SlideShare a Scribd company logo

performance management

1 of 35
Download to read offline
performance management
performance management
Performance management:
Introduction:
 Process for setting goals and regularly checking
progress toward achieving those goals.
 Goal is to ensure that every system and sub systems in
an organization are optimally working together
 includes activities that ensure organizational goals are
consistently met in an effective and efficient manner
Definition:
 Performance management is a continuous process
of identifying, measuring and developing
performance in organizations by linking each
individual’s performance and objectives to the
organization’s overall mission and goals
 Continuous process. It is ongoing and never
ending process
 Link to mission and goals. It requires that
managers ensure that employee’s activities are
linked with organization’s mission and goals
Components of PM:
Performance Planning
Coaching
Multiple Sources of Feedback
Performance Review
Theories of PM:
 Goal-setting theory:
 Edwin Locke in the year 1968
 Individual goals established by an employee play an
important role in motivating him for superior
performance.
 Employees keep following their goals. If these goals are
not achieved, they either improve their performance or
modify the goals and make them more realistic.
 In organizational context, personal empirical
observations highlight that the goals of individuals,
teams and the entity as a whole can be in conflict. Goal
conflict can motivate incompatible actions and this has
the potential to impact performance.

Recommended

Performance management an introduction
Performance management an introductionPerformance management an introduction
Performance management an introductionGopal Verma
 
Performance management 1
Performance management 1Performance management 1
Performance management 1IMCOST
 
Performance Management and Performance Appraisal
Performance Management and Performance AppraisalPerformance Management and Performance Appraisal
Performance Management and Performance AppraisalAshish Chaulagain
 
Performance management
Performance management Performance management
Performance management Preeti Bhaskar
 
Performance Management
Performance ManagementPerformance Management
Performance ManagementGautam Ghosh
 
Performance Management and Feedback - SHRM
Performance Management and Feedback - SHRMPerformance Management and Feedback - SHRM
Performance Management and Feedback - SHRMDrishti Bhalla
 

More Related Content

What's hot

Performance Management
Performance ManagementPerformance Management
Performance ManagementSheetal Wagh
 
5.performance management
5.performance management5.performance management
5.performance managementBima Hermastho
 
Unit- 2. Performance Management Process
Unit- 2.	Performance Management ProcessUnit- 2.	Performance Management Process
Unit- 2. Performance Management ProcessPreeti Bhaskar
 
Performance management
Performance management Performance management
Performance management vildan esenyel
 
Performance Management System
Performance Management SystemPerformance Management System
Performance Management SystemMayank Singh
 
Performance Management presentation
Performance Management presentationPerformance Management presentation
Performance Management presentationLaurie Armstrong
 
Performance Management And Appraisal - HRM
Performance Management And Appraisal - HRMPerformance Management And Appraisal - HRM
Performance Management And Appraisal - HRMFaHaD .H. NooR
 
Unit- 1. Performance Management and reward systems in Context
Unit- 1.	Performance Management and reward systems in Context	Unit- 1.	Performance Management and reward systems in Context
Unit- 1. Performance Management and reward systems in Context Preeti Bhaskar
 
Performance Management Powerpoint Presentation Slides
Performance Management Powerpoint Presentation SlidesPerformance Management Powerpoint Presentation Slides
Performance Management Powerpoint Presentation SlidesSlideTeam
 
Performance management
Performance management Performance management
Performance management Tufail Ahmed
 
Chapter 1 Strategic HRM
Chapter 1 Strategic HRMChapter 1 Strategic HRM
Chapter 1 Strategic HRMLo-Ann Placido
 
Performance Management in organization
Performance Management in organizationPerformance Management in organization
Performance Management in organizations junaid
 
Overview of Performance Management
Overview of Performance ManagementOverview of Performance Management
Overview of Performance ManagementHRM751
 

What's hot (20)

Performance Management
Performance ManagementPerformance Management
Performance Management
 
5.performance management
5.performance management5.performance management
5.performance management
 
Unit- 2. Performance Management Process
Unit- 2.	Performance Management ProcessUnit- 2.	Performance Management Process
Unit- 2. Performance Management Process
 
Performance management
Performance management Performance management
Performance management
 
Performance management
Performance managementPerformance management
Performance management
 
Performance Management System
Performance Management SystemPerformance Management System
Performance Management System
 
Performance Management presentation
Performance Management presentationPerformance Management presentation
Performance Management presentation
 
Performance Management And Appraisal - HRM
Performance Management And Appraisal - HRMPerformance Management And Appraisal - HRM
Performance Management And Appraisal - HRM
 
Performance planning
Performance planningPerformance planning
Performance planning
 
Unit- 1. Performance Management and reward systems in Context
Unit- 1.	Performance Management and reward systems in Context	Unit- 1.	Performance Management and reward systems in Context
Unit- 1. Performance Management and reward systems in Context
 
Performance Planning
Performance PlanningPerformance Planning
Performance Planning
 
Strategic Role of HR
Strategic Role of HRStrategic Role of HR
Strategic Role of HR
 
Performance Management Powerpoint Presentation Slides
Performance Management Powerpoint Presentation SlidesPerformance Management Powerpoint Presentation Slides
Performance Management Powerpoint Presentation Slides
 
Competency model
Competency modelCompetency model
Competency model
 
Performance Management
Performance ManagementPerformance Management
Performance Management
 
Performance management
Performance management Performance management
Performance management
 
Performance Management
Performance ManagementPerformance Management
Performance Management
 
Chapter 1 Strategic HRM
Chapter 1 Strategic HRMChapter 1 Strategic HRM
Chapter 1 Strategic HRM
 
Performance Management in organization
Performance Management in organizationPerformance Management in organization
Performance Management in organization
 
Overview of Performance Management
Overview of Performance ManagementOverview of Performance Management
Overview of Performance Management
 

Similar to performance management

Performance appraisal and training copy
Performance appraisal and training   copyPerformance appraisal and training   copy
Performance appraisal and training copySoumya Sahoo
 
Performance appraisal principles
Performance appraisal principlesPerformance appraisal principles
Performance appraisal principlesLearningade
 
Summary performance mgt (1) nori
Summary performance mgt (1)  noriSummary performance mgt (1)  nori
Summary performance mgt (1) noricleofe ratac
 
Performance Evaluation and Appraisal Processes
Performance Evaluation and Appraisal ProcessesPerformance Evaluation and Appraisal Processes
Performance Evaluation and Appraisal ProcessesShaharyarShoukatShou
 
Introduction to Employee performance management(EPM) -Performance Management ...
Introduction to Employee performance management(EPM) -Performance Management ...Introduction to Employee performance management(EPM) -Performance Management ...
Introduction to Employee performance management(EPM) -Performance Management ...Mouneswari
 
Unlocking the Power of Performance Appraisal Evaluation: Methods, Objectives,...
Unlocking the Power of Performance Appraisal Evaluation: Methods, Objectives,...Unlocking the Power of Performance Appraisal Evaluation: Methods, Objectives,...
Unlocking the Power of Performance Appraisal Evaluation: Methods, Objectives,...Qandle
 
Definition of performance management
Definition of performance managementDefinition of performance management
Definition of performance managementNitesh Verma
 
performancemanagement-140507052546-phpapp01.pdf
performancemanagement-140507052546-phpapp01.pdfperformancemanagement-140507052546-phpapp01.pdf
performancemanagement-140507052546-phpapp01.pdfCityComputers3
 
Manajemen kinerja (Performance management)
Manajemen kinerja (Performance management)Manajemen kinerja (Performance management)
Manajemen kinerja (Performance management)temanna #LABEDDU
 
Stategic human resource management
Stategic human resource managementStategic human resource management
Stategic human resource managementPOOJA UDAYAN
 
Performance management
Performance managementPerformance management
Performance managementruquia shah
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisalSanjeev Kotur
 
Performance Management System & Performance Appraisal
Performance Management System & Performance AppraisalPerformance Management System & Performance Appraisal
Performance Management System & Performance AppraisalArun VI
 
Performance Management
Performance ManagementPerformance Management
Performance Managementnikki031985
 
35471324 hr-project-on-performance-appraisal
35471324 hr-project-on-performance-appraisal35471324 hr-project-on-performance-appraisal
35471324 hr-project-on-performance-appraisalVishwash Singh
 
Indukaka ipcowala instiutute of management
Indukaka ipcowala instiutute of managementIndukaka ipcowala instiutute of management
Indukaka ipcowala instiutute of managementIIIM
 
Performance management Lectures 24.ppt
Performance management Lectures 24.pptPerformance management Lectures 24.ppt
Performance management Lectures 24.pptAbhinandaBhattachary
 

Similar to performance management (20)

Performance appraisal and training copy
Performance appraisal and training   copyPerformance appraisal and training   copy
Performance appraisal and training copy
 
Performance appraisal principles
Performance appraisal principlesPerformance appraisal principles
Performance appraisal principles
 
Summary performance mgt (1) nori
Summary performance mgt (1)  noriSummary performance mgt (1)  nori
Summary performance mgt (1) nori
 
Performance Evaluation and Appraisal Processes
Performance Evaluation and Appraisal ProcessesPerformance Evaluation and Appraisal Processes
Performance Evaluation and Appraisal Processes
 
Introduction to Employee performance management(EPM) -Performance Management ...
Introduction to Employee performance management(EPM) -Performance Management ...Introduction to Employee performance management(EPM) -Performance Management ...
Introduction to Employee performance management(EPM) -Performance Management ...
 
Unlocking the Power of Performance Appraisal Evaluation: Methods, Objectives,...
Unlocking the Power of Performance Appraisal Evaluation: Methods, Objectives,...Unlocking the Power of Performance Appraisal Evaluation: Methods, Objectives,...
Unlocking the Power of Performance Appraisal Evaluation: Methods, Objectives,...
 
Definition of performance management
Definition of performance managementDefinition of performance management
Definition of performance management
 
Performance reviews 101
Performance reviews 101Performance reviews 101
Performance reviews 101
 
Staff appraisal
Staff appraisalStaff appraisal
Staff appraisal
 
performancemanagement-140507052546-phpapp01.pdf
performancemanagement-140507052546-phpapp01.pdfperformancemanagement-140507052546-phpapp01.pdf
performancemanagement-140507052546-phpapp01.pdf
 
Manajemen kinerja (Performance management)
Manajemen kinerja (Performance management)Manajemen kinerja (Performance management)
Manajemen kinerja (Performance management)
 
Performance management
Performance managementPerformance management
Performance management
 
Stategic human resource management
Stategic human resource managementStategic human resource management
Stategic human resource management
 
Performance management
Performance managementPerformance management
Performance management
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisal
 
Performance Management System & Performance Appraisal
Performance Management System & Performance AppraisalPerformance Management System & Performance Appraisal
Performance Management System & Performance Appraisal
 
Performance Management
Performance ManagementPerformance Management
Performance Management
 
35471324 hr-project-on-performance-appraisal
35471324 hr-project-on-performance-appraisal35471324 hr-project-on-performance-appraisal
35471324 hr-project-on-performance-appraisal
 
Indukaka ipcowala instiutute of management
Indukaka ipcowala instiutute of managementIndukaka ipcowala instiutute of management
Indukaka ipcowala instiutute of management
 
Performance management Lectures 24.ppt
Performance management Lectures 24.pptPerformance management Lectures 24.ppt
Performance management Lectures 24.ppt
 

performance management

  • 3. Performance management: Introduction:  Process for setting goals and regularly checking progress toward achieving those goals.  Goal is to ensure that every system and sub systems in an organization are optimally working together  includes activities that ensure organizational goals are consistently met in an effective and efficient manner
  • 4. Definition:  Performance management is a continuous process of identifying, measuring and developing performance in organizations by linking each individual’s performance and objectives to the organization’s overall mission and goals  Continuous process. It is ongoing and never ending process  Link to mission and goals. It requires that managers ensure that employee’s activities are linked with organization’s mission and goals
  • 5. Components of PM: Performance Planning Coaching Multiple Sources of Feedback Performance Review
  • 6. Theories of PM:  Goal-setting theory:  Edwin Locke in the year 1968  Individual goals established by an employee play an important role in motivating him for superior performance.  Employees keep following their goals. If these goals are not achieved, they either improve their performance or modify the goals and make them more realistic.  In organizational context, personal empirical observations highlight that the goals of individuals, teams and the entity as a whole can be in conflict. Goal conflict can motivate incompatible actions and this has the potential to impact performance.
  • 7. Expectancy theory:  Given by Victor Vroom in 1964.  Based on the hypothesis that individuals adjust their behaviors on the basis of anticipated satisfaction of valued goals set by them.  The individuals modify their behavior in such a way which is most likely to lead them to attain these goals.  This theory underlies the concept of performance management as it is believed that performance is influenced by the expectations concerning future events (Salaman et al, 2005).
  • 8. Organizational theory:  Organizational theory studies organizations as a whole  It should be rational, information based, efficiency oriented and distinguish between two types of performance evaluation control: behavior based and outcome based.  The organizational theory:  Compares ability to measure behaviors and outcomes.  Uses control as a measurement and evaluation process. Reward is implicit.  Can reduce divergent preferences through social control.  Uses information as a purchasable commodity
  • 9. The performance management cycle: Performance management is a continuous process of planning, monitoring and reviewing employee performance.  Three phases of performance management are  Plan  Monitor  Review and Evaluate
  • 10. Start of performance cycle Performance Management Cycle
  • 11. Phase 1 — Plan The planning phase is a collaborative effort involving both managers and employees during which they will:  Identify training objectives that will help the employee grow his or her skills, knowledge.
  • 12. Cont….  Identify career development objectives that can be part of longer-term career planning.  Identify and review the links between the employee’s job description, his work plan and the organization’s goals and objectives to determine if it reflects the work that the employee is currently doing.
  • 13. Setting objectives and Measurements:  Difficult part of phase is finding appropriate and clear language to describe the objectives and measures.  Managers need to ensure that the objectives are a good representation of the full range of duties carried out by the employee  Everyday tasks that can take time but are often overlooked as it is accomplished.
  • 14. Start of performance cycle Performance Management Cycle
  • 15. Phase 2 — Monitor  Continuous monitoring is necessary for effective performance management.  Monitoring day-to-day performance  Managers should not micro-manage employees  Focus their attention (results achieved and individual behaviors)  Assess progress towards meeting performance objectives
  • 16. Cont….  Identify any changes that may be required  Determine if any extra support is required from the manager to assist the employee in achieving his or her objectives  Identify any barriers that may prevent the employee from accomplishing performance objectives.
  • 17. Continuous coaching:  Coaching means providing direction, guidance, and support as required on assigned activities and tasks.  As a coach, managers need to recognize strengths and weaknesses of employees and work with employees to identify opportunities and methods to maximize their performance.
  • 18. Providing feedback  Positive feedback It involves telling someone about good performance.  Feedback timely, specific and frequent appreciation (for effective performance).
  • 19. Constructive feedback  It alerts an individual to an area in which performance could improve.  It is descriptive and should always be directed to the action, not the person.  Its main purpose is to help people understand where they stand in relation to expected job.
  • 20. On-going Start of performance cycle Performance Management Cycle
  • 21. Phase 3: Review and Evaluate:  Managers should review their performance management notes and documentation generated throughout the year in order to more effectively assess the employee’s performance.
  • 22. Cont… In the performance assessment meeting, employees and managers will:  Summarize the work accomplished during the previous year.  Document challenges come upon during the year  Identify areas for training and/or development  Identify and discuss an unexpected barriers to achieve of the objectives
  • 23. Cont…  The employee and the supervisor should sign off on the form. This acknowledges involvement of employee .  If an employee disagrees with performance assessment, provide them with the opportunity to attach their comments.  Managers must ensure that the employee receives a copy of the assessment form and the signed document is put in the employee's file.
  • 25.  Motivation to perform is increased.  The job definition and criteria are clarified.  Self-insight and development are enhanced.  Organizational goals are made clear.  Employees become more competent. Few contributions
  • 26. Motivation to perform is increased increases the motivation for future performance. provide the fuel for future accomplishments The job definition and criteria are clarified  The job of the person may be clarified and defined more clearly  employees gain a better understanding of the behaviors and specific position
  • 27. Self-insight and development are enhanced  gain a better understanding of their strengths and weaknesses Organizational goals are made clear  To understand the organizational success Goals should be clear and must be understandable for employees Employees become more competent  performance of employees is improved  developing and improving employees by establishing developmental plans
  • 28.  Employees may quit due to results.  False or misleading information may be used.  Self-esteem may be lowered.  Time and money are wasted.  Relationships are damaged.  Motivation to perform is decreased.  Employees suffer from job burnout and job dissatisfaction. Dangers of Poorly Implemented PM Systems
  • 29. Performance Management Performance Appraisal •Performance management is the process of identifying, measuring, managing, and developing the performance of the human resources in an organization. •It’s a systematic analysis and measurement of worker performance. •Performance appraisal, on the other hand, is the ongoing process of evaluating employee performance. •Performance appraisals are reviews of employee performance over time. Performance Management versus Performance Appraisal
  • 30.  It improves performance by identifying and applying best demonstrated practices to operations and sales  objective of Benchmarking is to find examples of superior performance Benchmarking
  • 31.  Select a product, service or process to benchmark  Identify the key performance metrics  Choose companies or internal areas to benchmark  Collect data on performance and practices  Analyze the data and identify opportunities for improvement  Adapt and implement the best practices, setting reasonable Steps of Benchmarking
  • 32. Reward system  Reward system is the set of mechanisms for distribution of intangible and tangible returns as part of employment relationship.
  • 33. Types of returns  Base pay  Cost of living  Short term incentives  Long term incentives  Income protection  Work life focus  Allowances  Rational returns
  • 34. Table  Returns and their degree of dependence on performance management system.  Return Degree of dependence  Base pay Moderate  Cost of living adjustment Low  Contingent pays High  Short-term incentives High  Long-term incentives High  Income protection Low  Work/life focus Moderate  Allowances Moderate  Relational returns Moderate