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1. Performance
Managemen
t

2. Definition of Performance Management
“Performance management is a set of
activities that ensure goals are met in
an effective and efficient manner.
Performance management can focus
on the performance of an
organization, a department, an
employee, or the processes in place to
manage particular tasks.”
(Wikipedia)

3. Objective of Performance Management
Organization based
• Identify the parameters of performance and stating
them clearly.
• Setting performance standards.
• Planning in participative ways where appropriate,
performance of all constituents.
• Identify the competencies and competency gaps that
contribute / hinder to performance.
• Planning performance development activities.
• Creating ownership.
• Recognizing and promoting performance culture.

4. Objective of Performance Management
Employee Based
• To assist in the achievement of enhanced
standards of work performance of an employee or
class of employee
• To assist employees to identify knowledge and
skills to perform to job efficiently
• For employees to work towards defined goals
• For employees to receive regular feedback on
performance
• For employees to achieve personal growth
through acquiring relevant knowledge, skills, and
attitude.

5. Performance Management
system development w.r.t
Company policy, best fit the
nature of the work performed
and the mission of the
organization.
Pre-requisite of Performance Management

6. Performance Management

7. Phase 1
Setting Expectations for Employee
Performance:
• Supervisors shall meet with their employees, establish
expectations regarding their employees, establish expectations
regarding their employees performance.
• Specify how employee actual performance will be measured
and their success determined, and impart to them their
understanding how meeting these expectations will contribute
to the achievement of the organization’s mission.
• Performance expectations shall be written and documented in
company document format.
• Work plans shall be signed and dated by both the supervisor
and the employee.

8. Phase 2
1 TO 1 meeting dialog between Employee
and immediate supervisor
• Employee shall be responsible for meeting their performance
expectations
• Progress towards meeting expectations shall be measure,
reported, discussed, and documented throughout the work cycle
• Supervisors are expected to use appropriate techniques to
support employee efforts to meet or exceed their performance
expectations
• When expectations change during the course of the work cycle
supervisors shall communicate these changes and modify work
plans as necessary. Modifications shall be signed and dated by
both the supervisor and the employee.

9. Phase 3
Maintain a dialog between Supervisor and
Employee to keep performance on track.
• Based on performance expectations supervisor shall evaluate
employee performance at the end of work cycle. They shall use
variable information collected and documented throughout the cycle
with the actual performance defined in the work plan/
• Evaluation shall be documented in Company Appraisal form.
• Performance rating scale e.g. 1 to 5 or more shall be adopted in
evaluating overall performance
• Prior to discuss the performance appraisal with the employee,
immediate supervisor shall review the appraisal with the next level
manager to ensure rating are appropriate and consistant.
• Supervisors shall discuss the appraisal with their employees. After
discussion both supervisor and employee shall sign the document and
endorse current date.

10. Phase 4
Addressing POOR performance:
(Only when employee performance falls below expectations)
• For performance part that falls below expectation, supervisor shall
write corrective action plan or other documentation.
 The document shall specify the performance problem
 Steps to be taken to improve performance including time frame for
improvement
 Consequence of failure to improve
 A follow up date
• A corrective action plan shall be considered successfully completed
only when the employee actual performance has improved to the
point where expectations are being met.
• The agency performance management policy shall specify the
relationship between disciplinary policy and performance
management

11. Supporting Employee Development
Many Employees express interest in growing in their
current positions or in furthering their careers within the
organization. Immediate supervisor shall work with them
to identify STRENGTH and WEAKNESSES, if
appropriate support them in preparing individual
development plan.
Individual development plans may specify how
employees can more fully apply their STRENGTHS in
their current positions, built up areas of weakness,
enhance their performance in their current position, or
develop their skills and experience they will need for
possible future assignment.

12. Transitions
When employee move into or out of their positions, relevant
performance information shall be communicated in a timely
way.
• Employees that are on probation shall have work plans identifying
certain number of days. The supervisor shall provide performance
documentation, as per the policy, that the probationary employee
performance is at a minimum meeting expectation.
• For probationary employees, supervisor shall provide performance
update to employee before each salary increase is granted within the
progression
• Employees who's responsibilities change substantially, shall have
work plans established within a certain number of days following the
new assignment.
• At the time of transfer to new branch office or other region office
supervisor shall forward the employee last performance
documentation to relevant office to follow up the last work plans.

13. Performance Management Cycle
Performance Planning
Staff & the Organization
Performance &
Development Reviewing
Action
Makes Changes
Reset Objectives Enabling Staff to deliver
Taking stock of achievements and diagnostics
Setting Objectives, defining what is needed

14. The ongoing Performance Cycle
• Major areas of
responsibility
• Individual Priorities
• Knowledge, Skills, and
Behavior
• Development plan
• Reaching agreement
• On going feedback
• Coaching
• Interim reviews
• End of cycle
review
• Continuous
progress and
development

15. Alignment Model
Knowledge,
Skills, &
Behavior
Organizational
Priorities
Departmental
Priorities
Major areas or
individual
responsibilities
Performance Development Process
Mission
Values
What How
Personal
Unit
Or
Department
Organizational

16. What is GOOD performance?
• More than just Good activities, Good
Intentions, and Results
• Working hard and staying busy are not
necessarily high performance
• Attending training sessions and studying
hard does not necessarily lead to good
performance
• Strong commitment may not lead to good
performance
• Even accomplishing some goals may not be
high performance

17. Performance Management
Performance Management
begins with a look at goals
and strategies of the
organization

18. Organizational Alignment
All efforts must be
aligned with overall
goals and strategies of
the organization

19. Performance Management & Transformation Process
• Mission, Goals, and
Strategies should be
defined and clearly
understood by everyone
• How do all tasks
contribute to overall plans
for the organization?

20. Critical Incidents
• Based on observation of
behaviors
Positive
Negative
• Written notation regarding
behavior is made and placed in
each employee’s file

21. Critical Incidents
• Each observation is
discussed with the
employee at the time of
occurrence
• A portfolio of observed
events is collected over
time

22. Management by Objective
A strategic management model that aims
to improve the performance of an
organization by clearly defining objectives
that are agreed to by both management
and employees. According to the theory,
having a say in goal setting and action
plans encourages participation and
commitment among employees, as well as
aligning objectives across the
organization.

23. Principals of Management By Objective
• Cascading of organizational
goals and objectives
• Specific objectives for each
member
• Participative decision making
• Explicit time period
• Performance Evaluation and
Feed back

24. Points to Remember in Management By Objective
• Is the objective appropriate for the business at this
time?
• Does it take the organization in the direction it want
to go?
• Does it support the overall mission of the business?
• Is it compatible and complimentary with the other
objective?
• Is it acceptable and understandable to the majority
who will be charged with implementing it?
• Is it affordable for the organization?
• Is it measureable and achievable?
• Is it ambitious enough to be challenging?

25. Hierarchy of Objectives
•Vision
•Mission
•Goals
•Objectives
•Policies
•Procedures

26. Results based Appraisal
• Management by Objective
in some form is commonly
used
• Focuses on measureable
results of mutually agreed
upon goals for a work cycle

27. Factors to consider in Appraisal process
• Cost
• Usefulness in employee
development
• Usefulness in
administrative decisions
• Validity

28. Who Appraises
• Supervisor
• Peers
• Subordinates
• Self Appraisal
• Customers

29. 3 Types of Appraisal Interviews
• Tell and Sell
• Tell and Listen
• Problem
Solving

30. Performance Measures
• Objective Measures – Hard Criteria
$ Sales
Units Produced
Error Rate
Personal Data
Absence Rate
Turnover Tardiness
• Weaknesses
 Performance modified by Situation – Opportunity Bias
 System Responsible for 96% of Variance – Person 4%
(Deming)
 Objective measured do not apply to all jobs
(Dr. Diana Stone)

31. Performance Measures
• Errors and Biases
 Halo Error - Is a mistake or bias that
can occur in evaluating an individual's
performance where they are consistently
rated based on the evaluator's overall
impression, rather than on their actual
performance in various categories
 Central Tendency
 Leniency (Positive and Negative)

32. Types of Performance Rating Scale used
• Number of levels: 3, 4, 5 or 6
• Rating labels:
 Behavioral Frequency e.g. Always,
Usually, Frequently, Sometimes, and
Rarely
 Evaluation: e.g. Distinguished, Superior,
Competent, Fair, & Marginal
 Performance against standard e.g.
Exceeds, Meets, and Do not meet

33. Approaches to designing an Appraisal Form
• Trait based
• Behavior based
Competencies
Behaviors
• Results based
Performance outcomes
Objectives

34. What will be on the form?
• Identifying information
• Instructions
• Performance outcomes / or
results achieved or objectives
• Performance factors /
Competencies / Work behaviors
• Employee signature and
approvals

35. What will be on the form?
• Employee comments
• Summary of one to three major
achievements
• Strengths and Area of
development
• Overall rating
• Plan for development
• Performance plan for next period

36. Reward on Performance
• Monitory
• Non Monitory
• Recognition Year
Best
Perform
ance
Reward
goes to
Mr.
Perfect
Promoted to the
Rank of Senior
Manager

37. Rewards, Recognition, and Compensation
• Recognizing employees for performance
 Non monitory rewards
 Informal and On going acknowledgements of
good work
• Compensation
 Merit Increases
 Pay to market
 Increases added to base pay or lump sump

38. Support systems
• Senior Management Support
• Management accountability
• Communication about the process
• Training
• Process for new employees
• Process for dealing with poor
performance
• Monitoring and Evaluating the process
• Appeals process

39. General view with Appraisals
• 95% of companies use appraisals,
majority are dissatisfied with them (Wall
Street Journal)
• 90% Appraisal system unsuccessful
• “ I’d rather kick bricks with my bare feet
than do appraisals.” (Manager at digital
corp.)
• Many companies abolished ratings:
Pratt and Whitney, Blockbuster, IBM,
Albany Intern

40. Conflicts in Performance Appraisal
Organization
seeks information
to improve
systems
Individuals seeks
valid
performance
feedback
Organization
seeks information
on which to base
rewards
Individual Seeks
Extrinsic
Rewards

41. Requirement of Effective Performance Management
• Relevant to Job
performance
• Distinguishes effective
and ineffective
performance
• Fair and acceptable

42. Performance Standards
• Managers assume
standards are clear
• Communicate what is
to be done?
• How well should it be
done?

43. Progressive Disciplinary Systems
• Counsel employee about
performance problem
• Verbal warning
• Written warning
• Disciplinary lay off (Short
Term)
• Discharge

44. Progressive Disciplinary System
Reasons to avoid discharge
• Unfair labor practice (Legal and
Contractual Restrictions)
• Company Payments Towards
Unemployment & Severance Pay
• Strikes
• Court Action – Back pay award
• Investment in Human Resources

45. Problems with Appraisals
• 1/3 claim that appraisals are rated
unfairly.
• According to Deming: “Appraisals are
deadly disease in organization.”
• Disregards existence of system
• Erroneously attributes variation in
performance to individuals
• Undermine team work and improvement
• Focus on short term end product

46. Points to consider during Appraisal
• Give Feed back daily
• Encourage participants
• Judge performance NOT
personality
• Be specific - Provide critical
incidents
• Set mutual goals

47. Last words
“To win in the
marketplace you
must first win in
the workplace.”
Douglas Conant