1. Performance management

2. Performance management
Definition
A process or set of processes for establishing shared understanding about what is to be achieved, and managing and developing people in a way which increases the probability that it will be achieved in the short and longer term.
Overall aim
To establish a culture in which individuals and groups take responsibility for the continuous improvement of business processes, and of their own skills and contributions.

3. The basics of performance management I.
Communication of a vision of objectives and values to all employees
Setting departmental and individual performance targets linked to business objectives
Regular performance reviews throughout the year
Formal staff appraisal using one or more of the following:
competencies
objectives
skills acquisition
accountabilities
output levels
self assessment

4. The basics of performance management II.
Performance related pay or performance related bonuses
A thorough training and development system to address identified training needs
Career counselling
Organisational management reviews

5. Performance planning
Building a development driven system means focusing everyone on what is important.
Values
How we want to be
Vision
Where we want to be
Business planning
Key steps this year
Facilitation required
Departmental objectives agreed
Training required
Individual objectives agreed

6. The performance management process
Vision
Values
Business planning
Performance planning
Departmental objectives agreed
Job profiles
Individual objectives agreed
Training needs
Personal development needs
Career development
Sucession plans
Informal reviews of progress
Continuous Re-inforcing
Coaching
Performance managing
Annual review
Job profile
Objectives
Performance review

7. Goal setting Challenge Goal difficulty Moderators Mediators
Goal clarity
Self-efficacy
Moderators
- Ability Feedback
- Goal commitment Task complexity
Mediators
Direction
Effort
Persistence
Performance
Rewards
Consequences
Satisfaction

8. Goal characteristics and performance
Performance tendency
Specific and clear
Higher
Vague
Lower
Difficult and challenging
Set participatively
Accepted by employees
Rejected by employees
Accompanied by positive incentives

9. There are three different approaches for doing appraisal
There are three different approaches for doing appraisal. (Employees can be appraised against)
absolute standards
Measure an employee’s performance without comparing with any other employee
relative standards
Evaluating an employee’s performance by comparing the employee with other employee
objectives (MBO)
This performance appraisal method includes mutual objective setting and evaluation based on the attainment of specific objectives

10. Absolute standards
Essay appraisal: A performance appraisal method whereby an appraiser writes a narrative about the employee.
Critical incidents: Significant job related behaviours.
Checklist appraisal: A performance appraisal type in which a rater check off the attributes of an employee that apply.
Graphic rating scale: A performance appraisal method that lists a number of traits and a range of performance for each.
Behaviorally-anchored rating scale: A performance appraisal technique that generates critical incidents and develops behavioral dimensions of performance. The evaluator appraises behaviors rather than traits.

11. Relative standards
Group order ranking: A relative standard of performance characterized as placing employees into a particular classification such as the „top one-fifth.”
Individual ranking: Ranking employee’s performance from highest to lowest.
Paired comparison: Ranking individual’s performance by counting the number of times any one individual is the preferred member when compared with all other employees.

12. Tha basic elements of performance management
Reflects an organization’s key values with regard to management of people.
A system in place for the review of individual performance.
Clear definition of job
Mutual objective setting
Clearly understood reward system
Establish training needs

13. Development and succession planning
Identification of high flyers
Strenghtening of manager/ subordinate relationships
Direct impact on motivation
Vehicle for improving competence at all level
Vehicle for culture change

14. http://wesley.stanf ord.edu.hr/docs. Perf_Eval01- 02Form1.doc