Performance Management -Uttam Acharya

Objectives Explain the need and process of performance management Analyse linkages of performance management and organizational effectiveness. Identify performance intervention tools and techniques

Contents Need for performance management Performance management process Integrating effects of performance management Performance management tools and techniques

Performance Management Management = getting work done through/with others Manager’s performance is only as good as his/her employee’s performance Manager’s job = performance management of others Performance = ability * motivation * support

Performance Management Performance refers to “outcomes, results or accomplishments” Rothwell, 2005 Rothwell (2005) describes performance as, “outcomes, results or accomplishments.” This is a simple yet profound concept. When all has been said, the question that remains to be asked is, “What have we accomplished?” I want to suggest that a key facet of our role as managers and supervisors in the Public Service is to ensure that at the end of the day, some positive results have been accomplished, results that contribute to improving the lives of the average citizen.  

Components of Performance Four components of performance A performer Behaviour Situation Results Morhman et al ,1989 Morhman et al (1989) identify four separate components of performance. They state that, “A performance consists of a performer engaging in behaviour in a situation to achieve results.” The authors indicate that most types of appraisal systems focus on the performer, the behaviour or results. They go on to classify the types of performance appraisal systems into four categories: Performer- oriented approaches; behaviour-oriented approaches; results-oriented approaches and comparison-oriented approaches.

Performance Management-holistic approach Organizational system Focusing on employee performance Consistently applied throughout organization With a supporting structure

Need of Performance Management Systems Result/outcome/Impact Correct Performance/Behavior Administer Salary & Wages Plan for Future (promotion, transfer, career dev) Facilitate Decision-Making (counseling, terminations) Facilitate Human Resource Planning Create Culture Building Good Relationships Increase Organizational Loyalty Determine Effectiveness of Selection and Placement Methods

Performance management-strategy Performance management is, “a continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization.” - Aguinis, 2005 Aguinis (2005) defines performance management as, “a continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization.”

Performance management- not “A system that involves employee evaluations once a year without an ongoing effort to provide feedback and coaching so that performance can be improved is not a true performance management system.” Aguinis, 2005 He contends that, “a system that involves employee evaluations once a year without an ongoing effort to provide feedback and coaching so that performance can be improved is not a true performance management system.” He describes this rather, as only a performance appraisal system.

Principle of performance management Supports organization’s strategy Value based Communicates organizational mission Fulfills responsibilities to organizational members Enables employees to manage own performance Manages expectations (clarifies roles and responsibilities) Creates partnership between management and employee Emphasizes importance of measurement, feedback Reinforces Empowers employees

Contribution of performance management- employee Clarify definitions of Job Key result areas KRA, Key performance area, Indicators success criteria Performance plan Increase motivation to perform Increase self-esteem Enhance self-insight and development

Contribution of PM-manager Communicate supervisors’ views of performance more clearly Managers gain insight about subordinates Better and more timely differentiation between good and poor performers Employees become more competent

Contribution of PM-organization/HR Clarify organizational goals Facilitate organizational change More appropriate for administrative actions

Performance planning The term performance planning is used to describe the whole process of forming an agreement and then expressing it as a number of actions to be taken by the individual, by the manager or by the individual and the manager jointly

Performance planning (work plan) It is the normal activity of preparing and agreeing programmes for the achievements of the objectives. It is a continuing activity because of the need to revise and update work plans to meet new demands or situations. It may be incorporated specifically into the performance agreement as a record of any decisions made about future

Features of performance plan Discussion about performance management Encouragement Guidance and orientation/training for basic skills Joint agreement Feedback Review

Performance agreement KRA-Key result areas/Principle accountabilities Job holders are accountable for the achievement /outcome Strong positive result realized KPA – Key performance area/ assigned tasks/segregation of duties KPI – Key performance indicators (practical-values, process; directional- following directives; actionable- initiate change how) Will be quantified as targets, If not quantifiable, basis for defining performance standard / measures and indicators eg.profit, cost etc. Performance Attributes and competencies

Improving Performance with plan Action at organizational level (leadership, management role etc) Department level Team level Action at the individual level Select goal Define expectations Define performance measures Monitor: progress Manage under performance

Individual work objectives Consistent (with Orgn. Dept. Unit objectives) Precise Challenging Measurable Agreed Time related Team work oriented

Setting performance Key Result Area-Responsibility Key Performance Area-Tasks Key Performance Indicator-Measurement-quantify- standardization

The performance management process Mission and value statement Objectives (org. dept. individual-aligning) Performance agreement (Jobs, goal setting, different forms design) Continuous performance management Feedback Preparation for review Performance review Feedback (moderating goals) Development and training Performance rating-performance related pay Improved performance

The performance management cycle Performance agreement Performance review Action Performance plan Monitor feedback and review

Performance management Communicating performance management system Performance agreement Performance plan Performance monitoring, feedback and evaluation Final performance review

Techniques of performance management Job analysis (Job description, Job design, job enrichment) Performance appraisal(evaluation, rating scale) Staff development/Training Performance planning/Monitoring/feedback Coaching and mentoring Counseling Job rotation Rewarding/Praise/Recognition Authority Staff meeting Grievance handling

Conclusion : How PM works Improved performance Performance effectiveness Coaching /counseling Performance agreement Monitoring and review against performance agreement Main performance review/appraisal

Thank you