Performance management

Performance management Definition A process or set of processes for establishing shared understanding about what is to be achieved, and managing and developing people in a way which increases the probability that it will be achieved in the short and longer term. Overall aim To establish a culture in which individuals and groups take responsibility for the continuous improvement of business processes, and of their own skills and contributions.

The basics of performance management I. Communication of a vision of objectives and values to all employees Setting departmental and individual performance targets linked to business objectives Regular performance reviews throughout the year Formal staff appraisal using one or more of the following: competencies objectives skills acquisition accountabilities output levels self assessment

The basics of performance management II. Performance related pay or performance related bonuses A thorough training and development system to address identified training needs Career counselling Organisational management reviews

Performance planning Building a development driven system means focusing everyone on what is important. Values How we want to be Vision Where we want to be Business planning Key steps this year Facilitation required Departmental objectives agreed Training required Individual objectives agreed

The performance management process Vision Values Business planning Performance planning Departmental objectives agreed Job profiles Individual objectives agreed Training needs Personal development needs Career development Sucession plans Informal reviews of progress Continuous Re-inforcing Coaching Performance managing Annual review Job profile Objectives Performance review

Goal setting Challenge Goal difficulty Moderators Mediators Goal clarity Self-efficacy Moderators - Ability - Feedback - Goal commitment - Task complexity Mediators Direction Effort Persistence Performance Rewards Consequences Satisfaction

Goal characteristics and performance Performance tendency Specific and clear Higher Vague Lower Difficult and challenging Set participatively Accepted by employees Rejected by employees Accompanied by positive incentives

There are three different approaches for doing appraisal There are three different approaches for doing appraisal. (Employees can be appraised against) absolute standards Measure an employee’s performance without comparing with any other employee relative standards Evaluating an employee’s performance by comparing the employee with other employee objectives (MBO) This performance appraisal method includes mutual objective setting and evaluation based on the attainment of specific objectives

Absolute standards Essay appraisal: A performance appraisal method whereby an appraiser writes a narrative about the employee. Critical incidents: Significant job related behaviours. Checklist appraisal: A performance appraisal type in which a rater check off the attributes of an employee that apply. Graphic rating scale: A performance appraisal method that lists a number of traits and a range of performance for each. Behaviorally-anchored rating scale: A performance appraisal technique that generates critical incidents and develops behavioral dimensions of performance. The evaluator appraises behaviors rather than traits.

Relative standards Group order ranking: A relative standard of performance characterized as placing employees into a particular classification such as the „top one-fifth.” Individual ranking: Ranking employee’s performance from highest to lowest. Paired comparison: Ranking individual’s performance by counting the number of times any one individual is the preferred member when compared with all other employees.

Tha basic elements of performance management Reflects an organization’s key values with regard to management of people. A system in place for the review of individual performance. Clear definition of job Mutual objective setting Clearly understood reward system Establish training needs

Development and succession planning Identification of high flyers Strenghtening of manager/ subordinate relationships Direct impact on motivation Vehicle for improving competence at all level Vehicle for culture change

http://wesley.stanf ord.edu.hr/docs. Perf_Eval01- 02Form1.doc

http://wesley.stanford.edu/hr/docs.Performance_Review.doc