Unit 1
Unit 1Introduction to Performance Management1Learning objectives
Definition of performance & PMCharacteristics of an ideal PM
systems Aims and role of PM PM process PM & HR Strategic
planning in PM
2What do Employees Expect in an org?Be treated fairly and
consistentlyJob/career enrichment opportunitiesClear
expectationsPositive/constructive feedback on a regular
basisInvolvement in goal settingEconomic reward
3Why Perform?To reach organizational mission and goalsEncourage
and reward behaviors aligned with organizational mission and
goalsCurb or redirect non-productive activities
4Meaning of performanceThe action or process of carrying out or
accomplishing an action, task, or function can be termed as
performance.Performance management includes the processes used to
manage corporate performance, the methodologies that drive some of
the processes and the metrics used to measure performance against
strategic and operational performance goals.
5What are Performance Standards?Performance Standards are the
benchmark against which performance is measured.
6Definition of PMIt is a continuous process of identifying,
measuring and developing the performance of individuals and teams
and aligning performance with the strategic goals of the
organization.PM contains two major components:Its a continuous
processAlignment with strategic goals7Performance management (PM)
includes activities that ensure that goals are consistently being
met in an effective and efficient manner.
Performance management focuses on the performance of an
organization, a department, employee, or even the processes to
build a product or service or any other areas in an
organization.
8Performance ManagementAn iterative process of goal-setting,
communication, observation and evaluation to support, retain and
develop exceptional employees for organizational success.9Purpose
of PM systemIt serves the strategic purpose of the org.Provide
information for reward systemFacilitates HR decisionsEnabling
employees to learn about their performance as against org
expectationsIt serves as a developmental purposeServes org
maintenance purposeSupport HR decision to meet legal
requirements10Is performance Mgt & performance appraisal
same?Both are different concepts.PM is a broader term &
includes appraisal as a part of the performance system.Performance
appraisal is the systematic description of an employees strengths
and weakness.Thus, performance appraisal is an important component
of performance management. 11Contributions of Performance
management to an organizationMotivation to perform is
increasedIncreases self esteemManagers gain insight about
subordinatesJobs are simplifiedOrganizational goals are
clearEmployees become more competentDifferentiation b/n good &
poor performancePerformances are communicatedChange can be
possible12Characteristics of an ideal PM systemStrategic
congruenceThoroughnessPracticality
MeaningfulnessSpecificityReliabilityValidityAcceptability
Inclusiveness
OpennessCorrectabilityStandardization Ethicality Identification
of effective & ineffective performance13Aims & roles of PM
systemThe information collected by a PM system is most frequently
used forSalary administrationPerformance feedbackIdentification of
employee strengths & weakness
14Aims or Purposes of PMStrategic purposeAdministrative
purposeInformationalDevelopmentalOrganizational
maintenanceDocumentational
15Disadvantages of poorly implemented PM systemIncreased
turnoverUse of misleading informationWasted time & moneyLowered
self esteemDamaged relationshipsDecreased motivation to
performEmployee job burnout & dissatisfaction
16Contd.Increased risk of litigation Unjustified demands on
managers & employees resourcesVarying & unfair stds &
ratingsEmerging biasesUnclear rating systems17PM ProcessPM PM PM PM
PM PM 181. PrerequisitiesTwo important prerequisites before PM
system are:Knowledge of the orgs mission & strategic
goalsKnowledge of the job in question (this is done through job
analysis)
192. Performance PlanningEmployees should have a through
knowledge of the PM System.Planning discussion includes
:ResultsBehavioursDevelopmental issues203. Performance ExecutionAt
the execution stage, following factors must be
considered:Commitment to goal achievementOngoing performance
feedback & coachingCommunicationCollecting & sharing
performance dataPreparing for performance reviews
214. Performance AssessmentIt is important for employee as well
as the managers to take ownership of assessment process.It helps
the org to use the information obtained in a productive manner for
the future requirements.Inclusion of self appraisal is also
beneficial in all manner.225. Performance ReviewReview stage
involves meeting between employees & the manager.This meeting
is called Appraisal Meeting.Review meeting helps employee and
manager to design developmental plans.236. Renewal &
RecontractingIts identical to planning stage.Manager uses the
insights & information gained from other phases to reset
performance goals for employees24
