PERFORMANCE MANAGEMENT PROCESS

PERFORMANCE MANAGEMENT PROCESS

In theory, The Performance Review Process can be thought of as positive interaction b/w coach and an employee, working together to achieve maximum performance. In reality, its more like finding a dead squirrel in your backyard and realizing the best solution is to fling(throw) it onto your neighbors roof. Scott Adams(The Dilbert Principle)

PERFORMANCE MANAGEMENT PROCESS

Prerequisites

Performance planning Performance execution

Performance Assessment

Performance Review
Performance Renewal & Reconstructing

PERFORMANCE MANAGEMENT PROCESS

1. 2. 3. 4. 5. 6. Prerequisites Performance planning Performance execution Performance Assessment Performance Review Performance Renewal & Recontracting

Prerequisites
1.Knowledge of the orgns mission and strategic goals 2. Knowledge of the job in question

1.Knowledge of the orgns mission and strategic goals

Mission A mission is a statement, which outlines the fundamental purpose of the organization Strategic goals It is the result of strategic planning: Strategy is a Purpose for existing commitment to undertake future position one set of Goals to achieve action rather Strategies to achieve them than another

 Once the mission & S.goals have been set it should be cascaded(flow) downward If there is any lack of clarity regarding goals or relationship b/w orgns M & S and units M & S Therell be the lack of clarity of responsibility & goals cant be achieved.

2. Knowledge of the job in question

Through job analysis

Job analysis
Job specification Systematic process of determining the knowledge, skills & abilities(KSA) required for performing jobs in an organization. Job description Systematic investigation of the tasks , duties and responsibilities necessary to do jobs .

Job Analysis: A Basic Human Resource Management Tool

Human Resource Planning

Tasks

Responsibilities

Duties

Recruitment

Selection

Job Descriptions

Training and Development Performance Appraisal

Job Analysis

Job Specifications

Compensation and Benefits

Safety and Health Employee and Labor Relations

Knowledge

Skills

Abilities

Legal Considerations Job Analysis for Teams

 1. What is expected of me? How will I be clear about what is expected of me in terms of both results and behaviour? 2. How am I doing? What ongoing coaching and feedback will I receive to tell me how I am doing and how I can improve? 3. What does it mean for me? How will my individual contribution, potential and aspirations be recognised and rewarded?

2.Performance planning
Performance planning discussion includes Results Behaviors Development plan

1.Results
Out comes of an employees performance It is to be discussed that: Key accountabilities(areas) /Job descriptions Specific objectives(goals) Performance standards It is a yardstick to check how well achieved the objectives

2.Behaviors
This discussion because mere results may give the incomplete picture. eg. Sales figure may be affected by the sales territoty It includes: Competencies i.e KSAs eg. Customer service written/ oral communication Creative thinking convincing etc..

3. Development plan
Identifying areas which need improvement &

setting the goals to be achieved in each area.

It includes both Results &Behaviors

3.Performance Execution
Responsibilities of employee 1.Commitment to goal achievement 2.Ongoing performance feedback & coaching 3.Communication with supervisor 4.Collecting & Sharing performance data 5.Preparing for performance reviews

Performance Execution
1.Commitment to goal achievement Employee must be committed to the goals that were set. One way to enhance the commitment is to allow employee to be active participant in goal setting

Performance Execution
2.Ongoing performance feedback & coaching Employee should take proactive role in seeking feedback

Should not wait until a serious problem develops for coaching

Performance Execution
3.Communication with supervisor Supervisors are busy

The burden is on employees openly & regularly

Performance Execution
4.Collecting & Sharing performance data Regular updates on progress In terms of results & behaviors 5.Preparing for performance reviews He should not wait until the end of review cycle approaches Employee has to prepare for review by ongoing & realistic Self appraisal It helps to take immediate corrective action

Performance Execution
Responsibilities of supervisor 1.Observation & documentation 2.Updates 3.Feedback & coaching 4.Resources 5.Reinforcement

Performance Execution
1.Observation & documentation(collection and classification of information) Supervisor must observe & document the performance on daily basis It is to keep track of examples of good & bad performance

Performance Execution
2.Updates Orgns goals may change, It is impt to update & revise the Initial objectives Standards Key accountabilities(results) Competency areas(behaviors)

Performance Execution
3.Feedback & coaching Feedback on progression towards goals Coaching to improve performance On regular basis & b4 review cycle

Performance Execution
4.Resources He should provide enough resources & opportunities for devlpmntl activts Should encourage to participate in Training Classes Special assignments etc..

Performance Execution
5.Reinforcement(strengthen or support ) He has to reinforce effective behavior & progress toward goal

He has to give the remedy for negative performance Performance problem must b taken into care, diagnosed & steps to b taken sooner

Responsibilities of employees 1.Commitment to goal achievement 2.Ongoing performance feedback & coaching 3.Communication with supervisor 4.Collecting & Sharing performance data 5.Preparing for performance reviews

Performance Execution
Respnsblts of supervisors 1.Observation & documentation 2.Updates 3.Feedback & coaching

4.Resources
5.Reinforcement

4.Performance Assessment
Self appraisal Both employee & supervisor take ownership Both fill the appraisal forms Whether the desired results have been achieved desired behaviors have been displayed Goals stated in the development plan have been achieved It increases the employee ownership & commitment It gives impt information to the performance review

5.Performance Review
The meeting b/w managers & employees Appraisal meeting Often regarded as Achilles = heel of the entire process It is the review of past Effective appraisal meeting focuses on present & future also present changes in compensation that may result from the results obtained Future dvlpmntl plans expected to achieve by next review

Performance Renewal & Recontracting

Similar to performance planning stage It uses information gathered during the review to make adjustments as needed

Three milestones
Describing the role and agreeing individual expectations Describing the role and agreeing individual expectations Discussing career and development opportunities

 As defined by the total quality expert William Deming it consists of these basic activities: Plan decide what to do and how to do it. Act carry out the work needed to implement the plan. Monitor carry out continuous checks on what is being done and measure outcomes in order to assess progress in implementing the plan. Review consider what has been achieved and, in the light of this, establish what more needs to be done and any corrective action required if performance is not in line with the plan.

Performance management cycle

Stages of Perf.Mangement

Recap - PMP
Role definition The performance agreement The performance improvement plan The personal development plan Managing performance throughout the year Performance review

 Role definition, in which the key result areas and competence requirements are agreed. The performance agreement, which defines expectations what individuals have to achieve in the form of objectives, how performance will be measured and the competences needed to deliver the required results. The performance improvement plan, which spells out what individuals should do to improve their performance when this is necessary.

 The personal development plan, which sets out the actions people should take to develop their knowledge and skills and increase their levels of competence. Managing performance throughout the year, when action is taken to implement the performance agreement and performance improvement and personal development plans as individuals carry on with their day to day work and their planned learning activities. It includes a continuous process of providing feedback on performance, conducting informal progress reviews, updated objectives and, where necessary, dealing with performance problems. Performance review, which is the formal evaluation stage when a review of performance over a period takes place covering achievements, progress and problems as the basis for the next part of the continuous cycle a revised performance agreement and performance improvement and personal development plans. It can also lead to performance ratings.

Case studies

HBOs performance Matrix

Pfizers PMS

Raytheon Inc US defense & aerospace com

Scottish Parliament
Aim To be an organization in which we all behave corporately and are properly trained, informed, involved, motivated and rewarded and to which we are proud to belong. Achieving purpose, aims and values To help achieve the above a performance management system has been developed specifically to: Be simple to operate. Establish a clear link between business and individual objectives. Ensure commitment to our values and culture. Ensure that skills and knowledge and behaviour (competencies) are reviewed. Generate a thorough and continuing review of training and development needs. Enable us to continue to improve the organizations performance. Ensure we can identify and reward exceptional performance and contribution. Identify good and bad performance clearly.

Aims of performance management

Ensure that what we do is guided by our values and is relevant to the purposes of the organisation. Ensure that we are all clear how to demonstrate the skills, knowledge and behaviours that are expected of us. Ensure that we are clear what our individual role is and how we intend to fulfill it. Link our job roles and individual objectives to the organisational objectives and priorities set out in the Management Plan. Ensure that all managers agree and review objectives, priorities and developmental needs with team members. Review performance against objectives and areas of competence to ensure that we are making the best possible contribution to the organisations overall aim. Ensure that all team members receive constructive feedback in order to develop and improve performance. Ensure that a thorough review of training and development takes place as an integral part of the system so that personal development plans reflect both business and individual aims. Ensure that poor performance is identified quickly and support provided to eliminate it.

Basis of performance management

Performance management involves measuring not only whether jobs are done but how they are done. Staffs are assessed against a set of eight core areas of competence: 1) high quality service, 2) flexibility and adaptability, 3) personal contribution, 4) problem solving and decision making, 5) leadership/teamwork, 6) communication and interpersonal skills, 7) parliamentary awareness and 8) equal opportunities improving access and promoting equality. The competency areas are aligned to the job evaluation scheme factors. Positive and negative indicators exist against each area of competence to illustrate the ways in which staff are expected to behave and the ways in which they are expected not to behave.

Good performance management

Good performance management is achieved through both parties ensuring that: New staff knows what is expected of them from the outset. Everyone is clear about corporate goals and works towards them. Objectives are SMART (Specific, Measurable, Achievable, Relevant, Time related). A system exists to accommodate day-to-day performance feedback. The personal development plan (PDP) is used formally to help self developmental activities and/or improve performance. The line manager provides and the jobholder undertakes the training needed to support the individual and the organization. Appropriate support is in place to eliminate poor performance.

Personal development plan- PDP

A personal development plan is an important part of the system. It is a plan on which to record:
where the level of competence is met but where we would like to develop further; any training and/or development needed to support the delivery of that objective; any gaps in skills, knowledge or behaviours that need to be overcome in order to meet our objectives.

It gives jobholders and line managers the opportunity to:

identify, discuss and agree development needs for the year ahead; prioritize and plan how these will be addressed and achieved; agree and set dates for reviewing the plan; if necessary, plan how poor performance might be improved.

Standard Chartered banks High.perf

Summary

Reference
Robert Bacal, text book of Performance Management, TMH editions. Will Artley, text book of Performance -based Management hand book, an E-book. Aaron, Maureen, Performance management, Nova southeastern University