2. What is performance management
• Performance management is a continues
process of identifying, measuring, and
developing the performance of individuals and
teams and aligning performance with the
strategic goals.
• Performance management V/S performance
appraisal
3. Performance Management
• Merrill Lynch shift from Performance appraisal
to performance management
• Feedback mechanism
“This is what is expected from you, this is how
we are going to help you in your development
and this is how you will be judged relative to
compensation. “
4. Performance Management
• Description of Siemens Performance
management system
• Communication through the organization
“A clear and measurable goals, Implementing
concrete actions and imposing rigorous
consequences.”
5. Contributions of Performance
Management (PM) Systems
• Motivation
• Self esteem
• More insight about subordinates and self
• Clearly defined job criteria
• Administrative actions are more fair
6. Contributions of Performance
Management (PM) Systems
• Organizational Goals are more clear
• Employee become more competent
• Supervisors view about performance is
communicated more clearly
• Timely differentiation between good and poor
performers
• Organization change is facilitated
7. Disadvantages of Poorly implemented
PM system
• Increased turnover
• Use of misleading information
• Waste time and money
• Employee burnout and reduce job satisfaction
• Varying standards
• Emerging biases
• Unclear rating system
8. Reward system
A mechanism for distributing tangible and intangible returns as a part of
employment relations
Component Degree of Dependency
• Base pay Low
• COLAs Low
• Work life focus Moderate
• Allowances Moderate
• Relational returns Moderate
• Base pay Moderate
• Contingent pay High
• Short term Incentives High
• Long term incentives High
