Management of Individual

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    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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    Progressandcompletedassignmentsarereceived

    Positivefeedbacktomaintainperformanceandmotivationisprovided

    Feedbackonbehavior,strengthsandimprovementareasisgiven

    Feedbackregularlyatleastonceevery6months

    Coachingtogetperformancebackontrack

    Ensureemployeesarenotsurprisedwiththefinalappraisalratingat

    theendoftheyear

    PERIODICPERFORMANCEREVIEWSBYMANAGERS

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    KeyActivities

    Reviewachievementofobjectivesandperformancemeasurements

    Reviewdemonstration

    of

    competencies,

    Confirmandreinforcegoodperformance

    Reviewareasforimprovement

    Letemployee

    know

    where

    he/she

    stands

    ProvidePerformanceEvaluationsummary

    Providefeedbackonemployeedevelopmentplan

    FINALPERFORMANCEEVALUATION

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    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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    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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    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!