PERFORMANCE

MANAGEMENT AND Prof Venkatesh Naga

APPRAISAL
PLACEMENT BYTES
 How to convert PPO/PPI internship
 Understand the context/needs of the organization
 Take feedback from seniors who have done & converted
 Identify the alums and connect with them
 make it a point to meet alum once in 10 days
 demonstrate initiative taking ability
 Be profession

2
RECRUITMENT &
SELECTION REVIEW
1. What is RLC
2. What is Recruitment Channel
3. How does Mobile recruitment impact Recruitment Process
4. Candidate experience (CX) ?
5. Who is responsible for CX
6. How to track & enhance CX
7. CSAT & MSAT ?
8. Recruitment effectiveness metrics
9. How does gamification help hiring process
10. What is the difference between stress and probing interview

©SHRM 2009 3
GOOGLE CASE STUDY –
DISCUSSION
Adobe Acrobat
Document
How is the hiring strategy of Google ?
How did Google leverage Technology in Hiring ?
What is USP of Google Hiring process & Process rigor?
Comment on guidelines given to hiring managers for hiring for
their teams
How is culture fitment of candidates taken care of  ?
How does the success profile of Google look like ?
Review candidate feedback on Google Hiring process on
Glassdoor/Facebook and sum up your finding in 5 words
 

4
LEARNING OBJECTIVES
At the end of this session, students will:
 Learn how organization’s business strategy & culture can impact
Performance Management.
 Learn about PM Cycle and role of HR & Line Managers in PM
 Learn about performance theories
 Learn about SMART Goal setting
 Learn about Performance Feedback Method
 Appreciate how rewards can impact employee and organizational
performance ( Xiaomi culture )

5
LEARNING TEASER

Microsoft Word
Document

6
EMPLOYEE
PERFORMANCE –
FACTORS ?

7
EMPLOYEE
PERFORMANCE – THEORY

©SHRM 2009 8
VROOM’S EXPECTANCY
THEORY

9
©SHRM 2009 10
PM - ?

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PM – WHAT IS IT ?

12
PM – EVOLUTION ?

13
PM SYSTEM – OVERVIEW
& COMPONENTS

14
Performance Management Cycle &
Steps

15
BENEFITS OF PM

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17
MANAGING EMP PERF –
BELL CURVE

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ORGANIZATION STRATEGY
& PERFORMANCE
MANAGEMENT SYSTEMS
(PMS) - LINKAGE
Infosys links salaries of key executives to digital revenue
Starting this financial year, the variable pay of the top six Infosys employees will
be based on digital revenue growth, in addition to overall revenue and profitability
 Bengaluru: Infosys Ltd has, for the first time, linked incentives of six of its top
employees to how much revenue the company generates from digital
technologies, underscoring how aggressively chief executive officer Salil Parekh
is pursuing growth from newer and more profitable offerings.
This is also the first time that any large information technology services company
has linked a part of the variable component of salaries of top managers to
digital revenue growth. Starting this financial year, the variable pay of the six
Infosys employees will be based on digital revenue growth, in addition to overall
revenue and profitability, Infosys said in a filing to the US Securities and
Exchange Commission

19
EMPLOYEE
PERFORMANCE –
FACTORS ?

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©SHRM 2009 21
PM – VALUE HIERARCHY

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PM – CONTINUOUS
FEEDBACK

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ORG STRATEGY &
PERFORMANCE – LINKAGE

©SHRM 2009 24
WHAT IS A BALANCED
SCORECARD?
A Measurement
System?

A Management
System?

A Management
Philosophy?
 TRANSLATING VISION AND
STRATEGY: FOUR
PERSPECTIVES
FINANCIAL
“To succeed Objectives Measures Targets Initiatives
financially,
how should
we appear to
our
shareholders?
”

CUSTOMER INTERNAL BUSINESS PROCESS

“To achieve Objectives Measures Targets Initiatives “To satisfy our Objectives Measures Targets Initiatives
our vision,
how should
Vision and shareholders
and
we appear to Strategy customers,
our what business
customers?” processes
must we excel
at?”

LEARNING AND GROWTH

“To achieve Objectives Measures Targets Initiatives
our vision,
how will we
sustain our
ability to
change and
improve?”
PM VS AGILE PM

27
CASELET

Case Questions
•What went wrong in this case?
•Comment about the Performance Cycle /system followed?
•What are the roles of Aditya Vs Sameer?
•Does HR have a role in this case and if yes how?
•If you were to be Sameer, how would you handle Aditya’s Performance
Cycle?
•Create a Performance Goal sheet for Sameer using BSC format?
•Team to prepare for a role play for the Performance Feedback
discussion between Sameer & Aditya

28
LEARNING ACTIVITY

©SHRM 2009 29
WARM UP DISCUSSION
 https://economictimes.indiatimes.com/small-
biz/startups/newsbuzz/flipkart-delivers-100m-esops-to-a-chosen-
few/articleshow/69260754.cms
 How is this linked to Perf Mgmt ?
 What are ESOPs ?
Agile Feedback & Rewards
https://economictimes.indiatimes.com/tech/ites/capgemini-india-
accelerates-promotions-gives-handsome-
increments/articleshow/70990633.cms?
utm_source=ETTopNews&utm_medium=HPTN&utm_campaign=AL1&
utm_content=23

30
WARM-UP

 PMS – is it relevant or redundant and why ?

 What are the key challenges in PMS and how to
overcome them ?
 How does PMS help ?
 Stakeholders
 Organization
 Manager’s
 Employees

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PERFORMANCE &
REWARDS – STRATEGY
Major apparel manufacturer now offers people three elements of
remuneration. Each element is based on a different set of criteria:
Increases in base pay reflect an employee’s alignment and
growth in core values; bonus amounts are entirely tied to the
achievement of specific goals, and incentives and long-term
stock options are awarded based on leadership activities and
360° feedback. This flexible system empowers employees to
decide if they want to focus on core teamwork, achieve stretch
goals, or move into leadership roles.
Or consider a European consulting firm that gives new
employees a range of rewards options when they accept an
employment offer. The new hire can choose salary or stock
options; an extra week of vacation or higher pay; and a higher
bonus based on results or a more modest increase in base pay.
 THE BALANCED SCORECARD
FOCUSES ON FACTORS THAT
CREATE LONG-TERM VALUE
Traditional financial reports look backward
 Reflect only the past: spending incurred and revenues earned
 Do not measure creation or destruction of future economic value

The Balanced Scorecard identifies the factors that create long-term economic value in an
organization, for example:
 Customer Focus: satisfy, retain and acquire customers in targeted segments
 Business Processes: deliver the value proposition to targeted customers
 innovative products and services
 high-quality, flexible, and responsive operating processes
 excellent post-sales support
Customers
 Organizational Learning & Growth:
 develop skilled, motivated employees;
 provide access to strategic information
Processes People
 align individuals and teams to business unit objectives

.
 THE FOUR PERSPECTIVES
APPLY TO MISSION DRIVEN AS
WELL AS PROFIT DRIVEN
ORGANIZATIONS
Profit
Profit Driven
Driven Mission
Mission Driven
Driven
• What must we do to satisfy our Financial Perspective • What must we do to satisfy our financial
shareholders? contributors?
• What are our fiscal obligations?

• What do our customers expect from Customer Perspective • Who is our customer?
us? • What do our customers expect from
us?

• What internal processes must we Internal Perspective • What internal processes must we excel
excel at to satisfy our shareholder and at to satisfy our fiscal obligations, our
customer? customers and the requirements of our
mission?

• How must our people learn and Learning & Growth • How must our people learn and
develop skills to respond to these and Perspective develop skills to respond to these and
future challenges? future challenges?

Answering these questions is the first step to develop a Balanced

Scorecard
BALANCED SCORECARD

©SHRM 2009 35
LEARNING ACTIVITY
 Please go through the learning activity and create a BSC for Wipro
Corporation
 Steps for the assignment :-
 Pl go through the reference material and understand the strategic priorities as
indicated by CEO
 Map the Strategic priorities against 4 dimensions Finance, Customer, Process &
people
 Discussion in your you team and identify the objectives/Targets and initiatives
 You can break the activities based on the area of major/minor
 balanced score card to be submitted by end off the class

36
HR’S ROLE IN
PERFORMANCE
MANAGEMENT
Participate in strategic planning.
Conduct job & staffing analysis
 Design & Execute Performance Management ( Align to
Organizational Priorities/goals)
 Train and support managers on PM
 Communicate & train employees on PM
Ensure integrity of the system.
Ensure compliance with nondiscrimination laws.

37
MANAGER’S ROLE IN PM
SYSTEM
 Ensure SMART & Stretch Goals are set for team
members
 Provide regular & periodical feedback to team
 Demonstrate fairness in Performance Evaluation
 Communicate to team the final rating after calibration
 Ensure employee learning & development linkage
 Ensure Good performers get rewarded fairly

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PM – STRATEGY LINKAGE

39
FEEDBACK METHOD –
SANDWICH METHODS

40
EMPLOYEE FEEDBACK –
GROW METHODS

41
BELL CURVE &
ORGANIZATIONAL
PERFORMANCE

42
HIGH PERFORMANCE
ORGANIZATION

©SHRM 2009 43
HIGH PERFORMANCE
ORGANIZATION – STAN C
PERFORMANCE &
REWARDS

45
ORGANIZATIONAL CULTURE
& PERFORMANCE
Microsoft Word
97 - 2003 Document

46
CULTURAL MATURITY
MODEL

©SHRM 2009 47
ORGANIZATION STRATEGY
& PERFORMANCE
MANAGEMENT SYSTEMS
(PMS) - LINKAGE
If Airtel has to improve its performance, what should it be doing at
organizational level /functional and employee levels

48
BARS (BEHAVIOURALLY
ANCHORED RATING SCALE)

©SHRM 2009 49
KPI’S & SMART GOAL

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SMART GOAL ? Smart Goals for More
Hypermart Store Manager

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BALANCE SCORECARD –
STRATEGY MAP

©SHRM 2009 52
 PERFORMANCE
EXECUTION
Shared responsibility
 Employee responsibility:
 Commitment to established goals.
 Communication and update with manager.
 Manager responsibility:
 Feedback, coaching and reinforcement.
 Resource support.
 Accurate observation and documentation.

53
 PERFORMANCE
MANAGEMENT – PRE-REQS
1. Prerequisites ( strategy Planning & Job Analysis)
2. Performance planning ( SMART Goals – Results, Behavior & Measurement )
3. Performance execution.
4. Performance assessment.
5. Performance review.
6. Performance renewal and re-contracting.

54
4. PERFORMANCE
ASSESSMENT AND
APPRAISAL
Who should appraise?
Supervisors.
Peers and team members.
Subordinates.
360 degree feedback.

55
WHAT ABOUT THE
EMPLOYEE?
Should employees do self-appraisals?

56
PERFORMANCE
APPRAISAL PROBLEMS
Appraiser discomfort.
Strictness/leniency.
Bias and lack of objectivity.
Manipulating the evaluation.
Halo/horns effect.
Central tendency error.
Recent behavior.
Supervisor unable to observe behavior.

57
GETTING READY FOR THE
PERFORMANCE
INTERVIEW
Before you start that interview, what do
you need?

58
CONDUCTING THE
PERFORMANCE
INTERVIEW – HOW
Explain the purpose of the interview.
Discuss self-appraisal.
Share ratings and explain rationale.
Discuss development plans.
Employee summary.
Rewards discussion (if appropriate).
Set follow-up meeting.
Employee signature.
Supervisor recap.
Appeals process. 59
PERFORMANCE RENEWAL
AND RE-CONTRACTING
Final step in performance
management process.
Readjust based on insight from
completed process.
Plan for next performance
management cycle.

60
PROBLEMS WITH
ASSESSMENT/APPRAISAL
Tied to compensation.
Employees lack motivation.
Manager and employee don’t agree on results.
Management reluctance.
No performance documentation.

61
ISSUES WITH
PERFORMANCE
MANAGEMENT
Legal issues.
Untrained raters.
Rater errors.
Rater distortion.
No grievance procedure.

62
POORLY IMPLEMENTED
PM SYSTEMS
False and misleading information.
Increased turnover.
Wasted time and money.
Damaged relationships.
Decreased motivation.
Job dissatisfaction.
Risk of litigation.
Unfair standards.

63
PERFORMANCE
MANAGEMENT SKILLS
Communication.
Coaching.
Giving feedback.
Empathy.
Teamwork.

64
 COACHING STEPS
1) Have a game-plan: A clear vision and action plan ensure that all
" players" are focused on the same end-result. 
2) Associate the game-plan with individuals' goals: . A personal
coach is only as effective as the client is motivated.
3) Do drills: Isolate the key skills required to succeed, and develop
exercises that hone those specific skills through practice
4) Put people in roles that suit their aptitude: Discuss natural
propensities with your employees
5) Use appropriate communication modes and content: The
best coaches in any arena know how to mould their
communication style and content to befit the person they are
coaching -- leading to greater understanding, better rapport, and
longer retention.
6) Celebrate: Achieving goals and surpassing milestones deserve
credit. 

65
COACHING METHOD

©SHRM 2009 66
LET’S PRACTICE YOUR
PERFORMANCE
APPRAISAL SKILLS
 Each group to fill a Performance
Plan/Review document and submit

 Identified Group to a role play of

Performance Appraisal/feedback

67
PERFORMANCE
MANAGEMENT – GOALS?

Communication between supervisor and employee.

Feedback on performance.
Documentation.
Development Goals.
Alignment with strategic planning goals.

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PERFORMANCE MANAGEMENT AND PERFORMANCE APPRAISAL

Performance management:
Dynamic, continuous process.
Improves organizational effectiveness.
Strategic goals.

Performance appraisal:
Periodic (usually annual) event.?
Formal review.
Last step in performance management process.

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THANK YOU

©SHRM 2009 70
WRITING SMART
PERFORMANCE
OBJECTIVES
Practice writing SMART performance objectives:
 S – Specific.
 M – Measurable.
 A – Attainable.
 R – Realistic.
 T – Timely.

©SHRM 2009 71
WRITING THE APPRAISAL
REVIEW DOCUMENT
Are your comments accurate and
meaningful to the employee or just
clichés?

©SHRM 2009 72
2. PERFORMANCE
PLANNING
Employees must have thorough knowledge of the
performance management system.
Meeting between employee and manager.
Set SMART goals and measurement standards:
 Results.
 Behavior.
 Developmental plans.

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INDIGO
https://economictimes.indiatimes
.com/industry/transportation/airli
nes-/-aviation/indigo-ceo-wants-
staffers-to-help-cut-
costs/articleshow/66353753.cms

©SHRM 2009 74