PERFORMANCE MANAGEMENT

IN MANAGING PEOPLE

Assoc. Prof. Dr. Hery Winoto Tj, S.E,. M.M., CPHR®

PERFOMANCE MANAGEMENT
Performance Management – is the continuous process of identifying,
measuring, and developing the performance of individuals and teams and
aligning their performance with the organization’s goals

Setting Expectations Goals and Objectives Goal Alignment

The process of Desired results each Process of ensuring

discussing what is employee aims to individual goals support
expected from an achieve, determined the achievement of
employee in terms of job based on conversations department goals and
roles and responsibilities between managers and department goals support
employees the achievement of
company goals

Feedback and
Assessment Performance Calibration
Development
Review of goals, Process in which Focus of the
objectives, supervisors and managers conversations between
and other factors, and at the same level in managers and employees
the determination of the an organization discuss staff in determining strengths,
level of successful performance ratings and opportunities for
outcomes to ensure ratings
achievement improvement, and how
and development messages
are applied.
to grow and develop
PERFORMANCE MANAGEMENT IMPORTANT

• Performance management
supplements the annual
performance review.
• To employees, continuous
performance management
indicates that managers value
them.
THE PERFORMANCE MANAGEMENT CYCLE

The performance management process or

cycle is a series of five key steps. These steps
are imperative, regardless of how often you
review employee performance.
• 1. Planning
• 2. Monitoring
• 3. Developing
• 4. Rating
• 5. Rewarding
COMPARING PERFORMANCE APPRAISAL AND
PERFORMANCE MANAGEMENT
• Performance Appraisal
– Evaluating an employee’s
current and/or past
performance relative to his or
her performance standarts

• Performance Management
– The process employers use to
make sure employees are
working toward organizational
goals.
EFFECTIVE PERFORMANCE MANAGEMENT

• A well-designed
performance
management strategy
• A culture of open and
effective communication
• Continuous monitoring
PRINCIPLES FOR EFFECTIVE PERFORMANCE
MANAGEMENT

Should be an ongoing process of setting expectations,

executing plans and evaluating results.

Expectations should be explicit and mutually understood.

Engagement is increased when people are involved in

planning the work.

How work gets accomplished is as important as what gets

accomplished.

Regular, honest feedback increases understanding and

positive performance.

7
PERFORMANCE MANAGEMENT PROCESS

Set company’s strategic goals

Assign goals to departments, teams, and individuals

Continiously assess goal attainment

Report goal attainment to management and to teams and individuals

Take corrective action as rekuired in real time

Some Problems

Conflicting purposes :
Judge/coach dillemma

Role of the Appraiser :

Competence, motivation,
value, promotion and
development

Appraiser Relationship :
Quality is key
CHARACTERISTICS OF GOOD OBJECTIVES
S= specific/testing – clear, unambiguous, understandable and challenging
M = measurable – in terms of quantity, quality, time or money
A= achievable – challenging but within the reach of a competent and committed
person
R= relevant – to organizational objectives so that they and the individual’s goals are
aligned
T= time-framed – to be completed within an agreed timescale
PERFORMANCE REVIEWS: KEY FEATURES

• Forward looking – not a post mortem

• Exchange of views (dialogue)
• Measurement
• Feedback
• Positive reinforcement
• Constructive
• Leads to an agreement
• Assessment
Integrative model of
organizational behavior Source:
Colquitt et al., 2015.
Performance management skills
DEVELOPING PERFORMANCE MANAGEMENT SKILLS

• Communication
• Briefing
• Self-development
• Training
• Coaching
• Mentoring
COACHING AS A PROCESS OF MANAGEMENT
Coaching as part of the normal process of management consists
of:
• Making people aware of how well they are performing by, for example,
asking them questions to establish the extent to which they have
thought through what they are doing.
• Controlled delegation – ensuring that individuals not only know what is
expected of them but also understand what they need to know and be
able to do to complete the task satisfactorily. This gives managers an
opportunity to provide guidance at the outset; guidance at a later stage
may be seen as interference.
• Using whatever situations may arise as opportunities to promote
learning.
• Encouraging people to look at higher-level problems and how they
would tackle them.
THE ‘GROW’ MODEL OF COACHING

• ‘G’ is for the goal of coaching, which needs to be

expressed in specific, measurable terms that represent
a meaningful step towards future development.
• ‘R’ is for the reality check – the process of gaining as
full a description of what the person being coached
needs to learn as possible.
• ‘O’ is for option generation – the identification of as
many solutions and actions as possible.
• ‘W’ is for wrapping up – when the coach ensures that
the individual being coached is committed to action.
Managing performance
IMPROVING INDIVIDUAL PERFORMANCE: SEVEN STEPS

Select the goal – establish priority areas for action

1

2 Define expectations – targets and standards

Define performance measures – the basis upon which progress to achieving

3 the goal can be monitored

4 Plan – the improvement programme

5 Act – implement the improvement programme

Monitor – review progress and analyse feedback to ensure the target or standard
6 is achieved

7 Extend the process – continue the development programme as required

DEALING WITH UNDER-PERFORMERS
1. Identify and agree the problem.
2. Establish the reason(s) for the shortfall, eg
where the individual:
– did not receive adequate support or
guidance from his/her manager;
– did not fully understand what he/she
was expected to do;
– could not do it – ability;
– did not know how to do it – skill;
– would not do it – attitude.
3. Decide and agree on the action required.
4. Resource the action.
5. Monitor and provide feedback.
Performance management – key considerations

• Performance management is about running

the business; it is what managers do – a
natural process of management.
• Success depends on what the organization is
and needs to be in its performance culture.
• It is the process that is important not the
system.
• Focus on development, not pay.
• Base on accepted principles but operate
flexibly.
• Effective communication, involvement and
training are essential.
REFERENSI
1. Amstrong, M. (2009). Amstrong’s Handbook of Human Resource Management Practice (11th ed). United States of America: Kogan
Page Limited.
2. Colquitt, J., A, LePine, & J. A., Wesson, M., J. (2015). Organizational Behavior (4th ed). McGrow-Hill Education, New York 10121
3. Desller, G. (2017). Human Resource Management (15thed.). Pearson Education Limited
4. Imperatori, B. (2017). Engagament and Disengagament at Work,. Switzerland: Springer Briefs in Business
5. Locke, E., A. (2009). Handbook of Principles of Organizational Behavior (2nd Ed.), John Wiley & Sons, Ltd
6. Robbins, S. P., & Judge, T. A. (2019). Organizational Behavior (18th ed.). Pearson Education Limited
7. Buku-buku lain yang relevan (sesuai dengan kondisi di Indonesia terutama topik Managing Conflct)
8. Journals --- related to of Human Resources, Human Capital, Performance Management, Management, etc.
THANK YOU