitoring Measuring performance Actions taken
3. REVIEWING PERFORMANCE
A formal review in an organization takes place once or twice yearly. This provides a focal point for the consideration of key performance and development issues. This performance review meeting is the means through which the five primary performance management elements
agreement, measurement, feedback, positive reinforcement and dialogue can be put to good use.
REVIEWING PERFORMANCE
The review should be rooted
in the reality of the employee s performance. Concrete not abstract it allows managers and individuals to take a positive look together at how performance can become better in the future and Problem solving
REVIEWING PERFORMANCE
Criteria for assessing performance
The criteria for assessing performance should be balanced between:
i. achievements in relation to objectives; ii. the level of knowledge and skills possessed and applied (competences); iii. behaviour in the job as it affects performance (competencies); iv. the degree to which behaviour upholds the core values of the organization; v. day-to-day effectiveness.
REVIEWING PERFORMANCE
Conducting a performance review meeting: Be prepared Work to a clear structure. Create the right atmosphere Provide good feedback Use time productively Use praise Let individuals do most of the talking Invite self-assessment. Discuss performance not personality Encourage analysis of performance Don t deliver unexpected criticisms Agree measurable objectives and a plan of action
Introduction
Organizations use strategic planning to,
Identify objectives/ initiatives, Linking objectives to the organizational vision, Daily activities
Designing of PMS
Performance management systems are not generic or easily passed from one company to another; their design and administration must be tailor-made to match employee and organizational characteristics and qualities. PMS should focus on
Employee performance w.r.t supervisor s expectation Employee should know how the performance is viewed. Communication between employee superior
1. Organizational and employee objectives: Effective performance evaluation system is to determine the organization s objectives.
These are then translated into departmental and then individual position objectives (KPAs) personal performance targets.
This allows the employee to know up front the standards by which his/her performance will be evaluated. This process involves clarifying the job role, job description and responsibilities to wider goals.
2.
Training
3.
Frequency of appraisal
Employee reviews should be performed on a frequent and ongoing basis. By conducting reviews frequently two situations are eliminated:
selective memory by the supervisor or the employee; and surprises at an annual review.
4.
Maintaining records
They establish patterns in an employee s behaviour that may be difficult to spot by typical incident-by-incident supervision (Crane, 1991). Careful review of the records helps avoid the selective memory and helps plot appropriate actions. Well maintained records are essential if the need arises to discipline, demote or dismiss an employee. It is particularly helpful if employees are themselves responsible for part of the process of record-keeping.
5.
Measurement systems
A performance appraisal system which ranks employees according to a numerical rating tends to lead to a great deal of average performers
Eg. On a scale of 1-5
This will help the employees to clearly understand that the measurement system is accurately reflecting the true level of performance for every employee.
6.
the front-line supervisor is responsible for conducting the performance review. However, a multiple rater system provide a form of triangulation that results in ratings in which employees and managers have greater confidence. With large spans of control, several supervisors may work with an individual employee. The input from all supervisors about the employee s performance is required to complete a thorough performance review. Appraisal techniques
Self appraisal, rating, ranking, 360-degree feedback
7.
Research says the link is often unsatisfactorily established and even less often maintained to the satisfaction of employees and supervisor/ organization. Helps motivate and commit the employee to the appraisal process. It also allows the employee to distinguish clearly how successful or unsuccessful completion of objectives affects them directly.
8.
Legal issues
Process
Vision
Report/Review
Corporate plans
Section Plans
Implementing PMS
Unit I, Session 4
23rd Aug, 2011
Implementation Process
STEP 1
Define Mission & Desired Outcomes Practices: 1. Involve stakeholders 2. Assess environment 3. Align activities, core processes, & resources
STEP 2
Measure Performance Practices: 4. Produce measures at each organizational level that demonstrate results, respond to multiple priorities, and link to responsible programs 5. Collect data
STEP 3
Use Performance Information Practices: 6. Identify performance Gaps 7. Report information 8. Use information 9. 10. 11. 12.
Reinforce Implementation Practices: delegate decision-making with accountability Create incentives Build expertise Integrate management reforms
Organizational readiness also means making sure that existing planning and decision making structures can accept performance results so they can be used
Key Lessons Learned for Effective Implementation 2. Follow a Simple Measure Selection Process
Extremely complex should take a balanced approach to goals, objectives, and related measures Should measure, establish baselines and targets, comparing against benchmarks, and monitoring progress for continual improvement.
Implementation mistakes
Over criticism of the past and over projection of the new or changed system System introduced with fanfare but inadequate effort to help in its implementation Lack of organizational support Lack of competencies in HR department Image of the HR department and inability to promote a sense of ownership of the system among the line managers Lack of follow up on the part of HR department Top management commitment Past experience with all the systems Nature of the system
Nature of Goals
Job Content (Accountabilities) Performance Requirements (Goals) Performance on the Job
Goals are written statements of measurable conditions that will exist when a job is satisfactorily done Goals link actual performance with role responsibilities Taken together, these constitute the role purpose Goals describe how accountabilities are actualised Achievable goals spell out requisites that provide guidance to the goalseeker:
Person, or the role, which has primary responsibility for achieving the goal Key activities or means for achieving the goal Measurable indicators, targets or levels of achievement for key-result areas Completion date
Performance Measures
Provide evidence of the extent to which goal is achieved Becomes basis for monitoring, control and feedback on performance Good-quality performance measures Relate to results (outputs) not efforts (inputs) Are within the employees control to achieve Are observable and quantitative for which measurement data are available Indicate positive or negative performance Positive standard: What organisation wants that goal to achieve Negative standard: What organisation doesnt want to see intermediate or final outcomes that show that the goal has not been achieved
Potential Appraisal
Unit I, Session 7
26th Aug, 2011
Potential Appraisal
In a competitive world, past achievements do not always guarantee future success. To face competition, firms need to advance at a high speed in all areas:
technology, processes, management, finances, quality, costs, new market creation, new product development, and above all increased efficiency, motivation and productivity on the part of employees.
Potential Appraisal is an assessment of the extent to which a given individual has the potential to perform a new task/job. (Unlike promoting in the same vertical) The best way to judge a persons potential and therefore ability to succeed in the new role is to actually put the person on job and assess him. However the organization cannot afford to take risks by assigning new roles. For this the Assessment Centre methodology gains significance
Assessment Centre
An assessment centre is a comprehensive, standardized procedure in which multiple assessment techniques such as situational exercises and job simulation (business games, discussions, reports and presentation) are used to evaluate individual employees for a variety of decisions. Most frequently the approach has been applied to individuals being considered for selection, promotion, placement or special training and development in management.
The tests are selected for assessment taking the following points into consideration
Objective what needs to be measured; Reliability and validity; Length of time Availability of qualified experts Cost involved
7. Presentations