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Performance management 1


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Performance management 1

  1. 1. Performance Management
  2. 2. What Is Performance? <ul><li>Performance means both behaviours and results </li></ul><ul><li>When managing performance both inputs (behaviour) and outputs (results) need to be considered </li></ul><ul><li>This is called the ‘Mixed Model’ </li></ul>
  3. 3. What is Performance Management?
  4. 4. <ul><li>Performance management is: ‘The development of individuals with competence and commitment, working towards the achievement of shared meaningful objectives within an organization which supports and encourages their achievement’. </li></ul><ul><li>Performance management is: the process of ‘Directing and supporting employees to work as effectively and efficiently as possible in line with the needs of the organization’ (Walters, 3). </li></ul>
  5. 5. <ul><li>‘ Performance management is a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors’ (Armstrong and Baron, 4). </li></ul>
  6. 6. <ul><li>to establish a high performance culture </li></ul><ul><li>to focus people on doing the right things </li></ul><ul><li>To align individual objectives to organizational objectives </li></ul><ul><li>to develop the capacity of people to meet and exceed expectations </li></ul><ul><li>Empowering, motivating and rewarding employees to do their best </li></ul>
  7. 7. Characteristics of Performance Management <ul><li>continuous and flexible process </li></ul><ul><li>the primary elements are agreement, measurement, feedback, positive reinforcement and dialogue. </li></ul><ul><li>based on the principle of management by contract and agreement rather than management by command </li></ul><ul><li>focuses on future performance planning </li></ul>
  8. 8. <ul><li>Concern with outputs, outcomes, process and inputs. </li></ul><ul><li>Concern with planning. </li></ul><ul><li>Concern with measurement and review. </li></ul><ul><li>Concern with continuous improvement. </li></ul>
  9. 9. <ul><li>Concern with continuous development. </li></ul><ul><li>Concern for communication. </li></ul><ul><li>Concern for stakeholders. </li></ul><ul><li>Concern for fairness and transparency. </li></ul>
  10. 10. Few Concepts <ul><li>The meaning of alignment </li></ul><ul><li>Managing expectations </li></ul><ul><li>Discretionary behaviour </li></ul><ul><li>Performance Agreement </li></ul>
  11. 11. <ul><li>Performance Planning </li></ul><ul><li>Development Planning </li></ul><ul><li>Input </li></ul><ul><li>Output measures </li></ul><ul><li>Outcome Measures </li></ul>
  12. 12. Process Of Performance Management
  13. 13. The Management Cycle
  14. 14. PM Cycle
  15. 15. Performance Management Sequence
  16. 18. Performance Management in Action At <ul><li>Halifax Bank of Scotland Retail (HBOS) </li></ul>
  17. 19. <ul><li>Essence Of performance Management </li></ul><ul><li>Aim </li></ul><ul><li>Principles </li></ul><ul><li>Key phrase - ‘Unleashing the performance of our people’ </li></ul><ul><li>Performance Matrix </li></ul>
  18. 21. Performance Management in Action At <ul><li>Standard Chartered Bank </li></ul>
  19. 23. PERFORMANCE MANAGEMENT AND NON-FINANCIAL REWARDS <ul><li>Performance management and recognition </li></ul><ul><li>Performance management and the provision of opportunities to achieve </li></ul><ul><li>Performance management and skills development </li></ul><ul><li>Performance management and career planning </li></ul><ul><li>Performance management and job engagement </li></ul><ul><li>Performance management and commitment </li></ul>
  20. 24. Performance Mgt Roles <ul><li>Top Managers </li></ul><ul><li>Line Managers </li></ul><ul><li>Employees </li></ul><ul><li>HR specialists </li></ul>
  21. 25. Top Managers <ul><li>Communicate a clear sense of mission </li></ul><ul><li>Clear line of sight </li></ul><ul><li>Expectations are defined </li></ul><ul><li>Everyone is kept informed of progress </li></ul>
  22. 26. Line Managers <ul><li>Bring policies to life. </li></ul>
  23. 27. Employees <ul><li>Top to bottom </li></ul><ul><li>Pay and future is affected </li></ul>
  24. 28. HR role <ul><li>Helping employees to develop skills </li></ul><ul><li>Creates mentors and coaches. </li></ul><ul><li>Conduct surveys </li></ul><ul><li>Training events </li></ul>
  25. 29. PM Development programme <ul><li>Stage 1: Decide on the business case for introducing performance Management </li></ul><ul><li>Stage 2: Determine objectives and guiding principles for performance management </li></ul><ul><li>Stage 3: Get the commitment and active participation of top management and line managers </li></ul><ul><li>Stage 4: Draw up guiding principles on how performance management should work </li></ul><ul><li>Stage 5: Define performance management processes and documentation </li></ul><ul><li>Stage 6: Pilot-test </li></ul><ul><li>Stage 7: Communicate </li></ul><ul><li>Stage 8: Plan arrangements for training in performance Management </li></ul><ul><li>Stage 9: Implement </li></ul><ul><li>Stage 10: Evaluate </li></ul>
  26. 30. Evaluating performance management
  27. 31. Evaluating performance management <ul><li>Performance agreement </li></ul><ul><li>Objectives </li></ul><ul><li>Feedback </li></ul><ul><li>Review </li></ul><ul><li>Motivation </li></ul><ul><li>Development </li></ul><ul><li>Ratings </li></ul><ul><li>Performance Related pay </li></ul><ul><li>Documentation </li></ul><ul><li>Training </li></ul>
  28. 32. Performance Appraisal <ul><li>Performance appraisal is a method of acquiring and processing the information needed to improve an individual employee’s performance and accomplishments. </li></ul>
  29. 33. Objectives Of Performance appraisal <ul><li>  To judge the gap between the actual and the desired performance </li></ul><ul><li>  </li></ul><ul><li>Helps to strengthen the relationship and communication </li></ul><ul><li>  </li></ul><ul><li>To diagnose the strengths and weaknesses of the individuals </li></ul><ul><li>  </li></ul><ul><li>To provide feedback to the employees regarding their past performance. </li></ul><ul><li>To determine who needs what training, and who will be promoted, demoted, retained, or fired. </li></ul><ul><li>Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. </li></ul>
  30. 34. Purpose
  31. 35. <ul><li>Administrative purposes </li></ul><ul><ul><li>Working conditions </li></ul></ul><ul><ul><li>Promotions </li></ul></ul><ul><ul><li>Termination </li></ul></ul><ul><ul><li>Rewards </li></ul></ul><ul><li>Developmental purposes </li></ul><ul><ul><li>Improving Performance </li></ul></ul><ul><ul><li>Strengthening job skills </li></ul></ul><ul><ul><li>Providing feedback </li></ul></ul><ul><ul><li>Counseling </li></ul></ul><ul><ul><li>Training </li></ul></ul>
  32. 36. Setting Performance standards Taking corrective standards Comparing standards Communication standards Measuring standards Discussing result
  33. 37. Challenges Of Performance Appraisal <ul><li>Determining the evaluation criteria </li></ul><ul><li>Create a rating instrument </li></ul><ul><li>Lack of competence </li></ul><ul><li>Errors in rating & evaluation </li></ul><ul><li>Resistance </li></ul>
  34. 38. Methods of Performance Appraisal <ul><li>Past Oriented Methods </li></ul><ul><li>Checklist </li></ul><ul><li>Forced Distribution </li></ul><ul><li>Rating Scales </li></ul><ul><li>Field review </li></ul><ul><li>Paired-comparison Method </li></ul><ul><li>Straight Ranking Method </li></ul>
  35. 39. Modern Methods of Performance Appraisal <ul><li>Assessment Centre </li></ul><ul><li>Behaviorally Anchored Rating </li></ul><ul><li>Human Resource Accounting Method </li></ul><ul><li>360 – Degree- Performance- Appraisal Method </li></ul><ul><li>Management by Objectives (MBO)Method </li></ul>
  36. 40. Assessment Centre
  37. 41. Behaviorally Anchored Rating
  38. 42. Human Resource Accounting Method
  39. 43. 360 – Degree- Performance- Appraisal Method
  40. 44. Management by Objectives (MBO)Method
  41. 45. Measuring performance at different levels <ul><li>For top level management </li></ul><ul><li>Degree of organizational growth and expansion </li></ul><ul><li>Extent of achievement of organizational goals </li></ul><ul><li>Contribution towards the society </li></ul><ul><li>Profitability and return on capital employed </li></ul>
  42. 46. Measuring performance at different levels <ul><li>For middle level managers </li></ul><ul><li>Performance of the departments or teams </li></ul><ul><li>Co-ordination with other departments </li></ul><ul><li>Optimal use of resources </li></ul><ul><li>Costs Vs. revenues for a given period of time </li></ul><ul><li>The communication with superiors and subordinates </li></ul>
  43. 47. Measuring performance at different levels <ul><li>For front line supervisors </li></ul><ul><li>Quantity of actual output against the targets </li></ul><ul><li>  </li></ul><ul><li>Quality of output against the targets </li></ul><ul><li>Number of accidents in a given period </li></ul><ul><li>Rate of employee absenteeism </li></ul>
  44. 48. Performance Appraisal as Employee Motivation Mechanism <ul><li>Inaccurate performance Review Increase in salary Deceased Motivation </li></ul><ul><li>Performance Review No increase in salary Deceased Motivation </li></ul><ul><li>Accurate Performance Review Increase in salary Motivation </li></ul>
  45. 49. Difference Between Performance Management & Performance Appraisal
  46. 50. Performance management Performance appraisal <ul><li>Joint Process through dialogue </li></ul><ul><li>Continuous review with on or more formal interview </li></ul><ul><li>Ratings less common </li></ul><ul><li>Flexible Process </li></ul><ul><li>Top Down Assessment </li></ul><ul><li>Annual appraisal meeting </li></ul><ul><li>Use Of ratings </li></ul><ul><li>Monolithic process </li></ul>
  47. 51. Performance management Performance appraisal <ul><li>Focus On values & Behaviours as well as processes </li></ul><ul><li>Less likely to be a direct link to pay </li></ul><ul><li>Documentation Kept to a minimum </li></ul><ul><li>Owned by Line Managers </li></ul><ul><li>Focus On quantified Objectives </li></ul><ul><li>Often linked to pay </li></ul><ul><li>Bureaucratic-Complex paper work </li></ul><ul><li>Owned by HR department </li></ul>
  48. 52. <ul><li>Thank You </li></ul>