Process of managing performance and benefits of PMS

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DEFINITIONS OF PERFORMANCE MANAGEMENT

Performance Management is :
a strategic and integrated approach to delivering sustained success to organisations by improving performance of people who work in them, and by developing the capabilities of teams and individual contributors. - Armstrong and Baron (1988)

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WHAT IS PERFORMANCE ?
The Oxford English Dictionary defines performance as the accomplishment, carrying out, working out of anything ordered or undertaken. In managing the performance both inputs(behavior) and output(results)should be considered Performance is about how things are done as well as what is done.

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DIFFERENTATION BETWEEN PERFORMANCE MANAGEMENT AND MANAGING PERFORMANCE

PERFORMANCE

MANAGING

Capacity; Commitment; Resources; Work Ethics; Motivation; Culture; Competence; Leadership; Attitude; Responsibilities.

PERFORMANCE

MANAGEMENT

Policies; Systems; Processes; Practices; Results; Appraisal; Measurement; Bonuses; Grievances.

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FACTORS INFLUENCING INDIVIDUAL PERFORMANCE

Relating to the individual
Commitment to the organisation Selection Personality Attitude Skills Ability Knowledge Being there (not being absent) Motivation Energy level

Relating to the organisation

Leadership Structure of working units Systems and procedures Enabling support Empowerment Opportunity to perform Job design Rewards (Pay, benefits, etc)

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WHY PERFORMANCE MANAGEMENT SYSTEMS FAIL!

Individual goals are not linked to strategy. There are no consequences for non-performance by employees. Employees do not understand what is expected of them. Necessary job competencies have not been developed. Managers do not use individual goals to drive performance. There are too many goals per employee.
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Complex forms and procedures are used.

WHY PERFORMANCE MANAGEMENT SYSTEMS FAIL! (Contd.)

There is no link between effective performance and reward/ recognition. There are unidentified obstacles to performance. No feedback is given on performance. Employees are not held accountable for results. Performance management is seen as separate from the day-to-day management of people. Employees are treated poorly and therefore do not care about what they do.
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EFFECTIVE PERFORMANCE MANAGEMENT :

Each employee should have goals and measures that are linked directly to the organisations strategy. Individual measures are developed by cascading the organisational objectives down ALIGNMENT. Identify the critical success factors and key performance areas for the organisation. Each employee has key results areas (KRAs), and key performance indicators.

Identify any gaps in an individual employees competence.

Address gaps through personal development planning.
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PERFORMANCE MANAGEMENT CYCLE

PLAN TO FACILITATE PERFORMANCE

MONITOR PERFORMANCE

CLARIFY EXPECTATIONS (Setting goals and measures) PROVIDE FEEDBACK

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RECOGNISE GOOD PERFORMANCE

COACH, COUNSEL AND SUPPORT

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PERFORMANCE MANAGEMENT CYCLE

Ensure that the employee understands what is expected of him/her.

Set performance objectives and measures.

Ensure a two-way dialogue during this phase.

CLARIFY EXPECTATIONS (Setting goals and measures)

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PERFORMANCE MANAGEMENT CYCLE

Identify any interventions necessary to improve the subordinates performance.

This can include resources, delegation of authority, additional human resources, training and development, etc.

PLAN TO FACILITATE PERFORMANCE

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PERFORMANCE MANAGEMENT CYCLE

Management by wandering around Ongoing performance meetings Telephone calls Written reports.

MONITOR PERFORMANCE

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PERFORMANCE MANAGEMENT CYCLE

Provide consequences for performance (praise/recognition or reprimanding) Redirect efforts of the subordinate if necessary FEEDBACK IS THE BREAKFAST OF CHAMPIONS

PROVIDE FEEDBACK

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PERFORMANCE MANAGEMENT CYCLE

Coach the subordinate where a serious performance deficit is revealed. Counsel the subordinate and offer solutions to overcome personal/interpersonal problems. Support subordinates and ensure that they know that you have confidence in them.

COACH, COUNSEL AND SUPPORT

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PERFORMANCE MANAGEMENT CYCLE

Good performance should be followed by positive consequences. There should be a clear link between good performance and reward in the organisation. BEHAVIOUR IS A FUNCTION OF ITS CONSEQUENCES - Prof BF Skinner

RECOGNISE GOOD PERFORMANCE

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DIAGRAMMATIC OVERVIEW OF POOR PERFORMANCE

POOR PERFORMANCE
COLLECTIVE POOR PERFORMANCE
RELATIONSHIP PROBLEMS

INDIVIDUAL POOR PERFORMANCE

MISCONDUCT

MOTIVATIONA L PROBLEMS

INCAPACITY: POOR PERFORMANC E INCAPACITY: ILL-HEALTH

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STRUCTURAL AND OTHER PROBLEMS

CATEGORISING INDIVIDUAL POOR PERFORMANCE

How does a supervisor go about categorising the reasons for individual poor performance into one of the three categories set out? Direct observation (e.g. fighting or an employee is injured on duty)

The Supervisor receives information from other employees

The Supervisor attempts to correct the employees behaviour through informal advice and correction but the employee fails to take any notice (interaction) The Supervisor talks to the employee to find out the reason for the poor performance (investigative counselling)

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DEALING WITH INDIVIDUAL POOR PERFORMANCE

SUPERVISORS SHOULD NOT IGNORE POOR PERFORMANCE e.g.:

EXCESSIVE ABSENTEEISM, A PERSON TAKING ALL OF THEIR SICK LEAVE CONSISTENTLY WHEN YOU DONT THINK THEY ARE SICK CONTINUAL MINOR INSUBORDINATION.

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DEALING WITH INDIVIDUAL POOR PERFORMANCE

IF GOOD PERFORMANCE/ BEHAVIOURAL STANDARDS ARE NOT MAINTAINED ON A CONSISTENT BASIS, THE POOR PERFORMANCE BECOMES THE NEW STANDARD. YOU WILL LOSE RESPECT AND THE DEPARTMENT WILL SUFFER.

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THE SUPERVISORS DILEMMA

CONFLICT BETWEEN INTERESTS
To maintain common interest, supervisors should : Be honest; Be transparent; and EMPLOYEE INTERESTS EMPLOYER INTERESTS View the maintenance of performance standards as joint objectives.

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COMMON INTERESTS

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WHAT IS INCAPACITY: POOR PERFORMANCE?

Incapacity: poor performance is the inability or failure of an employee to adhere to reasonable performance standards set by the employer where the failure to perform is not caused by ill health.

MISCONDUCT deals with the failure by an employee to adhere to behavioral standards set by the employer while,
INCAPACITY: POOR PERFORMANCE deals with the inability to adhere to performance standards.

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BASIC PROCEDURE FOR DEALING WITH POOR WORK PERFORMANCE (INCAPACITY) If the Employee
Responds the performance standard is restored
NECESSARY KNOWLEDGE OR SKILLS POOR PERFORMANCE KNOWLEDGE OF STANDARDS

COUNSELLING / EVALUATION

COUNSELLING SKILLS

TRAINING / GUIDANCE

KNOWLEDGE OF TRAINING / GUIDANCE OPTIONS COUNSELLING SKILLS

FURTHER COUNSELLING

ACCOMODATION / SHORT OF DISMISSAL

KNOWLEDGE OF ALTERNATIVES

ENQUIRY

PROCEDURES AND SKILLS

TERMINATION

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EXTERNAL DISPUTE MECHANISMS

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MANAGING PERFORMANCE THAT IS NOT FULLY EFFECTIVE

In managing performance that is not fully effective or lower, the following remedial or developmental support may also be implemented, subsequent to the determination of the cause thereof: Training and Development In the case where an employee lacks the necessary inherent competencies in order to carry out his/her job. Employee Assistance Programme Where an employee encounters social and related problems that may cause poor work performance.

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MANAGING PERFORMANCE THAT IS NOT FULLY EFFECTIVE (CONTD.)

Incapacity Code If the performance is not fully effective or lower and the desired improvement cannot be effected due to employees unfitness or incapacity to carry out his/her duties the supervisor must comply with the procedural requirements of PSCBC Resolution 10 of 1999 and Resolution 1 of 2003 Incapacity Code. Disciplinary action After suggested performance improvement mechanisms and several warnings, consistent poor performance on the part of employees may require taking of disciplinary actions in terms of the Labour Relations Act and the Disciplinary Code and Procedures.

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CONCLUSION

Performance Management, if properly implemented, can lead to substantial improvement in the performance of : oIndividual employees; oTeams; and oThe organisation

Effective performance management entails interpersonal relationships and is dependent upon robust one-on-one discussions between managers and subordi8nates on goals, performance objectives and performance outcomes.

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Benefits of PMS

Increased Performance of individuals and department/organization Better Communication Performance Standards and indicators Succession and Career planning Training and development Remuneration

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CONCLUSION

Performance Management, if properly implemented, can lead to substantial improvement in the performance of : oIndividual employees; oTeams; and oThe organisation

Effective performance management entails interpersonal relationships and is dependent upon robust one-on-one discussions between managers and subordi8nates on goals, performance objectives and performance outcomes.

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