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MBA 09 HR 02 PERFORMANCE MANAGEMENT TOPICS

1. INTRODUCTION TOPERFORMANCE MANAGEMENT


An Overview of performance management system
Dimensions of performance management
Performance management process
Organizational and Individual performance and impact of objectives

2. PERFORMANCE PLANNING AND ANALYSIS


Performance planning and its need
Components of performance planning
KPAs
Performance analysis
Objectives of performance analysis
Process of performance analysis

3. PERFORMANCE REVIEW DISCUSSION AND PERFORMANCE


RATINGS
Objectives of PRD
Process of performance Review and Discussion
Performance rating and factors
Methods and errors
Reducing raters bias
Performance rating and administrative Decisions

4. IMPLEMENTING PERFORMANCE MANAGEMENTSYSTEMS


AND APPRAISAL SYSTEMS
Implementing process
Factors affecting implementation
Pitfalls in implementation
Performance Appraisals
Methods of Appraising
Appraisals and HR Decisions
5. REWARD SYSTEMS
Introduction of reward systems
Dimensions of reward systems
Constraints in linking rewards with performance
Implications for managers and for organizations

Monetary and Non-monetary rewards

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.

PERFORMANCE MANAGEMENT PROCESS OVERVIEW

Introduction to the Performance Management Process


This handbook is an introduction to the Performance Management Process (PMP), providing
information to State of Oklahoma employees, supervisors and others who have an interest in
performance management. While supervisors may use this handbook as a reference guide to the
PMP, this document is not intended to stand alone; all supervisors will receive training and
additional reference material on the new performance management system.
The PMP is designed to be a year-round partnership between employees and supervisors in
the planning, coaching and reviewing of job performance. Unlike previous statewide
systems for performance appraisal, the PMP takes into consideration not just employees
Accountabilities, but also a set of five Behaviors that influence their performance:
Customer Service Orientation, Teamwork, Problem-Solving Initiative, Leadership and
Observing Work Hours/Using Leave. For many state workers, these Behaviors may seem
familiar, as they were chosen to reflect performance factors that various agencies have
included in their own evaluation systems for years.
Performance coaching is critical to the process. Employees and supervisors are expected to
have ongoing discussions about the Behaviors, skills and abilities required to succeed.
This handbook explains the year-round process, from the plans that employees and
supervisors make regarding Accountabilities and Behaviors, to the completion of the PMP
form .
Performance Management is a process for establishing a shared understanding about what
is to be achieved and how it is to be achieved. It is an approach to managing people that
increases the probability of achieving success.

PERFORMANCE MANAGEMENT PROCESS OVERVIEW


Why Change?
A review of Oklahomas classification and compensation system in 1997-98 included a revision
of the states performance management, with the aim of moving into a system of rewarding
excellent performance by state employees. The state hired the Hay Group as a consultant as part
of the Classification/Compensation Reform Project. The consultant surveyed selected agency
heads, supervisors, and focus groups, composed of state employees and other stakeholders, to get
feedback on the way performance appraisals have been done in the past and how they think
performance management should be conducted under the new PMP.
The following table summarizing the feedback is divided into four categories: Culture,
Planning, Coaching and Review.
Features of the PMP(Performance Management Process)
Here is a look at the main features of the PMP:
Year-round

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

ratings. The PMP is a numberless system. On each Accountability, an


employee will receive one of the following ratings: Does Not Meet Standards, Needs
Improvement, Meets Standards or Exceeds Standards. This handbook will provide guidance
on what each category means.

Introduction

of Behaviors. Many agencies have developed their own performance appraisal


systems and have rated employees on factors like customer service that affect their performance.
With the PMP, all employees have a chance to be rated on the following Behaviors: Customer
Service Orientation, Teamwork, Problem-Solving Initiative, Leadership (if applicable), and
Observing Work Hours/Using Leave. The Behaviors will be rated Does Not Meet Standards,
Meets Standards or Exceeds Standards, except for Observing Work Hours/Using Leave, which
wont have an option for Exceeds Standards.
The ratings are explained in more detail later in the handbook.
Partnership.

The PMP encourages a partnership between the supervisor and employee,


focusing on regular discussions about Accountabilities, performance expectations and
development plans. The supervisor and employee begin the year with an extensive discussion of
the Accountabilities and what is expected from the employee. Both the supervisor and employee
have a responsibility to initiate conversations about performance throughout the year.
Training

for supervisors. All supervisors will be required to go through a training program


before they do any performance appraisals with the PMP. They will be provided with additional
training materials, resource guides and definitions of Behaviors so they can do a good job of
assessing employees performance and helping them improve. When supervisors receive their
own evaluation at the end of the year, a mandatory Accountability will be on Performance
Management, so supervisors have an incentive to follow through with their commitment to coach
employees.

Roles of Supervisors, Employees and Reviewers in the PMP


Several people share the responsibility in the coaching, development and feedback involved in
the PMP. Following are descriptions of the roles played by various people:
Supervisors Role in the PMP:
Planning: Explain to the employee how they help the agency provide services to the public
and other agencies.
Work

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

track of praise or complaints from customers regarding an employees work.

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.

Performance Management Process Overview


Employees Role in the PMP:
Planning: M
eet with your supervisor at the beginning of the PMP year. Discuss your
Accountabilities and how they fit into the agencys goals for successful operation. Make
suggestions on how to improve the description of the Accountabilities.
Ask

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

for the review discussion by collecting your notes on your performance.


Participate

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

on whether the Accountabilities include statements of performance standards -- that is,


statements describing what it would take to receive a rating of Meets Standards.

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

for a given supervisors consistency in managing the performance of a number of


employees. Check for consistency between supervisors in the use of the PMP. A given supervisor
should be consistent in the interpretation of the meaning of ratings and other facets of the PMP,
and a number of supervisors with similar employees should be consistent in their understanding
and use of the system.

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.

DIMENSIONS OF PERFORMANCE MANAGEMENT


The KPI(Key performance Indicators)
Family Dimension
Another important consideration in the development of KPIs is the selection of the appropriate
measurement family to capture operational performance over time and then relate these KPIs to
internal business and external industry benchmarks. Although the following list reflects common
measurement families, different industries will have their own specific business drivers and
related measures.
Productivity: Measures employee output (units/ transactions/dollars), the uptime levels and how
employees use their time (sales-to-assets ratio, dollar revenue from new customers, sales
pipeline).
Quality: Measures the ability to meet and/or exceed the requirements and expectations of the
customer (customer complaints, percent returns, DPMO -- defects per million opportunities).
Profitability: Measures the overall effectiveness of the management organization in generating
profits (profit contribution by segment/customer, margin spreads).
Timeliness: Measures the point in time (day/week/ month) when management and employee
tasks are completed (on-time delivery, percent of late orders).

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.

5. External environment effective and contextual management of external environment to


overcome the obstacles and impediments in the way of effective managerial performance.
FEATURES OR CHARACTERISTICS OF EFFECTIVE PM
PfM is a complex concept that encompasses different dimensions of the organization and the
people. The mission, the object organization should be well designed. Performance planning,
development and reward systems enable the managees to realize their true potential in order to
contribute for organizational growth and development.
The manageesperformance and quality is a function of several prerequisites that managers need
to take care of. The following constitute the prerequisites /characteristics to ensure effective
practice of PfM:
1. Clarity of organizational goals the managers need to clearly and precisely lay down the
organizational goals, objectives and ensure that these are well informed to the managees and
other employees and make them to realize what the organization expects from them. The
organizational goals need to be translated into individual, team and departmental/ divisional
goals.
2. Evaluation the individual, team, department/ divisional performance needs to be evaluated
on continuous basis. The organization should develop an evaluation system and process, which is
designed and developed on scientific lines.
3. Cooperation but not control the managers should nurture the practice of getting work done
through the system of obtaining manageesconsensus rather than through control or coercion.
4. Self-management teams the management need to encourage the individual and teams for
self-management of their performance This procedure creates in the manages a sense of

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.

Measures of Organizational Performance


There are three ways of measuring organizational performance. Generally applied measures are
1. Productivity 2. Organizational Effectiveness, 3. Organizational Ranking. Peter F. Drucker the
well-known management guru was of the view that an organizations employees need to see the
connection between what they do and the outcomes. He said, The focus of the organization
must be on performance The spirit of organization is high performance standards, for the
group as well as for each individual. But before employees can see this connection and work
toward achieving high performance, managers need to specify the performance outcomes that
will be measured. The most frequently used organizational performance measures include
organizational productivity, organizational effectiveness, and industry rankings.
What Are The Components of A Performance Management System?
Many people mistake performance appraisal for performance management. Actually,
performance management is a much bigger system, and is much more valuable to managers and
companies (and employees) than performance appraisal. The essential components or parts of an
effective performance management system include:

Performance Planning (includes employee goal setting / objective setting)

Ongoing Performance Communication

Data Gathering, Observation and Documentation

Performance Appraisal Meetings

Performance Diagnosis and Coaching

The Role of Performance Management in Organizations

Performance management is a quickly maturing business discipline. Like


its better known siblingssales and marketing, human resources, supply chain management, and
accounting and financeperformance management has a key role to play in improving the
overall value of an organization.
Wayne Ackerson of The Data Warehouse Institute defines Performance Management as
a series of organizational processes and applications designed to optimize the execution of
business strategy.

Individual and organizational performance


Derek Stockley highlights some of the key issues involving performance, both at the
individual and organizational level.
Performance is the underlying theme for organizations
Many companies and organizations embrace new concepts and ideas to
help better manage day-to-day activities or business.
Sometimes people become so involved in the new process, they forget
the more important aspects, particularly the need to focus on benefits
and outcomes.
In the early days, the quality movement suffered greatly from the overemphasis on the format and style of quality manuals and other
documents. The focus became the documents themselves, rather than
the processes that they described.
Organizations need to focus on the critical elements of performance.
Although a variety of different tools and methods exist (quality,

balanced scorecard, six sigma), the important point is achieving the


improvements and refinements expected. Improved benefits and value
must be achieved.
Performance at the individual or organizational level
Different organizations have different problems. I was recently involved
in a discussion with three managers from three different organizations.
Each organization had its own performance need.
In one case, performance problems were widespread. Multiple actions
at multiple levels were required to address some basic and fundamental
problems.
At the other extreme, another manager reported on a very healthy
organization with a strong performance culture. The organization
climate was also positive and morale was high. Even so, there were still
some areas where improvement was possible. In this case, some
individuals required greater assistance. Quality processes were not
achieving the expected results because of personal issues.
In summary, I recommend that you focus on the outcomes. Use
whatever processes are suitable, but remember they are tools - a means
to an end. Even successful companies can find areas for improvement.
Sometimes, large-scale change is required. In other companies, specific

pressure points require attention. This may involve individuals,


organizational units or processes.
If you have a comment you would like to make, please send the
comment to one of the email addresses listed below.
.The major portals on this site are: Training Courses and Consulting, Learning,
Performance Management and Website Optimizations.

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

Cosourcing & resourcing

Enterprise risk services

Human capital advisory services

Change management and corporate culture

Compensation and benefits

Executive search & selection

HR operations and technology

Organisation
development

&

people

performance

and

Other services

Strategy & operations

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:

Assessment and (re-)design of competency models and performance management


schemes, including their integration with remuneration policies.

Job design and job grading

Workforce planning and development, including talent identification and development


programs and succession planning

New hires integration and on-boarding

Design and delivery of assessment centers, including psychometric testing and role plays

Design and administration of tailor made 360 evaluation processes

Team effectiveness evaluation and improvement

Coaching and definition of development programs based on results of assessment centers,


360 feedback or other specific needs both at individual and team levels

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

(eg., Setting performance criteria for employees and documenting

them in a form

Identifying the help required by employees from their managers to


successfully carry out job tasks.
Division or department)objectives and goals

KRAs(Key Result Areas)


The KRAs are considered to be a parameter for performance is mutually
agreed upon by both appraise and appraiser.
The KRAs are the activities/project/s which are assigned to an employee
time to time and are essentially SMART.
It should be:
Specific RelevantMeasurable Time-basedAchievable-----------------------------------------------------------------------------------Key Performance Factors or KPA are the factors that make up an
employees job. KPAs are fixed and are those where the incumbent is doing
the maximum value creation for organization.

These 5 Key Performance Factors (In General) are


Job knowledge
Quality of output
Quantity of output
Cost/time consciousness
Team Work
2 methods adopted to carry on KPF analysis are dependent on size of the
team and are-Team size more or equal to 5
PCR Paired Comparison & Review - Each employee is compared with all
his team members individually on basis of KPFs. He/ she is given 1 ( if
better than other with whom he / she is compared) or 0 ( vice-versa). His
total individual score is obtained by adding all 1s obtained by him in the
sheet.
Individual Weightage score = Total Individual score * Weightage given
to each attribute
Individual Attribute Score = Weightage score / No. of employees in the
department
Common Organizational Score/PC Score/ KPF Score = Sum of
Individual Attribute Scores in all 5 attributes
Team size less than 5

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.

What does a performance analyst do?


Here's a list of some of the things you maybe doing as part of a performance
analysis: Interviewing a sponsor
Reading the annual report
Chatting at lunch with a group of customer service representatives

Reading the organization's policy on customer service, focusing

particularly on the recognition and incentive aspects


Listening to audiotapes associates with customer service complaints
Leading a focus group with supervisors
Interviewing some randomly drawn representatives
Reviewing the call log

Reading an article in a professional journal on the subject of

customer service per


Chatting at the supermarket with somebody who is a customer, who
wants to tell you about her experience with customer service

OBJECTIVES OF PERFORMANCE ANALYSIS


1. Industry awareness
2. Leadership skills
3. Interpersonal relationship skills

4. Technological awareness and understanding


5. Problem-solving skills
6. System thinking and understanding
7. Performance undertaking
8. Knowledge of interventions
9. Business understanding
10. Organization understanding
11. Negotiation / Contacting skills
12. Buy-in/advocacy skills
13. Coping skills
14. Ability to see the Big Picture
15. Consulting skills
16. Project management skills
Process Of Performance Analysis
Process Performance Analysis (PPA) provides a new way to assess processes. This methodology
is a revolutionary approach which moves beyond the traditional control and capability analysis.
PPA uses performance measures such as Pp, Ppk, and Ppm with analysis to assess performance of a
process, determine sources of variation, assess process potential, and determine improvement
opportunity. This analysis may be conducted where control may not have been achieved and
where a large number of process streams exist.

Performance Analysis for Process Improvement


In May of 1998, a paper was presented by Michael V. Petrovich at the American Society for
Quality Congress in Philadelphia, PA. The title of the paper was Performance Analysis for
Process Improvement. This paper introduced the concepts of PPA to the general public and was
the first presentation of this material outside seminars taught by Luftig & Warren International
Why Do a Performance Plan?.
Contributes to the success of the department/college/organization
Helps employees understand the importance of their job to the broader organizational
objectives.
Builds the partnership between the supervisor & the employee

Sets the stage for success

Identifies what the employee must do to be successful, including development


activities
Identifies what supervisor must do to help employee be successful

Simplifies performance evaluation

Performance Planning is
A. The first step in the overall process of Performance Management
B. Part of the partnership with the employee

C. The foundation for any performance management system


D. An absolutely essential process
E. A process that should be completed within 30 days* of hiring or most recent evaluation
F. All of the Above
Answer:F
Who Does Performance Planning ?
Reviewer and Supervisor take the lead in creating the Performance Plan and both
should agree on the final plan before it is shared with the employee
Employee who has been in the job any length of time should be consulted and have input
into the target
What Are the Steps to Create a Performance Plan?
Select appropriate competencies for the position
Identify key goals/responsibilities and define your expectations

Meet with the employee to get their input


Establish career development plan
Review the plan with the reviewer

Meet with employee to review the final plan and obtain their signature

Is the Performance Plan Complete?


Have

you

collaborated

with

the

employee

and

agreed

that

the

Goals/Metrics/Competencies are reasonable and clear?


Have you addressed anything that might get in the way of success or that is needed for
employee growth (career development plan)?
Have you met with the Reviewer to ensure your employees goals are aligned with the
overall unit goals?
At the End of the Planning Process the Employee Should Know
Responsibilities and Goals
Expected Completion Dates

What level of performance is expected

Criteria to be used to review and evaluate performance metrics/success indicators

What development activities are expected

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.

At the End of the Planning Process the Supervisor Should Have


An understanding of the employees day-to-day responsibilities
A plan/approach for how he/she will observe and document employees work results

An understanding of what the supervisor needs to do to help the employee be successful,


including support for employee career development
Confidence that both supervisor and employee have a SHARED understanding of the job
and performance expectations

UNIT-III
PERFORMANCE

REVIEW DISCUSSION AND PERFORMANCE


RATINGS
Review
Definition:
The final stage of the PMP, during which the supervisor and employee look back at
the Accountabilities and Behaviors, talk about how well the employees did on the
job, and conclude the evaluation year with the completion of the PMP form.
Performance Review Discussion Purpose is to improve the performance of the
employee Formal discussion between appraiser and appraisee on the latters dyadic
performance for a given period of time Purpose is to identify factors that have
positively and negatively affected their performance Systematic review of

performance of the appraiser and appraise Focus on appraise Focuses on


appraisers own performance to the extent it has impacted the appraise (leadership
styles, support given, guidance, etc)
PRD - Definition :
PRD - Definition The help provided by a manager to his
subordinates in analyzing their performance and job behavior in order to increase

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

between performance and reward) .


PRD When? At least one time a year As an integral part of performance and appraisal
systems Could be carried out more frequently by managers depending on: Needs of each
appraisee Time available to the appraiser Note: By investing time in PRD, a Manager is
likely to gain more time in the long run as a result of improved capabilities of
subordinates
PRD Who? Appraiser should be senior to the appraisee in competence, knowledge,
psychological expertise, hierarchical position
PRD Three main processes :
PRD Three main processes Communication Listening Responding Giving feedback
Influencing Enable the appraisee to exercise greater autonomy Provide +ve reinforcement
Identification Helping Concern and empathy the AR has for the AE Mutuality of
relationship Identification of developmental needs of the AE
PRD [Communication Asking questions] :
PRD [Communication Asking questions] Questions that do not help i) Critical
questions (which are used to criticize, reprimand, or doubt the AE) ii) Testing questions

iii) Resenting questions iv) Leading questions Questions that are helpful Testing

questions (asking for help) Clarifying questions Open questions


PRD [Communication Responding to questions] :
PRD [Communication Responding to questions]
PRD [Communication Feedback] :
PRD [Communication Feedback] Feedback is effective if it is Descriptive and not
evaluative Focused on the behavior of the person and not on the person himself Databased and specific and not based on impressions Suggestive and not prescriptive
Continuous Need-based and solicited Intended to help Focuses on modifiable behavior
Checked and verified Well-timed Contributes to mutuality and building of a relationship .

PRD [Communication Feedback]Defensive behaviour :


PRD [Communication Feedback]Defensive behaviour An employee who receives
feedback might adopt the following defensive behaviour Deny feedback; not own up
responsibility Rationalization (explain away feedback by giving reasons) instead of selfanalysis Projection (express negative feelings to the person giving feedback) instead of
empathy Quick acceptance without exploration (knowing more about the feedback) as
opposed to collecting more information to understand the behaviour Cynicism (strong
skepticism that things cannot improve) as opposed to positive critical attitude to accept

certain feedback and question others


PRD Sequential process :
PRD Sequential process Three phases Rapport building Exploration Action planning
PRD Sequential process (Detailed steps) :
PRD Sequential process (Detailed steps) Rapport building Attending Listening
Acceptance Exploration Exploring Problem Identification Diagnosis Action planning

Searching Decision-making Supporting


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)
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:

To provide an effective, fair system of performance management for all non-faculty


employees at UM;

To strengthen employees' performance weaknesses and develop career potential through


training and development;

to support University and unit goals.

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

The supervisor and the employee discuss and document the

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

The supervisor will provide informal feedback on employee performance

throughout the review period. Expectations should be discussed and may be revised or
restructured according to needs.
Self-Assessment

The employee will conduct a Self-Assessment of how well he or she has

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 supervisor and employee meet formally to discuss

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.

Receptive to change/new ideas

Shows poise and/or courtesy in tough situations

Demonstrates ability to modify behavioral style and approach to goal

2. Assertiveness/Motivation
Degree to which the employee pursues goals with commitment and takes pride in
accomplishment.

Takes initiative eagerly

Demonstrates orientation to achieve results

Behavior reflects a desire to excel on the job

Works steadily and actively

Demonstrates self-confidence and positive attitude towards self and others.

3. Attendance
The extent to which the employee can be depended upon to be available for work and
to fulfill position responsibilities.

Reports to work on time

Communicates schedule changes promptly to supervisor

Maintains regular attendance

4. Communication
The extent to which the employee effectively listens, conveys and receives ideas,
information and direction.

Seeks to clarify and confirm the accuracy of their understanding of unfamiliar or


vague terms and instructions

Makes oral and written communication clear and easy to understand

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.

Attempts to simplify and/or improve procedures and techniques

Initiates new and creative ideas or procedures to enhance the department or


organization

Looks for new solutions to old problems

6. CustomerFocus
The degree to which the employee takes the initiative to meet internal and external
customer needs in a timely and courteous manner.

Examines customer requests to properly identify and resolve customer concerns

Supports customer service efforts through program design, implementation,


recovery and follow-up

7. Customer Service
The degree to which the employee represents the university community in a positive,
professional manner.

Serves customers in a manner that increases their confidence and knowledge to


resolve their own problems

Acknowledges shortcomings when appropriate

Reaffirms commitment to professional service

Uses a "Socratic" style of assistance - asking probing questions that elicit the facts
and help the customer through some of the decision-making process

Uses customer contacts as opportunities for education to increase customer


independence

Responds to customer requests on contact date or within 24 hours

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.

Independently contributes ideas and projects

Adapts to change

Follows-through on work assignments

Demonstrates eagerness and positivism

Shares ideas and suggestions

Takes on new responsibilities

Willing to assist co-workers

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.

Able to answer difficult questions

Effectively learns new skills

Maintains up-to-date job related information

10. Judgment
Ability to analyze problems or procedures, evaluate alternatives, and select best
course of action.

Uses of logic and common sense in decision making

Makes appropriate and consistent decisions

Obtains and evaluates pertinent information to determine source of and alternative


solutions to problems

11. Initiative
The degree to which the employee independently performs and accomplishes
assignments.

Requires minimal supervision

Sees and acts upon opportunities

Independently contributes ideas and projects

Promptly undertakes problems and devises solutions

Acts independently within established guidelines

12. InterpersonalRelations
The degree to which the employee shows understanding and sensitivity to needs and
problems of others.

Actions are intended to calm, diffuse, and be helpful

Interacts positively with a variety of people in different situations

Accepts and acknowledges suggestions from others

Works cooperatively and effectively with others to achieve unit goals

13. Management Skills

Extent to which employee demonstrates effective management abilities and overall


results.

Effectively sets goals and establishes priorities

Improves work methods

Achieves expected results

Plans and administers budgeted funds

Implements cost-saving procedures, expense control, etc.

14. Planning & Organizing


The extent to which the employee plans, organizes and implements tasks or programs.

Demonstrates effective use of time and facilities subject to their control

Meets deadlines

Maintains a clear grasp of daily tasks

Prioritizes duties in a manner consistent with organizational objectives

Effectively manages tasks or program assignments including follow-through and


delegation

15. Problem Solving & Decision Making


Degree to which employee demonstrates ability to clearly isolate, define and seek
solutions to problem areas.

Effectively identifies & evaluates alternative solutions

Makes decisions consistent with skills and experience

Recognizes decisions that have to be deferred until all pertinent facts are gathered
and analyzed

Flexible in modifying decisions

16. Productivity
Degree to which the employee produces the expected quality and quantity of
assignments.

Attains conclusive measurable results

Maintains control and work pace

Completes assignments on time and to specifications

17. Quality of Work


The ability to set high standards for own personal performance; strive for quality
work; put forth extra effort to ensure quality work.

Develops and implements new solutions, procedures and concepts

Demonstrates accuracy, thoroughness, and reliability

Shows organization and completeness

Pays attention to detail

Consistently delivers what is required when required

Quantity of Work
The volume of work produced by the employee, along with his or her speed,
accuracy and consistency of output.

Accomplishes assigned work in an organized, timely manner

Produces necessary results in spite of unforeseen changes

Alerts appropriate team member if deadlines need to be re-negotiated to


accomplish work with higher priority

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.

Masters difficult situations in a timely and effective manner

Answers questions and deals with problems effectively and thoroughly

19. Responsibility
The degree to which the employee demonstrates dependability in work performance.

Completes work in a timely, capable and reliable manner

Adheres to instructions

Maintains regular attendance

20. Safety
Degree to which employee adheres to safety and health regulations.

Maintains and observes safety and health standards

Notifies others when violating safety and health regulations

21. Stress Tolerance


Degree to which employee's performance demonstrates stability under time and/or
interpersonal pressure and opposition.

Demonstrates composure and good judgment in stressful situations

Maintains appropriate response and outcomes during encounters and/or periods of


high levels of pressure

22. Time Management


The ability to adhere to one's responsibilities in a timely manner.

Meets deadlines

Manages multiple tasks with accuracy and efficiency

23. WorkHabits
The manner in which an employee conducts his or herself in the working
environment.

Displays professionalism

Demonstrates effective time management skills

Shows positive attitude

Maintains regular attendance

Meets productivity standards

TEAM BASED FACTORS


1. ConsensusBuilding
The extent to which the employee builds and maintains work relationships and contacts
needed to effectively address problems and opportunities associated with their position.

Actively resolves workplace conflicts

Willingly undertakes assigned projects

Supports organizational goals and endeavors

2. Teamwork
The degree to which the employee works well in a team setting.

Interacts and exchanges idea

Observes the abilities and ideas of fellow team members

Works fairly and attempts to share an equal work-load with others

3. Working with Others/Cooperation


Extent to which employee works cooperatively with customers, co-workers and the
public.

Gains confidence and trust of others

Recognizes strengths and limitations of self and others

Exhibits appropriate sensitivity to others' feelings

Focuses on performance rather than personality in relating to others

SUPERVISORY FACTORS
1. Cost Effectiveness
Extent to which employee seeks best use of materials, equipment, and staff to maximize
efficiency and effectiveness.

Uses effective materials to enhance department and/or job performance

Establishes budget and/or functions within the budget

2. Delegation & Supervisory Skills


The extent to which the employee shows the ability to effectively authorize work and
supervise subordinates.

Clearly defines responsibilities and authority limits of subordinates

Makes effective assignments to subordinates based upon demonstrated skills and


knowledge

Motivates employees to think and work independently

Recognizes individual capabilities and assigns work accordingly

Counsels employees in both positive and negative circumstances

Appraises performance and individual contributions

3. DevelopmentofSubordinates
Consider the employee's ability to effectively evaluate skills, knowledge, aptitudes,
interests and developmental needs bearing on individual and group work performance.

Develops and implements or assures appropriate training or development plans


and programs

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.

Gives direction without conflict

Creates environment that guides employees to accomplish unit and individual


goals

5. PerformanceAppraisals
Degree to which employee prepares thorough and objective annual appraisals.

Provides informal performance feedback on a regular basis

Acknowledges good performance and discusses performance problems

Prepares precise written annual evaluations

6. StaffDevelopment
Degree to which employee provides opportunities to challenge subordinate's capabilities
and develops the knowledge and skills necessary for career development.

Identifies training programs to improve subordinate's performance

Defines and communicates standards of performance and assists employees in


achieving these standards

Encourages and supports staff participation in job related activities

7. Supervising Staff Relations


Consider the extent to which the employee effectively oversees and facilitates staff.

Shows fairness and impartiality in interactions

Demonstrates interest in employee welfare

Elicits staff input where feasible

Responds to staff suggestions and complaints in a serious, sensitive, and timely


manner

Facilitates staff adaptability

Is knowledgeable about and in compliance with the University's Equal


Opportunity and Affirmative Action policies and plans

Anticipates staff problems and takes preventive measures

Resolves disputes among employees

Handles corrective discipline and employee grievances

Rating Errors and Biases


The supervisor needs to be aware of various ways that errors occur in rating performance. Some
systematic biases that exist include:
General

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

Errors - when raters have a tendency to be influenced by how they rated


surrounding items. For example, if item #2 was given a high rating, then the rater may tend to
carry over the favorable response to item #3, even if it is inappropriate.
Rating

Inflation - when a supervisors ratings tend to increase over time without


justification. The supervisor should make sure the ratings are based on results, not the feeling
that ratings should increase. Although its not a bias in the same way as the errors listed above, a
big concern for many supervisors has to do with their ongoing relationship with the employee. It
is not easy to tell an employee about their ratings. Some supervisors will give better ratings than
the employee actually
deserves, for fear of hurting peoples feelings or causing problems in the working relationship.
Be aware of your own feelings about the ratings, and be honest. People usually know their
strengths and weaknesses on the job, and supervisors who have provided coaching and feedback
throughout the year must provide ratings that are consistent with the previous feedback.
Improvement is possible when people are told how they must improve.

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

outcomes and objectives;


the
performance model;
establishing

performance measures;
setting

performance targets;
monitoring

performance;
performance

assessment and evaluation;


statutory

performance reporting requirements; and


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

measurement, evaluation and reporting of performance starts at the asset level.


Asset

performance is summarized to a whole-of-service level.


All

planning performance is assessed and reported.


Asset

program performance for investment, management and renewal or disposal is assessed


and reported.
Asset

performance for investment and management-in-use is assessed, taking into


consideration:
- Physical performance;
- Functional performance; and
- Financial performance.
Performance

of the asset management system is also assessed, and improvement strategies


included in the strategic planning process.
An

organizations performance focus is on the improvement strategies developed and


implemented by its individual services.

Factors affecting implementation


There are many factors listed by different authors related to affecting factors on
Implementation. We categorize and listed them as follows:
1- Implementing was run slower than foreseen time
2- Occurring unexpected problems
3- Activities' coordination was not rightly performed
4- Some competitive jobs and crisis, diverted managers attention from implementation of
strategies
5- Implementing staff were not capable enough
6- Subordinates were not trained effectively
7- Uncontrollable external environment factors
8- Managers could not be able to do leading and directing properly
9- Activities and key tasks of implementation process were poorly defined
10- There was no information system for sufficient control of activities
Pitfalls in Implementation
1.Cultural Issues
2.Users Attitude
3.Economic Factors
4.Training
5.Inadequate available facilities
6.Desired outcomes
7.Establishing Peformance management
8.Setting Performance target

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

Performance Appraisal is a method which involves

Setting Work Standards

Assessing Actual Performance

Providing Feedback to the Employees

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

Objectives of Performance Appraisal

Feedback to Employee

Compensation Decisions

Reckoned for Promotion / Demotion /Transfer

Inputs for Personal Development

Reduce Subjectivity

Clarity for the Employee

Improves Supervision

As discussed earlier, performance appraisal is undertaken for a variety of reasons.


Review of organizational practices shows that organizations undertake performance appraisal
exercises to meet certain objectives which are in the form of salary increase, promotion,
identifying training and development needs, providing feedback to employees and putting
pressure on employees for better performance.
1. Salary increase. Performance appraisal plays a role in making decision about salary increase.
Normally salary increase of an employee depends on how he is performing his job. There is
continuous evaluation of his performance either formally or informally. In a small organization,
since there is a direct contact between the employee and the one who makes decisions about
salary increase, performance appraisal can be an informal process. However, in a large
organization where such contact hardly exists, formal performance appraisal has to be
undertaken. This may disclose how well and employee is performing and how much he should
be compensated by way of salary increase.
2. Promotion. Performance appraisal plays significant role where promotion is based on merit.
Most of the organizations often use a combination of merit and seniority for promotion,

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.

Performance Appraisal Methods


Managers can choose from seven performance appraisal methods. The advantages and
disadvantages of each of these methods.
Written Essays:
The Written essay is a performance appraisal technique in which an evaluator writes out a
description of an employees strengths and weaknesses, past performance, and potential. The
evaluator would also make suggestions for improvement.
Critical Incidents:
The use of critical incidents focuses the evaluators attention on those critical or key behaviors
that separate effective from ineffective job performance. The appraiser writes down anecdotes
that describe what the employee did that was especially effective or ineffective. The key here is
that only specific behaviours, not vaguely defined personality traits, are cited.
Graphic Rating Scales
One of the oldest and most performance appraisal methods is graphic rating scales. This method
lists a set of performance factors such as quantity and quality of work, job knowledge,
cooperation, loyalty, attendance, honesty, and initiative. The evaluator then goes down the list
and rates and employee on each factor using an incremental scale. The scales typically specify
five points; for instance, a factor such as job knowledge might be rated from 1 (poorly
informed about work duties) to 5 (has complete mastery of all phases of the job).
Behaviorally Anchored Rating Scales.
One increasingly popular performance appraisal approach is behaviorally anchored rating scales
(BARS). These scales combine major elements from the critical incident and graphic rating scale

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

to place employees into a

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.

Other important Performance Appraisal Methods


Broadly of two types:
1. Traditional Methods (TM)
2. Modern Methods (MM)
1. Traditional Methods (TM)

(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

Appraiser describes his impression

Unstructured manner

Highly subjective in nature

Useful at lower levels


TM:(b). Straight Ranking Method

Ranking of all the employees

Same unit, same work profile employees

Ranking from best to poorest

Highly subjective
TM :(c). Paired Comparison Method

Employees of a group are compared with one another, one at a time

Number of comparisons = (N(N-1))/N

Each employee is compared with the other


TM:(d). Grading Method

Certain categories / grades are determined in advance

Grades are based on a variety of parameters

Actual performance is compared with parameters to allot a grade


TM(e). Critical Incident Method

Performance rated on the basis of certain events that occurred during the performance of
the job

Incidents represent the outstanding / poor behaviour of the employee

Under this technique the behaviour of the employee in all significant incidents is
recorded in a book and reviewed at the end

2.MM:(a)Behaviorally Anchored Rating Scales (BARS)

Rating scales are created using the following approach

Identify Critical Incidents

Select Performance Dimensions

Retranslate Incidents

Assign Scale Values

Rate the employee on the scale

MM: (b).Management By Objectives (MBO)

What How approach?

Substitutes good intentions with a process where everything is put in black & white

Process

Define Role

Define KRAs

Indicators of Effectiveness

Set SMART objectives

Monitor

MM: (c).360 Degree Appraisal

3 levels of employees rate the performance

Superior

Peers

Subordinates

Holistic view

Rules out the bias of any one person

Who will Appraise?

Immediate Supervisor

Employees Peers

Self Appraisal

Employees Subordinates

Higher Level Manager

Personal Department Specialist

When to Appraise?

Periodic Appraisals

Quarterly, Bi-annually, Yearly

What to Appraise?

What do we want to evaluate?

Extracted from the Job Analysis

Mostly Organizational Goals which the employee was responsible for

Can also have some Softer Aspects

Process of Performance Appraisal

Job Analysis

Understanding the deliverables

Detailing the Job Description

Establishing Standards of Performance

Setting Performance Standards

Benchmarks to Measure Performance

Attainable by a Normal Employee

Clear & Understandable

Communicating Performance Standards

Appraiser vs. Appraisee

Both should be communicated the standards

Communication should be written

Measuring Actual Performance

Objective Measures: Quantitative & Verifiable

Subjective Measures: Personal Standards & Opinions

Comparing Actual Performance vs. Standards

Note deviations

Could be both positive & negative

Reasons for the deviation

Analysis of Strengths & Weaknesses

Initiating Corrective Action

Positive: Discussion & Improvement Plan

Negative: Scolding & Warning

Essentials of a Good Appraisal

Reliability

Job Related

Standardization

Training to Appraisers

Open Communication

Employee Access to Results

Clear Objectives

Pros & Cons of Performance Appraisals


Merits and Demerits of Performance Appraisals
The traditional manager-employee performance appraisal can divert valuable supervisory assets
(time, attention and brain power) from the daily company mission. As this is taking place, the
employees are busy reviewing the past year in their minds, cataloging the projects they did well

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;

* Motivate employees by providing them with feedback on their performance;

* Provide information for improving employee work performance;

* Provide information for personnel decisions on pay, promotion, job assignments, training,
layoffs, etc.;

* Identify employees with the potential for advancement;

* Give employees the opportunity to express their job expectations, ambitions, satisfactions and
dissatisfactions;

* Provide documentation for possible legal challenges by disgruntled employees;

* Help the enterprise in its human resource planning; and

* 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).

DIMENSIONS OF REWARD SYSTEM

All organizations systems have a content or structural Dimension as well as a process


Dimensions and Core job Dimensions
Structural Dimension
The structural Dimensions of reward system refers to the formal mechanisms, procedures and
practices, for Example, the salary structure, the performance appraisal forms,etc.
Process Dimension
Process Dimension refers to the communication and decision making parts of the system.
Core Job Dimensions

Skill Variety
Task Identity
Task Significance
Autonomy
Moderate risks
Feed back

Constraints in Linking rewards with Performance


Most organizations are heavily dependent upon their human resources, not only for their
financial prosperity, but indeed, for their very existence. For a good many organizations, the
cost associated with their human resources comprises the largest item of annual expenditure.
This is reward systems assume importance. Reward management has attracted increased
attention in recent years.

The purpose of reward management as an element of the delivery system is to


attract,retain,and motivate the employee in order to achieve the organizational
objectives.Therefore,in order to compete successfully in this highly competitive
world,organizations

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

of performance is managed and the way the reward is

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

Performance Linked Reward

Job Satisfaction
--Continuous improvement and learning

Implications for managers and for Organizational Reward systems


In todays knowledge-based competitive environment, organizations must mobilize and motivate
their employees latent entrepreneurial talent, encourage them to bring forward innovative ideas,

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.

Meaning of non-monetary rewards?


Non monetary rewards mean those rewards of good performance which are not monetary in
nature. For example, a pat on the shoulder or encouragement by seniors at wok place.

Providing motivation monetary and non monetary?


Monetary motivation means that the winner of a contest could receive a certain amount of
money say 100 dollars, euros, pounds, or 1000 yen. Non monetary motivation could be
anything else. The winner...
What are difference between monetary rewards and nonmonetary rewards?
Distinguish between monetary reward and non monetary reward? How do monetary
rewards affect sportsman's performances? What are the nonmonetary rewards for a fashion
designer? Monetary and nonmonetary costs of communication? What are the nonmonetary
rewards of a nurse? Monetary rewards and non-monetary rewards? Give the definition of
monetary rewards? Monetary and nonmonetary incentive? What does a nonmonetary
reward mean? What are the nonmonetary rewards? What is the nonmonetary
system? What are the nonmonetary costs? What are the monetary rewards? What is the
monetary reward? What are monetary rewards? What is monetary reward?
Monetary - relating to or involving money; "monetary rewards"; "he received thanks but no
pecuniary compensation for his services"

Appendix
Performance Review Form
Personal Data
Employee ID

Employee Name

Job Title

Division/Section

Reviewer

Review Period

Performance Goals and / or Job Results

and Ratings

Responsibilities (Elements)
Accomplishments

A performance goal is a Evaluate results


statement

of

results

to

be mutually

against Select one rating for

established each

performance

achieved in a given review performance goals and job goal


period.

Goals are project or responsibilities.

target-based. A job responsibility

or

job

responsibility
(element).

(element) is a requirement that


must be met on an ongoing basis.
Job responsibilities define routine
tasks or essential functions.
1. As an employee of Fermi lab,
you will demonstrate support

___ Outstanding
___ Excellent

for the ES&H Program by


staying

current

with

all

___ Commendable

required

ES&H

training;

planning and executing all


assigned work activities so as

___ Fully competent


___ Meets minimal
expectations

to minimize the risk of injury


or illness to yourself or others;
making

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

ES&H program by:


a) Conducting
walkthroughs

regular
of

area

of

___ Commendable
___ Fully competent

responsibility to interact with


subordinates and encourage
safe working behavior;

expectations
___

b) Attending

required

ES&H

training

courses,

with

subordinates

___ Meets minimal

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

detail and to make constructive suggestions.

Judgment

The extent to which the employee makes decisions that are sound.
Ability to base decisions on fact rather than emotion.

Cooperation/Teamw Willingness to work harmoniously with others in getting a job done.


ork
Quality of Work

Readiness to respond positively to instructions and procedures.


Freedom from errors and mistakes. Accuracy, quality of work in general.

Reliability

The extent to which the employee can be depended upon to complete


work, projects or assignments on time.

Commitment
Safety

The degree to which the

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).

Support of Diversity Demonstrated commitment to a respectful and inclusive work


environment.
Job-specific Competencies (Optional)
__ Does not meet __ Meets minimal

__ 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

__

__ Does not meet __ Meets minimal

__ Fully

__ Commendable
__ Excellent

__

Outstanding
expectations

expectations

competent

Managerial/Supervisory Competencies (For employees who supervise others)


Values and Ethics: Demonstrates respect for people and Laboratory principles and policies.
Integrity

and Maintains a respectful, diverse and inclusive work environment. Holds

Respect
Strategic

self andadvice
others and
accountable
for actions.
Offers
creates plans
based on analysis of issues and trends

Thinking: Analysi

and links these to the responsibilities, capabilities and potential of his/her

s and Ideas

organization.
Scans an ever-changing, complex environment in
Engages employees, teams and collaborators in developing goals,

Engagement: Peo
ple,

Teams,

Collaborators

executing plans and delivering results. Motivates employees and teams


to accomplish goals by communicating clearly and consistently. Uses
negotiation
skills
and
adaptability
to encourage
recognition
of
Aligns people,
work
andmodels
systems
with the Laboratorys
strategy.
Ensures

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:

Reallocates resources as organizational change occurs.

Gathers and

organizes credible data to make a case for budget changes. Regularly

Summary of Performance
andbudget
Review
of to
Competencies
analyzes
data
ensure cost effectiveness and efficiency.

Summary of Laboratory Committee and Service Work

Performance Performance Good,

solid Good,

is well below leaves room performance

solid Excellent

performance

Outstanding

performance

. Fulfills all . Fulfills all that

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

results above Contributes in significant


those

implementati areas;

results

and goals and results above y


may,

additional

that

expected

an

excellent contributions

of manner

the position.

to to goals of the

technical and Department,


functional

Division

innovations.

Laboratory.

or

Second-level Managerial Approval of Performance Review Document


I have reviewed and approved the performance review document and overall rating.
Signature

________________________________________________

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

Employee Comments (Optional)

Mentor Comments (Optional)

MBA09HR02 PERFORMANCE MANAGEMENT (IV


TRIMESTER)
STUDY MATERIAL PREPARED BY

Mr.S.NAGARAJAN
M.Sc IT&Mgt.,M.Com.,M.B.A.,M.Phil.,
ASSISTANT PROFESSOR
GNANAMANI INSTITUTE OF MANAGEMENT STUDIES

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