Improving effeectiveness of a Performance management System


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A Performance Management System’s Effectiveness Lies In Increasing Performance and Fostering Employee Development And Motivation

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Improving effeectiveness of a Performance management System

  1. 1. A Performance Management System’s Effectiveness Lies In Increasing Performance and Fostering Employee Development And Motivation AMIT BHOI - HR
  2. 2. Agenda <ul><li>1. Introduction to Performance Management </li></ul><ul><li>2. Effectiveness Of Performance Management System enhances by </li></ul><ul><ul><li>Increasing Performance </li></ul></ul><ul><ul><li>Employee Development </li></ul></ul><ul><ul><li>Motivation </li></ul></ul><ul><li>3. Increasing Performance occurs at 3 levels </li></ul><ul><ul><li>At Organizational level </li></ul></ul><ul><ul><li>At Team level </li></ul></ul><ul><ul><li>At Individual level </li></ul></ul><ul><li>4. Employee Development </li></ul><ul><li>Motivational Techniques </li></ul><ul><li>6. A model performance management system </li></ul><ul><li>7. Case Study- Real Madrid’s 'Galacticos' Strategy: Losing Steam? </li></ul><ul><li>8. Conclusion </li></ul>
  3. 3. Performance Management… What gets measured gets done and … What gets measured becomes important!
  4. 4. Meaning Of Performance Management <ul><li>Performance Management- A systematic process for improving organizational performance by developing the performance of individuals & teams. </li></ul><ul><li>Performance Management System – A roadmap for creating a High Performance organization through the integration of organization's vision, values, systems and people” </li></ul>
  5. 5. Performance Management – the linking pin ! <ul><li>Starting with the ultimate goal and mission of the organisation. </li></ul><ul><li>Aligning the business units, teams and individuals </li></ul>Vision Strategy Processes Systems Results Behavior and Actions Performance Management
  6. 6. Effectiveness Of Performance Management System May the most agile win …
  7. 7. Performance Management Involves Increasing Performance At PERFORMANCE MANAGEMENT (Increasing Performance) A) At Organizational level B) At Team Level C) At Individual level
  8. 8. <ul><li>Increasing </li></ul><ul><li>Performance… </li></ul>
  9. 9. A) Improving Performance At Organizational Level <ul><li>Problems At Managerial Level </li></ul><ul><li>Evasion Through Rationalization </li></ul><ul><li>Reliance On Procedures </li></ul><ul><li>Attacks That Skirt The Target </li></ul>
  10. 10. Dealing with The Problem-Overall Strategy <ul><li>Select The Goal </li></ul><ul><li>Specify Minimum Expectation Of Results </li></ul><ul><li>Communicate Expectations Clearly </li></ul><ul><li>Allocate Responsibility </li></ul><ul><li>Expand & Extend The Process </li></ul>
  11. 11. Contd… <ul><li>To improve organizational performance , management needs to focus on high performance culture. </li></ul><ul><li>Momentum for a high performance culture is to come from top management </li></ul><ul><li>Top management must communicate organization's mission, objectives & core values </li></ul>
  12. 12. An Ideal PMS after improved performance at organizational level <ul><li>Mission Statements </li></ul><ul><li>Value Statement </li></ul><ul><li>Critical Success Factors </li></ul><ul><li>Strategies </li></ul><ul><li>Objectives </li></ul><ul><li>Organizational Performance Measures </li></ul><ul><li>Balanced Scorecard </li></ul><ul><li>Plan, action, measurement & review </li></ul>
  13. 13. B) Improving Team Performance <ul><li>1. Setting Objectives </li></ul><ul><li>Either with achievement of work targets or the way in which team operates </li></ul><ul><li>2. Work Plans </li></ul><ul><li>Specific plans for achieving targets. What must be done & how it is to be done if mission & objectives are to be attained </li></ul><ul><li>3. Team Performance Reviews </li></ul><ul><li>Analyze & assess feedback on the achievements against stated objectives & work plans </li></ul>
  14. 14. C) Improving Individual Performance <ul><li>According to Purcell, </li></ul><ul><li>Performance= </li></ul><ul><li>f(Ability +Motivation+ Opportunity) </li></ul><ul><li>So to improve performance, attention has to be paid to </li></ul><ul><li>Increasing Ability by recruitment, selection,learning & development </li></ul><ul><li>Increasing Motivation by </li></ul><ul><li>provision of intrinsic & extrinsic rewards </li></ul><ul><li>Increasing Opportunity by </li></ul><ul><li>providing people with opportunity to use practice & develop their skills </li></ul>
  15. 15. Contd… <ul><li>According to Purcell again, opportunity to engage in Discretionary Behavior is crucial if employees are to perform well </li></ul><ul><li>When employees exercise choice on range of tasks to be done & how they do their work covering aspects like effort,speed,attention to quality & style of job delivery </li></ul><ul><li>People exercising discretionary behavior tend to make their job larger by taking more responsibility & doing extra things </li></ul>
  16. 16. <ul><li>Improving individual performance mostly happens at Organizational Level like </li></ul><ul><li>- Developing performance culture </li></ul><ul><li>- Providing leadership </li></ul><ul><li>- Creating right working environment </li></ul><ul><li>Improvement in performance is also possible through </li></ul><ul><li>- Coaching </li></ul><ul><li>- Mentoring </li></ul><ul><li>- Self managed learning </li></ul>
  17. 17. <ul><li>In a nutshell , the approach to improved individual performance covers seven steps </li></ul><ul><li>1. Select the goal </li></ul><ul><li>2. Define expectations </li></ul><ul><li>3. Define performance measures </li></ul><ul><li>4. Plan </li></ul><ul><li>5. Act </li></ul><ul><li>6. Monitor </li></ul><ul><li>7. Extend the process </li></ul>
  18. 18. <ul><li>Employee </li></ul><ul><li>Development… </li></ul>
  19. 19. Employee Development <ul><li>Employee development aims to promote learning & to provide people with knowledge and transferable skills that will help to improve their performance & further their careers </li></ul><ul><li>Personal development plans - Based on understanding of </li></ul><ul><li>What people do, what they have achieved, what knowledge & skills they have and what knowledge & skills they need </li></ul><ul><li>Coaching </li></ul><ul><li>Adopting a role model ( mentor) </li></ul><ul><li>Observing & Analyzing what others do </li></ul><ul><li>Extending job (job enrichment) </li></ul><ul><li>Project works-Special Assignments </li></ul><ul><li>E-learning </li></ul><ul><li>Guided reading </li></ul>
  20. 20. Action Planning For Employee Development <ul><li>Action plan sets out what needs to be done & how it will be done… </li></ul><ul><li>- Learning Needs </li></ul><ul><li>- Outcomes Expected </li></ul><ul><li>- Learning Activities To Meet The Ends </li></ul><ul><li>- Responsibility For Learning </li></ul><ul><li>- Timing </li></ul>
  21. 21. <ul><li>Employee Motivation… </li></ul>
  22. 22. Improving Employee Motivation <ul><li>Motivation is the reason or reasons for engaging in a particular behavior, especially human behaviour. </li></ul><ul><li>These reasons may include basic needs such as food or a desired object, hobbies, goal, state of being, or ideal. </li></ul><ul><li>Job performance = Ability X Motivation </li></ul><ul><li>To explain motivation various theories have been put forward </li></ul><ul><li>- Maslow’s Hierarchy Of Needs </li></ul><ul><li>- Mcgregor’s Theory Of X & Y </li></ul><ul><li>- Herzberg’s Motivation-Hygiene Theory </li></ul><ul><li>- Expectancy Approach </li></ul>
  23. 23. <ul><li>Contd…. </li></ul><ul><li>8 basic principles that should be looked into to motivate & energize employee- </li></ul><ul><li>1)The Weather </li></ul><ul><li>2)The Breaks </li></ul><ul><li>3)Holidays </li></ul><ul><li>4)Being Heard </li></ul><ul><li>5) Achievable Goals </li></ul><ul><li>6) Being Thanked </li></ul><ul><li>7) Challenge </li></ul><ul><li>8) Security </li></ul>
  24. 24. <ul><li>A Model Performance Management System… </li></ul>
  25. 25. <ul><li>Seven elements necessary for a Model/Ideal PMS are:- </li></ul><ul><li>1.Process - the means by which individual performance is directed, assessed & rewarded. </li></ul><ul><li>2.People Management Capability - the skills, attitude, behaviors and knowledge that line managers need in order to raise the performance standards of those around them </li></ul><ul><li>3.Motivation - the extent to which the organizations approach to PM unlocks discretionary effort amongst its employees </li></ul><ul><li>4.Measurement and Reward - the indicators or dials on the dashboard that are used to assess a) individual performance and b) the organizational effectiveness of the whole PM system, and how these are used allocate rewards </li></ul><ul><li>5. Role of HR - the extent to which HR leaders a) demonstrate subject matter expertise, b) draw upon relevant theory and research evidence and c) influence thought leaders within organizations to focus energy on the aspects of PM that make most difference to performance </li></ul><ul><li>6.Learning Organization - the extent to which organizations are able to objectively reflect and learn from their own PM experience, building on what works and refining where necessary </li></ul><ul><li>7.Role of Culture & Clarity of Purpose - the extent to which an approach to PM resonates and incongruent with the broader culture of the organization in which it is being applied. </li></ul>
  26. 26. <ul><li>Case Study – Real Madrid’s Galacticos Strategy : Losing Steam ? </li></ul>
  27. 27. CASE STUDY- Real Madrid's 'Galacticos' Strategy: Losing Steam? <ul><li>Facts In The Case:- </li></ul><ul><li>1. World’s richest soccer club for 2004-05 season toppling MU </li></ul><ul><li>2. Revenue more from commercial streams rather than on field performances </li></ul><ul><li>3. Florention Perez, President followed ‘Galacticos’ policy </li></ul><ul><li>4. Poor on field performances led Perez to resign </li></ul><ul><li>5. Stars put self interests before team interests, super-ego players </li></ul><ul><li>6. Ferendo Martin Alvarez, new president elect </li></ul><ul><li>7. Immediate steps to toughen things, strict with star players, results followed </li></ul>
  28. 28. <ul><li>Problems Visible in the Case:- </li></ul><ul><li>1. No team spirit in the team </li></ul><ul><li>2. Poor performance as a team </li></ul><ul><li>leading to confusion </li></ul><ul><li>3. Stars put self interests before </li></ul><ul><li>team interests </li></ul><ul><li>4. Excess pampering of famous </li></ul><ul><li>footballers leading to superego </li></ul><ul><li>5. Surplus revenue from </li></ul><ul><li>commercial sources rather than </li></ul><ul><li>on field performance led to </li></ul><ul><li>Complacency </li></ul><ul><li>6. Vicente,coach of team </li></ul><ul><li>sacked inspite of good results </li></ul><ul><li>7. Claude Mekelele, efficient </li></ul><ul><li>centrebackwas sold to MU,weakening </li></ul><ul><li>Midfield considerably </li></ul>
  29. 29. Solutions To Issues :- 1. Fostering Team Spirit in the team 2. Zero tolerance of Indiscipline 3. Clearly spell out Club Objectives for the season & assign responsibility to each players 4. Periodically review performances evaluate them 5. If players are missing targets assigned, counseling is to be done regarding their needs 6. Reward handsomely for fine performances
  30. 30. Conclusion…
  31. 31. Thank You