Performance Management # 1.1

Employee Performance What is expected of an employee in terms of -Quantity of output -Quality of output -With specification of conditions under which it is to be achieved (eg. Timeliness of output, Presence at work, Cooperativeness etc)

Dimensions of Performance Output/results dimension Inputs dimension Time dimension Focus dimension Quality dimension Costs dimension Neglected Aspect: Performance is Dyadic

Performance Management “Processes used to identify, encourage, measure, evaluate, improve, and reward employee performance.”

What is Individual Performance Management? Continual cycle of managing your employees’ performance by: –Establishing and communicating the expectations of work objectives and level of performance with the employee –Monitoring and providing feedback on an on-going basis on the employee’s activities, accomplishments, impact,and results –Setting professional training and development opportunities for the employee –Evaluating, rating, and formally documenting feedback on the individual employee’s performance –Acknowledging individual employee’s performance and contribution in a timely manner 5 Rewarding Planning & Setting Goals & Performance Measures Monitoring & Providing Ongoing Feedback Developing & Training Evaluating & Rating Key Components of the Staff Performance Management Cycle

Performance Management Process Review & Measurement Performance Planning Training & Development Reinforcements & Rewards Maximize Productivity & Performance

Benefits of Performance Management #1.2

Benefits to Organizations Improved productivity/profitability Reduced costs and wastage Enhanced quality Improved motivation Customer satisfaction Public recognition Competitive advantage

Benefits to Managers Know your staff better: Enable managers to communicate with staff Improvements in individual performance and contributions to the team Discuss new task and targets Acquire up-to-date information on current skills and expertise of employees Provide justification for merit increases, financial rewards and benefits Provide information and potential justification for disciplinary actions

Benefits to Employee Clarify job requirements, future tasks and targets Provide a channel for feedback more understanding and support from manager Develop those skills that are critical to good job performance Objective basis for rewards Opportunities for career growth/ development

Performance Appraisal

“The process of evaluating how well employees perform their jobs when compared to a set of standards, and then communicating the information to employees.” Formal Appraisal (PA) –Performance Appraisal – The formal periodic assessment of workers performance (normally annually) Informal Appraisal Day-to-day contacts, largely undocumented

Synonyms of Performance Appraisal performance review performance evaluation personnel rating merit rating employee appraisal employee evaluation

Performance Appraisal Process Performance Appraisal Problems Lack of standards; irrelevant, subjective, unrealistic standards Poor measures of performance Rater errors Poor feedback to employees e.g.. arguing Failure to use evaluation results for decision making Lack of standards; irrelevant, subjective, unrealistic standards Poor measures of performance Rater errors Poor feedback to employees e.g.. arguing Failure to use evaluation results for decision making

Performance Appraisal Process -unclear standards -halo effect -central tendency -leniency/strictness -appraisal bias -recency effect -similar-to-me bias -unclear standards -halo effect -central tendency -leniency/strictness -appraisal bias -recency effect -similar-to-me bias Rating Scale Problems