Performance management is an ongoing process that involves communication between supervisors and employees to discuss goals, provide feedback, and evaluate performance in support of organizational objectives. It includes setting expectations, providing ongoing feedback, formal evaluations, and development planning. The goals are to improve employee performance, provide administrative information, and facilitate organizational goals and change. An ideal system is strategic, practical, fair, standardized, and promotes open communication and development.

2. What is Performance Management?
Performance management is an ongoing process of
communication between a supervisor and an
employee that occurs throughout the year, in support
of accomplishing the strategic objectives of the
organization.

3. Basic Performance Management process

4. The Annual diagram complete process
Develop
position
descriptio
n
Establish
performanc
e
expectation
Identify
training ,
tool needed
Ongoing
feedback
and
communi
cation
Handle
arising
issues
Adjust
assignmen
t as
needed
Formal
performa
nce
evaluatio
n
Discuss
possible
profession
developmen
t plan
Merit
reward
process

5. Deference
Performance Management
Strategic business
considerations
Driven by line manager
Ongoing feedback
So employee can
improve performance
 Performance Appraisal
 Driven by HR
Assesses employee
Strengths &
Weaknesses
Once a year
Lacks ongoing feedback

6. The communication process includes?
1. Setting Objectives
2. Discussing Expectations and Performance Standards
3. Identifying Goals (defined next)
4. Providing Feedback
5. Evaluating Results

7. Developing Performance Goals/Objectives
with the alignment of performance
Performance expectations should be clear, brief,
attainable, and measurable, and can be expressed in
terms of:
1. Quality
2. Quantity
3. Timeliness
4. Effective use of Resources
5. Method of Performing

8. Characteristics of Good Objectives
 Specific and Clear
 Challenging
 Agreed Upon
 Significant
 Prioritized
 Bound by Time
 Achievable
 Fully
Communicated
 Flexible
 Limited in Number

9. Counseling and Coaching Tips
 Share knowledge and experience
 Share feedback and observations
 Use questioning to stimulate thinking
 Facilitate by listening
 Encourage brainstorming
 Explore options and consequences together
 Allow the employee to find their own conclusions and
solve their own problems when possible

10. Contributions of Performance Management
For Employees
 Clarify definitions of
 job
 success criteria
 Increase motivation to perform
 Increase self-esteem
 Enhance self-insight and development

11. Contributions of Performance Management
For Employers
 Communicate supervisors’ views of performance
more clearly
 Managers gain insight about subordinates
 Better and more timely differentiation between
good and poor performers
 Employees become more competent

12. Contributions of Performance Management
For Organization/HR Function
 Clarify organizational goals
 Facilitate organizational change( function,
operation or goal/ flexible).
 More appropriate administrative actions(cost
benefit analysis)
 Better protection from lawsuits

13. Administrative Purpose
 Provide information for making decisions re:
 Salary adjustments
 Promotions
 Retention or termination
 Recognition of individual performance
 Layoffs.

14. An Ideal PM System:
14 Characteristics
1. Congruent with organizational strategy
2. Thorough
3. Practical
4. Meaningful
5. Specific(limited and alignment of org strategic
planning)
6. Identifies effective/ ineffective performance
7. Reliable

15. Characteristics Continued.......
8. Valid
9. Acceptable and Fair
10. Inclusive(can 360 evaluation)
11. Open (No Secrets) (ie.MBO, clarify
performance measurement scales)
12. Correctable (judgment can fallible)
13. Standardized (below explained)
14. Ethical (privacy, no personal relationship ),
suppresses self interest

16. Standards must include:
 A verb
 The desired result
 A due date
 Some type of indicator
 Quality and/or
 Quantity.
 Differ to differ organization, well mentored
criteria of management for performance.

17. Open (No Secrets)
 Frequent, ongoing evaluations and feedback
Work performed  evaluation received 
reward
 2-way communications in appraisal meeting
 Clear standards, ongoing communication
 Communications are factual, open, honest
_(for both effective and ineffective performance)

18. Developmental Purpose
Performance feedback/coaching
Identification of individual strengths and
weaknesses
Causes of performance deficiencies
Tailor development of individual career path

19. Thorough
 All employees are evaluated
 All major job responsibilities are evaluated
 Evaluations cover performance for entire review
period
 Feedback is given on both positive and negative
performance

20. 0% 50% 100%
PM in place for more than 5 years 52%
PM covers all jobs 91%
Objective setting 99%
Performance review 99%
Personal development plans 89%
Performance improvement plans 74%
360-degree 30%
INCIDENCE AND FEATURES
e-reward survey of performance management 2005
(n = 181)