2. INTRODUCTION
Organisation are run & steered by people
the goals are set & objectives realised. The
performance of an organisation thus
dependent upon the sum total of the
performance of its member.
According to peter Drucker:- “An
organisation is like a tune; it not
constituted by individual sounds but by
their synthesis.”
3. MEANING
Performance management can be defined
as a systematic process improving
organisational performance by improving
the performance individual & teams.
Performance management is the process
of recognizing measuring managing &
improving the performance of the
employee In an organisation.
5. DIFFERENCE BETWEEN
PERFORMANCE APPRAISAL &
PERFORMANCE MANAGEMENT1. It consists of top-down
approach to review.
2. Annual appraisal meeting.
3. Extensive use of ratings
4. Rigid system of appraisal
5. Focus on objectives that are
quantified
6. Connects performance to pay
7. More documentation which
leads to hassles
8. The HR departments has
ownership of the process
1. Joint process through dialogue.
2. Continuous review with one or
more formal reviews.
3. Less use of rating.
4. More flexible process of review.
5. Focus on values and attitude
along with quantified objectives.
6. Linkage of performance to
compensation less probable.
7. Minimum possible documentation
is required.
8. Line managers own the process.
6. CHARACTERISTICS OF
PERFORMANCE MANAGEMENT
Planned Process
Deals With Measurement Of Tangible Results
Defines Performance Management Criterion
Defines requirement for performance improvement and continuous development
Sustainability and flexibility
Emphasis on performance planning for the future.
7. COMPONENTS OF PERFORMANCE
MANAGEMENT
1.Clear definition of performance
standard.
2.Enabling efficient performance.
3.Fostering better performance.
4.Monitoring performance.
5.Feedback mechanism.
8. NEED OF PERFORMANCE
MANAGEMENT.
1. To employee individual and group performance with company goals mission
statements and work values.
2. Helps to sustain greater level of performance and improvement in the same
3. Enable participation of employee by providing input into setting of goals and
performance objectives
4. Distinguishing appreciation and addressing both high performers as well as low
performer.
5. Analysing learning and developing requirement
6. Smoothing the process of succession planning
7. Employee are given a platform to voice their opinion and give feedback on the
effectiveness of operation systems, processes and procedure
8. Encouraging that the employee do the appropriate things at the appropriate time.
9. Ensuring that the employee do the appropriate things at the appropriate time
10. Ensuring that the employee do the appropriate things at the appropriate time
11. Merger or alignments of the organisational objectives with those of its employees.
9. IMPORTANCE OF PERFORMANCE
MANAGEMENT
1. The clarification of job responsibility.
2. Self-insight and development are enhanced
3. Personnel actions are more fair and appropriate
4. Managers gain insight about subordinates
5. Motivation to performs is increased
6. Increased self-confidence
7. Managers obtain a better opinion about employee
11. PERFORMANCE MANAGEMENT
PROCESS
The performance management process can be divided into three
phases of operation: they are as follows
Phase 1- Planning
Phase 2- Monitoring
Phase 3- Performance reviews
12. PHASE 1- PLANNING
The planning phase is a joint effort consisting of both managers and
employee during which they:
a) Make a review of employee’s current job and decide if it needs any
updating or changes with respect to job expectations.
b) Align the employee’s job description, his or her work plan and the
organisation’s goals, objectives and strategic plan.
c) Develop a work plan that outlines the tasks expected to be done,
expected result and measures or standards or performance areas
which are importance for the employee’s result and measures or
standards of performance evaluation.
d) Identify training objectives that will help the employee grow his or
her skills, knowledge, and competencies related to their work.
13. PHASE 2- MONITORING
a) Assess progress towards meeting performance objectives.
b) Identify any barriers that may prevent the employee accomplishing
performance objectives and what needs to be done to overcome
them.
c) Share feedback on progress relatives to the goals.
d) Identify any changes that may be required to the work plan as a
result of a shift in organisation priorities or if required to take on
new responsibilities
e) Determine if any extra support is required from the manager or
other to assist the employee in achieving his or her objectives
14. PHASE 3- PERFORMANCE REVIEW
In the performance assessment meeting, employee and managers will
:
a) Summarize the work goals achieve during the appraisal period to
the goals that were set at the beginning of the performance period.
This includes capturing the key result, achievements and shortfalls
for each of the objectives.
b) Put down the challenges encountered during the year and identify
areas for training and development to overcome the same.
c) Carry out discussion to identify any hindrance towards completion
of any specific goal.
15. PERFORMANCE MANAGEMENT
LINKAGES WITH OTHER HR
FUNCTION
The role of HR in performance management is an important one. They
tend to be the people that who are responsible for designing and
responsible for designing and reviewing systems, implementation
new people that who are responsible for designing and reviewing
systems, implementation new processes, organising training and
development for managers and staff, providing advice and support
materials to staff and managers and ensuring there is compliance
with the system in every possible way and across the entire
organisation.
In practice, HR should:-
1. Promote ownership of performance management by line
management.
2. Encourage integration and coherence of various HR function with
performance management.
16. PRE-REQUISITES OF EFFECTIVE
PERFORMANCE MANAGEMENT
SYSTEM
It is obvious from the recent surveys and the high rate of modification that
performance management system are not giving desired levels success in
most businesses organisation.
There are some basic pre-requisites at an organisation level:-
1. Clear purpose
2. Business performance management culture
3. Alignment of employee and organisation goals
4. Fairness in conduction of performance management process
5. Accurate measurement and assessment on basis of facts
6. Total commitment from all levels
7. System integrity