To survive it is very important to be successful and to be successful is very important to have competitive advantages with the most effective and efficient utilization of resources .Since human resources are the most valuable and unique , the only way to measure it is through their performance.
As performance refers to what a person does or does not do on the job or task while accomplishing the target.
Several terms are used as performance assessment, performance appraisal, performance evolution and performance management.
Comparison Of Performance Management & Performance Appraisal Characteristics Performance Mgt. Performance Appraisal Types of objectives. Emphasis on integrating organizational , team , & individual objectives. Individual Objectives. Types of performance measures. Competency requirements as well as quantified measures. Qualitative & Quantitative. Frequency. Continuous review with one or more formal reviews in a year. Annual appraisal. Rating system. Joint or participative process , ratings less common. Top-down system.
Comparison Of Performance Mgt. & Performance Appraisal Characteristics Performance Mgt. Performance App. Reward linkage. Does not have direct link to reward. Often linked to pay. Ownership. Owned by line management. Owned by human resource department. Corporate alignment. Integrated business-driven system aimed at organizational & people development. Isolated system not linked to organizational goals. Focus of performance reviews. Future focused. Focus on past performance. Questions asked. What can be done to help employees perform as effectively as possible? How well was the work done?
Uses & Objectives Of Performance Management System Objectives of perform. Mgt. sys. Human ResourcePlanning Recruit.& selection Personn-el Decisions Career planning & dev. Feedback , motivation & development. Training & dev. Compensation & reward. Internal employee relation
Classification Of Performance Management Objectives Classification Of Performance Management Objectives Evaluative Objectives
Bonuses & incentives.
Manager is a judge & makes reward decisions.
Training & development.
Human resource Planning.
Manager is a coach who helps in performance improvement.
Process Of Performance Management System Specify organizational objectives. Identify dimensions of job performance. Define & communicate performance standards. Determine who will conduct appraisal.(sources) Choose appropriate methods of performance appraisal. Conduct appraisal. Communicate appraisals to employees(feedback).
Types Of Performance Evaluation Criteria Types of evaluation criteria. Trait –based Behavior –based Result –based
Sources Of Appraisal Information Sources of appraisal information Customer appraisal App. By manager or supervisor Self-appraisal Team appraisal Peer appraisal Subordinate appraisal
Methods Of Performance Appraisal Performance appraisal methods Trait-based methods
A good performance management system is one that allows the employee (appraise or rate) to participate & contribute in his/her own performance evaluation , in partnership with the manager (appraiser or rater).
Types Of Communication Of Appraisals:
One-way communication(tell & sell approach).
Two-way communication(tell & listen approach).
Factors Leading To Problems In Performance Management System
Problems in performance management system. Ambivalence towards performance evaluation on the part of appraisee. Problem in design & implementation of performance management system Rater biases & errors
Characteristics of effective Performance Management System SEPERATION OF EVALUATION & DEVELOPMENT APPRAISALE USE OF JOB –RELATED PERFORMANCE SPECIFYING PERFORMANCE STANDARDS FOR EACH CRITERIA USING APPROPRITE PERFORMANCE DATA UPWARD APPRAISALS APPEAL PROCESS USING MULTIPLE RATERS IMPROVING SUPERIOR –SUBORDINATE RELATIONSHIP TOP MGT .SUPPORT & FIT WITH ORGANIZATIONAL CULTURE TRANING RATERS PROVIDING ON GOIN G FEEDBACK EFFECTIVE PERFORMANCE MGT. SYSTEM
DEVELOPMENT IN PERFORMANCE MANAGEMENT SYSTEM. Development performance mgt. system Team or work group appraisals Multisource & 360 degree appraisals Assessment Competency based appraisals
Difference between assessment centres & development centres Assessment Centers Development Centers
Used purely for selection purpose.
Have a pass/ fail criteria.
Focused on immediate need of the organization
Have fewer assessors than participants.
Involve line managers as assessors.
Focus on meeting organizational needs .
Assessors take on role of judge.
No departmental feedback or follow up with participants .
Used with external candidates.
Primary purpose is development.
Do not have a pass/ fail criteria.
Focused on long term needs of the organization.
1:14m ratio of assessor to participants.
Do not involve line managers as assessors .
Focus on candidates “s potential.
Focus on meeting both individual and organizational needs
Assessors take on role of facilitators.
Provide development feedback & follow up to participants.
Computer performance monitoring(CPM): Helps in collecting data such as error rates, time spent, number of work units completed etc.
Online Evaluation & Appraisal software: It is done for multi – rater or 360 degree feedback where the e –mail messages for evaluations .
Linkage between organization life cycle , competitive status, organizational strategy & hr strategy Org. Life Cycle Inception [start- up] Growth maturity Competitive status of the firm. Weak Strong Stable Org. strategies Value creation Value accumulation Value maintenance Needed employee characteristic
Risk - taking.
Long – term orientation
Results with low level of risk
HR strategy Focus on exploratory knowledge of employees Focus on exploitative knowledge Harvest strategy to maintain competitive status Aligning performance mgt. Qualitative methods Quantitative methods Qualitative methods
Strategic performance management system. Step 1 Step 2 Step 3 Identify competitive status of the firm. Internal analysis of strengths and weaknesses of the organization. Determine strategies.