Performance management is defined as an ongoing, iterative process that includes goal setting, communication, observation, and evaluation to support organizational success. It aims to align employee performance with organizational strategic goals. Key aspects of performance management include planning performance goals, executing work, assessing performance, reviewing performance, and renewing goals. The information gathered through performance management is used for salary administration, performance feedback, and identifying employee strengths and weaknesses.
2. Definition of performance & PM
Characteristics of an ideal PM systems
Aims and role of PM
PM process
PM & HR
Strategic planning in PM
3. Be treated fairly and
consistently
Job/career enrichment
opportunities
Clear expectations
Positive/constructive
feedback on a regular basis
Involvement in goal setting
Economic reward
4. To reach organizational
mission and goals
Encourage and reward
behaviors aligned with
organizational mission and
goals
Curb or redirect non-
productive activities
5. The action or process of carrying out or
accomplishing an action, task, or function can
be termed as performance.
Performance management includes the
processes used to manage corporate
performance, the methodologies that drive
some of the processes and the metrics used
to measure performance against strategic
and operational performance goals.
7. “It is a continuous process of identifying,
measuring and developing the performance
of individuals and teams and aligning
performance with the strategic goals of the
organization”.
PM contains two major components:
1. It’s a continuous process
2. Alignment with strategic goals
8. Performance management (PM) includes
activities that ensure that goals are
consistently being met in an effective and
efficient manner.
Performance management focuses on the
performance of an organization, a
department, employee, or even the
processes to build a product or service or any
other areas in an organization.
9. An iterative process of goal-setting, communication, observation and
evaluation to support, retain and develop exceptional employees for
organizational success.
PM
Set
Goals
Commu
nicate
Observe
Evaluate
10. It serves the strategic purpose of the org.
Provide information for reward system
Facilitates HR decisions
Enabling employees to learn about their
performance as against org expectations
It serves as a developmental purpose
Serves org maintenance purpose
Support HR decision to meet legal
requirements
11. Both are different concepts.
PM is a broader term & includes appraisal as a
part of the performance system.
Performance appraisal is the systematic
description of an employee’s strengths and
weakness.
Thus, performance appraisal is an important
component of performance management.
12. Motivation to perform is increased
Increases self esteem
Managers gain insight about subordinates
Jobs are simplified
Organizational goals are clear
Employees become more competent
Differentiation b/n good & poor performance
Performances are communicated
Change can be possible
14. The information collected by a PM system is
most frequently used for
1. Salary administration
2. Performance feedback
3. Identification of employee strengths &
weakness
19. Two important prerequisites before PM
system are:
1. Knowledge of the org’s mission & strategic
goals
2. Knowledge of the job in question (this is
done through job analysis)
20. Employees should have a through knowledge
of the PM System.
Planning discussion includes :
1. Results
2. Behaviours
3. Developmental issues
21. At the execution stage, following factors
must be considered:
1. Commitment to goal achievement
2. Ongoing performance feedback & coaching
3. Communication
4. Collecting & sharing performance data
5. Preparing for performance reviews
22. It is important for employee as well as the
managers to take ownership of assessment
process.
It helps the org to use the information
obtained in a productive manner for the
future requirements.
Inclusion of self appraisal is also beneficial in
all manner.
23. Review stage involves meeting between
employees & the manager.
This meeting is calledAppraisal Meeting.
Review meeting helps employee and
manager to design developmental plans.
24. Its identical to planning stage.
Manager uses the insights & information
gained from other phases to reset
performance goals for employees