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Performance management 1

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IMCOST
IMCOST

Performance management is a strategic process that improves employee performance by aligning individual objectives with organizational goals. It involves continuous feedback, development of skills and capabilities, and rewarding employees for achieving targets. The key aspects of performance management are establishing performance standards, measuring and reviewing performance, providing feedback, and developing employees.

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Performance Management
What Is Performance? Performance means both behaviours and results When managing performance both inputs (behaviour) and outputs (results) need to be considered This is called the ‘Mixed Model’
What is Performance Management?
Performance management is: ‘The development of individuals with competence and commitment, working towards the achievement of shared meaningful objectives within an organization which supports and encourages their achievement’. Performance management is: the process of ‘Directing and supporting employees to work as effectively and efficiently as possible in line with the needs of the organization’ (Walters, 3).
‘ Performance management is a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors’ (Armstrong and Baron, 4).
to establish a high performance culture to focus people on doing the right things To align individual objectives to organizational objectives to develop the capacity of people to meet and exceed expectations Empowering, motivating and rewarding employees to do their best
Characteristics of Performance Management continuous and flexible process the primary elements are agreement, measurement, feedback, positive reinforcement and dialogue. based on the principle of management by contract and agreement rather than management by command focuses on future performance planning
Concern with outputs, outcomes, process and inputs. Concern with planning. Concern with measurement and review. Concern with continuous improvement.
Concern with continuous development. Concern for communication. Concern for stakeholders. Concern for fairness and transparency.
Few Concepts The meaning of alignment Managing expectations Discretionary behaviour Performance Agreement
Performance Planning Development Planning Input Output measures Outcome Measures
Process Of Performance Management
The Management Cycle
PM Cycle
Performance Management Sequence
 
 
Performance Management in Action At Halifax Bank of Scotland Retail (HBOS)
Essence Of performance Management Aim Principles Key phrase - ‘Unleashing the performance of our people’ Performance Matrix
 
Performance Management in Action At Standard Chartered Bank
 
PERFORMANCE MANAGEMENT AND NON-FINANCIAL REWARDS Performance management and recognition Performance management and the provision of opportunities to achieve Performance management and skills development Performance management and career planning Performance management and job engagement Performance management and commitment
Performance Mgt Roles Top Managers Line Managers Employees HR specialists
Top Managers Communicate a clear sense of mission Clear line of sight Expectations are defined Everyone is kept informed of progress
Line Managers Bring policies to life.
Employees Top to bottom Pay and future is affected
HR role Helping employees to develop skills Creates mentors and coaches. Conduct surveys Training events
PM Development programme Stage 1: Decide on the business case for introducing performance Management Stage 2: Determine objectives and guiding principles for performance management Stage 3: Get the commitment and active participation of top management and line managers Stage 4: Draw up guiding principles on how performance management should work Stage 5: Define performance management processes and documentation Stage 6: Pilot-test Stage 7: Communicate Stage 8: Plan arrangements for training in performance Management Stage 9: Implement Stage 10: Evaluate
Evaluating performance management
Evaluating performance management Performance agreement Objectives Feedback Review Motivation Development Ratings Performance Related pay Documentation Training
Performance Appraisal Performance appraisal is a method of acquiring and processing the information needed to improve an individual employee’s performance and accomplishments.
Objectives Of Performance appraisal   To judge the gap between the actual and the desired performance   Helps to strengthen the relationship and communication   To diagnose the strengths and weaknesses of the individuals   To provide feedback to the employees regarding their past performance. To determine who needs what training, and who will be promoted, demoted, retained, or fired. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.
Purpose
Administrative purposes Working conditions Promotions Termination Rewards Developmental purposes Improving Performance Strengthening job skills Providing feedback Counseling Training
Setting Performance standards Taking corrective standards Comparing standards Communication standards Measuring standards Discussing result
Challenges Of Performance Appraisal Determining the evaluation criteria Create a rating instrument Lack of competence Errors in rating & evaluation Resistance
Methods of Performance Appraisal Past Oriented Methods Checklist Forced Distribution Rating Scales Field review Paired-comparison Method Straight Ranking Method
Modern Methods of Performance Appraisal Assessment Centre Behaviorally Anchored Rating Human Resource Accounting Method 360 – Degree- Performance- Appraisal Method Management by Objectives (MBO)Method
Assessment Centre
Behaviorally Anchored Rating
Human Resource Accounting Method
360 – Degree- Performance- Appraisal Method
Management by Objectives (MBO)Method
Measuring performance at different levels For top level management Degree of organizational growth and expansion Extent of achievement of organizational goals Contribution towards the society Profitability and return on capital employed
Measuring performance at different levels For middle level managers Performance of the departments or teams Co-ordination with other departments Optimal use of resources Costs Vs. revenues for a given period of time The communication with superiors and subordinates
Measuring performance at different levels For front line supervisors Quantity of actual output against the targets   Quality of output against the targets Number of accidents in a given period Rate of employee absenteeism
Performance Appraisal as Employee Motivation Mechanism Inaccurate performance Review Increase in salary Deceased Motivation Performance Review No increase in salary Deceased Motivation Accurate Performance Review Increase in salary Motivation
Difference Between Performance Management & Performance Appraisal
Performance management Performance appraisal Joint Process through dialogue Continuous review with on or more formal interview Ratings less common Flexible Process Top Down Assessment Annual appraisal meeting Use Of ratings Monolithic process
Performance management Performance appraisal Focus On values & Behaviours as well as processes Less likely to be a direct link to pay Documentation Kept to a minimum Owned by Line Managers Focus On quantified Objectives Often linked to pay Bureaucratic-Complex paper work Owned by HR department
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Performance management 1

  • 2. What Is Performance? Performance means both behaviours and results When managing performance both inputs (behaviour) and outputs (results) need to be considered This is called the ‘Mixed Model’
  • 3. What is Performance Management?
  • 4. Performance management is: ‘The development of individuals with competence and commitment, working towards the achievement of shared meaningful objectives within an organization which supports and encourages their achievement’. Performance management is: the process of ‘Directing and supporting employees to work as effectively and efficiently as possible in line with the needs of the organization’ (Walters, 3).
  • 5. ‘ Performance management is a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors’ (Armstrong and Baron, 4).
  • 6. to establish a high performance culture to focus people on doing the right things To align individual objectives to organizational objectives to develop the capacity of people to meet and exceed expectations Empowering, motivating and rewarding employees to do their best
  • 7. Characteristics of Performance Management continuous and flexible process the primary elements are agreement, measurement, feedback, positive reinforcement and dialogue. based on the principle of management by contract and agreement rather than management by command focuses on future performance planning
  • 8. Concern with outputs, outcomes, process and inputs. Concern with planning. Concern with measurement and review. Concern with continuous improvement.
  • 9. Concern with continuous development. Concern for communication. Concern for stakeholders. Concern for fairness and transparency.
  • 10. Few Concepts The meaning of alignment Managing expectations Discretionary behaviour Performance Agreement
  • 11. Performance Planning Development Planning Input Output measures Outcome Measures
  • 16.  
  • 17.  
  • 18. Performance Management in Action At Halifax Bank of Scotland Retail (HBOS)
  • 19. Essence Of performance Management Aim Principles Key phrase - ‘Unleashing the performance of our people’ Performance Matrix
  • 20.  
  • 21. Performance Management in Action At Standard Chartered Bank
  • 22.  
  • 23. PERFORMANCE MANAGEMENT AND NON-FINANCIAL REWARDS Performance management and recognition Performance management and the provision of opportunities to achieve Performance management and skills development Performance management and career planning Performance management and job engagement Performance management and commitment
  • 24. Performance Mgt Roles Top Managers Line Managers Employees HR specialists
  • 25. Top Managers Communicate a clear sense of mission Clear line of sight Expectations are defined Everyone is kept informed of progress
  • 26. Line Managers Bring policies to life.
  • 27. Employees Top to bottom Pay and future is affected
  • 28. HR role Helping employees to develop skills Creates mentors and coaches. Conduct surveys Training events
  • 29. PM Development programme Stage 1: Decide on the business case for introducing performance Management Stage 2: Determine objectives and guiding principles for performance management Stage 3: Get the commitment and active participation of top management and line managers Stage 4: Draw up guiding principles on how performance management should work Stage 5: Define performance management processes and documentation Stage 6: Pilot-test Stage 7: Communicate Stage 8: Plan arrangements for training in performance Management Stage 9: Implement Stage 10: Evaluate
  • 31. Evaluating performance management Performance agreement Objectives Feedback Review Motivation Development Ratings Performance Related pay Documentation Training
  • 32. Performance Appraisal Performance appraisal is a method of acquiring and processing the information needed to improve an individual employee’s performance and accomplishments.
  • 33. Objectives Of Performance appraisal   To judge the gap between the actual and the desired performance   Helps to strengthen the relationship and communication   To diagnose the strengths and weaknesses of the individuals   To provide feedback to the employees regarding their past performance. To determine who needs what training, and who will be promoted, demoted, retained, or fired. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.
  • 35. Administrative purposes Working conditions Promotions Termination Rewards Developmental purposes Improving Performance Strengthening job skills Providing feedback Counseling Training
  • 36. Setting Performance standards Taking corrective standards Comparing standards Communication standards Measuring standards Discussing result
  • 37. Challenges Of Performance Appraisal Determining the evaluation criteria Create a rating instrument Lack of competence Errors in rating & evaluation Resistance
  • 38. Methods of Performance Appraisal Past Oriented Methods Checklist Forced Distribution Rating Scales Field review Paired-comparison Method Straight Ranking Method
  • 39. Modern Methods of Performance Appraisal Assessment Centre Behaviorally Anchored Rating Human Resource Accounting Method 360 – Degree- Performance- Appraisal Method Management by Objectives (MBO)Method
  • 43. 360 – Degree- Performance- Appraisal Method
  • 45. Measuring performance at different levels For top level management Degree of organizational growth and expansion Extent of achievement of organizational goals Contribution towards the society Profitability and return on capital employed
  • 46. Measuring performance at different levels For middle level managers Performance of the departments or teams Co-ordination with other departments Optimal use of resources Costs Vs. revenues for a given period of time The communication with superiors and subordinates
  • 47. Measuring performance at different levels For front line supervisors Quantity of actual output against the targets   Quality of output against the targets Number of accidents in a given period Rate of employee absenteeism
  • 48. Performance Appraisal as Employee Motivation Mechanism Inaccurate performance Review Increase in salary Deceased Motivation Performance Review No increase in salary Deceased Motivation Accurate Performance Review Increase in salary Motivation
  • 49. Difference Between Performance Management & Performance Appraisal
  • 50. Performance management Performance appraisal Joint Process through dialogue Continuous review with on or more formal interview Ratings less common Flexible Process Top Down Assessment Annual appraisal meeting Use Of ratings Monolithic process
  • 51. Performance management Performance appraisal Focus On values & Behaviours as well as processes Less likely to be a direct link to pay Documentation Kept to a minimum Owned by Line Managers Focus On quantified Objectives Often linked to pay Bureaucratic-Complex paper work Owned by HR department