PERFORMANCE MANAGEMENT UTTAM ACHARYA 9841252849 Objectives 2 Explain

PERFORMANCE MANAGEMENT -UTTAM ACHARYA 9841252849

Objectives 2 Explain the need and process of performance management Analyse linkages of performance management and organizational effectiveness. Identify performance intervention tools and techniques

Contents 3 Need for performance management Performance management process Integrating effects of performance management Performance management tools and techniques

Performance Management

Performance Management = getting work done through/with others Manager’s performance is only as good as his/her employee’s performance Manager’s job = performance management of others Performance = ability * motivation * support

Performance Management 8 Performance refers to “outcomes, results or accomplishments” � Rothwell, 2005

Components of Performance 9 Four components of performance �A performer �Behaviour �Situation �Results Morhman et al , 1989

Performance Managementholistic approach Organizational system Focusing on employee performance Consistently applied throughout organization With a supporting structure

Why do we need Performance management ? 11 Discussion

Need of Performance Management Systems Result/outcome/Impact Correct Performance/Behavior Administer Salary & Wages Plan for Future (promotion, transfer, career dev) Facilitate Decision-Making (counseling, terminations) Facilitate Human Resource Planning Create Culture Building Good Relationships Increase Organizational Loyalty Determine Effectiveness of Selection and Placement Methods

What is performance management? 13 Discussion

14 Performance managementstrategy Performance management is, “a continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization. ” - Aguinis, 2005

15 Performance managementnot “A system that involves employee evaluations once a year without an ongoing effort to provide feedback and coaching so that performance can be improved is not a true performance management system. ” Aguinis, 2005

16 Principle of performance management Supports organization’s strategy Value based Communicates organizational mission Fulfills 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,

Contribution of performance management- employee 17 ü Clarify definitions of Job ü Key result areas KRA, Key performance area, Indicators ü success criteria ü Performance plan ü ü Increase motivation to perform Increase self-esteem Enhance self-insight and development

Contribution of PM-manager 18 ü ü Communicate supervisors’ views of performance more clearly Managers gain insight about subordinates Better and more timely differentiation between good and poor performers Employees become more competent

Contribution of PMorganization/HR 19 ü ü ü Clarify organizational goals Facilitate organizational change More appropriate for administrative actions

Performance planning 21 The term performance planning is used to describe the whole process of �forming an agreement and then � expressing it as a number of actions to be taken by the individual, by the manager or by the individual and the manager jointly

Performance planning (work 22 plan) It is the normal activity of preparing and agreeing programmes for the achievements of the objectives. It is a continuing activity because of the need to revise and update work plans to meet new demands or situations. It may be incorporated specifically into the performance agreement as a record of any decisions made about future

Features of performance plan 23 Discussion about performance management Encouragement Guidance and orientation/training for basic skills Joint agreement Feedback Review

Performance agreement 24 KRA-Key result areas/Principle accountabilities Job holders are accountable for the achievement /outcome Strong positive result realized KPA – Key performance area/ assigned tasks/segregation of duties KPI – Key performance indicators (practical-values, process; directional- following directives; actionable- initiate change how) � Will be quantified as targets, If not quantifiable, basis for defining performance standard / measures and indicators eg. profit, cost etc. Performance Attributes and competencies

Exercise 25 Key Result Area Key Performance Remarks Area Indicator

26 Improving Performance with plan Action at organizational level (leadership, management role etc) Department level Team level Action at the individual level � Select goal � Define expectations � Define performance measures � Monitor: progress � Manage under performance

Individual work objectives 27 Consistent (with Orgn. Dept. Unit objectives) Precise Challenging Measurable Agreed Time related Team work oriented

Setting performance 28 Key Result Area-Responsibility Key Performance Area-Tasks Key Performance Indicator-Measurement-quantifystandardization

29 The performance management process Mission and value statement Objectives (org. dept. individual-aligning) Performance plan Performance agreement (Jobs, goal setting, different forms design) Continuous performance management � Feedback Preparation for review Performance review � Feedback (moderating goals) � Development and training � Performance rating-performance related pay Improved performance

The performance management cycle 30 Performanc e plan Action Performanc e review Monitor feedback and review Performance agreement

Performance management 31 Communicating performance management system Performance agreement Performance plan Performance monitoring, feedback and evaluation Final performance review

Techniques of performance mgmt. 32 discussions

33 Techniques of performance management Job analysis (Job description, Job design, job enrichment) Performance appraisal(evaluation, rating scale) Staff development/Training Performance planning/Monitoring/feedback Coaching and mentoring Counseling Job rotation Rewarding/Praise/Recognition Authority Staff meeting Grievance handling

Conclusion : How PM works 34 nc a m rfor e e p d e v Performanc e effectivenes s ro Imp Coaching /counseling Performanc e agreement Monitoring and review against performance agreement Main performance review/appraisal

Thank you 35