Performance Management and Reporting

Master of Accounting
Siska Tifany K, 2001904992

MODEL PERFORMANCE MANAGEMENT PROCESS

Dear All,
Please read chapter related to Performance Management Process then answer the following
questions:
1. Describe what is the process of Performance Management in the company.
2. What things that must be aware of, in the performance management Process.
3. The first step in the performance management process is leaders set organization goal.
Explain this statement.
4. Second step is managers and employees set objectives and discuss behavioural
expectation. Why managers and employees should discuss behavioural expectation.
5. How important the eight steps in the Performance Management Process to the Performance
Management Implementation?
Your answer should be posted at 13 May at the latest by replying this.
Cheers,

Toto R

ANSWER

1. The Performance Management Process /Cycle

The performance management process or cycle is a series of five key steps. These steps
are imperative, regardless of how often you review employee performance.

1. Planning
This stage entails setting employees' goals and communicating these goals with them.
While these goals should be disclosed in the job description to attract quality
candidates, they should be communicated once again when the candidate becomes a
new hire. Depending on the performance management process in your organization,
you may want to assign a percentage to each of these goals to be able to evaluate their
achievement.
2. Monitoring
In this phase, managers are required to monitor the employees’ performance on the
goal. This is where continuous performance management comes into the picture. With
the right performance management software, you can track your team’s performance in
real-time and modify and correct course whenever required.
3. Developing
This phase includes using the data obtained during the monitoring phase to improve the
performance of employees. It may require suggesting refresher courses, providing an
 assignment that helps them improve their knowledge and performance on the job, or
altering the course of employee development to enhance performance or sustain
excellence.
4. Rating
Each employee’s performance must be rated periodically and then at the time of the
performance appraisal. Ratings are essential to identify the state of employee
performance and implement changes accordingly. Both peers and managers can
provide these ratings for 360-degree feedback.
5. Rewarding
Recognizing and rewarding good performance is essential to the performance
management process, as well as an important part of employee engagement. You can
do this with a simple thank you, social recognition, or a full-scale employee rewards
program that regularly recognizes and rewards excellent performance in the
organization.

2. The things that must be aware of, in the performance management process is by
knowing:
1. What does your workforce want from performance management?
A performance management program can either help or hinder your workforce.
However, before you can make any practical changes to your current processes and
tools, you need to understand what isn’t working and why. You also need to take the
time to evaluate what your employees want out of a performance management program.
During this evaluation, there's nothing more important than talking to your people.
Your employees and managers likely have some strong opinions that they'll be more
than happy to share with you. You might be surprised how many of them crave an
improved process.
The next step is to convey your findings to decision-makers who can sponsor and drive
change in your organization. Share your internal findings as well as evidence-based
research from experts that show the impact that an improved performance process can
have on business results.

2. Do you deliver continuous performance management?

Employers want their employees to be happy. But happiness isn’t necessarily what
people want from their employers. Instead, employees want to feel motivated and
understand that their work matters and why. A performance management experience
that delivers value to employees should focus on increasing motivation.
To drive motivation, a performance management process must include frequent,
ongoing conversations between employees and managers so that goals, progress, and
personal achievement remain relevant and top-of-mind.
 The content of these conversations is just as relevant as their frequency. Motivation is
tied to a future-focused outlook focused on developmental opportunities. Managers
must authentically engage with employees about their career success, goal
achievement, and alignment of their work to the organization's top priorities.
To be successful, these frequent conversations should be “lightweight” and include
future-oriented questions for employees such as: What motivates you? What's helping
you? What do you need? And HR can support this by coaching managers in giving
more productive, proactive feedback, as well as asking the right questions.

3. Do managers have the tools to manage the performance management process?

Managers are critical to the success of your organization's performance management
program. They play an outsized role in motivating, engaging, and developing staff. This
makes it essential to ensure managers are trained to give and receive useful feedback
and are coached in the elements of a continuous process.
Take time to meet with managers and train them on your talent management practices
so that everyone feels comfortable having frequent, lightweight conversations.
Finally, having the right technology in place to support continuous performance
management is essential. You need HR technology explicitly designed to help
managers and the organization in a continuous process.

3. HR and management need to define the job itself, including a comprehensive

description, long and short-term goals, identify key objectives and develop a clear
metric for how those objectives and goals will be assessed.
Goals should be clear, done in the SMART format (specific, measurable, attainable,
relevant, time-based) and clear performance standards should be set.

Once management has completed the defining stage, employees should have the
opportunity to give input on this material. They are the one doing their job and will
have a key insight into what skills, competencies and goals will best assist the company
to achieve organizational goals.

Management and employees both agree to the definition of the role, goals and
objectives.

By making this first step of the performance management process collaborative,

management sets the stage for the process as a whole to be collaborative, and the
employee feels that they are involved in goal setting - an important thing, as evidenced
by the Gallup study.
4. To perform well, employees need to know what is expected of them. The starting point
is an up-to-date job description that describes the essential functions, tasks, and
responsibilities of the job. It also outlines the general areas of knowledge and skills
required of the employee an employee to be successful in the job.
Performance expectations go beyond the job description. When you think about high
quality on-the-job performance, you are really thinking about a range of expected job
outcomes, such as:

 What goods and services should the job produce?

 What impact should the work have on the organization?
 How do you expect the employee to act with clients, colleagues, and supervisors?
 What are the organizational values the employee must demonstrate?
 What are the processes, methods, or means the employee is expected to use?

In discussing performance expectations an employee should understand why the job

exists, where it fits in the organization, and how the job's responsibilities link to
organization and department objectives. The range of performance expectations can be
broad but can generally be broken into two categories:

 Results (The goods and services produced by an employee often measured

by objectives or standards)
 Actions & Behaviors (The methods and means used to make a product and the
behaviors and values demonstrated during the process. Actions and Behaviors can
be measured through performance dimensions.)

Performance expectations serve as a foundation for communicating about performance

throughout the year. They also serve as the basis for reviewing employee performance.
When you and an employee set clear expectations about the results that must be
achieved and the methods or approaches needed to achieve them, you establish a path
for success.

5. The importance of Performance Management Process to the Performance Management

Implementation:
 Encourages Employee Reward and Recognition
 Helps to Boost Employee Engagement and Productivity
 Helps to Create Employee Development Strategies
 Allows for the Exchange of Feedback
 Creates Clarification Concerning SMART Goals