A comprehensive presentation deck about Performance Management in Human Resource Management (HRM) CITATION: Betia et al. (2023) Performance Management - HRM. Slideshare.

1. PERFORMANCE
MANAGEMENT

2. Definition and Purpose of
Performance Management
Performance Management Model
Performance Management Process
KRAs and KPIs
Performance Appraisal Rating
How to source information for
Performance Management
PART I
Luigi

3. DEFINITION OF PERFORMANCE
MANAGEMENT
A tool that helps managers monitor and evaluate employees’ work.
A continuous process of communication and clarifying job responsibilities between the
manager and employee.
Helps managers and employees talk face-to-face about expectations, goals, and career
progress, especially on how one’s work aligns with the company’s overall vision.
Periodic, systematic, and objective process of developing an employee to perform their job
to the best of their ability.
(Tardi, 2023)

4. -
COMMON STEPS IN
PERFORMANCE MANAGEMENT
Aligning employees’ activity with the company’s mission and goals
Developing specific job-performance outcomes
Creating measurable performance-based expectations
Defining job-development plans
Meeting regularly
(Tardi, 2023)

5. -
PURPOSE OF PERFORMANCE
MANAGEMENT
Strategic Purpose
aligns employees with overall organizational strategy to maximize potential
Developmental Purpose
develop employees who are efficient at their work and improve performance of
employees who are not performing well
Administrative Purpose
the use of rewards system based on the information provided by the performance
management (performance recognition)
(MBA Knowledge Base, nd.)

6. Serves as a guide for management
and employees to better achieve
organizational goals via a structured
process.
MODEL
(Andreev, 2023)

7. PLANNING
Groundwork for success is laid down
Collaborative process
Outlined
Where management team meet and discuss organization’s goals
and objectives for the year.
Goals should be clearly outlined using S.M.A.R.T.
Specific: goals are outlined and clear steps on how to
achieve goals are set
Measurable: Definite and measurable indicator to tell if goals
can be achieved
Achievable: Goals should be realistically achievable
Relevant: Goals should be in lined with employees’ work and
overall goals of the organization
Time-bound: Definite timeline of when the goal should be
completed.

8. MONITORING
Monitors the performance/status of the set goal
Should be done monthly/quarterly to keep track on the
progress of the team
Helps maintain the motivation of the employees in doing
their work
Serves as a guidance for the employees

9. REVIEWING
Done at the end of the year if goals set in the previous year were
met
Builds collaboration with the employees - more involved they are,
the more motivated they will be to work better
Chance for the management to evaluate the process and final
results of their goals.
Employees can present their perspectives about the project and
receive feedback from superiors regarding their performance

10. REWARDING
Final step in the process
A way to motivate the employees to work harder
Important step - recognizes the hard-work of the employees
Examples of rewards that are offered:
Increase in compensation
One-time bonus
Increased vacation time
Special projects
Promotion
Positive review
Company-wide acknowledgment

11. PROCESS OF PERFORMANCE
MANAGEMENT
(Build an Effective Performance Management Process in 5 Steps, 2021) (Noe et. al., 2016)

12. PROCESS OF PERFORMANCE
MANAGEMENT
Performance Plan
Creation of detailed plan on how to achieve goals/objectives. Employees are to be involved in this
process.
Performance Management Goals
Members of the team should work together to come up with S.M.A.R.T. goals.
Build a Performance Review System
System will help in evaluating the work of the employees. Feedback from manager to employee.
Develop Strong Feedback Giving Skills
Process of balancing pushing employees to perfection and keeping them motivated (feedack).
Ongoing Employee Performance Management
Keeping up with progress of employees, giving instant feedback, formal meetings, and corrective
measures on mistakes done.

13. Set of goals and objectives that
organizations assign to their
employees to accomplish a job.
Helps employees direct their efforts
toward achieving goals.
Requires excellent performance
from employees.
KRA
KRA VS KPI
Measures the employees’ efforts
and suggest improvements.
Essential in evaluating employees’
performance on their
duties/accomplishment of KRAs.
Helps management understand
employees’ contribution to the
organization.
KPI
(Bojamma, 2023)

14. PERFORMANCE APPRAISAL
RATING
Manages the employee performance process in an
organization to evaluate the job performance of a team.
Captures qualitative and quantitative feedback and turning
them into actionable insights.
insights can improve quality of the team and output.
(5 Essential Feautres of an Effective Performance Appraisal System, 2023)

15. TYPES OF PERFORMANCE
APPRAISAL RATINGS
Self-evaluation
Employees conduct their performance assessment on their own against a list of criteria.
Behavioral checklist
Yes or No checklist against a series of traits. Supervisors are to tick if the employees meet those traits.
360-Degree feedback
Review includes both direct feedback from the manager and employee, and from other team members.
Review also includes character and leadership capabilities.
Rating scale
Uses a set of pre-determined criteria to evaluate an employee. A score can be calculated at the end.
Management by objectives
Agreement between employee and manager wherein the employee agrees to a set of attainable
performance goals to be achieved.
(Andreev, 2023)

16. most used source
have extensive knowledge on job
requirements to observe an
employee
Supervisors/Managers
SOURCE OF INFORMATION
(GreggU, 2022)

17. can be a good source of
information when it comes to
performance in a job
have observation on the
employee
Peers/Coworkers
SOURCE OF INFORMATION
(GreggU, 2022)

18. best source of information in
evaluating managers.
have best chance to see how well
a manager treats employees
Subordinates
SOURCE OF INFORMATION
(GreggU, 2022)

19. can contribute valuable
information
rarely used alone
employees evaluate their own
performance
Self-Rating
SOURCE OF INFORMATION
(GreggU, 2022)

20. customers are often best source
of performance information via
feedback forms/evaluation forms
Customers
SOURCE OF INFORMATION
(GreggU, 2022)

21. organizations combine
information from numerous
sources.
360-Degree
SOURCE OF INFORMATION
(GreggU, 2022)

22. Approaches to Measuring
Performance and Criteria for Rating
Comparative
Attribute
Behavioral
Result
PART II
Ale

23. involves comparing an employee's
performance against other members
of the group in order to rate them.
The best and worst performer set the
standards for the group.
COMPARATIVE

24. Involves comparing an employee's
performance against other members of the
group in order to rate them. The best and
worst performer set the standards for the
group.
The are three techniques that fall under
this approach being Force Distribution,
Paired Comparison, and Ranking.
COMPARATIVE

25. The format where employees are
ranked into groups
It is best utilized when rating the
performance of a large sample of
employees.
FORCE DISTRIBUTION
Comparative Approach

26. Increase productivity
Identify key employees and
encourage competition
Employees are divided into
groups
HR and Managers can target
low performers
Advantages
FORCE DISTRIBUTION
Advantages and Disadvantages
Does not depend on results
achieved but the visibility of
the employee
Teamwork can be negatively
impacted by ranking
Encourages unhealthy
competition
Disadvantages

27. The comparison of every employee to
other employees in a set for a
specified category of skill,
When the employee exhibits better
performance, a point is given
PAIRED COMPARISON
Comparative Approach

28. Easy to calculate
Helpful when there is no
objective data to depend upon
Advantages
PAIRED COMPARISON
Advantages and Disadvantages
Comparison is objective and is
not job specific
Time consuming
Does not evaluate individuality
of the employee
Disadvantages

29. Employees are ranked from the top
performer to the worst in their
respective departments
Requires employees to be ranked on
overall performance
RANKING
Comparative Approach

30. Ranking employees from best to worst
on a particular trait, choosing highest
and lowest.
It is easier to distinguish between the
worst and best employees
ALTERNATION
RANKING METHOD

31. Identifies the top Performer
Able to identify the worst
performer in the team
Advantages
RANKING
Advantages and Disadvantages
Favors competition as members
are ranked
High stress for employees on
the lower ranks
Not applicable for larger
companies
Disadvantages

32. Employees are rated on a basis of
specific set of parameters:
Problem solving skills
Teamwork / Communication
Judgement / Creativity
Innovation
ATTRIBUTE

33. List skills, competencies and results
which is then evaluated by a number
in a point rating scale where the
manager rates the employee one at a
time
Forms are prepared for each
employee
GRAPHIC RATING SCALE
Attribute Approach

34. Straightforward and easy to
understand
Quantifies behavioral traits
Advantages
GRAPHIC RATING SCALE
Advantages and Disadvantages
Each scorer have a different
perception on the employee
being scored
Exceptional strengths can
overshadow glaring weakness
Disadvantages

35. One of the oldest performance
measurement techniques
Defines the behavior of an employee
must exhibit to be effective at the job
Can be done using B.A.R.S or B.O.S
techniques
BEHAVIORAL

36. A measuring system which rates the employees according to their
performance and specific behavioral patterns
Offers both quantitative and qualitative data
Scale that use behavior “statements” as reference points
Measures an employee's performance against specific sample of
behaviours that are given number rating for the purpose of
collecting data
BARS (BEHAVIORALLY
ANCHORED RATING SYSTEM)

37. Easy to use and it is clear
It is based on Behavior - The employee appraisals goal is to
improve performance. Having a better understanding of behaviors
allows the company a perspective to what works and what does
not work
It’s Impartial - Heavily focus on behavior. The evaluation process
has more fairness to it
Completely individualize - Unique performance management
experience for every position within an organization.
BARS (BEHAVIORALLY ANCHORED RATING SYSTEM)
Benefits of using

38. Time Consuming - Designing a unique evaluation for each job roles
would need the organization to invest an enormous amount of time
Management demanding - Managers would have to be highly
involved in procuring the statements and anchors for the unique
appraisals
BARS (BEHAVIORALLY ANCHORED RATING SYSTEM)
Downsides of using

39. Measures behaviors that you want the employee to achieve
Rates the employees on a scale
Varies from BARS but almost similar.
On BARS it specifies behaviors for each level of performance. It
can be more accurate but more tailored for the job
B.O.S (BEHAVIORAL OBSERVATION SCALE

40. Suitable for assessing the performance of employees whose jobs
cannot be evaluated based on productivity alone
Time efficient compared to BARS it takes less time to develop
Possible to compare different employees
B.O.S APPROACH
Benefits of using

41. Difficult to keep track of employee behavior within larger teams
It might lack details compared to BARS
Subjective which can result in unfair result
B.O.S APPROACH
Disadvantages of using

42. Before they leave the store
Within 2 minutes entering the
store
Immediately upon entering the
store
Immediately and with a smile
Immediately with a smile and
sincerely offering help
Bars
1.
2.
3.
4.
5.
BARS AND BOS
Side by side comparison of
Almost
Seldom
Sometimes
Often
Almost Always
Bos
1.
2.
3.
4.
5.

43. Emphasizes the outcomes produced by
the employees
Not concerned about employee
behavior and processes
Measuring results usually takes lesser
time than measuring behavior needed
to achieve results
Can be measured by Balance Score
Card or Management By Objectives
RESULT

44. System that provides feedback on both internal processes and
external outcomes to improve strategic performance and results.
Tool that views organization from different perspectives
Financial - Perspective of shareholders
Customer - What customers perceive and experience
Business Process - Key processes to meet and exceed
customer and shareholder requirements
Learning and Growth - Continuous improvement
BALANCE SCORE CARD

45. Brings structure to business
strategy
Middle ground for each
department to talk about
strategy and progress within the
organization
Ensure organizational alignment
Drive focus on key requirements
Advantages
BALANCE SCORE CARD
Advantages and Disadvantages
Customize to every
organization
Requires a lot of data
Disadvantages

46. Aligns team members goals with company objectives
Process where the goals of the organization are defined and
conveyed by the management to members of the organization with
the intention to achieve each objective
MANAGEMENT BY OBJECTIVES

47. Help employees appreciate their
on the job roles
Better teamwork and
communication
Provides employees with clear
understanding of what is
expected from them
Advantages
MANAGEMENT BY OBJECTIVES
Advantages and Disadvantages
More emphasis given to goals
and targets
Sometimes over emphasizing
the target goal compared to
operational issues
Disadvantages

48. Provides metrics and feedback
on how the goals are being
achieved, how business is
performing and how business
can improve
Strategic quadrants that helps
focus on what was achieve and
what needs to be achieve
Balanced score card
1.
2.
BALANCED SCORE CARD AND MANAGEMENT BY OBJECTIVES
Side by side comparison of
Creates goals and objectives at
the highest level of hierarchy
then passing these goals
downstream
Provides the direction needed
around the goals objectives
around the organization
Management by objectives
1.
2.

49. Performance Appraisal
Rater/Judgement Errors
Performance Feedback
Diagnosing Poor Performance
Managing Employee Perf
Conclusion (Things to Consider)
PART III
Anton

50. Refers to the regular review of an
employee's job performance and overall
contribution to a company. Also known as
an annual review, performance review or
evaluation, or employee appraisal. A
performance appraisal evaluates an
employee’s skills, achievements, and
growth, or lack thereof (Hayes, 2021)
PERFORMANCE APPRAISAL

51. Companies use performance appraisals to
give employees big-picture feedback on
their work and to justify pay increases and
bonuses, as well as termination decisions.
They can be conducted at any given time
but tend to be annual, semi-annual, or
quarterly. (Hayes, 2021)
PERFORMANCE APPRAISAL

52. (Florendo et al., 2022)
PERFORMANCE APPRAISAL VS.
PERFORMANCE MANAGEMENT

53. Inappropriate Methods and Forms
Ineffective Implementation of
Performance Appraisal
Lack of Rater Training/Preparedness
Difference Among Raters
Rater/Judgement Errors
(Florendo et al. 2022)
COMMON ISSUES WHEN DOING
PERFORMANCE MANAGEMENT

54. Forms or scorecards used can be vague
Metrics might not measure what really matters
in a job
Perspective issues
Lack of sincerity
Lack of follow-throughs following the appraisal
Inappropriate Methods and Forms
Ineffective Implementation of Performance
Appraisal
COMMON ISSUES WHEN DOING
PERFORMANCE MANAGEMENT

55. Rater / judge might not be trained on how to
conduct appraisals or use the metric instrument
Rater will evaluate an employee he/she doesn’t
even know in the first place.
Kinda like your professors in college, some raters
can be “harsh” while others “soft” or “easy”
Personal bias and prejudice
Lack of Rater Training/Preparedness
Difference Among Raters
Rater / Judge Errors
COMMON ISSUES WHEN DOING
PERFORMANCE MANAGEMENT

56. Rater/Judgment
Errors are errors in
that occur in a
systematic manner
when an individual
observes and
evaluates another
(Willamette
University, n.d.)
RATER / JUDGE ERRORS
”the majority of human decisions are
based on prejudice, beliefs, and intuition.
Not based on facts or logic” - Daniel
Kahneman (Nobel Prize Winner)
Once we understand how these
errors happen, we can prevent
them.
Why does it matter?

57. EXAMPLE ERRORS (Florendo et al., 2022)

58. It is a manger’s responsibility to provide
specific feedback to employees and
elicit positive responses (Hayes, 2021)
Feedback should be given frequently,
not just once a year
More frequent feedback = better
performance
PERFORMANCE FEEDBACK

59. Ask employees to rate their
performance before the session.
Encourage the subordinate to
participate in the session.
“Tell and listen” and “problem solver”
approach
Recognize and acknowledge great
performance
TIPS ON DELIVERING PERFORMANCE FEEDBACK

60. Focus feedback on behaviour or results,
not on the person.
Minimize criticism
Agree to specific goals and set a date
to review progress
Always allow the employee to be part of
the feedback process
BE KIND
TIPS ON DELIVERING PERFORMANCE FEEDBACK

61. We must make an accurate diagnosis of the
cause of a poor performance to help us
choose an appropriate action and solve the
problem effectively.
Marginal employees are those employees
who are performing at a bare minimum
level because of a lack of ability and/or
motivation to perform well (Florendo et al.
2022)
DIAGNOSING POOR PERFORMANCE

62. Does the employee recognize what he or she is
supposed to do?
Are the job flow and procedure logical?
Does the employee have the resources needed
for successful performance?
Are other job demands interfering with good
performance in this area?
INPUT
(Florendo et al. 2022)
CONSIDER THIS!

63. Does the employee have the necessary skills
and knowledge needed?
Does the employee know why the desired
performance level is important?
Is the employee mentally, physically, and
emotionally able to perform at the expected
level?
EMPLOYEE CHARACTERISTICS
(Florendo et al. 2022)
CONSIDER THIS!

64. Has the employee been given information about his or her performance?
Is performance feedback relevant, timely, accurate, specific and
understandable?
Do performance standards exist?
Does the employee know the desired level of expected performance?
Does the employee believe he or she can reach the performance standard?
FEEDBACK
PERFORMANCE STANDARD/GOALS
(Florendo et al. 2022)
CONSIDER THIS!

65. Are consequences (rewards, incentives) aligned with good performance?
Are the consequences of performance valuable to the employee?
Are performance consequences given in timely manner?
Do work group or team norms encourage the employee not to meet
performance standards?
CONSEQUENCES
(Florendo et al. 2022)
CONSIDER THIS!

66. A super helpful framework
on how to manage your
employees (Gardner, 2021)
Allows you to quickly
determine whether to
Delegate tasks to, Guide, or
Direct and employee
THE SKILL - WILL MATRIX

67. The system should be developed by conducting a valid job analysis that
ascertains the important aspects of job performance.
The system should be based on either behaviours or results; evaluations
of ambiguous traits should be avoided.
Raters should be trained in how to use the system rather than simply given
the materials and left to interpret how to conduct the appraisal.
(Florendo et al. 2022)
CONCLUSIONS AND THINGS TO CONSIDER ABOUT
PERFORMANCE MANAGEMENT SYSTEMS

68. There should be some form of review by upper-level managers of all the
performance ratings, and there should be a system for employees to
appeal what they consider to be an unfair evaluation.
The organization should provide some form of performance counselling or
corrective guidance to help poor performers improve their performance
before being dismissed
(Florendo et al. 2022)
CONCLUSIONS AND THINGS TO CONSIDER ABOUT
PERFORMANCE MANAGEMENT SYSTEMS

69. Multiple raters should be used, particularly if an employee’s
performance is unlikely to be seen by only one rating source such as
manager or customer.
Performance evaluations need to be documented.
(Florendo et al. 2022)
CONCLUSIONS AND THINGS TO CONSIDER ABOUT
PERFORMANCE MANAGEMENT SYSTEMS

70. THANK YOU FOR
LISTENING!