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HISTORY OF PERFORMANCE MANAGEMENT

Presenting by:

 Sharath sasi

 Manjusha

 Sumeena

 Nithya

 Jyothi

 Midhula

Kiran

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Performance Management….. 

 Performance Management may be defined

as a planned and systematic approach to

manage the performance of individuals

ensuring their personnel development andcontribution organizational goal…… 

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Antecedents………… 

  Imperial Rater

- Koontz

- In 1971- china

- To evaluate the performance of official

family. 

  Formal Rating

- For the members of the society of Jesus.

- Ignatius Loyola

- Between 1491-1556s

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Continued…… 

  First formal monitoring System

- by Frederick Taylor and his

followers.

- before 1st world war.  Rating for officers

- in the US armed services

- in 1920- spread to the UK.

- did the factory based US systems.

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Continued…… 

  Merit Rating  

- in USA and UK

- in 1950 & 1960

- it rechristened performance appraisal.

 Management by objectives

- in 1960 & 1970

- done with the critical incident techniqueand behaviorally anchored rating scale.

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Continued…… 

  Result oriented performance appraisal

- in 1970

- existing now….

  Performance management

- 1st used in 1970

- didn't become recognized process until

the later half of the 1980s. 

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Merit Rating and performance

appraisal…… 

WD Scott an American Pioneer introducedrating of the abilities of workers in Industry

 prior to 1st World war.

Man to man compensation scale was inventedhim by the influence of Taylor.

Later it was known as WD Scott scale and it was

used to rate the efficiency of US Army officers.

It was removed the seniority system &

introduced an era of merit based promotion.

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 ATTACKS ON MERIT RATIN AND

PERFORMANCE APPRAISAL

 Attacks on merit rating was mounted

by McGregorHe suggested that the emphasis

should be shifted from appraisal to

analysis

PM should be the analysis of the

behavior and not the assessment of

personality

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 Another attack was mounted by Rowe.He concluded that

 Appraisers are reluctant to appraise

The follow up was inadequate

No attempt should be made to clarify

or categories performance in terms of

goals

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The attack on merit rating was basedon the assessment of traits but it is

independent on the situations and the

people with whom an individual isinteracting

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Management by objectives…. 

 Peter F Drucker – 1955

 He emphasized that

 “ an effective Management must

direct the vision and effort of allmanagers towards a common goal…’' 

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Continued…. 

McGregor's contribution – from TheoryY

- In 1960..

- The central principle he derived fromtheory y is integration:

- This principle of management by

integration and self control which heemphasized should be regarded as a

strategy or a way of managing people.

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Continued…. 

He described MBO as a continuous process of

 reviewing and restarting of …… 

 clarifying the key result

 providing conditions

Measure and discuss the progress

towards the result

Developing management training

plans

Increasing the motivation of

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Criticisms of MBO… 

Levinson in 1970

Schaffer in 1991

Fowler

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CRITICAL INCIDENT TECHNIQUE

Developed in the year 1954

Developed by Flanagan

Cri tical incident ??

An except ional behavior o f an

employee at work .

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Flanagan advocated that

Managers should keep record of

behaviors

Managers should maintain a specially

designed book for recording the

behavior

These must be used as evidence of

actual behavior during review meetings

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disadvantages

Black book

Time consuming

Presence of critical incident

Identification of critical behavior

Conversion of incident reports into

overall rating

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  ANCHORED RATING

SCALES

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Behaviourally anchored rating scalesare designed to reduce the rating

errors , which are typical of

conventional scales

MANAGERS RATE EACH

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MANAGERS RATE EACH

DIMENSION ON A SCALE, AS

IN THE FOLLOWING EXAMPLEContinually contributes new ideas andsuggestions

Take a leading role in group meetings

but is tolerant and supportive ofcolleagues and respects other

people’s point of views 

Listens to colleagues and keeps themreasonably well informed about own

activities

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Generally receptive to other people’sideas and willing to change own plans

to fit in

Not very interested in what others aredoing or in keeping them informed

Goes own way, completely ignoring

the wishes of other team membersand taking no interest in the

achievement of team objectives

Th E i t l C t t f

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The Environmental Context of

Performance Management

The business environment exercises both a direct and anindirect influence on the conduct of performance assessment.Whereas legislation has specific consequences, particularly inthe USA, most environmental factors have a diffuse and oftenunrealized effect on assessment and pay structures. It is likelythat different individuals - and organizations - will respond invarying ways to these factors. Some will be highly sensitiveto possible legal implications, practice elsewhere, and the

state of the job market; others will be virtually immune tothese influences. The main environmental factors identified ashaving a contextual influence on performance management

 Legislation:- The employment relationship between workersand employing organizations is seen as a contractual matter.This relationship is expressed in formal or legalistic

statements of obligation between the two, such as writtenemployment contracts, job descriptions and performanceobjectives. Performance measurement has the purpose ofensuring that the employee fulfils the contract.

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Business culture

Cultural norms dictate 'acceptable' standards of performance and the management methods by whichthey are assured. For example, in a number of Asiansocieties, the employment relationship is a matter ofhonour, and obligations are regarded as morally, rather

than contractually, binding between the two parties. In asituation where people are automatically expected to dothe job as agreed, the role of performance assessment isquestionable.

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Achievers and non-achievers

Several researchers have attempted toidentify the important factors leading to

successful performance by comparing

recognized high achievers with average performers.The consistent themes such as:

 perseverance, ability, contacts (through

networking), self-reliance, thinking bigand good time management.