This document discusses performance management (PM) practices at several organizations. It notes that PM is not a single system, but rather a continuous process with an emphasis on both inputs and outputs. There is a shift towards line managers owning PM as a natural process. PM should be interlinked with other key processes like business strategy and employee development. At some organizations, PM is used as a culture change tool to improve two-way communication. PM focuses on both short-term and long-term objectives as well as personal and people development. The document also discusses performance-related pay, line manager ownership of PM, and rejecting bureaucracy in PM systems.

1. Najeebullah Hemat
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1ppt by Najeeb, On 18-02-15

2. Contents of the chapter
 PM is not a single system.
 PM is a continuous process.
 PM more emphasis on input as well as output.
 The focus is more on development rather then
pay.
 There is a shift towards line managers’ accepting
& owning performance management as natural
process.
 Rejection of bureaucracy.
2ppt by Najeeb, On 18-02-15

3. PM as an interlinked process
 PM should link with other key process like
 Business strategy
 Employees development
 Total quality management
3ppt by Najeeb, On 18-02-15

4. At Seeboard PM used as
Culture changes.
Recognition of the need to improve
communication.
To improve two way communication.
Perhaps the common links are between PM &
career progression or development of skills,
Capabilities in all the organizations
4ppt by Najeeb, On 18-02-15

5. PM as continuous process
 Regularly base.
 Annual base.
At seeborad operate a system called (PDR)
which the aim is (KPI) it identify the need for
training or skill improvement & they use the
system as annually base
5ppt by Najeeb, On 18-02-15

6. PM more emphasis on inputs
PM atVolkswagen UK Ltd-is competencies
base it was developed at house, jobs are
grouped into a series of job that different
people can perform at different level.
10 critical competencies for each job.
SevernTrentWater-defined competency as
grouping of knowledge, skills, and behaviors
which may required in whole or part within a
variety of managerial situation.
6ppt by Najeeb, On 18-02-15

7. Objectives
Long-term
 Its important to make people think about
long term objective
Short-term
 Some employee think about short term
objective like pay rise and bonus
 Top-down/bottom-up objective.
7ppt by Najeeb, On 18-02-15

8. Major food manufacture
objectives.
 Contribution to achieve annual plan.
 Long term contribution is the contribution to
move the business one year nearer to the
target which is important for the health of the
business.
 Personal development.
 People development ( without any direct
report still expected from manager to
developed the employees)
8ppt by Najeeb, On 18-02-15

9. Focus on development
 PM should address the need of both the
organization & employees they need
feedback to know how they perform.
 Managers should identify the need skills of
the employee and help them to improve
those need.
 At 3M emphasis of PM to development-
create better career structure to improve the
employee experience.
9ppt by Najeeb, On 18-02-15

10. Performance-related pay
(PRP)
 At Abbey National John king HR director
introduced the PRP system, so the staff felt if
works harder they will paid more.
 Les Davies, the director of HR at BroTaf Health
Authority felt that PRP is subjective judgments it
abuse concerning such grey areas as weather
manager perform or not it could not be realistic,
he mean that PRP does not act as motivator it
works as demotivator, PRP might create
relationship conflict between manager and
employees.
10ppt by Najeeb, On 18-02-15

11. Line- manager ownership of PM
 It’s the responsibility of the line manager how to
do well and manage the best practices of the PM
at the organization.
 At NatWest UK, developed a system to reward
the staff who perform well, manager have the
reward pot, which they can allocate to
individuals based on the performance.
 AtVauxhall Motor company- manager conduct
a meeting and identify the important things to
be done then encourage the employees to
perform .
11ppt by Najeeb, On 18-02-15

12. Rejection of bureaucracy
 Bureaucracy makes death the sound of all.
 They gone from filling & rating to more
descriptive term & less formal .
 One manager commented in the rating
system one number was you life & all other
HR process was locked behind the appraisal.
12ppt by Najeeb, On 18-02-15

13. ppt by Najeeb, On 18-02-15 13