Program Semester Subject Code Subject Name Unit number

: MBA : IV : MU0016 : Performance Management and Appraisal :4

Unit Title
Lecture Number Lecture Title

: Process of Performance Management

:4 : Process of Performance Management

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Unit-4 Process of Performance Management Framework

Process of Performance Management

Objectives :
To explain performance planning. To describe how expectations are designed. To explain performance measurement. To discuss performance review.

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Unit-4 Process of Performance Management Framework

Lecture Outline
Introduction Performance Planning Expectations Objectives Performance Measurement Performance Review Guidelines used to provide Feedback Continuous Process of Performance Management Performance Rating Coaching Documentation Summary Check Your Learning Activity
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Unit-4 Process of Performance Management Framework

Introduction
Performance management system consists of many interconnected processes which takes place throughout the year.

Performance management process is also related to how employees monitor and improve their performance, measuring performance and documenting the results of performance management plans and reviews.

In this session we will discuss : Performance planning Performance measurement Performance review

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Unit-4 Process of Performance Management Framework

Performance Planning
Performance planning: Focuses on setting the direction, accepting performance agreements

and agreeing personal improvement plans.

Is the first step of an effective performance management process.

Is concerned with improving employee performance by helping them

to learn and providing them with the support they need to do well, now and in the future.

Involves a meeting of about an hour or so between an appraiser and

the employee being assessed.

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Unit-4 Process of Performance Management Framework

Expectations
Expectations are defined and agreed in the form of role profiles. Expectations are described as short or medium term targets, the extension of knowledge and skills, keeping the core values of the organisation and meeting behavioural requirements. Expectations should be defined based on a role profile which sets out the overall purpose of the role and the important result areas it contains. Role profiles define the overall purpose of the role, its reporting relationships and key result areas.

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Unit-4 Process of Performance Management Framework

Objectives
Managing expectations is based upon an agreement between the manager and the employee on the objectives of the job under discussion and how its attainment would be measured. Objectives can be work-related, referring to the achievement of role requirements. The various types of objectives are: On-going role objectives Targets Tasks/projects Values Behaviour Developmental Performance improvement
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Unit-4 Process of Performance Management Framework

Performance Measurement
The criteria that will be used to assess the extent to which objectives have been achieved is identified and agreed upon during the planning stage. The performance metrics can be categorised as: Finance Output

Impact
Reaction Time

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Unit-4 Process of Performance Management Framework

Performance Review
Reviews give managers and the individual members of their teams a chance to break and reflect on the key issues of personal development

and performance improvement.

The objectives of performance reviews are: Motivation Development Communication

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Unit-4 Process of Performance Management Framework

Guidelines used to provide Feedback

Feedback should be given on real results or observed behaviour. It should be supported by evidence. It should not be based on assumptions about the reason for the behaviour. Feedback should be given immediately. It should be given as soon as possible after the performance review so that it makes a strong impact. Feedback should not be a judgement. It should be presented as a description of what has happened. Feedback should focus on aspects of performance the employee can improve. Feedback should make employees feel empowered.
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Continuous Process of Performance Management

A basic part of the continuing process of management is performance management . This is based on a belief which emphasises that: Performance has to be continuously improved .

Skills and capabilities Have to be constantly development .

An organisation should constantly develop and apply the learning gained from experience and analyse the factors that have produced high levels of performance.

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Unit-4 Process of Performance Management Framework

Performance Rating

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Coaching
Coaching needs may arise from formal or informal performance reviews, but opportunities for coaching will emerge during the normal day-to-day activities.

As part of the normal process of management coaching: Make employees aware of their performance.

Make sure that employees understand what they need to know to be able to complete their task adequately.
Use appropriate situations to promote learning

Encourage people to take up higher-level issues and helping them identify how they would tackle them.

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Documentation
It is very important to maintain records of the role profiles, the agreed objectives and the improvements made.

The essential information to be recorded on a form are :

The key result areas from the role profile. The objectives agreed for each key result area. The values or competency headings. The assessment of performance against each key result area

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Unit-4 Process of Performance Management Framework

Summary
Performance management is a continuous process that happens through out the year. The first step of an effective performance management process is performance planning. Performance management expectations. is basically about managing

It is very important to know what the present performance is, in order to improve performance. Hence, performance measurement is very important. The objectives of performance reviews are motivation, development and communication.

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Unit-4 Process of Performance Management Framework

Check Your Learning

1. What is performance planning? Ans. Performance planning focuses on setting the direction, accepting performance agreements and agreeing personal improvement plans. 2. Mention the categories of performance metrics. Ans. The performance metrics are classified into finance, output, impact, reaction, and time.

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Unit-4 Process of Performance Management Framework

Activity

ABC is a software development company. Assume that you are

the manager of the HR department in ABC. How would you go about

planning performance?

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