• As a systematic outlining of the activities
that the manager is expected to undertake
during a specified period
• so that he is able to make his best
contribution to developmental and
• It is the foundation of effective
performance management; it is effective
when managers and employees jointly set
• It starts with understanding objectives and
strategy and ends with setting of
• It exemplifies the commitment of
employees and their managers towards
org mission and objectives.
• It is a fundamental managerial function
and an integral part of PMS
• It is a tool to help individuals contribute
their best to an organisation in terms of
ability, efforts and results.
• it specifies the action required to
accomplish each goal and expectation.
• It identifies resources required for the
success of the individual and work unit.
• It decides how success will be assessed
• It provides a valid basis for distinguishing
levels of performance.
• It signifies a commitment to
acknowledging and rewarding
• It establishes ongoing communication
which helps in mutual understanding,
alignment and expectations for
• It integrates internal and external facilitating
and inhibiting factors with individual efforts for
• It helps employees in terms of role clarity and
performance expectations for enhanced
• It facilitates organisational success through
strategies of employee efforts, managerial
insight and utilisation of resources optimally.
• It focuses on areas of priority and concern of
the organisation for better emphasis of time,
resource and individual efforts.
COMPONENTS OF PERFORMANCE PLANNING
•Clarify roles to meet the strategic plan;
• Clarify divisional and departmental
• Continually realign individual objectives
with the organisation’s initiatives;
• Obtain agreement on what results and
development are expected; and
• Develop objectives/expectations that
KPA (Key Performance Area)
• It involves the identification of targets
pertaining to certain tasks and activities
which are challenging, and stretch the
capabilities of the employee.
• Identification of key tasks and activities by
both the employee and the manager
• Analyzing and determining priority areas
• Setting targets or goals in the
• Documenting and seeking commitment of
• Committing required resources
Organizational and individual barriers
• Understanding the constituents of
performance by breaking it into various
elements and understanding the factors that
cause performance is called performance
• Performance Equation
• Individual Performance = Ability X
Motivation X Organizational support + or –
• Identification of the factors that have helped the
appraisee reach the level of performance he
achieved in relation to various KPAs, targets and
various other functions associated with his job.
These may be called ‘facilitating factors’.
• Identification of the factors that have prevented the
appraisee from doing better or those that have
prevented the appraisee from doing better or
those that hindered his performance. These may
be called “hindering factors”.
• Identification of factors which would
suggest action plans for the appraisee as
well as for the appraiser.
• Identifying the developmental needs for
better performance on critical functions
associated with the present role.
• Gaining a better understanding about the
appraisee, his role requirements and the
situation in which he is working and also
share with him the expectations and
understanding of the appraiser so that the
communication between them is
• Check the progress periodically.
• Note the success reasons
• Note the failure reasons
• Rate in rating scale
• List down the facilitating and hindering factors