Unit IV Performance Management 4 LHs..pptx

Unit 4: Performance
Management - 4 LHs

Unit 4: Performance Management - 4 LHs
• Concept of performance management and appraisal,
• Methods of performance appraisal,
• Reward management;
• Types and qualities of effective rewards;
• Role of a manager in the different stages of the performance management process.
• Productivity and time management for people;
• Performance appraisal practices in Nepali organizations.

The basic intentions and expectations of performance
management are as follows:
• It translates organizational goals into individual, team, and unit goals.
• It helps to clarify the organizational goals.
• It provides a process for measuring outputs compared with objectives but also examines the
inputs needed to achieve the objectives.
• It relies on consensus and co-operation rather than control or coercion.
• It encourages self-management of individual performance.
• It is a continuous and evolutionary process, and achieves improvement over time.
• It is strongly associated with development and especially identifying what development is
needed.

What is Performance?
• Performance to be as how well or badly you do something or how well or badly
something works.
• it is also defined as the act or process of performing a task, an action, etc.
• Perform means to work or function well or badly.
• Performance is the time test of any strategy.
• Lebas (1995): Performance is about deploying and managing well the
components of the causal model that leads to the timely attainment of stated
objectives within constraints specific to the firm and to the situation.

• Hauber (2002): The term “performance” describes the contribution of
specific systems (organizational units of differing sizes, employees, and
processes) to attain and validate the goals of a company.
• Wettstein (2002): Performance can be understood as the degree of
stakeholder satisfaction.
• EFQM (2003): Performance is the level of attainment achieved by an
individual, team, organization or process.

• Performance is a term that can have different meanings depending on the
context.
• In general, it refers to the act of carrying out a task or function, or the
quality of how well that task or function is carried out.
• For example, in the context of entertainment, performance refers to an act
of presenting a play, concert, or other form of entertainment.
• In the context of computing, performance refers to how well a computer
system or component performs a given task.

Performance management
• Performance management is a much wider process.
• It is, in fact, a total and integrated process comprising activities
like goal-setting, training, evaluation, and rewarding of employees.
• It is a goal-based process aimed at guaranteeing that
organizational processes produce the expected performance on
the part of both the employees and the organization.

• It begins with the task of setting performance standards for employees followed by
training and development.
• It finally ends with performance appraisal and thereby fixing rewards for employees
in a fair and objective manner.
• It means performance management start from setting performance standard and in
end in performance appraisal of employees and organization.
• Performance appraisal is a one-time event each year whereas performance
management is a dynamic, ongoing, and continuous process.

What is performance management?
• “Performance management means goal-oriented processes directed toward
ensuring that organizational processes are in place to maximize the
productivity of employees, teams, and, ultimately, the organization.” —R.
Wayne Mondy
• “Performance management can be defined as a process that consolidates
goal setting, performance appraisal, and development into a single, common
system, the aim of which is to ensure that the employee’s performance is
supporting the company’s strategic aims.” —Gary Dessler

• Performance management is a process of continuous communication
between a supervisor and an employee that occurs throughout the
year, in support of accomplishing the strategic objectives of the
organization.
• The process includes clarifying expectations, setting objectives,
identifying goals, providing feedback, and reviewing results.
• The goal of performance management is to create an environment where
people can perform to the best of their abilities and produce the highest-
quality work most efficiently and effectively.

• Performance management is a tool that helps managers monitor and
evaluate employees' work.
• The goal of performance management is to create an environment where
people can perform to the best of their abilities and in alignment with the
organization's overall goals.
• Performance management is widely used in both the private and public
sectors.

• Performance management is ensuring frequent interactions with employees in
order to enhance their level of and capacity for performance on a sustained basis.
• This core feature is included in many of the definitions of performance
management.
• A formal performance-management program helps managers and employees see
eye-to-eye about expectations, goals, and career progress, including how an
individual's work aligns with the company's overall vision.

• Performance management is intended to help people perform to the best of
their abilities in alignment with the organization's goals.
• It views individuals in the context of the broader workplace system and
encourages their input in goal-setting.
• Performance management focuses on accountability and transparency and
fosters a clear understanding of expectations.
• Rather than just annual performance reviews, performance management
provides ongoing feedback to employees.

• A formal performance-management program helps
managers and employees see eye-to-eye about
expectations, goals, and career progress, including how
an individual's work aligns with the company's overall
vision.

Performance appraisal
• A performance appraisal, also referred to as a performance review, performance
evaluation, development discussion, or
• Employee appraisal, sometimes shortened to "PA", is a periodic and systematic process
whereby the job performance of an employee is documented and evaluated.
• This is done after employees are trained about work and settle into their jobs.
• Performance appraisals are a part of career development and consist of regular reviews of
employee performance within organizations.

Performance appraisal/evaluation
• A performance appraisal is a systematic and periodic process of measuring an
individual’s work performance against the established requirements of the job.
• It’s a subjective evaluation of the employee’s strengths and weaknesses, relative
worth to the organization, and future development potential.

• Almost all organizations have some means of evaluating their workforce
performance.
• The means of evaluation may be a formal or informal.
• Though the basic objective of any evaluation is to improve individual and
organizational performance, it serves different purposes for different organizations.
• For instance, some organizations may link pay and promotional decisions to
evaluation results while others may use it just to know the deficiency in their
employees’ performance.

• The interesting aspect of performance evaluation is that its results are
potentially valuable for practically every human resource functional area.
• It is used as the basis for determining performance-linked incentives, good
work awards, letters of appreciation, special increments, promotions, and
nominations to external training programs in India and abroad, public
felicitation and appreciation.

Objectives of Performance Evaluation/Appraisal
• Every organization practices some form of performance evaluation to
achieve the pre-specified objectives.
• However, these objectives usually differ from organization to organization.
• Sometimes, they may vary even within the same organization from time to
time depending upon the prevailing requirements.
• The common objectives/purpose of performance evaluation are:

• 1. Identify the Performance Gap
• Performance evaluation helps in determining the gap between the actual
performance of the employee and the performance expected or desired by
the organization.
• 2. Provide the Basis for Promotion, Transfer and Termination
• Performance evaluation facilitates the process of identifying in an objective
manner the employees who deserve promotions, transfers or even
terminations.

• 3. Aid in Designing Training and Development Programmes
• The results of performance evaluation can be used to identify the specific
skills required to be developed for each employee and thus can help in
developing the training and development programmes.
• 4. Assist in Wage and Salary Administration
• Performance evaluation helps in determining compensation packages like
wage fixation, rewards allocation, and incentives for the employees on a
scientific basis.

• 5. Help in Increasing Employee Effectiveness
• It facilitates the organization in improving the effectiveness of its employees by helping them
identify their strengths and eliminating their weaknesses.
• 6. Improve Interpersonal Relations
• It helps in building a cordial industrial relationship by encouraging good contact between the
management and the labour.
• It acts a mechanism for communication between the superiors and the employees.
• 7. Identify Employees’ Grievances
• It helps in identifying and recognizing the grievances of the employees at the earliest and
thereby removing factors responsible for such grievances.

Uses of Performance Evaluation
• An organization may have several reasons to appraise its employees.
• For instance, HR managers require performance evaluation
• to provide feedback,
• to support the performance enhancement drive,
• to make valid decisions,
• to justify terminations,
• to recognize training and development needs, and
• to defend any personnel decisions.

• The following are some of the HR operations where the results of performance evaluation
are widely utilized:
• Human Resource (HR) Planning
• HR planning involves forecasting and determining the manpower requirements of an
organization to meet its strategic goals.
• With the help of a performance evaluation, the organization can assess its available
manpower effectively and plan its future HR programmes based on the anticipated labour
requirements.
• Through performance appraisal, it can also plan and prepare a profile of its HR strengths
and weaknesses to support its strategic missions and goals

• Recruitment and Selection
• The purpose of any selection tool is to predict the likely performance of candidates when offered jobs.
• The scores from the various selection devices administered to candidates at the time of selection are usually
correlated at a later stage with their actual job performance to determine the efficacy and validity of the
selection tools.
• In fact, performance evaluation offers a way for validating both internal (promotions and transfers) and
external (employing new people from outside sources) selection programmes
• Performance evaluation ratings are good at predicting the performance of candidates.
• However, when not enough attention is given to the appropriate evaluation of the employees’ performance,
the time and money spent on the designing and development of selection tools are simply wasted

• Employee Training and Development
• Performance evaluation can easily identify a worker’s specific needs for training.
• This is because shortages in performance are usually the direct outcome of the
absence of adequate knowledge or skills on the part of the workforce.
• In fact, performance evaluation results can be used to decide whether an employee
or group of employees will require additional training and development.
• Inadequacies in the performance of the employees can be identified through
evaluation and training programmes formulated accordingly so that employees can
build on their strengths even while removing their deficiencies

• Compensation Decisions
• Performance evaluation provides reliable information for determining the pay scale of the employees.
• In fact, compensation decisions, to varying degrees, are based on the results of an employee’s performance
appraisal.
• Performance evaluation helps the organization to reward behaviour that contributes directly to the
accomplishment of the organizational objectives.
• Thus, it is essential to design and execute a dependable performance evaluation system to reward the most
efficient workers and groups appropriately.
• A recent study showed that two thirds of the companies use performance reviews to determine pay
increases, and almost half use them to calculate bonuses.

• Career Planning and Development
• Performance evaluation is useful in determining the career plans of employees.
• Any organization would like to promote only the best qualified employees to the higher
levels.
• In this context, performance evaluation data is vital in evaluating an employee’s strengths
and weaknesses and also in deciding the employee’s potential.
• An organization may decide about transfers, lay-offs, and so on, based on the results of the
performance evaluation.
• Finally, the HR professional can help employees in developing and implementing their
career plans on the basis of performance evaluation.

• Grievance and Discipline Issues
• Performance evaluation information is also used frequently for decisions relating to
promotion, demotion, termination, layoff and transfer.
• Performance evaluation results can be used to initiate the necessary action against
incompetent employees faring poorly in the performance evaluation, provided the
process of evaluation is flawless and standard.
• Performance evaluation data can also be used as an important source of
documentation for formal grievances that are filed in connection with employee
disciplinary actions

• Feedback
• Employees are usually interested in knowing the results of the performance evaluation.
• This is because they may be curious to know how well they are performing at present and
how much improvement is required to attain the desired performance.
• This feedback enables them to have a clear idea about their standing in the organization as
related to performance rewards like promotion, or merit pay.
• An objective and timely feedback can benefit the employees in terms of motivation and
satisfaction; it can benefit the management in terms of increased cooperation, productivity
and support from the employees.

Determining the Criteria for Performance
Evaluation
• The determination of the criteria for performance evaluation often involves the tricky question
of what aspects of employees’ performance are to be evaluated.
• The note of caution here is that the criteria selected should be purely job-related and well within
the control of the workers.
• Also, they should be clearly defined and have no ambiguity.
• As far as possible, performance evaluation that is based on a single criterion is to be avoided.
• The job analysis report can help in identifying the criteria for each job.
• Normally, performance evaluation criteria involve individual traits, behavioural characteristics,
goal accomplishment, scope for improvement, and competencies.
• We shall now discuss these criteria briefly

Evaluation
• Individual Traits
• The employees’ attributes like attitude, outlook and initiative can be the basis
for the performance appraisal. However, it is to be ensured that the
subjective elements in these traits are controlled carefully and defined
properly, otherwise, they can cause inaccuracy in evaluation.
• For instance, subjective elements like leadership qualities, appearance,
personal conduct, attitude towards life, ethical practice, imagination, mental
alertness, and reliability can cause bias and prejudice in evaluation

Evaluation
• Behavioural Characteristics
• Behaviour is the aggregate of the responses, reactions or movements made by a
person in any situation.
• Although the individual’s response on a particular occasion is difficult to determine,
organizations may evaluate the standard task-related behaviour or competencies.
• For instance, leadership styles, teamwork, commitment, and customer care are some
of the desired behaviours normally included as criteria to evaluate the employees.
• Organizations tend to recognize and reward those behaviours that can contribute
to the overall growth of the organization

Evaluation
• Goal Accomplishment
• The successful accomplishment of goals can become a criterion for evaluating the
performance of employees.
• The outcome of those goals that contribute to the success of the organization can be an
ideal appraisal criterion.
• They may be financial goals like profit, cash flow or marketing goals like the desired
sales, achieving the target market share or standing in the market, maintaining the time
schedule, and total quality management.
• However, it is imperative that the management involve the employees in the process of
fixing goals for evaluation

Evaluation
• Scope for Improvement
• Performance evaluation criteria may focus on assessing the future potential
of employees.
• A proper evaluation of the potential of employees can help in deciding their
career plan and prospects systematically.
• It is to be noted here that the performance evaluation report would become
mere historical documents with little use if the focus of the evaluation does
not shift from the past to the future performance of the employees

Evaluation
• Competencies
• Competency is the quality of being well-qualified physically and intellectually.
• Performance evaluation can attempt to assess those job-related skills, knowledge,
qualities, ethical values, flexibility and sense of judgment that contribute to job success.
• Susan Meisinger identified five key areas that require the application of specific
competency and skills and contribute significantly to the success of an organization in
general and HR management in particular.

• These are:
• Strategic contribution: Connecting the organizations to their markets and quickly aligning
employee behavior with the organizational needs
• Business knowledge: Knowing how businesses are run and translating this into action
• Personal credibility: Demonstrating measurable value; being part of an executive team
• HR delivery: Providing efficient and effective service to customers in the areas of staffing,
performance management, development, and evaluation
• HR technology: Using technology and Web-based means to deliver value to customer

Performance Evaluation Process
• The performance evaluation process should strengthen the working
relationship between the managers and their employees.
• It should also contribute to the long-term success of the organization.
• The entire process should be a rewarding and satisfying experience not only
for the organization but also for the individual employees.
• An ideal performance evaluation process should provide the basis for
managing the business of today and for developing it in the future.

The steps involved in a performance evaluation process.
• 1. Setting the Performance Evaluation Goals
• The first step in the process of performance evaluation is setting specific
goals.
• These goals are usually set jointly by both the superiors and the employees.
• The goal-setting process ensures that every employee knows what is
expected of him and how the achievement of the goal contributes to the
overall success.

• Organizations should select only those goals that are most important and realistically achievable. Stephen
Williams specified the following three types of objectives for a performance evaluation programme:
• (i) Key result areas: The objectives which contribute to the achievement of the business goals of the unit.
• (ii) Performance standards: The objectives which contribute to the improvement in the performance of the
individual job.
• (iii) Performance development: The objectives which contribute to the development in the performance of
the individual.
• Undoubtedly, the effectiveness of performance appraisal depends on the efficiency of the objectives being
framed.

• 2. Establishing the Performance Criteria
• The second step in the process is deciding the criteria for evaluation.
• These criteria are the basis for comparison.
• It is actually a reference point in terms of which other things can be evaluated.
• An organization has to decide what characteristics of the employees are to be evaluated.
• The criteria should be job-related, specific, and within the control of the employees.
• They may include, among others, the traits, behaviours, cost-related outcomes, competencies, goal achievement, and
scope for further improvement.
• There should be joint discussions between the superiors and the employees regarding criteria formulation. Once the
performance criteria are established, these should be communicated to all those concerned.

• 3. Actual Evaluation of Performance
• At this stage, the employee’s performance is evaluated actually on the basis
of predetermined criteria.
• The evaluator and the employee review the latter’s job performance jointly
and appraise it against established performance standards.
• This appraisal assists in determining to what extent employees have met
these standards, ascertaining the reasons for any deficiencies and preparing a
plan to correct the problems.

• Post-evaluation Interview with Employees:
• As a final step in the formal evaluation process, the superior can have a meeting with the
appraised employees to discuss the results of the evaluation, once the appraisal is over.
• At this stage, the evaluator can ascertain from the employees the reasons for their high or low
level of achievement against pre-determined objectives.
• Further, the evaluator can help the employees consolidate their strengths and improve their
relative weaknesses.
• At this meeting, goals can also be set for the next evaluation period and the process goes on.
Box 10.5 depicts the elements of performance evaluation process at J. K. Lakshmi Cement.

Methods of performance appraisal
• A performance appraisalis the periodic assessment of an employee’s job performance as
measured by the competency expectations set out by the organization.
• The performance assessment often includes both the core competencies required by the
organization and also the competencies specific to the employee’s job.
• The appraiser, often a supervisor or manager, will provide the employee with constructive,
actionable feedback based on the assessment.
• This in turn provides the employee with the direction needed to improve and develop in their
job.
• Based on the type of feedback, a performance appraisal is also an opportunity for the
organization to recognize employee achievements and future potential.

• There are many ways an organization can conduct a performance appraisal,
owing to the countless different methods and strategies available.
• In addition, each organization may have their own unique philosophy making
an impact on the way the performance assessment is designed and
conducted.
• A performance review is often done annually or semi-annually at the
minimum, but some organizations do them more often.

• The decision regarding the selection of a particular type of evaluation usually involves answering questions
like what aspects are to be evaluated and how they should be evaluated.
• However, the purpose of evaluation is the major guiding factor for such decisions.
• For instance, traditional methods like rating scales, paired comparisons and other similar methods are
appropriate when the purpose of evaluation is identifying suitable employees for promotions and
compensation, whereas collaborative methods like evaluation by employees, peers, customers and
self-evaluation are more suitable for developing the employees.
• Thus, managers have to carefully choose from the number of evaluation options available to them

• Performance appraisals come in many forms.
• Managers and human resources staff responsible for these appraisals need to
choose the best methods based on the size of their organization and what
sorts of responsibilities the employees fulfill.

• 1. 720-Degree Feedback
• You could say that this method doubles what you would get from the 360-degree feedback!
• The 720-degree feedback method collects information not only from within the organization
but also from the outside, from customers, investors, suppliers, and other financial-related
groups.
• 2. The Assessment Center Method
• This method consists of exercises conducted at the company's designated assessment center,
including computer simulations, discussions, role-playing, and other methods.
• Employees are evaluated based on communication skills, confidence, emotional intelligence,
mental alertness, and administrative abilities.
• The rater observes the proceedings and then evaluates the employee's performance at the end.

• 3. Behaviorally Anchored Rating Scale (BARS)
• This appraisal measures the employee’s performance by comparing it with specific established behavior
examples. Each example has a rating to help collect the data.
• 4. Checklist Method
• This simple method consists of a checklist with a series of questions that have yes/no answers for different
traits.
• 5. Critical Incidents Method
• Critical incidents could be good or bad. In either case, the supervisor takes the employee’s critical behavior
into account.

• 6. Customer/Client Reviews
• This method fits best for employees who offer goods and services to customers.
• The manager asks clients and customers for feedback, especially how they perceive the employee and, by
extension, the business.
• 7. Field Review Method
• An HR department or corporate office representative conducts the employee's performance evaluation.
• 8. Forced Choice Method
• This method is usually a series of prepared True/False questions.

• 9. General Performance Appraisal
• This method involves continuous interaction between the manager and the
employee, including setting goals and seeing how they are met.
• 10. Human Resource Accounting Method
• Alternately called the “accounting method” or “cost accounting method,”
this method looks at the monetary value the employee brings to the
company.
• It also includes the company’s cost to retain the employee.

• 11. Management By Objective (MBO)
• This process involves the employee and manager working as a team to identify goals for the former to work
on.
• Once the goals are established, both parties discuss the progress the employee is making to meet those goals.
• This process concludes with the manager evaluating whether the employee achieved the goal.
• 12. Performance Tests and Observations
• This method consists of an oral test that measures employees' skills and knowledge in their respective fields.
• Sometimes, the tester poses a challenge to the employee and has them demonstrate their skills in solving the
problem.

• 13. Project Evaluation Review
• This method involves appraising team members at the end of every project,
not the end of the business year.
• 14. Rating Scales
• These ratings measure dependability, initiative, attitude, etc., ranging from
Excellent to Poor or some similar scale.
• These results are used to calculate the employee's overall performance.

Reward management
• What is reward?
• Reward is an incentive plan to reinforce the desirable behavior of workers or
employers and in return for their service to the organization.
• Rewards can be monetary in the form of salary or non monetary in the form
of awards for some special services to the company or simply giving an
employee a work which he enjoys doing.
• The primary objective of organizations in giving rewards is to attract,
maintain and retain efficient, high performing and motivated employees.

• Reward management is a strategic approach to incentivising your workforce to improve
performance, engagement and morale:
• It rewards employees according to a business’s values and that they are prepared, or are able, to
fund
• It rewards employees for the value they create and contributes to employee wellbeing
• Rewards the things that convey the right message about what is important in terms of behaviours
and outcomes within a business
• It helps to contribute to a strong, positive company culture

• It strengthens organizational EVP (employee value proposition) – your EVP is what sets you
apart from other employers (your competitors) and helps you attract top talent to your
organisation
• It can help motivate employees and confirm their commitment to the business and engagement
within it
• Help to retain top talented individuals to your business
• It increases productivity
• It helps you to build a strong reputation – this can be a key way to engage employees, contribute
to a positive reputation and have a significant influence on your clients.

Types of Rewards in HRM
• Rewards can be of two types:
• Intrinsic
• They are incentives which satisfy an employee internally.
• Only money is not enough to motivate people and it is important to make people realize their contribution to
the organization matters.
• That motivates employees internally.
• Intrinsic incentives can be giving meaningful work to employees, giving autonomy to employees, allowing
employees to take responsibility in areas of their expertise and provide developmental opportunities to
employees

• Reward management and Intrinsic Rewards
• Intrinsic rewards are the rewards we receive from doing something we like.
• They are the most immediate and enjoyable kind of reward and are often the
ones we seek most when we are making decisions.
• Intrinsic rewards come from the experience of doing something—for
example, the feeling of accomplishment from completing a hard workout.
• Intrinsic rewards can be anything enjoyable and worth keeping doing. They
can be as simple as complex as learning a new skill.

• These awards are encompassed by things such as awards, praise, and public recognition, which
give a sense of achievement but don't have a monetary value.
• They give employees a sense of achievement, but they are not materialistic.
• Intrinsic rewards make employees satisfied and have pride in their work.
• They also give them a sense of belonging to a team and a feeling of accomplishment.
• Tactics that can provide intrinsic rewards are flexible working hours, job enrichment, and job
rotation.
• They allow workers to be motivated to carry out their duties and experience job satisfaction.

• Extrinsic
• They are mostly tangible incentives like pay, advancement, recognition, time
off etc.
• Extrinsic rewards the ones which are more sought after by employees as it
can improve the motivation and job satisfaction in the short term and
addresses immediate issues.

• Reward management and Extrinsic Rewards
• Extrinsic rewards are bestowed on an individual by a third party.
• These are rewards given physically to the employee and have a monetary value, such
as a bonus or paid holiday.
• They can be held in one's hand, such as money or presents.
• They are often straightforward to comprehend and evaluate, both of which make it
simple to employ them as a form of incentive.
• They are frequently used to motivate people to engage in particular actions or
accomplish particular objectives.

Types and qualities of effective rewards
• Reward management and financial Rewards
• These rewards are given to employees to enhance their financial well-being.
• They are tangible, and they fulfill the employee's financial needs.
• Examples of financial rewards are pay, allowances, profit sharing, awards, and
allowances.

• Reward management and non-financial rewards
• These rewards emphasize how much the company values its staff.
• They are incentives created to motivate employees to stay on the job.
• Non-monetary rewards are intangible, and they fulfill the psychological
needs of employees.
• They include expressions of thanks and appreciation from coworkers and
employers.

• Reward management and performance-based Rewards
• These reward employees based on their performance.
• This reward system implies incentives in terms of commission on sales,
bonus on high production, the share of profit as well as recognition.
• It means employees who are high performers would get higher incentives
and vice versa.

• Reward management and group-based rewards
• These are reward management strategies to provide a reward to employees based on
team performance.
• Employees who complete duties in groups are rewarded on a group basis.
• According to research, most organizations promote group work because when
individuals work in groups, they benefit from each other's support and aid in finding
solutions to problems and reaching goals.
• A group is typically compensated with both monetary and non-monetary rewards.

• Reward Examples
• A company gives various rewards to its employees in their tenure. Good examples of rewards are
Promotion, Raise in compensation, Monetary awards, Recognition of work done. Employees in
modern organizations want reward as well as recognition for the work they do.
• Work from home, flexible timings and option to chose work and responsibilities is also seen as
rewards these days and motivates the employees.
• Many companies these days have awards ceremonies for the top employees of the company.
These awards are given for the contribution of the employee to the organization. The total
reward consists of award, monetary benefit and the employee is identified as a future leader.

Role of a manager in the different stages of the performance
management process.
• Every organization aims to optimize the performance of its employees in
order to reach its objectives.
• To accomplish this, it is essential to have a system in place that enables
managers to oversee, mentor, train, and inspire their employees.
• This is where the concept of a performance management cycle comes into
play.
• The performance management cycle can be divided into four key stages:
planning, monitoring, developing and reviewing, and rating and rewards.

• The performance management cycle is an ongoing process that involves planning, implementing,
measuring, and analyzing employee performance.
• Its goal is to achieve comprehensive performance management by aligning employee success
with that of the organization.
• Traditionally, the performance management cycle lasted a year.
• However, in today’s labor market, focused on feedback, employee engagement, and experience,
companies are increasingly adopting a more agile approach to performance appraisal.
• This shift has prompted organizations to embrace shorter performance appraisal cycles, often
quarterly or semi-annually, along with a culture of frequent feedback.

Performance management process steps
• The steps in the performance management process can be broken down into four broad categories:
Planning, coaching, reviewing and rewarding.
• Each step is equally important, and together form the backbone of a company’s performance management
process.
• 1. Planning
• The first step of the performance management process is Planning.
• 1.1 The defining stage
• 1.2 The feedback stage
• 1.3 The approval stage

Role of the manager in Performance
management process steps
• 1.1 The defining stage
• The performance management process begins with the planning stage.
• HR and management need to define the job itself, including a comprehensive
description, long and short-term goals, identify key objectives and develop a clear
metric for how those objectives and goals will be assessed.
• Goals should be clear, done in the SMART format (specific, measurable, attainable,
relevant, time-based) and clear performance standards should be set.

• 1.2 The feedback stage
• Once management has completed the defining stage, employees should have
the opportunity to give input on this material.
• They are the one doing their job and will have a key insight into what skills,
competencies and goals will best assist the company to achieve
organizational goals.

• 1.3 The approval stage
• Management and employees both agree to the definition of the role, goals
and objectives.
• By making this first step of the performance management process
collaborative, management sets the stage for the process as a whole to be
collaborative, and the employee feels that they are involved in goal setting –
an important thing.

• 2. Coaching/Development
• 2.1 Organize meetings on a timely, regular basis
• Once the parameters of the job and objectives for the future have been set,
the next step of the performance management process begins.
• The coaching process is extremely important and must be done on a regular
basis. Meetings should be at least quarterly, although monthly meetings are
the ideal.

• 2.2 Provide necessary training, coaching and solutions
• These meetings should focus on solutions and coaching opportunities, rather
than punitive measures for lackluster performance.
• If accountability is made into a negative, then employees will avoid it rather
than being honest about where they are struggling.
• In some cases, management training in this area can be very helpful to an
organization.

• 2.3 Solicit feedback on both sides
• Management should be able to give – and receive – honest feedback and
work with employees rather than adopting a combative stance.
• The ability to give actionable feedback is important here.

• 2.4 Revisit objectives as necessary
• As the performance management process continues, management should
revisit objectives to see if adjustments should be made, as well as pay
attention to career development opportunities for their employees.
• This step involves reviewing the overall performance of the employee, how
well the process itself worked, and it also includes the reward – which is an
extremely important part of the overall process.

• 3. Reviewing
• 3.1 Reviewing employee performance
• At the end of the yearly performance management cycle, there should be an employee review, which is
sometimes also called a performance appraisal.
• Typically, these are held once a year, to look at how well the employee performed over that span of time.
• There should be a clear record from previous check-ins to show the employee’s progress throughout the
year. The monthly check-ins are to help the employee with problem-solving, adjusting goals and other
future-looking tasks. This performance review is the only step that looks backward, to assess the behavior of
the past year.

• 3.2 Reviewing the performance management process
• At this stage, it is important for both management and employees to look over the previous year and see how well the performance
management process worked.
• Questions that can be asked are:
• Were personal and organizational objectives met? If not, why?
• What challenges did the employee face?
• What training would help the employee perform better?
• How did management feedback help? If not, why?
• How could the process be made better?
• Was the time spent on this process effectively?

• 3.3 Reviewing overall goal completion
• Of course, one of the main questions to answer is ‘did the employee reach
their goals?’ How well did the employee succeed at the tasks given to them
throughout the year?
• It is important to look at both smaller and larger goals, as this can give an
indication to problem areas where training or interventions can be applied.

• 3.4 Giving actionable feedback
• A key part of the review is to give and receive feedback.
• Management should give actionable feedback for the employee so that they
know areas where they can improve future performance.
• The employee should also be invited to give feedback on the process, and
how management can do better on their end.

• 4. Action
• The last step in performance management process is Action.
• 4.1 Reward and recognition
• The last step of the performance management process is the reward and recognition.
• This step is absolutely key – employees will not stay motivated if they are given no reason to.
This does not necessarily have to be monetary, although it likely will include monetary
compensation. Other rewards could be new projects, company-wide recognition, time off, or
leadership opportunities.

• 4.2 Setting the stage for next year’s performance management cycle
• The end of the performance management cycle gives management and
employees one last chance to offer feedback on the process as a whole and
asks for thoughts and feedback for the planning stage for the next year’s
cycle.

Productivity and time management for people
• Productivity and time management are related concepts that involve how
much work is done in a given amount of time and how to use that time
effectively.
• Time management can help increase productivity by setting goals,
organizing your workspace and planning your tasks.
• Time management can also reduce stress, improve work-life balance and
allow for rest and self care.
• Time management strategies like ABCD analysis, Priority matrix, and
Eisenhower Method can help you stay focused and productive.

Productivity and time management for people
• Small businesses and freelancers need to maximize the time they have
available to grow their business and proper time management skills can help
do that.
• Time management is important for busy companies so they can prioritize all
their work tasks and achieve their goals faster.
• When you better manage your time, you’ll be able to take on new
opportunities and grow your business in a sustainable manner.

• Improve productivity.
• There are a variety of time management tips to help reduce procrastination
and increase productivity. By identifying your main priorities for the day, you
won’t just be more productive—you can also feel confident that you’re
working on the right things each day.

• 6 time management strategies to increase productivity
• One of the easiest ways to build your time management skills is to incorporate a tried-and-true time management strategy into your daily
routine. Time management strategies help you set time limits on work, tackle one task at a time, and schedule your day with more intention.
• 1. Timeboxing
• Timeboxing is a goal-oriented time management strategy where you complete work within “timeboxes.” This strategy is particularly effective if
you aren’t sure how much time you’re spending on each task and want to approach your to-do list more intentionally.
• Timeboxing helps you break down large tasks into smaller pieces, and then complete those pieces in a reasonable amount of time. Each task
should have its own unique timebox that lasts no more than three hours. For example, if you need to write a blog post, you might create a two-
hour timebox to write an outline. Then after taking a break, you can create another three hour timebox to begin the first draft. By breaking the
work into smaller pieces, you can make steady progress towards your goal over the course of days or weeks.
• The tool should capture all the details—it’s your job to take action on them.

• 2. Time blocking
• Time blocking is similar to timeboxing, but instead of scheduling specific time for each individual task,
you’ll practice blocking off set periods of your calendar for related work. When you use time blocking
to schedule your work, you’re effectively breaking the work week into discrete time slots where you can
work on projects, communicate with coworkers, take a break, or even exercise. Time blocking can help
you dedicate more time to flow and deep work by allowing you to focus without being interrupted.
• To create a time block, start by figuring out your daily or weekly priorities. Then, group similar tasks so
you can work on them in one time block. Finally, practice scheduling blocks of focus time on your
calendar to help you stick to your time blocked schedule.

• 3. Pomodoro method
• Similar to timeboxing and time blocking, the Pomodoro method helps you tackle work within short time frames and then take
breaks between working sessions. The Pomodoro time management strategy is particularly helpful because it actively encourages
regular breaks, which are good for intrinsic motivation—and good for your brain. In fact, research suggests that taking breaks
makes people more creative.
• To use the Pomodoro method, you need a timer, a prioritized to-do list, and a “snooze” feature on your notifications. Start by
setting your timer for 25 minutes, and try to spend that time exclusively working on a task—avoid checking your text messages or
social media if possible. Then, once time is up, take a five minute break. Ideally, aim to do something physical during your break,
like grabbing a snack or getting up to stretch—but it’s ok to check your devices or see if you got an important ping while you were
focused on your task.
• Repeat the process of working for 25 minutes and then taking a five minute break four times. Then, after the fourth working
session, take a longer 20-30 minute break.

• 4. Eat the Frog
• Mark Twain famously said, “If it’s your job to eat a frog, it’s best to do it first thing in the morning.”
The Eat the Frog time management strategy takes inspiration from this quote and encourages you to
tackle big or complex tasks first before working on your less important or less urgent work. This
strategy is particularly helpful if you split your days between regular, daily work and high-priority tasks.
• With the Eat the Frog method, you can ensure you’re getting to your most important work every day.
To get started with this time management strategy, make sure you’re tracking your work and priorities
in a centralized tool. Look for a way to connect your daily tasks to company goals. That way, you can
better identify which tasks to prioritize every day, and make sure you get those to-dos done first. Then,
once you’ve eaten your frog for the day, you can move on to the rest of your work.

• 5. Pareto principle
• If eating a frog first thing in the morning doesn’t sound appetizing, you might prefer the Pareto time
management strategy. The Pareto principle is the opposite of the Eat the Frog method—this strategy
encourages you to get quick tasks out of the way, so you can feel more accomplished and motivated as you
head into your day.
• Often called the “80/20 rule,” the Pareto principle has one fundamental rule: you spend 20% of your time
on 80% of your work. If you can get those 80% of your tasks out of the way in relatively quick order, you
free up your workday to tackle the 20% of your work that will take 80% of your time.

• 6. Getting Things Done (GTD)
• The Getting Things Done method was invented by David Allen in the early 2000s. According to Allen, the
first step to getting things done is to write down everything you need to do. By freeing up brain power and
instead relying on task management tools, you can focus on taking action—and not remembering what you
need to do.
• To use the GTD method, capture all of your upcoming work in one place. Then once you’ve written down
everything you need to do, sort and prioritize your work. For example, you might have work you no longer
need to do (that goes in the “trash”), work you want to do eventually but not right now (that goes into a
“later” project or folder), work that is dependent on other tasks, and so on. The tool should capture all the
details—it’s your job to take action on them.

Performance appraisal practices in Nepali
organizations.
• Performance appraisal practices in Nepalese organizations may vary based on
the specific industry, company size, and cultural context. However, some
common approaches and practices include:
• Annual Performance Reviews: Many Nepalese organizations conduct
annual performance reviews where managers and employees meet to discuss
job performance, accomplishments, and areas for improvement.
• These reviews often involve setting goals and objectives for the upcoming
year.

organizations.
• Self-Assessment: In some organizations, employees are encouraged to
conduct self-assessments of their performance before the formal review.
• This allows employees to reflect on their achievements and challenges and
share their perspectives with their managers.
• 360-Degree Feedback: Some organizations use a 360-degree feedback
process, where feedback is collected from multiple sources, including peers,
subordinates, and supervisors.
• This provides a more comprehensive view of an employee’s performance.

organizations.
• Rating Scales: Many organizations use rating scales to evaluate various
aspects of employee performance, such as job knowledge, communication
skills, teamwork, and problem-solving abilities. These scales often use a
numerical or descriptive rating system.
• Goal Setting: Performance appraisals may involve setting specific,
measurable, achievable, relevant, and time-bound (SMART) goals for
employees. These goals serve as benchmarks for evaluating performance in
the following year.

organizations.
• Competency-Based Assessments: Some organizations assess employees
based on specific competencies or skills required for their roles. This
approach focuses on evaluating how well employees demonstrate key
behaviors and attributes.
• Training and Development Plans: Performance appraisals may also
include discussions about employees’ training and development needs.
Managers and employees collaborate to identify opportunities for skill
enhancement and career growth.

organizations.
• Reward and Recognition: High-performing employees may receive
rewards, bonuses, or recognition for their achievements during the
performance appraisal process. This can motivate employees to continue
performing well.
• Career Discussions: Performance appraisals often provide a platform for
discussing employees’ career aspirations and paths within the organization.
This can include opportunities for promotion or lateral moves.

organizations.
• Feedback and Coaching: Managers provide constructive feedback and
coaching to help employees improve their performance. This can include
discussing strengths, areas for development, and strategies for growth.
• Documentation: Performance appraisal discussions and outcomes are often
documented in written form. This documentation serves as a record of the
conversation and the agreed-upon action items.
• Performance Improvement Plans: In cases where performance falls below
expectations, organizations may develop performance improvement plans
that outline specific steps for improvement and a timeline for progress.

organizations.
• The effectiveness of performance appraisal practices in Nepalese
organizations varies.
• Some organizations have well-designed and implemented performance
appraisal systems that are effective in improving employee performance.
• However, other organizations have performance appraisal systems that are
poorly designed or implemented, and these systems are not effective in
achieving their intended goals.

organizations.
• There are a number of challenges to implementing effective performance
appraisal practices in Nepalese organizations. These challenges include:
• Lack of training for managers and supervisors on how to conduct
performance appraisals.
• Lack of trust between employees and managers.
• Fear of retaliation from managers.
• Lack of clarity about the purpose of performance appraisals.
• Lack of time to conduct performance appraisals.

organizations.
• Conclusion
• Performance appraisal is an important tool for organizations to use in managing
employee performance. However, it is important to ensure that performance
appraisal practices are well-designed and implemented in order to be effective.
• In Nepalese organizations, the most common performance appraisal practices are
traditional appraisal, 360-degree appraisal, self-assessment, and goal-setting. The
effectiveness of these practices varies depending on the organization and the way
they are implemented.

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