Performance Management is an integrated process of defining, assessing and reinforcing employee work behaviors and outcomes. It involves goal setting, performance appraisal and reward systems that align member work behavior with business strategy, employee involvement and workplace technology.
Performance Management is an integrated process of defining, assessing and reinforcing employee work behaviors and outcomes. It involves goal setting, performance appraisal and reward systems that align member work behavior with business strategy, employee involvement and workplace technology.
Performance Management is an integrated process of defining, assessing and reinforcing employee work behaviors and outcomes. It involves goal setting, performance appraisal and reward systems that align member work behavior with business strategy, employee involvement and workplace technology.
Megha Nagpal Chapter Seventeen: Performance Management Performance Management It is an integrated process of defining, assessing and reinforcing employee work behaviors and outcomes. It involves goal setting, performance appraisal and reward systems that align member work behavior with business strategy, employee involvement and workplace technology. A Performance Management Model Business Strategy E m p l o y e e
I n v o l v e m e n t
Goal Setting Reward Systems Performance Appraisal Individual and Group Performance Goal Setting Goal setting involves managers and subordinates in jointly establishing and clarifying employee goals. Goal setting influence what people think and do by focusing their behavior in the direction of the goals. Goals energize behavior, motivating people to put forth the effort to reach difficult goals. Stages in goal setting Diagnosis Preparing for goal setting Setting of goals Review Characteristics of Effective Goals Goals are Challenging Challenging but realistic Goals are set participatively Goals are Clear Goals are specific and operationally defined Resources for goal achievement are negotiated
Management by Objective(MBO) MBO attempts to align personal goals with business strategy through increased communications and shared perceptions between managers and subordinates MBO programs may go beyond manager and subordinate roles to address individuals, work groups, and to reconcile conflicts. Implementing MBO - Process 1) Work group involvement 2) Joint manager- subordinate goal setting 3) Establishing action plans to accomplish goals 4) Establishing criteria of success 5) Review and Recycle 6) Maintenance of records Performance Appraisal Performance appraisal is a systematic process of jointly assessing work-related achievements, strengths and weaknesses. It links employee performance with rewards. Performance Appraisal Elements Elements Traditional Approach High Involvement Approach Purpose Organizational, legal Fragmented Developmental Integrative Appraiser Supervisor or manager Appraisee, co- workers, and others Role of Appraisee Passive recipient Active participant
Measurement Subjective Concerned with validity Objective and subjective Timing Period, fixed, administratively driven Dynamic, timely, employee- or work- driven
Performance Appraisal Application Stages 1) Select the right people 2) Diagnose the current situation 3)Establish the systems purposes and objectives 4) Design the performance appraisal system 5) Experiment with implementation 6) Evaluate and monitor the system Characteristics of Effective Appraisal Systems Timely Accurate Accepted by the users Understood Focused on critical control points Economically feasible Reward Systems Organizational rewards are powerful incentives to improve individual and group performance. It produces high level of employee satisfaction and motivation for performance. Reward System Design Features Design Feature Definition Person/Job Based vs. Performance Based The extent to which rewards are based on the person, the job or the outcomes of the work Market Position (External Equity) The relationship between what an organization pays and what other organizations pay Internal Equity The extent to which people doing similar work within and organization are rewarded the same Hierarchy The extent to which people in higher positions get more and varied rewards Centralization The extent to which reward system design, decisions and administration are standardized Rewards Mix The extent to which different types of rewards are available and offered to people Security The extent to which work is guaranteed Seniority The extent to which rewards are based on length of service Characteristics of Effective Reward Systems Availability Timeliness Performance Contingency Durability Equity Visibility Types of Rewards Pay Skill-based pay plans Performance-based pay systems link pay to performance Gain sharing involves paying bonuses based on improvements in the operating results Promotions Benefits Individual Plan Productivity 4 1 1 4 Cost effectiveness 3 1 1 4 Superiors rating 3 1 1 3
Organization- Productivity 3 1 3 4 wide Cost effectiveness 3 1 3 4 Profit 2 1 3 3 Stock/Bonus Pay for Performance Ratings Gain Sharing Pay Plan Considerations Process of design - participative or top-down? Organizational unit covered - plant or companywide? Determining the bonus - what formula? Sharing gains - how and when to distribute? Managing change - how to implement system? WIPRO
Wipro is a well establish company. In 1979, Wipro began developing its own computers and in 1981, started selling the finished product. This was the first in a string of products that would make Wipro one of India's first computer makers. Now Wipro moved in software development and started developing customized software packages for their hardware customers. HR practices of Wipro is internal recruitment, intensive training, job rotation, Wipro Employee Stock Option Plan (WESOP) allows employees to share in the companies success, performance appraisal etc. There are so many methods of appraisal implemented at Wipro:-
E-performance management PCMM( People Capability Maturity Model) Identification of star performers Training programs Quaterly and half yearly performance appraisal Wipro employee stock option plan (WESOP) allows to share in the company success Wipros solution aims at strategic value delivery in the least possible time incorporating rich functional features, aided by smooth workflow, notification, authorization, etc. Align employee objectives to the business goals. Enable strategic Performance Management through Management by Objectives (MBO) Measure and Assess employee performance periodically and provide feedback and support to achieve quantitative, qualitative and process targets Evaluate and track Hi-Performance and achievers based on Competency driven practices. Enable online Reward and Recognition.
GRASIM (ADITYA BIRLA GROUP)
There is 2 methods of performance appraisal implented in GRASIM:- TRADITIONAL METHOD:- Supervisiors used to rate the employees Time consuming, lot of paper work- Logistical Nightmare
CURRENTLY USED METHOD:- A few years back the company decided tocoutsource its HR system to a company named ICOMM. Appraisals are done online.Employee . Appraiser communications are also maintained online. All the users were empowered independently using separate Login ID's .