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PREMENDRA SAHU (ASST.

PROFESSOR), CCEM


PERFORMANCE MANAGEMENT
MBA lll SEMESTER


PREMENDRA SAHU (ASST. PROFESSOR), CCEM

SYLLABUS
UNIT I
Concept, 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 counseling
UNIT III
Establishing and operationalising performance management system; measuring performance-
results and behaviour; conducting performance review discussions; harnessing performance
management system for performance improvement.
UNIT IV
Performance management strategic and interventions- reward based performance management;
career based performance management, term based performance management.
UNIT V
Culture based performance management; measurement based performance management;
competency based performance management; leadership based performance management.














PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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 Daniels in 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 - Definition
Performance management is 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 Cycle
Overseeing 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
a cycle, with discussions varying year-to-year based on changing objectives.
The cycle includes 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.


PREMENDRA SAHU (ASST. PROFESSOR), CCEM

Characteristics of an ideal performance management system

1. Strategic Congruence
The strategic goals of the organization should be linked to the goals of individuals and teams.
2. Standardization
If 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 Conciseness
Performance 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 a call center, do not evaluate them on their ability to operate heavy machinery.
4. Legality
Make sure that you are not evaluating your employees in an illegal manner. Consult an attorney before
employing a questionable method of evaluation.
5. Due Process
As with criminal 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 Evaluators
No 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 Reward
Do 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 clear performance objectives and standards
Reviewing performance and delivering incentives in a fair and consistent manner
Providing relevant learning and development opportunities
Recognizing and rewarding strong individual and team performance
Linking performance to compensation and recognition
Identifying clear career progress routes for employees



PREMENDRA SAHU (ASST. PROFESSOR), CCEM

PERFORMANCE MANAGEMENT VS PERFORMANCE APPRAISAL
Performance appraisal Performance management
Top-down assessment Joint process through dialogue
Annual appraisal meeting Continuous review with one or more
formal reviews
Use of ratings Ratings less common
Monolithic system Flexible process
Focus on quantified objectives Focus on values and behaviours as
well as objectives
Often linked to pay Less likely to be directly linked to pay
Bureaucratic - complex paperwork Documentation kept to a minimum
Owned by the HR department Owned by line managers

PERFORMANCE MANAGEMENT PROCESS
In 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 to A Handbook for Measuring Employee Performance,
performance management is the systematic process of
1. planning work and setting expectations
2. continually monitoring performance
3. developing the capacity to perform
4. periodically rating performance in a summary fashion
5. rewarding good performance
1. 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.

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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.



PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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
include action plans, metrics, and governance structure. Supports the execution of the strategic plan by
providing change and program management assistance
Key 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 Visibility of underlying factors affecting performance
Balances Measures across various dimensions (e.g., leading/ lagging, different activity categories,
strategic/ individual)



PREMENDRA SAHU (ASST. PROFESSOR), CCEM


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.























PREMENDRA SAHU (ASST. PROFESSOR), CCEM

UNIT -2
PERFORMANCE PLANNING
Performance 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 Plan
2. A Performance Improvement Plan
INITIAL 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 levels
2. Identify how these performance levels will be achieved
3. Provide guidance and direction
4. Measure progress towards the desired performance levels
Although 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 achieve
Individual 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 Plan
2. Team Operational Plan with the Team Purpose
3. Team Purpose with the organisation's Strategic Plan
Performance Plans might include the following types of goals:
Key Performance Indicators (KPIs)
Goals to improve competency levels
Team building goals
Whenever 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:

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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 performance
This 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 issues
During 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 Plan
A 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 up
Ensure 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 development
2. The action(s) to be taken
3. Any parties required to assist in the achievement of the set actions
4. The timeframe for achieving each action
5. How performance improvement will be reviewed
6. When performance improvement will be evaluated
Performance 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 competency
Performance Management Competencies: Setting Goals

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

Supervisors 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 Goals
The 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. Management
Feedback 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. Structure
Good 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
schedule…and provide [employees] with constructive assistance.”
3. Confidentiality
Employees 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.

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

4. Timing
Often, 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 Feedback
For 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 their employees to 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 not learningand 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.


PREMENDRA SAHU (ASST. PROFESSOR), CCEM

Everyday Coaching
Good coaches seize opportunities to help their employees learn in their jobs and 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 not do the task orsolve the problem for 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 at everyday coaching are 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.)


Individual Development Planning
The 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.
Individual career development plans are long-term plans that use developmental trainingand 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 plans are 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.

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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 mind the 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 an easy
task to 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

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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?




Counseling Discussions
The 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?
Use Find the Cause of a Performance Problem as a logical problem-solving guide in
addressing performance issues.

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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 cumbersome work 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:
o Fact: I have noticed that your numbers have dropped during the last month.
o Inquiry: Can we talk about how that might have happened?
o Fact: I have noticed that you have been late for work three days out of every five for the past two
weeks. Your leave record shows a pattern of using sick and vacation leave within the month that
it's accrued.
o Inquiry: What is making it difficult for you to be at work during your regular work hours?
For step-by-step suggestions for handling performance counseling discussions with employees, check
out Formats for Counseling Discussions.

Corrective Action Plans
Corrective action plans are short-term action plans for bringing employees' performance up to expectations in
their current jobs. 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.

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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.























PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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. Coaching
2. Counseling
3. Feedback




















PREMENDRA SAHU (ASST. PROFESSOR), CCEM

UNIT 3
Effective Performance Management: Doing What Comes Naturally
There 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.
Planning
Effective 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.
Monitoring

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

Effective 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.
Developing
Effective 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.
Rating
An 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.
Rewarding
Effective 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.

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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 Prose
Good 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 org
Why 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.

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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 their health 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
Medical Home (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 Programs provide incentive payments to eligible
professionals, eligible hospitals and critical access hospitals (CAHs) as they adopt, implement, upgrade
or demonstrate meaningful use of certified Electronic Health Records (EHR) technology. Eligible
professionals and hospitals who participate in the program must be able to record, store, and
report clinical 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 management is 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



PREMENDRA SAHU (ASST. PROFESSOR), CCEM

Choosing goals for performance management
In selecting initial targets for performance management, your organization should ask some
basic questions (based onInstitute for Healthcare Improvement methodology):
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 Measures
Health 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.


PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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.

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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 coaching
Performance 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
feed back, 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 feedback
Positive feedback involves telling someone about good performance. Make this feedback timely, specific and
frequent. Recognition for effective performance is a powerful motivator.

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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 clarity
State 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 organization
You 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

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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 resolved
Follow 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

















PREMENDRA SAHU (ASST. PROFESSOR), CCEM

MODEL QUESTION PAPER
Q.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?























PREMENDRA SAHU (ASST. PROFESSOR), CCEM

UNIT -4

Performance management strategic and interventions-

Information-based Intervention
Interventions that define : Activities that specify or clarify the vision, mission, purpose, process, products,
services, market position, roles, relationships, responsibilities, outcomes, expectations, and so on. Examples:
holding sessions to create vision statements; confirming market direction and market niche; mutually setting
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 Intervention
Interventions 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


PREMENDRA SAHU (ASST. PROFESSOR), CCEM

Reward management is concerned with the formulation and implementation of strategies and policies that aim
to reward people fairly, equitably and consistently in accordance with their value to the organization.
[1]

Reward management consists of analysing and controlling employee remuneration, compensation and all of the
otherbenefits for 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
payroll administration, total reward, minimum wage, executive pay and team reward
Types of rewards
Rewards 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 asymmetric information,
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

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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 rewards
2. 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-sharing
SEVEN STEPS TO SUCCESSFUL PERFORMANCE-BASED REWARDS
1. 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

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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 product lines 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 the training 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.

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

To avoid this, Big Foods segmented the marketplace based on its new product categories (Develop, Maintain
and Harvest) and provided employees with the latest market research. 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 between employees
performance and 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 Development
Competency-based Career Development is 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

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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, putting career
development tools 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 the employees 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 targeted learning and development programs 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 the organizations perspective, competencies:

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

Assessment tools and processes to support employee / job matching
Career development self-help guides and resources for learning and development

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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 Planning
Career 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
identified
1
, 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 like make 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 PAPER
Q.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?


PREMENDRA SAHU (ASST. PROFESSOR), CCEM






















UNIT -5
Organizations should do a cultural performance management 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.


PREMENDRA SAHU (ASST. PROFESSOR), CCEM


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 to pay 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 the market 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

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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, will
better 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 systems
1. Alignment with Mission and Vision
An 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 Accountability
To 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

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

organizational maturity with respect to accountability and transparency related to the benefits organizations
receive from their CPM systems?

3.Action on Insights
Businesses 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
company
designs 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 Resolution
Dresners 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 mechanisms
for resolving conflicts.

5.Common Trust in Data
In 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 attained
from 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 and
81% of the respondents indicated they had received benefits.

6.Availability and Currency of Information
Availability 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
system
in 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

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

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 can be relevant, and whether it is feasible to gather additional data. It is too easy at this stage
to fall into the trap of using what is readily available. Often those data do not directly relate to the impact or the
outcomes of interest. If that is what the organization uses, then it will move in a direction contrary to what is
noted in the strategic plan.
Metrics can be a double edged sword. On the one hand they serve as a tool to measure progress. On the other
hand what is measured is what gets done. Therefore, if you are measuring the wrong thing that is what will get
done; and the right thing will not be accomplished.

Stage 3: Implement

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

Once the metrics (definition, source, and how frequently they will be gathered) have been determined, the next
step is to implement the data collection. If grantees or other organizations are involved in the data collection, it
is useful to let them know why this is being done and provide them guidance on how to gather the information
and what definitions to use.
Stage 4: Analyze
Contrary to common opinion, data speak; and for statisticians this is accomplished by a thorough data analysis.
Before analyzing the results, program personnel need to review the data to determine whether they are reliable.
For example, did all the reporting entities use the same definitions? This may seem trivial but it is not. If the
outcome of interest is increased exercise, determined by the percentage of program participants who exercised
for thirty or more minutes three times per week, the following questions may arise:
1. Do the thirty minutes have to be consecutive?
2. Is walking to school exercise, or does exercise have to be something else? If the latter, how is that
defined?
Another aspect of reliability is Are the data accurately reported? One may want to periodically examine the
trends in reporting at the level of the unit reporting (i.e., grantee, school district, etc.) to determine whether the
63% reported this period is a typo and should really be 36%, the same as reported last period. Large changes in
outcomes should always be suspect.
Stage 5: Make Changes
Changes can be of two types. One, the data being gathered are not meeting the needs and different metrics
should be developed. The other change is that the data indicate a program is not performing as envisioned and
there need to be changes to the program to enhance its performance. The latter is performance management,
making changes based on performance information to enhance the impact of the program. If changes are made
to the program, it then becomes necessary to go through stages 1-3 to verify that the changes being made are
consistent with the mission of the program, that you have the proper metrics, and have defined the metrics so
that data are gathered consistently.
Stage 6: Internalize
If Stage 6 is done correctly, it will impact the inner circle as well, the internal environment. Internalize means
that the organization uses the information gathered to both monitor performance and to improve performance.
The various components of the organization see the value of this and support its use on a regular basis. As new
programs are developed a logic model should be developed for the program and a plan should immediately be
put into place to gather performance metrics.
What do organizations need to do? If your organization is regularly gathering analytics and generating
performance metrics, jump to Stage 5. Examine whether the metrics derived from the analytics are meaningful
or merely being gathered because they are convenient. Do the metrics help the organization move forward to
meeting its strategic objectives? If your organization is not gathering analytics and generating performance
metrics, then the model presented here should help you get started. Regardless of where your organization is in
the process of performance measurement and management, DRC has an experienced staff of evaluators and
organizational psychologists who can work with you to improve existing systems or work with you on cost
effective methods for beginning.

Competency-based performance management
Performance management is about achieving results in a manner that is consistent with organizational
expectations. Integrating competencies within the performance management process supports the provision of
feedback to employees not only on what they have accomplished (i.e., performance goals), but also how
the work was performed, using competencies for providing feedback. Assessing competencies as a part of
performance management is an important means of assisting employees in understanding performance
expectations and enhancing competencies. Multi-source feedback, while not an HR application per se, is a
method that is often used in performance management to assess and provide employees with feedback on
how they performed their work (i.e., their demonstration of the competencies).

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

Integrating Competencies in the Performance Management Process
Competencies can be integrated into the regular Performance Management (PM) process in one of two ways:
By defining the competencies needed to perform each Performance Goal / Objective
In this case, the manager and employee identify the key competencies required to achieve each performance
goal / objective (typically 1 to 3 competencies per goal / objective). At the end of the performance cycle, the
employees performance is evaluated in relation to the performance goals / objectives as well as the key
competencies associated with each goal. Using this approach, the competencies included in the employees
performance plan may or may not completely coincide with the standard competency profile for the employees
role / job. The advantage of using this method is that the competencies being assessed are entirely consistent
with the employees performance goals for the performance review cycle. The disadvantage is that not all
competencies within the competency profile for the employees role / job will necessarily be assessed within the
cycle.
By integrating the competencies for the employees job into the PM process
In this case, the performance plan includes the performance goals / objectives for the review period as well as
the complete set of competencies from the competency profile for the employees role / job. The performance
goals / objectives address what must be accomplished during the review period, and the competencies
measure how the employee conducted him/herself to accomplish their work. The advantage of this method is
that all competencies defined in the competency profile for the employees role / job are evaluated. The
disadvantage is that due the specific nature of the performance goals / objectives, key competencies for the
effective performance during the review cycle, but not included in the competency profile, will not be assessed.
In both cases, feedback provided on the employees competencies typically feeds into the development of a
learning or action plan to address gaps in performance and development within or beyond the employees
current role / job.
Multi-source / 360 Degree / Upward Feedback
In Multi-source, 360 Degree and Upward feedback, the behavioural indicators for the competencies needed
within the target role / job are used as the standard for assessing the performance of the employee. In Multi-
source / 360 feedback, different stakeholder groups provide ratings, including the employee, their supervisor, as
well as others with whom the employee interacts (e.g., peers, team members, clients both within and outside the
organization, reporting employees; etc.). In Upward Feedback, all employees reporting directly and / or
indirectly to the supervisor provide feedback on the supervisors performance.
The results are compiled and a report is provided to the employee. The report includes the results for all
competencies, highlighting both the competencies that are strong as well as those rated lowest by the different
stakeholder groups. In almost all cases, individual ratings from others (except for the employees supervisor)
are combined in such a way (e.g., averaged ratings) as to protect the anonymity of the individuals providing the
feedback. The report is set up to show similarities and differences in ratings across the different stakeholder
groups. The results of the process are normally used to develop learning and action plans for improvement (see
section on Learning and Development). They can also feed into broader assessment programs (e.g.,
management assessment centres; development programs) to support employee career development and / or
succession management within the organization.

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

Upward and Multi-source / 360 Degree Feedback programs must be managed well in order to protect those
providing, as well as those receiving, feedback. The Society for Industrial / Organizational Psychology has
published guidelines for the effective development and implementation of Multi-source Feedback.
Implementation Stages[
The following implementation stages are suggested for mid to large organizations implementing competencies
within Performance Management on a corporate-wide basis
Stage 1
Determine policy for integrating competencies within the Performance Management process
Design a Performance Management process consistent with the policy (as required)
Design communications and training program to support implementation
Pilot the process
Revise and finalize ready for full implementation
Stage 2
Communicate and implement the Performance Management process
Review and evaluate the process during the first cycle of implementation (e.g., first year) and make
revisions, as required.


Management and Leadership Excellence
The role of a manager and leader is an inexact science due to the complexities and differences among
individuals. A manager must at times be a friend, a counselor, a confidant, a stern taskmaster, and an
efficientbusiness executive. The superior manager is a person who can mold a variety of different personalities
into an effective team in order to produce predictable results month after month.
However, there are no final answers in dealing with employees. Due to the complexities of human personality,
an excellent manager and leader is always aware that the individual facing him or her across the desk is unique.
The ideas and information contained in our program will enable your management team to maximize their
effectiveness in influencing, leading and managing others towards superior results.
MANAGEMENT AND LEADERSHIP EXCELLENCE COMPETENCIES INCLUDE:
Managing vs Leading
Management is a set of skills and processes designed to assist with the running of a company or department on
a daily basis. Leadership is the art of creating the environment that allows creativity, vision, and employee
ownership and accountability. Identifying success factors and core competencies required to be a leader, as
well as a manager, and when each of these behaviors is required within your organization is critical for your
management team.

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

Understanding the Generations
For the first time in recent history, there are four generations working side-by-side in organizations. This has
become the largest demographic shift since women and members of minority groups began entering the
workforce in significant numbers decades ago. Each of the four generations, their backgrounds and work styles
are explored, as well as unique ways to lead each effectively.
Leading High Performing Teams
In todays competitive environment organizations must maximize the effectiveness of all their employees. A
crucial component of this effectiveness resides in your managers ability to foster an environment based on
mutual trust, respect, open communications and clear problem-solving abilities. Through this highly interactive
program, your managers will learn the qualities and behaviors of successful teams and will be given the
opportunity to practice these behaviors in a fun, learning environment.
Setting the Direction
A key to success in any walk of life is the ability to develop a plan and stick to it. In order to be successful, your
management team needs to know where they are taking their staffs, and every employee needs to understand
how they contribute to the success of the organization, the department, and their team. A clear vision, and
targeted goals will help create ownership and accountability throughout the organization.
The Performance Management Process
All individuals need to understand what is expected of them, and what outcomes they need to produce. In
addition, individuals need to know how they are doing in achieving those outcomes. Built around your unique
Human Resource processes, we will provide your managers with the steps to successful performance
management; keys to implementing the plan; and the philosophy behind creating a performance based
management system.
Coaching for Success
In todays competitive market it is difficult to find and keep a product oriented competitive advantage. People
are your companys most valuable asset. For employees to maintain their competitive edge effective managers
and leaders must be able to coach them to excellence. Your managers will create a talent assessment of their
teams; learn when to coach; keys to coaching each member of their team; a model for the coaching
conversation; what problems to avoid; and the rewards and pay-offs to helping employees maximize their core
competencies.
Managing the Problem Employee/Dealing with Difficult Conversations
Problem employees not only negatively impact their own areas of responsibility, but also the contribution of
others. Unfortunately, confronting these individuals can be uncomfortable for managers. Understanding a
model for these difficult conversations with their employees will result in management confidence, and
employee performance improvement through a clearly identified action plan.
Effective Delegation
Delegation is one of the essential skills of effective management. Management has been defined as getting
results through others, that requires effective delegation of tasks, duties and responsibilities to a staff. The

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

reality is that many managers are often unwilling or unable to delegate due to a lack of understanding of how
and why this important skill is necessary.
Situational Leadership
Based on the Blanchard-Hersey model of leadership, this module reminds your managers that there is no one
best way to influence others. To be effective, management style should be driven by the personality and
readiness of the individuals being managed and influenced.
Communicating for Results
85 % of our success is based on how well we communicate with others. There are many skills required to be a
successful leader; most, if not all of the skills, depend on one thing, communications. Managers and leaders
must be able to clearly articulate their thoughts, listen actively to their teams, and understand the impact that
personalities have on the communication process.
Leading Change
Most change initiatives within organizations are usually met with resistance at various levels. Managers are
instrumental in leading employees through the maze of emotions and actions that are necessary for successful
results. Shared commitment to change develops only when your employees feel they are part of the process.
This requires managers to develop strong communication skills that will spark discussions and keep everyone
focused on moving initiatives forward.


Keys to Behavioral Interviewing
Hiring the wrong people is a costly mistake in todays business world. Ensuring that your managers are
maximizing the interview process requires a shift in their thinking. Hiring the best candidates for your
organization is a process that requires understanding the competencies of the open position, and asking the right
questions of the candidate to fully understand if they can be successful in the role, and in your organization.
LEADERSHIP DEVELOPMENT & PERFORMANCE MANAGEMENT
We invest in talent development and use an enterprise leadership development strategy (talent pools) with
differentiated offerings by target audience to support this effort.
Succession Planning is a key process that enables us to review the health of our talent pipeline and establish
plans to address critical gaps. It also identifies development plans for leaders, including nominations to our
Leadership Development Programs.
Leadership Development Programs provide leadership learning that targets specific capabilities required for
future target jobs. Participants are identified through succession planning, nominated by senior leadership and
tracked for future career development (e.g. retention rate, promotion rate, next developmental move, etc.).
Based on the enterprise business strategy, the emphasis over the past few years has been on developing the
Accelerated Enterprise Leadership pipelines and accelerating readiness of individuals for key leadership
positions. In these targeted areas, we have a continuum of Leadership

PREMENDRA SAHU (ASST. PROFESSOR), CCEM

Development Programs, from senior leaders (Company Group Chairs) to emerging leaders (Senior
Managers/Directors). Future focused business unit leader and R&D leader specific competency models, along
with the Leadership Imperatives, provide the framework for development.
Executive Committee members and many senior executives are personally committed to this effort and devote
much of their time to lead dialogues with participants, sponsor action learning teams and coach participants of
these programs. Participants numbered approximately 2,700 by year-end 2012. Johnson & Johnson administers
a Global Credo Survey every two years to ensure our behaviors represent our beliefs. This survey is our
collective opportunity to ensure that everyone across our companies is inspired by the goals we set both
personally and for the future of our business; that we feel connected with our colleagues and the values we hold
ourselves to; and that we remain committed to taking the steps necessary to meet the needs of our patients,
customers and communities we serve. Typically, we have a global participation rate of higher than 90 percent
for the survey. The responses are anonymous, but the results are provided to companies, regions and
departments to review and address any opportunities for improvement. Focused efforts on making change,
where appropriate, are important and have an impact on retention.
Performance Management
At the Johnson & Johnson Family of Companies, we are on a journey to redefine our performance management
and development approach (P&D). The hallmark of the new P&D approach is the focus on conversations
frequent and meaningful, formal and informal, conversations that fuel a culture of high performance.
Each employee and manager is expected to engage in clear and candid dialogue throughout the year within the
5 Conversations Framework, which consists of the Performance Planning, Midyear, Succession Planning, and
Year-end and Compensation conversations. These meaningful, ongoing conversations should reinforce each
other and ultimately result in clarity of expectations, alignment across the organization and an appreciation of
employee contributions.
The new P&D approach consists of two dimensions: Results and Leadership. The first dimension, Results, is
based on Management by Objectives framework for aligning employees goals and actions with the goals of
their company. The second dimension, Leadership, is based on the Leadership Imperatives.
The Leadership ImperativesConnect, Shape, Lead and Deliverand Our Credo represent the key behaviors
that are critical to the future success of the Johnson & Johnson enterprise
These two componentsResults and Leadershipprovide the basis for annual performance evaluation of all
employees. The evaluation on each dimension will be based on a four-point rating scale, with a strong link
between performance and pay.
The transition to the new P&D approach is phased by level globally. The transition began with 1,200 senior
Company leaders in 2012. The transition will continue with 27,000 Directors and Managers in 2013, followed
by the rest in 2015. To ensure an effective transition to the new P&D approach, the Corporate P&D team is
offering training to the managers on mechanics (e.g. stakeholder feedback, assessment, performance
calibration) and dynamics of the new approach (e.g. clear, candidand actionable conversations). Training will
help managers master the new P&D approach and develop coaching and feedback skills to enable meaningful,
ongoing conversations that engage and inspire our employees. To measure the effectiveness of the new P&D
approach, key performance indicators (KPIs) have been developed. The KPIs are designed around four pillars
that measure clarity and alignment, leadership accountability, transparency and fairness, and employee growth
and development. In 2012, the baseline for these KPIs was set and is now being measured.


PREMENDRA SAHU (ASST. PROFESSOR), CCEM




MODEL QUESTION PAPER

Q.1 what is Culture based performance management?
Q.2 Define measurement based performance management.
Q.3 Explain the competency based performance management.
Q.4 what do you understand by leadership based performance management?

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