Performance Management -Uttam Acharya

Objectives Describe the core concepts of performance management Explain the process of performance management

Contents Concepts of performance management Need of performance management Effects of performance management Performance management process

Performance Management

Performance Management Management = getting work done through/with others Manager’s performance is only as good as his/her employee’s performance Manager’s job = performance management of others Performance = ability * motivation * support

Performance Management Performance refers to “outcomes, results or accomplishments” Rothwell, 2005 Rothwell (2005) describes performance as, “outcomes, results or accomplishments.” This is a simple yet profound concept. When all has been said, the question that remains to be asked is, “What have we accomplished?” I want to suggest that a key facet of our role as managers and supervisors in the Public Service is to ensure that at the end of the day, some positive results have been accomplished, results that contribute to improving the lives of the average citizen.  

Components of Performance Four components of performance A performer Behaviour Situation Results Morhman et al ,1989 Morhman et al (1989) identify four separate components of performance. They state that, “A performance consists of a performer engaging in behaviour in a situation to achieve results.” The authors indicate that most types of appraisal systems focus on the performer, the behaviour or results. They go on to classify the types of performance appraisal systems into four categories: Performer- oriented approaches; behaviour-oriented approaches; results-oriented approaches and comparison-oriented approaches.

Performance Management-holistic approach Organizational system Focusing on employee performance Consistently applied throughout organization With a supporting structure

Need of Performance Management Systems Administer Salary & Wages Correct Performance/Behavior Plan for Future (promotion, transfer, career dev) Facilitate Decision-Making (counseling, terminations) Facilitate Human Resource Planning Create Culture Building Good Relationships Increase Organizational Loyalty Determine Effectiveness of Selection and Placement Methods

Performance management-strategy Performance management is, “a continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization.” - Aguinis, 2005 Aguinis (2005) defines performance management as, “a continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization.”

Performance Management An iterative process of goal-setting, communication, observation and evaluation to support, retain and develop exceptional employees for organizational success. Communicate Observe Evaluate Set Goals

Performance management- not “A system that involves employee evaluations once a year without an ongoing effort to provide feedback and coaching so that performance can be improved is not a true performance management system.” Aguinis, 2005 He contends that, “a system that involves employee evaluations once a year without an ongoing effort to provide feedback and coaching so that performance can be improved is not a true performance management system.” He describes this rather, as only a performance appraisal system.

Principle of performance management Supports organization’s strategy Is values based Communicates organizational mission Fulfills responsibilities to organizational members Enables employees to manage own performance Manages expectations (clarifies roles and responsibilities) Creates partnership between management and employee Emphasizes importance of measurement, feedback, and Reinforcement Empowers employees Natural extension of management

Contribution of performance management- employee Clarify definitions of Job Key result areas KRA, Key performance area, Indicators success criteria Performance plan Increase motivation to perform Increase self-esteem Enhance self-insight and development

Contribution of PM-manager Communicate supervisors’ views of performance more clearly Managers gain insight about subordinates Better and more timely differentiation between good and poor performers Employees become more competent

Contribution of PM-organization/HR Clarify organizational goals Facilitate organizational change More appropriate for administrative actions

Performance management-employee Exercise Please state ;In which area that you perform well..? Please state, Which are the areas where poor performance would significantly damage the product / service provided by my unit / department and harm its quality and reputation

Setting performance Key Result Area-Responsibility Key Performance Area-Tasks Key Performance Indicator-Measurement-quantify- standardization

Performance management-organizational effectiveness Top-down integration Upward integration(not only top down) Lateral integration(interdependencies between.)

The performance management process Mission and value statement Objectives (org. dept. individual-aligning) Performance agreement (Jobs, goal setting, different forms design) Continuous performance management Feedback Preparation for review Performance review Feedback (moderating goals) Development and training Performance rating-performance related pay Improved performance

The performance management cycle Performance agreement Performance review Action Performance plan Monitor feedback and review

Different purposes Strategic Administrative Link individual goals with organization’s goals Communicate most crucial business strategic initiatives Administrative Salary adjustments, promotions, retention or termination Recognition of individual performance Layoffs (dismiss) Informational-communicate to employee Developmental Performance feedback/coaching Identification of individual strengths and weaknesses Tailor development of individual career path Organizational maintenance- workforce planning, training etc Documentational- to take decision, legal, validate

How did you learn to work at your office effectively/efficiently ? Who is your motivator? What factors ?

Names of Systems in managing performance Performance Management Performance Appraisals Evaluation Systems Job Review Systems Feedback Systems

Techniques of performance management Jon analysis( Job description, Job design, job enrichment) Performance appraisal(evaluation, rating scale) Staff development/Training Coaching and mentoring Counseling Job rotation Performance planning/Monitoring/feedback Rewarding/Praise/Recognition Authority Staff meeting Grievance handling

Result of performance management Reinforce to improve culture and change in an organization Performance driven performance management (individual, team, inter unit or team) Develops skills, competencies, and potentialities Provides information (eg performance related pay) Provide increased and sustained motivation Empower employee to take responsibility Build trust Attract and retain skilled staff Support total quality management

Characteristics of ideal PM system Congruent with organizational strategy Thorough Practical Meaningful Specific Identifies effective/ ineffective performance Reliable Valid Acceptable and Fair Inclusive Open (No Secrets) Correctable Standardized Ethical

Conclusion : How PM works Improved performance Performance effectiveness Coaching /counseling Performance agreement Monitoring and review against performance agreement Main performance review

Conclusion