Performance Management Notes
Performance Management Notes
PERFORMANCE MANAGEMENT
Importance of performance management
ROLE OF PERFORMANCE IN ORGANIZATION
ROLE OF APPRAISAL IN PERFORMANCE MANAGEMENT
• Supervisor
. - Usually do the actual appraising
- Must know how to conduct the Appraisal fairly
- Must be familiar with basic appraisal formatting
• HR Department
- Serves a policy making and Advisory role
- Prepare forms and procedures And insist that all Department use them
- Appraisal based on their skills
PROCESS OF PERFORMANCE MANAGEMENT
Relevance of objective in organization
The major objectives of performance management that you should consider when establishing, or reformatting,
your performance management system:
1. Setting and Defining Goals
• Setting and defining clear goals yields several key benefits, including:
• Allowing employees to focus on what’s important.
• Aligning individual objectives with business objectives.
• Optimizing employees’ individual performance.
• Identifying the key result areas and work upon improving them.
2. Setting Expectations for Managers and Employees
In order to Set expectations that yield solid results, try to follow this succession of stages for expectation
setting:
• Define the expectations in clear terms. Let your employees know exactly what is expected from them and
provide clarification when needed.
• Explain how the expectations established will help in fulfilling the overall business objectives; draw the
line of sight between their contribution and the business achieving those objectives.
• Document the expectations. Establish a process that clearly defines and measures what to do and who is
responsible for each task.
3. Setting Performance Standards
Every role in a company has a certain performance standard that comes along with it, and a failure to
accomplish performance standards can mean the following for your business:
• Setting even more unrealistic standards for the job that is failing to reach its existing standards.
• Not having enough resources to complete the new demands.
• A failure of cooperation or collaboration from the team and manager.
• A lack of effort on the employees’ part.
4. Establishing Effective Communication
• Performance reviews give both the company and your employees important
feedback.
• Acknowledgement and constructive criticism helps motivate people to improve.
• Target training and development
• Encourage engagement
• Spot talent
PERFORMANCE APPRAISAL
Definition
Performance Appraisal Definition is given by Edwin B Flippo – “Performance Appraisal is a systematic,
periodic and so far as humanly possible, an impartial rating of an employee’s excellence in matters pertaining to
his present job and to his potentialities for a better job.”
Meaning
• Performance Appraisal is a way to evaluate the performance of an employee and it is also edited as a
complete process document.
• Performance Appraisal is done on a regular basis, there is a regular review of employee performance in an
organization in Performance Appraisal.
• Performance Appraisal is also known as a performance review, employee evaluation.
• Generally, its performance is evaluated by the staff’s manager.
APPRAISAL FACTORS
Rater biases are conscious or unconscious tendencies that affect how supervisors rate their employees.
Ideally, ratings are based on actual performance and the ratings themselves are accurate reflections of that
performance.
Control of Rater Bias and Error
• Two approaches have been developed to control and eliminate rater bias and error. One approach is to
design better performance appraisal forms that will be resistant to these problems.
• The other is to train raters to avoid rating errors.
Rater Training to Reduce Errors
• The objective of Rater Error Training is to familiarize raters with rater errors and to teach them to avoid
these rating patterns.
• In other words, the raters might reduce the number of halo and leniency patterns in their ratings, but
those ratings are less accurate in reflecting the true levels of performance.
OBJECTIVE OF PERFORMANCE REVIEW DISCUSSION
ROLE OF MENTORING
“Performance Management
System is the key driving force to
employee’s productivity,
development, rewards and
awards”
Objective of PMS
• The first and the foremost responsibility of HR team is to design the entire
appraisal process.
• The criterion of performance appraisal needs to be very clear and transparent.
• The HR team also needs to sit with the reviewing authorities to ensure appraisals
are done on time and only the deserving employees get the benefits.
• It is the human resource team’s responsibility to ensure a smooth implementation
of the appraisal process.
Issues in performance appraisals
Team performance management