Master of Business Administration-MBA Semester 4MU0016 Performance Management an d AppraisalAssignment Set- 1 Q.1 Discuss the aims of performance management?

? Ans:One of the important objectives of performance management is identifying the str engths and weaknessesof employees and finding ways to overcome their shortcoming s. This is done by evaluating employeeoutput and the companys overall ability to meet the goals by having quarterly or annual audits. Often,after an evaluation, there will be widespread company meetings where managers and employees discussco ncerns and solutions to problems.Another objective is to discover where employee s and the company are falling short. This is done bygoing through details such a s profits earned, new clients acquired and the contribution of employees tomake these things happen. Employees whose contribution are minimal or not up to the m ark arecounselled on how to improve performance.The evaluation of an employees pe rformance is based on their work output and the amount of timespent by them on t he project. Although time spent in an office is not an accurate way of measuring performance, most companies still have the notion that better employees put in longer hours of work. A better way of measuring employee productivity would be t o measure the output of work and theaccuracy of work completed.Overall evaluatio n of a company and its ability to set and reach goals is another important objec tive of performance management. Increasing revenue is the overall goal of any c ompany. Other goals may be toacquire more or specific clients, develop new produ cts or hire new talent. It is very easy to determinewhich of these goals have be en met, because these are things that can be seen or calculated.The inability of a company to meet the goals is mainly due to poor leadership, poor planning, po or implementation or poor employee performance. Economic factors also play a maj or role, but it is better for companies to concentrate on factors that are withi n their control. The best way of improving acompanys overall output is motivating the employees and improving their performance.To identify and remedy situations that hinder company performance is another important objective of performance management. This includes replacing underperforming employees, gaining new clien ts,developing new strategies for reaching the goals and discussing strategies th at have worked in the past.In order to meet the objectives of performance manage ment and improve the overall performance of acompany, every employee must work w ith the team members to develop new techniques and implementchanges.The aims of performance management can be summarised into the following points.The aims of p erformance management are: To assist in the achievement of enhanced standards of work performance of an emp loyee or class of employees. To assist employees to identify the knowledge and sk ills to perform their jobs efficiently. To ensure that the employees work towards the defined goals. To ensure that the employees receive regular feedback on perf ormance. To assist the employees to achieve personal growth through acquiring rel evant knowledge and skillsand attitudes. To evaluate the company and its ability to set and reach goals. To identify and remedy situations that are hindering comp any performance.. Q.2 Describe the process of defining expectation? Ans:Performance management is basically about managing expectations. Expectations ar e defined andagreed in the form of role profiles. The role profiles define what is required in each major aspect of therole. Expectations are also defined as sh ort or medium term targets, the extension of knowledge andskills, upholding the core values of the organisation and meeting behavioural requirements. All thesec an be loosely referred to as objectives, which are more than simply output targe ts, as is often assumed. The Process of defining expectations Expectations should be defined based on a role profile which sets out the overal l purpose of the role andthe key result areas it contains. Role profiles include an organisations competency framework thatdefines the knowledge and skills requi red to achieve the role objectives and any particular behaviouralrequirements.Ro le profiles define the overall purpose of the role, its reporting relationships

and key result areas. Theymay also include a list of the competencies required. The competencies may be technical competenciesand any specific behavioural compe tencies attached to the role. The behavioural competencies areselected from the organisations competency framework and modified as required to fit the demandsmad e on role holders.The process starts at the performance planning stage. An exist ing role profile is reviewed and changesare made if necessary, or a new role pro file is created. In each of the key result areas, the ongoing roleexpectations a nd any specific targets or tasks, behavioural changes or improvement or training requirements related to those areas are discussed and agreed upon.For example, i f the objective of an organisation is to improve customer satisfaction by respon ding tocustomer queries and complaints promptly, efficiently and politely, and t he quantifiable targets are torespond to 90 per cent of queries in one working d ay, then these expectations would call for a discussion on how the individual co uld contribute to upholding a core value for customer service. The results of th is discussion could be: Agreement on any changes in behaviour required and how th ey can be achieved. Identification of further training. Agreement on how performan ce improvement in this area could be measured and assessed.Measuring and assessi ng performance improvement is a difficult part of the process and it is necessar yto agree either quantifiable performance measures or any other type of evidence that can be madeavailable to appreciate a job well done. Table 2.1 shows the ro le profile

Role Profile POSITION TITLECHIEF FINANCIAL OFFICER MAIN PURPOSEOF ROLETo lead and direct the financial services of ABC. This includ es the provision of support services to all departments consisting of financial and managementaccounting, accounts payable, budgeting, data processing and risk management.KEYPERFORMANCEAREAS Lead, direct and manage the financial accounting f unction for ABC. Budgeting and cost control. Lead, direct and manage the managemen t accounting function for ABC. Annual financial reporting. Relevant partiesTECHNIC ALKNOWLEDGE/COMPETENCIES In-depth knowledge of finance as a discipline. In-depth k nowledge of accounting within a government entity. In-depth knowledge of financia l procedures and processes. In-depth knowledge of procurement as a discipline. Bus iness plan interpretation. Corporate governance policies and procedures.BEHAVIOUR ALCOMPETENCIES Leadership. Attention to detail