Performance Management Objective Explain What is Performance Management

Performance Management

Objective Explain What is Performance Management Describe the Elements of Performance Management System Describe the Objectives of Performance Management Explain the Performance Management Process Explain the Key to Performance Management List the differences between Performance Appraisal and Performance Management Explain the various Performance Appraisal Methods List the Steps in Writing Performance and Goals Explain the Tips for Successful Performance Management Explain What are Key Performance Indicators Describe the Challenges of Performance Management Explain the Sources of Errors in Performance Management

Introduction Helios Inc. has several employees working across different departments. Lately, Helios has been recording decreased profits. Upon auditing, they found that there was low performance across many departments.

Introduction Helios could have easily used an effiective Performance Management System to monitor and manage the performance of it's workforce. Performance Management is an important management tool which is critical for every organization. Let us learn about Performance Management in detail.

What is Performance Management? It is integrated, because it effects four types of integration: Vertical Goals Functional Human Resource

Definition of Performance Management has been defined as: “A strategic and integrated approach to delivering sustained success to organizations by improving performance of people who work in them and by developing the capabilities of teams and individual contributors” An important aspect of performance management is performance appraisals where a clear set of quantifiable goals and objectives are used to measure an individual performance against these goals.

Elements of Performance Management System The key elements of a Performance Management System include the following: A Formal Compensation Philosophy Statement Salary Administration Program A Formal Audit/Success Rating overview on an annual or periodic basis with disclosure of results to management Let’s look at each in detail.

Principles of Performance Management • Supports business-oriented strategy • Is values based • Communicates organizational mission • Fulfils responsibilities to organizational members • Enables employees to manage own performance • Manages expectations (clarifies roles and responsibilities) • Creates partnership between management and employee • Emphasizes importance of measurement, feedback, and reinforcement • Empowers employees • Natural extension of management

Objective of Performance Management • To review the performance of the employees over a given period of time • To judge the gap between the actual and the desired performance • To help the management in exercising organizational control • Helps to strengthen the relationship and communication between superior – subordinates and management – employees • To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future

Importance of Balanced Scorecard Strategic Planning Mission & Vision Balanced Scorecard • • • • Activity Based Costing Economic Value Added Forecasting Benchmarking Market Research Best Practices Six Sigma Statistical Process Control Reengineering ISO 9000 Total Quality Management Empowerment Learning Organization Self-Directed Work Teams Change Management

Possible Performance Measures Customer Perspective Financial / Regulatory Perspective Internal Perspective Learning and Growth Let’s look at each in detail.

Performance Management for the Organization To give feedback to the staff about their performance. Encourages good work and points towards improvement opportunity Helps setting measurable targets and objectives Increases Role Clarity

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