Hello, you are here today for the first of 12 training presentations that will be given to all managerial employees within the company. My name is Mike Samsel and I am your senior vice president. This first presentation will be covering Performance Management, specifically what you need to know about performance management to make us successful.
So, what is performance management? According to the U.S. office of Personnel Management, Performance management is the systematic process by which an agency involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals. So what does this mean to you?
Basically, you need to understand that there is a direct correlation between your actions as managers and your employee’s actions, which directly affect this organizations effectiveness. To make sure this model is effective, there are a few basics you need to understand.
There are three levels of organizational performance. At strategic level, performance management deals with the achievement of organizational objectives. Practitioners refer to it as corporate, business or enterprise performance management, this being the highest and most complete level of usage of performance management principles in organizations. Performance management at operational level is linked to operational management, as its focus is the achievement of departmental or group objectives. Although it is aligned with corporate strategy, its focus is more functional. The traditional level at which performance management is used in organizations is the individual level. Individual performance management is the grass roots level that deals directly with the employee.
It is Important that your employees completely understand what is expected of them and how they are performing. You can start by establishing clear objectives for them that align with the organizations goals. When your employees see how their piece of the puzzle fits into the larger organizational objectives, they will be more affective in their performance.You will also need to give them feedback throughout the year. Your employees nee to know what they are doing well, and what they need to improve on. This can be done formally in a private sit-down meeting, or informally with an occasional kudos for a job well done. Both the formal and informal methods should be used throughout the year. You should also give your employees annual appraisals and ratings. This can be used in an extension of the feedback to illustrate how the individual adjusted their performance due to your feedback. This can also be tied into a rewards and recognition program recognizing your star performers. Rewards and recognition is a great tool to help boost individual performance.
Operational and strategic performance management are two different levels, but we will be discussing them together since they share many of the same tools and techniques. Scorecards and Dashboards are some of the key tools used at these two levels. Dashboards and scorecards are analytical tools that allow you to focus on the measurements that are important to your business. More specifically, scorecards measure performance against goals. This tool is typically a top-down approach that allows management to implement its strategy by aligning performance with goals. A dashboard on the other hand is a bit different. Similar to the dashboard in your car, a performance management dashboard is a display of various meters, gauges and lights that give you up-to-date information on the current status of your business. “The most important similarity is that both systems contain metrics that communicate what is important, monitor what is taking place, and help people be successful in their work” For example Human Resources (HR) Dashboards are used to collect and analyze a variety of HR management indicators that guide the management decisions of HR departments. Risk management is another tool available at these levels. Risk management and performance management combine to achieve the ultimate mission of any organization: to maximize stakeholder value. Risk management is not about minimizing an organization's risk exposure. Quite the contrary, it is all about exploiting risk for maximum competitive advantage. The last tool we will discuss, and arguably the most important, is the organizations Culture.
Culture consists of group norms of behavior and the underlying shared values that help keep those norms in place. For instance, when a senior leader in the military enters a room everyone stands up. Know one told them to do this; it is a shared value that all-military members have which keeps the norm ongoing. Understanding our culture is arguably the single most important factor in any organization. There are three key framework principle that must be understood before any cultural decisions can be made. First, understand that people prosper from success. Create an environment wherein they are successful, especially early in their career. Utilize a process of successive approximation wherein success is achieved in tasks of increasing difficulty and overall complexity. Second, people learn while observing others. Assign new personnel to successful workgroups. Let them begin to experience “vicarious success.” Simply possessing membership in successful, or elite groups may create a self-fulfilling prophecy. Thirdly, provide encouragement, support, and even mentoring. Research suggests that the single most powerful predictor of human resilience is interpersonal support. With these three factors, you can make the appropriate cultural changes needed to make this a successful organization.
We have spent the last five minutes discussing some key factors you need to know about Performance Management. Embrace the fact that there is a direct correlation between your actions as managers and your employee’s actions, which directly affects the effectiveness of this organization. Please take what you have learned here and apply it to your respective departments.
Mike Samsel Assignment 6.1
Performance management is the systematic process by
which an agency involves its employees, as individuals
and members of a group, in improving organizational
effectiveness in the accomplishment of agency mission
3 Levels of Organizational
Brudan, A. (2010). Rediscovering performance management: Systems, learning and integration.
Measuring Business Excellence, 14(1), 109-123. doi:http://dx.doi.org/ 10.1108/13683041011027490
Give appraisal and ratings
Rewards and Recognition
Operational and Strategic
Scorecards and Dashboards
Blumshapiro. Dashboards & Scorecards – What Exactly Are They? And which one should I use? Retrieved from:
Watson, H. J. (2006, Second). Dashboards and scorecards. Business Intelligence Journal, 11, 4-7. Retrieved from
People prosper from success
People learn while observing others
Everly, G. (24 Jun 2011). Building a Resilient Organizational Culture; Harvard Business Review. Retrieved from:
Kotter, J. (27 Sep 2012). The Key to Changing Organizational Culture. Retrieved from: