UNIT-2Performance Planning

DEFINITION• As a systematic outlining of the activities

that the manager is expected to undertake during a specified period

• so that he is able to make his best contribution to developmental and organisational outcomes.

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CHARACTERISTICS• It is the foundation of effective

performance management; it is effective when managers and employees jointly set performance criteria.

• It starts with understanding objectives and strategy and ends with setting of performance criteria.

• It exemplifies the commitment of employees and their managers towards org mission and objectives.

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• It is a fundamental managerial function and an integral part of PMS

• It is a tool to help individuals contribute their best to an organisation in terms of ability, efforts and results.

• it specifies the action required to accomplish each goal and expectation.

• It identifies resources required for the success of the individual and work unit.

• It decides how success will be assessed

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CHARACTERISTICS• It provides a valid basis for distinguishing

levels of performance.• It signifies a commitment to

acknowledging and rewarding performance

• It establishes ongoing communication which helps in mutual understanding, alignment and expectations for outstanding results.

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• It integrates internal and external facilitating and inhibiting factors with individual efforts for optimal result.

• It helps employees in terms of role clarity and performance expectations for enhanced contributions.

• It facilitates organisational success through strategies of employee efforts, managerial insight and utilisation of resources optimally.

• It focuses on areas of priority and concern of the organisation for better emphasis of time, resource and individual efforts.

IMPORTANCE

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COMPONENTS OF PERFORMANCE PLANNING

• Clarify roles to meet the strategic plan;• Clarify divisional and departmental requirements;• Continually realign individual objectives with the organisation’s initiatives;• Obtain agreement on what results and development are expected; and• Develop objectives/expectations that describe results

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KPA (Key Performance Area)

• It involves the identification of targets pertaining to certain tasks and activities which are challenging, and stretch the capabilities of the employee.

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PROCESS• Identification of key tasks and activities by

both the employee and the manager• Analyzing and determining priority areas• Setting targets or goals in the

identified/focus areas• Documenting and seeking commitment of

employees • Committing required resources

BARRIERS

Organizational and individual barriers8

• Understanding the constituents of performance by breaking it into various elements and understanding the factors that cause performance is called performance analysis.

• SWOT• Performance Equation• Individual Performance = Ability X

Motivation X Organizational support + or – Change factors

PERFORMANCE ANALYSIS

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• Identification of the factors that have helped the appraisee reach the level of performance he achieved in relation to various KPAs, targets and various other functions associated with his job. These may be called ‘facilitating factors’.

• Identification of the factors that have prevented the appraisee from doing better or those that have prevented the appraisee from doing better or those that hindered his performance. These may be called “hindering factors”.

OBJECTIVES

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• Identification of factors which would suggest action plans for the appraisee as well as for the appraiser.

• Identifying the developmental needs for better performance on critical functions associated with the present role.

• Gaining a better understanding about the appraisee, his role requirements and the situation in which he is working and also share with him the expectations and understanding of the appraiser so that the communication between them is increased.

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• Check the progress periodically.

• Note the success reasons

• Note the failure reasons

• Rate in rating scale

• List down the facilitating and hindering factors

PROCESS

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