3.6 a Task 1 - Performance Management

8/12/2019 3.6 a Task 1 - Performance Management

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Performance Management


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The fulfillment of a given taskmeasured against preset knownstandards of accuracy, completeness, cost, and speed.


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The term management has different meanings.

It is important to understand different definitions

MANAGEMENT as a PROCESS

MANAGEMENT as a DISCIPLINE

MANAGEMENT as PEOPLE

MANAGEMENT as a CAREER


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MANAGEMENT as a PROCESS

Management is a process involving

certain functions and activities that

managers must perform.

Managers also use principles in

managing which are generally

accepted tenets that guide their

thinking and action.

This is what managers do.


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DISCIPLINE

Classifying Management as a disciplineimplies that it is an accumulated body of

knowledge that can be learned.

Thus Management is a subject with

principles, concepts and theories.


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MANAGEMENT as PEOPLE

It implies people who guide, direct,

and thus manage organizations.

The perspective of management as

people refers to, and emphasizes the

importance of the employees who

managers work with and manage in

accomplishing an organization'sobjectives.


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MANAGEMENT as a CAREER

People who devote their working

lives to the process of

management actually pursuemanagement as a career.


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MANAGEMENT is a process undertaken by one or morepersons to coordinate the activities of other persons to achieve

results not attainable by any one person acting alone.


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Planning

Setting goals:

long-term goals,intermediate goals,short-term goals

Developingstrategies: how toreach the goals?

Determining

resources: capitaland manpower

Setting standards:target, e.g. cross$1million.


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Organizing

Allocating resources,assigning tasks,establishing procedures

Preparing organizationchart

Recruiting, selecting,training and developingemployees

Matching the job withemployees: effectiveness

and efficiency


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Directing/Leading

Guiding and motivating

Giving assignments

Explaining routines

Clarifying policies

Providing feedback


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Controlling

Establishing

standards Measuring results

Monitoring

performance Taking corrective

action


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Management Functions

OrganizingDetermining whatneeds to be done,and who is to do it.

LeadingDirecting andmotivating all

involved partiesand resolving

conflicts

PlanningDefining goals,

establishingstrategy, and

developingsub plans to

coordinateactivities

ControllingMonitoring activitiesto ensure that theyare accomplished

as planned

Achieving thePerformance


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Scenario


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Definition of

Performance Management (PM)

1. Continuous Process of

Identifying Measuring Developing

The performance of individualsand teams


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Definition of PM (continued)

and

2.Aligning performance

with

Strategic Goals of the

organization


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Concepts of PM

deals with two components :

1. Continuous Process :Ongoing, never-ending process of setting goals and objectives,

observing performance, and giving and receiving feedback

2. Strategic Goals and Mission :Ensureemployees activities and outputs should matched with

organizations goals and consequently, help the organizationto gain competitive business advantage.

PM therefore creates a direct linkbetween employeeperformance and organizational goals / employee contribution

to the organizational goals.


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An Ideal PM System:

14 Characteristics

1. Congruent with organizational strategy

2. Thorough

3. Practical

4. Meaningful

5. Specific

6. Identifies effective/ ineffective

performance7. Reliable


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An Ideal PM System:

14 Characteristics (continued)

8. Valid

9. Acceptable and Fair

10. Inclusive11. Open (No Secrets)

12. Correctable

13. Standardized14. Ethical


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Congruent with organizational strategy

Consistent with organizations strategy

Aligned with unit and organizational

goals


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Thorough

Steps

All employees are evaluated (including

Managers)

All major job responsibilities are

evaluated (including behaviors and

results)

Evaluations cover performance for

entire review period

Feedback is given on both positive and

negative performance


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Practical

Available

Easy to use (User friendly software)

Acceptable to decision makers Benefits outweigh costs (time, effort

and money)


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Meaningful

Standards are important and relevant

System measures ONLY what employee cancontrol

Results have consequences Evaluations occur regularly and at

appropriate times

System provides for continuing skill

development of evaluators


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Specific

Concrete and detailed guidance to

employees

Whats expected

How to meet the expectations

Identifies


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Identifieseffective and ineffective

performance Distinguish between effective and

ineffective

Behaviors

Results

Provide ability to identify employees

with various levels of performance


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Reliable

Consistent

Free of error

For egIf two supervisor provides

ratings for the same employee and

performance dimensions, ratings

should be similar on basis of their

judgement


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Valid

Relevant (measures what is important)

Not deficient (doesnt measure

unimportant facets of job)

Not contaminated (only measures what

the employee can control)


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Acceptable and Fair

Perception of Distributive Justice Work performed Evaluation received

Reward

Perception of Procedural Justice

Fairness of procedures used to:

Determine ratings

Link ratings to rewards


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Inclusive

Represents concerns of allinvolved

When system is created, employees

should help with deciding What should be measured

How it should be measured

Employee should provide input on

performance prior to evaluation

meeting


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Open (No Secrets)

Frequent, ongoing evaluations and

feedback

2-way communications in appraisal

meeting

Clear standards, ongoing

communication

Communications are factual, open,

honest


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Correctable

Recognizes that human judgment is

fallible

Appeals process provided


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Standardized

System

Ongoing training of managers to

provide

Consistent evaluations across

People

Time


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Ethical

Supervisor suppresses self-interest

Supervisor rates only where she has

sufficient information about the

performance dimension

Supervisor respects employee privacy


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Role of PM


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Strategic Purpose

Link individual goals with

organizations goals

Communicate most crucial business

strategic initiatives


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Administrative Purpose

Provide information for making

decisions re:

Salary adjustments

Promotions

Retention or termination

Recognition of individual performance

Layoffs


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Informational Purpose

Communicate to Employees:

Expectations

What is important

How they are doing

How to improve


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Developmental Purpose

Performance feedback/coaching

Identification of individual strengths

and weaknesses

Causes of performance deficiencies

Tailor development of individual

career path

O i ti l M i t


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Organizational Maintenance

Purpose

Plan effective workforce

Assess future training needs

Evaluate performance at

organizational level

Evaluate effectiveness of HR

interventions {For egWhether employees performat higher levels after participating in training program me }


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Documentation Purpose

Validate selection instruments

Document administrative decisions

Help meet legal requirements

Si ifi f PM


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Significance of PMEmployee Employers Dept/Organization

Clear sense of what you areto do and why youre doing it

Capitalize on your strengths

Know what you need to dodifferently

Understand how you

contribute to the departmentand organization

Recognition and appreciationof your contributions

More engaged in what you do

Are possibly happier at work

Further your career interests

Increased job satisfaction

Clearly defined expectations

Focus on future goals anddevelopment

Greater communication

Better employee relations

Awareness of employee careerinterests and strengths

Determine progression to roles thatbetter utilize skills

Enhanced effort in quality andproductivity

Less absenteeism

Have a more unified team

Less costly turnovers

Improved leadership skills

Know what kind of help youremployees need from you

Good grasp of workloads

Historical record and comparisons

Better knowledge of talentpool

Coaching, Training, &Development needs

Succession planning

HR planning to achieveUniversitys strategic goals as

they evolve.

Adapt more quickly and easilyto change

A more engaged and focusedwork force

A fair way to link performanceto rewards.

Retain top performers

Greater department moraleand community spirit

Learn more about theeffectiveness of our selectionprocedures.

Administer fair incentives


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Significance of PM

GAPActualPerformance

(Where you are)

Optimal

Performance(Where you want to

be)

Performance

Management


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Performance appraisal

Performance appraisal is the

process whereby an individuals

performance is reviewed against:

previously agreed goals, and where

new goals are agreed which will

develop the individual and improve

performance over the forthcomingreview period.


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The Process of Appraisal


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Factors involved in Performanceduring interview process


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P t t l t


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Parameters to evaluate


P t t l t


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Parameters to e al ate


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PM is NOT performance appraisal

Performance Appraisal Performance Management

Focusis on top down assessment Stresses on mutual objective setting

through a process of joint dialogue

Performed annually Continuousreviews are performed

Usage of ratingsis very common Usage of ratingsis lesscommon

Focus is on traits Focus is on quantifiable objectives,

values and behaviors

Lacksongoing feedback Ongoingfeedback

Are very much linked with pay Is not directly linked with pay

Driven by HR Driven by Line Manager


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Performance Management Process

Planning thePerformance

Supporting thePerformance

Reviewing thePerformance(Ongoing & Cyclic)

NeedsDevelopment

Rewards

Agreeing to job

deliverables and

performance

expectations

Delegation

Empowerment

Coaching

Informal & formal

feedback against

performance


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Employee Evaluation Tools

Annual


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Statement of

Achievements

and Results

List the WORK

Describe RESULTS

Concrete EXAMPLES

Performance


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List the WORK

Describe RESULTS

Concrete EXAMPLES

Performance

Factors


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Performance management and

strategic planning linkages.


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Strategic Planning

Is a process that involves describing theorganizations destination(goals), assessingbarriersthat stand in the way of destination, andselecting approachesfor moving forward.

Main goalof strategic planning is to allocateresourcesin a way that provides organizationswith a competitive advantage.

Strategic plan is a blueprint that defines howorganization will allocate resources in achevingits goals.


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Strategic Plan : Purposes

Helps to define organizations identity i.e. WHO THEY ARE AND WHAT ISPURPOSE

Helps organizations to prepare for the future (Knowing where organization

wants to go is a key first step in planning HOW TO GET THERE)

Enhances ability to adapt to environmental changes (Knowledge)

Provides focus and allows for better allocation of resources (Improved

allocationof resourcesto stimulate growthand improve profitability)



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(Contd.)

Produces and organization culture of cooperation (Common goalcanbe set and organization culture is a key competitive advantage)

Allows for the consideration of new options and opportunities

(Corporate eye-openerand new opportunities such as expanding tonew markets or offering new products)

Provides employees with information to direct daily activities (helps in

identifying behaviorsand results)

Strategic plan provides a critical information tobe used in performance management system

Process of linking Performance


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gManagement to the Strategic

PlanOrganizations Strategic Plan

Mission, Vision, Goals, Strategies

Units Strategic PlanMission, Vision, Goals, Strategies

Job DescriptionTasks, KSAs

Individual and Team PerformanceResults, Behaviors, Developmental Plan

Critical to involveall levels of

management

Critical to involve all

employees


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Strategic Planning : Steps

1. Environmental Analysis

2. Mission

3. Vision

4. Goals

5. Strategies


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Environmental Analysis

Identifies external and internal

trends

To understand broad industry issues

To make decisions using big picture

context


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External trends

Opportunities: environmental characteristics that

can help the organization succeed

Threats: environmental characteristics that

can prevent the organization frombeing successful

External trends


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External trends

Factors to Consider

Economic

Political/legal

Social

Technological

Competitors

Customers

Suppliers


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Internal Trends

Strengths:

internal characteristics that the

organization can use for its advantage

Weaknesses:

internal characteristics that can hinder

the success of the organization

Internal trends


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Internal trends

Factors to Consider

Organizational structure

Organizational culture

Politics

Processes

Size

Gap Analysis


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Gap Analysis

Analyzes:

External environment

(opportunities and threats)

vis--vis

Internal environment

(strengths and weaknesses)

Gap analysis determines:


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Gap analysis determines:

Opportunity +Strength =Leverage

Opportunity + Weakness =

Constraint

Threat + Strength = Vulnerability

=

G


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Gap analysis - Activity

Consider the organization you are currently working orhad worked past.

Try to identify one leverage, one problem, one

constraintand one vulnerability. Based on analysis ofopportunities, threats, strength and weaknesses.

What was situationlike?

What were the results?

Mission


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Mission

A good missionstatement answers:

Why does the organization exist?

What is the scope of the organizations

activities?

Who are the customers served?

What are the products or services offered

Mission Statement contains:


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Mission Statement contains:

A. Information on organizations Basic product/service to be offered

(What?)

Primary market/customer groups(Whom?)

Unique benefits and advantages ofproduct/services (What?)

Technology to be used

Concern for survival through growthand profitability

Mission Statement may contain:


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Mission Statement may contain:

B. Information on organizations values andbeliefs

Managerial philosophy

Public image seek by organization

Self-concept of business adopted by

Employees

Stockholders

Vision


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Vision

Statement of future aspirations

(about 10 years in future)

Focuses attention on what is

important

Provides context for evaluating

Opportunities Threats

A Good Vision Statement is:


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Good s o State e t s

Brief (easy to remember)

Verifiable (Eg : One of the mostdesirable companies to work for in

our industries, focusing on

establishing work atmosphere in

which our employees can excel ?)

Bound by a Timeline

Current (Outdated statementNOT USEFUL, but updated on-

going basis )

Focused (threefour

organizations performance tobe highlighted)

Understandable (Clear &Straightforward)

Inspiring (Feel Good)

A stretch (Reality. For eg :

OLD VERSION: Putting acomputer on every desk andevery home

NEW VERSION : Putting acomputer in every car and very

pocket)


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Examples: Mission and Vision Statements

Otis Elevator

Our miss ionis to provide any customer a means ofmoving people and things up, down, and sideways

over short distances with higher reliability than anysimilar enterprise in the world.

Our Vision - We intend to be the recognized

leader in service excellence among allcompaniesnot just elevator companies

worldwide

Examples: Mission and Vision

St t t


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Statements

Our businessis renting cars. Our v is ion is total

customer satisfaction.

Avis Ren t-a-Car

G l


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Goals

Purpose of Setting Goals Formalize expected achievements (organization hopes to

achieve medium to longrange period i.e. next 3 years and so on)

Provide motivation (Source)

Provide tangible targets

Provide basis for good decisions (By keeping desireoutcomes in mind)

Provide basis for performance measurement (allow forcomparison what needs to be achieved versus what each unit, group and

individual is achieving )

St t i


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Strategies

Create strategies or Game Plans orHow to

procedures to address issues of:

Growth

Survival

Turnaround

Stability

Innovation

Leadership

How the HR Function


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contributes:

Communicate knowledge of strategic plan :

egMission, Vision and Goals to all employees

Provide knowledge of KSAs needed for strategyimplementation :

Job Analysis, Job descriptions, Types of employees

should be hired and What types of plans should be

put in place to develop needed KSAs internally

Propose reward systems :

Motivate employees to support strategic plan


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3.6 a Task 1 - Performance Management

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