PM- Definition, concerns and scope
The management of performance
A short history of performance management
CONCERNS AND SCOPE
PM is a strategic and integrated approach to delivering
sustained success to organisations by improving the
performance of the people who work in them and by
developing the capabilities of teams and individual
Human resource integration
Individual needs with the org.
STRATEGIC AND INTEGRATED
Output: achievement of results.
Outcome: impact made on performance.
Process: required to achieve these results(competencies) and
the inputs in terms of capabilities (knowledge, skill and
competence) expected from the teams and individuals
Inputs: Competence assessment – danger if lack validity and
CONCERN WITH OUTPUT, OUTCOMES,
PROCESS AND INPUTS
To achieve future success
Defining expectations expressed as objectives and in business
CONCERN WITH PLANNING
Concerns with measurement and review : If you can’t
measure it , you can’t manage it.
Concerns with continuous development and improvement:
from the successes and challenges in their day to day
Concern for communication: continuous dialogue between
managers and members of the team takes place for mutual
understanding of what is to be achieved and ensure that it
will be achieved.
Concern for stakeholders: employees as partners, PM should
respect the needs of individuals and teams as well as those of
Ethical concerns: respect for individual, mutual respect,
procedural fairness, transparency
Managing the organisation
Managing within the context of business(internal and external
Manage context not performance: Jones
Manager and their teams are jointly accountable for results
SCOPE OF PM..
Importance of defining objectives and of planning to achieve
Give every employee a business person’s strong sense of
revenue, cost and profit
Pursue fast paced innovation
Relationships and communication are more important than
the formal channels
The pursuit of high performance by developing competence
FEATURES OF AN EFFECTIVE ORGANISATION
Importance of goals, and measuring and monitoring of
performance in relation to goals
Importance of context(structure, process and people)
Importance of competence
Importance of value chain
IMPLICATIONS FOR THE MANAGEMENT OF
PERFORMANCE: SEARS MODEL
Oxford dictionary: The accomplishment, execution, carrying out,
working out of anything ordered or undertaken.
By Brumbrach: Performance means both behavior and results.
Context of org.
Purpose and value statement
Human resource management
WHAT MAKES PERFORMANCE WELL??
dynasty in china had
an imperial rater
1556) introduced formal
rating of the members
of the society of Jesus
First formal rating
system by Fredrick Taylor
before world war I
Rating for US armed
forces in 1920, merit
rating in US and UK
in 1950s and 1960s.
Revised form of
W D Scott who introduced man to man comparison scale
This scale was modified an used to rate the efficiency of US
Initiated an era of promotion on the basis of merit
Graphic rating scale
MERIT RATING AND PERFORMANCE
McGregor said focus should be on the future rather than the
past in order to establish realistic targets and seek the most
effective ways of reaching them.
The superior instead of becoming psychologist or therapist
can become a coach.
Mainly concerns with the assessment of traits
Assessment of traits are subjective judgments and prompted
By Peter Drucker(1955)
Integration of individual and corporate goals
MANAGEMENT BY OBJECTIVES
1. Development of role & mission statement.
2. Establishing strategic goals/strategic plan.
3. Defining key results areas.
4. Establishing indicators or effectiveness, goals, or organizati
5. Establishing, or negotiating individual employee objectives.
6. Establishing performance standards for each objective.
7. Action planning for each employee.
8. Periodic measurement and assessment of status of each
9. Coaching/training to remediate deficits.
1O. Some form of evaluation or assessment done formally and
included in an employee's record.
Levinson- A person doing excellent job by objective standards
of measurement may fail miserably as a partner, superior,
subordinate or colleague.
Quality of performance frequently losses out to quantification
Schaffer-process was over systematized
CRITICISMS OF MBO
To focus on critical behavior rather than trait
assessment(merit rating) and output(MBO).
To keep record of incidents and use them as evidence of
actual behavior during review meetings.
More of real information
CRITICAL INCIDENT TECHNIQUE
They include no. of performance dimension and managers
rate each dimension on a scale.
But it focuses on specific work behaviors.
BEHAVIORALLY ANCHORED RATING SCALES
Appraisals can help to improve employees’ job performance
by identifying strengths and weaknesses and determining how
their strength may be best utilised within the org. and
PERFORMANCE APPRAISAL(1970S VERSION)
Emphasis on both development and evaluation
Use of profile defining the individual’s strengths and
Integration of the results achieved with the means by which
they have achieved
ENTER PM: EARLY DAYS
How work is
How it will be
What work is
PM IS COMMUNICATION:
Performance management is not a system or technique, it is
the totality of the day to day activities of all managers.
FOWLER’S DEFINITION OF PM