Performance Management Systems

and
Career Management
(Theme Six)

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Performance Management Systems

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What is Performance Management

Performance is the record of outcomes produced on

specified job functions or activities during a specified time
period.

These outcomes are then assessed against indicators

It is the backbone of HRM practice in organizations

The process of reviewing employee performance,

documenting the review and feedback
Helps determine how employees can help organization
achieve its goals
Motivational tool for converting potential into performance
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Tenets of Performance Management

Some of the basic and critical aspects of performance
management (from Reengineering Performance Management, Weiss & Hartle)
Performance
There
All

management is a core business process

is no one-size-fits-all model

aspects of performance matter

Discretionary
Effective

links with rewards get important messages across

Ownership

of the process is the key

Performance

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effort drives success

management is about relationship

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Aims and Objectives of Performance Appraisal

Aims:
Organizational perspective Whether jobs are being
executed effectively and efficiently
Employee perspective Provides a clear communication of
expectations at work & assisting in employee development
Objectives:
To review past performance
To assess training needs
To develop individuals
To audit the skills
To get targets for future performance
To identify potential for promotions
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The Process of Performance Appraisal

Establishment of performance standards

Communication of performance standards to employees

Process of measurement of performance

Comparison of actual performance with standards

Initiation of follow-up action (corrective, when necessary)

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Primary Criteria to Assess Performance

1.

2.

3.

4.

5.

6.

Quality The degree to which the process or result approaches

perfection.
Quantity The amount produced, expressed in monetary terms,
number of units or completed cycles.
Timeliness The degree to which an activity is completed at the
earliest time desirable in relation to coordinating with the output
of others.
Cost-effectiveness The degree to which the use of resources is
maximized in terms of highest gain or reduction in loss.
Need for supervision The degree to which an employee can
request supervision.
Interpersonal impact The degree to which a performer promotes
feeling of self-esteem, goodwill and cooperativeness among
employees.
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Methods of Performance Appraisal

Essay Appraisal: simple; Unstructured; hard to compare

Critical Incident Method: Focus of key behaviors

Graphical Rating Scale: Assess different traits

Forced Distribution Method: Grading on a curve

Behaviorally Anchored Rating Scale: Numeric with behavior

Individual Ranking: List from highest to lowest

Paired Comparison: Each is compared to others one-on-one

Management by Objectives: Individual and Org Objective

360 degrees Appraisal: Multi-Rater Method

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Common Types of Assessment

Can Do:
Measures best performance related to knowledge skills and cognitive ability
Will Do:
Looks at a persons personality, preference and attitudes hence related to interpersonal
capabilities and personality traits

Will Fit:
Measures how an employee will mesh with the companys culture by assessing personality and
other traits linked with values and personality & interests

Can Lead:
Looks at a persons ability to lead through by applying360 multi-rater to measure emotional
intelligence and critical thinking

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Benefits of Performance Appraisal

For the Organization:

Improved performance, increased relationship &

cohesiveness

Improvement in the tasks performed

Identification of areas of improvement

Training and development needs can be identified

Continuous and sustained improvement can be

maintained
Long term plans can be developed based on identified
potentials

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Benefits of Performance Appraisal

For the Appraiser:

Overview of individual jobs and departments are

obtained
Identification of areas of improvement
Link individual and organizational objectives
Clarification of expectations
More productive relationships helping in reprioritizing targets

For the Appraisee:

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Increased motivation
Increased job satisfaction
Increased sense of personal values
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Problems in Performance Appraisal

Leniency Error

Halo Effect

Similarity Error

Low Appraiser Motivation

Central Tendency

Recency vs. Primacy Effect

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Potential Appraisal

Competence to perform well in the current job may not

be a valid indicator of potential for promotion.
Potential is a latent but unrealized ability
Employees have the desire and potential to advance
through the job they are in looking for opportunities
to operate at a higher level of competence
This may require specific skills that vacant positions
demand and other subjective areas like qualities
Indicators of Potential

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A sense of reality
Imagination
Power of Analysis
Breadth of Vision
Persuasiveness

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Career Management

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Basics of Career Management

The deliberate process through which a person becomes

aware of personal career related attributes and the life
long series of stages that contribute to his/her career
fulfillment
Careers are being redefined by the changing nature of
the jobs leading to more emphasis by individuals and
organizations
In the dynamic work environment careers are more
driven by the person and reinvented from time to time as
the person and the environment changes
Due to organizational factors there is a need to manage
careers by aligning it with competency management
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Competencies in Career Management

Optimizing Career Prospects: The ability to envision the

future opportunities, having broadly defined goals, to
create and make own choices. It ought to be:
(i) goal directed
(ii) anticipate future business and life changes
(iii) promote ones career interests
Career Planning (using strengths):
(i) Review work-skills interface
(ii) identify development needs and what is required
for effective performance
(iii) obtain data from work colleagues
(iv) anticipate future opportunities

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Competencies in Career Management, contd.

Engaging in Personal Development:

awareness to identify own development needs;
positive attitude towards learning;
supportive network where learning can take place
Balancing work and Non-work: Define priorities and
maintain motivation in the context of balancing the
relationship between these two factors

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Career Management Process Map

Focus Areas
Develop individual
career plans

Align individual and

corporate strategies

Facilitate employee
progress

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Key Learning
Integrate training needs and career
development
Identify role model behavior
Link careers with strengths, educational
goals and competencies
Link PMS and Career planning
Involve key managers in PMS
Ability to respond to changing business
needs
Encourage executive education program
Rigorously screen applicants
Link career plans to goals/competencies
Implement employee empowerment plans
Educate employees about career
development roles
Empower employees to take responsibility
for own career advancement
Utilize employee opinion surveys to
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develop
improvement plans

Career Planning Techniques

Techniques that organizations can use for effective career
planning and management based on study by London
Business School of 57 organizations:
Usage

of PMS as a basis for career planning

Career counseling by supervisor
Career counseling by HRM department
Books and/or flyers on career management
Assessment centers
Internal job postings
Appraisal committees
Formal education as part of career development
Career workshops
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Career Planning Techniques, contd

Written career planning programmes

Retirement preparation programmes
Mentoring
Performance appraisal as a basis for salary review
Management inventory (succession planning)
Quality circles as a source for identifying management
potential
Training programmes (to give managers skills to help
subordinates with their careers)
Self-career management

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Managing Promotions and Fair Treatment

Promotions are advancement to positions of increased

responsibility and transfers are reassignments to similar
(or higher) positions in other areas.
Some decisions:
Is seniority or competence the rule?
How should competencies be measured?
Is the process formal or informal?
Vertical, horizontal or others?

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Managing Promotions and Fair Treatment, contd

Managing fair treatment: Profoundly influences

attitudes and behaviors; builds trust leading to higher
performance. Create a better work environment and
build two-way communication. Fairness in discipline.
Managing dismissals: Grounds for discipline
(unsatisfactory performance; lack of qualification);
Insubordination; Avoiding wrongful discharge;
Termination interview

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ANY QUESTIONS?

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