Performance Management and Appraisal.

1. Performance Management
By
Abhiram A. Sadhu
Roll No:TYMCA 21

2. Index:
 Objective
 Introduction
 What do we mean by performance management?
 Performance management: why is it used?
 How does a performance management system look?
 Objectives of Performance Management Systems
 Performance Management Some Problems
 HowTo Implement Effective Performance Management?
 Performance appraisal: interviewing skills
 Ideally an appraisal meeting is where
 Summing Up
 Features of Performance Management Systems

3. Objectives
 To recall why performance management is
important – in theory and practice.
 To understand the purpose and nature of the
appraisal interview in the performance
management process.

4. Introduction
Performance Management…
-has a critical role to play in organisational performance.
-is widespread (found in nine out of ten firms).
-is vital to all employees.
-is increasingly carried out by line managers.
-is one of the most difficult tasks managers have to
carry out.

5. What do we mean by performance
management?
‘the policies, procedures and practices that focus on employee performance
as a means of fulfilling organisational goals and objectives.’
-(Lowry (2002) in Marchington andWilkinson)
‘establishing a framework in which performance by individuals can be
directed, monitored, evaluated and rewarded, and whereby the links in
the cycle can be audited.’
-(Mabey and Salaman (1995) inTorrington et al)

6. Performance Management: why is it used?
 Key role in linking the goals of the organisation
to the individual (vertical integration).
 Gives a synergy with other HR practices e.g.
reward systems (horizontal integration).
 Seeking to improve performance at an
organisational and individual level.
 Ritualistic aspects.

7. How does a performance management
system look?

8. Objectives of Performance Management
Systems
 Set objectives and review performance
against objectives/standards.
 Personal development: identify training
and development needs and potential.
 Linking team and organisational
objectives.

9. Performance Management:
some problems
 Conflicting purposes: judge/coach dilemma.
 Role of the appraiser: competence, motivation and values.
 Role of the appraisee: promotion and development.
 Appraiser/appraisee relationship: quality is key.
 Validity of the criteria: are they related to the job?
 What is the quality of the data collected?
 Impact of performance appraisal on performance.

10. HowTo Implement Effective Performance
Management?

11. Performance appraisal: interviewing skills
 Ask the right questions: open, probing, follow up and
reflective.
 Engage in active, careful listening to all forms of
communication.
 Provide feedback based on evidence and examples.
 Avoid: a focus on failure, control by the appraiser, ends
with disagreement.
(CIPD Performance Appraisal Fact Sheet at cipd.co.uk)

12. Ideally an appraisal meeting is where…
 Appraisees do most of the talking.
 Appraisers listen actively and provide feedback.
 Scope for reflection and analysis – an exchange of views.
 Performance is analysed not personalities.
 Whole period is reviewed not just isolated incidents –
evidence based.
 Achievement is recognised and reinforced.
 Identify areas for improvement – set agree objectives.
 Ends positively with agreed action plans to improve
performance.
(CIPD Performance Appraisal Fact Sheet at cipd.co.uk)

13. Summing Up
 Key strategic and individual role of performance
management – new developments.
 Key task for line managers but difficult to carry out
successfully.
 Powerful influence on behaviour – both positive and
negative.
 Requires careful support and implementation by line
managers.

14. Features of Performance Management
Systems
% use % effective
Individual annual appraisal 65 83
Objective setting and review 62 82
Personal development plans 62 81
Career management 37 47
Coaching 36 46
Performance related pay 31 39
Competence assessment 31 39
Self appraisal 30 53

15. % use % effective
Twice yearly 27 38
360 degree 14 20
Continuous 14 20
Subordinate 11 17
Rolling 10 21
Peer 8 12
Competence related 7 11
Team 6 10
Contribution 4 6
Team pay 3 5
Source: Performance Management Survey Report September 2005CIPD