INTRODUCTION IN HRM

MODULE 3
PERFORMANCE MANAGEMENT

Presented By
p2p for corporate training and consulting
services.

Dr. Nirvana Azab

Professional Trainer
WELCOME
ECP
WHAT DID WE TAKE
LAST SESSION ?
What do you
expect today ?

ECP
 Recruitment & selection

Performance Management
 - A process which continuously
identifies, measures and
develops the performance of
the workforce in the
organization
-Each individual’s
Performance Management performance and objectives
are connected with the
Concept overall mission and goals of
the Company.

7
The two key elements of performance management

Continuous Link to
process mission and
goals

In performance management, the managers try to figure out, the existing performance
level of the employees and works on improving that level. It is a systematic assessment of
the performance of an employee and using the assessment to better the performance over
time.
Does Performance Management concern about the past or the future?

9
Performance Management concerns about …..

The Current
Performance THE
PM Performance
Gap
The Desired
Performance

10
Performance Management
 What is Performance Management System….

12
 The systematic approach to
measure the performance
of employees. It is a process
through which the
organization aligns their
mission, goals and
Performance objectives with available
Management System resources (e.g. Manpower,
material etc), systems and
set the priorities.

13
 Strategic Planning

Communicating &
Managing Business Linking
Performance
Budgeting

Performance

PMS
Measures
Performance
Task Performance
Management System
Managing Job Contextual
Performance Performance
Performance
14 Process
 What is the purpose of
implementing performance
management system?
 The Purpose PMS

Managing employee’s performance

is the key objective of establishing
systematic Performance
Management system in an
organization. These process servers’
six main purposes in the company:

16
The Purpose PMS
1- Strategic
Performance managed system is a tool which should be align with overall
organization goal followed through department goal and individual
goals. In other words, the organizational strategic goals should be linked
with each activity performed by every department or employee.

2- Administrative
set the deciding factor of employee’s promotion, demotion, salary increment,
transfer and terminations. It enables to identify the performers, non-
performers or under performer employees in an organization.
17
The Purpose PMS
3- Communication
It is the effective communication channel to inform employees about their
goals, job responsibilities, key deliverables and performance standards.
structure method to indicate the key areas of improvement required by
the employee in order to improvise his performance.
4- Developmental
the structure method of communicating the positive feedbacks, improvement
areas, and development plans. The manager can use various methods like
training, mentoring, coaching etc. and them their team members to perform
better.
18
The Purpose PMS
5- Organizational Maintenance
the yardstick of measuring employee, department and organization
achievements and evaluating the performance gaps through various
tools and techniques. Hence, it maintains the health of the organization
and its performance standards.
6- Documentation
reviews, feedback and forms should be documented and maintained
periodically by every organization. It would enable them to look forward,
set new targets, design developmental needs, design training and learning
programmes, and career progression of employee and for department.
19
 Strategic
The Purpose PMS
Administrative Communication

Documentation Developmental

Organizational
Maintenance

20
Performance management process

21
Performance management process

Performance Performance Performance Performance

Planning Monitoring Appraisal Development

22
 Performance Planning

- formal structured process

- The performance expected of an employee
- Decided collaboratively between departments
- They together determine the performance expectations and
development objectives to be accomplished during the review period.
23
Performance Planning

Performance Standard
Management By Objectives(MBO)
Goals Setting

24
 MBO

25
 Goals Setting

26
Performance Monitoring

Performance monitoring
is the second phase of
an effective
performance
management process.

28
 Positive
Reinforcing Effective Behaviors Reinforcement

Negative
Reinforcement
Reinforcing
Effective
Punishment

Extinction

29
30
Performance
management
vs. Performance
appraisal
 - the set of activities and tasks that make sure
that the employees meet their goals on time.
- The goals need to be aligned with the
PM objectives of the organization.
- Performance management ensures the
efficiency and effectiveness of the
performance of the employees when the goals
are reached.
- it analyzes employee performance keeping in
mind the development needs of the employee
& organization.
PA

- is the evaluation of an employee’s performance. -

Feedback forms are given to the employee.
- After the employee has given self-feedback, the
manager gives a final review.
- deals with the evaluation of an employee’s
competencies .
- In another meaning : PA is a part of PM.
34
Process of Performance Appraisal

Conducting Setting Measuring Discussing Decision

Performance The Actual
JD Standers Performance Results Making

35
Performance measures

Financial Internal
Process
Measures Measures

Customers Learning &

Growth
Measures Measures
36
Employee disciplinary procedure

37
Problems of Performance Appraisal

1. Distributive Justice / Fairness

2- Procedural Justice / Fairness
3- Interactional Justice / Fairness
4-Informational Justice / Fairness

38
Performance Development
Performance development is a broad term that includes performance
management and employee development. It describes both
managing/assessing the work that needs to be done.

39
Performance Improvement Plans (PIPs)
designed to correct poor performance and put the individual on
a path toward success.

40
Individual Development Plans (IDPs)
It’s a two-way commitment between an employee and their
manager on what they are going to do to grow.

41
What Did We take today?
 Session Appraisal
“ ” “ ”
Like Would Prefer

“ ”
Didn’t Like

4
THANK YOU
Jens Martensson

+1 23 987 6554
[email protected]

http://www.fabrikam.com/