• Performance Management as “Managing the Performance of an organisation or individual”• What could be the Broader Meaning of the term performance management.
• “It involves understanding and acting on performance issues at each level of the organisation, from individuals, teams and directorates, through to the organisation itself.• As well as involving performance measurement, are the various systems and processes, performance management is about managing people and ‘the way people within an organisation operate and work together’.• Issues such as leadership, decision making, involving others, motivation, encouraging innovation, and risk taking are just as important to bring about improvement”
Scope of Performance Management- Strategy Formulation.- Manage the strategy implementation process- Challenge assumptions,- Check position-Comply with the non-negotiable parametersCommunicate direction to the rest of the employees,-Communication with external stakeholders-Provide feedback,- Evaluate and reward behaviour- Establish priorities; and to motivate them to take actions and make decisions, which are consistent with organisational goals.- Benchmark the performance of different organisations, plants, departments, teams and individuals.- Inform managerial decision-making processes.- Encourage improvement and learning.
Major TraitsFeatures of an effectiveorganization, 1. Vision, 2. Clear Objectives and 3. Trust, Openess, and Comunication. Three common minor traits are: 1. Leadership 2. Skill and Personnel Develpment 3. Methodologies and Policies
1. Overall Organization 2. Board• Has a clear mission statement that is • Board numbers a minimum of five known to its board, staff and clients and voting members which informs all its programming• Has a written policy of inclusiveness • Board includes representatives of the concerning board, staff and clients communities served by the• Has written policies for board, staff and organization clients prohibiting discrimination and • Board members are free from harassment conflicts of interest regarding• Has all necessary Policies and Procedures organizations staff and operations manuals that are relevant to current • Board exerts active oversight of the programming financial affairs of the organization• Has a current Strategic Plan and is pursuing it • Board has as one of its main charges• Actively engages with the broader to fundraise for the organization community through coalitions, advocacy • Client representatives sit on the efforts, etc. agencys board• Has written succession policies concerning the executive director, members of the board and key program staff
3. Staff 4. Programs• Staff is reflective of the population served by the agency • Programs clearly fit within the agencys mission statement• Staff has necessary qualifications and/or characteristics to run programs• There are written job descriptions that are current and if a new program is • Agency has investigated similar programs run by other being launched, the necessary and appropriate staff requirements have agencies and can clearly state the need for its particular been thought out and are delineated programming and what specific niche(s) it serves• Staff should have competitive salary and benefits packages • Staff input has been sought when developing programs• Appropriate and ongoing training is available to all staff • Client input has been sought when developing programs • Specific program goals have been developed and results are reviewed regularly • Systems appropriate to the nature of the organization are in place to safeguard client confidentiality • Feedback is sought on a regular basis from staff, clients and community on whether or not current programs are serving their stated purposes • When appropriate, clients are connected to additional appropriate services • Data collection systems are in place to appropriately: Track client demographics Track client development/improvement Track program goals • Program has support from the community
Finance• Agency can supply accurate budgets (for both agency and program) and explain budget detail• Agency spends at least 65% of its total expenses on program activities• Agency spends no more that 35% of related contributions on fund raising• Agency has an accounting system adequate to its program needs• Agency files an annual tax return, or, if required, has an annual audit on a timely basis• Agency has a development plan adequate to its program needs• Agency has diversified its funding base• Fundraising efforts are in accord with the stated agency mission
Performance management process• Performance Management is a process for establishing a shared understanding about what is to be achieved and how it is to be achieved. It is an approach to managing people that increases the probability of achieving success.• Establish job accountabilities and performance measures, Understand behaviours, Create development plans
Merit Rating• A payment system in which the personal qualities of an employee are rated according to organizational requirements, and a pay increase or bonus is made against the results of this rating. Merit rating has been in use since the 1950s, and examines an employees input to the organization (for example, their attendance, adaptability, or aptitude) as well as the quality or quantity of work produced. In merit rating programs, these factors may be weighted to reflect their relative importance and the resultant points score determines whether the employee earns a bonus or pay increase.• Merit Rating has yielded place for ------------.
MBO• The concept of ‘Management by Objectives’ (MBO) was first given by Peter Drucker in 1954. It can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed.
Features & Advantages of MBO• Clarity of goals – With MBO, came the concept of SMART goals i.e. goals that are: Specific Measurable Achievable Realistic, and Time bound. The focus is on future rather than on past. Goals and standards are set for the performance for the future with periodic reviews and feedback.• Motivation – Involving employees in the whole process of goal setting and increasing employee empowerment increases employee job satisfaction and commitment.• Better communication and Coordination – Frequent reviews and interactions between superiors and subordinates helps to maintain harmonious relationships within the enterprise and also solve many problems faced during the period.