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Managing

Employee
Performance
Learning Objectives

 Why companies manage employee


performance.
 Stages in Performance Management
Cycle.
 Identify the Performance Conversations.
Recap Previous Lessons

• Strategic Planning Process


• Goal Setting Theory
• Expectancy Theory
• Plan-Do-Check-Act Cycle
Strategic Planning Model

Where we are Where we want to be How we will do it How are we doing

Assessment Baseline Components Down to Specifics Evaluate

• Environmental Scan • Situation – Past, • Mission & Vision • Performance • Performance


Present and Future Measurement Management
• Background • Significant Issues • Values / Guiding • Targets / Standards of • Review Progress
Information Principles Performance

• Situational Analysis • Align / Fit with • Major Goals • Initiatives and • Take Corrective
Capabilities Projects Actions
• SWOT – Strength’s, • Gaps • Specific Objectives • Action Plans • Feedback upstream –
Weaknesses, revise plans
Opportunities,
Threats
• TOWS
HOW JOB GOALS ARE LINK TO ORGANIZATION’S MISSION &
GOALS
ORGANIZATION’S PRIORITIES
(Mission & Key Corporate Goals)

ORGANIZATION ’S ANNUAL STRATEGIC PLAN

BUDGET ALLOCATIONS

DEPARTMENT’S OPERATIONAL PLAN AND ANNUAL BUDGET


(Department’s Goals for a given Financial Year)

UNIT PLANS
(How each unit within the Department will contribute to the implementation of the annual plan)

INDIVIDUAL WORK PLAN OBJECTIVES OR KEY TASKS


(What each individual is expected to contribute towards the achievement of objectives)
(Includes performance measures/indicators/targets that indicate task completion/success)
change in priorities/budget allocation will lead to revision of the operational and individual work
plans
Goal Setting Theory

Goals can be an invaluable tool if Coaching


Feedback
– Achieving organizational goals
results in desired outcomes for
the employee Commitment Individual Development Plan

– Achieving employees’ goals


results in desired outcomes for Resources Performance Improvement Plan
the organization

Challenging Motivation and


And Specific Goals Task Performance
Expectancy Theory
• Motivation is fostered when the employee
believes three things:
– That effort will result in performance
• This is termed “Expectancy”
– That performance will result in outcomes
• This is termed “Instrumentality”
– That those outcomes will be valuable
• This is termed “Valence”
Performance Improvement
Model
Act: Plan:
•What changes •What do we
want to change?
need to be made? •Who will carry out
•Do we adapt, the cycle?
adopt, abandon? •Plan for data collection
•What is next…..
plan!

Check: Do:
•What did we learn? •Carry out the plan
•Did the results •Collect, record,
support our analyze data
change? •Document problems
•Summarize lessons
learned

The Plan-Do-Check-Act cycle was developed by W. Edwards Deming


Let’s Start on
Today’s Lesson
Research Base for Performance
Management
Researchers found that companies with strong
performance management system in place:
• Show increased profitability.
• Reduced attrition.
• Higher levels of engagement.
• Receive higher satisfaction ratings from customer surveys.
Performance management
Definition:
Employee performance management is the process of
involving employees in accomplishing your agency’s
mission and goals.

Employee performance management includes: planning


work and setting goals, monitoring performance,
developing capacity, reviewing performance, and
rewarding good work.

© 2005
Mary I. Voelker
Basic Elements of the PMS
Basic Elements of the Employee
Performance Management Cycle

Apply Apply Goal


Expectancy Setting
Theory Theory
Link to Rewards &
Link to Training &
Recognition; Potential
Development (Individual
Appraisal; Career &
Development Plan);
Succession Planning
Coaching Log and
Performance Improvement
Plan
PMC Calendar

Reward
Recognition

Planning Monitoring & Evaluation (Review/


Developing Performance Appraisal)
Planning
Supervisor Employee
•Review Job Description •Participates in setting job
•Set expectations, job objectives and ways to
objectives, and ways to measure accomplishments.
measure accomplishments.
•Assesses his or her
•Communicate appropriate developmental needs and
work behavior. communicates them to the
supervisor.
•Determine developmental
needs.
Monitoring
Supervisor Employee
•Document observed employee •Performs to expectations set in
accomplishments. the Plan phase.

•Give feedback, engage in •Solicits


feedback. Advises
ongoing meaningful dialogue, and supervisor of performance
conduct interim review(s) such as obstacles.
quarterly or mid year reviews.
•Activelyparticipates in interim
review(s).
Developing
Supervisor Employee

•Work to improve employee •Continuesto identify development


performance through training, needs and opportunities.
mentoring, and coaching.
•Participates in developmental
•Determine if employees have all activities.
appropriate tools to do their jobs
and address shortfalls. •Focuses on developing skills and
abilities.
Performance Conversations
Conversation 1 Recommended

Performance Plan End-of-Cycle Review


•Establishperformance •Review employee self-
expectations assessment
•Align employee objectives with •Gather data for written appraisal
organizational goals

Conversation 2 Conversation 3

Interim Review Annual Appraisal


•Quarterly or Mid-Term •Review
written appraisal
•Check progress •Communicate rating of record
•Provide feedback
•Make course corrections
Importance of Performance
Conversations

Beh
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Senior
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rs a
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es

– Strategic

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Plan

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ob

Middle Management

ons
n
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Supervisors/Professionals
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Org

Employees
Next Lesson

•Parts of Performance
Appraisal Form
•SMART Goals
•Performance
Standards
•Competencies
•Talent Management
Matrix
Q uestions?

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