04.

Performance Planning
What is Performance management?
Employee performance management is a strategic approach to creating and sustaining
improved performance in employees, leading to an increase in the effectiveness of
companies.
Managing performance of the organization to achieve its vision by implementing the
mission. It includes managing performance of people, structure, task and culture.

Performance Management is about managing how well employees and the organization
perform. It starts with setting clear goals for employees, checking their progress, giving
helpful feedback, and offering support like training. It also looks at the company’s
structure (how teams are organized), tasks (what jobs need to be

done), and culture (the workplace vibe) to make sure everything works together toward
the company’s big vision.

 For Employees: It helps them do their jobs better by setting targets, giving
feedback, and providing growth opportunities.
 For the Organization: It ensures the whole company—people, processes, and
culture—works toward the same mission.

Key Steps Made Simple

1. Setting Goals: Decide what employees need to achieve, like finishing a project or
meeting a sales target.
2. Checking Progress: Regularly see how they’re doing with meetings or reports.
3. Giving Feedback: Share what’s going well and what needs improvement.
4. Offering Support: Provide training or help to improve skills.
5. Reviewing Results: Look back at the end to see if goals were met and reward
good work.
6. Improving the Company: Adjust teams, tasks, or culture to support the vision.

Examples

 Employee Example: A shop assistant is given a goal to serve 10 customers a day.

The manager checks weekly, suggests better ways to greet customers, and offers a
 customer service course. At the end, the assistant gets a bonus for hitting the
target.
 Company Example: A business wants to be more eco-friendly. Performance
Management sets a goal for the team to reduce paper use by 20%. The HR team
trains staff on digital tools, reorganizes the office for less printing, and creates a
“green” culture. After six months, they succeed and celebrate as a team.

Overall approach of PM
1. Setting direction for the organization
2. Managing employee performance
PM Process
1. Performance planning
2. Conduct
3. Performance analysis
4. Performance review
1. Performance Planning

 Explanation: This is the first step where clear goals and expectations are set for
employees. Managers and employees work together to define what success looks
like, including specific targets, timelines, and the support needed (like training or
resources). It aligns individual goals with the company’s vision.
 Example: A sales team manager meets with a salesperson at the start of the
month. They agree the salesperson will sell 50 products and attend a customer
service workshop to improve skills, with a deadline of 30 days.
 Importance: It gives everyone a clear direction and a plan to follow.

2. Conduct

 Explanation: This step involves carrying out the plan. Employees work toward
their goals, while managers provide ongoing support, feedback, and guidance. It’s
about putting the plan into action and making adjustments as needed during the
process.
 Example: The salesperson starts contacting customers, attends the workshop, and
gets weekly tips from the manager on better sales pitches. If sales are slow, the
manager suggests focusing on a new product.
3. Performance Analysis

 Explanation: This step is about evaluating how well the employee is doing
compared to the set goals. Managers collect data, observe performance, and
identify strengths and areas for improvement. It helps understand what’s working
and what needs change.
 Example: Midway through the month, the manager checks the salesperson’s
progress and sees they’ve sold 25 products. They analyze that the new product
focus worked well but note a need for more follow-up calls.
 Importance: It provides insights to improve performance before the final review.

4. Performance Review

 Explanation: This final step involves a formal meeting to assess the employee’s
overall performance against the goals. Managers give feedback, discuss
achievements, address weaknesses, and decide on rewards (like bonuses) or
further development plans. It closes the cycle and sets the stage for the next one.
 Example: At the end of the month, the manager reviews the salesperson’s results
—52 products sold—and praises their effort. They agree on a bonus and plan a
goal of 60 products next month with advanced training.
 Importance: It recognizes hard work, addresses gaps, and prepares for future
success.
Financial – to succeed financially, how should we appear to our shareholders?
Internal business process – to satisfy our shareholders and customers, what business
process must we excel at?
Learning and growth – to achieve our vision, how will we sustain our ability to change
and improve?
Customer – to achieve our vision, how should we appear to our customer?
Introduction

The Balanced Scorecard is a strategic management tool that helps organizations measure
and manage performance beyond just financial results. Developed by Kaplan and Norton,
it provides a balanced view by considering four key perspectives: Financial, Customer,
Internal Business Processes, and Innovation & Learning.

Detailed Explanation of the Four Perspectives

1. Financial Perspective
o What It Is: This perspective focuses on how the organization looks to
shareholders, emphasizing financial goals and measures like revenue,
profit, and cost reduction. How do we look to our shareholders or owners?
o Focus: Profits, cost savings, return on investment.
o Purpose: It answers the question, "How do we look to shareholders?" and
identifies what the organization must excel at financially.
o Example: A company sets a goal to increase profit by 15% and measures it
through quarterly financial reports.
o Connection: Strong financial success depends on satisfying customers and
improving internal efficiency.
2. Customer Perspective
o What It Is: This perspective evaluates how customers perceive the
organization, focusing on goals and measures related to customer
satisfaction and retention. How do customers see us? Are they happy with
our service or product?
o Focus: Customer satisfaction, loyalty, and relationships.
o Purpose: It addresses, "Are we satisfying customer needs?" and explores
how to serve customers better in the future.
o Example: A business aims to achieve a 90% customer satisfaction rate and
measures it with feedback surveys.
 o Connection: Happy customers lead to increased sales, which supports
financial goals.
3. Internal Business Processes Perspective
o What It Is: This perspective looks at the internal operations and processes
that must work effectively and efficiently to meet customer and financial
expectations. What must we do internally to satisfy customers and
shareholders?
o Focus: Efficiency, quality, speed of internal processes.
o Purpose: It asks, "Are we working effectively and efficiently?" and
determines how to improve and create value.
o Example: A company sets a goal to reduce production time by 20% and
measures it with process efficiency reports.
o Connection: Efficient processes enhance customer satisfaction and
financial performance.
4. Innovation & Learning Perspective
o What It Is: This perspective focuses on the organization’s ability to
innovate, learn, and grow, ensuring long-term success through employee
development and new ideas. How can we improve, change, and grow in the
future?
o Focus: Employee development, knowledge sharing, use of technology, and
innovation.
o Purpose: It explores, "How can we continue to improve and create value?"
and identifies emerging opportunities and challenges.
o Example: A firm aims to train 80% of its staff in new technology and
measures it with training completion rates.
o Connection: Innovation and learning improve internal processes and
customer offerings, driving financial growth.

Example Scenario

Imagine a retail company using the Balanced Scorecard:

 Financial: Goal to increase profit by 10%, measured by annual revenue.

 Customer: Goal to achieve 85% positive feedback, measured by customer
surveys.
 Internal Business: Goal to reduce delivery time by 15%, measured by logistics
reports.
  Innovation & Learning: Goal to train 70% of staff in online sales, measured by
training records. The company improves staff skills (Innovation), streamlines
delivery (Internal), boosts customer satisfaction (Customer), and sees higher
profits (Financial).

How the Balanced Scorecard Aligns with Performance Management

Alignment of Balanced Scorecard with Performance Management Process

1. Performance Planning and Balanced Scorecard Perspectives

o Alignment: The Performance Planning stage involves setting clear,
measurable goals, which aligns with the Balanced Scorecard’s structure of
defining goals across its four perspectives: Financial, Customer, Internal
Business Processes, and Innovation & Learning. This stage uses the BSC to
establish a balanced set of objectives that reflect the organization’s vision
and strategy.
o How It Works: Managers use BSC perspectives to create specific targets.
For example, a Financial goal might be increasing profit by 10%, while a
Customer goal could be achieving 90% satisfaction.
o Example: A company starts the year by using the BSC to plan a 15% profit
increase (Financial), 85% customer satisfaction (Customer), 20% faster
production (Internal), and 70% staff trained in new tech (Innovation). The
PM process then turns these into individual employee goals.
2. Conduct and Balanced Scorecard Perspectives
o Alignment: The Conduct stage, where employees work toward goals with
ongoing support, aligns with the BSC by ensuring that daily activities and
processes support the set goals across all perspectives. Managers provide
guidance to link employee efforts to the BSC’s strategic focus.
o How It Works: Employees execute tasks while managers offer feedback
and resources, ensuring alignment with BSC measures like customer
satisfaction or internal efficiency.
o Example: A salesperson works on selling 50 products (linked to Financial
and Customer goals), attends a tech training (Innovation), and uses a new
process to speed up sales (Internal), with the manager checking progress
weekly.
3. Performance Analysis and Balanced Scorecard Perspectives
o Alignment: The Performance Analysis stage involves evaluating progress
against goals, which aligns with the BSC’s emphasis on measuring
 outcomes in each perspective. This step uses BSC measures to assess
whether the organization is on track and identifies areas needing
improvement.
o How It Works: Managers collect data (e.g., sales figures, customer
feedback) to compare against BSC targets, analyzing strengths and
weaknesses across all perspectives.
o Example: Midway through the quarter, the manager reviews that the
salesperson sold 25 products (below target), analyzes customer feedback
showing slow responses, and identifies a need for better follow-up training
(Innovation and Customer focus).
4. Performance Review and Balanced Scorecard Perspectives
o Alignment: The Performance Review stage, where results are formally
assessed and feedback is given, aligns with the BSC by evaluating success
across all perspectives and planning future improvements. It closes the PM
cycle while informing the next round of BSC goal-setting.
o How It Works: Managers review achievements against BSC goals, provide
rewards or corrective actions, and adjust strategies based on performance
data from all perspectives.
o Example: At the end of the quarter, the salesperson’s 52 products sold
exceed the goal, earning a bonus (Financial). The manager reviews positive
customer feedback (Customer), efficient processes (Internal), and training
impact (Innovation), planning a higher target for next time.

How They Work Together

 Integrated Framework: The BSC provides the "what" (goals and measures
across perspectives), while PM provides the "how" (a process to achieve them).
Together, they ensure a holistic approach to performance.
 Continuous Cycle: The PM process (Planning → Conduct → Analysis →
Review) uses BSC perspectives to set, monitor, evaluate, and refine performance,
creating a continuous improvement loop.
 Strategic Alignment: Both tools align individual and organizational performance
with the company’s mission, ensuring long-term success in a competitive 2025
landscape.

People PM – Importance
1. Employee engagement
 2. Talent retention
3. Developing leaders within
4. Boost performance related outcomes

Importance of Performance Management

1. Improves Employee Performance

o Explanation: PM sets clear goals, provides feedback, and offers support,
helping employees understand expectations and enhance their skills. This
boosts productivity and motivation.
o Example: A salesperson with a target of 50 sales per month receives
weekly coaching, improving their technique and achieving 55 sales.
o Why It Matters: Better performance leads to higher output, benefiting both
the employee and the company.
2. Aligns Individual and Organizational Goals
o Explanation: PM ensures that employee efforts support the company’s
mission and vision, creating a unified direction. This alignment drives
overall success.
o Example: A team working on a new product aligns their tasks with the
company’s goal to increase market share by 10%, contributing to the
objective.
o Why It Matters: It prevents wasted effort and ensures everyone works
toward the same purpose.
3. Enhances Employee Engagement and Retention
o Explanation: Regular feedback, recognition, and development
opportunities in PM make employees feel valued, increasing their
commitment and reducing turnover.
o Example: An employee receives a bonus and praise for meeting targets,
deciding to stay with the company rather than seek another job.
o Why It Matters: Engaged employees are more loyal, saving costs on
hiring and training new staff.
4. Identifies Training and Development Needs
o Explanation: PM highlights skill gaps through analysis, allowing
organizations to provide targeted training, preparing employees for future
challenges.
o Example: A manager notices an employee struggles with new software,
arranging a training session that improves their efficiency.
 o Why It Matters: It keeps the workforce skilled and ready for changes, like
new technology.
5. Supports Decision-Making and Accountability
o Explanation: PM provides data on performance, helping managers make
informed decisions about promotions, rewards, or corrective actions. It also
holds employees accountable for their work.
o Example: A review shows a team leader exceeded goals, leading to a
promotion, while another gets guidance to improve.
o Why It Matters: It ensures fair treatment and helps allocate resources
effectively.
6. Drives Organizational Growth and Competitiveness
o Explanation: By optimizing performance across teams and processes, PM
helps organizations adapt to market demands, innovate, and stay
competitive.
o Example: A company uses PM to streamline production, reducing costs
and outperforming rivals in a crowded market.
o Why It Matters: In today’s fast-paced world, PM is key to maintaining an
edge.

Performance Planning
Introduction

Performance Planning is a critical initial phase of the Performance Management process,

typically conducted at the beginning of the performance year. It involves setting a clear
roadmap for employees by defining their roles, responsibilities, and goals, while aligning
them with organizational objectives.

Detailed Description of Performance Planning

Performance Planning is the process of establishing a structured plan at the start of the
performance year to guide employee performance. It involves identifying key job areas,
setting objectives, and providing the necessary support to achieve them.

Should Be Done at the Beginning of the Performance Year:

 Explanation: Starting at the year’s outset allows for a full cycle of planning,
execution, and review. It sets the tone for the entire performance period.
Involves Identifying Job Areas & Activities Where People Put Most of Their Efforts:

 Explanation: This step pinpoints the core tasks and responsibilities where
employees spend most of their time, ensuring efforts are prioritized effectively.
 Example: For a customer service representative, key areas might include handling
calls and resolving complaints, identified as their focus.

Establishes KPAs (Key Performance Areas) and Objectives:

 Explanation: KPAs are the critical functions or areas of a job that significantly
impact organizational success. Objectives are specific, measurable targets within
these KPAs. They provide a framework to track performance.
 Examples of KPAs:
o Sales: Achieving revenue targets.
o Customer Service: Maintaining high satisfaction rates.
o Production: Meeting output quotas.
o Innovation: Developing new ideas or processes.
 Example: A salesperson’s KPA might be “Sales Growth,” with an objective to
increase sales by 15% in six months

Planning Organizational Support:

 Explanation: This involves ensuring employees have the resources, tools,

training, or guidance needed to meet their goals, such as access to technology or
mentorship.
 Example: A manager provides a new software tool and a training session to help a
team meet a production target.

Planning for Individual Development:

 Explanation: This focuses on personal growth, identifying skill gaps and planning
training or career development opportunities to enhance performance.
 Example: An employee struggling with presentations is enrolled in a public
speaking course to improve their communication skills.
Key Performance Areas (KPAs) for an HR Manager Role

Key Performance Areas (KPAs) are the critical functions of a job that significantly
contribute to the achievement of organizational goals.

List of KPAs for an HR Manager

1. Recruitment and Talent Acquisition

o Description: Ensuring the organization attracts, selects, and hires the right
talent to meet staffing needs.
o Example: Developing a recruitment strategy to fill 10 vacant positions
within three months, ensuring a diverse candidate pool.
2. Employee Training and Development
o Description: Designing and implementing programs to enhance employee
skills, performance, and career growth.
o Example: Organizing a leadership training workshop for 20 mid-level
managers to prepare them for future roles.
3. Performance Management
o Description: Overseeing the process of setting goals, monitoring
performance, and conducting reviews to improve employee and
organizational effectiveness.
o Example: Implementing a quarterly performance review system for 50
employees, ensuring alignment with company targets.
4. Employee Relations and Engagement
o Description: Fostering a positive work environment, resolving conflicts,
and boosting employee morale and engagement.
o Example: Mediating a dispute between two team members and launching
an employee recognition program to improve satisfaction.
5. Compensation and Benefits Administration
o Description: Managing salary structures, benefits, and reward systems to
ensure fairness and competitiveness.
o Example: Conducting a market analysis to adjust salaries for 30 staff
members, ensuring they remain competitive with industry standards.
Converting KPAs into Objectives for an HR Manager Role

Introduction

Key Performance Areas (KPAs) are transformed into objectives to provide specific,
actionable targets within the Performance Management process. Objectives define what
needs to be achieved, the time period for completion, the level of achievement, and the
criteria for measuring performance.

Conversion of KPAs into Objectives

1. KPA: Recruitment and Talent Acquisition

o Objective 1: Recruit and onboard 10 new employees for critical roles by
the end of the third quarter (September 30, 2025).
 What to Achieve: Fill 10 vacant positions.
 Time Period: End of Q3 2025.
 Level of Achievement: 100% completion of hiring targets.
 Criteria of Measuring Performance: Number of successful hires
confirmed and onboarded, measured by HR records.
o Objective 2: Increase diversity in new hires by 20% within the next six
months (by December 31, 2025).
 What to Achieve: Enhance diversity in the workforce.
 Time Period: Six months from start date.
 Level of Achievement: 20% increase in diverse hires.
 Criteria of Measuring Performance: Percentage of diverse
candidates hired, tracked via recruitment reports.
2. KPA: Employee Training and Development
o Objective 1: Conduct leadership training for 20 mid-level managers by the
end of the second quarter (June 30, 2025).
 What to Achieve: Train 20 managers in leadership skills.
 Time Period: End of Q2 2025.
 Level of Achievement: 100% participation and completion.
 Criteria of Measuring Performance: Training attendance and post-
training evaluation scores.
o Objective 2: Implement a skill development program for 50 employees by
year-end (December 31, 2025).
 What to Achieve: Enhance skills across the workforce.
 Time Period: End of 2025.
 Level of Achievement: 50 employees trained.
 Criteria of Measuring Performance: Number of employees
completing the program, measured by training logs.
3. KPA: Performance Management
o Objective 1: Roll out a quarterly performance review system for 50
employees by the end of the first quarter (March 31, 2025).
 What to Achieve: Establish a performance review process.
 Time Period: End of Q1 2025.
 Level of Achievement: 100% implementation for 50 employees.
 Criteria of Measuring Performance: Completion of all reviews,
tracked by HR system data.
o Objective 2: Achieve a 90% completion rate for performance reviews
across all departments by the end of each quarter in 2025.
 What to Achieve: Ensure regular performance evaluations.
 Time Period: End of each quarter in 2025.
 Level of Achievement: 90% completion rate.
 Criteria of Measuring Performance: Percentage of completed
reviews, monitored quarterly.
4. KPA: Employee Relations and Engagement
o Objective 1: Resolve 100% of reported employee conflicts within 10
working days by the end of each month in 2025.
 What to Achieve: Address and resolve conflicts promptly.
 Time Period: End of each month in 2025.
 Level of Achievement: 100% resolution within 10 days.
 Criteria of Measuring Performance: Number of resolved cases
within the timeframe, tracked by HR logs.
o Objective 2: Increase employee engagement survey scores by 15% by the
end of 2025 through a recognition program.
 What to Achieve: Boost employee morale and engagement.
 Time Period: End of 2025.
 Level of Achievement: 15% improvement in scores.
 Criteria of Measuring Performance: Survey results before and after
the program.

Performance Agreement or Contract

 Explanation: A performance agreement or contract is formalized based on these

objectives, signed by the HR Manager and their supervisor. It outlines the KPAs,
 specific objectives, timelines, achievement levels, and measurement criteria,
serving as a mutual commitment to performance goals.
 Example: The HR Manager and supervisor sign an agreement in January 2025,
detailing the objective to recruit 10 employees by September 30, 2025, with
success measured by HR records, ensuring accountability.

Performance Agreement: Senior HR Executive

Employee Name: [Insert Name]

Position Title: Senior HR Executive
Department: Human Resources
Supervisor: [Insert Supervisor Name]
Performance Year: January 1, 2025 – December 31, 2025
Date of Agreement: [Insert Date]

1. Introduction

This Performance Agreement outlines the Key Performance Areas (KPAs) and
Objectives for the performance year 2025. It aims to align the Senior HR Executive’s
responsibilities with the overall strategic goals of the organization, provide clear
expectations, and support personal and professional development.

2. Key Performance Areas (KPAs) and Objectives

KPA 1: Recruitment and Talent Acquisition

 Objective 1.1: Recruit and onboard 10 new employees for critical roles by
September 30, 2025.
 What to Achieve: Fill 10 vacant positions.
 Time Period: End of Q3 2025.
 Level of Achievement: 100% completion of hiring targets.
 Criteria of Measuring Performance: Number of successful hires
confirmed and onboarded, measured by HR records.

 Objective 1.2: Increase diversity in new hires by 20% by December 31, 2025.
 What to Achieve: Enhance diversity in the workforce.
  Time Period: Six months from start date.
 Level of Achievement: 20% increase in diverse hires.
 Criteria of Measuring Performance: Percentage of diverse
candidates hired, tracked via recruitment reports.

KPA 2: Employee Training and Development

 Objective 2.1: Conduct leadership training for 20 mid-level managers by June

30, 2025.
o Measurement: Attendance and evaluation scores.
o Achievement Level: 100% participation and completion.
 Objective 2.2: Implement a skill development program for 50 employees by
December 31, 2025.
o Measurement: Training completion records.
o Achievement Level: 50 employees trained.

KPA 3: Performance Management

 Objective 3.1: Roll out a quarterly performance review system for 50

employees by March 31, 2025.
o Measurement: Review completion tracked in HR system.
o Achievement Level: 100% implementation.
 Objective 3.2: Maintain a 90% performance review completion rate across all
departments each quarter.
o Measurement: Quarterly HR reports.
o Achievement Level: 90% each quarter.

KPA 4: Employee Relations and Engagement

 Objective 4.1: Resolve 100% of reported employee conflicts within 10 working

days each month.
o Measurement: HR case resolution logs.
o Achievement Level: 100% monthly resolution.
 Objective 4.2: Improve employee engagement survey scores by 15% by
December 31, 2025 through an employee recognition program.
o Measurement: Comparison of engagement survey results.
o Achievement Level: 15% improvement.
3. Organizational Support

To ensure the success of this agreement, the organization agrees to provide:

 Recruitment tools and sourcing platforms

 Training budgets and external facilitators
 Performance management software
 Support from senior leadership for engagement initiatives

4. Individual Development Plan

To enhance the performance and growth of the Senior HR Executive, the following
development areas are identified:

 Training in HR analytics for data-driven decision-making (Q1 2025)

 Participation in a leadership coaching program (Q2–Q3 2025)

5. Signatures

This agreement reflects a shared commitment to achieving the performance goals

outlined above. It will be reviewed periodically and adjusted as necessary.

Employee Signature: ________________________

Date: ___________________

Supervisor Signature: ________________________

Date: ___________________

Planning organizational support

 Deciding the others role - Subordinates'& Reporting officers'
 Deciding the supports-from other departments, other employees
 Role of employees getting support
 Qualities of them in getting supports
Planning individual development
Need to ask a series of questions
 What is the importance of each of the KPA'S? (Prioritize and give weights)
 What are the other areas of work? (Routine admin & tasks)
 What is the time allocation between KPA'S and Routine other tasks?
 What problems are expected in KPA'S and how do they solve?
 What support Is needed from others?
 What knowledge, skills attitudes, competencies, qualities, and roles do I need to
perform in KPA'S?
Employee performance management best practices
1. Identify the goals of your performance management initiatives
2. Define and describe each role
3. Pair goals with a performance plan
4. Monitor progress towards performance targets
5. Coaching should be frequent
6. Use guidelines to your advantage
7. Build a performance-aligned culture
8. Organize cross-functional workshops
9. Management should offer actionable feedback
10. Keep it professional, not personal
11. It's not only employees that need training
12. Take advantage of multiple-source feedback
13. Don't depend only on reviews
14. Problems are not always employee-based
15. Recognize and reward performance publicly and frequently

How to Conduct Performance Planning: A to Z Explanation

Introduction
A to Z Steps for Performance Planning

1. Assess Organizational Goals and Context

o Explanation: Begin by understanding the company’s mission, vision, and
strategic priorities to ensure alignment.
o Action: Review business plans and discuss with senior management.
o Example: Identify that the company aims to increase market share by 10%
in 2025.
2. Identify Key Performance Areas (KPAs)
o Explanation: Determine the critical job functions that contribute to
organizational success, as outlined earlier (e.g., Recruitment, Training).
o Action: List KPAs relevant to the HR Manager role.
o Example: Select KPAs like “Recruitment and Talent Acquisition” and
“Employee Training and Development.”
3. Convert KPAs into Objectives
o Explanation: Transform KPAs into specific, measurable objectives with
timeframes, achievement levels, and performance criteria.
o Action: Use SMART criteria (Specific, Measurable, Achievable, Relevant,
Time-bound) to draft objectives.
o Example: Set an objective for “Recruitment” to hire 10 employees by
September 30, 2025, with 100% success measured by HR records.
4. Decide the Roles of Others (Subordinates & Reporting Officers) – Planning
Organizational Support
o Explanation: Define how subordinates (e.g., HR staff) and reporting
officers (e.g., senior management) will contribute to achieving objectives.
o Action: Assign roles like subordinates screening candidates and reporting
officers approving hires.
o Example: Subordinates shortlist 20 candidates, while the reporting officer
finalizes the top 10.
5. Decide Supports from Other Departments and Employees – Planning
Organizational Support
o Explanation: Identify resources or assistance from other departments (e.g.,
IT for software) or employees (e.g., mentors).
o Action: Collaborate with departments to secure support.
o Example: Request IT to provide a new HR software and a senior employee
to mentor new hires.
6. Define the Role of Employees Getting Support – Planning Organizational
Support
o Explanation: Clarify what employees receiving support must do to utilize
it effectively.
o Action: Specify responsibilities like attending training or using provided
tools.
o Example: Employees must complete a CRM training session to use the
new software for recruitment.
7. Assess Qualities of Employees in Getting Support – Planning Organizational
Support
o Explanation: Evaluate traits like adaptability, willingness to learn, and
teamwork to ensure support is used effectively.
o Action: Observe or discuss these qualities during planning.
o Example: Select an employee with strong learning ability to lead a new
training program.
8. Ask a Series of Questions for Individual Development – Planning Individual
Development
o Explanation: Use reflective questions to prioritize KPAs, identify routine
tasks, allocate time, anticipate problems, plan support, and assess required
competencies.
o Action: Conduct a self-assessment or discussion with the employee.
o Details:
 What is the importance of each KPA? (Prioritize and give weights):
Rank “Recruitment” as 40% and “Training” as 30% based on
impact.
 What are the other areas of work? (Routine admin & tasks): Include
payroll processing and meeting scheduling.
 What is the time allocation between KPAs and routine tasks?:
Allocate 70% to KPAs and 30% to routine tasks weekly.
 What problems are expected in KPAs and how are they solved?:
Anticipate delays in hiring due to market shortages, solved by
expanding recruitment channels.
 What support is needed from others?: Request legal advice for
compliance training.
 What knowledge, skills, attitudes, competencies, and roles do I
need?: Need negotiation skills, positive attitude, and a leadership
role for training.
9. Identify the Goals of Performance Management Initiatives – Best Practice 1
o Explanation: Define the purpose of PM, such as improving productivity or
engagement.
o Action: Set goals like enhancing employee performance by 15%.
o Example: Aim to improve HR team efficiency through better recruitment
processes.
10. Define and Describe Each Role – Best Practice 2
 o Explanation: Create a detailed role profile outlining responsibilities and
KPAs.
o Action: Document the HR Manager’s role, including recruitment duties.
o Example: Describe the HR Manager as responsible for hiring 10 staff and
conducting training.
11. Pair Goals with a Performance Plan – Best Practice 3
o Explanation: Link objectives to a actionable plan with timelines and
resources.
o Action: Create a plan for the “Recruitment” objective with monthly
milestones.
o Example: Plan to shortlist candidates by March, interview by April, and
onboard by September.
12. Monitor Progress Towards Performance Targets – Best Practice 4
o Explanation: Track progress regularly to ensure goals are on track.
o Action: Schedule monthly check-ins.
o Example: Review the recruitment progress in April to ensure 5 candidates
are shortlisted.
13. Ensure Coaching is Frequent – Best Practice 5
o Explanation: Provide ongoing guidance to support employees.
o Action: Hold bi-weekly coaching sessions.
o Example: Coach the HR Manager on negotiation skills every two weeks
during recruitment.
14. Use Guidelines to Your Advantage – Best Practice 6
o Explanation: Leverage company policies or industry standards to guide
planning.
o Action: Follow HR compliance guidelines for training programs.
o Example: Use labor law standards to design a legal compliance workshop.
15. Build a Performance-Aligned Culture – Best Practice 7
o Explanation: Foster a workplace that values performance and
collaboration.
o Action: Promote teamwork through recognition.
o Example: Recognize top recruiters monthly to encourage effort.
16. Organize Cross-Functional Workshops – Best Practice 8
o Explanation: Conduct sessions with other departments to align efforts.
o Action: Host a workshop with IT on HR software use.
o Example: Train HR and IT teams together on the new CRM system.
17. Management Should Offer Actionable Feedback – Best Practice 9
 o Explanation: Provide specific, constructive feedback to improve
performance.
o Action: Give feedback after each review.
o Example: Suggest the HR Manager focus on candidate follow-ups after a
slow hiring month.
18. Keep It Professional, Not Personal – Best Practice 10
o Explanation: Focus feedback on performance, not personal traits.
o Action: Address task delays, not the employee’s character.
o Example: Critique a missed deadline rather than the HR Manager’s work
ethic.
19. It’s Not Only Employees That Need Training – Best Practice 11
o Explanation: Train managers and teams to support PM effectively.
o Action: Include managers in leadership training.
o Example: Train the HR Manager’s supervisor on coaching techniques.
20. Take Advantage of Multiple-Source Feedback – Best Practice 12
o Explanation: Gather input from peers, subordinates, and customers.
o Action: Conduct 360-degree feedback.
o Example: Collect feedback from staff and clients on the HR Manager’s
training sessions.
21. Don’t Depend Only on Reviews – Best Practice 13
o Explanation: Use ongoing assessments, not just annual reviews.
o Action: Implement monthly progress checks.
o Example: Check recruitment progress monthly instead of waiting for year-
end.
22. Problems Are Not Always Employee-Based – Best Practice 14
o Explanation: Address system or process issues that hinder performance.
o Action: Analyze and fix workflow bottlenecks.
o Example: Improve the hiring process if delays are due to slow approvals,
not the HR Manager.
23. Recognize and Reward Performance Publicly and Frequently – Best Practice
15
o Explanation: Celebrate achievements to motivate employees.
o Action: Announce rewards in team meetings.
o Example: Publicly praise the HR Manager for hiring 10 staff on time with
a bonus.
24. Finalize the Performance Agreement or Contract
 o Explanation: Document the plan, objectives, support, and roles in a signed
agreement.
o Action: Review and sign with the employee.
o Example: The HR Manager and supervisor sign a contract in January 2025,
detailing the 10-hire objective and support plan.
25. Launch and Communicate the Plan
o Explanation: Roll out the plan and ensure all stakeholders understand it.
o Action: Share the plan via meetings and emails.
o Example: The HR Manager presents the 2025 plan to the team, explaining
their roles in recruitment.

Trends in PM

1. Traditional Performance Management (TPM)

Definition:
Traditional performance management is a structured and formal system used by
organizations to evaluate and manage employee performance, typically over a fixed
annual or bi-annual cycle.

Key Characteristics:
  Focus on Process, Not People: The emphasis is placed on adhering to fixed
procedures and deadlines, such as annual goal-setting, mid-year reviews, and year-
end evaluations.
 Formal and Event-Driven: TPM is highly formalized and revolves around
specific events like appraisal meetings and documentation.
 Separate from Day-to-Day Work: The process is often detached from actual work
performance. Feedback and assessments happen outside the normal workflow.
 Low Impact on Performance: Due to its infrequent and rigid nature, TPM has been
found to only improve employee performance by 3% to 5%.
 Activity Spikes: As shown in the graph, there are activity spikes at the beginning
(goal setting) and end (review and decisions) of the cycle, with minimal
interaction or feedback during the rest of the cycle.

Limitations:

 Lacks real-time feedback.

 Employees may feel disengaged or blindsided by end-of-year reviews.
 Delayed correction of performance issues.

2. Everyday Performance Management (EPM)

Definition:
Everyday performance management is a modern, people-focused approach that
emphasizes continuous feedback and coaching, integrated directly into daily work
routines.

Key Characteristics:

 Focus on People, Not Process: EPM prioritizes the development and motivation of
employees over strict processes.
 Informal and Ongoing: Feedback and performance discussions happen regularly in
a more conversational and supportive environment.
 Integrated with Work: Performance management becomes a natural part of the
daily workflow, rather than a separate administrative task.
 High Impact on Performance: Studies show EPM can improve performance by up
to 39%, due to timely feedback and alignment with daily tasks.
 Consistent Activity Levels: The graph illustrates ongoing, steady engagement
across the performance cycle, ensuring continuous development.
Advantages:

 Encourages continuous improvement.

 Builds stronger manager-employee relationships.
 Enhances motivation and accountability.

Traditional Performance Everyday Performance

Aspect
Management (TPM) Management (EPM)
Focus Process-oriented People-oriented
Informal, continuous, and
Style Formal, structured, event-based
conversational
Once or twice a year (annual or
Cycle Frequency Ongoing throughout the year
bi-annual)
Integration with
Separate from day-to-day work Embedded into daily workflow
Work
Delayed, only during review
Feedback Style Real-time or regular feedback
times
Two-way dialogue between
Communication One-way (mostly manager-led)
manager and employee
Done at the beginning of the Goals are flexible, can be
Goal Setting
year, rarely updated adjusted regularly
Performance Focused on current performance
Based on past performance
Review and future improvement
Low engagement due to lack of
Employee High engagement due to regular
involvement and delayed
Engagement feedback and support
recognition
Manager Role Acts as a judge or evaluator Acts as a coach or mentor
Limited motivation due to lack Higher motivation due to ongoing
Motivation Level
of continuous interaction support and recognition
Impact on
Low (3%–5%) High (up to 39%)
Performance
Heavy documentation and Light documentation, focused on
Documentation
formal records discussions and progress
Occurs at fixed intervals (e.g., Continuous decisions and
Decision-Making promotion, bonuses at end-of- adjustments based on real-time
year reviews) performance
Example of Activity Peaks only at goal-setting and Steady activity throughout the
 Traditional Performance Everyday Performance
Aspect
Management (TPM) Management (EPM)
review times (as seen in the performance cycle (regular
Pattern
graph) feedback loops)

Case Study 1
Performance Management Case Study: How Fossil Group Evolved Its Performance
Management Practices

At a time when the retail industry was undergoing rapid change and increased
competition, Fossil Group knew it needed to find more efficient and effective ways to
keep its managers focused on performance management and results.

Fossil Group used a complex, 100% paper process for performance reviews and check-
ins for more than 15,000 global employees. They wanted to move toward a digital
performance management strategy, but knew they needed to simplify the process first.

Fossil Group set up four traditional components that were stretched across three strategic
touch points throughout the year. These touch points were supplemented with ongoing
performance conversations that could be initiated by any employee, at any time.

As Fossil Group evolved its company-wide performance approach, they were happy to
see immediate progress.
92% of employees participated in goal-setting reviews, setting an average of six
goals per employee.

However, when they dug into the data, they found that 35% of individual goals created
were misaligned or did not have an impact on the organization and its strategic priorities.
They knew they needed to get better at goal alignment if they wanted to meet important
business objectives.

Explore the three ways Fossil Group simplified performance management.

1. They scheduled ongoing performance conversations and continuous feedback.

Although the three formal performance touch points in place were working, Fossil Group
knew teams needed to have goal conversations more frequently. They implemented
informal “check-ins” that could be launched by any employee at any time.

To ensure adequate time was made for important performance conversations and other
performance-related activities, Fossil Group implemented "Performance Days" — days
strictly dedicated to employee performance. On these days, no task-related meetings are
scheduled, and all work is set aside for the day. Conversations between managers,
employees, and teams are all centered on performance.

2. They created intuitive goal conversation templates.

Fossil Group recognized that simply having more performance conversations wasn’t
enough — the conversations needed to include healthy dialogue, debate, and
collaboration from managers and employees. They created 1-on-1 templates to help guide
managers and employees through an effective and productive goal conversation.

Check-in templates could be customized to the needs and work of individual teams and
team members. The templates helped ensure conversations were focused on creating
clear, aligned, and motivating goals.

3. They used recognition to keep performance conversations fresh.

Fossil Group wanted to bring performance conversations full circle by recognizing

employee performance daily. They created recognition toolkits for managers including
fun notecards, gift cards, and employee recognition tips. They also launched an online,
peer-to-peer recognition program that generated an average of 140 recognition stories
each week.
By taking time to uncover the needs of its employees, and delegating time for managers
to focus on performance, Fossil Group was able to listen and act on employee voices and
evolve their performance strategy for success.

Case stidy 2

Performance Management Case Study: How Benesch Connected the Dots Between
Performance and Engagement

Benesch, a leading firm in the AEC industry, faced several challenges in the last several
years. They needed employees to understand how their performance was being measured,
a more effective strategy for hiring and retaining top talent, and enhanced learning and
development tied to succession planning.

To solve these challenges, they needed to analyze their strategies for effective 1-on-1
performance conversations, feedback, and build transparency and trust between
employees and managers.

The solutions Benesch implemented reduced turnover, boosted employee engagement,

and increased participation in development programs.

By doing these three things, Benesch revamped their performance management strategy
and processes:

1. They identified areas of improvement through feedback and metrics.

It all starts with feedback. Through engagement surveys and employee feedback to
managers, they gathered employee perspectives they could use to understand what was
working and where they could improve. They listened to employee feedback, analyzed
the data, and used that information to inform strategic decision-making and take action.

2. They trained managers to have meaningful 1-on-1 conversations.

Benesch held a training course for managers on how to have successful 1-on-1
conversations with their employees. This helped them communicate better, as well as
build transparency. By including clear performance measures in those performance
conversations, employees could better understand what was expected of them. By doing
this, employees communicated in surveys that they understood performance
expectations.

3. HR empowered managers with data and analytics.

Managers were given access to their team engagement results and analytics so they could
use those to have better team discussions. Those discussions led to improved goal-
setting.

By empowering managers and acting on employee feedback, Benesch proactively

updated its talent management strategies to bridge the gap between engagement and
performance.

Case study 3

Performance Management Case Study: Scooter’s Coffee Uses Performance

Management to Drive Employee Growth and Excellence

Scooter’s Coffee’s annual employee engagement survey revealed they had an opportunity
to improve career growth and development. Employees said they didn’t necessarily have
the tools, insight, or opportunity to grow within the organization, even though they were
looking for advancement.

They needed to design career pathways for employees’ career aspirations, but also
integrate them into employee conversations with their managers so that goal setting,
development plans, and future-focused performance discussions were all aligned

. Fostered regular advisory conversations between employees and managers.

Scooter’s Coffee conducted bi-annual talent reviews and encouraged frequent

conversations between employees and managers. Custom templates were created to gear
conversations toward growth and development.

2. Established top-down goal alignment.

Using a goals tool, Scooter’s coffee increased awareness and communicated

organizational and team goals across the company. Employees were encouraged to create
personal, development goals to help guide growth and development. 81% of employees
adopted goals.

3. Recognized employees through peer feedback and employee milestones.

Scooter’s Coffee enhanced their employee-centric culture with feedback and recognition.
Employees were encouraged to recognize others for their great work.

And Scooter’s Coffee saw tremendous success! Employee turnover decreased by 5% in a

year, with corporate store location noting a double-digit decrease. The organization
internally promoted 29 individuals in the first five month.

How Can You See Success in Changing Your Approach to Performance

Management?

When it comes to performance management, each organization’s approach is unique.

Crafting your strategy is an evolution. You can’t transform it overnight.

As you develop your customized process, follow these steps:

1. Read success stories. Find a performance management case study. Take notes
about how you can replicate their success.
2. Act on feedback. What are employees telling you in your engagement survey,
pulse surveys, and feedback to managers? How can it shape your new process?
3. Make one change. The middle ground between traditional and continuous
performance is vast. Find one thing you can do now to move the needle.
4. Train your managers. Make sure your managers understand the change. Coach
them in what you expect and how they will operate with the changes.
5. Get employee buy-in. Explain to employees why you’re making the change. After
you’ve made the change, ask employees what they think.
6. Repeat the process. Take the feedback you get from employees and make another
change for continuous process improvement. Then identify the next action you’re
going to take to improve performance management.

Case study 4

The British Broadcasting Corporation (BBC), the UK’s national broadcaster, employs
over 21,000 people across various operational and commercial divisions in the UK and
worldwide.

In 2020, the BBC had a highly flexible version of the annual appraisal. Jackie
Westerman, Senior HR Business Partner at the BBC, explains that there was a belief
among leaders that this “just wasn't right for a contemporary modern creative
organization”. Although it was applied well in pockets, it was inconsistent and
performance was not discussed as part of everyday life across the organization. The BBC
wanted to get the best out of employees and make it a more attractive organization to
potential recruits, through a climate of high performance and excellent employee
development opportunities. It wanted to reinvigorate its performance management
practices, putting people at the center of the process.
This case study demonstrates how evidence gathered was used to navigate this complex
process, and how the approach helped the HR team influence stakeholders and implement
its decisions

What evidence was used?

A starting point was to look at other organizations’ practices and general trends in
performance management. Although this was interesting, many examples were not
relevant to the BBC’s work and organizational culture. The evidence-based approach
drew together:

 stakeholder views: discussion with stakeholder groups, including senior leaders,

managers, trade union representatives and diversity network groups
 organizational data: management information, such as key performance indicators
(KPIs) and the uptake of performance development reviews, staff survey data and
employee focus groups
 professional expertise: insights from HR leaders, in particular from Jackie
Westerman, who, at the time, was doing her MSc in organizational psychology,
through Jackie’s academic networks and through fellow HR professionals at the
BBC
 scientific literature: literature on performance management, in particular through
Westerman’s MSc dissertation on the subject.

What insights did the evidence provide?

The HR team and stakeholders reached consensus early on that a key challenge was to
get employees and their managers more engaged with performance management
practices. But mandating more frequent performance appraisals was not considered
enough – there would be a risk of simply ‘doing it badly more often’. Rather, it was felt
that employees and their managers needed to reflect more deeply and openly about their
work, the impact that they were having, short-term improvements they could make, and
their longer-term career development.

The team also realized that to drive a high-performance culture, performance reviews
needed to feel fair, positive, and useful to employees:

“[We are very aware] how we want people to feel when they come out of this discussion
– we want them to feel focused, energized, excited about the work that they need to do,”
said Jackie Westerman.

What action was taken?

The BBC introduced a six-monthly meeting between each employee and their team
leader. The main aim was for this to be a high-quality, two-way, reflective discussion
about three things: job goals, performance feedback and career development. Making this
shift involved other complementary changes, such as:

 prompting employees to take a lead in setting their goals or targets

 a greater focus on recent successes, current challenges, and lessons for future
performance
 less of a focus on assessing past performance
 removing standardized performance ratings.

The changes were enabled through webinars and other training and development.

Results were extremely positive in both quality and quantity. For example, whereas
previously, only a small proportion of employees had performance reviews with their
managers, the first round of the new approach saw 85% of employees having them,
subsequently rising to 91%. Employee survey data showed increases in the proportion of
employees reporting having clear goals, helpful feedback, and discussions about career
development. And anecdotally, the HR team saw much more positive attitudes towards
performance review conversations.

How did an evidence-based approach help?

Drawing on and synthesizing the four sources of evidence helped the team navigate a
complex topic. As Jackie Westerman said:
“I very rarely find an absolute answer in the scientific evidence. It’s always nuanced...
[and depends on] context. Each source has strengths and weaknesses. It’s that
amalgamation of those four sources which enables you to come up with something which
is relevant to your organization.”

The evidence-based approach clearly helped the HR team influence stakeholders.

Performance management is often a sensitive topic, and it clearly had interest and strong
views throughout the BBC. The evidence-based approach enabled the team to justify and
ultimately carry through its decisions. As Jackie Westerman described:

“I was able to present it in a neutral way, saying: ‘This is the design that we have, that
I’ve put together for these reasons.’ And after the discussion, I presented senior leaders
with an evidence pack... [summarizing the research] and some of the organizational data.
Then we had a follow-up meeting and [a senior leader] actually said: ‘I can see it. So let’s
stick with your design.’”

Although time-consuming, the evidence-based approach was found worthwhile:

“I have found it to be a lot of work and quite lonely work as well at times. But what I
have found is that the quality of the design [you end up with] speaks for itself. You can
do some elements of being more evidence-based without having to do the whole
comprehensive process, but for us, the time invested has absolutely paid dividends in the
outcomes that have been achieved... Knowing that what you have designed is absolutely
drawing on the very best evidence available at that point – there’s a lot of professional
and personal satisfaction in doing that.”