PERFORMANCE MANAGEMENT

SYSTEMS
Performance Management Systems
Managing Performance is a year round process. An iterative
process of observation and communication to support, retain
and develop employees for organizational success.
 What Performance Management Is
Not:

• it’s not just an annual performance appraisal

• it’s not imposing targets/goals on an
employee by his supervisor
• it’s not only evaluating individual job
performance
 What is Performance Management:

• it’s about setting SMARTER goals

• it’s about planning to perform
• it’s about periodically reviewing progress in performance
• it’s about evaluating performance for further
improvement
• it’s about delivering reinforcement for performance
success and performance failure
 PMS is about……
• Goal Setting
• Coaching
• Rewarding
• Disciplinary Action
• Performance Appraisal
• Documenting performance
 GENERAL PERCEPTION ABOUT PMS
AND REALITY

GENERAL BELIEF : REALITY :

Linked only to pay and It is a constructive activity which
rewards. leads to personal growth.
It is only an evaluation of the It is review of the past for better
past. results in future.
They are remote from facts. It is based on objective evidence.
It’s a necessary must for the Its an opportunity given by
organization. organization.
 What is the Performance
Management Process/Cycle”:

The Performance Management Process begin

and ends in the same cycle of events which
are as follows:
•Individual goal setting
•Performance planning
•Mid year performance review
•Annual performance appraisal
 Individual Goal Setting
• Host a goal setting session between the supervisor
and the employee
• List down the major goals to be achieved in a year
in line with functional objectives
• Review goals to assess the feasibility of their
accomplishments; make sure the goals are
SMARTER- Specific, Measurable, Actionable,
Realistic, Time-framed, Extended & Rewarding
• Finalize goals for a year
 Performance Planning

• plan on ways to achieve Goals

• identify the possible barriers to achieving
them
• plan on ways to overcome those barriers
Mid Year Performance Review
• host a performance review session between
the supervisor and the employee
• discuss on performance progress status and
seek accountability for missing deadlines on
goals
• revise performance plan (if needed) with
new deadlines for goals
 Performance Appraisal
• host a performance appraisal session between the
supervisor and the employee
• measure performance as against preset goals
• measure competencies as against required competencies
set for current role
• measure potentials as against required competencies set for
future role
• chalk out Individual Development Plan outlining to fill
skill gap, motivation & aspiration gap and communication
& cooperation gap
• chalk out Reinforcement plan to reward/recognize for
success and punish for deliberate failure
 Performance Appraisal?
Performance Appraisal is an objective assessment of
an individual’s performance against well defined
benchmarks like Job Knowledge, quality & quantity
of output, initiative, leadership, dependability and so
on……..
 The Old & The New
Old System Job Chat
• Manager writes
opinions
• Manager works thru
• Based on the most out the year
recent event
• Is based on a series
• Is opinionated of actions
• Managers are • Is more objective
uncomfortable to
judge • Focused on
development
• Delays in process
An Important Management Tool For
The Organization
 Communicates organization & department goals
 Builds stronger working relationships
 Improves productivity
 Supports HR decisions: promotions, raises, etc.
 Assures HR decisions are based on objective
criteria
 Identifies poor/marginal performers
An Important Management Tool For
The ‘Manager
Demonstrates your management skill

Improves rapport and builds morale

Identifies the employee’s general training

needs

Improves the employee’s productivity

An Important Management Tool For
The Employee
 Recognizes the employee’s accomplishments
 Helps the employee to set goals and improve
performance
 Employees have a chance to communicate their
career goals & ask about opportunities for career
development
 Employees become aware of needed improvement
 Assures them that appraisals are fair
 Use The SMARRT Criteria For
Setting Goals
• Specific: so the employee knows
exactly what is expected
• Measurable: so the employee knows
when the goal is achieved
• Achievable: accomplished with effort
and/or skill
• Realistic: doable within reason

• Time bound: identify deadlines

»
 SMART GOALS

• Specific: A goal is a well-defined target that gives you clarity,

direction, motivation and focus towards what you want.Your goal
statement needs to reflect this. The goal needs to be significant
enough to inspire you to move toward the life that you want. It will be
either towards something you want or away from something you don't
want.
• Measurable: It is easier to track progress against a goal if it is
measurable. Some goals of course are easy to measure - weight loss,
running speed, income. Others are difficult to measure as there are no
apparent quantities that define it. In these cases, you'll need to develop
some kind of ranking system, or measure time spent on the goal.
Measuring your goals helps you determine if you are going in the right
direction and make any necessary adjustments along the way.
 SMART GOALS
• Achievable: You will need to develop a strategy for how you are going
to achieve your goal. You don't need to know all the details at first, just
start with a general plan. Focus on actions you can take that are in your
direct control
• Reasoned and Realistic: Goals need to be relevant to you and to your
life. They need to be meaningful and significant, in order to make a
difference in your life. Remind yourself why you want to achieve this
goal.
• Goals also need to be realistic, in that the actions you need to take to
achieve your goal are things that you can actually do and control.

• Time-bound: For goals that have a measurable finish ending (eg weight
loss goal), it is important to set a deadline. Goals without deadlines lend
themselves to being put off until another day - we've all done it "I'll start
my diet tomorrow". Action items also need to have deadlines to keep
momentum up
 SMARTER GOALS
• Ethical, enjoyable and exciting: Goals need to be something
you are excited about and are going to either enjoy doing or
enjoy the outcome. If goals don't meet these criteria, you
probably won't do them. And of course, make sure your goals
are ethical.
• Resourced: You will need to commit some resources to
achieving your goals - this may be time, money, external
support, information resources, etc. You may even have to
make some sacrifices to achieve your goals, but if your goal
is truly what you want to achieve, then a few personal
sacrifices shouldn't deter you. No pain, no gain!
When you've documented your SMART goal, read it through -
and commit yourself to your goals!
 APPRAISAL SYSTEM

 Self Appraisal
 Initial discussion between the appraiser and
the reviewer.
 Discussion between the appraiser and
appraisee and rating to be given with due
consideration to the Attributes.
 Assessment of employees performance by
reviewing authority.
 Final comments on the appraisal by the
appraising authority.
Latest Appraisal Technique

360 degree appraisals

 APPRAISAL MEETING

A) STEPS IN SETTING UP THE MEETING.

 State purpose of the meeting Clearly.

 Communication should be clear and not
ambiguous.
 Date, time and place to be decided in advance.
 Sufficient time should be kept between two
appraisal meetings.
 APPRAISAL MEETING

B) PREPARATION FOR THE MEETING

 Collection of the facts and necessary

data.

 Plan the points to be discussed.

 Be prepared with inputs for a

constructive appraisal meeting.
 LOCATION OF THE MEETING

 WHERE  WHERE NOT

 It should preferably  At the Manager’s

be at a neutral place desk.
with no physical  At the Appraisee’s
barriers like the desk.
conference room.
 LANGUAGE

 Establish contact  Don’t Invade

 (say hello,  Don’t be threatening in
handshake) giving a critical
 Ask open questions. feedback
 Seek to reach an  Avoid closed questions
agreements.  Avoid reaching
 Be more elaborate in confrontation.
communication
Activity : Role Play of Appraising a Poor
Performance.
APPRAISING THE POOR PERFORMANCE
A DEADLOCK

Grossly avoided because

1. Makes the manager unpopular.

1. May de-motivate the appraisee.

APPRAISING POOR PERFORMANCE MADE
EASY
1. Be clear in thoughts and actions : “Appraise the
Performance not the performer.”
2. Describe clearly the expected level of performance.
3. Ask the Appraisee’s opinion about the expected
performance and the actual.
4. Reach a consensus in identifying gap between the actual
performance and the expected level.
5. Reach a agreement on improving the performance.
6. Follow – up : A Systematic follow up is required to
ensure whether the agreed points are being met.
7. Taking timely review of the performance is crucial.
 MANAGING DIFFERENT TYPES OF
EMPLOYEES

 CHARACTERISTICS :  THE MANAGER SHOULD :

DEFIANT
 Avoid conflict
 Rebellious  Seek acceptance with
 No initiative warmth.
 Non team performance  Develop two way
communication.
 MANAGING DIFFERENT TYPES OF
EMPLOYEES

 CHARACTERISTICS :  THE MANAGER SHOULD :

UNDER ACHIEVER  Show empathy not sympathy.

 Exercise control over the initial
 Excessive dependence period of performance.
 Needs supervision  Give advise not instruction.
 Lacks initiative  Set realistic goals and help in
preparing a action plan
 DEALING WITH DIFFERENT TYPES OF
EMPLOYEES
 CHARACTERISTICS :
ASSERTIVE:
 Wants to control
 Likes doing things his way.
 THE MANAGER SHOULD :
 Encourage high performance
and grant recognition.
 Share objective with him/her
and seek his/her commitment.
 Delegation of work should be
done carefully and team work
should be encouraged.
THANK YOU