Performance management 1
Transcript of Performance management 1
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Performance Management
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What Is Performance?
Performance means both behaviours and results
When managing performance both inputs (behaviour) and outputs (results) need to be considered
This is called the ‘Mixed Model’
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What is Performance Management?
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Performance management is: ‘The development of individuals with competence and commitment, working towards the achievement of shared meaningful objectives within an organization which supports and encourages their achievement’.
Performance management is: the process of ‘Directing and supporting employees to work as effectively and efficiently as possible in line with the needs of the organization’ (Walters, 3).
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‘Performance management is a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors’ (Armstrong and Baron, 4).
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to establish a high performance culture to focus people on doing the right things To align individual objectives to organizational
objectives to develop the capacity of people to meet and exceed
expectations Empowering, motivating and rewarding employees to
do their best
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Characteristics of Performance Management
continuous and flexible process the primary elements are agreement,
measurement, feedback, positive reinforcement and dialogue.
based on the principle of management by contract and agreement rather than management by command
focuses on future performance planning
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Concern with outputs, outcomes, process and inputs.
Concern with planning.
Concern with measurement and review.
Concern with continuous improvement.
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Concern with continuous development.
Concern for communication.
Concern for stakeholders.
Concern for fairness and transparency.
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Few Concepts
The meaning of alignment
Managing expectations
Discretionary behaviour
Performance Agreement
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Performance Planning
Development Planning
Input
Output measures
Outcome Measures
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Process Of Performance Management
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The Management Cycle
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PM Cycle
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Performance Management Sequence
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Performance Management in Action At
Halifax Bank of Scotland Retail (HBOS)
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Essence Of performance Management
Aim
Principles
Key phrase - ‘Unleashing the performance of our people’
Performance Matrix
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Performance Management in Action At
Standard Chartered Bank
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PERFORMANCE MANAGEMENT AND NON-FINANCIALREWARDS
Performance management and recognition
Performance management and the provision of opportunities to achieve
Performance management and skills development
Performance management and career planning
Performance management and job engagement
Performance management and commitment
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Performance Mgt Roles
Top Managers Line Managers Employees HR specialists
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Top Managers
Communicate a clear sense of mission Clear line of sight Expectations are defined Everyone is kept informed of progress
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Line Managers
Bring policies to life.
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Employees
Top to bottom Pay and future is affected
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HR role
Helping employees to develop skills Creates mentors and coaches. Conduct surveys Training events
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PM Development programme Stage 1: Decide on the business case for introducing performance Management Stage 2: Determine objectives and guiding principles for performance
management Stage 3: Get the commitment and active participation of top management and
line managers Stage 4: Draw up guiding principles on how performance management should
work Stage 5: Define performance management processes and documentation Stage 6: Pilot-test Stage 7: Communicate Stage 8: Plan arrangements for training in performance Management Stage 9: Implement Stage 10: Evaluate
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Evaluating performancemanagement
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Evaluating performancemanagement
Performance agreement Objectives Feedback Review Motivation Development Ratings Performance Related pay Documentation Training
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Performance Appraisal
Performance appraisal is a method of acquiring and processing the information needed to improve an individual employee’s performance and accomplishments.
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Objectives Of Performance appraisal
To judge the gap between the actual and the desired performance Helps to strengthen the relationship and communication To diagnose the strengths and weaknesses of the individuals To provide feedback to the employees regarding their past
performance.
To determine who needs what training, and who will be promoted, demoted, retained, or fired.
Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.
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Purpose
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Administrative purposesAdministrative purposes Working conditionsWorking conditions Promotions Promotions Termination RewardsRewards
Developmental purposesDevelopmental purposes Improving PerformanceImproving Performance Strengthening job skills Strengthening job skills Providing feedbackProviding feedback Counseling Counseling TrainingTraining
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Setting Performanc
e standards
Taking correctivestandards
Comparing standards
Communicationstandards
Measuring standardsDiscussing
result
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Challenges Of Performance Appraisal
Determining the evaluation criteria
Create a rating instrument
Lack of competence
Errors in rating & evaluation
Resistance
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Methods of Performance Appraisal
Past Oriented Methods Checklist Forced Distribution Rating Scales Field review Paired-comparison Method Straight Ranking Method
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Modern Methods of Performance Appraisal
Assessment Centre Behaviorally Anchored Rating Human Resource Accounting Method 360 – Degree- Performance- Appraisal
Method Management by Objectives (MBO)Method
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Assessment Centre
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Behaviorally Anchored Rating
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Human Resource Accounting Method
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360 – Degree- Performance- Appraisal Method
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Management by Objectives (MBO)Method
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Measuring performance at different levels
For top level management
Degree of organizational growth and expansion
Extent of achievement of organizational goals
Contribution towards the society
Profitability and return on capital employed
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Measuring performance at different levels
For middle level managers Performance of the
departments or teams
Co-ordination with other departments
Optimal use of resources
Costs Vs. revenues for a given period of time
The communication with superiors and subordinates
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Measuring performance at different levels
For front line supervisors Quantity of actual output
against the targets Quality of output against
the targets
Number of accidents in a given period
Rate of employee absenteeism
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Performance Appraisal as Employee Motivation Mechanism
Inaccurate performance Review Increase in salary Deceased Motivation
Performance Review No increase in salary Deceased Motivation
Accurate Performance Review Increase in salary Motivation
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Difference Between Performance Management & Performance Appraisal
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Performance management
Performance appraisal
Joint Process through dialogue
Continuous review with on or more formal interview
Ratings less common
Flexible Process
Top Down Assessment
Annual appraisal meeting
Use Of ratings
Monolithic process
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Performance management
Performance appraisal
Focus On values & Behaviours as well as processes
Less likely to be a direct link to pay
Documentation Kept to a minimum
Owned by Line Managers
Focus On quantified Objectives
Often linked to pay
Bureaucratic-Complex paper work
Owned by HR department
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Thank You