Performance management is a strategic and integrated approach to improving employee performance and developing capabilities. It aims to manage people in a way that drives innovation, goals, productivity and satisfaction for both employees and the organization. An effective performance management system aligns individual performance goals with organizational goals. It also balances intrinsic needs like growth and learning with extrinsic needs like rewards. Building trust, encouraging change and using appropriate measures are key principles for effective performance management.

1. Performance Management System Presented by, Dhwani B. Shah Parth v. Purohit

2. Introduction, Performance Objectives and Plans What is Performance Management? Systematically managing all the people in an organization, for innovation, goal focus, productivity and satisfaction--it is a goal- congruent win - win plan

3. What is Performance Management? Armstrong and Baron define performance management as a “strategic and integrated approach to delivering sustained success to organizations by improving performance of people who work in them and by developing the capabilities of teams and individual contributors

4. It is integrated, because it effects four types of integration Vertical Functional Human Resource Goals What is Performance Management?

5. What is Performance Management? Performance Managed Organizations are likely to have the following characteristics: Measurable performance targets Manage-learning linked with organizational goals on the one hand and with career development on the other

6. What is Performance Management? Pre-eminence of intrinsic needs of managees without neglecting their extrinsic needs Ownership of performance management by line management rather than the personnel function

7. The Manager’s Concern and Interests The rationale for establishing a performance management system does, and must emerge from the managers’ concerns and interests To be effective, this process must start with identification and analysis of the managers’ performance problems and related management skills, in the context of the specific organization

8. The Manager’s Concern and Interests remedying poor performers and performance bridging gaps in performance expectations securing equitable rewards and punishment decisions from the management softening performance pressures through appropriate planning, scheduling and delegation

9. Key to Performance Management Building organizational capability and successful implementation of high-commitment management practices is a key managerial responsibility High-performance management practices require consistent leadership attention, while time and attention are the scarcest of resources in most organizations

10. Key to Performance Management Three basic principles, which effective leaders use to transform their organizations into high-commitment models of management are: build trust encourage change use appropriate measures

11. Performance Management and People Management Performance management is that part of an organization’s people-related function, which is performed by those directly managing the people

12. Performance Management and People Management Within any organization, there are atleast two levels of effort, that concern the performance of its people Optimize individual and collective output

13. Performance Management and People Management effort at the organizational level, which determines the organization’s internal environment effort at the managerial level, which constitutes core of the leader-manager role--- what each manager does to supervise her managees

14. Performance Management System Like any system, it has relatively autonomous, but interdependent and inter-related parts, which ensure effective and smooth functioning of the total system

15. Organizational and Individual Performance Plans Convergent goals and expectations in an organization for group and individual performance would naturally flow from the organization’s performance plans

16. Organizational and Individual Performance Plans The organization’s mission and goals and its long-range or strategic plans The organization’s annual operating plans, circumscribing the team or project-level performance goals

17. Organizational and Individual Performance Plans Organizational values and work ethics to be observed in course of achieving the goals Organization-wide job descriptions, indicating skills and competencies needed

18. Performance Standards Organizations need performance standards, at the level of individual managees as well as at the project or functional or programmatic levels Organizations want to standardize precise expectations

19. Performance Standards Managees need equitable and consistent standards for their individual performance, comparable to others in the organization, to be monitored or assessed by

20. Performance Standards Managees expect that managers everywhere in the organization will use identical--at least similar---standards to measure the performance of competing positions

21. Thank you