Concept of Performance Mangement

8/17/2019 Concept of Performance Mangement

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Performance Managed Organizations are likely to have thefollowing characteristics

- Measurable performance targets

- Manage-learning linked with organizationalgoals on the one hand and with career

development on the other- Pre-eminence of intrinsic needs of manages

without neglecting their extrinsic needs

- Ownership of performance management by line

management rather than the personnel function


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Parts of PerformanceManagement System

http://managementstudyguidecom/components-of-performance-management-systemhtm

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Major Determinants of IndividualPerformance (Pocket)

• !ndividual "kills and #nowledge

• "ituational $onstraints

•

%ob &it• $lear 'oals and (xpectations

• $ompany $ulture

•Motivation

• $ommitment


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Puroses of PerformanceManagement

• ) "trategic Purpose - link employeeactivities with organization*s goalsthe results+ behavior+ employee

characteristics developingmeasurement and feedbackmechanism

• , dministrative Purpose -administrative decisions: salaryadministration+ promotions+

retentions+ layo.s+ and recognition


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0evelopmental Purpose - develop employees who aree.ective - identi1es de1cient aspects of employees*performance and its causes

• 2o enable the employees towards achievement of

superior standards of work performance• 2o help the employees in identifying the knowledge and

skills re3uired for performing the 4ob e5ciently as thiswould drive their focus towards performing the righttask in the right way

• 6oosting the performance of the employees byencouraging employee empowerment+ motivation andimplementation of an e.ective reward mechanism


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• Promoting a two way system of communicationbetween the supervisors and the employees forclarifying expectations about the roles andaccountabilities+ communicating the functionaland organizational goals+ providing a regular anda transparent feedback for improving employeeperformance and continuous coaching

• !dentifying the barriers to e.ective performance

and resolving those barriers through constantmonitoring+ coaching and developmentinterventions


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• Promoting personal growth andadvancement in the career of theemployees by helping them in ac3uiring

the desired knowledge and skills• to align individual and organizational

ob4ectives

•

to improve organizational performance• to develop a performance culture7

• to inform contribution/performance pay

decisions


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!"# P$%&O%M'$ M''*$M$+S#S+$MS &'I,-

!ndividual goals are not linked to strategy 2here are no conse3uences for non-performance by employees

(mployees do not understand what is

expected of them

8ecessary 4ob competencies have not beendeveloped

Managers do not use individual goals todrive performance

2here are too many goals per employee

$omplex forms and procedures are used


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!"# P$%&O%M'$ M''*$M$+S#S+$MS &'I,- (ontd.)

2here is no link between e.ectiveerformance and reward/ recognition

2here are unidenti/ed o0stacles toperformance

o feed0ack is given on performance

(mployees are not held accounta0le forresults

Performance management is seen assearate from the day-to-day managementof people

(mployees are treated oorly and

therefore do not care about what they do


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&ive $riteria for (.ective

Performance Management

) "trategic $ongruence - extent to which theperformance management system elicits 4obperformance that is consistent with theorganization*s strategy+ goals and culture

- guide employees in contributing to theorganization*s success

, 9alidity - assesses all the relevant and only therelevant aspects of 4ob performance

eliability - consistency of a performance measure+free from random error

; inter rater reliability

- internal consistency reliability

- test - retest reliability: reliable over time


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"peci1city - detailed guidance to

employees about what is expectedand how they can meet theseexpectation


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P$%&O%M'$ M''*$M$+ #,$

,'%I$1P$+'+IO

S(Setting goals

andmeasures)

(nsure that the employee understands whatis expected of him/her

"et performance ob4ectives and measures

(nsure a two-way dialogue during this phase


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P$%&O%M'$ M''*$M$+ #,$

P,' +O&'I,I+'+$

P$%&O%M'$

!dentify any interventions necessary toimprove the subordinate*s performance

2his can include resources+ delegation ofauthority+ additional human resources+ trainingand development+ etc


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P$%&O%M'$ M''*$M$+ #,$

MOI+O%P$%&O%M'

$

Management by wandering around

Ongoing performance meetings

2elephone calls

?ritten reports


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P$%&O%M'$ M''*$M$+ #,$

P%O2ID$&$$D3'4

Provide conse3uences for performance@praise/recognition or reprimandingA

edirect e.orts of the subordinate ifnecessary

5&$$D3'4 IS +"$ 3%$'4&'S+ O&"'MPIOS6


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P$%&O%M'$ M''*$M$+ #,$

O'"7O8S$,

'DS8PPO%+

$oach the subordinate where a seriousperformance de1cit is revealed

$ounsel the subordinate and o.er solutions toovercome personal/interpersonal problems

"upport subordinates and ensure that theyknow that you have con1dence in them


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P$%&O%M'$ M''*$M$+ #,$

%$O*IS$*OOD

P$%&O%M'$

'ood performance should be followed bypositive conse3uences

2here should be a clear link between goodperformance and reward in the organisation

53$"'2IO8% IS ' &8+IO O& I+SOS$98$$S6 : Prof 6& "kinner

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Concept of Performance Mangement