1. Performance Management -Uttam Acharya shailaja Upadhyaya

2. Objectives
Explain performance planning, performance monitoring and performance appraisal.
Apply appropriate performance appraisal tools
Analyze the issues and challenges of performance appraisal

3. Contents Performance management Performance planning and monitoring
Performance appraisal tool and techniques
Issues and challenges of performance appraisal

6. Performance Management

7. 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

8. 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.

9. 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.

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

11. Why we need Performance management ?
Discussion

12. Need of Performance Management Systems
Result/outcome/Impact
Correct Performance/Behavior
Administer Salary & Wages
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

13. 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.”

14. 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.

15. Principle of performance management
Supports organization’s strategy
Value 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
Reinforces
Empowers employees

16. 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

17. 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

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

19. Performance management-employee Exercise
Please state ;In which area that you perform well..?
3/3 persons

21. Performance planning
The term performance planning is used to describe the whole process of
forming an agreement and then
expressing it as a number of actions to be taken
by the individual,
by the manager or
by the individual and the manager jointly

22. Performance planning (work plan)
It is the normal activity of preparing and agreeing programmes for the achievements of the objectives.
It is a continuing activity because of the need to revise and update work plans to meet new demands or situations.
It may be incorporated specifically into the performance agreement as a record of any decisions made about future

23. Performance planning PLAN (Strategic, Operational Plans
Job Clarification) SUPPORTING
(Monitoring, Coaching, Feedback)
FINAL REVIEW OF
(Results vs. Expectations)

24. Features of performance plan
Discussion about performance management
Encouragement
Guidance and orientation/training for basic skills
Joint agreement
Feedback
Review

25. Performance agreement
KRA-Key result areas
Areas - job holders are accountable for the achievement
Principle accountabilities
Will be quantified as targets
If not quantifiable; basis for defining performance standard
Objectives and standards of performance
Performance measures and indicators
Attributes and competencies

26. PBIS
NASC 2017

27. Improving Performance with plan
Action at organizational level (leadership, management role etc)
Department level
Team level
Action at the individual level
Select goal
Define expectations
Define performance measures
Monitor: progress
Manage under performance

28. Planning process Vision-mission- objectives Department/Unit objectives
Individual objectives
Operational
Personal competencies
Action plan-KRA, KPA, Indicators
Performance
Feedback
Review

29. Individual work objectives
Consistent (with Orgn. Dept. Unit objectives)
Precise
Challenging
Measurable
Agreed
Time related
Team work oriented

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

31. 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

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

33. Performance Monitoring
  Goal
achievement
Monitoring of performances of any organizational activity need to focus on three major dimensions
  Input-output
relation
  Performance
Of subordinates

34. Techniques of performance management
Job 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

35. What is performance appraisal?

36. Performance and Appraisal
artistic presentation
manner of functioning
working effectiveness
thing accomplished
accomplishment of something
display of behavior
Appraisal
Valuation
Evaluation

37. Performance Appraisal Defined
It communicates to employees how well they are performing the job and what they can do to improve
It has three main purposes:
Improve employee performance in the present job
Prepare employees for future opportunities in the organization
Provide a record of employee performance to be used as a basis for future management decisions

38. What is Performance Appraisal
What is Performance Appraisal? “concerned with the process of valuing a person’s worth to an organization with a view to increasing it”
Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee.
The focus of the performance appraisal is measuring and improving the actual performance of the employee, and
Also the future potential of the employee.
Its aim is to measure what an employee does.

39. Performance appraisal-periodic rating
Systematic, Periodic, and Impartial rating of an employee’s excellence:
“in the matters pertaining to his/her present job and potential for a better job”.
Systematic way of reviewing and assessing the performance of an employee : during a given period of time and planning for his future
Employees’ Performance: Time and Plan

40. Why do we need performance appraisal ?

41. Use of Performance Appraisal
Administrative purposes
Working conditions
Promotions
Termination
Rewards
Developmental purposes
Improving Performance
Strengthening job skills
Providing feedback
Counseling
Training

42. Performance Appraisal in Organization
To review the performance of the employees over a given period of time.
To judge the gap between the actual and the desired performance.
 To help the management in exercising organizational control.
 Helps to strengthen the relationship and communication between superior – subordinates and management – employees.
 To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. 

43. Process Of Performance Appraisal
ESTABLISHING PERFORMANCE STANDARDS
COMMUNICATING THE STANDARDS
MEASURING THE ACTUAL PERFORMANCE
COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE
DISCUSSING RESULTS
DECISION MAKING
ways to know degrees of an employee’s contribution to the organizational goals and objectives.

44. Techniques and tools Ranking method Paired Comparison
Confidential Report
Essay Evaluation
Critical Incident
Checklists (listing effective and ineffective behavior)
Graphic Rating Scale(QTQC-other attributes)
BARS
Forced Choice Method (choose one activity among alternatives)
MBO (how well accomplish the org objectives)
Field Review Technique
Performance Test

45. Graphic Rating Scale
How courteous is this front desk representative towards the customers?
Very Discourteous Neither Courteous Courteous Very
Discourteous nor Discourteous Courteous

46. Behaviorally Anchored Rating Scale (BARS)1 2 3 4 5 6 7
Ignores customer who needs help
Keeps customer waiting unnecessarily
Fails to thank customer for purchases
Answers customers questions promptly
Completes transactions in a timely manner
Greets customers pleasantly and offers assistance
Always tries to sincerely help customers locate items to suit their needs

47. Case analysis

48. Who Appraises Performance?
Supervisors
Self-appraisals
Peer appraisals
Subordinate appraisals
Customer/client appraisals
Multiple raters
360-degree appraisal

49. Issues and challenges Lack of objectivity Stereotype
Halo error (Rate employees the same on every trait)
Stereotype
Leniency/strictness
Central tendency
Recency effect (Focus on recent behavior and impression)
Similarity (similar values and interest to the reviewer)
Personal bias
Manipulating the evaluation

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

51. Performance Evaluation System in Nepal (ka. sa
Performance Evaluation System in Nepal (ka.sa.mu) of Gazetted staff- rating by the Supervisors (GoN)
Components
Excellent
Good
Acceptable
Unsatisfactory
Supervisor
Reviewer
(5)
(4)
(3)
(2)
Total quantity of performed works
Costs total performed works
Total Time spent for performed work
Quality of total performed works
Total

52. Performance Evaluation System in Nepal(example) (ka. sa
Performance Evaluation System in Nepal(example) (ka.sa.mu) of Gazetted staff- rating by the Review Committee (GoN)
Components
Excellen(1.0)
Good (.75)
Acceptable (.5)
Unsatisfactory
(.25)
Knowledge and skill about the subject matter
Quality & Quantity of Action Plan
Use of proficiency & decision capability
Capability to bear work load
Creativity and Leading capability
Timely filling the performance evaluation form in appropriate manner and capability of evaluation
Honesty, Morale and politeness
Sensitivity on Professionalism (keeping confidentiality and dignity)
Communication skill and individual behavior
Capability of organize the work and give leadership
Total

53. Reflecting the world
U.S. Military was one of the very first organizations to adopt performance ratings as a tool to dismiss poor performers during the World War I era (Cappelli and Tavis 64).
Evaluations are more of accountability tools.
NASC 2017