Chapter 2: Performance Management Process

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  • 1. PERFORMANCE & COMPENSATION MGT (HRM 751) CHAPTER 2: THE PERFORMANCE MANAGEMENT PROCESS Prepared by: Shirley Angie Sitimin 2012849092 BM7703F
  • 2. During the Presentation You may....  Ask questions  Offer ideas & suggestions
  • 3. PERFORMANCE MANAGEMENT PROCESS (PMP):OVERVIEW  Where Performance Mgt ‘Fits’?  Definition of PMP  Purposes of PMP  Responsibilities of Manager in PMP  Responsibilities of Supervisor & Employee in PMP  Various Diagram of PMP •Performance Planning •Managing Performance •Performance Review/Appraisal •Performance Reward •Challenges of PMP •Conclusions •Recommendations
  • 4. WHERE PERFORMANCE MANAGEMENT "FITS"? How can I help? How are we doing? What is our job? Does anybody care? How am I dooing? What is my job? Source: Roger D’Aprix
  • 5.  This is a pyramid showing some of the key questions employees of organization ask to employer.  Often employees do not know what are expected from them.  A fundamental step in performance management is communicating job expectations. Absent of clear expectations, employees do not have the required tools to perform their job functions.  Roger D'Aprix (2008) has identifies six key questions employees need answered by their boss in order to perform their job effectively.
  • 6. PERFORMANCE MANAGEMENT PROCESS (PMP) DEFINITION  A continuous negotiation process that calls for effective communication (Acuff, 2008).  Align employee's goals & to those of the organization ( Shafudah, 2010).  PMP is defined as a continuous process where supervisors and employees work together to establish objectives, monitor progress toward these objectives and assess results. With this process, employees receive regular feedback and coaching which is a vital development process for all employees (KSU, 2009).
  • 7.  Armstrong & Baron (2005) emphasized that PMP is a strategy which relates to every activity of organization and its implementation depends on organizational context and can differ from organization to organization.  An on going cycle that underscores the need for supervisors & employees to work together in determining the organization & employee's goals.  A cycle with discussions varying year to year based on changing objectives ( Raymond, 2006).
  • 8. PURPOSES OF PMP  To develop people & improve performance  Allows individuals to know what is expected of them by the organisation they work in and so they know what they need to do to help the organisation to be a success and for them to participate towards that success.  To provide honest & accurate formal evaluations
  • 9.  PMP purpose is to allow for a two way feedback between supervisor and employee to aim at supporting rewards or punishment for performance practices.  To drive capability development. It is typically designed to help employees understand what they need to learn and how they need to learn it.
  • 10. RESPONSIBILITIES OF MANAGER IN PMP  Take an active role in the process  Set realistic goals that aligned with the company strategy  Measure result objectively  Identify needs & resources for employees development  Responsible to support the process throughout the rating period
  • 11. RESPONSIBILITIES OF SUPERVISOR & EMPLOYEE IN PMP Supervisor 1. Provide on going performance feedback 2. Make clear company direction 3. Shared accountability. supervisor needs to provide open, honest and constructive feedback to employee on their performance 4. Use a variety of methods and tools when monitoring and giving feedback about employee's performance 5. To assist the employee throughout the appraisal period in improving aspects of performance identified as needing improvement.
  • 12. Employee 1. To actively giving inputs 2. Discuss any concerns and questions about any part of their job or the performance management process with his or her supervisor 3. Responsible for continuous self-assessment 4. Responsible to take personal ownership for development by identifying and participating in career development 5. Employee need to mutually agree on performance expectations and competencies during the developmental plan with supervisor
  • 13. VARIOUS DIAGRAM /MODEL OF PMP Note: There are 4 models shown in the slides WHY THERE ARE VARIOUS MODEL OF PMP?  It is designed based on the suitability of the company  The situation is different from one organization to another/within organization  The formulation of such model needs to be approached from a participatory perspective  Not all types of performance management process model are right for companies. Luckily there are several different types that can be chosen by an organization which will work best for the company.
  • 14. PERFORMANCE MANAGEMENT PROCESS DIAGRAM (COMMON MODEL)
  • 15. WHY THIS MODEL?  It recognizes the important of coaching as it connects each stage of the model  It calls for the alignment of employee's goals to those of the organization  Easy to understand & not crowded as it is 4 steps only  Can be implement easily
  • 16. THE PROCESS: PERFORMANCE PLANNING  The performance planning process, where individual objectives are linked to organisational goals, is the typical starting point of the cycle and goal-setting usually occurs in line with annual standard review cycles (Suutari and Tahvanainen, 2002).  According to Aguinis (2007), below are the elements that been look up during the performance planning stage: Results  What needs to be done  Needs to include the key accountability, specific objectives & performance standards
  • 17. Behaviours  How job is done  A consideration of behaviours includes discussing competencies which is KSAs Developmental Plan  Identifying areas that need improvement & setting goals to be achieved in each area  Agree on the development plan that have been discuss
  • 18. MANAGING PERFORMANCE  Should be done throughout the year  Give continuous feedback & learning to employees  Employee shares or inform on any successes or problem to success  In managing performance, supervisor gives employee an opportunity to express their needs, concern and expectations
  • 19. WHAT SHOULD SUPERVISOR COACH?  Current performance - "What": Objectives, Outcomes - "How": Behaviours, Competencies  Development - Building future capability - Improving personal skills • Career aspirations -Prepare for potential future assignments - Using capabilities to choose a better path
  • 20. PERFORMANCE REVIEW/APPRAISAL  Involves the meeting between employee & manager to review their assessment  Provides a formal setting in which employee receives feedback on his performance  Performance appraisal summarizes the employee's contributions over the entire appraisal period which is one year period
  • 21.  When doing performance review, each employee can be placed into one of the three categories which are: • High Performer - Consistently exceeds standards, proactively problem solves, takes appropriate initiative, and is a positive influence on others as well as a good role model. • Middle Performer - Meets standards, responds well to others’ problem solving ideas, strives to do a good job and may need more experience or coaching. May be influenced either by the high or the low performer. • Low Performer - Does not consistently meet standards, may respond to problems in a negative way. May not recognize the need for performance improvement.
  • 22. 6 STEPS FOR CONDUCTING PRODUCTIVE PERFORMANCE REVIEWS  Identify what employee has done well & poorly  Solicit feedback  Discuss the implications of changing behaviours  Explain how skills used in past achievements can help overcome any performance problems  Agree on an action plan  Set a follow-up meeting & agree on behaviours, actions, attitudes to be evaluated Note: Example of 2 Appraisal forms shown in the slides
  • 23. PERFORMANCE REWARD  A key value drivers  Uses non-cash recognition to reward good performance  Give rewards based on employee hard work and outstanding performance  Rewarding performance should be an on-going managerial activity and not just an annual pay-linked ritual  According to Armstrong (2002), his conceptualisation of ‘total reward’, this comprises both financial and nonfinancial elements
  • 24. THE PERFORMANCE TIMELINE
  • 25.  The performance management process timeline is different from organization to organization. It is depends on the company to decide when to start the performance management process.  The timeline is either done yearly or annually, where yearly is starting from January to December while annually is on January to June (first half) and the other is July to December (second half).  The performance management process will work in one cycle and covers 12 months period consistent with individual's performance year starting from the date of job confirmation.
  • 26. CHALLENGES TO EFFECTIVE PMP  To ensure everyone's performance is managed in all areas of their work  To make sure the PMP was carried out in an honest manner  Supervisor & employee need to have good negotiating skills
  • 27.  Not all organisations are led by democratic leaders where all employees are treated with trust  Change management is a challenge in itself. In order to manage performance one has to be mindful of changes in the environment and to adapt to it by managing the change
  • 28. CONCLUSIONS  It can be concluded that in order for the process to make sense, there should be a supervisor and employees for successful implementation of the process  There is a need for some leadership and management skills to be applied as well as the consideration of personal attitude and behaviour to ensure that the process is been lead well.
  • 29. RECOMMENDATIONS  Send managers & supervisors for training (Example: Leadership training, Communication skills training)  Do proper documentations for the PMP  Do proper research which PMP is most suitable for the organization
  • 30.  To develop a strategic plan accompanied by employee performance plan with clear and measurable targets  Improve their systems, rules and procedures to facilitate effective employee performance.
  • 31. Q & A sessions -Thank you for your kind attention-