Performance Management SSg Sherwin h LUBIS PAF

OVERVIEW Define performance and performance management? Comparing Performance Appraisal and Performance Management Fundamental differences of Feedback and Appraisal Contribution of Performance Management System The Problems in Performance Management Disadvantages of poorly implemented Performance Management System

Define performance and performance management? Performance – is the results accomplishments by the employee in meeting specific objectives or the development of competencies necessary for effectively doing job.   Performance management – is a continuous process of supervisors employees working together to;

Set performance expectation linked to Organizational objectives Establish criteria against which individual and unit performance can be measured Identify areas for competency improvement Provide performance feedback Continually enhance performance

Comparing Performance Appraisal and Performance Management Performance appraisal is evaluating an employee’s current and/or past performance relative to his/her performance standards once a year without a going effort to provide feedback and coaching while performance management is a continues process of identifying, measuring and developing the performance with the strategic goals of the Organization.

Fundamental differences of Feedback and Appraisal Provides information Provides Judgement Generally verbal Written and official Continuous process Event based (Monthly, yearly, etc) Two way communication One way communication

Feedback give opportunities to employees to improve their performance as per required benchmarks while the job is being carried out. More frequent the interaction, the better. However this does not mean that it should be redundant or without any significant agenda.

Criticism can be given in small doses rather than in one big chunk at the end of the year. Act as coaches rather than judges allotting ratings. This will result in effective communication and positive outcomes for the company

Contribution of Performance Management System Motivation to perform is increased-feedback Self-esteem is increased-feedback Managers gain insight about subordinates The definition of job and criteria are clarified Self-insight and development are enhanced Administrative actions are more fair and appropriate Organizational goals are made clear Employees become more competent

There is better protection from lawsuits There is better and more timely differentiation between good and poor performance Supervisors views of performance are communicated more clearly Organizational change is facilitated Motivation, commitment and intentions to stay in the organization are enhanced.

The Problems in Performance Management No clear direction, weak values and performance culture. Vague and inequitable objectives Variable and inequitable appraisal/review leading to lack of improved performance and motivation Inadequate provision for training and development Poor communications due to bureaucracy.

Disadvantages of poorly implemented Performance Management system Increase turn over Use of misleading information – If standardized system is not in place Lowered self-esteem – If feedback is provided in an inappropriate way Wasted time and money Damage relationships Decreased motivation to perform – No Reward linkage Employee burnout and job dissatisfaction

Unclear rating system – because of poor communication Increased risk of litigation Unjustified demands on the managers’ and employees’ resources Emerging biases – personal values, biases are likely to replace Organizational standards Unclear rating system – because of poor communication

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