The document provides an overview of performance management. It defines performance management as managing the performance of an organization or individual. It also discusses broader aspects of performance management beyond just measurement, including managing people, leadership, decision making, motivation, and innovation. The scope of performance management is outlined, including strategy formulation, implementation, communication, evaluation, establishing priorities, benchmarking, and encouraging improvement. Major traits of effective organizations are listed as vision, clear objectives, and trust/open communication. Common minor traits include leadership, skill development, and policies/methodologies. Merit rating and management by objectives (MBO) are introduced as performance management approaches, with MBO noted as having yielded to other approaches. Features

1. Module 1
Performance Management Definition
& Basic concepts

2. • Performance Management as “Managing the
Performance of an organisation or individual”
• What could be the Broader Meaning of the
term performance management.

3. • “It involves understanding and acting on
performance issues at each level of the
organisation, from individuals, teams and
directorates, through to the organisation itself.
• As well as involving performance measurement,
are the various systems and processes,
performance management is about managing
people and ‘the way people within an
organisation operate and work together’.
• Issues such as leadership, decision making,
involving others, motivation, encouraging
innovation, and risk taking are just as important
to bring about improvement”

4. Scope of Performance Management
- Strategy Formulation.
- Manage the strategy implementation process
- Challenge assumptions,
- Check position
-Comply with the non-negotiable parameters
Communicate direction to the rest of the employees,
-Communication with external stakeholders
-Provide feedback,
- Evaluate and reward behaviour
- Establish priorities; and to motivate them to take actions and
make decisions, which are consistent with organisational
goals.
- Benchmark the performance of different organisations, plants,
departments, teams and individuals.
- Inform managerial decision-making processes.
- Encourage improvement and learning.

5. Major Traits
Features of an effective
organization, 1. Vision,
2. Clear Objectives and
3. Trust, Openess, and
Comunication.
Three common minor traits
are:
1. Leadership
2. Skill and Personnel
Develpment
3. Methodologies and
Policies

6. 1. Overall Organization 2. Board
• Has a clear mission statement that is • Board numbers a minimum of five
known to its board, staff and clients and voting members
which informs all its programming
• Has a written policy of inclusiveness • Board includes representatives of the
concerning board, staff and clients communities served by the
• Has written policies for board, staff and organization
clients prohibiting discrimination and • Board members are free from
harassment conflicts of interest regarding
• Has all necessary Policies and Procedures organization's staff and operations
manuals that are relevant to current • Board exerts active oversight of the
programming financial affairs of the organization
• Has a current Strategic Plan and is
pursuing it • Board has as one of its main charges
• Actively engages with the broader to fundraise for the organization
community through coalitions, advocacy • Client representatives sit on the
efforts, etc. agency's board
• Has written succession policies concerning
the executive director, members of the
board and key program staff

7. 3. Staff 4. Programs
• Staff is reflective of the population served by the agency • Programs clearly fit within the agency's mission statement
• Staff has necessary qualifications and/or characteristics to run programs
• There are written job descriptions that are current and if a new program is
• Agency has investigated similar programs run by other
being launched, the necessary and appropriate staff requirements have agencies and can clearly state the need for its particular
been thought out and are delineated programming and what specific niche(s) it serves
• Staff should have competitive salary and benefits packages • Staff input has been sought when developing programs
• Appropriate and ongoing training is available to all staff • Client input has been sought when developing programs
• Specific program goals have been developed and results are
reviewed regularly
• Systems appropriate to the nature of the organization are in
place to safeguard client confidentiality
• Feedback is sought on a regular basis from staff, clients and
community on whether or not current programs are serving
their stated purposes
• When appropriate, clients are connected to additional
appropriate services
• Data collection systems are in place to appropriately:
Track client demographics
Track client development/improvement
Track program goals
• Program has support from the community

8. Finance
• Agency can supply accurate budgets (for both agency and program)
and explain budget detail
• Agency spends at least 65% of its total expenses on program
activities
• Agency spends no more that 35% of related contributions on fund
raising
• Agency has an accounting system adequate to its program needs
• Agency files an annual tax return, or, if required, has an annual
audit on a timely basis
• Agency has a development plan adequate to its program needs
• Agency has diversified its funding base
• Fundraising efforts are in accord with the stated agency mission

9. Performance management process
• Performance Management is a process for
establishing a shared understanding about
what is to be achieved and how it is to be
achieved. It is an approach to managing
people that increases the probability of
achieving success.
• Establish job accountabilities and
performance measures, Understand
behaviours, Create development plans

11. Merit Rating
• A payment system in which the personal qualities of an
employee are rated according to organizational
requirements, and a pay increase or bonus is made
against the results of this rating. Merit rating has been
in use since the 1950s, and examines an employee's
input to the organization (for example, their
attendance, adaptability, or aptitude) as well as the
quality or quantity of work produced. In merit rating
programs, these factors may be weighted to reflect
their relative importance and the resultant points
score determines whether the employee earns a bonus
or pay increase.
• Merit Rating has yielded place for ------------.

12. MBO
• The concept of ‘Management by Objectives’
(MBO) was first given by Peter Drucker in
1954. It can be defined as a process whereby
the employees and the superiors come
together to identify common goals, the
employees set their goals to be achieved, the
standards to be taken as the criteria for
measurement of their performance and
contribution and deciding the course of action
to be followed.

14. Features & Advantages of MBO
• Clarity of goals – With MBO, came the concept of SMART goals i.e. goals that are:
Specific
Measurable
Achievable
Realistic, and
Time bound.
The focus is on future rather than on past. Goals and standards are set for the
performance for the future with periodic reviews and feedback.
• Motivation – Involving employees in the whole process of goal setting and
increasing employee empowerment increases employee job satisfaction and
commitment.
• Better communication and Coordination – Frequent reviews and interactions
between superiors and subordinates helps to maintain harmonious relationships
within the enterprise and also solve many problems faced during the period.

15. Module 2