JNTUH Performance Management Systems unit I, basics of performance management,

1. Performance Management Systems
UNIT - I: Performance Management
Scope and Significance
- Advantages of Performance Management
- Organizational Structure - Impact of Organizational structure
- Operational Problems Performance management process
- Performance Planning
- Performance Appraisal
- Performance Mentoring
- Performance Management Strategic Planning.

2. Basic terminology
 PERFORMANCE:
The performance of an individual can be defined based on their
achievement compared with their standard or expected
outcome/ result.
 COMPETENCY:
It refers to the combination of knowledge, skills and attitude that
is required for an individual to perform their role more effectively.
 POTENTIAL:
The capacity (a group of competencies reflect capacity) of an
individual to handle higher responsibilities based on their
abilities and competency levels.

3. HRM Cycle
 Job analysis
 HRP – Human Resource Planning
 Recruitment
 Selection
 Induction
 Training
 Compensation
 Performance Appraisal
 Reward management

4. PERFORMANCE MANAGEMENT
SYSTEM:
 It is a process which represents performance
planning, performance monitoring and coaching,
measuring the individual performance with respect
to the organizational goals, providing feedback,
appreciating the employee achievements and
planning for their development.

5. Performance management cycle
Performance
planning
Performance
mentoring &
Coaching
Performance
feedback
performance
linked rewards
& Development

6. OBJECTIVES OF PERFORMANCE
MANAGEMENT:
Evaluation objectives:
 To identify the readiness of an employee to handle higher
responsibilities.
 To provide feedback to the employees on their performance.
 To create information that might be useful to take various
decisions like salary, bonus, promotion etc.
Development objectives:
 To provide counseling to the employees so that they can enhance
their performance and develop competencies.
 Motivate employees by recognizing their performance.
 Analyze the individual and organization performance so that
action will be taken in problem areas.
 Identify the need for training.

7. Characteristics of Performance
Management:
 Continuous process:
 Flexible:
 Futuristic:
 Participatory:
 Controlling:
 Behavioral in Content:
 Win-Win Philosophy:

8. SCOPE OF PERFORMANCE
MANGEMENT:
 It provides shared experiences, knowledge and vision to
managers and managees.
 Increases corporate, team and individual effectiveness by
encompasses all formal and informal measures and procedures
adopted by organizations.
 Enables to develop knowledge, skills and capabilities of
Managees/ employees in a continuous manner.
 It is designed by considering the entire organization as whole
instead of different parts alone. Thus, it integrates (vertical &
horizontal) all the processes of an organization.
 Performance management assumes that the managers and team
members share accountability for performance by jointly
agreeing on common set of goals i.e., what they need to do and
how they need to do it. They jointly implement the agreed plans
and monitor outcomes.

9. Contd..
 It considers all the elements that are associated
with an employee in an organization. i.e., their work,
behavior in which they perform, result they
achieve.
 Data generated by appraisal process can be used to
decide rewards to the employees, which is an
integral part of performance management process.

10. Dimensions of effective performance
Management
 People Management Capability
 Motivation
 Measurement and rewards
 Role of HR professionals
 Learning organization
 Culture and clarity of purpose

11. BENEFITS OF PERFORMANCE
MANAGEMENT:
 For the Organisation:
 Align corporate, individual and team objectives.
 Improve performance.
 Motivate employees.
 Increase commitment.
 Underpin core values.
 Improve training and development process.
 Help to develop a learning organisation

12. …contd
 For Managers :
 Provide the basis for clarifying performance and
behaviour expectations.
 Afford a framework for reviewing performance and
competence levels.
 Improve team and individual performance.
 Support leadership, motivating and teambuilding
processes.
 Provide the basis for helping underperformers.
 May be used to develop or coach individuals.

13. …contd
 For Individuals:
 Greater clarity of roles and objectives.
 Encouragement and support to perform well.
 The provision of guidance and help in developing
abilities and performance.
 Opportunities to spend ‘quality time’ with their
managers.
 Opportunities to contribute to the formulation of
objectives and plans and to improvements in the way
work is managed and carried out.
 An objective and fair basis for assessing performance.

14. PERFORMANCE MANAGEMENT
PROCESS
 Prerequisites
 Performance planning
 Performance execution
 Performance Assessment
 Performance Review
 Performance Renewal and Reconstructing

15. Prerequisites
i. Knowledge of the organization's mission and
strategic goals – strategic planning
ii. Knowledge of job- Job analysis
Knowledge - information needed to perform work,
skills - required attributes that are usually acquired
by having done in the past
ability refers to physical, emotional, intellectual, and
psychological aptitude to perform the work.

16. Explanation:


17. Performance planning
 Provides clear knowledge of PMS to employees.
Results – outcomes to be achieved
represents - key accountabilities
Performance standards – yardstick
Both acceptable and unacceptable behaviors
Behaviors – How the result achieved – competencies
communication skills, product knowledge, handling
different issues, creative thinking, dependability etc
Development plan- areas of improvement
setting developmental goals

18. Performance execution
Role of employee in performance execution
employee participation does not starts
actively participate in preparing job description and
in the process of evaluation.
i. Commitment to goal achievement
ii. Ongoing performance feedback and coaching
iii. Communication with supervisor
iv. Collecting and sharing performance data
v. Preparing for performance review

19. contd
Role of supervisor in performance execution:
 Observation and documentation
 Updates
 Feedback
 Resources
 Reinforcement

20. Performance Assessment
 Both employee and manager responsible
 Direct supervisor assessment more impact
 Both supervisor and employee fill
 Self appraisal help to identify areas of problems
Also help in review discusion

21. Performance Review(appraisal
meeting)
 Formal way of providing feedback
 discuss about the development plans, trainings to
improve skills and knowledge, next year goals and
targets and expectations of employee and manager
both

22. Performance Renewal and
Reconstructing
 Once the performance has been reviewed and end,
then the cycle starts for the next performance
appraisal.
 Should align with next year strategic planning of an
organization.