PERFORMANCE MANAGEMENT MBA lll SEMESTER

SYLLABUSUNIT IConcept, characteristic, role and significance of performance; performance appraisal vis- -vis performance management, process of performance management; performance management and strategic planning linkages.UNIT II Performance Planning and goal setting, performance and training, performance feedback coaching and counselingUNIT IIIEstablishing and operationalising performance management system; measuring performance-results and behaviour; conducting performance review discussions; harnessing performance management system for performance improvement.UNIT IVPerformance management strategic and interventions- reward based performance management; career based performance management, term based performance management.UNIT VCulture based performance management; measurement based performance management; competency based performance management; leadership based performance management.

UNIT -1

Concept of Performance management(PM) includes activities which ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product of service, as well as many other areas.PM is also known as a process by which organizations align their resources, systems and employees to strategic objectives and priorities.Performance management originated as a broad term coined by Dr.Aubrey Danielsin the late 1970s to describe a technology (i.e. science imbedded in applications methods) for managing both behavior and results, two critical elements of what is known as performance.[2]A formal definition of performance management, according to Daniels' is "a scientifically based, data-oriented management system. It consists of three primary elements-measurement, feedback and positive reinforcement."Performance Management - DefinitionPerformance managementis an ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. The communication process includes clarifying expectations, setting objectives, identifying goals, providing feedback, and reviewing results.Managing Employee Performance The CycleOverseeing performance and providing feedback is not an isolated event, focused in an annual performance review. It is an ongoing process that takes place throughout the year. The Performance Management process is acycle, with discussions varying year-to-year based on changing objectives.Thecycleincludes Planning, Checking-In, and Review. To begin the planning process, you and your employee review overall expectations, which include collaborating on the development of performance objectives. Individual development goals are also updated. You then develop a performance plan that directs the employee's efforts toward achieving specific results to support organizational excellence and employee success. Goals and objectives are discussed throughout the year, during check-in meetings. This provides a framework to ensure employees achieve results through coaching and mutual feedback. At the end of the performance period, you review the employee's performance against expected objectives, as well as the means used and behaviors demonstrated in achieving those objectives. Together, you establish new objectives for the next performance period.

Characteristics of an ideal performance management system

1. Strategic CongruenceThe strategic goals of the organization should be linked to the goals of individuals and teams.2. StandardizationIf your evaluation criteria and methods are not standardized, you cannot say that you use them to hold your employees to a "standard." The aspects of performance that you measure must be uniform, and you must strive to maintain a constant level of strictness. Varying your level of strictness or your methods will only lead to your employees lacking faith in their managers and in the system itself.3. Validity and ConcisenessPerformance management systems should only measure what is valid to the tasks at hand. Less is often more when it comes to selecting evaluation criteria. If you are evaluating customer-service representatives in acall center, do not evaluate them on their ability to operate heavy machinery.4. LegalityMake sure that you are not evaluating your employees in an illegal manner. Consult an attorney before employing a questionable method of evaluation.5. Due ProcessAs withcriminal investigations, if employees receive sub-par evaluations, give them the chance to defend themselves. Make sure that management adequately informed them of expectations, that the company provided them with all necessary resources and that there is no mistake in the evaluation. Even in cases where employees are performing at an unacceptable level, allow for redemption and reform.6. Proper Training for EvaluatorsNo performance management system can succeed when those carrying out evaluations are inadequately trained. Make sure that your evaluators fully understand the responsibilities of those whom they are evaluating. Have them work in that capacity for a short time if necessary. When possible, have those who have proven their ability to work well in that capacity performs the evaluations.7. No Bias of RewardDo not reward evaluators for finding negative or positive results, as this will skew their evaluations in both direction and lead to distrust between your employees.Role of performance management practices include: Providing individuals and teams with clear, constructive feedback Defining and communicating clearperformance objectivesand standards Reviewing performance and delivering incentives in a fair and consistent manner Providing relevantlearning and developmentopportunities Recognizing and rewarding strong individual and team performance Linking performance to compensation and recognition Identifying clear career progress routes for employees

PERFORMANCE MANAGEMENT VS PERFORMANCE APPRAISALPerformance appraisalPerformance management

Top-down assessmentJoint process through dialogue

Annual appraisal meetingContinuous review with one or more formal reviews

Use of ratingsRatings less common

Monolithic systemFlexible process

Focus on quantified objectivesFocus on values and behaviours as well as objectives

Often linked to payLess likely to be directly linked to pay

Bureaucratic - complex paperworkDocumentation kept to a minimum

Owned by the HR departmentOwned by line managers

PERFORMANCE MANAGEMENT PROCESSIn order for the performance management process to be efficient and effective, supervisors must master the process and apply it consistently. The Federal Competency Assessment Tool - Management (FCAT- M) assesses whether, and to what degree, supervisors have specific competencies. One of these competencies is Understanding Performance Management Process and Practices. A supervisor equipped with this competency will be able to better focus employee efforts on achieving organizational and individual goals.What is performance management? According toA Handbook for Measuring Employee Performance, performance management is the systematic process of1. planningwork and setting expectations2. continuallymonitoringperformance3. developingthe capacity to perform4. periodicallyratingperformance in a summary fashion5. rewardinggood performance1. Planning.The supervisor should meet with employees to create their performance plans. The supervisor should establish measurable goals that align to the agency's strategic and operational plans and consult with his/her employees when creating these goals. It is in this planning stage that the supervisor has an opportunity to explain to employees how their performance directly impacts how the agency and work unit will achieve their goals.2. Monitoring.The supervisor should monitor employee progress, not only when there is a progress review due, but on a continuous basis throughout the appraisal period. Monitoring gives the supervisor an opportunity to make a course correction or adjust a timeline if it is needed so that employees will produce the desired outcome of successfully achieving the agency's or work unit's goals. It also provides the opportunity for the supervisor to make employees aware of their progress, whether favorable or unacceptable. Should the supervisor determine the employee has unacceptable performance on any critical element, monitoring performance enables the supervisor to identify the problem early and get an opportunity period in place well before the rating of record is due.3. Developing.The supervisor should be able to determine from continuous monitoring whether employees need additional development to achieve their assigned responsibilities. It is important to remember that employee development includes not only remediation but enhancing good performance as well. Types of development could include formal training (classroom) informal training (online) coaching or mentoring new work assignments (additional responsibilities) details (within current agency or to an outside agency)4. Rating.The supervisor will use the knowledge gained from monitoring the employee's performance during the appraisal period to compare that performance against the employee's elements and standards and assign a rating of record. The final rating should not be a surprise to the employee, particularly when the supervisor and the employee have had numerous performance discussions during the rating period.5. Rewarding.The supervisor must make meaningful distinctions when granting awards. Award amounts should be clearly distinguishable between different performance levels that are fully successful or above. Performance management should support compensation decisions.Every agency has policies that govern performance management that are unique to the agency. Supervisors must, in addition to mastering and consistently applying good planning, monitoring, developing, rating, and rewarding practices, learn and apply those policies as they relate to the agency-specific practices of performance management. For more guidance on agency-specific performance management systems, refer to the agency's policy and procedures manual.To determine whether they have implemented their agency's performance management system successfully, supervisors need to answer the following questions: Does my application of the system encourage better performance, and Has performance improved during the appraisal period?Positive answers reflect effective application of good performance management policies and practices.

STRATEGIC PLANNING AND PERFORMANCE MANAGEMENT

We believe that doing strategy without metrics and execution discipline is a waste of your time and money. If you choose not to measure how youre progressing against your strategy then this is not the capability for you. Strategic alignment means executing strategic planning by bringing together key leaders and implementers to determine where an organization(s) must focus (mission), where it must be (vision), how it intends to get there (goals and objectives), and how to measure success (performance metrics). It aligns people, processes and technology to plan, measure, monitor, and drive organizational performance. Our tailored approach includes: Strategy Development:formulates strategic elements (i.e., vision, mission, goals, & objectives) through facilitated session with key stakeholders Measures and Targets Development: links the organizations strategic mission and direction to specific desired outcomes Execution/Strategy Management:develops key elements needed for successful implementation to includeaction plans, metrics, andgovernance structure. Supports the execution of the strategic plan by providing change andprogram managementassistanceKey Outcomes Enforces a results-orientation:develops a pragmatic and measurable strategy which allows for monitoring of progress Enables successful Implementation:fosters effective and efficient execution by codifying strategic direction and linking activities and resources to strategic priorities Secures ownership:collaborative and transparent methodology solidifies stakeholder buy-in Provides Clear linkage (line of sight)between strategy and performance Enables Visibilityof underlyingfactors affectingperformance Balances Measuresacross various dimensions (e.g., leading/ lagging, different activity categories, strategic/ individual)

MODEL QUESTION PAPER

Q.1 What is Performance management? Q.2 Define strategic planning and performance managements relation ?Q.3 Explain the process of performance management?Q.4 how performance management is distinguished from performance appraisal?Q.5 Describe performance management cycle.

UNIT -2PERFORMANCE PLANNINGPerformance planning is used to provide a structured approach to the attainment of the desired level of performance for both individuals and teams.As a Team Leader you will be required to ensure that Performance Plans are created for your team and its members. You should also ensure that you are involved in developing your own Performance Plan in conjunction with your Manager. Your Performance Plan ensures that you are clear on the levels of leadership and management performance that are expected of you and helps you to develop new skills as required.Performance planning should occur as:1. An Initial Performance Plan2. A Performance Improvement PlanINITIAL PERFORMANCE PLAN:An Initial Performance Plan is a detailed plan for either an individual or a team and is used to:1. Identify the desired performance levels2. Identify how these performance levels will be achieved3. Provide guidance and direction4. Measure progress towards the desired performance levelsAlthough there are no strict rules as to the format of a Performance Plan they normally contain the following information: Specific goals for development Performance measures Actions required to achieve goals An indication of how long goals will take to achieveIndividual and team Performance Plans should align with the organisation's overall objectives. This can be achieved by aligning the:1. Performance Plans with the Team Operational Plan2. Team Operational Plan with the Team Purpose3. Team Purpose with the organisation's Strategic PlanPerformance Plans might include the following types of goals: Key Performance Indicators (KPIs) Goals to improve competency levels Team building goalsWhenever the performance levels of an individual or team are found to be below the levels indicated in the Performance Plan then a planning process to improve performance should be undertaken. PERFORMANCE IMPROVEMENT PLAN:Inadequate or poor performance can have a number of negative impacts on individuals and teams. As a Team Leader you may experience decreases in team productivity and cohesiveness and an increase in conflict and dissatisfaction.When a performance deficiency is noted, it should be dealt with as quickly as possible. The following steps outline a process for handling poor performance.1. Collate the information regarding poor performanceThis information may be in the form of feedback, customer complaints, error rates, statistics and/or informal observation.2. Meet with the relevant team member(s) and discuss the issuesDuring this meeting you will need to discuss the deficiency or inappropriate behaviour and identify the causes.Inadequate performance does not always indicate a problem on the part of the individual. Key Performance Indicators (KPIs) may be unrealistic or the resources required to achieve the performance standard may not be available.3. Develop a Performance Improvement PlanA Performance Improvement Plan provides an outline of what is required by both the individual and their Manager.You may find that your company or organisation has an existing process for implementing Performance Improvement Plans. You should consult with your Human Resources department or your Manager to determine if this is the case.4. Follow upEnsure that you monitor, follow up and evaluate the performance improvement as set out in the plan.A Performance Improvement Plan should clearly convey:1. The area of performance that requires improvement or development2. The action(s) to be taken3. Any parties required to assist in the achievement of the set actions4. The timeframe for achieving each action5. How performance improvement will be reviewed6. When performance improvement will be evaluatedPerformance Improvement Plans can be implemented when: A formal Performance Appraisal indicates performance improvement is necessary Informal feedback, observations and statistics indicate that performance is not satisfactory You need to evaluate the progress of a new initiative, for example a new system or sales method A plan is required as part of an individual development plan to prepare a team member for promotion or the attainment of a new skill or competencyPerformance Management Competencies: Setting GoalsSupervisors need to communicate organizational goals and how they link to individual and work group per-formance in order to energize their employees to accom-plish desired results. While developing performance plans, supervisors and employees can talk about how employee accomplishments support organizational goals. By aligning employee performance with organizational goals, supervisors direct their employees' efforts toward maximizing accomplishments and supporting the agency's strategic plans.Once the supervisor and employees make these connec-tions, they can agree upon more specific, individual goals and can analyze individual responsibilities. Without the employee's agreement to perform at a certain level, it is very difficult to meet or exceed established goals.Steps for Setting GoalsThe SMART acronym is a useful way of getting objectives right: Specific- objectives should state a desired outcome. What does the employee need to achieve? Measurable- how will the manager and employee know when an objective has been achieved? Achievable- is the objective something the employee is capable of achieving but also challenging? Relevant- do objectives relate to those of the team / department / business? Timebound- when does the objective need to be achieved?

PERFORMANCE FEEDBACK The performance feedback process is ongoing between managers and employees. The exchange of information involves both performance expected and performance exhibited. According to Indiana University Human Resources Service, Constructive feedback can praise good performance or correct poor performance and should always be tied to the performance standards. Getting the facts, then having a face-to-face conversation can provide direction to help solve performance problems.1. ManagementFeedback goes beyond managers. It extends to co-employees and even customers. Encourage your employees to talk to management and report problems to resolve any issues. It is easier to motivate workers in an open culture of communication than if they are afraid to speak up.2. StructureGood performance management is pro-active. Do not wait until a situation gets out of hand before intervening. Make sure employees know that you are watching, and keep feedback frequent. Do not leave it at no news is good news unless you are sure there are not any problems. According to Business MP, A responsible manager ought to be able to set up a scheduleand provide [employees] with constructive assistance.3. ConfidentialityEmployees expect their leaders and managers to keep information confidential. If you break that trust, it is difficult to build it back up and your employees will stop coming to you with problems. Avoid gossip or delegating, and confront any issues yourself, directly with the employees involved. If you stand by your convictions and your employees know they can trust you, they will have more respect for you.4. TimingOften, the best time for feedback happens during day-to-day business. It is important to be prepared for the conversation: do your homework and know the person to whom you are planning to speak. Practice what you are going to say, and use your knowledge to predict their responses and questions. Be sure to choose a private location and keep the conversation confidential. It is best to be prepared, so you might want to take notes with you. Do not be afraid to act immediately in a true emergency, but do not act too quickly if there is time to consider your response.5. Successful FeedbackFor feedback to have a positive outcome, it should be specific rather than general. Generalizations might help you gather information about what the staff is feeling, but it will not solve specific problems. It is important to focus on the behavior instead of the person and make sure you give feedback geared to help and not hurt. You will need to limit the information you give to what your employee can hear and process. If you overload a person, they tend to block you out just to simplify things. Be aware of the effects of your feedback and follow up on the situation to see what changes have been made.

COACHING AND COUNSELING

Supervisors coach theiremployeesto help them learn and grow in their jobs. They create individual development plans to give structure to their employees' efforts to become exemplary performers or to prepare to take on new responsibilities.Why do it? The vast majority of people have a natural need to learn and to grow in order to avoid stagnation. then they find themselves in situations where they are notlearningand growing, they try to create such opportunities or they look for new situations where they believe they will have such opportunities.Good coaching and development practices produce two positive results. First, they tend to raise the level of performance in the workplace as employees polish their existing skills and gain new ones related to the agency's work. Second, as a result, employees tend to be more motivated and less likely to leave.

EverydayCoachingGood coaches seize opportunities to help their employees learn in theirjobsand grow in their careers. They catch employees at the right moment, when they are puzzling over a problem or wrestling with a decision. The supervisor-as-coach does notdothe task orsolve the problemfor an employee, but helps the employee discover a solution.Through coaching, supervisors make good employees better. They invigorate long-term employees whose jobs may have grown stale for them. They help employees find ways to fully use their strengths in their work, or to discover new strengths to apply to the job.Supervisors who are good ateveryday coachingare good at asking questions. They ask open-ended questions that encourage employees to think about situations differently. Are there alternatives? What are they? If you were in the other person's shoes, what would you do? Why do you think this happened? What are the three most important considerations? To what is this situation similar? (Trying to find an analogy) What are the most likely causes? Describe what you saw (or heard, etc.)

IndividualDevelopment PlanningThe purpose of development planning is to build employees' skills so that they can become more effective in their current jobs, get ready to take on greater responsibilities, or prepare to move into other positions. Development plans focus on a specific competency or skill to be enhanced, or an area of knowledge to be acquired.Individualcareer development plansare long-term plans that use developmentaltrainingand assignments as stepping stones to achieving career goals. Over the course of several years, an employee may work on a series of development plans as part of a strategy to ultimately achieve a certain career goal.By contrast,corrective action plansare short-term plans for bringing performance up to standard or for eliminating future episodes of improper conduct. They deal with the "dark side" of performance, whereas development plans deal with the "bright" side.There are a few basic developmental concepts that are useful to know: Development is all about behavior change. If you send employees to training classes, give them books to read, and fill out a form entitled "development plan" for each of them, they will not have developed unless their behaviors on the job have changed in ways that are useful to the agency. If behavior has not changed, development has not happened. Employees are responsible for their own development, of course. But that does not mean that the best way to develop people is to just leave them on their own to figure it out. Very few people thrive under such conditions. You get much better results when you, as supervisor, support your employees' efforts and when there are resources that employees can use to guide their efforts. Development plans can be initiated at any time. They can be initiated by the employee or suggested by the supervisor. They can be based on feedback the employee receives from the supervisor, the employee's customers or from any other source. But it helps to impose some structure on the process. For example, development is more likely to happen if you commit the development plan to writing, identify the skill or knowledge that will be the focus of the plan, and describe how developmental success will be measured. When employees receive candid feedback, they usually learn that there are several areas in which they could become more effective. If you are an overachiever, you would be inclined to set up three or four development plans for an employee to work on simultaneously. Restrain yourself! Working on multiple development plans tends to diffuse your efforts. It does not work. Pick one area to work on, just one, and concentrate on it. The typical, but ineffective, development plan will list some activities the employee should complete: attend a class, check out these web sites, read those articles.Keeping in mindthe first bullet point above, ticking off activities on a checklist is fine, but if behavior has not changed as a result, development has not occurred. There are certain kinds of developmental experiences that are especially powerful in producing behavior change. You will want to pack your development plan with these high-impact types of experiences. Supervisors, it turns out, wield a tremendous amount of influence over their employees. The type of developmental support supervisors provide can spell the difference between growth or stagnation, success or frustration, for their employees.A development plan is like an investment. Supervisors can do things to properly support their employees and, therefore, protect their investments. Employees, too, can take out an "insurance policy" on their development efforts. There are several things they can do to make sure that, once the development plan is written down and agreed to, they will be able to actually reap the benefits of their development work.COUNSELING When these two facts collide, you have a workplace where the poor performance of a few is tolerated and where those employees who are capable performers become increasingly disenchanted and disengaged.Why are supervisors reluctant to address poor performance? Several reasons may be at play: It is not aneasy taskto work through a performance issue with an employee. The employee may get upset when confronted. The supervisor may believe the employee will not change, even if confronted, so why bother? Performance expectations may never have been clear to begin with. The employee may "out argue" the supervisor or file a grievance, etc.But here is the issue: If you, as the supervisor, let poor performance continue unaddressed, you will need to work harder yourself to make up for the slack created by a poor performer. Your unit's performance will go downhill as the poor performer's coworkers become disgruntled. At some point, you may decide to live with the status quo you have created due to inaction, and just accept the fact that you manage an underperforming unit and fatalistically acknowledge the poor performer's continued existence as "just the way it is." This is not a happy ending!So, how can it be made easier for you to address performance problems and increase the likelihood that poor performers will either improve or leave?

CounselingDiscussionsThe purpose of counseling is not to punish poor performing employees but to let them know that their performance is not meeting expectations, and then help them raise their performance to the expected level.Some general principles apply across all situations in which there is a perceived performance problem: Address the problem quickly Do not let a performance problem linger. Counsel the employee as soon as you know there is a problem. You do not need to wait until a scheduled "interim review" or the end-of-year appraisal. One of the cardinal sins of supervision is to save up evidence of poor performance throughout the year and dump it on the employee in the annual appraisal discussion. This is one case where saving is not good. Use your evidence as soon as you acquire it! Deal with it while it is fresh. Look for the cause To solve a problem, first find the cause. Why is the employee missing deadlines? Why are there consistently too many errors in the employee's work? Why is the employee late to work so often? Problem-solve to help the employee identify the cause of the performance problem. Then ask: What will you do differently to address the cause and bring your performance up to expectations? UseFind the Cause of a Performance Problemas a logical problem-solving guide in addressingperformance issues. Place accountability where it belongs If the cause of the employee's performance problem lies with the employee (for example, frequent lateness is due to the employee's difficulty in waking up in the morning), then the employee needs to be held accountable for addressing the cause and correcting the problem. On the other hand, if the cause is located in the work process or equipment (for example, missing deadlines is due to an overly cumbersomework flow), then accountability for fixing the problem will rest with the supervisor. State a fact and then inquire This is a very effective method for engaging the employee during the counseling discussion in solving a performance problem. Using specific facts, neutrally inquire about the problem behavior. For example: Fact: I have noticed that your numbers have dropped during the last month. Inquiry: Can we talk about how that might have happened? Fact: I have noticed that you have been late for work three days out of every five for the past two weeks. Your leaverecord showsa pattern of using sick and vacation leave within the month that it's accrued. Inquiry: What is making it difficult for you to be at work during your regular work hours?For step-by-step suggestions for handling performancecounseling discussionswith employees, check outFormats for Counseling Discussions.

CorrectiveAction PlansCorrective action plansare short-term action plans for bringing employees' performance up to expectations in their currentjobs. You should prepare a corrective action plan whenever an employee's performance falls below expectations. The performance problem should be a persistent problem, not an isolated or one- off incident.Begin documenting the problem as soon as it is noticed and document any discussions of the problem with the employee. The reason for documenting is that, if the problem continues despite the supervisor's and the employee's efforts to correct it, it may be necessary to take disciplinary action.Supervisors should keep notes concerning performance observations and follow-up discussions. To complete the documentation loop, the corrective action plan should be attached to the end-of-cycle appraisal and the ongoing documentation of the performance issue should be summarized in the appraisal.The corrective action plan can be a standardized form or a memo. Its format is not important so long as it includes the following information: What is the problem? Concisely describe what needs improvement, why, and the consequences of failure to improve How will improvement be measured? Describe how you will know when the employee's performance has risen to the point where it meets expectations. Refer to the specific results expectation or behavioral expectation on the employee's work plan that is in question. What will the employee do? Describe the action steps the employee has agreed to take to improve performance. Note the target dates for completing these actions. Are any resources required? Describe any resources the employee will need to carry out the actions agreed upon or any support you have agreed to provide. When will the supervisor follow up? State when you will meet again with the employee to check on progress. Schedule and conduct follow-up discussions at frequent intervals. If a long interval is set for a follow-up meeting, you are communicating an expectation that it will take a while for the employee to make the change. Tighter time frames place a greater sense of urgency on the need to change.

MODEL QUESTION PAPER

Q.1 What is Performance planning? Q.2 Define performance planning and goal setting ?Q.3 Explain the process of performance planning ?Q.4 how does training helps in performance management?Q.5 write a short on any two. 1. Coaching2. Counseling3. Feedback

UNIT 3Effective Performance Management: Doing What Comes NaturallyThere is a famous story about a naive student in his first English literature course who was worried because he didn't know what prose was. When he found out that prose was ordinary speech, he exclaimed, " Wow! I've been speaking prose all my life!" Managing performance well is like speaking prose. Many managers have been "speaking" and practicing effective performance management naturally all their supervisory lives, but don't know it!Some people mistakenly assume that performance management is concerned only with following regulatory requirements to appraise and rate performance. Actually, assigning ratings of record is only one part of the overall process (and perhaps the least important part). Performance management is the systematic process of: planning work and setting expectations, continually monitoring performance, developing the capacity to perform, periodically rating performance in a summary fashion, and rewarding good performance.The revisions made in 1995 to the Governmentwide performance appraisal and awards regulations support "natural" performance management. Great care was taken to ensure that the requirements those regulations establish would complement and not conflict with the kinds of activities and actions effective managers are practicing as a matter of course.PlanningEffective managers plan their work. Planning means setting performance expectations and goals for groups and individuals to channel their efforts toward achieving organizational objectives. Getting employees involved in the planning process will help them understand the goals of the organization, what needs to be done, why it needs to be done, and how well it should be done.The regulatory requirements for planning employees' performance include establishing the elements and standards of their performance appraisal plans. Performance elements and standards should be measurable, understandable, verifiable, equitable, and achievable. Through critical elements, employees are held accountable as individuals for work assignments or responsibilities. Employee performance plans should be flexible so that they can be adjusted for changing program objectives and work requirements. When used effectively, these plans can be beneficial working documents that are discussed often, and not merely paperwork that is filed in a drawer and seen only when ratings of record are required.MonitoringEffective managers see to it that assignments and projects are monitored continually. Monitoring well means consistently measuring performance and providing ongoing feedback to employees and work groups on their progress toward reaching their goals.Regulatory requirements for monitoring performance include conducting progress reviews with employees where their performance is compared against their elements and standards. Ongoing monitoring provides the supervisor the opportunity to check how well employees are meeting predetermined standards and to make changes to unrealistic or problematic standards. And by monitoring continually, supervisors can identify unacceptable performance at any time during the appraisal period and provide assistance to address such performance rather than wait until the end of the period when summary rating levels are assigned.DevelopingEffective managers evaluate and address the developmental needs of their employees. Developing in this instance means increasing the capacity to perform through training, giving assignments that introduce new skills or higher levels of responsibility, improving work processes, or other methods. Providing employees with training and developmental opportunities encourages good performance, strengthens job-related skills and competencies, and helps employees keep up with changes in the workplace, such as the introduction of new technology.Carrying out the processes of performance management provides an excellent opportunity for supervisors and employees to identify developmental needs. While planning and monitoring work, deficiencies in performance become evident and should be addressed. Areas for improving good performance also stand out, and action can be taken to help successful employees improve even further.RatingAn effective manager will, from time to time, find it useful to summarize employee performance. This helps the manager look at and compare performance over time or across a set of employees. Organizations need to know who their best performers are.Within the context of formal performance appraisal requirements, rating means evaluating employee or group performance against the elements and standards in an employee's performance plan and assigning a summary rating of record. The rating of record is assigned according to procedures included in the organization's appraisal program. It is based on work performed during an entire appraisal period. The rating of record has a bearing on various other personnel actions, such as granting within-grade pay increases and determining additional retention service credit in a reduction in force.RewardingEffective managers understand the importance of using rewards well. Rewarding means recognizing employees, individually and as members of groups, for their performance and acknowledging their contributions to the agency's mission. A basic principle of effective management is that all behavior is controlled by its consequences. Those consequences can and should be both formal and informal and both positive and negative.Good managers don't wait for their organization to solicit nominations for formal awards before recognizing good performance. Recognition is an ongoing, natural part of day-to-day experience. A lot of the actions that reward good performance like saying "Thank you" don't require a specific regulatory authority. Nonetheless, awards regulations provide a broad range of forms that more formal rewards can take, such as cash, time off, and many nonmonetary items. The regulations also cover a variety of contributions that can be rewarded, from suggestions to group accomplishments.Performance Management as ProseGood managers have been speaking and practicing effective performance management all their lives, executing each key component process well. They not only set goals and plan work routinely, they measure progress toward those goals and give feedback to employees. They set high standards, but they also take care to develop the skills needed to reach them. And they use formal and informal rewards to recognize the behavior and results that accomplish their mission. All five components working together and supporting each other achieve natural, effective performance management.

PERFORMANCE MEASUREMENT

Put simply, performance measurement is the regular collection of data to assess whether the correct processes are being performed and desired results are being achieved.The Turning Point Guidebook for Performance Measurement(PDF - 81 pages) provides several definitions of performance measurement including: Selection and use of quantitative measures that provide information about critical aspects of activities, including their effect on patients. Measures of what actually happened can be compared to goals set by your organization. Performance measurement analyzes the success of a work group, program, or organization's efforts by comparing data on what actually happened to what was planned or intended. Performance measurement asks, Is progress being made toward desired goals? Are appropriate activities being undertaken to promote achieving those goals? Are there problem areas that need attention? Successful efforts that can serve as a model for others?The focus of performance measurement is less on the individual provider and more on the organization as a whole to evaluate whether an adequate structure and correct processes are in place to achieve the orgWhy Measure Performance?There are many reasons why an organization should measure performance: Quality Improvement. Measuring performance can tell you what youre doing well so you can share your successes and also reveal areas where you need to make adjustments. Measuring performance tells you whether you are achieving your ultimate goal of improving patient outcomes. Transparency.Stakeholders outside of the organization--patients, funders, patient advocates--want to know about the quality of care being provided. Patients want information that allows them to make informed choices about theirhealth care services. Sharing performance information can also help an organization gain support and funding for its programs. Accreditation.Organizations, such as NCQA, the Joint Commission, and the Accreditation Association forAmbulatory Health Care(AAAHC), evaluate health care provider organizations to provide accreditation or certification signifying that those places meet certain performance standards. Recognition as a Patient Centered Medical Home (PCMH).A Patient Centered MedicalHome(sometimes known as a Primary Care Medical Home) is defined as an approach to providing comprehensive primary carethat facilitates partnerships between individual patients, and their personal physicians, and when appropriate, the patients family (Joint Principles of the Patient Centered Medical Home). NCQA, the Joint Commission, and AAAHC offer accreditation programs for recognition as a Patient Centered Medical Home. Participation in financial incentive programs or demonstrations.For example,The Centers for Medicare and Medicaid Electronic Health Record Incentive Programsprovide incentive payments to eligible professionals, eligible hospitals andcritical access hospitals(CAHs) as they adopt, implement, upgrade or demonstratemeaningful useof certifiedElectronic Health Records(EHR) technology. Eligible professionals and hospitals who participate in the program must be able to record, store, and reportclinical quality measures(CQM), which CMS defines as the processes, experience, and/or outcomes of patient care, observations or treatment that relate to one or more quality aims for health care such as effective, safe, efficient, patient-centered, equitable, and timely care. How Can We Better Manage Performance?After measuring performance, the next step is to use the information to improve care. Performance measures provide a picture of your organizations quality, but further research will be necessary to determine the factors that influence the measure results and how you can learn from positive results and make changes where performance is not at an optimal level.Performance managementis when an organization uses performance measures and standards to achieve desired results. It is a forward-looking, continuous process. Performance management can be implemented at the program, organization, community, and state levels. four components of performance management: Performance standards: Establishment of organizational standards, goals, and targets Performance measures: Development, application, and use of performance measures to assess achievement of standards Reporting of progress: Documentation and reporting of progress in meeting standards Quality improvement: Establishment of a program or process to achieve quality improvement based on performance standards, measurements, and reports

Choosing goals for performance managementIn selecting initial targets for performance management, your organization should ask some basicquestions(based onInstitute for Healthcare Improvementmethodology):1. What are we trying to accomplish?2. How will we know that a change is an improvement?3. What changes can we make that will result in improvement?What Does a Performance Measure Look Like?A performance measure has several components: Numerator: The number of patients who meet the definition of the measure. Denominator: The number of patients who are considered eligible Exclusion: Certain patients who should be subtracted from the denominator of an individual measure.Types of Performance MeasuresHealth organizations like yours have been conducting evaluations and assessments for years. Some of these tools can help you understand how well your organization is conducting your current set of QI activities and others can help your organization understand whether there is an altogether different set of activities you should be considering. Both of these are important components of providing quality care. The use of diverse tools will help provide a comprehensive picture of health care quality at your organization. There are three main types of measures: Structural: Measures the organizations capacity and the conditions in which care is provided by looking at factors such as an organizations staff, facilities, or health IT systems.Example: Adoption of medication e-prescribing. Process: Measures how services are provided, i.e., whether an activity proven to benefit patients was performed, such as writing a prescription or administering a drug.Example:Cervical Cancer Screening- The percentage of women who had a cervical cancer screening with a Pap test. Outcome: Measures the results of health care. This could include whether the patients health improved or whether the patient was satisfied with the services received.Example: Diabetes - Average hemoglobin A1c level for population of patients with diabetes.Additional measures include: Balancing Measures: Ensures that if changes are made to one part of the system, it doesnt cause problems in another part of the system.Example: For increasing compliance with regular visits for preventive care or required testing make sure that scheduling capacity is not exceeded.

CONDUCTING PERFORMANCE REVIEW DISCUSSIONS The effective performance appraisal is a planning activity that is shared by the employee and the supervisor. The performance appraisal process can provide both the employee and the appraiser with a sense of accomplishment, direction in priorities and commitment to a specific career path. Employees need to know how they are performing in regards to the goals of their job, department and organization. Avoid the assumption that an employee knows where they stand.The following is a list of recommended activities in preparing and conducting a performance review discussion: Choose a positive environment and help the employee feel at ease. When discussing areas for improvement, discuss methods and objectives for improvement. Discuss possibilities for advancement, the employees goals and the steps necessary to achieve these goals. Allow the employee to discuss the review and provide input for further development and organizational goals. Restate the goals and objectives that have been recommended. Summarize and review the important points of the discussion. Make sure employee reviews the appraisal and provides feedback. Have the employee sign the appraisal showing their acknowledgment that the appraisal has been discussed with them (their signature does not signify agreement with content). When giving feedback: Describe the behavior and avoid making personal judgments. Assume a posture of helpfulness and partnership for success. Use active listening skills to understand what is important to the employee. Give specific examples of acceptable behavior and unacceptable behavior.The following actions should be avoided when preparing and conducting an employee performance review discussion: Dont rush through the appraisal process, carefully record accurate information that truly reflects the individuals performance. Dont focus on one specific incident or time period, consider the entire period which the appraisal covers.

Avoid the halo and horn effects. Just because the employee performs badly in one area does not make his overall performance bad. The same goes for good performance. Avoid bias about the employee based on your personal feelings toward that individual. Dont base current performance solely on past performance; focus on the current appraisal period. Dont inflate scores of a substandard performer to avoid confrontation or to serve as a motivational tool.

HARNESSING PERFORMANCE MANAGEMENT SYSTEM FOR PERFORMANCE IMPROVEMENT

For a performance management system to be effective, employee progress and performance must be continuously monitored. Monitoring day-to-day performance does not mean watching over every aspect of how employees carry out assigned activities and tasks. Managers should not micro-manage employees, but rather focus their attention on results achieved, as well as individual behaviors and team dynamics affecting the work environment. During this phase, the employee and manager should meet regularly to: Assess progress towards meeting performance objectives Identify any barriers that may prevent the employee from accomplishing performance objectives and what needs to be done to overcome them Share feedback on progress relative to the goals Identify any changes that may be required to the work plan as a result of a shift in organization priorities or if the employee is required to take on new responsibilities Determine if any extra support is required from the manager or others to assist the employee in achieving his or her objectives

Continuous coachingPerformance management includes coaching employees to address concerns and issues related to performance so that there is a positive contribution to the organization. Coaching means providing direction, guidance, and support as required on assigned activities and tasks. As a coach, managers need to recognize strengths and weaknesses of employees and work with employees to identify opportunities and methods to maximize strengths and improve weak areas. The role of the coach is to demonstrate skills and to give the employee feedback, and reassurance while he or she practices new skills. Good listening skills on the part of the coach, together with the ability to deliver honest feedback, are crucial. In a coaching role, you are not expected to have all the answers. The strategic power of any coaching dialogue lies primarily in the coach's ability to ask the right questions.Providing feedbackPositive feedback involves telling someone about good performance. Make this feedback timely, specific and frequent. Recognition for effective performance is a powerful motivator.Constructive feedback alerts an individual to an area in which performance could improve. It is descriptive and should always be directed to the action, not the person. The main purpose of constructive feedback is to help people understand where they stand in relation to expected and/or productive job and workplace behavior.Often, it is the positive and supportive feedback that is most readily and easily shared, while finding the right way to provide constructive feedback to address a particular performance issue can be more daunting. If an employee is not meeting performance expectations, managers need to provide constructive and honest feedback. It's important to do this when an issue first arises - before it escalates into a significant problem. Here are a few points to consider when giving constructive feedback:Prepare Think through what you want to address in the meeting, confirm the facts of the performance issue and make sure you know and can describe what happened or is happening Be clear about what the issue is and about the consequences if the employee's performance does not improve Plan to meet in a location where there will be privacy and minimal interruptions (note that in a unionized environment, you may have to invite a union representative to be with the employee during the discussion) Be calm, so that you can approach the discussion objectively and with clarityState the facts Using a non-threatening tone, describe the performance issue in an objective, factual, nonjudgmental way,providing specific examples Identify the negative impact on people in the workplace or on the organizationYou are always late.This statement is general and judgmental. It does not address the performance issue effectively.You were late 3 times last week. When you arrived late for the staff meeting, you missed an important discussion about our new fundraising campaign.This statement is factual and specifically addresses the performance issue and the impact of being late.Listen Have the employee describe the situation from their perspective and provide an explanation. Be open to any new insights that may arise. Respond to denial, blaming of others, etc. by restating factual information and reviewing the negative impacts of the performance issue.Although we may sympathize with an employees unique personal circumstances and their reasons for why they are not performing, it is important to remain focused on the performance issue. If you alter what is required of one employee (i.e. bend the rules) you will have to be prepared to do so for all employees. As a performance manager, try to avoid putting yourself in the position to have to judge which circumstances warrant special treatment and those that do not.Agree on an action plan Ask the employee for their suggestions for addressing the issue and offer your suggestions if necessary Agree on a specific plan of action: including what the employee will do, how they plan to do it and within what time period Document the action plan and attach to employees performance management file Specify the consequences for the employee if the performance issue is not resolvedFollow up Monitor results and meet periodically to discuss progress Provide positive reinforcement for improvement and continue to offer support If the issue has not improved or been resolved over the specified time period, enact the consequences as discussed in the action plan

MODEL QUESTION PAPERQ.1 How to Establish and operationalise performance management ? Q.2 Define performance measurement process ?Q.3 Explain the conducting performance review?Q.4 how does harnessing help in performance improvement in performance management?

UNIT -4

Performance management strategic and interventions-

Information-based InterventionInterventions that define : Activities that specify or clarify the vision, mission, purpose, process, products, services,marketposition, roles, relationships, responsibilities, outcomes, expectations, and so on. Examples: holding sessions to create vision statements; confirming market direction and market niche; mutuallysetting performance goals. This intervention is delivered when people are unclear, disagree, or have different expectations; there are conflicting objectives; or people do not have a shared understanding.Interventions that inform: Activities that communicate goals, objectives, expectations, results, discrepancies, and so on. Examples: producing internal newsletters; holding debriefing sessions; giving feedback. This intervention is delivered when information has changed, the people have changed, or the people are uninformed, and the consequence is poor performance; or people don't get the information they need.

Interventions that document: Activities that codify information (to preserve it and make it accessible. Examples: setting up libraries; creating manuals, expert systems, job aids, and decision guides. This intervention is delivered when information is not accessible over time or is too complex; job aids, manuals, help screens, and so forth are lacking or inadequate, inaccurate, or hard to access.Consequences-based InterventionInterventions that reward: Activities and programs that induce and maintain desired behaviors, eliminate undesirable behaviors, and reward desired outcomes. Examples: holding public ceremonies and annual recognition events;paying for performance. This intervention is delivered when current incentives either reinforce the wrong behaviors or ignore the desired behaviors; or there are few incentives for people to-do beater, more, or differently.Intervention that measure: Activities and systems that provide metrics and benchmarks so people can monitor performance and have a basis to evaluate it. Examples: developing a scorecard; tracking means and variance in performance over time. This intervention is delivered when people dont know what criteria are being used to judge productivity, performance, value, and so on, and they could better control their own performance if they knew what the criteria were; measures of good performance are lacking; or measures are inappropriate.

Interventions that enforce: Activities that actualize consequences and achieve compliance. Example: policing; reviewing; double-checking; suspending; removing; withholding pay. This intervention is delivered when consequences for poor performance or unacceptable behavior are hidden or not enforced.

REWARD BASED PERFORMANCE MANAGEMENT

Reward managementis concerned with theformulationandimplementationofstrategiesandpoliciesthat aim to reward people fairly, equitably and consistently in accordance with their value to the organization.[1]Rewardmanagementconsists of analysing and controlling employeeremuneration,compensationand all of the otherbenefitsfor the employees. Reward management aims to create and efficiently operate a reward structure for an organisation. Reward structure usually consists of pay policy and practices, salary and payrolladministration, total reward, minimum wage, executive pay and team rewardTypes of rewardsRewards serve many purposes in organisations. They serve to build a better employment deal, hold on to good employees and to reduce turnover. The principal goal is to increase people's willingness to work in ones company, to enhance their productivity. Most people assimilate "rewards", with salary raise or bonuses, but this is only one kind of reward, Extrinsic reward. Studies proves that salespeople prefer pay raises because they feel frustrated by their inability to obtain other rewards,[8]but this behavior can be modified by applying a complete reward strategy.There are two kinds of rewards:1. Extrinsic rewards: concrete rewards that employee receive. Bonuses: Usually annually, Bonuses motivates the employee to put in all endeavours and efforts during the year to achieve more than a satisfactory appraisal that increases the chance of earning several salaries as lump sum. The scheme of bonuses varies within organizations; some organizations ensure fixed bonuses which eliminate the element of asymmetricinformation, conversely, other organizations deal with bonuses in terms of performance which is subjective and may develop some sort of bias which may discourage employees and create setback. Therefore, managers must be extra cautious and unbiased. Salary raise: Is achieved after hard work and effort of employees, attaining and acquiring new skills or academic certificates and as appreciation for employees duty (yearly increments) in an organization. This type of reward is beneficial for the reason that it motivates employees in developing their skills and competence which is also an investment for the organization due to increased productivity and performance. This type of reward offers long-term satisfaction to employees. Nevertheless, managers must also be fair and equal with employees serving the organization and eliminate the possibility of adverse selection where some employees can be treated superior or inferior to others. Gifts: Are considered short-term. Mainly presented as a token of appreciation for an achievement or obtaining an organizations desired goal. Any employee would appreciate a tangible matter that boosts their self-esteem for the reason of recognition and appreciation from the management. This type of reward basically provides a clear vision of the employees correct path and motivates employee into stabilising or increasing their efforts to achieve higher returns and attainments. Promotion: Quite similar to the former type of reward. Promotions tend to effect the long-term satisfaction of employees. This can be done by elevating the employee to a higher stage and offering a title with increased accountability and responsibility due to employee efforts, behaviour and period serving a specific organization. This type of reward is vital for the main reason of redundancy and routine. The employee is motivated in this type of reward to contribute all his efforts in order to gain managements trust and acquire their delegation and responsibility. The issue revolved around promotion is adverse selection and managers must be fair and reasonable in promoting their employees. Other kinds of tangible rewards2. Intrinsic rewards: tend to give personal satisfaction to individual Information / feedback: Also a significant type of reward that successful and effective managers never neglect. This type of rewards offers guidance to employees whether positive (remain on track) or negative (guidance to the correct path). This also creates a bond and adds value to the relationship of managers and employees. Recognition: Recognition Is recognizing an employees performance by verbal appreciation. This type of reward may take the presence of being formal for example meeting or informal such as a pat on the back to boost employees self-esteem and happiness which will result into additional contributing efforts. Trust/empowerment: in any society or organization, trust is a vital aspect between living individuals in order to add value to any relationship. This form of reliance is essential in order to complete tasks successfully. Also, takes place in empowerment when managers delegate tasks to employees. This adds importance to an employee where his decisions and actions are reflected. Therefore, this reward may benefit organizations for the idea of two minds better than one.Intrinsic rewards makes the employee feel better in the organization, while Extrinsic rewards focus on the performance and activities of the employee in order to attain a certain outcome. The principal difficulty is to find a balance between employees' performance (extrinsic) and happiness (intrinsic).[10]The reward also needs to be according to the employees personality. For instance, a sports fan will be really happy to get some tickets for the next big match. However a mother who passes all her time with her children, may not use them and therefore they will be wasted.When rewarding one, the manager needs to choose if he wants to rewards an Individual, a Team or a whole Organization. One will choose the reward scope in harmony with the work that has been achieved. Individual Base pay, incentives, benefits Rewards attendance, performance, competence Team: team bonus, rewards group cooperation Organization: profit-sharing, shares, gain-sharingSEVEN STEPS TO SUCCESSFUL PERFORMANCE-BASED REWARDS1. DEVELOP CLEAR EXPECTA1TIONS.Before they can develop effective performance-based rewards, senior management must know what it expects of employees and be able to articulate those expectations through clearly defined goals. Because overall organizational goals may not apply to all employees, it is important to break down broad organization goals into specific goals for each division, department, group and, sometimes, individual employees. Big Foods understood this need and communicated its priorities to its sales force by providing the highest per unit incentive products in its Develop category.2. CREATE A CLEAR LINE OF SIGHT.Employees must see that their direct efforts will impact the results that management wants. No one wants to be held accountable for something they cannot directly effect. With the proper training and direction, the more experienced sales people in Big Foods were quickly able to redirect their sales efforts to increase market share in the develop productlines in order to earn worthwhile incentive payouts.3. SET ACHIEVABLE GOALS. Performance-based rewards must be tied to either individual or group goals that have a reasonable chance of being achieved. If the goals are such a stretch that most employees believe that they cannot be attained, the program is doomed from the outset. Few will be motivated to try to achieve such goals; others will become discouraged early on. On the other hand, goals should not be so easy that incentives are paid for results that would have otherwise been achieved through normal effort. To prevent either of these scenarios, Big Foods trained employees to sell its new products and to recognize the characteristics of the customers most likely to buy them. Through thetraining program, management communicated to the sales force the potential of the new products and convinced them of the probability of success.4.ESTABLISH A CREDEBLE MEASUREMENT SYSTEM.Sales incentive plans, like the one developed by Big Foods, are among the easiest performance-based rewards programs to establish because sales can be measured quantitatively. In all types of performance-based rewards programs, it is essential to provide quantitative measures of results. The less quantifiable the measurement, the greater the role of subjective judgment in deciding rewards, and the greater the potential for dispute and participant dissatisfaction. If performance-based rewards are to succeed, participants must have faith in the fairness of the measurement system. In addition, the calculation of the measurement should be understood and agreed upon by both management and participants at the beginning of the performance period.In many cases, the performance of staff professionals is measured using Management by Objectives, which includes both quantitative and qualitative goals. In these situations, a company must rigorously establish qualitative measures that do not leave too much of an employee's performance to supervisory discretion. When much of the appraisal is subject to judgment, the credibility of the performance-based program is at risk. Employees are concerned that management can manipulate the results to reward those they favor instead of those whose performance is outstanding. EMPOWER EMPLOYEES.Employees need to believe not only that the goals against which theyre measured and rewarded are achievable, but that they are capable of achieving those goals. Have employees been adequately trained in the skills that they need for superior performance? Do employees have the information they need to make intelligent decisions? Are employees empowered to make decisions on their own? Are other departments cooperating and providing these employees with information on a timely basis? In short, is the entire system geared to maximum productivity, communication and cooperation? If the answers to these questions are no, companies must be prepared to see the incentive system backfire and result in more stagnation, resentment and mistrust of management.To avoid this, Big Foods segmented the marketplace based on its new product categories (Develop, Maintain and Harvest) and provided employees with the latestmarketresearch. Big Foods also focused its more seasoned sales people on the Develop products while assigning the less experienced sales people to the Maintain and Harvest product lines. This approach not only freed the experienced sales people to devote more time to the new products, it provided a better training opportunity to less experienced personnel. Although the Maintain and Harvest products had lower per unit incentives, these products were easier to sell in an already established marketplace.6. MAKE REWARDS MEANINGFUL.Researchers in the field of compensation have long held that, for incentives to be truly effective, the actual reward must be significant--that is, 15% to 20% of base pay. Big Foods set its annual target awards at 25% of base pay for achieving goal; however, the award could increase to as much as 40% of base pay for superior performance. This was a significant increase over the old plan which had a maximum award of 30% of base pay. Performance-based rewards programs that provide marginal rewards-that is, less than 10% of base pay-are rarely motivational enough to change behavior and are probably not worth the trouble and expense involved in implementation.7. MAKE PAYOUTS IMMEDIATE.There should be as little time as possible betweenemployees performanceand the related payout. Employees need to "feel" the impact of their efforts by quickly experiencing the results.Many performance-based rewards programs are based on full-year performance results because it makes sense from a management point of view. After all,company performance is most often judged on annual results. However, for the connection between performance and reward to be truly motivational, companies should strive for a much shorter time frame for incentive payouts whenever possible for example, on a quarterly or semiannual (as Big Foods has chosen to do) basis. This is particularly important in companies developing incentives for lower-level, nonexempt employees. The time from performance to payout for this population should be as short as possible. Unlike exempt employees who tend to be accustomed to annual incentive systems, nonexempt employees often live from paycheck to paycheck and need to see an immediate connection between their efforts and their rewards.These seven steps should guide every performance-based rewards program from gain sharing plans that reward production workers for minimizing production costs to stock-based programs that reward executives for increasing shareholder value. No matter what type of performance-based rewards program a company adopts, these steps must be completed and reviewed periodically to ensure that the program is achieving its objectives.

CAREER BASED PERFORMANCE MANAGEMENT

Career DevelopmentCompetency-based Career Developmentis a planned system to link individual career needs with the organizations workforce requirements. From the employee perspective, they are looking for career opportunities that address their strengths, support development, provide challenges and match personal interests, values and preferred working styles. The organization on the other hand is looking to have employees develop themselves in a way the addresses the organizational needs. Therefore, puttingcareer developmenttools and processes in place to highlight the options and career paths available to employees is in both the organizations as well as the employees best interests.

How Competencies Support Career Development

From theemployees perspective, competencies: Define the key requirements for successful performance within jobs Support the identification of potential career paths within and across job families Allow employees to plan their careers, based on their interests as well as strengths and gaps in their personal competency inventory Support employees in determining and implementing targetedlearning and developmentprograms in line with their interests and competency gaps Increase engagement and a sense of empowerment, due to their ability to more effectively plan and manage their careers

From theorganizations perspective, competencies:

Serve as a foundation for developing tools and programs to supportemployee career development, for example:

Assessment tools and processes to support employee / job matching Career development self-help guides and resources for learning and development Coaching and mentoring programs Career resource centers and counseling Collaborative learning,knowledge sharing, communities of practice e.g., through social networking tools, wikis, etc. Formal structured development programs for job groups (job rotation, in-class courses, remote on-line learning, mentoring,tuition reimbursement)

Career Development versus Succession PlanningCareer Development traditionally has been driven primarily by employees. Organizations provide the frameworks, tools and processes, but the responsibility rests with employees to take advantage of these to advance in their careers.Succession Management, on the other hand, has traditionally been management driven. Key roles are identified1, and ranked lists of suitable candidates are prepared based on their existing competencies and / or potential to perform in the targeted roles or levels. Potential to perform can be identified in a number of ways: past performance in career track positions; supervisory assessments of potential; standardized assessment programs (e.g., assessment centres); etc. The lists are used to appoint candidates as positions become available.

More recently, however, the lines between the traditional concepts of Career Development and Succession Planning have blurred. Organizations are instituting programs that allow employees to progress through a phased program of development aimed at increasing employee competencies and preparing them to take on increased responsibility. These programs typically include: formalized in-class training; planned work assignments; assessments at key stages; and, gradation defined through some form of assessment or certification, and / or appointment to targeted roles or levels.Technology has significantly improved the ability of organizations to address both employee needs for development, while ensuring developmental activities align with organizational goals. Tools likemake it possible to implement blended stream-lined approaches that support all stakeholder needs. This eliminates duplication of effort and ensures information on employees competencies are leveraged to achieve both personal and organization goals. The subsequent blogs provide a more detailed look how competencies enhance the Career Planning and Development.

MODEL QUESTION PAPERQ.1 what are Performance management strategic and interventions?

Q.2 Define reward based performance management?

Q.3 Explain the career based performance management?

Q.4 what do you understand by term based performance management?

UNIT -5Organizations should do a cultural performancemanagement analysis before embarking on a performance management initiative. In a cultural performance management analysis, we classify the organization on a number of cultural dimensions. There are several frameworks by which to describe and categorize cultures. Often these frameworks use dimensions between two extremes to classify a culture on that specific characteristic. Most of the frameworks focus on describing national cultures, and deal with many social issues. However, some of the dimensions used also apply to corporate cultures, and they affect the way performance management should be implemented. See Figure 1 for an example.

It is important to realize that there is no right or wrong culture in the cultural performance management analysis. Every score is good; the key is that you are aware of the characteristics of your own corporate culture.In the example, company 1, a manufacturer, is a classic public company with a strong U.S.-based business culture. The company has a very individualized orientation, and everyone has the chance to work him or herself up (meritocracy). It is very rules-oriented; there is a process for everything. Given its public nature, it has a relatively short-term focus; new business strategies need topay off within a fiscal year. The company tends toward McGregors Theory Y, where managers assume their people are motivated to do a good job if recognized for it. The company is relatively internally focused, and plans its business using a traditional budget. This company benefits from the typical best practices of performance management: top-down strategy implementations, openly shared feedback with a ranking of the best-scoring people in sales. The bonus program, based on over performing on the goals, can be found on the companys intranet, next to all other procedural descriptions.Applying this style of performance management in company 2, a manufacturer about the same size as company 1, would not be successful. Company 2 has been a family-owned business for multiple generations. Senior management knows most of the employees; many of them have worked for the company their entire professional lives. The next generation of ownership is growing up and the company needs to secure their future too. The culture of the company is externally focused, and it can only survive in themarket due to an extreme customer focus. This company has a very different decision-making process. Senior management will ask for input from a few trusted employees, and then the family will make a decision. There are performance indicators, but these are mostly aimed at how the company is performing in the eyes of the customers. Information is shared with the staff, but usually verbally in informal meetings. Rewards are not directly tied to performance in a specific period; the family rewards loyalty and provides bonuses when deemed necessary.Cultural alignment doesnt always guarantee success. For instance, if company 2 is making a loss, perhaps some elements of the performance management practices of company 1 need to be adopted. Conversely, if company 1 is going through an extreme growth phase, key people need to be retained to manage that growth, and these staff members must feel part of the inner circle.The cultural performance management analysis shows that the corporate culture drives how performance management should be implemented. But it also works the other way around, as measurement drives behavior. If there are cultural aspects that are undesirable, a measurement process might change that. If there is too much of a group focus, individual performance indicators may help. If there is too much of a long-term focus, short-term targets may help. If relationship focus turns into nepotism, more uniform reward processes may be needed. Performance management becomes change management, and dealing with undesirable behaviors is part of that.Every progressive organization needs a management system that enables it to formulate its strategy, to implement processes that support operations, to provide performance evaluation and operational control, and to learn and change. Such culture performance management (CPM) systems consist of metrics, methodologies, processes, and systems to manage performance at the culture level. These systems can provide organizations with a wide variety of strategic and operational benefits.Examples of strategic benefits include: All parts of an organization can focus on the same culture goals; Staff can understand how their choices, when combined with those of other business units, willbetter achieve organizational goals; An organization can increase its ability to respond to changes in the external operating environment; Interests of all stakeholders are aligned; The workforce is more capable and motivated; and An organization can better allocate resources.

Dresners six performance-directed-culture criteria on the effectiveness of CPM systems1. Alignment with Mission and VisionAn organizations mission and vision should be clear so contributors understand how their actions support or detract from them. Some organizations create enterprise goals to help them realize their vision and, in a coordinated effort, create goals for successive parts of the organizationsometimes even for individualsto help hem align with the enterprise goals. Others allow individual parts of the organization to create their own goals that will align with the mission and vision. Sometimes this works well; sometimes it doesnt. We asked our survey respondents which of four maturity levels existed in their organizations with respect to alignment of mission and vision. Figure 2 shows that organization maturity varies greatly, but the highest percentage of organizations is at level 3: Their enterprise mission and vision have been defined and articulated, but not everyone agrees with or is contributing to them..2. Transparency and AccountabilityTo foster a performance culture, companies need enhanced transparency and accountability within their organization. This entails having full, accurate, and timely disclosure of information within each area and throughout the company. Accompanying this is the need for managers to report, explain, and be answerable for the consequences of their actions.The results of our survey indicate that theres limited transparency in many organizations: 21% of the respondents believe their organization has no transparency or accountability, 40% believe theres transparency within functional areas but not across the organization, 17% say there are transparency and accountability across many functional areas that collaborate well, and 22% say there are general transparency and accountability throughout the organization and that they are accepted as cultural tenets. Is the level of organizational maturity with respect to accountability and transparency related to the benefits organizations receive from their CPM systems?

3.Action on InsightsBusinesses often achieve insight by examining data and information gathered through internal systems (often CPM systems) and feedback from customers. But such insight is of no value unless someone acts on it. If a companydesigns a new toy and determines that a certain demographic group will greatly demand the toy (insight), unless the company takes action on the insight (marketing and selling to the demographic), it wont benefit from the insight (increased sales). Organizations that successfully complete this cycle regularly are referred to as learning organizations.To better understand the relationship between acting on insights and receiving benefits from CPM systems, we asked survey respondents how their organizations respond to new information. An important prerequisite for attaining benefits from insights is the ability of an organization to learn from new information and adjust its plans and operations based on that information.

4.Conflict ResolutionDresners fourth criterion for a performance-directed culture concerns conflict resolution. Effective conflict resolution requires the identification of issues, consideration of all factors involved, and the resolution of the conflict on a fair and reasonable basis. Unfortunately, effective conflict resolution is the exception rather than the norm. For example, 15% of our respondents say that conflicting and competing efforts are the norm in their companies; 40% say employees put on the appearance of cooperation but are often guided by their own selfinterests; 28% say that when conflicts are identified they are resolved on an impromptu, but fair, basis; and 17% say their companies have established effective mechanismsfor resolving conflicts.

5.Common Trust in DataIn many organizations, theres more than one version of the truth because of multiple, competing sources of data. There may be several ERP systems that define and track data elements differently, or individual data may be extracted from an ERP system at different points in time. The lack of a single, consistent set of data can lead people to distrust it. Our respondents seem to be split: 10% say that data is universally distrusted at their companies, 31% say data is generally distrusted, 50% say data is generally trusted, and 9% say its universally trusted. A lack of trust in data is important because it can impact decision making negatively. We examined if there seemed to be a relationship between those organizations that expressed trust in data and those that expressed benefits from a CPM system. In this case, we asked the respondents how strongly they trust their data and examined the relationship of this trust to benefits attainedfrom the system. We got mixed results with regard to having a common trust in data and achieving benefits. Organizations in which there are multiple competing sources of data are less likely to report benefits from their CPM system than those in which theres a universal mistrust of data, and organizations in which data is trusted are more likely to see benefits from their CPM systems. Organizations that express at least a general trust in their data are much more likely to report benefits from their CPM system than those that indicated they dont trust their data. One explanation for this finding could be that if the data that underpins the CPM system isnt trusted, then the results from the CPM system would likely be viewed as flawed. This explanation holds for the next category where data was universally trusted and81% of the respondents indicated they had received benefits.

6.Availability and Currency of InformationAvailability and currency of information is the ability to easily retrieve up-to-date information when you need it. For companies to make good business decisions in a timely manner, data must be available to the CPM systemin a time frame thats appropriate for the organization and the decision context. For some, this is near real-time; for others, it may be daily, weekly, or even less frequently. We found a generally positive relationship between having available, current, accurate information and organizations achieving benefits from their CPM system The greater the accessibility to current, accurate information, the more likely an organization is to report benefits from its CPM system

MEASUREMENT BASED PERFORMANCE MANAGEMENT

The terms performance measurement and performance management are often used in a manner that appears to be interchangeable. For the purposes of this paper it will be helpful to differentiate them.

Definition Performance Measurement is the process of defining, monitoring, and using objective indicators of the performance of organizations and programs on a regular basis.(Poister, Theodore H. Measuring performance in public and nonprofit organizations. Josey- Bass, San Francisco, CA. 2003)

Performance Management is the process of directing and controlling employees and work units in an organization and motivating them to perform at higher levels. (Poister, Theodore H. Measuring performance in public and nonprofit organizations. Josey- Bass, San Francisco, CA. 2003)

The key for performance measurement is that it occurs on a regular basis. Performance management uses that information to make changes to the organization so that it functions at a higher level. This becomes a cycle, because the changes recommended based on performance management then need to be monitored to determine that they are having the desired impact on performance. Hence the model (Figure 1) is termed measurement-based performance management because it incorporates what the organization does with both generating the proper performance metrics and using that for management.Stage 1: Understand the Context Organizations spend a great deal of time and money to create strategic plans and then undertake activities that do not always support those efforts. Stage 1 is to review existing documents like the strategic plan to determine where the organization is heading and how it proposes to get there, i.e., what is its map. The map that is often used is a logic model. The logic model indicates the impact the organization hopes to achieve and the inputs, activities, outputs and outcomes (short-term, intermediate and long-term) that result in the impact being obtained. Ideally it is the impact that should be the focus of performance measurement, but that is often not feasible. Either it is difficult to measure the impact or the data are not readily available for that. The outcomes then become the focus for performance measurement, because if those are being achieved, then the impact will follow. This approach of using the strategic plan and/or logic model as the guide posts for developing performacne metrics will result in the metrics being aligned (Stage 2). Stage 2: Develop Metrics and Align The logic model will identify the outcomes of interest. The staff of the organization should be able to assist in noting what data they are currently gathering, what data may be gathered by other departments of the organization that