Unit 1

Introduction to Performance Management

Performance Management
An iterative process of goal-setting, communication, observation and evaluation to support, retain and develop exceptional employees for organizational success.

Set Goals

Communicate

Evaluate

Observe

The meaning of performance

Performance is often defined simply in output terms the achievement of quantified objectives. But performance is a matter not only of what people achieve but how they achieve it. The Oxford English Dictionary in its definition of performance: The accomplishment, execution, carrying out, working out of anything ordered or undertaken. High performance results from appropriate behaviour, especially discretionary behaviour, and the effective use of the required knowledge, skills and competencies.

Concept of performance
Behaviour & Output

The concept of performance has been expressed by Brumbach as follows: Performance means both behaviours and results. Behaviours emanate from the performer and transform performance from abstraction to action. Not just the instruments for results, behaviours are also outcomes in their own right the product of mental and physical effort applied to tasks and can be judged apart from results.

 Performance management can be defined as a systematic process for improving organizational performance by developing the performance of individuals and teams. Performance management is a way of systematically managing people for innovation, goal focus, productivity and satisfaction. It is a goal congruent winwin strategy.

The development of individuals with competence and commitment, working towards the achievement of shared meaningful objectives within an organisation which supports and encourages their achievement (Lockett). Performance management is managing the business (Mohrman and Mohrman). PM is the process of Directing and supporting employees to work as effectively and efficiently as possible in line with the needs of the organisation (Walters). Performance management is a strategic and integrated approach to delivering sustained success to organisations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors (Armstrong and Baron).

UNDERSTANDING PERFORMANCE MANAGEMENT 1. The meaning of performance; 2. The significance of values; 3. The meaning of alignment; 4. Managing expectations; 5. The significance of discretionary behaviour.

BASIC PRINCIPLES OF EFFECTIVE PM

Transparency decisions relating to performance improvement and measurement such as planning, work allocation, guidance and counseling and monitoring, performance review etc., should be effectively communicated to the employees and other members in the organisation. Employee development and empowerment effective participation of employees/ employees (individuals and teams) in the decision making process and treating them as partners in the enterprise. Recognizing employees/ employees of their merit, talent and capabilities, rewarding and giving more authority and responsibility etc., come under the umbrella this principle. Values a fair treatment and ensuring due satisfaction to the stakeholders of the organisation, empathy and trust and treating people as human beings rather than as mere employees form the basic foundation, apart from others.

 Congenial work environment the management need to create a conducive and congenial work culture and climate that would help people to share their experience knowledge and information to fulf ill the employee aspirations and achieve organisational goals. The employee/ employees should be well informed about the organisational mission, objectives, values and the framework for managing and developing individuals and teams for better performance. External environment effective and contextual management of external environment to overcome the obstacles and impediments in the way of effective managerial performance

Characteristics of effective PM
Clarity of organisational goals Evaluation Cooperation but not control Self- management teams Leadership development System of feedback an emphasis on front-end planning rather than back-end review; a broader definition of performance that focuses on more than narrowly defined job responsibilities; an emphasis on ongoing dialogue rather than forms and rating scales; the recognition that there are many factors contributing to performance outcomes.

Concerns of PM
Concern with outputs, outcomes, process and inputs. Concern with planning. Concern with measurement and review. Concern with continuous improvement. Concern with continuous development. Concern for communication. Concern for stakeholders. Concern for fairness and transparency.

Purpose
Employment decisions

Diagnoses of Organizational Problems

Feedback Mechanism

Documentation Concern

Development concern

AIMS OF PERFORMANCE MANAGEMENT

Empowering, motivating and rewarding employees to do their best Focusing employees tasks on the right things and doing them right. Aligning everyones individual goals to the goals of the organization Proactively managing and resourcing performance against agreed accountabilities and objectives Linking job performance to the achievement of the councils medium- term corporate strategy and service plans The alignment of personal/individual objectives with team, department/divisional and corporate plans. The presentation of objectives with clearly defined goals/targets using measures, both soft and numeric. The monitoring of performance and tasking of continuous action as required All individuals being clear about what they need to achieve and expected standards, and how that contributes to the overall success of the organization; receiving regular, fair, accurate feedback and coaching to stretch and motivate them to achieve their best Systematic approach to organizational performance aligning individual accountabilities to organizational targets and activity The process and behaviours by which managers manage the performance of their people to deliver a high-achieving organization Maximizing the potential of individuals and teams to benefit themselves and the organization, focusing on achievement of their objectives

PM on Employee

Input

Throughput

Output

 Input: Organizational Relevant Environment, Role Purpose or Objective, Stakeholder Expectations, Role Technology and Input Role or Vendor Contribution Throughput: Role Design, employee Potential, Managerial Leadership, Competing and Collaborating Colleagues, and Group Climate Output: Role Output or employee Performance is the endresult-the effect for which we work. This is the variable that is predicted or planned. It is invariably observable and measurable. The behavior of all organisms is goaldirected. As such, people performance is not only a sequence of causes and effects; it is a chain of sub-goals and actions, leading towards the ultimate goal.

Employees Potential
The actual realization of a employees potential depends heavily on: Group and Organizational Purpose. Group or Organization Capacities and Resources. Human Climate in the Group or the Organization. Feedback on Performance.

What do Employees Expect?

Clear expectations Positive/constructive feedback on a regular basis Involvement in goal setting Understand evaluation criteria Accurate job descriptions Be treated fairly and consistently Sharing of information and resources Job/career enrichment opportunities

Domains of potentials
Three abilities or forces in an individual are said to be essential for achievement: Icchha-desire or motivation; Jnana- knowledge or know-how: and Kriya- action to actualize.

PM Integrated Approach
Vertical Integration Functional Integration Human resource Integration Goal integration

 Vertical Integration aligning objectives at organisational, individual and team levels and integrating them for effective performance. The individuals and teams agree upon to a dialogue to work within the broad framework of organisational goals and values. Functional Integration it deals with focusing several functional energies, plans, policies and strategies onto tasks in different levels and parts of the organisation.

 Human resource Integration this ensures effective integration of different subsystems of HRM to achieve organisational goals with optimum performance. These subsystems include people management, task monitoring, job design, motivation, appraisal and reward systems, and training and empowerment. Goal integration it focuses on arriving at congruence between the needs, aspirations and goals of the employee with that of the goals and objectives of the organisation.

Challenges of Performance Management System

Measuring/Evaluating Dimensions Keeping Leaders Focused Linking Job Descriptions to Performance Management Implementing Performance Management for Staff Linking Compensation to Performance Management Matrix Management and Performance Management Keeping the System Alive Legal Constraints Rater Biases

Failures of PM
Believing performance management is about filling out forms Focusing on blaming employees rather than helping employees and working together Focusing on the past, rather than anticipating problems and focusing on the present or future Doing performance appraisals TO employees rather than with them Spending too much time appraising, and not enough time during the year planning and communicating Making it a once a year event Using poor and misleading tools, forms and software Expecting performance management to achieve too many different and often competing purposes and functions

Reference
Robert Bacal, text book of Performance Management, TMH editions. Will Artley, text book of Performance -based Management hand book, an E-book. Aaron, Maureen, Performance management, Nova southeastern University Dr.N.Luckeenarain, Effectiveness of performance management system, PPTs Connie Reid, Performance Management, PPTs.