1. Performance Management

2. Contents Outline Performance management
Performance Plan
Performance Monitoring
Performance Appraisal
Performance appraisal tool and techniques
Issues and challenges of performance appraisal
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3. Objectives
Familiarize with the concepts of Performance Planning, Performance Monitoring and performance appraisal.
Analyze the issues and challenges of performance appraisal
Use performance appraisal tool
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4. Introduction Performance = Ability x Willingness Experiences - Desire,
Skill Commitment
Knowledge Confidence
Attitude

5. What is Performance?
Measurement of the result or effectiveness of the job is called performance.
Result of the efforts including the resources for the defined job.
Systematic and objective oriented achievement of the individual or group regarding the job.

6. Performance Management
Performance Management (PM) is a way of systematically managing all the HR at the organization
It is a goal congruent win-win plan.
PM is an unending spiral and linking processes.
PM is a realism that an organization does nothing if it doesn’t manage performance.
PM is a holistic – largely participatory and goal congruent process of managing and supervising employees at work.

7. PM is an integrated process…
It affects four types of integration:
Vertical aligning
Functional focusing
Human Resources- linking different HRM sub- systems
Goals: attempting congruence between individual needs and goals of the organization.

8. Purposes of PM 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

9. It is concerned with: What is to be achieved ?
What quality is required ?
How is it to be achieved ?
By when is it to be achieved /
How will success be evaluated ?
What training and development are required ?

10. Performance management
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.”

11. 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.

12. Characteristics: Connected with behavior
Linked with skill and willingness,
Related with physical as well as mental
Environment bounded,
Connected with cost, productivity and time,
Represented by concrete, measurable terms.

13. Performance Management

14. 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

15. 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

16. Exercise SN Activity KRA KPA KPI 1
Traffic management in Kathmandu valley 2
Crime control in Kathmandu
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17. The performance management cycle
Performance agreement
Performance review
Action
Performance plan
Monitor feedback and review

18. HRM component AQUISITION HR Planning Recruitment
Employee socialization
MAINTENANCE
Safety and Health
Employee/Labor Relations
EXTERNAL INFLUENCES
DEVELOPMENT
Employee Training
Management Development
Career Development
UTILIZATION
Job Design
Performance Evaluation
Rewards/Job evaluation
Compensation/Benefits
Discipline

19. 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.

20. 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. 

21. Performance Appraisal in organization
To provide feedback to the employees regarding their past performance.
Provide information to assist in the other decisions in the organization.
Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.
To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.
To reduce the grievances of the employees.

22. Primary uses of Performance Appraisal www.performanceappraisal.com
Small Organizations
Large Organizations
All Organizations
Compensation
80.2%
66.7%
74.9%
Performance improvement
46.3%
53.3%
48.4%
Feedback
40.3%
40.6%
40.4%
Documentation
29.0%
32.2%
30.2%
Promotion
26.1%
22.8%
24.8%
Training
5.1%
9.4%
7.3%
Transfer
8.1%
6.1%
Discharge
4.9%
6.7%
5.6%
Layoff
2.1%
2.8%
2.4%
Personnel research
1.8%
2.2%
Manpower planning
0.7%
1.5%

23. Measurement Tools – Trait Appraisal Instruments/ graphic rating scale
Focuses on the person rather than on the performance
Employee is rated on factors such as initiative, dependability, cooperativeness, and quality of work
Supervisors tend to evaluate everyone
Method provides same information on all employees ( inexpensive to develop)

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

25. 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

26. Case
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27. Who appraises performance?
Discussion

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

29. 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

30. Some insights of PFM Transparency Employee development Mutual respect
Fairness and equity
Organizational climate
Effective management towards reducing external obstacles and constraints to performance

31. …Some insights of PFM In addition, Clear organizational goals
Translating organizational goals into individual, team, unit, section, departmental and divisional goals
Improving performance over time through a continuous and evolutionary process
Encouraging self-management of individual performance
Ensuring continuous feedback
Applying to all employees
Not limiting linking performance only to financial reward.

32. Key Learning Points
PM can have significant impact upon the operations and success of the organization.
People make genuine efforts to relate their goals and aspirations to the achievement of organizational goals.
Establish link between performance management policy, other HR policies and the business activities.
Create a shared vision of performance, generate commitment from employees and create an environment where it is “OK to perform”.
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33. Key Learning Points
If badly managed can present a dichotomy for the employee between team and individual goals.
The real sense of ownership and commitment from the side of line manager is required
Line manager should be involved in setting objectives and making the reviews
Both extrinsic and intrinsic motivation are to be taken into considerations
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34. Thank you
For your Attentive Participation