Performance management

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Performance management

Performance management

  • Definition
  • A process or set of processes for establishing shared understanding about what is to be achieved, and managing and developing people in a way which increases the probability that it will be achieved in the short and longer term.
  • Overall aim
  • To establish a culture in which individuals and groups take responsibility for the continuous improvement of business processes, and of their own skills and contributions.

The basics of performance management I.

  • Communication of a vision of objectives and values to all employees
  • Setting departmental and individual performance targets linked to business objectives
  • Regular performance reviews throughout the year
  • Formal staff appraisal using one or more of the following:
      • competencies
      • objectives
      • skills acquisition
      • accountabilities
      • output levels
      • self assessment

The basics of performance management II.

  • Performance related pay or performance related bonuses
  • A thorough training and development system to address identified training needs
  • Career counselling
  • Organisational management reviews

Performance planning

  • Building a development driven system means focusing everyone on what is important.
  • Vision
  • Where we want to be
  • Values
  • How we want to be
  • Business planning
  • Key steps this year
  • Individual objectives agreed
  • Training required

The performance management process

  • Vision
  • Values
  • Business planning
  • Departmental objectives agreed
  • Individual objectives agreed
  • Informal reviews of progress
  • Continuous Re-inforcing
    • Coaching
  • Annual review
  • Job profile
  • Objectives
  • Training needs
  • Personal development needs
  • Career development
  • Sucession plans
  • Performance planning
  • Performance review

Goal setting

  • Challenge
  • Goal difficulty
  • Goal clarity
  • Self-efficacy
  • Moderators
  • - Ability - Feedback
  • - Goal commitment - Task complexity
  • Performance
  • Rewards
  • Satisfaction
  • Consequences

Goal characteristics and performance

  • Goal characteristics
  • Performance tendency
  • Higher
  • Vague
  • Lower
  • Difficult and challenging
  • Higher
  • Set participatively
  • Higher
  • Higher
  • Rejected by employees
  • Lower
  • Accompanied by positive incentives
  • Higher

There are three different approaches for doing appraisal. (Employees can be appraised against)

  • There are three different approaches for doing appraisal. (Employees can be appraised against)
  • absolute standards
    • Measure an employee’s performance without comparing with any other employee
  • relative standards
    • Evaluating an employee’s performance by comparing the employee with other employee
  • objectives (MBO)
    • This performance appraisal method includes mutual objective setting and evaluation based on the attainment of specific objectives

Absolute standards

  • Essay appraisal: A performance appraisal method whereby an appraiser writes a narrative about the employee.
  • Critical incidents: Significant job related behaviours.
  • Checklist appraisal: A performance appraisal type in which a rater check off the attributes of an employee that apply.
  • Graphic rating scale: A performance appraisal method that lists a number of traits and a range of performance for each.
  • Behaviorally-anchored rating scale: A performance appraisal technique that generates critical incidents and develops behavioral dimensions of performance. The evaluator appraises behaviors rather than traits.

Relative standards

  • Group order ranking: A relative standard of performance characterized as placing employees into a particular classification such as the „top one-fifth.”
  • Individual ranking: Ranking employee’s performance from highest to lowest.
  • Paired comparison: Ranking individual’s performance by counting the number of times any one individual is the preferred member when compared with all other employees.

Tha basic elements of performance management

  • Reflects an organization’s key values with regard to management of people.
  • A system in place for the review of individual performance.
  • Clear definition of job
  • Mutual objective setting
  • Clearly understood reward system
  • Establish training needs

Development and succession planning

  • Development and succession planning
  • Identification of high flyers
  • Strenghtening of manager/ subordinate relationships
  • Direct impact on motivation
  • Vehicle for improving competence at all level
  • Vehicle for culture change

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