1. Performance Management “Ensuring organizational goals are met through motivated people”

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3. References Learning unit 7 Chapter 19 pages 491 - 504 Notes

4. Outcomes At the end of this module you should: 1.Be able to describe the steps in developing a Performance Management system 2.Make decisions as to who should perform the evaluation 3.Compare relative and absolute performance evaluation techniques 4.Explain common rater errors 5.Conduct effective feedback interviews

5. Drucker’s Five Needs Tell me what you expect of me Give me the opportunity to performGive me the opportunity to perform Give me help when I need itGive me help when I need it Tell me how I am doingTell me how I am doing Reward me for my efforts

6. Individual Reflection Think about your last performance review (Appraisal) 1.What did you like? 2.What did you not like? 3.What would you change?

7. Definition of performance mngt “The process of guiding, assessing and recording of staff performance. To ensure that the companies strategic objectives are met, and personal goals satisfied.

8. *Process of performance management 1.Aligning group & individual performance with business strategy 2.Coaching & mentoring 3.Evaluating performance & providing feedback 4.Reviewing and improving the system

9. Bus Strategy 1. Rolling out dept & individual goals 2. Ind coaching & mentoring 3. Performance reviews 4. Evaluating & Improving system *

10. 1. Aligning PMS to business strategy Mngr & subordinate agree how strategic goals be adapted by department & individual Agree an individual action plan Agree progress checks Agree the measures for evaluation and reward

11. 2. Coaching & mentoring Regular interim progress reviews & coaching sessions May be informal and formal Remove performance barriers Create an environment conducive to performance

12. 3. Performance evaluation Who should perform evaluation? Immediate supervisor Peers Subordinates Self appraisal Customer appraisal 360* feedback Team appraisal

13. 3. Performance evaluation RELATIVE JUDGEMENTS Compare peers Differentiate between employees Ranking of employees Does not determine how good or bad the performance ABSOLUTE JUDGEMENTS Performance based against agreed standards Feedback more specific May not differentiate between employees Vs

14. Rater problems & remedies 1.Unclear standards 2.Halo/horns effect 3.Central tendency 4.Leniency/strictness 5.Recency * 6.Bias 7.Single criterion 1. Discuss & agree beforehand 2. Be aware of total performance 3. Change rating to even number 4. Training on how 5. Measure throughout period 6. Be careful of people we like/dislike 7. Measure on a range of measures

15. *Appraisal interview 1.Before interview Gather appropriate information, plan the intervention, get training on appraisals, communicate with employee 2.During interview Encourage participation, focus on performance, be specific, provide motivational feedback, set action plans for improvement 3.After the interview Review performance, coach, guide, amend goals if necessary

16. 4. Evaluating performance mngt system Process of reviewing system and ensuring that the following are appropriate: –Strategy & critical objectives –Departmental & individual goals –Coaching processes –Review processes If not ~ change & communicate

17. Next week National skills Development issues & Training & development