Professional Documents
Culture Documents
UNIT I
INTRODUCTION TO PERFORMANCE MANAGEMENT
Definition:
Performance Management may be defined as a planned and systematic approach to managing the
performance of individuals ensuring their personal development and contribution towards
organizational goals.
Performance management is defined as a data guided approach to managing work behavior
--Daniels and Rosen (1984)
THE CONCEPT OF PERFORMANCE MANAGEMENT
Performance is understood as achievement of the organization in relation with its set goals. It
includes outcomes achieved, or accomplished through contribution of individuals or teams to
the organizations strategic goals. The term performance encompasses economic as well as
behavioral outcomes. Barambah views performance more comprehensively by encompassing
both behaviors and results. He is of the view that behaviors as outcomes in their own right,
which can be judged apart from results. Performance is an impact. The roles of any manage
can be seen in three parts: Being, Doing and Relating.
Being it is concerned with the competencies of the manage that are relevant to his/her
performance. It is preparedness of the mind of the manager.
Doing focuses on the manage activities that are variably effective at different levels in the
organization: that affect performance of other roles dependent on the manage output, and the
organizational performance as a whole. As someone said, Ideas are funny little things. They
wont work unless you do.
Relating emphasizes the nature of relationships with members of the role network-vertical,
horizontal or otherwise.
Performance has a linkage with the individual potential and how best it is realized by the
individual. With regard to manage, his/her potential becomes the input to the productive process
and performance is the output.
Managees Potential is determined when a set of tasks are assigned to him. It is also related to
performance standards set. Task-related activities refer to managees or supervisors
involvement to achieve the allocated task or meet expectations in the given task environment.
Performance is what the managees actually achieve. Performance in a role refers to the
extent to which the managees achieve the purpose for which the role is created.
Choice, not chance, they say, determines destiny. The actual performance of a managee is a
function of several forces, internals as well as external to the organization-some of choice, some
of chance. Most organizations do not take these forces into account-either systematically or
intuitively-while building expectations from a managee. A managee in her task environment
could be subject to some of the influences and factors shown in Exhibit.
Framework to Understand Role Performance
In this framework, Organizational Relevant Environment, Role Purpose or Objective,
Stakeholder Expectations, Role Technology and Input Role or Vendor Contribution are
inputs to the managees performance. These are substantially known, and are the factors and
forces, which organizational expectations from the Managee Performance can reasonably be
predicted.
Role Design, Managee Potential, Managerial Leadership, Competing and Collaborating
Colleagues, and Group Climate are throughput factors that can be optimized by a manager to
enhance the Managee Performance. These determine whether the organizations performance
expectations from a managee are realistic. As such, throughput factors are the core concerns of
PfM.
It can be argued that Role Design and Managee Potential are, in fact, input factors. However, a
manager can modify-enhance or stretch-these factors by improving the fit between the
managees capacities, resources and role requirements, PfM would assume these as throughput
factors.
Role Output or Managee Performance is the end-result-the effect for which we work. This is the
variable that is predicted or planned. It is invariably observable and measurable. The behavior of
all organisms is goal-directed. As such, people performance is not only a sequence of causes and
effects; it is a chain of sub-goals and actions, leading towards the ultimate goal. In fact, when a
managee has a goal, he/she behaves as if she is following some signposts that create a healthy
expectancy in him/her to reach the goal.
Role Purpose or Objective sets the boundary for the goal(s). It is a reference point for
Stockholders Expectation.
Managee Potential corresponds to the role to which a managee is assigned and the inputs he/she
receives to fulfill the role purpose. It stretches or contracts depending upon the Group Climate,
the behavior of the Competing and Collaborating Colleagues, and the Managerial
Leadership. The actual realization of a managees potential depends heavily on:
Group and Organizational Purpose.
Group or Organization Capacities and Resources.
Human Climate in the Group or the Organization.
Quality of Up-stream or Vendor Inputs.
Feedback on Performance.
Role Design is fashioned by the organizing process. The sole purpose of organizing and
designing a role is to provide a vehicle for implementing performance plans and expectations. It
determines the requisite competencies, knowledge and skills. Role design predominantly
determines task-related attributes needed by the managee.
Managerial Leadership predominantly determines the behavioral attributes needed by the
managee. Leadership role of the manager and managerial style of the leader are also major
determinants of the managees development and his/her job satisfaction. Managerial leadership
and group climate have considerable influence on each other.
Group Climate - The internal psychological environment of the group-influences the behavior,
style and performance of the managee. It is also, in turn influenced by the behavior and attitude
of the managee. Group climate is after all, the collective outcome of the behavior and attitudes of
all the members of the group-the managee and all his/her competing and collaborating
colleagues, the manager or the leader. People in any group or organization are less anxious about
work if both goal clarity and goal agreement are present. Considerable conflict arises when
purposes are unclear or when people disagree on what the priorities should be. Without
convergence on goals and priorities, groups or organizations cannot develop a climate that
facilitates performance.
process. The PMP involves feedback between the supervisor and employee
throughout the year, not just at the end of the year. A special emphasis is placed on the
supervisors coaching of the employee so that they can fulfill the expectations set forth at the
beginning of the year. This handbook gives guidelines on how supervisors can encourage
employees development year-round.
Numberless
Introduction
with the employee to define Accountabilities and performance standards. Make sure
they understand the Accountabilities and expectations about their work.
Explain
the five Behaviors, what is expected from the employee and why.Let the employee
know they are responsible for taking an active role in managing and assessing their performance
throughout the year.
Coaching: Provide frequent informal coaching. Point out the good work that the employee is
doing. Help the employee whose performance is lagging to bring their work up to par.
Identify
ways that the employee can develop and improve, and work with the Employee to
create development plans. Ask the employee for suggestions, so that they are encouraged to take
an active role.
Promptly
communicate new opportunities and changes that affect the employees work.
Identify observable actions that the employee should take so that your suggestions are concrete
and can be implemented.
Make
informal notes (perhaps on a calendar) when the employee does a good job, follow
through on development plans, or have problems doing so. These notes will help the supervisor
with the Mid-Year Review and the completion of the PMP form.
Keep
Review: Put together all saved notes or documents about the employees performance and
assess their performance on Accountabilities and Behaviors.
Ask
the employee for feedback about how they performed during the year. They may remind
the supervisor of particular instances of good performance or problems outside their control that
hurt their ability to do their job well.
Complete
PMP form, then discuss ratings and comments with the employee.
the supervisor questions until it is clear what is expected from you on all
Accountabilities and Behaviors.
Tell
your supervisor how you view the Accountabilities and Behaviors so that you can clear up
any possible misunderstandings about what is expected.
Discuss
customers expectations, the supervisors priorities, budget and anything else you can
think of that relates to getting the job done.
Coaching: Take responsibility for your own continuous performance improvement and
development.
Make
plans and follow through to meet the requirements of your Accountabilities and
Behaviors.
Periodically
throughout the year, ask the supervisor for feedback on your performance.
Consider the feedback you receive to be suggestions for improving performance, not personal
criticisms. Try to follow through on suggestions for improvement and development of new skills.
Talk
to the supervisor about your progress as well as any obstacles to improvement, so that the
supervisor can help remove the barriers to good performance.
Write
down when you do well on Accountabilities and Behaviors so that you can make sure
your supervisor knows about your accomplishments.
Request
a brief meeting with your supervisor, if needed, to ask for direction or a refresher
discussion on Accountabilities and Behaviors.
Occasionally
re-read the Accountabilities and Behaviors that were discussed in the Planning
meeting at the beginning of the year.
Review: M
onitor your performance by asking others to tell you how youre doing and by
keeping notes on your progress.
Prepare
in the review meeting by showing your supervisor any notes youve made about
your accomplishments and by suggesting things that might help you during the next PMP year.
Performance Management Process Overview
Reviewers Role in the PMP:
Planning: Read the PMP form before and after the supervisor and employee have had their
Planning session. Talk to the supervisor about plans for the meeting, as well as checking
afterward on how the meeting went.
Check
Talk
to the supervisor and make sure the expectations for the Accountabilities and Behaviors
were communicated clearly. Discuss any points of disagreement that may have arisen during the
Planning session.
Coaching: A
sk the supervisor periodically if informal discussions or coaching sessions have
taken place.
Ask
the supervisor how various employees are doing on the job. If the answer Seems weak,
you may need to encourage the supervisor to talk to employees more frequently about their
performance.
Review: Talk to the supervisor before and after the Mid-Year Review. Check in advance on
the kind of feedback the supervisor plans to give. Afterward, find out how the meeting went.
After
the Planning meeting, the Mid-Year Review, and Year-End Review, sign the section of
the PMP form titled Record of Meetings/Discussions. The same kinds of questions you posed
to the supervisor after the Planning session should be asked after each review session.
Look
over the fully completed form. Re-read how the supervisor and employee wrote the
Accountabilities and Behaviors, then look at the results and ratings. Talk to the supervisor about
how well the process went and how it might go better in the future.
Make
sure that the supervisor has explained each rating with written comments in the results
section. (Written results are required for all ratings except Meets Standards.)
Check
Discuss
with the supervisor whether verbal or written feedback is being given to Employees. A
supervisor who is not used to praising employees may need to be reminded of its importance.
Process Efficiency: Measures how effectively the management organization incorporates quality
control, Six Sigma and best practices to streamline operational processes (yield percentage,
process uptime, capacity utilization).
Cycle Time: Measures the duration of time (hours/days/months) required by employees to
complete tasks (processing time, time to service customer).
Resource Utilization: Measures how effectively the management organization leverages
existing business resources such as assets, bricks and mortar, investments (sales per total assets,
sales per channel, win rate).
Cost Savings: Measures how successfully the management organization achieves economies of
scale and scope of work with its people, staff and practices to control operational and overhead
costs (cost per unit, inventory turns, cost of goods).
Growth: Measures the ability of the management organization to maintain competitive
economic position in the growth of the economy and industry (market share, customer
acquisition/retention, account penetration).
Innovation: Measures the capability of the organization to develop new products, processes and
services to penetrate new markets and customer segments (new patents, new product rollouts,
R&D spend).
Technology: Measures how effectively the IT organization develops, implements and maintains
information management infrastructure and applications (IT capital spending, CRM technologies
implemented, Web-enabled access).
The perspectives and measurement families can now be combined to develop a KPI profile
matrix , which provides a construct for balancing the number and types of KPIs that are
developed. The profile matrix also ensures the proper mix of financial and non-financial
measures - typically a shortfall of most performance management implementations.
BASIC PRINCIPLES OF EFFECTIVE PfM
Quality and effectiveness of PfM is a reality in organizations only when certain basic and
fundamental tenets/ principles or practices of management are followed. These include:
1. Transparency decisions relating to performance improvement and measurement such as
planning, work allocation, guidance and counseling and monitoring, performance review etc.,
should be effectively communicated to the manages and other members in the organization.
2. Employee development and empowerment effective participation of employees/ managees
(individuals and teams) in the decision making process and treating them as partners in the
enterprise. Recognizing employees/ managees of their merit, talent and capabilities, rewarding
and giving more authority and responsibility etc., come under the umbrella this principle.
3. Values a fair treatment and ensuring due satisfaction to the stakeholders of the organization,
empathy and trust and treating people as human beings rather than as mere employees form the
basic foundation, apart from others.
4. Congenial work environment the management need to create a conducive and congenial
work culture and climate that would help people to share their experience knowledge and
information to fulfill the managees aspirations and achieve organizational goals. The managees/
employees should be well informed about the organizational mission, objectives, values and the
framework for managing and developing individuals and teams for better performance.
responsibility and develops a spirit to work with commitment and evaluate his/her strengths and
weaknesses from time to time and plan for reducing the performance gaps.
5. Leadership development the managers need to identify such of the managees who have
leadership potential and apart from sincerity and honesty to ensure better and effective two-way
communication between the managers and the managees.
6. System of feedback the organization must have a foolproof feedback system of managees/
individuals/ teams/ departments performance. It should be monitored continuously and generate
feedback loops for better performance management.
There must be a system that would help to monitor and measure all performance against the set
standards and the managees need to be informed of their shortcomings. The evaluation system
should be made transparent so as to repose managees faith in the system.
SCOPE OF PfM
The PfM The PfM should conform to broad organizational framework. It should provide for
managers and managees shared experiences, knowledge and vision. It encompasses all formal
and informal measures and procedures adopted by organizations to increase corporate, team and
individual effectiveness. Managees/ employees should be enabled continuously to develop
knowledge, skill and capabilities. PfM has got to be understood in totality of the organization but
not in various parts. PfM is designed and operated to ensure the interrelationship of each of these
processes in the organization.
PfM assumes that the managers and team members share accountability for performance by
jointly agreeing on common set of goals i.e., what they need to do and how they need to do it.
They jointly implement the agreed plans and monitor outcomes.
PfM is concerned with everything that people do at work. It deals with what people do (their
work), how they do
THE PROCESS OF PM it (their behavior) and what they do it (their result). PfM data
generated by the appraising process is used primarily for deciding rewards. Including
performance related pay. However, it is not the integral part of PfM process.
The process of Performance Management is comprised of three important parts (1) Planning
Managee Performance and Development; (2) Monitoring Managee Performance and
Development and (3) Annual Stock Taking. These occur in a specified sequence. Planning is
made at the beginning of the year while monitoring and mentoring is continued through out the
year as the plans are executed. Stocktaking takes place at the end of the year. Each one of these
phases requires certain concrete actions by the managers and the managee. Both these parties
(manager and managee) provide appropriate inputs by keeping the whole process in perspective.
The whole process of the performance management can be approached in a different mode.
Planning, review and stock taking can happen through out the year, more specifically at the time
of periodic review during the monitoring and mentoring phase. As such, these three phases are
dynamic and a continuously interact with one-another.
The plans are periodically reviewed and feasibility is tested the context of changing events and
influences that could not be adequately forcing. Since the process involves in both the managers
and the managees it has a participatory character. The following flow chart exhibits performance
management process in an organization
Organizational Mission,
Goals, Strategy, and Operational Plans
Role-wise Plans and Expectations
Individual Role & its Description, Indices for Monitoring Performance, Performance
Standards
Monitoring and Mentoring Activity
Feedback
Stocktaking
THE PERFORMANCE MANAGEMENT PROCESS
The chart exhibits that individual roles and their description, indices for monitoring performance.
Performance standards naturally cascade from organizational mission, goals, strategy and
operational plans. Since performance management aims to improve quality of coordination
among people in the organization, role-wise performance plans and expectations must flow from
both.
Organizations mission, strategy and operational plan, and individual managees role and his/her
contribution to organizational process are cardinal inputs to performance plans. The performance
plans of all the managees in the organization must finally add up to the organizational goals to
be achieved during the year. Managees performance and development plans are subjected to
monitoring and mentoring. Without cogent plans, for task accomplishment, it is not possible to
decide a benchmark to achievement against set goals. Mentoring and development draws it
direction from both development plan and requirements.
Mentoring can also include briefing the managee before each training and development activity
both on the job and off the job. Briefing focuses on the managee learning agenda. Debriefing the
managee crystallize his/her learning achieved during the training.
Stock taking both periodical and annual attempts to continuously assess the extent of work as
well as learning opportunity that have been optimally avail by the managee. Inputs to stocktaking
are provided by performance plans and monitoring and mentoring records. Stock taking also
provides several inputs to future performance plan. Review in task assignments, task systems and
tools are also possible through stocktaking. An assessment of managees development needs of
future tasks and responsibilities is done more realistically to stocktaking.
KEYS TO HIGH PERFORMANCE
Building Trust
Encouraging Change
Measuring what is important
Organizational Performance what it is?
Performance is all of these. Its the end result of an activity. And whether that activity is hours of
intense practice before a ORGANIZATIONAL PERFORMANCE concert or race or whether
its carrying out job responsibilities as efficiently and effectively as possible, performance is
what results from that activity.
Managers are concerned with organizational performancethe accumulated end results of all the
organizations work processes and activities. Its a complex but important concept, and managers
need to understand the factors that contribute to high organizational performance. After all, they
dont want (or intend) to manage their way to mediocre performance. They want their
organizations, work units, or work groups to achieve high levels of performance, no matter what
mission, strategies, or goals are being pursued.
Why is Measuring Organizational Performance Important?
Managers measure and control organizational performance because it leads to better asset
management, to an increased ability to provide customer value, and to improved measures of
organizational knowledge.
Performance Management
Performance management is a repeating process which involves monitoring performance of staff
and
giving
them
feed
back
so
that
performance
can
be
improved.
performance of employees can be measured in different ways, for example: you can measure by
looking at the number of unit produced, the quality of a product, timelines, cost effectiveness,
personal appearance, absenteeism and there are many more ways. Performance is measured
because employers need to monitor employees and make sure that each goal is completed in the
given
time,
if
not
monitored
employees
could
become
free
roamers.
The benefit of measuring employee performance are that, employers will be able to know if they
are meeting with customer requirements, which areas to improve on, if there are problems with
existing procedures, it will increase communication between staff and management, and most of
all employees will be recognised for the work they do and therefore motivate them more. (orau
[2010]).
AppraisalatWork:
When i used to work for BP my manager would call me out and give me feedback on my
performances and would tell me to improve on areas that i wasn't doing so well. when i managed
to complete tasks he would apprise me by saying that i did a good job and would tell me that i
would get promoted sooner if i continued like that. Just those words have motivated me to do
better and more and as time went he would keep on saying the same thing but then i got to the
point when i realized that i would never get promoted when my manager employed somone from
another store and therefore i dropped my performance level. the feedbacks however, were very
good but the apraisals was just to motivate me to increase performance. very nice trick from the
manager,
was
too
naive.
Mentors:
Mentors are experienced and skilled people who are here to help people, by listening, giving
advices
on
how
to
solve
things,
or
life
problems,
anything
really.
a skilled mentor would be one with very good listening skills, analytical skills, a very
experienced person who do not tell the person what to do but helps them and teaches them how
to do it. Mentor should have a number of useful conections, and most of all should be a person
who is approchable with any sorts of queries. (businesstimesonline [2010]). In my view a very
good mentor should be able review your erformance and give you feedback. a mentor who
doesn't give feedback is not really a mentor. and this is where the performance management
skills comes in for a mentor. Mentors need to be able to look analyse and give very
goodfeedback.
Mymentor:
When i first came to this country i was in year 7. At that school i had a mentor as i didn't know
the language aswell as the people and the place. He spoke french which was a great advantage,
he helped me through my school days, he knew a number of people that could help me to
improve my english skills. He also introduced me to kids in the school so that i could make
freinds and not be on my own, he has thaught me to be independent. He would always listen to
my problems and would give me very good advices on how to resolve them. By having had a
mentor i now feel more independent and know how to solve most problems, i have learned to
look at life and plan ahead before life looks at me and draggs me down.
Conclusion:
Overall i believe that performance management is required in all organisation as it is a crutial
process that would help organisations to achieve goals and detect problems if there are any.
Mentors without performance management skills, in my point of view will not be good mentors.
o
Organisation
development
&
people
performance
and
Other services
Technology
Financial advisory
Tax
Foreign desks
Organization & people performance and development
Our main focus is to align human capital strategies with business strategies so as to address the
people-related factors that affect an organizations performance and success. We provide
experience tested solutions in the areas of performance management and of competency-based
development programs, including organizational design, succession planning and 360 feedback.
Our service offering includes:
Design and delivery of assessment centers, including psychometric testing and role plays
Support with training programs design and evaluation, including vendor selection
UNIT II
PERFORMANCE PLANNING AND ANALYSIS
MEANING OF PERFORMANCE PLANNING
Performance planning is the process of communication between a manger and
an employee that results in mutual understanding of what the employee
should be doing during the next period of time.
Definition of Performance Planning
Performance planning define expectations the results to be achieved and the
skills, knowledge, expertise, and capabilities required to attain these results.
Performance planning and its need
Identifying potential barriers to successful achievement of jobs tasks and the
means of overcoming them
Developing an understanding of the relative importance of job tasks to work
unit
them in a form
SWR Strength Weakness & Review Individual Attribute Score = Total Score attained in each point of that
attribute/ 4
Individual Weight age Score = Individual Attribute score * Weight age
given to each attribute
Common Organizational Score/SW Score/ KPF Score = Sum of
Individual Weight age Scores in all 5 attributes/5
There can be other factors based on relevant factors.
What is Performance Analysis?
A serious definition goes like this:
Performance analysis involves gathering formal and informal data to help
customers and sponsors define and achieve their goals. Performance analysis
uncovers several perspectives on a problem or opportunity, determining any
and all drivers towards or barriers to successful performance, and proposing
a solution system based on what is discovered.
A lighter definition is:
Performance analysis is the front end of the front end. It's what we do to figure out
what to do. Some synonyms are planning, scoping, auditing, and diagnostics.
Performance Planning is
A. The first step in the overall process of Performance Management
B. Part of the partnership with the employee
Meet with employee to review the final plan and obtain their signature
you
collaborated
with
the
employee
and
agreed
that
the
That the Supervisor is invested in and willing to assist the employee to be successful
How individual job responsibilities and goals relate to the goals of the work unit and the
university
Not written on the plan, but should be discussed in the meeting with the
employee.
UNIT-III
PERFORMANCE
their effectiveness
PRD How? General climate of openness and mutuality Helpful and
empathetic attitude of manager Uninhibited participation by subordinates Dialogic
relationship in goal setting and performance review Focus on work-related behavior only
Discussion of contextual problems in achieving/not-achieving goals Avoidance of
discussion of salary and other rewards (not to be used in understanding relationship
iii) Resenting questions iv) Leading questions Questions that are helpful Testing
solving sessions) If AE does not understand or if he has wrong expectations from PRD (hold
a preliminary session before the actual PRD session) Avoid arguments (one argument will
make both defensive)
PRD When not to use :
PRD When not to use If PRD is given without being sought (likely to be of
limited value) If employee has serious emotional blocks in dealing with his supervisor
(use problem-solving sessions) If AE does not understand or if he has wrong expectations
from PRD (hold a preliminary session before the actual PRD session) Avoid arguments
(one argument will make both defensive).
IMPORTANCE OF PRD
First these discussions allow employees to improve their performance to identifying
performance problems and solution s for overcoming them.
Second, they help build a good relationship between supervisor and the employee
Objectives of PRD
THE PERFORMANCE REVIEW AND DEVELOPMENT PROCESS (PRD) is a system of
performance management that is a mechanism to provide ongoing interaction, recognize good
performance, and offer training and development opportunities. The PRD process was
developed using input from representative groups of employees at all levels to assure that UM's
needs and desires for a sound performance review process were met. The objectives of the
Performance Review and Development process (PRD) are:
Components of PRD
There are five major components of the PRD process, including at least three required meetings
and ongoing feedback over the course of the year-long review cycle
The Expectation-Setting Meeting
priority duties and most important aspects of the employee's job. They also determine what level
of performance would meet or exceed expectations.
Ongoing Feedback
throughout the review period. Expectations should be discussed and may be revised or
restructured according to needs.
Self-Assessment
performed throughout the review period. This self-appraisal is conducted twice a year, before
the Midway Feedback Session and before the final Performance Review. The information serves
as a discussion point during both appraisal sessions
.Midway Feedback Session
The supervisor and employee meet and discuss the employee's performance to date. The
employee receives a "mock" evaluation and an informal midway performance rating. The
supervisor and employee also discuss strengths and weaknesses and a development plan to
improve areas of concern.
End-of-Cycle Performance Review
the employee's performance during the review period. With employee input through the Self-
Assessment, performance is rated and training and development plans are discussed. When the
final review is completed, the supervisor and employee begin the next cycle by Performance
rating
A procedure for determining the value for a factor which will adjust the measured time for an
observed task performance to a task time that one would expect of a trained operator performing
the task, utilizing the approved method and performing at normal pace under specified workplace
conditions. Normal time (ultimately subjectively based) is the time that a trained worker requires
to perform the specified task under defined workplace conditions, employing the assumed
philosophy of a fair day's work for a fair day's pay.
Performance Rating
The performance rating process is concerned with determining normal pace during the work
portion of an average day and must, therefore, consider the fatigue recovery aspects of allowance
(nonworking) times occurring during the day. The following two equations relate factors in
determining how much time a worker will be allowed per unit of output: If the observed time for
a task is adjusted by the performance rating factor to determine normal time, and allowance time
is added for nonwork time, the standard time will represent the allowed time per unit of
production.
The most commonly employed rating technique throughout the history of stopwatch time study,
including the present, is referred to as pace rating. A properly trained employee of average skill is
time-studied while performing the approved task method under specified work conditions.
Rating consists only of determining the relative pace (speed) of the operator in relation to the
observer's concept of what normal pace should be for the observed task, including consideration
of expected allowances to be applied to the standard. See Human-factors engineering, Methods
engineering, Work measurement
onducting an Expectation-Setting meeting for the upcoming review cycle.
Performance Appraisal Rating Factors
The following are samples of rating factors and example standards taken from a variety of
sources. Some may overlap, and some may need to be expanded to include more descriptive
and/or numerical measures. Please feel free to combine or modify them to fit your needs by
cutting and pasting.
GENERAL
1. Adaptability
Efficiency with which employee works under stress and responds to change.
2. Assertiveness/Motivation
Degree to which the employee pursues goals with commitment and takes pride in
accomplishment.
3. Attendance
The extent to which the employee can be depended upon to be available for work and
to fulfill position responsibilities.
4. Communication
The extent to which the employee effectively listens, conveys and receives ideas,
information and direction.
Assesses and takes steps to improve ability to communicate (written and verbal)
so ideas and consultations are conveyed with precision and efficiency
5. Creativity
Extent to which employee generates workable and innovative ideas, concepts and
techniques.
6. CustomerFocus
The degree to which the employee takes the initiative to meet internal and external
customer needs in a timely and courteous manner.
7. Customer Service
The degree to which the employee represents the university community in a positive,
professional manner.
Uses a "Socratic" style of assistance - asking probing questions that elicit the facts
and help the customer through some of the decision-making process
Advises in a manner consistent with the complexity and nature of the customer's
need
8. Dependability/Initiative
The extent to which an employee effectively and enthusiastically accomplishes
assignments with minimal supervision.
Adapts to change
9. JobKnowledge
The demonstration of technical, administrative, managerial, supervisory, or other
specialized knowledge required to perform the job. Consider the degree of job
knowledge relative to length of time in the current position.
10. Judgment
Ability to analyze problems or procedures, evaluate alternatives, and select best
course of action.
11. Initiative
The degree to which the employee independently performs and accomplishes
assignments.
12. InterpersonalRelations
The degree to which the employee shows understanding and sensitivity to needs and
problems of others.
Meets deadlines
Recognizes decisions that have to be deferred until all pertinent facts are gathered
and analyzed
16. Productivity
Degree to which the employee produces the expected quality and quantity of
assignments.
Quantity of Work
The volume of work produced by the employee, along with his or her speed,
accuracy and consistency of output.
18. Resourcefulness
Consider the degree to which employee is a source of supply and support to the
department, customers, and/or the organization as a whole.
19. Responsibility
The degree to which the employee demonstrates dependability in work performance.
Adheres to instructions
20. Safety
Degree to which employee adheres to safety and health regulations.
Meets deadlines
23. WorkHabits
The manner in which an employee conducts his or herself in the working
environment.
Displays professionalism
2. Teamwork
The degree to which the employee works well in a team setting.
SUPERVISORY FACTORS
1. Cost Effectiveness
Extent to which employee seeks best use of materials, equipment, and staff to maximize
efficiency and effectiveness.
3. DevelopmentofSubordinates
Consider the employee's ability to effectively evaluate skills, knowledge, aptitudes,
interests and developmental needs bearing on individual and group work performance.
Provides appropriate support for employee to reach his/her potential and goals
4. Leadership
Consider the employee's ability to direct the operations, activity and performance of
others.
5. PerformanceAppraisals
Degree to which employee prepares thorough and objective annual appraisals.
6. StaffDevelopment
Degree to which employee provides opportunities to challenge subordinate's capabilities
and develops the knowledge and skills necessary for career development.
Bias Errors - when raters are too severe in their ratings on all employees (negative
bias) or when raters are too easy in their ratings of all employees (positive bias), and do not take
into account the individual employees actual job performance.
Halo
Effect - when raters let an assessment of an employee on one task influence their overall
rating of the employee.
Logical
Rating Error - when raters give an employee a high score on one task because it is
related to another task that the employee performed well.
Contrast
and Similarity Errors - when raters judge others based on how they perceive
themselves, either similar to the employee or different from the employee.
Central
Tendency Errors - when raters are reluctant to make extreme judgments about
others, avoiding the extremes on the rating scale, which results in a narrow range of scores.
Proximity
Supervisors and reviewers should review these rating errors and biases on a regular basis. Being
aware of them is the best way to avoid them. Reviewers should look for these kinds of biases
when they are looking at various supervisors consistency in use of the PMP.
UNIT IV
IMPLEMENTING PERFORMANCEMANAGEMENT SYSTEMS AND
APPRAISAL SYSTEM
IMPLEMENTING PROCESS
Overview
A performance management framework will make it possible for WSPs to address:
desired
performance measures;
setting
performance targets;
monitoring
performance;
performance
improvement.
This Guide provides a quality frame work for performance management capable of consistent
implementation by all service providers. At this stage it defines only the minimum number of
generic performance measures for performance assessment and reporting.
Service providers should review their performance management requirements and use this Guide
to develop their own asset management measures as appropriate.
Features of a performance management framework
The performance management framework identifies a number of key objectives for operational
and Managerial responsibility within the organization. These are listed in Appendix B.
The Performance Management Framework has the following features:
The
9.Monitoring performance
10.Performance Evaluation
11.Performance improvement
Performance Appraisal
Performance appraisal is the key ingredient of performance management. In a work group
members, consciously or unconsciously, make opinion about others. The opinion may be about
their quality, behaviors, way of working etc, such an opinion becomes basis or interpersonal
interaction. In the same way, superiors form some opinions about their subordinates for
determining many things like salary increase, promotion, transfer, etc. in large organizations; this
process is formalized and takes the form of performance appraisal. Performance appraisal in
some form has existed in old days also. For example, Wei dynasty in China introduced
performance appraisal in which an Imperial Rater used to appraise the performance of members
of the official family. In its present form, the New York City Civil Service adopted performance
appraisal in 1883. Since then and especially after World War I, performance appraisal in formal
way has been adopted by most of the large organizations particularly in business field. In our
country too, large organizations adopt formal appraisal method.
Definitions of Performance Appraisal
Wendell French, the formal, systematic assessment of how well employees are performing
their jobs in relation to established standards, and the communication of that assessment to
employees
Concept of performance Appraisal
Appraisal is the evaluation of worth, quality or merit. In the organization context, performance
appraisal is a systematic evolution of personnel by superiors or others familiar with their
performance. Performance appraisal is also described as merit rating n which one individual is
ranked as better or worse in comparison to others. The basic purpose in this merit rating is to
ascertain an employees eligibility of promotion. However, performance appraisal is more
comprehensive term for such activities because its use extends beyond ascertaining eligibility of
promotion. Such activities may be training and development, salary increase, transfer, discharge,
etc, besides promotion. A formal definition of performance appraisal is as follows:
it (performance appraisal) is the process of evaluating the performance and qualifications of
the employees in terms of the requirements of the job for which he is employed, for the purposes
of administration including placement, selection for promotion, providing financial rewards and
other actions which require differential treatment among the members of a group as distinguished
from actions affecting all members equally each has defined performance appraisal as follows:
Performance appraisal is the systematic evaluation of the individual with regard to his or her
performance on the job and his potential for development.
Thus, performance appraisal is a systematic and objective way of judging the relative worth or
ability of an employee in performing his bob. It emphasizes on two aspects; systematic and
objective. The appraisal is systematic when it
Feedback to Employee
Compensation Decisions
Reduce Subjectivity
Improves Supervision
performance appraisal discloses how an employee is working in his present job and what his
strong
3. Training and Development. Performance appraisal tries to identify the strengths and
weaknesses of an employee on his present job. This information can be used for devising training
and development programmes appropriate for overcoming weaknesses of the employees. In fact,
many organizations use performance appraisal as means for identifying training needs of
employees.
4. Feedback. Performance appraisal provides feedback to employees about their performance. It
tells them where they stand. A person works better when he knows how he is working; how his
efforts are contributing to the achievement of organizational objectives. This works in two ways.
First, the person gets feedback about his performance and he may try to overcome his
deficiencies which will lead to better performance. Second, when the person gets feedback about
his performance, he can relate his work to the organizational objectives. This provides him
satisfaction that his work is meaningful. Thus, given the proper organizational climate, he will
try his best to contribute maximum to the organization.
5. Pressure on Employees. Performance appraisal puts a sort of pressure on employees for
better performance. If the employees are conscious that they are being appraised in respect of
certain factors and their future largely depends on such appraisal, they tend to have positive and
acceptable behavior in this respect. Thus, appraisal can work automatically as control device and
weak points are. In the light of these, it can be decided whether he can be promoted to the next
higher position and what additional training will be necessary for him. Similarly, performance
appraisal can be used for transfer, demotion and discharge of an employee.
approaches. The appraiser rates an employee according to items along a numerical scale, but the
items are examples of actual behavior on a job rather than general descriptions or taints.
Multi-person Comparisons:
Multi-person comparisons compare one individuals performance with that of one or more
others. Its a relative, not an absolute, measuring device. The three most popular approaches to
multi-person comparisons include group order ranking, individual
particular classification such as top one-fifth or second one-fifth. The individual ranking
approach requires the evaluator merely to list the employees in order from highest to lowest. In
the paired comparison approach, each employee is compared with every other employee in the
comparison group and rated as either the superior or weaker member of the pair. After all paired
comparisons are made; each employee is assigned a summary ranking based on the number of
superior scores he or she received.
Objectives:
MBO is also a mechanism for appraising performance. In fact, its the preferred method for
assessing managers and professional employees. With MBO, employees are evaluated by how
well they accomplish a specific set of goals that has been determined to be critical in the
successful completion of their jobs.
360 Degree Feedback:
360 degree feedback is a performance appraisal method that utilizes feedback from supervisors,
employees, and co-workers. In other words, this type of review utilizes information from the full
circle of people with whom the manager interacts. Companies such as Alcoa, Pitney Bowes,
AT&T, DuPont, Levi Strauss, and UPS are using this innovative approach. Users of this
approach caution that, although its effective for career coaching and helping a manager
recognizes his or her strengths and weaknesses, its not appropriate for determining pay,
promotions, or terminations.
Compensation and Benefits
Would you work 40 hours a week or more for an organization for no pay and no benefits?
Although we might consider doing so for some social cause organization, most of us expect to
receive some compensation from our employer. An effective and appropriate compensation
system can help attract and retain competent and talented individuals who can help the
organization accomplish its mission and goals.
Managers must develop a compensation system that reflects the changing nature of work and the
workplace in order to keep people motivated. Organizational compensation can include many
different types of rewards and benefits such as base wages and salaries, wage and salary add-ons,
incentive payments, and other benefits and services.
As levels of skills tend to affect work efficiency and effectiveness, many organizations have
implemented skill-based pay systems, which reward employees for the job skills and
competencies they can demonstrate. In a skill-based pay system, an employees job title doesnt
define his or her pay category; skills do. For example, the highest pay a machine operator at
Polaroid Corporation can earn is $14 an hour. However, because the company has a skill-based
pay plan, machine operators can earn up to a 10 percent premium if they broaden their skills and
perform tasks such as material accounting, equipment maintenance, and quality inspection. Skillbased pay systems seem to mesh nicely with the changing nature of jobs and todays work
environment. As one expert noted, Slowly, but surely, we are becoming a skill-based society
where your market value is tied to what you can do and knowledge are what really count, it
doesnt make sense to treat people as jobholders. It makes sense to treat them as people with
specific skills and to pay them for these skills.
(a).Unstructured Method
(b).Straight Ranking Method
(C).Paired Comparison Method
(d).Grading Method
(e). Critical Incident Method
Modern Methods (MM).
(a).Behaviorally Anchored Rating Scales (BARS)
(b). Management By Objectives (MBO)
(c). 360 Gegree Appraisal
1. TM :(a). Unstructured Method
Unstructured manner
Highly subjective
TM :(c). Paired Comparison Method
Performance rated on the basis of certain events that occurred during the performance of
the job
Under this technique the behaviour of the employee in all significant incidents is
recorded in a book and reviewed at the end
Retranslate Incidents
Substitutes good intentions with a process where everything is put in black & white
Process
Define Role
Define KRAs
Indicators of Effectiveness
Monitor
Superior
Peers
Subordinates
Holistic view
Immediate Supervisor
Employees Peers
Self Appraisal
Employees Subordinates
When to Appraise?
Periodic Appraisals
What to Appraise?
Job Analysis
Note deviations
Reliability
Job Related
Standardization
Training to Appraisers
Open Communication
Clear Objectives
and those where their performance fell short of managerial expectations. Instead of focusing on
the job at hand, employees and managers can be diverted by an annual occurrence, which may
not provide the most accurate measure of performance.
Appraisals and HR decisions
Appraisal of employee performance is one of the most widely used human resource management
practices of American employers. The overwhelming majority of employers, whether private,
public or not-for-profit, have some kind of performance appraisal system. Among the reasons
usually advanced for the widespread adoption of performance appraisal is that it may be used to:
* Encourage supervisors to observe subordinates more closely and carefully, and to do a better
job of coaching;
* Provide information for personnel decisions on pay, promotion, job assignments, training,
layoffs, etc.;
* Give employees the opportunity to express their job expectations, ambitions, satisfactions and
dissatisfactions;
* Provide data for personnel research, e.g., validating employment tests, evaluating training
programs.
Even though performance appraisal has many actual or potential benefits, it has nevertheless
been frequently criticized and found wanting. Dissatisfaction with performance appraisal has
been expressed by human resource management professionals, line managers responsible for
appraisals, employees who are the subjects of appraisals, top managements of enterprises and
judges rendering decisions in court cases involving appraisal of employee performance. Some
critics have gone so far as to advocate doing away with employee appraisals altogether.
Why has performance appraisal been subjected to so much criticism? The answer lies in the
failure of appraisals to deliver what has been expected of them. This failure may be attributable
to two fundamental weaknesses that have often underlined appraisals: faulty design of appraisal
systems and failures in system administration.
Weaknesses in system design Performance appraisal systems are sometimes criticized for
measuring or evaluating the wrong job behaviors or results, or for focusing on employees'
personal characteristics rather than on job performance. In some cases, standards for evaluating
employee performance are not related to the duties required of job incumbents; in others, the
standards reflect relatively minor, incidental, or unimportant job duties, not the critical ones.
Employees are not likely to be receptive to a system that is supposed to evaluate how well they
are doing if, in fact, performance standards are not based on their actual work or fail to
emphasize its really important aspects. Also, the standards may not keep up with changes in jobs
and employees may be appraised on the basis of standards that are no longer relevant.
Furthermore, all too frequently standards tend to focus on the person's personality or other
characteristics, rather than on job performance.
UNIT-V
INTRODUCTION OF REWARD SYSTEM
It refers to an organizations integrated policies, processes,and practices for rewarding its
employees in accordance with their contribution, skill and competence, and their market worth.
What's a reward system?
RewardSystem
(a) The personal and social gratification derived from role-playing, a feature of Creative Agenda.
(b) In-game changes, usually to a player-character, a feature of System and Character. (c) As a
subset to (b), improvement to one or more of the character's Components. Typically, the term
refers to how (a) is facilitated by (b).
Skill Variety
Task Identity
Task Significance
Autonomy
Moderate risks
Feed back
and
employees
have
to
continuously
perform
at
higher
levels.Therefore ,the manner in which performance is managed and the way the reward is
structured
Certainly influences the level
structured certainly influences the level of performance ,at both the individual and
organizational level. Integrative performance management and reward system should be put
in place to ensure quicker accession to a world-class status.
The major constraints in linking rewards with performance
Individual Competence
Job Performance
(a).Opportunity
(b).Motivation
-Cultural attributes
-Higher Performance
Job Satisfaction
--Continuous improvement and learning
and then see them to through to launch. A key element of this is the management of personal risk
and reward system. Organizations need people, and people need organizations. By and large, the
best people tend to go to organizations offering the best rewards. A useful dichotomy in thinking
about the design of reward system is process and content.
Appendix
Performance Review Form
Personal Data
Employee ID
Employee Name
Job Title
Division/Section
Reviewer
Review Period
and Ratings
Responsibilities (Elements)
Accomplishments
of
results
to
be mutually
established each
performance
or
job
responsibility
(element).
___ Outstanding
___ Excellent
current
with
all
___ Commendable
required
ES&H
training;
suggestions
improving
the
for
safety
___
Does
not
meet expectations
or
environmental performance of
the Laboratory; reporting any
work-related injuries or nearmisses
promptly
supervisor;
to
your
and
taking
measures
to
protect
and
preserve
the
Fermi
lab
environment,
where
appropriate.
2. ES&H Demonstrate visible
leadership in support of the
___ Outstanding
___ Excellent
regular
of
area
of
___ Commendable
___ Fully competent
expectations
___
b) Attending
required
ES&H
training
courses,
with
subordinates
Does
not
meet expectations
wherever
possible;
c) Soliciting ES&H suggestions
from employees and always
responding;
2. Incorporating ES&H into the
agenda of every staff meeting.
3.
___ Outstanding
___ Excellent
___ Commendable
___ Fully competent
___ Meets minimal
expectations
___
Does
not
meet expectations
4.
___ Outstanding
___ Excellent
___ Commendable
___ Fully competent
___ Meets minimal
expectations
___
Does
not
meet expectations
5.
___ Outstanding
___ Excellent
___ Commendable
___ Fully competent
___ Meets minimal
expectations
___
Does
not
meet expectations
6.
___ Outstanding
___ Excellent
___ Commendable
___ Fully competent
___ Meets minimal
expectations
___
Does
not
meet expectations
7.
___ Outstanding
___ Excellent
___ Commendable
___ Fully competent
___ Meets minimal
expectations
___
Does
not
meet expectations
8.
___ Outstanding
___ Excellent
___ Commendable
___ Fully competent
___ Meets minimal
expectations
___
Does
not
meet expectations
9.
___ Outstanding
___ Excellent
___ Commendable
___ Fully competent
___ Meets minimal
expectations
___
10.
Does
not
meet expectations
___ Outstanding
___ Excellent
___ Commendable
___ Fully competent
___ Meets minimal
expectations
___
Does
not
meet expectations
Core Competencies
Initiative
Competency Ratings
Select one rating for each competency
and The ability to plan work, to go ahead with a task without being told every
Creativity
Judgment
The extent to which the employee makes decisions that are sound.
Ability to base decisions on fact rather than emotion.
Reliability
Commitment
Safety
to Ability to adhere to all safety rules and perform work in safe manner.
employee is reliable and persistent.
(Negative individual behavior leading to undesirable safety practices
may require correction via the disciplinary process).
__ Fully
__ Commendable
__ Excellent
__
Outstanding
expectations
expectations
__ Does not meet __ Meets minimal
competent
__ Fully
__ Commendable
__ Excellent
__
Outstanding
expectations
expectations
__ Does not meet __ Meets minimal
competent
__ Fully
__ Commendable
__ Excellent
__
Outstanding
expectations
expectations
__ Does not meet __ Meets minimal
competent
__ Fully
__ Commendable
__ Excellent
__
Outstanding
expectations
expectations
__ Does not meet __ Meets minimal
competent
__ Fully
__ Commendable
__ Excellent
Outstanding
expectations
expectations
competent
__
__ Fully
__ Commendable
__ Excellent
__
Outstanding
expectations
expectations
competent
Respect
Strategic
self andadvice
others and
accountable
for actions.
Offers
creates plans
based on analysis of issues and trends
Thinking: Analysi
s and Ideas
organization.
Scans an ever-changing, complex environment in
Engages employees, teams and collaborators in developing goals,
Engagement: Peo
ple,
Teams,
Collaborators
Management
that the staff has the knowledge, skills and versatility to meet current and
Excellence:
longer-term goals. Ensures that people have the support and tools they
need
to succeed
their work.
Manages
the performance
Accesses
and in
reviews
standard
budget
reports as management
appropriate.
Resource
Management:
Gathers and
Summary of Performance
andbudget
Review
of to
Competencies
analyzes
data
ensure cost effectiveness and efficiency.
solid Good,
solid Excellent
performance
Outstanding
performance
performance
the
for
minimum
improvement position
position
consistently
in
position
requirements
generates
extraordinar
Employee requirements
requirements requires
.
and goals.
Requires either
immediate
review
and development
action
in
deficient
including
technical
on
of may
Performance new
or,
be
hire
Improvemen
requiring
t Plan (PIP).
familiarity
with
lab
processes; or,
is
on those
not
responding
favorably to
and
exceptional
occasion,
expected
generate
the
of accomplishm
position. ents
with
implementati areas;
results
additional
that
expected
an
excellent contributions
of manner
the position.
to to goals of the
Division
innovations.
Laboratory.
or
________________________________________________
Date
__________________________
(Manager of reviewer)
Reviewer Acknowledgement of Performance Review Document
I have discussed the performance review document with the employee and advised the
employee of his/her overall rating.
Reviewer
Signature
________________________________________
Date
________________________
(Person who prepared the review)
Employee Acknowledgement of Performance Review Discussion
My supervisor/manager has reviewed and discussed the performance review document with
me. My signature means that I have been advised of my performance status and does not
necessarily imply that I agree with it.
Employee
Signature
________________________________________
_________________________
Date
Mr.S.NAGARAJAN
M.Sc IT&Mgt.,M.Com.,M.B.A.,M.Phil.,
ASSISTANT PROFESSOR
GNANAMANI INSTITUTE OF MANAGEMENT STUDIES