PERFORMANCE MANAGEMENT

o An essential tool of management o An important function of HRM o A fair merit based system pays huge dividends

GOALS OF PERFORMANCE MANAGEMENT

o o o o o o Consul & guide Identify development plans Judge Reward Focused communication Documentation

It identifies the talent bench of the organization.

PERFORMANCE MANAGEMENT LINKAGES

o Training & development plans o Salary awards o Corporate business objectives

PM - HOW BEST DONE

o Ensure the organization understands how the PM system works o Involve the employee o Involve at least two levels of supervision o Seek inputs of other stake holders or incorporate multiple assessment o Faithful & timely execution o Disclosure to employee with room to record dissent

ROLE OF HUMAN RESOURCES DEPARTMENT

o Designer - of the system best suited to the Co o Facilitator - help & assist line functions o Monitor - ensure it happens on time o Consistency - ensure guidelines are uniformly followed o Maintain records

ROLE OF LINE MANAGERS

o A principal responsibility o Know how the system works o Should be trained in how to conduct appraisals o Must own the process and the outcome

PM - PROCESS OUTLINE
o Agree on work plan at start of period - work plan should link up with key corporate objectives - Best developed jointly with employee o Work plan should be carefully articulate - it should be steward-able - periodically reviewed to reflect changes

PM - PROCESS OUTLINE (CONTINUED)

o Business results achieved at period end should be quantified / clearly stated. - important to note if results were achieved consistent with company values o Recording of results can be undertaken jointly. Supervisors to make final call -There should be room to record differing views o Strengths, areas for improvement and training / development plans should be noted

PM - PROCESS OUTLINE (CONTINUED)

o Force rank the employees using multiple assessment techniques o Apply the bell curve if employee group size is reasonable and the group homogeneous o The segments under the curve could be 3 to 5 o Flexibility in shape of bell curve may be permissible . Minimum spread could be specified.

PM - PROCESS OUTLINE (CONTINUED)

o Outcome of the forced ranking system should be conveyed to the employee o The supervisor should record and convey how the rating was received by employee o HR should use the PM information to assist supervisor in determining the merit increment

RELATIVE RANKING VS ABSOLUTE RANKING o The conventional way to PM has been Absolute Ranking o Relative Ranking or force ranking is becoming more prevalent o Pitfalls of absolute ranking - low or too high targets, lenient assessment, consistency in judgment etc o Pitfalls of Forced Ranking - may deter team work , breed insecurity.etc o Relative Ranking is being used very effectively by many a notable corporation

BELL CURVE
Bell Curve is used to segment force ranked employees. It is based on the principle that bulk of the employees in a and reasonable sized group have fairly similar performance levels whereas a small segment performs well above or well below the median group.

360 DEGREE APPRAISAL

o A relatively new concept. o Appraisal by peers helpful in improving team work o Appraisal by subordinates helpful in development of subordinates o Requires a degree of organizational maturity for effective use o Not so common in Pakistan

GENERAL TIPS / GUIDELINES RELATED TO PERF., APPRAISALS

o Supervisors and often employees are reluctant to undergo performance appraisals o Honesty & frankness with tact are essential to serve purpose o Should be mindful that " face " in our culture is important o Be mindful of halo effects, job level differentiation when comparing.

GENERAL TIPS / GUIDELINES RELATED TO PERF., APPRAISALS

o Remember having some PM system is better than no system at all. A well done performance appraisal can be the difference between a leader and a boss.