IMPLEMENTATION PROCESS

1. Decide the implementing programme

2. Plan the implementation

3. Develop the programme content

4. Implement the programme

5. Monitor

6. Evaluate the programme

UNIT-4IMPLEMENTING PERFORMANCE MANAGEMENT SYSTEM

AND APPRAISAL SYSTEMS

FACTORS AFFECTING EFFECTIVE USE OF PERFORMANCE MANAGEMENT

• Corporate culture

• Alignment

• Review and update

• Communication and reporting

• Involvement of employees

• Reward linkage

• Management leadership and commitment

PITFALLS IN IMPLEMENTATION

• Overcomplicating the process

• Measuring the wrong things

• Failing to engage the workforce

• Declaring victory to early

• Failing to institutionalize performance initiative

PERFORMANCE APPRAISAL

• It is a process of systematically evaluating performance and providing feedback upon which performance adjustments can be made

- Schermerhorn et al

• It is also called performance review, performance evaluation, performance assessment, performance measurement, employee evaluation, personnel review, staff assessment, service rating, etc.,

CHARACTERISTICS

• Reassurance• Awareness• Adequacy• Means• Opportunities• Administrative decisions and reward management• Critical tool for training and development• Foundation of career and succession planning• Valuable source of talent management

OBJECTIVES

• Increased motivation to perform effectively

• Increased self-esteem of employees

• New insight gained into employees and managers

• Better clarity and definition of job functions and responsibilities

• Valuable communication developed among appraisal participants

OBJECTIVES

• Increased self-understanding among employees

• Rewards distributed on a fair and credible basis

• Organizational goals clarified

• Improved institutional/departmental manpower planning, test validation and development of training programmes

PROS & CONS OF APPRAISINGADVANTAGES

• Increase motivation• Increase self-esteem• Clarity in job • Valuable communication • Organisational objectives and strategies can be

made clearer• Rewards can be distributed on fair and credible basis• Valuable appraisal information can allow the

organisation to do better human resource planning, test validation and development of training programmes

DISADVANTAGES

• Large amount of time may be wasted

• Creates organizational conflicts

• Performance motivation may be lowered, means that poor performance means no reward, biased evaluation includes favoritism

• Money may be wasted on forms, training and a host of support services

METHODS OF APPRAISING

METHODS

Past oriented Future oriented

Past oriented

• Essay appraisal• Graphic rating scale• Field review• Forced-choice rating• Critical incident• Work standards• Ranking

FUTURE ORIENTED

• Balanced score card

• 360-degree

• BARS

• Assessment centre

• MBO

Appraisal and HR decisions

Performance management involves two types of assessments:

1. Comparing an employees current performance with her own past performance

2. Comparing a manger’s performance to that of her comparable or competing colleagues or peers

Appraisal are important inputs for:• Staff-related decisions promotions placements compensation & rewards career routing

Basic purpose of appraisal output is “it is used to plan, co-ordinate, organize, motivate, guide, develop and encourage”

Some org consider both performance and potential

High lowHigh

low

Hi potential, hi performance Decision: promote

Hi potential, lo performanceDecision: relocate

Lo potential, hi performance Decision: reward in existing job

Lo potential, lo performanceDecision: outplace

Reward system

• Amount of reward received versus the amount that the manage feels she should receive

• Extrinsic reward( increase in pay)• Intrinsic reward( larger responsibility)• Herzberg’s theory (motivation-hygiene )• Attribution process ( personal or situational

influences will affect).

• Steps in attributiona. observe persons (behavior or action)b. determine the whether the subject

behavior was intended or accidentalc. if it is intended try to assess it is because of

personality or personal character or environmental or situational

Other decisions:• Staffing:1) strategic recruitment

planning2) recruiting, selectionMotivation:1. application of

motivation theories 2. Job design3. performance appraisal4. rewards &

compensation

Maintenance:1. safety and health2. communication3. employee relationsTraining development:1) orientation2) employee training3) career development