Performance Management

According to Coffman, "Performance refers to all activity of an individual which occurs during a period marked by his continuous presence before a particular set of observers and which has some influence on the observers". According to Louis R. Gomez and David B. Mejia, "Performance management is the process through which managers ensure that employee's activities and Outputs contribute to organizational goals". According to Armstrong, "Performance management is a: means of getting. better results from the organization, teams and individuals by tinder-standing and managing performance within an agreed framewo. C of planned goals, standards and competence requirements."

Objectives of Performance Management

The overall aim of performance management is 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. . These systems can be used to communicate and reinforce the organization's strategies, values and norms, and to integrate individual and corporate objectives. But they also enable individuals to express their own views on what they should be doing, where they should be going and how they should be managed. Thus, they provide a means whereby expectations can be shared between managers and their staff. Managers can clarify their expectations of what they want their staff to do and staff can communicate their expectations on how they should be treated. Performance management systems can also be used as an integrating process, which meshes various human resource management activities with the business objectives of the organization. They identified two broad thrusts towards integration: I) Reward-driven Integration: It emphasizes the role of performance payment systems in changing organizational behavior and tends to undervalue the part played by other human resource development (HRD) activities. 2) Development-driven Integration: It stresses the importance of ensuring that appropriate HRD activities are in place to meet the long--term objectives of the organization and, furthermore, to ensure business needs and HRD are coordinated. Although performance pay may operate in these

organizations, it is perceived to - be complementary to HRD activities, rather than dominating or driving them. The specific aims of performance management are to: i) Achieve sustainable improvements in the organizational performance; ii) Enable individuals to develop their abilities, increase their job satisfaction and achieve their full potential to their own benefit and that of the organization as a whole. Develop constructive and open relationships between individuals and their managers in a process of continuing dialogue, which is linked to the work actually being done throughout the year; iv) Provide a framework for the agreement of objectives as expressed in targets and standards of performance, so that mutual understanding of these objectives and the role both managers and individuals have to play in achieving them, is increased v) Provide for the accurate and objective measurement and assessment of performance in relation to agreed targets and standards, so that individuals receive feedback from managers on how well they are doing; i) On the basis of this assessment, to enable individuals with their managers to agree improvement plans and methods of implementing them, and jointly review training and development needs and agree how they should be satisfied ; vii) Provide an opportunity for individuals to express their aspirations and concerns about their work; viii)Provide a basis for rewarding people in relation to their contribution by financial and/or non-financial means the former consisting of performance related pay, and the latter including recognition of achievement and opportunities to take on more responsibility or enhance knowledge and skills.

ii)

iii)

Philosophy of Performance Management Performance management seeks to link individual and team job performance to the objectives and strategy of theA organization. It is a continuous process that involves managers and employees in the identification and evaluatio. of key performance, objectives and competencies that contribute to the attainment of the objectives and strategy of the organization. Performance management fosters and rewards excellent performance by motivating allek employees to perform at their best, keeping in view the principles of fairness and transparency. It is a. dynamic. process Which involves active involvement of both managers and their employees on an equal footing.

philosophy behind performance management can be captured in the following six care strategies: I) Clarify job responsibilities and clearly state agreed-upon goals (or performance expectations/performance Standards/performance criteria). 2) Communicate regularly by giving and receiving feedback throughout the year on performance, goals, directions, and changing expectations.

3) Counsel to improve performance problems and/or develop employee performance. 4) Compare performance to agreed-upon goals periodically and evaluate results. 5) Cultivate continuous learning, employee growth, and development. 6) Celebrate exemplary performance.

Process of Performance Management 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. Performance management process includes. planning, monitoring, developing, rating and rewarding

planning

rewarding

monitoring

rating

developing

1) Planning: In an effective organization, work is planned out in advance. Planning means setting performance expectations and goals for groups and individuals to channel their efforts 'toward achieving organizational objectives. Getting employees involved in the planning process will help them understand the goals of the orgailization,what needs to be done, why it needs to be done, and how well it should be done. The: regulatory requirements for planning employees' Perfermance include establishing the elements and standards of their performance appraisal plans. Perfcnnance elements and standards should be measurable, understandable, verifiable, equitable, and achievable. Through critical elements, employees are held accountable as individuals for work assignments or responsibilities. Employee performance plans should be flexible so that they can be adjusted for changing program objectives and work requirements. When used effectively, these plans can be beneficial working documents that are discussed often, and not merely paperwork that is filed in a drawer and seen only when ratings of record are required. 2) Monitoring: Monitoring well means consistently measuring performance and providing ongoing feedback to employees and work groeps on their progress toward reaching their goals. Regulatory requirements for monitoring performance include conducting progress reviews with employees where their performance is compared against their elements and standards. Ongoing monitoring provides the opportunity to check how well employees are meeting predetermined standards and to make changes to unrealistic or problematic standards. And by monitoring continually, unacceptable performance can be identified at any time during the appraisal period and assistance provided to address such performance rather than wait until the end of the period when summary rating levels arc. Assigned. In an effective organization, employee developmental needs are evaluated and addressed. Developing in this instance means increasing the capacity to perform through training, giving assignments that introduce new skills or higher levels of responsibility, improving work processes, or other methods. Providing employees with training and developmental opportunities encourages good performance, strengthens job-related skills and competencies, and helps employees keep up with changes in the workplace, such as the introduction of new technology .Carrying out the processes of performance management provides an excellent opportunity to identify developmental needs. During planning and monitoring of work, deficiencies in performance become evident and can be addressed. Areas for improving good performante also stand out, and action can be taken to help successful employees improve even further.

3) Developing: In an effective organization, work is plarined out in advance. Planning means setting performance expectations and goals for groups and individuals to channel their efforts toward achieving organizational objectives. Getting employees involved in the planning process will help them understand the goals of the organization, what needs to be done, why it needs lobe done, and how well it should be done. The regulatory requirements for planning employees' performance include establishing the elements and standards of their performance appraisal plans. Performance elements and standards should be measurable, understandable, verifiable, equitable, and achievable. Through critical elements, employees are held accountable as individuals for work assignments or responsibilities. Employee performance plans should be flexible so that they can be adjusted for changing program objectives and work requirements. When used effectively, these plans can be beneficial working documents that are discussed often, and not merely paperwork that is filed in a drawer and

seen only when ratings of record are required. In an effective organization, assignments and projects are monitored continually. Monitoring well means consistently measuring performance and providing ongoing feedback to employees and work groups on their progress toward reaching their goals. 4) Rating: From time to time, organizations find it useful to summarize employee performance. This can be helpful for looking at and comparing performance over time or among various employees. Organizations need to know who their best performers are. Within the context of formal performance appraisal requirements, rating means evaluating employee or group performance against the element.; and standards in an employee's performance plan and assigning a summary rating of record. The sating of record is assigned according to procedures included in the organization's appraisal program. It is based on work performed during an entire appraisal period. The rating of record has a bearing on various other personnel actions, such as granting withingrade pay increases and determining additional retention service credit in a reduction in force. Note: Although group performance may have an impact on an employee's summary rating, a rating of record is assigned only to an individual, not to a group. 5) Rewarding: In an effective organization, rewards are used well. Rewarding means recognizing employees, individually and as members of groups, for their performance and acknowledging their contributions to the agency's mission. A basic principle of effective management is that all behavior is controlled by its consequences. Those consequences can and should be both formal and informal and both positive and negative. Good performance is recognized without waiting for nominations for formal awards to be solicited. Recognition is an ongoing, natural part of day-to-day experience. A lot of the actions that reward good performance like saying "Thank you" don't require a specific regulatory authority. Nonetheless, awards regulations provide a broad range of forms that more formal rewards can take, such as cash, time off, and many non-monetary items. The regulations also cover a variety of contributions that can be rewarded, from suggestions to group accomplishments.

Performance appraisal

according to Flippo, "Performance appraisal is a systematic, periodic and so far as humanly possible, an impartial rating of an employee's excellence in matters pertaining to his present job and to his potentialities for a better job". A formal definition of Performance appraisal is that, "It is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development

Objectives/Purpose of Performance Appraisal

I) Providing Feedback: Providing feedback is the most common justification for an organization to have a performance appraisal system. Through its performance appraisal process the individual learns exactly hoNieee, well lie did during the previous twelve months and can then use that information to improVe h&.e performance in the future. In this regard, performance appraisal serves another important purpose by making sure that the boss's expectations are clearly communicated. 2) Facilitating Promotion Decisions: Almost everyone in an organization wants to get ahead.. How should the company decide who gees the brass rings? Performance appraisal makes it easier for the organization to make good decisions about making sure that the most important positions are filled by the most capable individuals. 3) Facilitating Lay-off or Downsizing Decisions: If promotions are what everybody wants, lay-offs are what everybody wishes to avoid. But when economic realities force an organization to downsize, performancC appraisal helps make sure that the most talented individuals are retained and that only the organization'S' marginal performers are cut loose. 5) Motivating Superior Performance: This is another classic reason for having a performance appraisal system. Performance appraisal helps motivate people to deliver superior performance in several ways. First, the appraisal process helps them learn just what it is that the organization considers being "superior." Second, since most people want to be seen as superior performers, a performance appraisal process provides them witic, a means to demonstrate that they actually are. Finally, performance appraisal encourages employees to avoid being stigmatized as inferior performers'(or, often worse, as merely "average"). 6) Setting and Measuring Goals: Goal setting has consistently been demonstrated as a management process that generates superior performance. The performance appraisal process is commonly used to make sure that every member of *he oiganizetion sets and achieves effective goals. 7) Counseling Poor Performers: Not everyone ineets the organization's standards. Performance appraisal - forces managers to confront those whose performance is not meeting the company's expectations". 9) Encouraging Coaching and Mentoring: Managers are expected to be good coaches to their tearn, members and mentors to their proteges. Performance appraisal identifies the areas where coaching is necessary and encourages managers to take an active coaching role. 10) Improving Overall Organizational Performance: This is the most important reason for an organization to have a performance appraisal system. A performance appraisal procedure allows the organization to communicate performance expectations to every member of the team and assess exactly how well each how he is

person is doing. When everyone is clear on the expactations and knows exactly performing against them, this wili result in an overall improvement in organizational success

Methods of Appraisal Appraisal methods can be classified into: ) Past-Oriented Method. 2) Future-Oriented Method.

Past - Oriented . Rating Scales Checklist . . Forced Choice Method Forced Distribution Critical incident Method . Field Review Method Performance Tests and Observations-. Annual Confidential Reports Essay Method Cost Accounting Approach Comparatie Evaluation Approach

Future - Oriented Management by Objectives Psychological Appraisals Assessment Centre 360' Performance Appraisal Behaviorally Anchored Rating. Scales . Human Resource Accounting

. Past-Oriented

Methods

I) Rating Scales: This is the simplest and the Most popular technique for appraising employee performance. The typical rating-scales system consists of several numerical scales, each representing job-related performance criterion such as dependability, initiative output, attendance, attitude, cooperation and the like. Each scale ranges from excellent to poor. The rater checks the appropriate performance level on each criterion, and then computes the employee's total numerical score. The number of points scored may be linked to salary increases whereby so many points equal a rise of some percentage. 2) Checklist: In this method, the rater doesn't evaluate employee performance; he supplies reports about it and the final rating is done by the personnel department. A series of questions are presented concerning an employee to his behavior. The rater, then, checks to indicate if the answer to a question about an employee is positive or negative. To value of each question may be weighed equally or certain questions may be weighed more heavily than others. Generally, the questions are on 'yes / no' pattern. 3) Forced Choice Method: In this the rater is given a series of statements about am employee. These statements are arranged in block of two or more, and the rater indicates which statement is most or least descriptive of the employee. Typical statements are i) Learns fast works hard ii) Work is reliable performance is a good example for iii) Absent often other usually tardy. 4) Forced Distribution Method: One of the errors in rating is leniency-clustering a large number of employees around a high point on a rating scale. The forced distribution method seeks to overcome the problems by compelling the rater to distribute the rates on all points on the rating scale. The method operates under an assumption that the employee performance level confirms to a normal statistical distribution. Generally, it is assumed that employee performance levels conform to a bell-shaped curve. For example, the following distribution might be assumed to exist- excellent 10%, good 20%, average 40%, below average 20% and unsatisfactory 10%.

5) Critical Incidents Method: The approach focuses on certain critical behaviors of an employee that makes all the diffelence between effective and non-effective performance of a job. Such incidents are: recorded by the superiors as and when they occur. Advantages of Critical Incident Method i) The evaluation is based on actual job behavior. ii) The approach has description in support of particular rating of an employee. iii) Giving job- related feedback is the rates is also easy. iv) It also reduees the recency bias, if raters record incidents throughout the rating period. v) This approach can increase the chances that the subordinates will improve because the learn more precisely what is expected of them. Limitations of Critical Incident Method i) Negative incidents are generally more noticeable than positive ones. - ii) The recording of incidents is chore to the supervisors and may be put off and easi:y forgotten. iii) Overly close supervision may result. iv) Managers may unload a series of complaints about incidents during an annual performance review session. The feedback may be two much at one time and thus appear as punishment to the rate.

6) Field Review Method: This is an appraisal by someone out side the assesee's own department usually some one from the corporate office or the HR department. The outsider reviews employee records and holds interviews with the rates and his or her superior. The method is primarily used for make promotional decision at the managerial level. Field reviews are also useful when comparable information is needed from employee in different units or locations. 7) Confidential Report Method: In this method each employee is rated confidentially by one or more seinior officers for his performance. A. confidential report by immediate supervisor is still a major determinant of the subordinate's or transfer. The report deals with the years work and general opinion of the rater towards the employee. The main problem with this method is that it is not data based and the appraisal is done on

8)Essay Method: In the essay method, the rater must describe the employee within a number of broad categories such as: i) The rater's overall impression of the employee's performance. ii) The promotablity of the employee iii) The jobs that the employee is now able or qualified to perform. iv) The strength and weaknesses of the employee and the training and the development assistance required by the employee. Although this method may be used independently it is most frequently found in combination with others. It is extremely useful in filling information gaps about the employee that often occur in the better structured checklist method. 9) Cost Accounting Method: This method evaluates performance from the monetary returns the employee yields to his or her organization. A relationship is established between the cost include in keeping the employee and the benefit the organization derives from him or her. Performance of the employee is then evaluated based on the established relationship between the cost and the benefit.

10) Comparative Evaluation Approaches: These are a collection of different methods that compare one worker's performance with that of his/her co-workers. Comparative appraisals are usually conducted by supervisors. As these appraisals can result in a ranking from best to worst, they are useful in deciding merits-pay increases, promotions and organizational rewards. The usual comparative forms used in this kind of evaluations are the ranking method and the paired comparison method.

i)

Ranking Method: In this, the superior ranks his or her subordinates in the order of their merits, starting from the best to the worst. All that the HR department knows is that A is better than B. The "how" and "why'. are not questioned, nor answered. No attempt is made to fractionalize what is being appraised into cOmponent elements. This method is subject to the halo and recency effects, although ranking by two or more raters can. be averaged to help reduce biases. It advantages include ease of administration and explanation.... - .

ii)

ii) Paired - Comparison' Method: Under this method, the appraiser compares each employee with eyery other employee, one at a time. For example, there are five employees name A, B, C, D and F. the performance of A is first compared with the performance of B and a decision is made about whose performance is better. Then A is compared with C. D and E in that order. The same procedure is repeated for other employees. The number of comparisons may be calculated with the help of formula which reads thus: - *- N(N-1)/2 where N stands tor the number of employees to be compared. If there are employees the number of comparisons will be 10(10-1)/2 =45. After the completion, the result can be tabulated and a rank is created from the number of times each person is considered to be superior.

Future-Oriented Appraisals 1) Management by Objectives: It was Peter F. Drucker who first gave the concept of MBO to the world way back in 1954 when his The Practice of Management was first published. The MBO concept, as was conceived by Drunker, reflects a management philosophy which values and utilized employee contributions. Application of MBO in the field of performance appraisal is a recent thinking. According to Prof. Reddin, "M.B.O. is the establishment of effectiveness areas and effectiveness standards for managerial positions and the periodic conversions of these into measurable time, bound objectives linked vertically and horizontally and with future planning. " According to S.K. Chakarvarty "M.B.O may be defined as a result centered, non specialist operational managerial process for the effective utilization of material, physical and human resources of the organization, by integrating the individuals with the organization and organization with environment." . 2) Psychological Appraisals: Large organizations employ full-time industrial psychologists, psychologists are used for evaluations, they assess an individual's future potential and not past' performance. The appraisal normally consists of in-depth intervieWs, psychological tests. discussions with supervisor's and a review of other evaluations. The psychologist then writes an evaluation of the employeentellectual, emotional, motivational and other work-related characteristics thatsuggest individual potential and may predict future performance. . 3) Assessment Centres: mainly used for executive hiring, assessment Centres are now being used for evaluating executive or supervisory potential. An assessment centre is a central location where many, may come together to have their participation in job-related exercises evaluated by trained observers. The principal idea is to evaluate managers over a period of time, say one-to three days, by observing (and lateevaluating) their behavior across a series of selected exercises or work samples. Assesses are requested participate in in-basket exercises, work groups(without leaders), computer simulations, rule playing, and other similar activities which require the same attributes for successful performanCe, as in the actual jol-After recording their observations of rate behaviors, the raters meet to discuss these observations.

4) 3600 Performance Appraisal: The appraiser may be any person who has thorough knowledge about the job content, contents to be appraised, standards of contents, and who observes the employee while performing a job. The appraiser should be capable of determining what is more important and what is relatively less important. He should prepare reports and make judgments without bias. Typical appraisers are: supervisor, peers, subordinates employees themselves, users of se:-vice and consultants. Performance appraisal by all these parties is called "360 Performance Appraisal 5) Behaviorally Anchored Rating Scales: Some times this is called behavioral expectation scales, are rating scales whose scales points are determined by statements of effective and ineffective behaviors. They are said to be behaviorally anchored in that the scales represent a range of descriptive statements of behavior varying from the least to the most effective. A rater must indicate which behavior on each scale best describes an employee's perfe.rmance. Behaviorally anchored rating scales (BARS) have the following features: i) Area of peiformance to be evaluated are identified and defined by the people hp will use the scales. 6) Human Resource Accounting Method: Human resources are a valuable asset of any organization. This asset can be valued in terms of money. When competent and well-trained employees leave an organization, the human asset is decreased and vice versa. Human resource accounting deals with cost of and contribution of human resources to the organization. Cost of the employee includes cost of manpower planning, recruitment, selection, induction, placement, training, development, wages and benefits etc. Employee contribution is the money value of employee service which can be measured by labor productivity or value added by human resources. Difference between cost and contribution will reflect the performance of employees

Performance Coaching

Meaning of Performance Coaching Performance coaching involves establishing a collegial partnership between managers and their staff for the purpose of improving performance. Through teaching, mentoring. counseling, and providing feedback, managers inspire and motivate their employees to succeed. Performance coaching is a developmemal process in which all personnel grow and develop, improve their performance, and advance their careers. Performance coaching is a continuous process of equipping individuals with the tools, knowledge, and opportunities they need to develop themselves and to be more effective.

Performance Coaching Process Performance coaching process involves five strategies: 1) Forging a Partnership: Building trust and understanding so that people want to work with you.

2) Inspiring Commitment: Developing insight and motivation so that people focus their energy on goals that matter. 3) Growing Skills: Building new competencies to ensure people know how to do what is required. 4) Promoting Persistence: Developing a "never say die" attitude among managers and employees. 5) Shaping the Environment: Creating conditions that foster growth and development. Purposes of Performance Coaching The performance coaching process improves individual performance, helps people to work through change, assists individual and team problem-solving, and helps individuals, teams, and the organization secure desired results. Purposes of Performance Coaching are as follows: 1) Improving Performance: Improving performance is a five-stage process focused on performance outputs, the results required by the organization. Coaches are intimately involved throughout each stage, constantly assessing, communicating, and providing and receiving feedback 2) Embracing Change: Change is the heart of performance improvement. Improvement cannot and will not occur without change. Understanding the fundamentals of change and human reactions, it enables coaches to leverage their knowledge of the individual and the organization to make change happen. Individuals are inherently resistant to change, a fact not lost on performance coaches. Overcoming resistance and improving performance requires that coaches.

3) Solving Problems: Performance coaching is an effective means to creatively solve problems. Performance coaches employ a variety of problem-solving techniques that challenge others to think "outside the box". One of the most effective approaches to solving problems includes the following steps: i) Identifying the problem, ii) Isolating the root cause of the problem, iii) Generating possible solutions, iv) Analyzing solutions, v) Selecting a viable solution, vi) Implementing the solution, and Vii) Evaluating the solution. Although a common and proven approach, it is important to remember that employees are responsible for integrating the problem-solving process on the job. They must be encouraged to systematically execute each step of the process. Problem-solving thus becomes the responsibility of every individual rather than a technique employed for them. 4) Searching desired Results: Perhaps the most important benefit of the performance coaching process is that it helps the hrm to achieving the results it needs. Desired results may include increased sales revenue, greater productivity, better customer service improved quality and efficiency, or fewer production defects, to name a few. Managers cannot obtain desired results by themselves they rely on their staff. This is where classic management techniques begin to fall apart because directing, organizing, and controlling may not produce positive results. Fortunately, making the transformation from manager to performance coach offers the process necessary for securing desired results through people.

Performance counseling is a key ingredient of performance management because it essentially deals with human feelings. However, a key step missing in today's performance managerrieni is performance counseling. The results of PMS are at best used to decide training needs, and at worse, not followed upon. However, without a discussion or reflection on what the training needs are, or why the employee had these needs, the employee often fails to participate in the rest of the cycle. The root cause for this situation is the inability of managers and FIR professionals to effectively counsel others. Performance Counseling According to William R. Tracy, "performance counseling is a manager-initiated strategy for improving employee's performance". - 200 Steps in Performance Counseling In effective performance counseling, following steps are followed: 1) Rapport between Employee and Counselor: At the initial stage, rapport between the employee and his counselor is developed so that there is open and free communication between them. Rapport betweenake employee and the counSelor can he developed by building trust, mutual respect; and empathy. All Nee -1 result into bringing the employee and the counselor together by heart 2) Exploring Information about Performance: At this stage, the counselor with the help of the emplce-explores about the employee's current performance, his strengths and weaknesses particularly the key AM, I . and his key job requirements. The basic objective is to stimulate the emplcyee to define himself in the light ofjob content and context. 3) To Define Future Goals: Once the employee assesses his strengths and weaknesses, the counselor tries to .., make hint realize what his problems are and to make a realistic assessment of the nature of these prolake. Though there may be some contextual problems, often people tend to attribute theic shorteeming:tb external reasons only. The assessment of the problems in real perspective helps to understand their real cause. Baseci ui l.c understanding of the problems, the counselor helps the employee in setting performance goals More realistically. 4) Drawing Action Plans: The counselor helps the employee to draw action plans that would result they continuous performance improvement. The pros and cons of each action plan are evaluated and weiAtion. and the most appropriate action plan is selected for step-by-step execution with a time table. The execution of action plan is monitored by the employee himself and progress made is shared with the counselor. action plan is reviewed periodically with the help of the counselor to take corrective action, if required.

PERFORMANCE MANAGEMENT FOR TEAMS

According to Stephen P. Robbins, "A work team is a collection of people whose individual efforts result in a level of performance which is greater than the sum of their individual contributions". . Teamwork in Performance Management Teamwork is an activity in which tasks are interdependent and performed by different individuals in a collaborative manner with distinct skills to produce a common goal with performance excellence. In this sense, team is a group of individuals who collaborate with their unique skills to achieve a cemmon goal in the most efficient manner. Operationalization of this definition for teamwork and teams assume the following elements: 1) Tasks are interdependent. 2) Interdependent tasks are performed by different individuals with matching skills. 3) Matching skills are distinctive. 4) Interdependent tasks are performed in a collaborative manner to achieve a common goal. 5) Common goal is achieved in the most efficient manner. Significance of Teamwork in Performance Management Teams possess unstinted capability to enhance performance level and optimize resources. Teams, therefore, have a special place in the practice of performance management. Team-based performance management strategy wields direct influence over the other six performance management strategies because teams are the basic building blocks as well as prime beneficiaries of these strategies. The significance of teams in performance management can be multifold. However, this significance varies from organization to organization depending upon the degree of teamwork required in an organization. The common benefits and significance of teams in the context of performance management to all organizations are described here briefly: 1) Teamwork in the Business: Teamwork is one sure shot and proper method to involve all employees in the business of an organization. In a situation, where performance of an organization in particular and fortunes of business in general are susceptible to the effectiveness of people, there can be hardly any choice but to involve employees in management of the business. It is.equally important that no single or a small portion of individuals or managers be allowed to exert control over the functioning of an organization. History of business performance indicates that performance goes-down when few in the place of all are given Opportunity to run organization. livery employee must be given an opportunity to participate in 'organizational business. Teamwork can ensure this equitable participation and involvement. 2) Implementation of New Ideas: Incubation and implementation of new ideas is central to great performances and consequential organizational successes in today's business environment. More often than not this generation of new ideas involves contribution of insights from more than one individual. This means vibrant exchange of ideas, information, knowiedge and experimentation sharing is a prerequisite. Individuals of a loose group cannot infuse such exchange culture. A well-woven team with a well-defined destiny is must. Teams possess inherent potential to create and implement new ideas through this, formula of exchange. Thesenew ideas infuse iife into performance management. .

3) EnLances Communication Effectiveness: The very nature of teamwork widens communication among all employees and stakeholders in an organizatlnn. Communication is believed to be one of the most decisive factors of performance. management. When allocation, planning, execution, integration and evaluation of assignments are managed in a collective setting, communication rises to the level of real sharing. Several studies prove that lack of communication can create distrust, conflict and dysfunctional effects in the organizational working. Implementing a communication strategy on a standalone format may not yield anticipeted results because communication itself is not an end. Therefore, making people come together can cause communication effectiveness. This togetherness can be achieved through teamwork. 4) Builds Relationships: Effectiveness of performance management practice stands on the salutary scenario-of relationships in an organization. Achieving high performance of employees by building relationships is certainly a gentle practice. Good relationships can happen only when there is equity and a common goal among members of an organization. It is one of the toughest managerial challenges to ensure the said equity and a common destiny. Route to handle this challenge is obviously a team structure. Teamwork can provide equitable opportunities, equitable rewards, equitable disappointments and equitable growah. Teamwork has enormous potential in creating healthy human relations in an organization, which is a significant facilitator of performance management effectiveness. 5) Performs on Multi-Disciplinary Tasks: Emerging work systems are moreof interdependent and multidisciplinary in nature. This requires people with different skills collaborating to produce an outcome/result. Growing technological changes and corresponding complexity in tasks left us with no doubt that a single person can deal with all the processes or tasks independently. Fast developing knowledge base in all fields makes it extremely difficult for a person to work on a macro-level issue independently. People in such an environment tend to choose a micro-level specialization and make progress vertically. However, when it comes to resolving macro-level problem, people with this microlevel expertise need to come together. In brief, expanding knowledge dictates that people be specialists and at the same time solicit an integrated approach to problem-solving. Hence, teams alone can handle multifaceted problems. More the interdisciplinary approach of an organization, higher the performance excellence in innovation. 6) Enhances Quality: Quality of products, services, operations, delivery, etc., are indicators of performance excellence. All quality theories, approaches, philosophies and principles of quality gurus invariably stressi., the importance of teamwork in achieving quality in practice. Quality can never be attained with the effort Our a single individual or a group of individuals in the name of quality assurance function. Quality. consciousness as a matter of value that should be embedded across the organization and internalized in the minds of people. Employees do not hesitate to supplement the efforts of others when they perceive andlor believe that quality is everyone's business. Teams are prime means through which quality agenda can be pushed successfully. 7) Enhances Learning: Teamwork has the potential to enhance learning of people. A good amount of learning happens in socialization process and when people work together on a common tasl- While supplementing, each other's efforts with distinct capabilities, people also pass on that distinct

knowledge tcg. each other. It is well-established fact that colleagues in an organization or classmates in a school are the richest source of great learning. Teamwork formalizes that arrangement for leaming and also encourages the creation of systems for learning. in togetherness. Learning in reality is the other side of the coin ofQ performance management Excellent. perforinance can come from people who are learners and not. from those who are stagnant. 8) Enables Change Adaptation: Engineering a change and transforming an organization through change management is often a herculean task because most of the organizations comprise of individuals and departments rather than a well-cohesive force. There can be splinter groups and individuals conflicting cad-C. other. Implementing a change program is much easier and success rate is much higher in any organization' where teamwork and teams exist, Teamwork imparts employees to consider rationality, overall objective and creates trust and openness. These characteristics. are fundamental to launching a change managemenc program. Actual performance of employees and organizations is determined by their capability to accept change us natural. 9) Reiifforces Streng,ths and Relieves Weakness: TearnWOrk. provides abundant:opPOrtunties for people to manifest, sharpen and fully utilize .4teir strengths, and suppons endeavors to overcome weaknesses. Excellence in performance is .sitn.ply-Contingenti:ptin this priu,iple. Fai:example, an individual withC communication abilities can be::Anilized.:foi-.*rifify.'Of internal and external p:irposes of an organization,r' thereby exposing him/her.to a variety of situations. 10) Less Input More Output (Doing Mote with Less): Ultimate goal of any organization is to achieve morc output with less input because competitive edge comes from that. Teamwork can make breakthrough achievements through collaboration of-efforts. Success of performance management is measured by this principle of doing more with less, achieVement of which is feasible only through teams. Though teamwork offers valuable contribution, realizing effective teams is easier said than done. Teamwork isdpb, fraught with many challenges. For example, in the forming phase of teams, organizations must be willing td.W. allow more time, show perseverance and be tolerant to inter and intra-group conflicts, low productivity and low focus. Also team leadership can be a major issue. Managers must be very realistic about all these challenges". because introducing team structure. in the place of mechanistic organizational structures, atleast in the beginning, can create fonnidable challenges. However, once the initial problems are handled successfully, teams can certainly create performance excellence 7.5.4. Team-based Performance Management Strategy, Interventions & Drivers 0., Strategy of team-based performance management comprises two interventions. These are: 1) Nurturing Team-based Performance Management: Objective of this intervention is to create, build, nurture and strengthen teamwork jean organization to attain performance excellence. This intervention is took he evolved and implemented with The help of 10 drivers. Forthcoming contents reveal the structure, content%...- and purpose of these drivers in a detailed-fashion; 2) Capitalizing on Teamwork in Institutionalizing Performance Management: The second intervention isCk drawn on the idea of capitalizing teamwork to institutionalize performance management in organizations. liere also like earlier, 10 drivers ilerform the inStrumental role in catapulting the teamwork into realizing . the institutionalization interventionAteceSsfully..

D- 206 Thakur's MBA Second Semester FIB (Human Resource Management) BU 7.5.4.1. Nurturing Team-based Performance Management The objective of this intervention is to introduce and grow the teamwork structure in organizations to enhance performance of people for their own and for organization's benefit. This intervention is deployed through the initiation of 10 drivers. These 10 drivers as described ahead enable the organization to effectively adopt teamwork and derive unparalleled benefits. Evaluating Team Work Aligning Processes Nurturing Team-based Performance Management Aligning HR System Developing Team Leadership Coaching Teams Implementing Team Work Creating Smong Teams and teamwork Setting Objectives Forming Team -Structure Defining Team Goals and Roles Figure 7.11: Drivers of the Intervention Nurturing Team-based Performance Management Driver 1: Setting Teamwork Objectives The primary driver in the journey of nurturing teamwork is meant to make organizations aware and question their own intention of introducing teamwork. This inquisition leads them to set realistic objectives and make rational expectations about teamwork. It may also happen that organizations can rightfully withdraw themselves from falling into the trap of teamwork if this work structure is incompatible to their organizational mission and work values. Inquiry, diagnosis and setting of objectives must be done in a systematic manner using relevant parameters. Following list of actions is indicative of the process: 1) Step 1: Why Teamwork 2) Step 2: Question Organizational Commitment 3) Step 3: Check Organizational Conditions 4) Step 4: State Expectations 5) Step 5: Set Objectives of Teamwork Step 1: Why Teamwork: First concern that should be addressed is why teamwork? What benefits are expected as compared to the present pattern of work performance and at what cost? How organization and its people are anticipated to suffer if teamwork is not cultivated in the organization. What motivated the organization or a few people in the orga.hization to propose the idea of teamwork and how valid is the rationality they offer? Most importantly, what can be the contribution of teamwork in improving bottom-line of the organization? 4 Following indicators may give reasons for preference to teamwork: 1) Business: Reasons can be found within the business plans. Present and future business plans may seek a. work structure that is team-

based. For example, plans to develop and launch a new product may require \V people from multiple disciplines to perform together. Performance Management & Appraisal (Module 7) D - 207 2) Technology/Operations: Change in technology may demand change in work patterns. New technology implementation most of the times involves interdependence of tasks which can be handled by a team only and not by a single individual or a mere collection of individuals. 3) Productivity: Organizations are also attracted to the idea of teamwork because experiences of similar companies show positive gains. There is ample evidence proving that teamwork increases performance of human resource, which contributes to the increase in productivity. 4) Processes: Continuous improvement, quality measures, just-in-time inventory process, cost reduction measures can be implemented to obtain greater results if teamwork is adopted. A number of organizations are attmcted to the idea of teamwork because of these process reasons. 5) Innovation: Experiences of some organizations also point-out that an organization's innovative capability - depends upon the coilaborative effort of employees. The best way to achieve this collaboration is to systematically pursue the teamwork concept. An organization intending to introduce teamwork must also verify whether it is seeking teamwork for increasing rate 01 innovation. 6) Customer Satisfaction: Organizations, particularly in service sector, which interface with customers day in and day out, can be enormously benefited with teamwork. All high-performing service organizations implement teamwork in one form or the other. It may be worth the effort to scrutinize reasons for preference to teamwork in the light of this fact. 7) Employee Satisfaction: Other important reason why organizations prefer teamwork is to gain employee satisfaction. Teamwork has an unlimited potential in providing abundant opportunities to people to fulfill their various motivational needs which in turn leads to improved employee satisfaction. Step 2: Question Organizational Commitment: Though organizations want to implement teamwork, commitment for actual implementation may not be absolute. This occurs due to two reasons: 1) Organizatioits may not be sure of the results teamwork can yield. This unsure attitude of results dilutes commitment to put in required efforts. Objectively speaking, any effort can be successful only when initiators carry complete faith in results. A skeptical attitude reflects in the efforts in a subtle manner. This phenomenon is a potential deterrent, especially because teamwork will not produce any magnificent results in the initial stage. This initial stage may last for atleast two years. People who are unsure tend to abandon effort midway due to absence of magnificent results. Effort, which is likely to be left midway, adds more confusion and creates dysfunctional effects in the organization. Therefore, organizations must question this aspect before launching teamwork. 2) Organizations hurry-up to implement teamwork without making requisite preparations. They hurry-up because they see teamwork as one more management technique that should be implemented to gain image of a high profile organization. This attitude makes organizations initiate teamwork without understanding what it is. When the awareness is inadequate on the part of management, commitment also becomes inadequate. Organizations must question their commitment before thinking of teamwork implementation. This inquisitiveness about organizational commitment helps in setting realistic objectives for teamwork. Step 3: Check Organizational Conditions: In order to set objectives, one more step that should be followed is to verify compatibility of the organizational conditions with the proposed teamwork strategy. Compatibility may differ from organization to organization. If compatibility is low, one of the teamwork

objectives must be to create compatible conditions in organizations. Real effectiveness of teamwork comes front an integrated effort such as teamwork effort supplemented by associated system. For example, an individualistic compensation system is incompatible with teamwork initiative, whereas a compensation system that accommodates team compensation is a compatible system. Step 4: State Expectations: Organizations must analyze and state clearly their expectations from the strategy of teamwork. In this process, reasons discussed at step 1 serve as the basis. Once expectations are well-defined, setting objectives becomes easier, methodical, realistic and also rational. Expectations must be realistic, achievable and also evolutionary. The logic is that results accrue to organizations in a phased manner; small gains in immediate future, medium and big gains in the long-term. Set Objectives of Teamwork: The first driver of nurturing teamwork intervention is setting objectives of teamwork. The objectives should be drawn on consideration of all steps. Statement of objectives should be very clear, implement and also measurable. This objective statement must be set in a manner that guides the teamwork strategy from beginning to end. Objective statement is not only like a road map, but also a patent document akin to constitutional document. It needs to be kept in mind that Clearer the objectives statement easier is the execution. The statement is ambiguous, greater with be the difficulty in implementation. Essence of this driver is encouraging organizations to develop a simple, clear and realistic statement of teamwork objectives. Driver Forming Team Structure: The second crucial driver in the intervention of nurturing team-basea performance management is to design and adopt a team-based organizational structure. : 1) Step 1: Build Proposed Organizational Structure 2) Step 2: Study Existing Ofganizational Structure 3) Step 3: Assess Changes Required 4) Step 4: Refining Proposed Team Structure and Drafting Strategy for Implementation 5) Step 5: Implementing Team Structure Step