History of Performance Management

HISTORY OF PERFORMANCE MANAGEMENT
Presenting by: Sharath sasi Manjusha Sumeena Nithya Jyothi Midhula Kiran
Performance Management..
Performance Management may be defined as a planned and systematic approach to manage the performance of individuals ensuring their personnel development and contribution organizational goal
Antecedents
Imperial Rater - Koontz

- In 1971- china - To evaluate the performance of official family.
Formal Rating - For the members of the society of Jesus.

- Ignatius Loyola - Between 1491-1556s
Continued
First formal monitoring System
- by Frederick Taylor and his followers. - before 1st world war. Rating for officers - in the US armed services - in 1920 - spread to the UK.
- did the factory based US systems.
Continued
Merit Rating - in USA and UK
- in 1950 & 1960 - it rechristened performance appraisal. Management by objectives - in 1960 & 1970 - done with the critical incident technique and behaviorally anchored rating scale.
Continued
Result oriented performance appraisal
- in 1970 - existing now. Performance management - 1st used in 1970 - didn't become recognized process the later half of the 1980s.
until
Merit Rating and performance appraisal

WD
Scott an American Pioneer introduced rating of the abilities of workers in Industry prior to 1st World war. Man to man compensation scale was invented him by the influence of Taylor. Later it was known as WD Scott scale and it was used to rate the efficiency of US Army officers. It was removed the seniority system & introduced an era of merit based promotion.
Continued
By 1920 it was termed as graphic rating scale
which was used for the rating of managers and supervisors. Performance appraisal was flourished .
ATTACKS ON MERIT RATIN AND PERFORMANCE APPRAISAL
Attacks
on merit rating was mounted by McGregor He suggested that the emphasis should be shifted from appraisal to analysis PM should be the analysis of the behavior and not the assessment of personality
Another attack was mounted by Rowe. He concluded that Appraisers are reluctant to appraise The follow up was inadequate No attempt should be made to clarify or categories performance in terms of goals
The attack on merit rating was based on the assessment of traits but it is independent on the situations and the people with whom an individual is interacting
Management by objectives.
Peter F Drucker 1955 He emphasized that an effective Management must direct the vision and effort of all managers towards a common goal'
Continued.
McGregor's contribution from Theory Y - In 1960.. - The central principle he derived from theory y is integration: - This principle of management by integration and self control which he emphasized should be regarded as a strategy or a way of managing people.
The MBO System..
Defined John Humble 1972 a dynamic system which integrate the companys need to clarify and achieve its goals for profits and growth with managers need to contribute and develop himself It is a demanding and rewarding style of managing a business
Continued.
He described MBO as a continuous process of reviewing and restarting of clarifying the key result providing conditions Measure and discuss the progress towards the result Developing management training plans Increasing the motivation of
Criticisms of MBO
Levinson in 1970 Schaffer in 1991 Fowler
CRITICAL INCIDENT TECHNIQUE

Developed Developed Critical
in the year 1954 by Flanagan
incident ?? An exceptional behavior of an employee at work.
Flanagan advocated that

Managers
should keep record of
behaviors Managers should maintain a specially designed book for recording the behavior These must be used as evidence of actual behavior during review meetings
disadvantages
Black
book Time consuming Presence of critical incident Identification of critical behavior Conversion of incident reports into overall rating
BEHAVIOURALLY ANCHORED RATING SCALES
Behaviourally anchored rating scales are designed to reduce the rating errors , which are typical of conventional scales
MANAGERS RATE EACH DIMENSION ON A SCALE, AS IN THE FOLLOWING EXAMPLE

Continually
contributes new ideas and suggestions Take a leading role in group meetings but is tolerant and supportive of colleagues and respects other peoples point of views Listens to colleagues and keeps them reasonably well informed about own activities
Generally receptive to other peoples ideas and willing to change own plans to fit in Not very interested in what others are doing or in keeping them informed Goes own way, completely ignoring the wishes of other team members and taking no interest in the achievement of team objectives
The Environmental Context of Performance Management
The business environment exercises both a direct and an indirect influence on the conduct of performance assessment. Whereas legislation has specific consequences, particularly in the USA, most environmental factors have a diffuse and often unrealized effect on assessment and pay structures. It is likely that different individuals - and organizations - will respond in varying ways to these factors. Some will be highly sensitive to possible legal implications, practice elsewhere, and the state of the job market; others will be virtually immune to these influences. The main environmental factors identified as having a contextual influence on performance management Legislation:- The employment relationship between workers and employing organizations is seen as a contractual matter. This relationship is expressed in formal or legalistic statements of obligation between the two, such as written employment contracts, job descriptions and performance objectives. Performance measurement has the purpose of ensuring that the employee fulfils the contract.
Business culture
Cultural norms dictate 'acceptable' standards of performance and the management methods by which they are assured. For example, in a number of Asian societies, the employment relationship is a matter of honour, and obligations are regarded as morally, rather than contractually, binding between the two parties. In a situation where people are automatically expected to do the job as agreed, the role of performance assessment is questionable.
Achievers and non-achievers
Several researchers have attempted to identify the important factors leading to successful performance by comparing recognized high achievers with average performers.The consistent themes such as: perseverance, ability, contacts (through networking), self-reliance, thinking big and good time management.

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HISTORY OF PERFORMANCE MANAGEMENT

Imperial Rater - Koontz

Formal Rating - For the members of the society of Jesus.

Merit Rating - in USA and UK

Merit Rating and performance appraisal

ATTACKS ON MERIT RATIN AND PERFORMANCE APPRAISAL

The MBO System..

CRITICAL INCIDENT TECHNIQUE

in the year 1954 by Flanagan

incident ?? An exceptional behavior of an employee at work.

Flanagan advocated that

should keep record of

BEHAVIOURALLY ANCHORED RATING SCALES

MANAGERS RATE EACH DIMENSION ON A SCALE, AS IN THE FOLLOWING EXAMPLE

The Environmental Context of Performance Management

Achievers and non-achievers

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