The document provides an overview of performance management. It begins with definitions of performance management and discusses its strategic and integrated nature. It then covers concerns of performance management such as outputs, outcomes, processes, inputs and planning. The document also provides a brief history of performance management practices over time, from early systems in ancient China and Europe to more modern approaches like management by objectives and critical incident technique. It discusses key elements and criticisms of different performance management approaches.

1. Mita Das (11392)
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PERFORMANCE MANAGEMENT

2.  PM- Definition, concerns and scope
 The management of performance
 A short history of performance management
2
AGENDA:

3. 3
PERFORMANCE
MANAGEMENT-DEFINITION,
CONCERNS AND SCOPE

4.  PM is a strategic and integrated approach to delivering
sustained success to organisations by improving the
performance of the people who work in them and by
developing the capabilities of teams and individual
contributors.
4
DEFINITION:

5.  Vertical integration
 Functional integration
 Human resource integration
 Individual needs with the org.
5
STRATEGIC AND INTEGRATED

6. 6
IT’S ALSO ABOUT HOW IT
IS ACHIEVED

7.  Performance is not achieved unless there are
effective process of development
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PERFORMANCE AND DEVELOPMENT
MANAGEMENT

8. 8
CONCERNS OF
PERFORMANCE
MANAGEMENT

9.  Output: achievement of results.
 Outcome: impact made on performance.
 Process: required to achieve these results(competencies) and
the inputs in terms of capabilities (knowledge, skill and
competence) expected from the teams and individuals
involved.
 Inputs: Competence assessment – danger if lack validity and
reliability.
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CONCERN WITH OUTPUT, OUTCOMES,
PROCESS AND INPUTS

10.  To achieve future success
 Defining expectations expressed as objectives and in business
plan
10
CONCERN WITH PLANNING

11.  Concerns with measurement and review : If you can’t
measure it , you can’t manage it.
 Concerns with continuous development and improvement:
from the successes and challenges in their day to day
activities
 Concern for communication: continuous dialogue between
managers and members of the team takes place for mutual
understanding of what is to be achieved and ensure that it
will be achieved.
11
CONT..

12.  Concern for stakeholders: employees as partners, PM should
respect the needs of individuals and teams as well as those of
organisation.
 Ethical concerns: respect for individual, mutual respect,
procedural fairness, transparency
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13.  Managing the organisation
 Managing within the context of business(internal and external
environment)
 Manage context not performance: Jones
 Manager and their teams are jointly accountable for results
13
SCOPE OF PM..

14. 14
THE MANAGEMENT OF
PERFORMANCE.

15.  Importance of defining objectives and of planning to achieve
them
 Give every employee a business person’s strong sense of
revenue, cost and profit
 Pursue fast paced innovation
 Relationships and communication are more important than
the formal channels
 The pursuit of high performance by developing competence
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FEATURES OF AN EFFECTIVE ORGANISATION

16.  Importance of goals, and measuring and monitoring of
performance in relation to goals
 Importance of context(structure, process and people)
 Importance of competence
 Importance of value chain
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IMPLICATIONS FOR THE MANAGEMENT OF
PERFORMANCE: SEARS MODEL

17. Oxford dictionary: The accomplishment, execution, carrying out,
working out of anything ordered or undertaken.
By Brumbrach: Performance means both behavior and results.
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PERFORMANCE

18. Team
factors
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FACTORS AFFECTING PERFORMANCE

19.  Context of org.
 Culture
 Functionality
 Job design
 Team work
 Organisational development
 Purpose and value statement
 Strategic management
 Human resource management
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WHAT MAKES PERFORMANCE WELL??

20. 20
A SHORT HISTORY OF
PERFORMANCE
MANAGEMENT.

21. (AD221-265)Wei
dynasty in china had
an imperial rater
Ignatius Loyola(1491-
1556) introduced formal
rating of the members
of the society of Jesus
First formal rating
system by Fredrick Taylor
before world war I
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ANTECEDENTS

22. Rating for US armed
forces in 1920, merit
rating in US and UK
in 1950s and 1960s.
MBO(1960s)
Critical incident
technique and
behaviorally anchored
rating scale
Revised form of
performance appraisal
22
CONT..

23.  W D Scott who introduced man to man comparison scale
 This scale was modified an used to rate the efficiency of US
army officers
 Initiated an era of promotion on the basis of merit
 Graphic rating scale
 Forced distribution
 Factorising
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MERIT RATING AND PERFORMANCE
APPRAISAL

24.  McGregor said focus should be on the future rather than the
past in order to establish realistic targets and seek the most
effective ways of reaching them.
 The superior instead of becoming psychologist or therapist
can become a coach.
24
DRAWBACKS

25.  Mainly concerns with the assessment of traits
 Assessment of traits are subjective judgments and prompted
by prejudices
25

26.  By Peter Drucker(1955)
 Integration of individual and corporate goals
26
MANAGEMENT BY OBJECTIVES

27.  1. Development of role & mission statement.
 2. Establishing strategic goals/strategic plan.
 3. Defining key results areas.
 4. Establishing indicators or effectiveness, goals, or organizati
onal objectives.
 5. Establishing, or negotiating individual employee objectives.
 6. Establishing performance standards for each objective.
 7. Action planning for each employee.
 8. Periodic measurement and assessment of status of each
objective/standard.
 9. Coaching/training to remediate deficits.
 1O. Some form of evaluation or assessment done formally and
included in an employee's record.
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28. Tactical
Plans
Unit
objective
s and
improve
ment
plans
Individua
l
manager
’s Key
results
and
Improve
ment
plan
Review
and
control
Strategic
plan
28
MBO CYCLE:

29.  Levinson- A person doing excellent job by objective standards
of measurement may fail miserably as a partner, superior,
subordinate or colleague.
 Quality of performance frequently losses out to quantification
 Schaffer-process was over systematized
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CRITICISMS OF MBO

30.  By Flanagan
 To focus on critical behavior rather than trait
assessment(merit rating) and output(MBO).
 To keep record of incidents and use them as evidence of
actual behavior during review meetings.
 ‘Black book’
 More of real information
 Differentiating competencies
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CRITICAL INCIDENT TECHNIQUE

31.  They include no. of performance dimension and managers
rate each dimension on a scale.
 But it focuses on specific work behaviors.
31
BEHAVIORALLY ANCHORED RATING SCALES

32.  Appraisals can help to improve employees’ job performance
by identifying strengths and weaknesses and determining how
their strength may be best utilised within the org. and
weaknesses overcome
32
PERFORMANCE APPRAISAL(1970S VERSION)

33.  Emphasis on both development and evaluation
 Use of profile defining the individual’s strengths and
development needs
 Integration of the results achieved with the means by which
they have achieved
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ENTER PM: EARLY DAYS

34. Whether
performance
has achieved
the agreed
upon plan
How work is
progressing
towards
desired
results
How it will be
accomplished
What work is
to be
accomplished
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PM IS COMMUNICATION:

35. Performance
planning
Performance
review
Performance
appraisal
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3 ELEMENTS

36.  Performance management is not a system or technique, it is
the totality of the day to day activities of all managers.
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FOWLER’S DEFINITION OF PM