PERFORMANCE MANAGEMENT UTTAM ACHARYA SHAILAJA UPADHYAYA Objectives 2

PERFORMANCE MANAGEMENT -UTTAM ACHARYA SHAILAJA UPADHYAYA

Objectives 2 Explain performance planning, performance monitoring and performance appraisal. Apply appropriate performance appraisal tools Analyze the issues and challenges of performance appraisal

Contents 3 Performance management Performance planning and monitoring Performance appraisal tool and techniques Issues and challenges of performance appraisal

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 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

13 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

14 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

15 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, feedback Reinforces Empowers employees

Contribution of performance management- employee 16 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 17 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 18 ü ü ü Clarify organizational goals Facilitate organizational change More appropriate for administrative actions

Performance managementemployee Exercise Please state ; In which area that you perform well. . ? 3/3 persons

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

Performance planning 23 PLAN PERFORMANCE (Strategic, Operational Plans Job Clarification) SUPPORTING PERFORMANCE (Monitoring, Coaching, Feedback) FINAL REVIEW OF PERFORMANCE (Results vs. Expectations)

Features of performance plan 24 Discussion about performance management Encouragement Guidance and orientation/training for basic skills Joint agreement Feedback Review

Performance agreement 25 KRA-Key result areas � Areas - job holders are accountable for the achievement � Principle accountabilities � Will be quantified as targets � If not quantifiable; basis for defining performance standard Objectives and standards of performance Performance measures and indicators Attributes and competencies

PBIS NASC 2017

27 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

Planning process 28 Vision-mission- objectives Department/Unit objectives Individual objectives � Operational � Personal competencies Action plan-KRA, KPA, Indicators Performance Feedback Review

Individual work objectives 29 Consistent (with Orgn. Dept. Unit objectives) Precise Challenging Measurable Agreed Time related Team work oriented

Setting performance 30 Key Result Area-Responsibility Key Performance Area-Tasks Key Performance Indicator-Measurement-quantifystandardization

31 The performance management process Mission and value statement Objectives (org. dept. individual-aligning) 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

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

Performance Monitoring pu t-o re ut la pu tio t n In ce s an te m a or in rf ord Pe b f su O Monitoring of performances of any organizational activity need to focus on three major dimensions Goal achievement

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

35 What is performance appraisal?

Performance and Appraisal Performance artistic presentation manner of functioning working effectiveness thing accomplished accomplishment of something display of behavior Appraisal Valuation Evaluation

Performance Appraisal Defined It communicates to employees how well they are performing the job and what they can do to improve It has three main purposes: � Improve employee performance in the present job � Prepare employees for future opportunities in the organization � Provide a record of employee performance to be used as a basis for future management decisions 11 -37

What is Performance Appraisal? “concerned with the process of valuing a person’s worth to an organization with a view to increasing it” Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee, and Also the future potential of the employee. Its aim is to measure what an employee does.

Performance appraisal-periodic rating Systematic, Periodic, and Impartial rating of an employee’s excellence: “in the matters pertaining to his/her present job and potential for a better job”. � Systematic way of reviewing and assessing the performance of an employee : during a given period of time and planning for his future � Employees’ Performance: Time and Plan �

40 Why do we need performance appraisal ?

Use of Performance Appraisal Administrative purposes � Working conditions � Promotions � Termination � Rewards Developmental purposes � Improving Performance � Strengthening job skills � Providing feedback � Counseling � Training

Performance Appraisal in Organization • 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

Process Of Performance Appraisal ESTABLISHING PERFORMANCE STANDARDS ways to know degrees of an employee’s contribution to the organizational goals and objectives. COMMUNICATING THE STANDARDS MEASURING THE ACTUAL PERFORMANCE COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE DISCUSSING RESULTS DECISION MAKING

Techniques and tools 44 Ranking method Paired Comparison Confidential Report Essay Evaluation Critical Incident Checklists (listing effective and ineffective behavior) Graphic Rating Scale(QTQC-other attributes) BARS Forced Choice Method (choose one activity among alternatives) MBO (how well accomplish the org objectives) Field Review Technique Performance Test

Graphic Rating Scale How courteous is this front desk representative towards the customers? 1 Very Discourteous Courteous 2 3 Discourteous Neither Courteous nor Discourteous 4 Courteous 5

Behaviorally Anchored Rating Scale (BARS) 1 2 3 4 5 6 7 Ignores customer who needs help Keeps customer waiting unnecess arily Fails to thank customer for purchase s Answers customer s questions promptly Complete s transactio ns in a timely manner Greets customer s pleasantl y and offers assistanc e Always tries to sincerely help customer s locate items to suit their needs

Case analysis 47

Who Appraises Performance? Supervisors Self-appraisals Peer appraisals Subordinate appraisals Customer/client appraisals Multiple raters 360 -degree appraisal

Issues and challenges Lack of objectivity Halo error (Rate employees the same on every trait) Stereotype Leniency/strictness Central tendency Recency effect (Focus on recent behavior and impression) Similarity (similar values and interest to the reviewer) Personal bias Manipulating the evaluation

Conclusion : How PM works 50 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

Performance Evaluation System in Nepal (ka. sa. mu) of Gazetted staff- rating by the Supervisors (Go. N) Components Excellent Good Supervisor Reviewer (5) (4) Total quantity of performed works Costs total performed works Total Time spent for performed work Quality of total performed works Total Acceptable Unsatisfactory (3) (2)

Performance Evaluation System in Nepal(example) (ka. sa. mu) of Gazetted staff- rating by the Review Committee (Go. N) Components Knowledge and skill about the subject matter Quality & Quantity of Action Plan Use of proficiency & decision capability Capability to bear work load Creativity and Leading capability Timely filling the performance evaluation form in appropriate manner and capability of evaluation Honesty, Morale and politeness Sensitivity on Professionalism (keeping confidentiality and dignity) Communication skill and individual behavior Capability of organize the work and give leadership Excelle n(1. 0) Good (. 75) Acceptabl e (. 5) Unsatisfactory (. 25)

Reflecting the world U. S. Military was one of the very first organizations to adopt performance ratings as a tool to dismiss poor performers during the World War I era (Cappelli and Tavis 64). Evaluations are more of accountability tools. NASC 2017