Performance Management and Employee development. Performance Management contribution, disadvantages of poor implementation of performance management, aims and role, characteristics, process, strategic planning and leadership development program

1. Performance Management and
Employee Development

2. It is a continuous process of identifying, measuring &
developing the performance of individuals & teams & aligning
performance with the strategic goals of the organization.

3. Performance management contribution:
There are many advantages associated with the implementation of a
performance management system can make the following important contribution:
1. Motivation to perform is increased: Receiving feedback about one’s performance
increases the motivation for future performance.
2. Self-esteem is increased: Receiving feedback about one’s performance fulfills a basic
human need to be recognized & valued at work.
3. Managers gain insight about subordinates: Direct supervisors & other managers in
charge of the appraisal gain new insights into the person being appraised.
4.The definition of job & criteria are clarified: The job of the person being appraised may
be clarified & defined more clearly.
5. Self-insight & development are enhanced: The participants in the system are likely to
develop a better understanding of themselves & of the kind of development activities that
are of value to them as they progress through the organization.

4. 6. Administrative actions are more fair & appropriate: Performance management system
provide valid information about performance that can be used for administrative actions
such as merit increases, promotions & transfers as well as terminations.
7. Organizational goals are made clear: The goals of the unit & the organization are made
clear & the employee understands the link between what she does & organizational
success.
8.Emplyees become more competent: An obvious contribution is that employee
performance is improved. In addition, there is a solid foundation for helping employees
become more successful by establishing developmental plans.
9.Employee misconduct is minimized: Employee misconduct is an increasingly pervasive
phenomenon that has received wide spread media coverage. Such misconduct includes
accounting irregularities, churning customer accounts, abusing overtime policies, giving
inappropriate gifts to clients & potential clients hoping to secure their business & using
company resources for personal use.
10.There is better protection lawsuits: Data collected through performance management
system can help document compliance with regulations.

5. 11. There is better more timely differentiation between good & poor performers:
Performance management system allow for quicker identification for good & poor
performers.
12. Supervisors views of performance or communicated more clearly: Performance
management systems allow managers to communicate to their subordinates their
judgments regarding performance.
13. Organizational change is facilitated: Performance management system can be a
useful tool to drive organizational change.
14. Motivation, commitment & intentions to stay in the organization are enhanced:
When employees are satisfied with their organizations performance management system,
they are more likely to be motivated to perform well, to be committed to their
organization & not try to leave the organization.
15. Voice behavior is encouraged: A well implemented performance management system
allows employees to engage in voice behavior that can lead to improved organizational
processes.
16. Employees engagement is enhanced: A good performance management system leads
to enhanced employee engagement. Employees who are engaged feel involved,
committed, passionate & empowered.

6. Disadvantages/ dangerous of poorly implemented PM system:
1. Increased turnover: If the process is not seen as fair, employees may become upset &
leave the organization.
2.Use of misleading information: If a standardized system is not in place, there are
multiple opportunities for fabricating information about an employees performance.
3. Lowered self-esteem: Self-esteem may be lowered if feedback is provided in an
appropriate & inaccurate way.
4. Wasted time & money: PM system cost money & quite a bit of time, these resources
are wasted when systems are poorly designed & implemented.
5. Damaged relationships: As a consequence of deficit system, the relationship among
the individuals involved may me damaged, often permanently.
6. Decreased motivation to perform: Motivation may be lowered for many reasons
including the feeling that superior performance is not translated into meaningful tangible
or intangible.

7. 7. Employee burnout & job dissatisfaction: When performance assessment instrument is
not seen as a valid & the system is not perceived as fair employees are likely to feel
increased levels of job burnout & dissatisfaction.
8. Increased risk of litigation: Expensive lawsuits may be filled by individuals who feel
they have been appraised unfairly.
9. Unjustified demands on managers & employees resources: Poorly implemented
systems don’t provide the benefits provided by well implemented systems, yet they take up
managers & employees time.
10. Varying & unfair standards & ratings: Both standards & individuals ratings may vary
across & within units & be unfair.
11. Emerging biases: Personal values, biases & relationships are likely to replace
organizational standards
12. Unclear rating system: Because of poor communication, employees may not know
how there ratings are generated & how the ratings are translated into rewards.

8. AIMS AND ROLES OF PM SYSTEMS
1. Strategic purpose:
The first purpose of performance management systems is to help top
management achieve strategic business objectives. By linking the
organization’s goals with individual goals, the performance
management system reinforces behaviors consistent with the attainment
of organizational goals.
2. Administrative purpose:
A second function of performance management systems is to furnish
valid and useful information for making administrative decisions about
employees. Such administrative decisions include salary adjustments,
promotions, employee retention or termination, recognition of superior
individual performance, identification of poor performers, layoffs, and
merit increases.

9. 3. Informational purpose:
Performance management system serve as an important
communication device, First, they inform employees about how they
are doing and provide them with information on specific areas that may
need improvement
4. Developmental purpose:
As noted earlier, feedback is an important component of a well
implemented performance management system. This feedback can be
used in a developmental manner. Managers can use of feedback to
coach employees and improve performance on an ongoing basis.

10. 5. Organizational maintenance performance:
A fifth performance management system is to provide information to
be used in workforce planning. Workforce planning comprises a set of
systems that allows organizations to anticipate and respond to needs
emerging within and outside the organizations, to determines priorities,
and to allocate human resources where they can do the most good.
6. Documentation purpose:
finally, performance management systems allow organizations allow
organizations to collect useful information that can be used for several
documentation purpose. First, performances data can be used to
validate newly proposed selection instruments.

11. CHARACTERSTICS OF AN IDEAL
PM SYSTEMS
1. Strategic congruence
2. Thoroughness
3. Practicality
4. Meaningfulness
5. Specificity
6. Identification of effective
7. Reliability
8. Validity
9. Acceptability and fairness
10. Inclusiveness
11. Openness
12. Correctability
13. Standardization
14. Ethicality

12. Performance Management Process
Performance Management
Process
Performan
ce Review
e Renewal
and
Recontracti
ng
Performan
ce
Assessme
nt
Performan
ce
Execution
Performan
ce
Planning
Prerequisit
es

13. Step1. Prerequisites
1. Knowledge of the organization’s mission and strategic goals
 Strategic planning
• Purpose or reason for organization’s existence
• Where organization is going
• Organizational goals
• Strategies for attaining goals

14. 2. Knowledge of the job in question
Job analysis of key components
• Activities
• Tasks
• Products
• Services
• Processes
 KSAs required to do the job
• Knowledge
• Skills
• Abilities

15. Step2. Performance Planning:
Results
 Key accountabilities:
Broad areas of a job for which the employee is responsible for producing
results.
 Specific objectives:
 Statements of outcomes
 Important
 Measurable
 Performance standards:
• “Yardstick” to evaluate how well employees have achieved each objective
• Information on acceptable and unacceptable performance, such as
quality
quantity
cost
time

16. Step 2. Planning:
 Behaviors
• How a job is done
 Competencies
• Measurable clusters of KSAs
• Critical in determining how results will be achieved
 Development Plan
• Areas for improvement
• Goals to be achieved in each area of improvement

17. Step 3. Performance Execution:
 Employee Responsibilities
• Commitment to goal achievement
• Ongoing requests for feedback and coaching
• Communication with supervisor
• Collecting and sharing performance data
• Preparing for performance reviews
 Manager Responsibilities:
• Observation and documentation
• Updates
• Feedback
• Resources
• Reinforcement

18. Step 4. Performance Assessment
• Manager assessment
• Self-assessment
• Other sources (e.g., peers, customers, etc.)
 Multiple Assessments Are Necessary
• Increase employee ownership
• Increase commitment
• Provide information
• Ensure mutual understanding

19. Step 5. Conducting Productive Performance Reviews:
1. Identify what the employee has done well Or poorly
2. Solicit feedback
3. Discuss the implications of changing behaviors
4. Explain how skills used in past achievements can help
overcome any performance problems
5. Agree on an action plan
6. Set a follow-up meeting and agree on behaviors, actions,
attitudes to be evaluated

20. Step 6. Performance Renewal and Recontracting:
 Same as/different from Performance Planning
 Uses insights and information from previous phases
 Cycle begins again

21. Performance Management and Strategic Planning
Meaning of strategic planning:
Strategic planning is an organization’s process of defining its
strategy, or direction, and making decisions on allocating its
resources to pursue this strategy. It may also extend to control
mechanisms for guiding the implementation of the strategy.

22. Alignment of Strategic Plan with Performance
Organization’s Strategic Plan
Mission, Vision, Goals, Strategies
Unit’s Strategic Plan
Mission, Vision, Goals,
Strategies
Job Description
Tasks, KSAs
Individual and Team Performance
Results, Behaviors, Developmental Plan
Critical to involve all
levels of management
Critical to involve all employees

23. Job Descriptions
Tasks and KSAs are congruent with Organization and Unit
strategic plans
Activities described support mission and vision of Organization
and Unit
Individual and Team Performance
Organization and Unit mission, vision, goals lead to
Performance management system, which
Motivates employees
Aligns development plans with organization priorities

24. Goal setting
Goal setting involves the development of an action plan designed
to motivate and guide a person or group toward a goal. Goal
setting can be guided by goal-setting criteria (or rules) such as
SMART criteria.
Goal setting is a major component of personal-development and
management literature.

25. The process of setting goals should be a collaborative process
between an employee and his or her manager. Whether writing
long- or short-term goals, the most widely-used framework is S-
M-A-R-T.
• Specific: Well-defined to inform employees exactly what is
expected, when, and how much. With specific goals, managers can
easily measure progress toward goal completion.
• Measurable: Provide milestones to track progress and motivate
employees toward achievement.
• Attainable: Success needs to be achievable with effort by an
average employee, not too high or too low.
• Relevant: You should focus on the greatest impact to the overall
company strategy.
• Time-bound: Establish enough time to achieve the goal, but not
too much time to undermine performance. Goals without
deadlines tend to be overtaken by the day-to-day crises.

26. Coaching and Support
• Performance Coaching is a process where one person facilitates
the development and action planning of another, in order that the
individual can bring about changes in their lives.
• “Performance Support is providing intuitive, tailored aid to a
person at his or her moment of need to ensure the most effective
performance.”

27. Monitoring
• For a performance management system to be effective, employee progress
and performance must be continuously monitored. Monitoring day-to-day
performance does not mean watching over every aspect of how employees
carry out assigned activities and tasks. Managers should not micro-manage
employees, but rather focus their attention on results achieved, as well as
individual behaviors and team dynamics affecting the work environment.
During this phase, the employee and manager should meet regularly to:
• Assess progress towards meeting performance objectives
• Identify any barriers that may prevent the employee from accomplishing
performance objectives and what needs to be done to overcome them
• Share feedback on progress relative to the goals
• Identify any changes that may be required to the work plan as a result of a
shift in organization priorities or if the employee is required to take on new
responsibilities
• Determine if any extra support is required from the manager or others to
assist the employee in achieving his or her objectives

28. Appraisal
A performance appraisal (PA), also referred to as a performance
review, performance evaluation, (career) development
discussion, or employee appraisal is a method by which the job
performance of an employee is documented and evaluated.
Performance appraisals are a part of career development and
consist of regular reviews of employee performance within
organizations.

29. Feedback
• Positive feedback involves telling someone about good
performance. This feedback should be made timely, specific and
frequent. Recognition for effective performance is a powerful
motivator.
• Constructive feedback alerts an individual to an area in which
performance could improve. The main purpose of constructive
feedback is to help people understand where they stand in relation
to expected and/or productive job and workplace behavior.

30. Leadership Development
Programme

31. 1.Development through Self Awareness
Self-awareness helps managers identify gaps in their management
skills, which promotes skill development. But self-awareness also
helps managers find situations in which they will be most
effective, assists with intuitive decision making, and aids stress
management and motivation of oneself and others.
How Self-Awareness Makes You More Effective
• Skill development. Improvement projects should normally begin
with an assessment of the gap between the current situation and
the desired future situation. Having an accurate sense of who you
are helps you decide what you should do to improve. Often, self-
awareness will reveal a skills gap that you want to work on.

32. • Knowing your strengths and weaknesses. Self-awareness helps
you exploit your strengths and cope with your weaknesses. For
instance, if you are someone who is good at "seeing the big
picture" that surrounds decisions, but not as good at focusing on
the details, you might want to consult colleagues and subordinates
that are more detail-oriented when making major decisions.
• Developing intuitive decision-making skills. Leaders with well-
developed emotional self-awareness are more effective intuitive
decision makers. This type of decision making is becoming more
important for managers as the rate of change and the levels of
uncertainty and complexity in their competitive environments
increase. Managers who are highly emotionally self-aware are
better able to read their "gut feelings" and use them to guide
decisions.

33. • Stress. Jobs that don't suit your personality tend to give you more
stress than jobs that are more compatible. This is not to say that
you should never take a job that conflicts with your
personality. However, be aware that you will need to work extra
hard to develop the skills for that job, and there are jobs that
would be less stressful for you.
• Motivation. It's very difficult to cope with poor results when you
don't understand what causes them. When you don't know what
behaviors to change to improve your performance, you just feel
helpless. Self-awareness is empowering because it can reveal
where the performance problems are and indicate what can be
done to improve performance. In addition, awareness of your
psychological needs can increase your motivation by helping you
understand and seek out the rewards that you really desire such as
a sense of accomplishment, additional responsibility, an
opportunity to help others, or a flexible work schedule.

34. • Leadership. When we understand "what make us tick"--what
gets us excited, why we behave the way we do, etc.--we also have
insight into what makes others tick. To the extent that other
people are like you (and, of course, there are limits to the
similarity), knowing how to motivate yourself is tantamount to
knowing how to motivate others.

35. 2.Development through Self Discipline
Leadership development requires considerable self-discipline ,
mobilizing one’s effort and energy to stay focused on attaining an
important goal. Self-discipline plays an important role in the
continuous monitoring of one’s behavior to ensure that needed self-
development occurs

36. 3.Development Through Education
MEANING
Education enriches people’s understanding of themselves and
world. It improves the quality of their lives and leads to broad
social benefits to individuals and society.
UN Secretary general has said: “people are the greatest wealth of
the country, but that wealth must be built on quality education”

37. The central theoretical argument of this paper is that educational
leadership and organisational development and change in
educational institutions in developing countries will not be
effective unless school leaders are aware of the challenges posed
by contextual factors that might have an impact on their
professional activities. The article contributes to the discourse on
educational leadership in developing countries by explicating
three such sets of contextual forces that educational leadership
ought to take into account :
(1) The contours of the education system in which school leadership,
organisational change and development occur
(2) societal and
(3) International contexts.

38. 4.Development Through Experience
• Challenging Experiences: The best experiences for leadership
development are those that challenge the manager realistically.
The goal of leadership development is to provide meaningful
development opportunities, not to push managers to the point
where they are most likely to fail.
• Sources of Experience: The two major developmental factors
in any work situation are work associates and the task itself.
Work associates can serve as positive or negative models.
Work-related tasks give the leader an opportunity to become an
effective and innovative problem solver. Another way of
obtaining experience helpful for development is to learn from
the wisdom of leaders who have been through challenges. The
CEO Academy represents a formal approach to experience
sharing.

39. • Broad Experience: Many aspects of leadership are situational.
Gaining managerial experience in different settings is therefore
advantageous. Multifunctional managerial development is an
organization’s intentional efforts to enhance the effectiveness of
managers by giving them experience in multiple organizational
functions. The lowest level of commitment would be for managers
simply to study other functions. The highest level of commitment
is complete mobility across functions, as exemplified by the career
maze at Hewlett-Packard. Achieving broad experience fits well
with the current emphasis on growth through learning new skills
rather than a preoccupation with vertical mobility

40. • Provide support and encouragement: Developmental
experiences can be extremely stressful, even when individuals are
committed to their learning and growth. People experiencing them
need support (e.g., opportunities to acknowledge and discuss what
is challenging and to come up with potential solutions) and
encouragement (e.g., clearly communicating your belief in their
ability to complete the task, emphasizing the growth you have
already seen and the remaining opportunities for development).
• Practice, Practice, Practice: Like any domain where expertise is
involved, developing leadership skills involves what David Day
calls “dedicated practice:” a sustained investment of time, energy,
and focus, where the to-be-learned leadership skills are exercised
in a variety of settings. Leadership coaches can help hold leaders
accountable during this process, in addition to providing support
and encouragement.

41. • Provide Feedback: Accurate and timely feedback is critical as
aspiring leaders try to learn what skills they have improved and
where developmental challenges remain. Given the stress inherent
in developmental experiences, though, it is important to be
mindful about when and how such feedback is delivered.
Feedback providers must balance the benefit of feedback with
what the aspiring leader may be “able to hear” during a stressful
situation.

42. 5.Development Through mentoring
Meaning :
“Mentoring appears to mean one thing to developmental
psychologists, another thing to business people, and a third thing
to those in academic settings”
“A powerful emotional interaction between an older and younger
person, in a relationship in which the older mentor is trusted,
loving, and experienced in the guidance of the younger”

43. The following steps are recommended to enhance the success of
mentoring in a leadership development program:
• Review your succession planning to decide who should be part of
the mentoring program.
• Qualify your mentors; these should be executives that have
enough years of experience within your company, are part of your
leadership team and have the competencies needed to be a good
mentor.
• Create a matching application form that allows matching to occur
based on leadership development competencies- mentoring
software can assist you in this process.
• Once you have enough mentors and mentees, provide training.
This includes role definition, the mentoring process, phases in the
relationship, tips and advice.

44. • Mentoring allows you to give something back— to the
organization, but also to a younger person
• You can share your valuable knowledge and experience, which
boosts your own confidence and sense of self-worth
• It allows you to practice your active listening skills - a leadership
skill that comes in handy when you're trying to collect feedback
from your teams or brainstorm solutions
• Being a mentor builds your interpersonal skills - a valuable asset
in negotiations and team building
• Set up a portal to allow mentors and mentees to enrol in the
program and mentees to choose their mentor.
• Evaluate to see if the program was a success; ask managers,
mentees and mentors on if leadership development has taken
place.

45. 6. Development Through Succession
Meaning
“Succession planning is a process for identifying and developing
new leaders who can replace old leaders when they leave, retire or
die... In business,
succession planning entails developing internal people wit the
potential to fill key business leadership positions in the company”
Succession management is designed to ensure you have the
leadership capacity to execute strategy and support future growth
of the company. But, it takes more than a succession plan to
prepare leaders to sustain a company culture or take on the
challenges of the future. .

46. • Seek out the perspectives of your leaders on what it means to be a
successful leader at your organization.
• Don’t rely on managers to assess the potential of their direct
reports.
• Use a variety of methods to assess leaders’ skills, experiences,
attributes and reputations.
• Hold leaders responsible for developing and executing their
individual development plans, but make sure they have the
support and coaching they need.

47. THANK YOU