strategic performance management in HRM.

2. Introduction
 “Performance” refers to what an employee does or does
not do on the job.
 Performance management include practices which
superior work with their subordinate to define the goals of
the latter, develop employee capabilities through training,
measure and review employee performance in order to
reward performance, all with the ultimate aim of
contributing to organizational goal.

3. Cont………….
 Performance management aim to integrated
employee performance with the strategic goal of the
organization.
 Performance assessment is the process by which
data about an employee’s past and current job
performance in the organization is collected and
reviewed.

4. Cont………….
Performance appraisal is a
systematic and objective way of
evaluating both work-related
behavior and potential of employees.

5. Objective of
Performance
management
Objective of
Performance
management
Recruitment &
Selection
Training &
Development
Personal
decision
Compensation
& rewards
Internal
employee
relation
Feedback &
Motivation

6. Specify organizational
objective
Identify dimensions of
job performance
Define & communicate
performance standard
Determine who will
conduct performance
(sources)
Choose appropriate
methods of
performance appraisal
Communicate appraisal to
employees ( feedback)
Conduct appraisal
Action
Salary increases,
Training , promotion etc.

7. Methods of Performance Appraisal
 Essay writing
 Paired comparison
 Critical incident
 Group appraisal
 Ranking method
 Graphic rating scale
method
 Check list
 MBO
 Forced choice method
 Behaviorally anchored
rating scale

8. Steps of strategic PM
Step 1
Identify competitive
status of the firm
internal analysis of
strengths and
weakness of the
organization
Steps 3
Determine strategies
1.Setting HR strategies
2. Determine needed
employee Behavior
Step 3
Align the performance
management system
1. Define performance
criteria
2. Select the type of
appraisal method

9. Strategic Linkage of PM
Organizational
Life cycle
Competitive
status of Firm
(competitive
advantages)
Organizational
strategies
Needed
Employee
characteristic
s
HR
strategies
Aligning
Performance
Management
Inception
Stage
week Value creation Innovative
Risk taking
Long term
orientation
Focus on
exploratory
knowledge
of worker
Qualitative
methods
Growth stage Strong Value
accumulation
Flexibility
Co-operative
Focus on
exploitive
knowledge
Quantity
method
Maturity
stage
Stable Value
maintenance
Efficiency
Result with
low level of
risk
Harvest
strategy to
maintain
competitiv
e status
Qualitative
methods

10. Strategy for PM & Rewards
 Linking rewards with the performance
 Implement team rewards for the interdependent
jobs.
 Ensuring that the rewards are relevant.
 Ensuring that the rewards are valued by the
employees.
 Checking out for the undesirable consequences of
administration of any reward practice