Performance Management & Appraisal MU0007 Set-1

8/8/2019 Performance Management & Appraisal MU0007 Set-1

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Master of Business Administration-MBA Semester IVSubject Code MU0007

Subject Name Performance Management and AppraisalAssignment Set- 1 (30 Marks

Question 1: Define Performance Management? Explain the principlesof developing a performance management plan.

Answer 1: Performance Management - Definition

The campus carries out its mission through the individual and collectivecontributions of its employees. To do their best, staff members need to knowthat those contributions will be recognized and acknowledged.

Performance Management is one of the key processes that, when effectivelycarried out, helps employees know that their contributions are recognizedand acknowledged. Performance management is an ongoing process ofcommunication between a supervisor and an employee that occurs

throughout the year, in support of accomplishing the strategic objectives ofthe organization. The communication process includes clarifyingexpectations, setting objectives, identifying goals, providing feedback, andevaluating results.

PRINCIPLES OF DEVELOPING A PERFORMANCE MANAGEMENT PLAN

Development of a performance management plan should be consistent withthe following principles:

1. Performance management is considered a process, not an event. It

follows good management practice in which continual coaching,feedback and communication are integral to success.2. The Performance Management Plan is primarily a communication tool

to ensure mutual understanding of work responsibilities, priorities andperformance expectations.

3. Elements for discussion and evaluation should bejob specific notgeneralized personality traits. The major duties andresponsibilities of the specific job should be defined andcommunicated as the first step in the process.

4. Performance standards for each major duty/ responsibility should bedefined and communicated.

5. Employee involvement is encouraged in identifying major duties and

defining performance standards.6. Professional development should be an important component of the

plan.7. The formal evaluation period should be long enough to allow for full

performance and to establish a history such that evaluations are fairand meaningful. One year is a common evaluation period.

8. Documentation of performance will occur as often as needed torecord the continuum of dialogue between supervisor and employee.
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9. If formal ratings are included, they should reflect the incumbent'sactual performance in relation to the performance standard for thatmajor duty.

10.The supervisor should be evaluated on the successful administration ofthe plan and ongoing performance management responsibilities.

11. Training for supervisors and employees is encouraged and will beprovided by University Human Resource Services.

12.The Performance Management Plan should be consistent with federaland state laws which address non-discrimination.

Question 2: Let, Ryan and Grossman suggested four key capacities fororganizational effectiveness.-Elucidate

Answer 2:Four organizational capacities are critical to overall organizational

effectiveness:A) Leadership Capacity: the ability of all organizational leaders to create andsustain the vision, inspire, model, prioritize, make decisions, provide directionand innovate, all in an effort to achieve the organizational mission.B) Adaptive Capacity: the ability of a nonprofit organization to monitor,assess and respond to internal and external changes.C) Management Capacity: the ability of a nonprofit organization to ensure theeffective and efficient use of organizational resources.D) Technical Capacity: the ability of a nonprofit organization to implement allof the key organizational and programmatic functions.

TCC also includes organizational culture as a component of the assessmentsince it has a significant impact on each of the above core capacities. Each

organization has a unique history, language, organizational structure, and setof values and beliefs. These cultural elements all serve as the contextthrough which organizations define, assess and improve their effectiveness.Questions around the measures/indicators of all five capacity areas werecompiled randomly into a survey that is completed by, at minimum, eachorganizations top three organizational leaders.

ORGANIZATIONAL ASSESSMENT: OTHER FACTORS

Ideal leadership, adaptive capacity, management and technical capacity as

well as organizational culture depend heavily on additional factorssurrounding the organization. These are broadly represented by the outercircles on the previous graphic. A few of these are described below. Organizational lifecycle: An organizations phase of its lifecycle will affect itscore capacities.Nonprofit organizations, like people, experience a lifecycle of progressivestages and developmental milestones. TCC labels the growth stagesaccording to the following organizational development elements:
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Core Program Development - development of a set of programs that arecentral to mission success and have begun achieving a consistent level ofdesired results for those being served Infrastructure Development - development of an organizationalinfrastructure necessary for supporting core programs and increasing thenumber of clients or service recipients

Mission impact - achieving mission impact through activities bringingtogether an organizations programs and leadership with other communityresources. This often involves engaging in activities like collaboration,strategic alliances, partnerships, and joint policy and advocacy efforts, inorder to create a greater change. The core organizational capacities lookdifferent during each of the lifecycle stages, which are additive. Eachsuccessive stage requires more growth from the prior stages. This meansmore sophisticated core program development is required in each of the laterstages and more sophisticated infrastructure development is required duringMission Impact. External environment: There are many factors in the external environmentthat affect how no constituent needs and demands; 3) available funding

including competition for funds; 4) policy changes related to government andnonprofit; 5) the available pool of highly qualified nonprofit professionals; 6)the availability of non-monetary resources; and 7) the strengths andchallenges of the nonprofit sector as a whole. Each of these factors has apotential affect on each of the core capacities for any given nonprofit.

Therefore, when one attempts to discern whether an organization is effective,he or she needs to take the relevant environmental influences intoconsideration. Key organizational resources: There are certain critically needed resourcesthat most directlysupport and affect the quality of the delivery of programsand services. Without theseresources, the organization could not function.Key organizational resources most ofteninclude the skills, knowledge, and

experience of those delivering the services, as well as theresources provideddirectly to clients (e.g., financial assistance (loans, housing, etc.), in-kindresources, equipment, etc.). Supporting organizational resources: Each nonprofit organization has aunique set of supporting resources (or assets) at its disposal that all serve tosupport the key resource(s).

These resources include: human resources (i.e., the knowledge, experienceand skills of board members, the executive director, managers, support staffand volunteers); technology; program support materials; finances/funding;facilities; time; and other resources like equipment, vehicles, and supplies. Anorganizations level of resources at a given point in time will greatly affecthow leadership, adaptive capacity, management, and technical capacity willmanifest themselves. Financial health: Financial resources are critical to supporting anorganizations entire core capacities. Leadership requires making toughdecisions about how to use the finite financial resources available to theorganization as well as provides direction for how to raise additional funds.Part of an organizations adaptive capacity function is the need to identifyopportunities and challenges in the funding environment that are and will


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impact upon an organization and its programs and services. Managementcapacity is all about making efficient and effective use of resources, and thisincludes financial resources. Lastly, financial stability will affect the ability ofan organization to support its technical capacities. Profits function, amongthem: 1) the economy including changes in the private sector; 2)

Question 3: Explain the process of performance management

Solution 3:

I. INTRODUCTIONThe performance review process links coaching for performance and careers,and performance evaluation as integrated elements in a continuous process.

The main purpose of the performance management process is to developpeople and improve performance by clarifying goals and coaching regularly.A secondary purpose is to provide honest and accurate formal evaluations tosupport rewards for performance practices. Managers, supervisors, and

subordinates have a mutual responsibility for making the process work. Eachhas a role in setting goals, coaching, and evaluation.

II. OBJECTIVESUpon completion of the performance management program, participants willbe able to: Identify the importance of the performance management process from theviewpoint of the supervisor and employee.

Establish performance requirements for those positions that report to them. Define coaching and explain the steps for effective coaching. Specify the steps for completing a performance review.

Create the appropriate atmosphere and rapport for conducting theperformance review discussion. Conduct the performance review discussion.III. PRINCIPLES OF THE PERFORMANCE MANAGEMENT PROCESSImproving appraisal effectiveness will require the following ongoing changesin our"University Culture": Increase management's time commitment to personnel matters on anongoing (Versus once-a-year) basis. Shift performance emphasis from short-term, component specific individualgoals to include long-term, team-oriented goals that are consistent withcontinuous improvement of the University as a whole. Communicate with each employee in honest, timely dialogue aimed atperformance improvement; increase mutual involvement in goal-setting anddefinition of performance standards. Improve management skills in communicating and taking responsibility formaking the performance improvement process operate effectively. Increase employee responsibility for planning their own careers.

PERFORMANCE MANAGEMENT PROCESS


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IV. ESTABLISHING PERFORMANCE REQUIREMENTS

The first element of the performance management process that must beeffectively executed is specifying the required levels of performance andidentifying goals to be achieved. It is imperative that the supervisor and the

employee agree upon and understand each other's expectations of the job.This is the foundation upon which the entire performance managementprocess will be built. For this reason, it is important that goal setting is doneand done well. If it is not done, what will the employee are measuredagainst? Quite often, when a goal setting session is not completed,employees and supervisors have completely different ideas about jobpriorities and responsibilities.

To the extent possible, the supervisor should strive to clarify theirexpectations of subordinates. The supervisor also should endeavor todescribe what differentiates one level of performance from another. Thesupervisors expectations will certainly vary from employee to employee andfrom job to job but must always be job related.

Studies show that there are sizeable differences between the employee's andsupervisor's concept of the responsibilities of the same position. Therefore,before any attempt can be made to review an individual's performance, thesupervisor and the employee must have a common understanding of whatconstitutes good performance.Every supervisor needs to establish a set of "Performance Requirements" foreach subordinate's position. These requirements become the basis of theperformance review.Performance Requirements include: Areas of Responsibility. An area of responsibility is a major category orsegment of work.

Results Statement. A results statement describes the work results thatmust be achieved in each area. Standards. Standards are indicators that the desired result is beingachieved. Behaviors. Behavior patterns that is appropriate to the University and thesupervisor.

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Performance Management & Appraisal MU0007 Set-1