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Introduction to
Performance Management
 Definition of performance & PM
 Characteristics of an ideal PM systems
 Aims and role of PM
 PM process
 PM & HR
 Strategic planning in PM
 Be treated fairly and
consistently
 Job/career enrichment
opportunities
 Clear expectations
 Positive/constructive
feedback on a regular basis
 Involvement in goal setting
 Economic reward
 To reach organizational
mission and goals
 Encourage and reward
behaviors aligned with
organizational mission and
goals
 Curb or redirect non-
productive activities
 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.
What are Performance
Standards?
Performance Standards are the benchmark against
which performance is measured.
 “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
 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.
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
 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
 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.
 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
 Strategic congruence
 Thoroughness
 Practicality
 Meaningfulness
 Specificity
 Reliability
 Validity
 Acceptability
 Inclusiveness
 Openness
 Correctability
 Standardization
 Ethicality
 Identification of
effective & ineffective
performance
 The information collected by a PM system is
most frequently used for
1. Salary administration
2. Performance feedback
3. Identification of employee strengths &
weakness
 Strategic purpose
 Administrative purpose
 Informational
 Developmental
 Organizational maintenance
 Documentational
 Increased turnover
 Use of misleading information
 Wasted time & money
 Lowered self esteem
 Damaged relationships
 Decreased motivation to perform
 Employee job burnout & dissatisfaction
 Increased risk of litigation
 Unjustified demands on managers &
employees resources
 Varying & unfair stds & ratings
 Emerging biases
 Unclear rating systems
Prerequisites
Performance Planning
Performance Execution
PerformanceAssessment
Performance Review
Performance Renewal &
Re-contracting
PM
PM
PM
PM
PM
PM
 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)
 Employees should have a through knowledge
of the PM System.
 Planning discussion includes :
1. Results
2. Behaviours
3. Developmental issues
 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
 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.
 Review stage involves meeting between
employees & the manager.
 This meeting is calledAppraisal Meeting.
 Review meeting helps employee and
manager to design developmental plans.
 Its identical to planning stage.
 Manager uses the insights & information
gained from other phases to reset
performance goals for employees

More Related Content

Performance management

  • 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.
  • 6. What are Performance Standards? Performance Standards are the benchmark against which performance is measured.
  • 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
  • 13.  Strategic congruence  Thoroughness  Practicality  Meaningfulness  Specificity  Reliability  Validity  Acceptability  Inclusiveness  Openness  Correctability  Standardization  Ethicality  Identification of effective & ineffective performance
  • 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
  • 15.  Strategic purpose  Administrative purpose  Informational  Developmental  Organizational maintenance  Documentational
  • 16.  Increased turnover  Use of misleading information  Wasted time & money  Lowered self esteem  Damaged relationships  Decreased motivation to perform  Employee job burnout & dissatisfaction
  • 17.  Increased risk of litigation  Unjustified demands on managers & employees resources  Varying & unfair stds & ratings  Emerging biases  Unclear rating systems
  • 18. Prerequisites Performance Planning Performance Execution PerformanceAssessment Performance Review Performance Renewal & Re-contracting PM PM PM PM PM PM
  • 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