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8/8/2019 Management of Individual
1/99
MANAGEMENTOFINDIVIDUAL
PERFORMANCEFORDRIVING
EFFECTIVENESS
TariqSaeed
February
26,
2009
SEMINAR
ON
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OVERVIEW
PerformanceManagement(PM)
ManagementofOrganizationalPerformance
PMSystems,Processes&Environment
ManagementofIndividualPerformance
Drivingeffectiveness
&
Increasing
Productivity
Effectivenessthroughmotivation
LinkingPerformancetoPay&Productivity
Summary
Questions?
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PERFORMANCEMANAGEMENT
Isameanstocreateandmaintainaclimateofsuccess
inthe
organization.
MartinFisher,PerformanceAppraisals
ThismeansaWinWinrelationshipwithemployees
&Sharingthebusinesssuccessalltheway
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WHATIS
PERFORMANCE
MANAGEMENT?
Armstrong and Baron defined Performance Management as aStrategic and Integrated Approach to delivering sustained
success
to
organizations
by
improving
performance
of
people
who work in them and by developing the capabilities of teamsandindividualcontribution.
Itisintegrated,becauseiteffectsfourtypesofintegration:
Vertical
Functional
Human
ResourceGoals
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PERFORMANCEMANAGEMENTANDPEOPLE
MANAGEMENT
PerformanceManagementisthatpartofanorganizationspeoplerelated
function,whichisperformedbythosedirectlymanagingthepeople.
Withinanyorganization,thereareatleasttwolevelofefforts,that:
(1)Concerntheperformanceofitspeople
(2)Optimizeindividualandcollectiveoutput
Efforts at the organization level, which determines the organization's
internalenvironment
Effort
at
the
managerial
level,
which
constitute
core
of
the
leadermanagerrole,whateachmanagerdoestosupervisehis/hermanages.
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PERFORMANCEMANAGEMENT
Differentviewsonwhatperformanceis:
Therecordofoutcomesachievedortheaccomplishments
Theoutcomeofworkprovidingthelinkagetotheorganizationalstrategicgoals,customer,andindividualeconomiccontributions.
Thewayinwhichorganizations,teamsandindividualsgetwork
done.
Itembracesbothbehaviorandoutcomes.
Itmeansbothbehaviorandresults.Behaviorsemanatefromthe
performer
and
transform
performance
from
abstraction
toaction.
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MANAGEMENTOFORGANIZATIONALPERFORMANCE
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WHATISPERFORMANCEMANAGEMENT?ORGANIZATIONAL
PERSPECTIVE
PerformanceManagedOrganizationsarelikelytohavethe
followingcharacteristics:
Measurableperformancetargets
Manageelearninglinkedwithorganizationalgoalsonthe
one
hand
and
with
career
development
on
the
other.Preeminenceofintrinsicneedsofmanagerswithout
neglectingtheirextrinsicneeds
Ownership
of
performance
management
by
line
management
ratherthanthepersonnelfunction.
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WHATDOESPERFORMANCEMANAGEMENTBRINGOUT
Achievementoforganizational,teamandindividualeffectiveness.
Effectiveprocessesofcontinuousdevelopmentfororganizationand
individual.
Employeedevelopment
Addressthecorecompetenciesoftheorganizationandcapabilitiesof
individualsand
teams.
Satisfiestheneedsandexpectationsofalltheorganizationalstakeholders.
Owner,management,employees,customers,suppliersandthegeneralpublic.
Communicationandinvolvementofallconcerned
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Createsaclimateofacontinuingdialoguebetweenmanagersandthemembersoftheirteamstodefineexpectations
Shareinformation
on
the
organizations
mission,
values
and
objectives.
Establishesmutualunderstandingofwhatistobeachieved
Aframework
for
managing
and
developing
people
to
ensure
that
theyachieveobjectives.
Developmentofahighinvolvementorganization
Getting
teams
and
individuals
to
participate
in
defining
theirobjectivesandthemeanstoachievethem.
WHATDOESPERFORMANCEMANAGEMENTBRINGOUT
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THESCOPEOFPERFORMANCEMANAGEMENT
ManagingtheorganizationanditsProcessesandResults
Concernseveryoneinthebusinessnotjustmanagers
Managersand
their
team
jointly
accountable
for
results
and
agreementsonhowtodoit?
Ensure a holistic approach for the whole enterprise atorganizational,departmental,team,andindividuallevels.
Concerned with what people do (their work), how they do it(behavior) andwhattheyachieve(theirresults).
It includes all efforts adopted for Individual, team and
organizational
effectiveness
including
development
of
knowledge,skillsandcompetence.
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ORGANIZATIONALANDINDIVIDUAL
PERFORMANCELINKAGE
The goals and expectations in an organization for group and individual
performance would naturally flow from the organization's performance
plans.
Theorganizationsmissionandgoalsanditslongrangeorstrategic plans.
The organizations annual operating plans, circumscribing the team or
projectlevel
performance
goals.
Organizational values and work ethics to be observed in course of
achievingthegoals.
Organization widejobdescriptions,indicatingskillsandcompetencies
needed.
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MANAGEMENTOFORGANIZATIONAL
PERFORMANCE
Mission
StrategicObjectives
BusinessGoals
Divisional/DepartmentalGoals
EthicalandSocialObjectives
TeamObjectives
IndividualGoals
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PURPOSEOF
PERFORMANCE
MANAGEMENT
Performance Management is a means of getting better resultsfromorganization, teams and individuals by understanding and
managingperformance
within
an
agreed
framework
of
planned
goals,standardsandcompetencerequirements.
It is a process for establishment shared understanding aboutwhat is to be achieved, and an approach to management and
developingpeople
in
away
that
increase
the
probability
that
it
will be achieved in the short and longer term. It is own anddrivenbylinemanagement.
It
covers
competency
levels
and
achievements
as
well
as
objective setting and review. Thereby, highlighting inputs(behaviors)andoutputs(results)
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SYSTEMS,PROCESSES&ENVIRONMENTOF
PERFORMANCEMANAGEMENT
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Itis
ameans
to
create
and
maintain
aclimate
of
successintheorganization. MartinFisher,
Performance
Appraisals
PERFORMANCEMANAGEMENT
SYSTEM
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MANAGEMENTOFINDIVIDUALPERFORMANCE
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MANAGEMENT
OF
INDIVIDUAL
PERFORMANCE
Performance
Appraisal
PerformanceAppraisal
PerformanceManagementofIndividual
PerformanceManagementProcess
PerformanceReviewMethods
HowPerformance
Management
is
done?
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Performanceofanindividualreferstoanemployees
accomplishmentofassignedtasks.
Theperformanceofindividualissubjecttoanappraisal.
PERFORMANCE
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APPRAISAL
Itis
the
formal
and
systematic
assessment
made inaprescribedanduniformmanner
atacertaintime.
Appraisalisthejudgementofan employees
performancein
his
job,
based
on
considerations
otherthanproductivityalone.
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It
isthe
systematic
description
of
the
job
relevant strengthsandweaknessesofan
individualoragroup
PERFORMANCEAPPRAISAL
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PERFORMANCEAPPRAISAL
Performance
appraisal
is
an
exercise
in
observationandjudgement,itisafeedback
process,anditisanorganizationalintervention.
Itisameasurementprocessaswellasanintensely
emotionalandhumanprocessalso.
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COMPLEXITYOF
PERFORMANCE
APPRAISAL
PerformanceManagementincludesissuesas:
Developmental(feedback)
Technicalaspects(Designofanappraisalsystem)
InterpersonalAspects(Appraisalinterviews)
Administrative(Pay,Promotions)
Thismakesitextremelycomplex.
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PERFORMANCEMANAGEMENT
(FORANINDIVIDUAL )
Performance Management is the total process of observing an
employeesperformanceinrelationto jobrequirementsoveraperiod
oftime
and
then
making
an
appraisal
of
it.
This
is
done
by:
Clarifyingexpectations.
Settinggoals.
Providingon
the
job
coaching.
Storingandrecallinginformationaboutperformance.
Counseling, Feedback&Monitoring.
PerformanceReview.
DocumentingResults/AchievementsandBehavior.
ConductReviewandSeekAgreementon EDP/PIP.
FinallyPerformanceCorrection.
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Objectives
AchievementofObjectives
OrganizationalandPeopleDevelopment
PerformanceStandards
and
Leadership
OverallPerformanceEvaluation
Weighting
Reviewwith
Employee
ELEMENTS
OF
PERFORMANCE
MANAGEMENTFORINDIVIDUALS
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THEBASIS
OF
PERFORMANCE
REVIEW
Theperformancereviewdiscussionprovidesthemeansthrough
whichthefivekeyelementsofperformancemanagementcanbe
achieved:
1. Measurement
2. Feedback3. Positivereinforcement
4. Exchangeofviews
5. Agreement
on
action
plans
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HOWPERFORMANCEINANORGANIZATIONFLOWSDOWNWARDTODEPARTMENT,
TEAMAND
INDIVIDUAL
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IndividualPerformance
Plans
KeyResultsAreas
Objectives
PerformanceMeasurements
Competencies
BusinessPlans
StrategicPlans
Dept.Goals
Mission
Vision
OBJECTIVES
CASCADING
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Topmanagementresponsiblefordevelopingavision,
Buildingorganizationwidecommitmenttoitsachievement.
The vision deployed through development and execution ofstrategicplans.
Employees (All levels) need actively participate in generating a
strategyand
action
plans
to
attain
the
vision.
Ateachlevel,progressivelymoredetailedandconcretemeanstoaccomplish theannualplansaredetermined. There should beaclearlinktocommongoalsinactivitiesfromtheshopfloortothe
topfloor.
Performanceplansarehierarchical,cascadingdownwardfromtopmanagementsplans.
VISION
PROCESS
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VISION
Tobethebestandmostcompetitivehealthcarecompanyintheworldineverythingwedothroughaprocessof
market
driven
and
continuous
quality
improvement
MEDICALASIA
VISION
Toberecognisedbyourstakeholdersasthebest,mosttrustedandcompetitiveproviderofinnovativemedical
productsand
services
in
Asia
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MEDICALASIAMISSION
Tobecomethecompanyoffirstchoicebyprovidingacomprehensiverangeofproductsandservices,infocusareasof:WoundClosure&Management,MinimallyInvasiveSurgery,Orthopaedics,CirculatoryDiseaseManagement
and
Infection
Prevention.
Wewillachievethismission:
Beingrecognisedastheleadingauthorityineachofthesebusinesses
Throughaprocess
of
innovation
and
customer
partnerships
Byleveragingourregionalandglobalresources,and
ByusingourCredoastheguidingforce
Wewillcontinuouslyevaluatenewbusinessopportunitiesinallmedical
specialitiesandpursuethosebusinesseswherewebelievewecan achievea
sustainableleadershipposition.
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Wewill
achieve
and
maintain
adominant
leadership
position
in
the
healthcaremarketbyprovidingsuperiorproductsandservicesin woundclosure,womenshealthcare,EndoSurgery,circulatorydisease
managementinfectionpreventionmusculoskeletalsystem,babyand adult
care
and
personal
productsWewillachievethismissionby
Beingrecognizedastheleadingauthorityineachofthebusinesses
Throughtheprocessofinnovationandcustomerpartnerships
Byleveraging
our
regional
and
global
resources
ByusingCredoastheguidingforce.Wewillcontinuouslyevaluatenewbusinessopportunitiesinallmedicalspecialtiesandpursuethosebusinesseswherewebelievewecanachieveasustainableleadershipposition.
Vision J&JPakistan
Ourvision
is
to
be
the
best
health
care
company
in
the
segmentsweoperativein.
Mission J&JPakistan
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THEPROCESSOF PERFORMANCEMANAGEMENT
NEEDSTHREE
THINGS
TO
BE
DONE
WELL
DEFINEPERFORMANCE
FACILITATEPERFORMANCE
ENCOURAGEPERFORMANCE
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TypesOfReview PerformanceReview PotentialReview Reward
Recommendations
MethodsOfReview
Ranking Grading BehaviorExpectations
OpenEnded
360DegreeFeedbackMultiRater
AlternativeMethods BehaviororientedRatingMethod
o RelativeRatingSystem.o AbsoluteRatingSystem
ResultorientatedMethod.o MBOo WorkandPlanningReview
BehaviororientedRatingMethodsNarrativeEssayRankingPairedComparisonsForcedDistribution
BehavioralChecklist
CriticalIncidentsGraphicRatingScaleBehaviorallyAnchoredRatingScales
PERFORMANCEREVIEW&METHODS
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REQUIREMENTSOF
EFFECTIVE
APPRAISAL
SYSTEMS
TheFundamentalrequirementsofanyappraisalsystemare:
Relevance
Sensitivity
Reliability
Acceptability
Practicality
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WHOSHOULDEVALUATEPERFORMANCE
TheImmediateSupervisor
Peers Subordinates
Selfappraisal
CustomersServed
Computers
MultiRaters
or
360
Degree
Feedback
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POPULARITYOF
APPRAISAL
METHODS
&
THEIR
USE
RatingScales
51%
Essays 23%
MBOs 17%
OtherForms
9%
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PERFORMANCE
APPRAISAL
PROCESS1.Establishperformancestandardswithemployees.
2.Mutually
set
measurable
goals.
3.Measureactualperformance
4.Compareactualperformancewithstandards.
5.Discusstheappraisalwithemployee.
6.Ifnecessary,initiatecorrectiveaction
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HOWPERFORMANCEMANAGEMENTISDONE?
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PlanningPerformance. Step1
ManagingPerformance. Step2
ReviewingPerformance. Step
3
RewardingPerformance. Step4
PerformanceCorrection(PIPs) Step5
PERFORMANCEMANAGEMENT
PROCESS
Thisisafivestepprocess:
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PERFORMANCEPLANNING
STEP1
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ELEMENTSOFGOODPERFORMANCEPLANS
KeyResultsAreas(KRAs)
Objectives
PerformanceMeasurements
Competencies
JOB
Whatworkmustbe
done?
PERSON
Howwilltheworkbedone?
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Features
Identifymajor
responsibilities
(usually
6
8)
Describewhythejobexists
Minimum
change
from
year
to
year Derivedfromjobdescription(JD)
KEYRESULTAREAS
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PERFORMANCEPLAN:SALESMANAGER
KEYRESULTAREA
SalesTurnover
OBJECTIVE
Toincreasesalesofnewprivate hospitals
PERFORMANCEMEASUREMENTS
Increasesalesby10%over2009 for eachhospital
Sell3unitsofSTERRADtonewprivate hospitalsin2010
COMPETENCIES(GLP)
CreatesValueforCustomers
FocusesExternally
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KEYRESULTAREA
PeopleDevelopment
OBJECTIVECoachandtrainSalesExecutivetoassume salesmanagement
responsibility
PERFORMANCEMEASUREMENTS
SalesExecreadyforpromotiontoFieldSales ManagerinJan2009.
SalesExectoattainsuperiorratingin People management projectsinhis 2009
Dev.Plan
SalesExectoattendProfessionalFieldSalesManagersCoursebyApril2009
COMPETENCIES(GLP)
Createsachievementenvironment
Developspeopleforoptimalperformance
PERFORMANCEPLAN:SALESMANAGER
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PERFORMANCEPLAN:ACCOUNTANT
KEYRESULTAREA
InternalControl
OBJECTIVE
Tomaintain
company
accounting
procedures
as
written
in
capital
assetsacquisitionprocedures
PERFORMANCEMEASUREMENTS
Trainallsalesmanagersandpurchasingmanagersincapitalassetsacquisitionprocedures
Noncompliancenottoexceed5%perquarterin2009
COMPETENCIES(GLP)
Focusexternally
PromotesInnovationandContinuousLearning
BuildsInterdependentPartnering
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MANAGINGPERFORMANCE
STEP2
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MANAGING
PERFORMANCE
ProvideEssentialResources
AllowPeople
to
Perform
Provideindependenceandempowermentandresources
Facilitateperformance
Supervision
Guidancewhereneeded
Coaching
Supportingforachievementandresults
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REVIEWPERFORMANCE
STEP3
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50
Progressandcompletedassignmentsarereceived
Positivefeedbacktomaintainperformanceandmotivationisprovided
Feedbackonbehavior,strengthsandimprovementareasisgiven
Feedbackregularlyatleastonceevery6months
Coachingtogetperformancebackontrack
Ensureemployeesarenotsurprisedwiththefinalappraisalratingat
theendoftheyear
PERIODICPERFORMANCEREVIEWSBYMANAGERS
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51
KeyActivities
Reviewachievementofobjectivesandperformancemeasurements
Reviewdemonstration
of
competencies,
Confirmandreinforcegoodperformance
Reviewareasforimprovement
Letemployee
know
where
he/she
stands
ProvidePerformanceEvaluationsummary
Providefeedbackonemployeedevelopmentplan
FINALPERFORMANCEEVALUATION
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52
ProvideFeedbackImmediately
AskQuestions
SelectKeyIssues
Focuson
Changeable
Behavior
AppropriateTimes
PRINCIPLES
IN
GIVING
FEEDBACK..
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REWARDINGPERFORMANCE
STEP4
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REWARDINGPERFORMANCE
Rewardstied
to
performance
SalaryIncreases
Bonus/Incentives
Promotions/Adjustments
Benefitsand
Perks
Review
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PERFORMANCECORRECTION(PIPs)
STEP5
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57
PROCESSOFPIP
ThedurationofthePIPshouldbebetween1to3months,longerif
necessary.
Withan
employee
on
PIP,
aweekly
review
needs
to
be
conducted.
Weeklyreviewshouldbedocumentedwithacopytoemployeeand
HR.
FinalReview
At
the
end
of
the
PIP
period.
IftheemployeemeetsthestandardssetforPIP,theemployeereverts
tothenormalperformanceplanprocess.
Ifhe/she
does
not
meet
the
standards
after
the
second
chance
he/
shemaybeseparated.
FACTORS THAT DISTORT APPRAISALS
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58
FACTORSTHATDISTORTAPPRAISALS
HALO
ERROR
SIMILARITYERROR
CENTRAL
TENDENCY
INFLATIONARY
PRESSURES
INAPPROPRIATE
SUBSTITUTESLENIENCY
ERROR
TOWARDSAMOREEFFECTIVEPERFORMANCE
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MANAGEMENT
SYSTEM
SUCCESS
=Train
appraisers
+RateSelectively
+
Havemultipleraters
+Provideongoingfeedback
+
Combineabsoluteandrelativestandards
+
Usebehaviorbasedmeasures
THE STRATEGIC DIMENSION OF PERFORMANCE APPRAISAL
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THESTRATEGICDIMENSIONOFPERFORMANCEAPPRAISAL
GreatestManagementPrinciple: Thethingsthatgetrewardedgetdonewell.
Shorttermifrewardedwillgenerateshorttermperformance.
When long term results required then the performance on longer periods
needto
be
rewarded.
Managersmayemphasizeshortorlongtermobjectivesoracombination.
Shorttermobjectives outcomeasbottomlineresultsforcurrentquarter.
Longterm
objectives
increase
market
share
and
securing
repeat
business.
Tobemosteffective,strategicmanagementofPerformance mustbelinked
tothestrategiesanorganizationusestogaincompetitiveadvantageeg
innovation,speed,qualityorcostcontrol.
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DEALINGWITH
PERFORMANCE
PROBLEMS
Thefivebasicstepsrequiredtohandleperformanceproblemsare:
1. Identifyandagreetheproblem
2. Establishthe
reason(s)
for
the
shortfall
3. Decideandagreeontheactionrequired
Changingbehaviour
Changingattitudes
Clarifyingexpectations
Jointlydevelopingabilitiesandskills
Resourcetheaction
5. Monitorandprovidefeedback
IN REALITY
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Performance
appraisal
has
many
facets.
Itisanexerciseinobservationandjudgment
Itisafeedbackprocess
Itis
an
organizational
intervention.
Itisameasurementprocess.
Anintenselyemotionalprocess.
Aboveall,itisaninexact,humanprocess.
INREALITY
PERFORMANCEAPPRAISAL
ACOMPLEXANDOFTENMISUNDERSTOODPROCESS
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DRIVINGEFFECTIVENESSAND
INCREASINGPRODUCTIVITY
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WHYMOTIVATION.?
Toinitiate
our
followers
to
reach
our
objectives,
we
mustholdsomerewardoncetheobjectiveisattained.
What
rewards
do
people
seek?
The
answer
is
that
they
seektofulfilltheirwantsandneeds.
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HUMAN
NEEDS PRIMARYNEEDS: Physiologicalrequirementsforwater,air,food,
sleep&shelter.
SECONDARYNEEDS:
o SelfEsteem
o Status
o AffiliationWith
Others
o Affection(Giving)
o Accomplishment
o SelfAssertion
NEEDS
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NEEDS
(Physiological/Physical)
DRIVES/BEHAVIOR
GOALS/INCENTIVES
NEEDS DRIVES GOALS
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MOTIVENEEDS
&
WANTS
The term motive, need, wants and drives are used interchange
ably.Motivation can also be termed as the willingness to expand
energy, achieve a goal or a reward.
NEEDRespectfrom
others.
BEHAVIORoutstandingworkon
thejob.
REWARDpraise,payincrease,
statussymbols.
HERZBERGSTWOFACTORTHEORY
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Achievement.
Recognition.
Challenging work.
Responsibility.
Advancement.
Challenging job.
Company Policies.
Supervision.
Working conditions.
Interpersonal relations.
Salary /status,
Security.
MOTIVATOR HYGIENE FACTOR
The Job Itself Environment
MOTIVATIONALTECHNIQUES
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Power&Achievement
Moneyas
aMotivator
Competition
Jobdesign&workflow
Integrationofgoals
Participation
Qualityof
work
life
(QWL)
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HOWCANWEIMPROVEPRODUCTIVITY
INOUR
ORGANIZATIONS?
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3
WAYS
TO
IMPROVE
PRODUCTIVITY
TechnologyAdvancement
ProductivitySystemsAndInitiatives
ImprovedPerformanceManagement
GUIDING PRINCIPLES IN IMPLEMENTING
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EmployeeInvestment
PerformanceIndicators
OrganizationalCommitment
Developmentof
Individual
Tailormadecompensationandbenefits(pay)forthe
Organization
GUIDINGPRINCIPLESINIMPLEMENTING
PRODUCTIVITYIMPROVEMENT
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COMPENSATION&ITSIMPACTON
ORGANIZATIONS
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PRODUCTIVITY&COMPENSATION
(PAYFORPERFORMANCE)
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Compensation
must
be
perceived
as
satisfying
the
needs
of
individuals.
Compensationpackageshouldcatertheneedsforgrowth,
recognition
and
identity
of
employees. Compensationmustproviderecognitionofperformanceand
servicesofemployees.
COMPENSATION
(PAY)
PRODUCTIVITY
AND
PERFORMANCELINK
PerformanceBasedPayorPerformanceRelatedPays
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PieceRatePay
MeritPay
Incentives
PerformanceBonus
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Resultsfromarepresentativesurveyoflaborforce
inseveral
countries
showed
that
the
two
most
dominantworkgoalsareInterestingworkandgoodpay
.ITZHAK HARPAZ
IMPLEMENTINGPRODUCTIVITYIMPROVEMENT
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THROUGHPERFORMANCEMANAGEMENT
ActivitiesRequired
PeopleDevelopment
Supervisors&MiddleManagementImprovement
TeamBuilding
DevelopPatience
PerformanceIndicators
OrganizationCommitment
TailormadeToTheOrganization
Allthese
elements
are
existing
in
aGood
and
Effective
PerformanceManagementSystem
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MOTIVATION&ITSIMPACTONPEOPLE
TO
BE
MORE
PRODUCTIVE
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TRADITIONAL
MOTIVATIONALAPPROACH
MBO
Incentives
Promotions
PerformanceManagement
SalaryAdministration
Termination
Recruiting
STRATEGYPERFORMANCE
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GROUNDRULESFORMOTIVATINGINDIVIDUALS
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Treataman
as
he
is,
and
he
will
remain
as
he
is;
treatamanashecanandshouldbe,andhewillbecomeashecanandshouldbe
..Goethe
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Salary,WagesandCompensation
CompensationandRewardsSystem
CompensationanditsImpactonOrganizational
Performance Performancebasedpay
PAYFOR
PERFORMANCE
COMPENSATION(PAY)
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Compensationmustbeperceivedassatisfyingtheneedsof
individuals. Compensationpackageshouldcatertheneedsforgrowth,recognition
andidentityofemployees.
Compensationmust
provide
recognition
of
performance
and
services
ofemployees.
PRODUCTIVITYAND
PERFORMANCE
LINK
PERFORMANCEBASEDPAY
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ORPERFORMANCE
RELATED
PAYS
PieceRatePay
MeritPay
Incentives
PerformanceBonus
INTERLINKOFCOMPENSATIONTOPRODUCTIVITY
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Compensationpackageprovidesneedssatisfaction.
Compensationpackages
cater
the
needs
for
growth,
recognition
andidentityofemployees.
Compensation provide recognition of performance and services
ofemployees.
Theproductivityshouldbefortotaltasksofanorganizationwith
productivity of each job and effective performance integrated
intoit.
INTERLINKINGCOMPENSATION,
PRODUCTIVITY
&
PERFORMANCE
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Performanceshouldberewarded.
Incentivesystems
should
be
built
for
work,
achievements
and
recognitionofheroes.
Benchmarkingtocomparetheperformancewithsimilarindustry
andjobs.
PRODUCTIVITY & PERFORMANCE
COMPENSATIONANDPRODUCTIVITYINTERLINKED
PERFORMANCEOF
INDIVIDUALS
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MOREANDMOREEMPLOYERSARETRYINGTOINCREASE
PRODUCTIVITY
ANDRELATE
PAY
INCREASES
TO
PRODUCTIVITYANDEFFECTIVEINDIVIDUALPERFORMANCE
PERFORMANCEMANAGEMENTSYSTEM
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Isameanstocreateandmaintainaclimateofsuccess
intheorganization.
MartinFisher,PerformanceAppraisals
ThismeansaWinWinrelationshipwithemployees
&
Sharingthe
business
success
all
the
way
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SUMMARYANDCONCLUSION
PERFORMANCEMANAGEMENT
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Aniterativeprocessofobservationandcommunication
to support, retain and develop exceptional employees
for
organizational
success.
PERFORMANCEMANAGEMENT
ESSENTIALS
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Ongoing
Developsfuture
performance
Longterm
Clearobjectives
Focuson
behavior
Incrementalprogress
Twowaycommunication
ESSENTIALS
WHY SHOULD WE MANAGE PERFORMANCE?
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Encourageandrewardbehaviorsthatare
aligned
with
organizational
mission
and
goals Peoplewanttofeelwhattheydoaddsvalue
andunderstandtheircontributiontothe
team Curborredirectnonproductiveactivities
COMPETENCIESANDACCOMPLISHMENTS
NEEDED FOR SUCCESS OF PM
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Skills/knowledge
Motivation
Supportive
environment
Sellproducts
Makedecisions
Diagnoseproblems
Revenues
Plans
Delighted
customers
Profits
Highreturns
Customer
satisfaction
Weanalyzeinthisdirection
INFLUENCES BEHAVIOR ACCOMPLISHMENTS GOALS
Costsinflictedhere Valueproducedhere
NEEDEDFOR
SUCCESS
OF
PM
Managing performance needs appraisal
PERFORMANCEMANAGEMENT
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Managingperformance needsappraisal.
It meanssomethingveryspecific,andmuchtoonarrow.
Aprocessofimprovement,whichdemandscontinued
attention. Performanceappraisal isonlyapartintheoverallPMprocess.
PM requiresa willingnessandcommitmenttofocusonimprovingperformanceatalllevels.
Timelyfeedbackandconstantfocusofeveryonesattentionontheultimateobjective.
Weneedtobreakperformanceappraisalorientationto
performance
management.
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ANYQUESTIONS?
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THANKYOU!