PERFORMANCE MANAGEMENT AT NETWORK SOLUTIONS, INC.

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PERFORMANCE Accomplishment of a given task

measured against pre-set standards of accuracy, completeness, cost, and speed.

Generic Dimensions such as teamwork, know-how , quality

Job’s Actual Duties such as typing speed, communication skills for a receptionist

Competency based appraisals . Here , the idea is to focus on the extent to which the employee exhibits the behaviorally recognizable competencies essential for job. Performance management systems focus more on competencies.

AS A MANAGER YOU SHOULD KNOW WHEN TO …

Give Bonus

Promote

Give Salary Hike

WHEN TO

Transfer

Demote

Fire

PERFORMANCE APPRAISAL

Evaluating an employee’s current and/or past performance relative to his or her performance standards.

Performance appraisals are employed to determine who needs what training, and who will be promoted, demoted, retained, or fired

PERFORMANCE APPRAISAL INCLUDES

Taking corrective

Actions

Setting Performance Standards

Communicating the

Standards

Measuring the actual

Performance

Comparing with the Standards

Discussing the

Results

PERFORMANCE MANAGEMENT

A process that consolidates Goal

Setting, performance appraisal and

development into a single , common

system the aim of which is to ensure

that the employee’s performance is

supporting the company’s strategic

aim.

IT INCLUDES…….

Planning

Monitoring

DevelopingRating

Rewarding Performan

ce Management Process

FORCED DISTRIBUTION METHOD

A rating system used by companies to evaluate their employees. With this method you place predetermined percentage of rates into several performance categories. The proportions in each category need not be Symmetrical.

A TYPICAL FORCED DISTRIBUTION …….

One of the first companies to use this system was General Electric; it used top 20%, middle 70% and bottom 10% for managers.

ADVANTAGES Helps alleviate some of the more common rater errors, such as

severity error (i.E. When all employees are rated poorly) and leniency error (i.E. When all employees are rated well).

Employees are evaluated using the same criterion = objectivity

Facilitate more candid and open communication between managers and employees

Help employers identify their peak performers and allows for them to be rewarded in a more distinguished manner

Identified the outstanding performers, the average performers and also the sub-par performers.

DISADVANTAGES Even in a talented group, someone has to lose After a forced distribution system is in place for a few years and

the poorest performers are weeded out, it becomes more difficult to distinguish between 'superb' and 'outstanding' performers.

Performance categories or the labels on the categories are simply not indicative of the actual employee performance

Managers generally have a less positive reaction to such systems than to more traditional rating systems

Comparison of the levels of employee performance in different job positions and in different departments in order to rank the performance of all in the company

CHARACTERISTICS OF AN IDEAL SYSTEM

Strategic Congruence Thoroughness Practicality Meaningfulness Specificity Identification of

Effective and Ineffective Performance

Reliability

Validity Acceptability and

Fairness Inclusiveness Openness Standardisation Correctability

PMS aims at aligning individual performance objectives with organizational goals by focusing on development of all employees = Strategic Congruence

NSI also wanted the performance expectations of all employees to be clear = Openness

All employees are evaluated ; evaluation includes performance spanning the entire review period = Thoroughness

Encouraging all senior leaders to ensure that those reporting directly to them understood the process and also accepted it = Acceptability

Encouraged senior leaders to use the system with all their direct reports and demand and utilize output from the new system = Meaningfulness

Encouraged the senior leaders to stop the development and use of

any other PMS = Standardization Training resources were made available on NSI’s intranet for

managers and individual contributors, including access to all necessary forms.= Practicality

1 to2 hour conference calls took place before each phase of the program was begun.

Development planning phase of the system is the joint year round responsibility of managers and employees.= Partially Inclusive( employees not involved in Performance planning)

There is also a plan to monitor for and correct any unproductive practices and implement correcting policies and practices = Reliability

THE CASE IS SILENT ON

Acceptability and Fairness Inclusiveness Performance planning inclusiveness Practicality Identification of effective and ineffective

performance/behaviour characteristics Correctability

ADDITIONAL INFORMATION NEEDED FOR: Quantified facts which include figures,

data(numeric) with proper time lines. Employees’ feedback and response in terms of

the new system which has been implemented. Opinions of employees from all the departments

of the organization before implementing the new system has been taken or not .

NSI plans on continued checks with all stake holders to ensure that the PMS is serving its’ intended purpose- but how?