2 Performance management DefinitionA 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 aimTo establish a culture in which individuals and groups take responsibility for the continuous improvement of business processes, and of their own skills and contributions.
3 The basics of performance management I. Communication of a vision of objectives and values to all employeesSetting departmental and individual performance targets linked to business objectivesRegular performance reviews throughout the yearFormal staff appraisal using one or more of the following:competenciesobjectivesskills acquisitionaccountabilitiesoutput levelsself assessment
4 The basics of performance management II. Performance related pay or performance related bonusesA thorough training and development system to address identified training needsCareer counsellingOrganisational management reviews
5 Performance planningBuilding a development driven system means focusing everyone on what is important.ValuesHow we want to beVisionWhere we want to beBusiness planningKey steps this yearFacilitation requiredDepartmental objectives agreedTraining requiredIndividual objectives agreed
6 The performance management process VisionValuesBusiness planningPerformance planningDepartmental objectives agreedJob profilesIndividual objectives agreedTraining needsPersonal development needsCareer developmentSucession plansInformal reviews of progressContinuous Re-inforcingCoachingPerformance managingAnnual reviewJob profileObjectivesPerformance review
8 Goal characteristics and performance Performance tendencySpecific and clearHigherVagueLowerDifficult and challengingSet participativelyAccepted by employeesRejected by employeesAccompanied by positive incentives
9 There are three different approaches for doing appraisal There are three different approaches for doing appraisal. (Employees can be appraised against)absolute standardsMeasure an employee’s performance without comparing with any other employeerelative standardsEvaluating an employee’s performance by comparing the employee with other employeeobjectives (MBO)This performance appraisal method includes mutual objective setting and evaluation based on the attainment of specific objectives
10 Absolute standardsEssay 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.
11 Relative standardsGroup 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.
12 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 jobMutual objective settingClearly understood reward systemEstablish training needs
13 Development and succession planning Identification of high flyersStrenghtening of manager/ subordinate relationshipsDirect impact on motivationVehicle for improving competence at all levelVehicle for culture change