Institution performance
Dr. Wael Fouad
Definition of PM Performance Management
1.Continuous Process of
Identifying
Measuring
Developing
The performance of individuals and teams
2.Aligning performance
with Strategic Goals of the organization
Differences
PerformanceManagement
Performance Management Performance
Performance Appraisal
Appraisal
Assesses employee
Strategic business
Strengths &Weaknesses
consideration
Driven By HR
Driven by line manager
Once a year
Ongoing feedback
So employee can improve
performance
Importance of Performance Management For
Employees
• Importance of Performance Management For
• Employees
• Increase self-esteem
• -Feedback fulfills basic human needs to be recognized &
• valued at work
• -Manager gain insight about subordinate
• -Developing productive relationship with colleagues is a
• key competency for a manager
• -Better understanding of individual contribution to
• organization objectives
• Importance of Performance Management For
• Employees
• Administrative actions are more fair & appropriate
• -Merit Increase, Promotion, Transfer, Termination
• -mprove the interpersonal relation & enhance supervisor
• subordinate trust
• Clarify organizational goals
• -Cascading down organization goals to team & individual .
• -Help improve employee acceptance to wider goals
• -Employee become more competent
• -Employee become more successful by establishing
development plans
Stages of PMS
Cascading of
objectives
Effectively Appraising
Performance
• Types of Performance Measurement
• Rating Errors
• • Contrast errors: the rater compares an
• individual, not against an objective standard,
• but against other employees.
• • Distributional errors: the rater tends to use
• only one part of a rating scale.
• — Leniency: the reviewer rates everyone near the top
• — Strictness: the rater favors lower rankings
• — Central tendency: the rater puts everyone near the
• middle of the scale
• Types of Performance Measurement
Rating Errors (continued)
• • Rater bias: raters often let their opinion of
• one quality color their opinion of others.
• — Halo error: when the bias is in a favorable direction.
• This can mistakenly tell employees they don't need to
• improve in any area.
• — Horns error: when the bias involves negative ratings.
• This can cause employees to feel frustrated and
• defensive.
• Giving Performance Feedback
• • Scheduling Performance Feedback
• — Performance feedback should be a regular, expected
• management activity.
• — Annual feedback is not enough.
• I-— Employees should receive feedback so often that they
• know what the manager will say during their annual
• performance review.
• • Preparing for a Feedback Session
• — Managers should be prepared for each formal feedback
• session.
• Conducting the Feedback Session
• - During the feedback session, managers can take any of
• three approaches:
• 1. "Tell-and-Sell" - managers tell employees their ratings
• and then justify those ratings.
• 2. "Tell-and-Listen" - managers tell employees their ratingsl
• and then let the employees explain their side of the
• story.
• 3. "Problem-Solving" - managers and employees work
• together to solve performance problems.
Balanced Scorecard (BSC)
• The BSC is a performance
management tool that enables
organizations to translate their
strategies into action.
• The BSC provides an organization
with feedback of both the internal
business processes, and external
outcomes which allows for
continuous improvement of
strategic performance and results.
Perspectives of Balanced Scorecard
Thank you
