PERFORMANCE

MANAGEMENT
UNIT -1 PERFORMANCE MANAGEMENT PERPECTIVES
OVERVIEW OF PERFORMANCE MANAGEMENT

• Performance management is the process of identifying, measuring, managing, and

developing the performance of the human resources in an organization. Basically we are
trying to figure out how well employees perform and then to ultimately improve that
performance level.
• Performance management is the systematic process by which an agency involves its
employees, as individuals and members of a group, in improving organizational
effectiveness in the accomplishment of agency mission and goals.
DIMENSIONS OF PERFORMANCE MANAGEMENT

• Result and Output dimension

• Input dimension
• Time dimension
• Focus dimension
• Quality dimension
• Cost dimension
Dimension 1. Result and Output:
The most acceptable and measurable dimension of performance is result and output. It describes the conditions
of inputs which included raw material, working conditions, process capabilities and talent of employees in the
final form of product or service. It is necessary to plan all the performance activities in a scientific and
systematic manner so that the desired result or output may be obtained.
Dimension 2. Input:
This dimension deals with the activities to be accomplished by the employee. Performance can be achieved if
the nature of inputs can be managed without mistake, because performance is a function of three sets of
factors – ability, motivation and organizational support. If anyone among these three factor is less the
performance is to be poor.
Employee Performance = Employee Competence + Employee Motivation + Organizational Support
Dimension 3. Time:
Time is precious and very important dimension of performance. In the current scenario of world, the
performance management is time bound otherwise the survival of organization is not possible in the future.
Performance of an employee in relation to a given role during particular period of time under the set of
circumstances operating at that point of time. Therefore, time may become the target.
Dimension 4. Focus:
Performance also has a focus dimension. For example in case of sales, profits and new areas. Focus
means attention, not only on own activities but should also keep close watch on related activities.
Dimension 5. Quality:
‘Quality is not destination but a journey’. Quality refers to doing the things right from the first time
rather than making and correcting mistakes in order to achieve total customer satisfaction. It
means quality is conformance to customer requirements, not goodness. Higher is the quality
greater is the satisfaction of customers. It is the responsibility of each and every employee as well
as management to build a quality standard which provides reasonable customer satisfaction at
economical cost. Quality is the core dimension of performance management.
Dimension 6. Cost:
The ultimate principle of purchasing is the low cost with best quality. Therefore cost effectiveness
is another dimension of performance management. It implies the capacity of a business unit to
produce a given commodity at a lower cost through more effective utilization of existing resources.
It is the process of cost reduction by improving efficiency of operations.
PROCESS OF PERFORMANCE MANAGEMENT

• PERFORMANCE PLANNING
Setting Objectives
Communicating expectations
Getting employee commitment

• PERFORMANCE MONITORING
Providing feedback
Problem solving
Regular reporting & monitoring
• PERFORMANCE APPRAISAL
Analyzing Performance data
Evaluating the performance of an employee

• PERFORMANCE RATING
Performance rating helps people do their jobs better, identifies training and education needs, assigns people to
work they can excel in, and maintains fairness in salaries, benefits, promotion, hiring, and firing. Most workers want
to know how they are doing on the job.

• PERFORMANCE REWARDING
Performance-based rewards are an incentive that employees receive based on their work-related contributions to
the company rather than their time with the company. Performance-based rewards can take many forms, including
stock options, bonuses, and salary increases.
FIVE FACTOR MODEL
Openness
The characteristics of people possessing this trait are always open to new ideas, imaginative, like taking
adventures and wanting to try new things. And people who do not prefer changes and resist new ideas are
low on the scale of openness.
Conscientiousness
People high on conscientiousness tend to be organized, always plan priory, and complete the task correctly
in the set schedule. And low conscientious people do not follow schedules and fail to complete the assigned
tasks.
Extraversion
Extraversion can be termed as the extroverts who always enjoy initiating conversations and get energized
when people are around. People who do not have these characteristics are introverts that find it challenging
to have conversations and have tiny groups.
Agreeableness
The characteristics of people possessing this trait are empathetic, they think about people, are kind, and
ready to help others. And those who don't care about others' feelings and are often insulting others are low
on agreeableness.
Neuroticism
Necroticism measures emotional stability. People high on this trait are not emotionally stable, experience
anxiety, mood swings, and quickly get irritated. Conversely, those who are stable emotionally and can handle
stress and difficult situations are low on neuroticism.
ELEMENTS OF EFFECTIVE PERFORMANCE
MANAGEMENT
• Assess your current Performance Management System
• Set SMART Performance Goals
• Have an clear Performance improvement Plan
• Focus on Employee Development
• Track performance progress consistently
• Provide and Receive feedback
• Focus on positive inforcement
PERFORMANCE MANAGEMENT
UNIT – 2 PERFORMANCE PLANNING AND REVIEW
PERFORMANCE PLANNING

• Performance planning is a systematic and structured approach to successfully

achieve the desired goals of an individual or team throughout the assessment
year.
PROCESS OF SETTING PERFORMANCE CRITERIA

• Clear objectives
• Management and employee endorsement
• Flexibility
• Predictability
• Performance Dialogue
• Appraisal form
• Periodic System Check
PERFORMANCE REVIEW

• A performance review is a formal regulated assessment mechanism In which

managers and other key Stakeholders Evaluate the employees work
performance. The purpose is to learn more about their strengths and
weaknesses and offer constructive feedback for their skill development in
future and assist with goal setting.
METHODOLOGIES OF PERFORMANCE PLANNING

• Task Analysis
• Key Performance Areas
• Key Result Areas
• Action Plans
• Goal Setting Exercise
PROCESS OF PERFORMANCE PLANNING

• Performance Planning
• Performance Monitoring
• Development plans
• Performance rating
• Rewards and feedback
PERFORMANCE COUNSELLING

• Performance counselling refers to the help provided by a manager to his

subordinates In objectively analyzing their performance.
• It attempts to help the employee in: Understanding himself – his strengths and
weaknesses. Improving his professional and interpersonal competence by
giving him feedback about his behavior.
PROCESS OF PERFORMANCE COUNCELLING

• Development of rapport between employee and manager

• Exploring information about performance
• Defining future goals
• Drawing action plans
COUNSELLING INTERVIEW

• Counselling interview is the initial interview With the clients by the counsellor
to obtain both information regarding the issues or problems that have brought
the clients into Counselling and preliminary information about personal and
family history.
PERFORMANCE MANAGEMENT
UNIT 3 PERFORMANCE MANAGEMENT SYSTEM
ASSESSMENT OF ORGANIZATIONAL
PERFORMANCE NEEDS
 Assessing organizational performance is a vital aspect of strategic management. Executives
must know how well their organizations are performing to figure out what strategic changes,
if any, to make. Performance is a very complex concept, however, and a lot of attention
needs to be paid to how it is assessed.
 Two important considerations are:
performance measures and
performance referent.
Performance measures are a metrics along which organizations can be gauged. Most executives,
investor and stakeholders watch and examine measures such as profits, stock price, and sales in an
attempt to better understand how well their organizations are competing in the market, as well as future
predicted results. But these measures provide just a glimpse of organizational performance.
Performance referents are also needed to assess whether an organization is doing well. A performance
referent is a benchmark or standard used to make sense of an organization’s standing along a
performance measure
ESTABLISHING PERFORMANCE
MANAGEMENT PROCESS
 Performance Planning
 Performance Monitoring
 Performance Appraisal
 Performance Rating
 Performance Rewarding
COMPETENCY BASED PMS

 Competency-based performance management measures employee

performance based on their improvements since the last competency
evaluation. In this type of system, the employee is measured against his own
past performance, and he does not necessarily compete with other employees
on his competency skill levels.
GENERIC MODEL OF PMS
IMPORTANCE OF PMS

 Helps to increase productivity by setting clear expectations

 Helps to improve employee performance
 Providing ongoing feedback
 Empowers team work
 Achieve short term and long term goal
 Overcoming the communication barries
CHARACTERISTICS OF PMS
 Clear Goal Alignment.
 Continuous Feedback Loop.
 Performance Metrics and KPIs.
 Development Opportunities.
 Fair and Transparent Evaluation.
 Recognition and Rewards.
 Employee-Centric Approach.
 Regular Performance Check-Ins.
 Performance Analytics
 Adaptability and Evolution
BEST PRACTICES OF PMS

 Agile goal setting

 Ongoing development conversation
 Continuous 360 degree feedback
 Social recognition of performance
 Involve employees in the PM design
PERFORMANCE
MANAGEMENT
UNIT-4 TEAM PERFORMANCE MANAGEMENT
PERFORMANCE MANAGING

 Performance managing’ describes the attempt to maximize the value that

employees create.
 It aims to maintain and improve employees’ performance in line with an
organization's objectives. It’s a not a single activity, but rather a group of
practices that should be approached holistically.
TEAM PERFORMANCE MANAGEMENT

 Team performance management involves recurring activities to establish

team goals, monitor progress toward the goals, and make adjustments to
achieve those goals more effectively and efficiently.
WORK WHEEL
WORK WHEEL
TEAM PERFORMANCE

 Team Performance refers to the effectiveness and efficiency of a group of

individuals working together towards common goals or objectives.
 It encompasses various aspects including productivity, quality of work,
collaboration, innovation, and achievement of goals.
MEASURING AND MANAGING TEAM
PERFORMANCE

➢ The most effective metrics for measuring team member performance will depend on your
business and on different team member roles. Here are five possible metrics for measuring
team member performance.
 Team Member Performance Metric
1. Attendance
2. Helpfulness
3. Efficiency
4. Initiative
5. Quality
SEVEN RULES OF EXCELLENCE FOR HR
PROFESSIONALS

 Become a best leader.

 Be honest, careful and sincere while hiring a person.
 Make the employee clear what is expected.
 Be fair.(while providing compensation)
 Make the employees clear what is expected from him/her.
 Training in relevant skills.
 Confront problems.
PERFORMANCE LINKED REWARD
SYSTEM

 Performance-linked reward system involves rewarding employees

according to their performance, or results achieved or contribution to
organizations performance as individuals or as a part of a group.
 If the employees perform better, they will get more rewards, and if they do
not perform well, they get fewer rewards.
HR BALANCE SCORECARD
PERFORMANCE
MANAGEMENT
UNIT-5 PERFORMANCE MANAGEMENT IMPLEMENTATION
STRATEGIES FOR EFFECTIVE IMPLEMENTATION
OF PERFORMANCE MANAGEMENT

 An effective performance management strategy motivates, measures

and develops the performance of employees to support big-picture goals.
 Leaders can leverage the process to outline expectations, create goals,
offer feedback, evaluate results, and establish developmental
opportunities.
 Align Performance Management With Organizational Objectives.
 Set Clear Expectations.
 Provide Quality Feedback.
 Initiate Performance Conversations.
 Tie Performance to Everyday Work.
 Review Goals Periodically.
MENTORING

 Mentoring is when someone shares their knowledge, skills, and experience

with another person to help them to progress.
 Mentoring can enhance your performance management program in
several ways. First, mentoring can help you create a culture of continuous
learning and improvement, where employees are motivated to seek and
share feedback, learn from mistakes, and pursue new challenges and
opportunities.
 Mentoring can strengthen social ties — by building interpersonal
relationships between colleagues — and increase the level of feedback
and recognition employees receive.
PERFORMANCE MEASUREMENT
METHODS

 PAST ORIENTED
 FUTURE ORIENTED
PAST ORIENTED METHODS
FUTURE ORIENTED METHODS
ETHICS IN PM / CODE OF ETHICS

 Fairness and Equity.

 Transparency.
 Employee Development.
 Accountability.
 Privacy and Confidentiality.
 Fairness and Equity
 Ethical performance management is rooted in the principles of fairness and equity. This means
that every employee should be treated without bias or favoritism during the evaluation
process.
 Transparency
 Transparency is a cornerstone of ethical performance management. It involves open and
transparent communication between employees and management regarding performance
expectations, evaluation criteria, and the consequences tied to performance outcomes.
 When organizations are transparent in their communication about performance, employees
develop trust in the process. They understand what is expected of them, how they will be
assessed, and the potential outcomes of their performance.
 Employee Development
 Ethical performance management prioritizes the development and growth of
employees. It’s not solely about rating past performance; it’s also about identifying
areas where employees can improve and providing them with the support and
resources to do so.
 Constructive feedback is a key component of ethical performance management.
Rather than focusing solely on past mistakes, it encourages a forward-looking approach
that helps employees reach their full potential
 Accountability
 Ethical evaluations hold both employees and managers accountable for their roles in
the performance management process. This accountability fosters a sense of
responsibility and commitment to the organization’s mission and values.
 Employees are held accountable for meeting performance expectations and striving
for continuous improvement. Managers are responsible for conducting evaluations
fairly and providing the necessary guidance and resources for employee
development.
 Privacy and Confidentiality
 Respecting employees’ privacy and maintaining the confidentiality of their
performance-related information are critical ethical considerations.
 This means that performance data and feedback are handled with care and discretion.
Information is only shared with individuals who have a legitimate need to know and is
not used for personal or unauthorized purposes.
 All in all, ethics in performance management is the ethical foundation upon which the
entire performance evaluation process rests. It ensures that evaluations are conducted
fairly, transparently, and focused on employee development and accountability while
respecting privacy and confidentiality. When organizations embrace these ethical
principles, they create an environment where employees can thrive, trust is built, and
performance management catalyzes growth and success