Performance Management For Fusion

Performance Management BY.TEAM FUSION

TEAM LOGO Gitanjali Prithwiraj deb

Sahana

FUSION

Ratish babu

Bharat ram

What is a performance management? 

Performance management is the process of assessing progress toward achieving predetermined goals. It involves building on that process, adding the relevant communication and action on the progress achieved against these predetermined goals helping organizations achieve their strategic goals.

 According to SHRM (the Society for Human Resource Management), "performance management is the organized method of monitoring results of

work activities, collecting and evaluating performance to determine achievement of goals, and using performance information to make decisions, resources and communicate objectives are met." Itallocate is likely the majority of employeeswhether equate "performance management" to their performance appraisal form and yearly discussion with their manager about "how they are doing in their job.

Performance Management (PM)  Introduction  Basic Principles  Developing PM as integrated Process  Objectives  Focus  Appraisal  Feedback  Latest /current trends in PM

Introduction Definition  Purpose  Essence  Scope 

Definition A strategic and integrated process that delivers sustained success to organizations by • Improving the performance of the employees • Developing the capabilities of individual contributors and teams

Purpose §Getting better results from the whole organization §Process for establishing shared understanding for achieving goal §Owned and driven by line management

Essence §A shared process between managers and the team members §The agreement of •Objectives •Knowledge •Skill and Capability (competence) •Requirements •Performance Improvement •Personal Development Plans

Scope §Concerns everyone in the business §Assumes that the responsibility is ‘shared’

Basic Principles

Basic Principles §Translates corporate goals into Individual, Team, Department and Divisional goals §Helps to clarify corporate goals §Continuous and evolutionary process, in which performance improves over time §Relies on consensus and co-operation rather than control or coercion

Basic Principles (contd.) §Creates a shared understanding of what is required to improve performance and how this will be achieved §Encourages self-management of individual performance §Requires a management style that is open and honest and encourages two-way communication between superiors and subordinates §Requires continuous feedback

Basic Principles (contd.) §Feedback loops enable the experiences and knowledge gained on the job by individuals to modify corporate objectives §Measures and assesses all performance against jointly agreed goals §Should apply to all staff, and §Not primarily concerned with linking performance to financial reward

PM as Integrative Process

PM as an Integrative Process Is a force for both vertical and horizontal integration VERTICAL Integration of: §Business strategic plans and goals with individual and team objectives §Core values and capabilities of the organization §Values adopted and level of capability achieved by individuals

Performance Management as an Integrative Process (contd.) HORIZONTAL Integration of: §Performance management strategies with other HR strategies concerned with

•valuing, •paying, •Involving, and •developing people

Focus of PM Valuing People

Paying People

Performance Management

Involving People

Developing People

Focus of Performance Management §Performance improvement §Employee development §Satisfying the needs and expectations of organization's stakeholders §Communication and involvement

Factors Influencing Performance Perf = f (A,M,E)and team work Ability

Motivation

Environment

§Technical skills

§Career ambition

§Equipment/materials

§Interpersonal skills

§Employee conflict

§Job design

§Problem-solving skills

§Frustration

§Economic conditions

§Analytical skills §Communication skills §Physical limitations

§Fairness/satisfaction §Goals/expectations

§Unions §Rules & policies §Management support §Laws & regulations

PM Objectives

Objectives 

Why do we measure performance?



How do we measure performance?

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Effective performance appraisal system



Giving appropriate feedback

Why is Performance Measured? 

Developmental reasons

•

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How might a performance appraisal contribute to an individual’s development?

Administrative reasons

•

How might a performance appraisal serve administrative functions?

Why is Performance Measured? 

Performance appraisal: The evaluation of a person’s performance

• Provides feedback to employees • Identifies employees’ developmental needs • Decides promotions and rewards • Decides demotions and terminations • Develops information for selection and placement decisions

How is Performance Measured? 

Results based

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Behavioural based

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Trait based

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Objective based

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Subjective based

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360- Degree Feedback

Types of Performance to Measure 

Results-based (results-oriented): measure the results produced by the employee

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Uses ◦ Use it where results matter

Types of Performance to Measure 

Results-based (cont’d.): ◦ Challenges Which results are relevant may not be obvious for all jobs Some results are not under the employee’s control May foster “results at all costs” mentality May interfere with teamwork May be difficult to provide effective feedback

Types of Performance to Measure Behavior-based (behavior-oriented): measure the employee’s behaviors  Makes it easier to provide detailed feedback 

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Uses ◦ Use it where how the employee produces results matters

Types of Performance to Measure 

Behavior-based (cont’d.): ◦ Challenges Difficult to capture the full range of relevant behaviors Different behaviors can lead to the same results — do we always care which behaviors were used?

Types of Performance to Measure 

Trait-based (trait-oriented): measure the employee’s abilities and other personal characteristics ◦ Challenges Poor reliability & validity Weak linkages with job effectiveness Measurement subject to biases (racism, sexism) Difficult to provide effective feedback

PM Appraisal Methods

Objective Measures 

Objective Measures: measure performance in terms of things we can see and count ◦ Production measures: count units produced ◦ Sales measures: count sales ◦ Personnel data: count things in the employee’s personnel file, such as: Number of times late to work Number of times absent Number of disciplinary actions taken

Objective Measures (cont’d.) ◦ Performance tests: evaluate a sample of the employee’s work ◦ Business unit performance measures: Examples: Stock price Market share Profit measures: profits, return on sales, return on assets, return on equity

Uses For managers with business unit responsibility

Subjective measures 

Measure performance using human judgments ◦ Ranking: subjectively rank employees from best to worst ◦ Paired Comparisons: in all possible pairs of employees, subjectively rate which employee is better

Subjective measures (cont’d.) ◦ Rating scale (graphic rating scale): subjectively rate the employee’s performance on a labeled numeric measuring scale 

Uses

◦ Used to rate overall job performance as well as specific aspects of job performance

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Challenges Forced distribution: evaluator must place a fixed percentage of employees in each performance category

Performance Appraisal Methods 

Subjective measures (cont’d.) ◦ Behavioral Observation Scales (BOS): evaluators rate the frequency with which an employee engages in specific behaviors ◦ Weighted checklist: from a list of possible employee behaviors, check off the ones that apply to the employee

Management By Objectives (MBO) Involves employee in setting goals Measurable goals Challenging but realistic, difficult but achievable

◦ At the end of period, review if the goal has been achieved

PM Feedback

360-Degree Feedback Manager

Peers

Individual

Direct Reports

Customers

360-Degree Feedback 

Integrity safeguards:

• Assure anonymity • Make respondents accountable • Prevent “gaming” of the system • Use statistical procedures • Identify and quantify biases

360-Degree Feedback (…contd.) Uses 

Personal Development

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Appraisal

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Payments

Effective Performance Appraisals Clear anchors and standards of performance  Comply with the law  Decide who should appraise  Train appraisers 

• Monitor performance daily • Keep diary and document interactions • Understand the behaviours important to job performance

Sources of Performance Appraisal Manager and/or Supervisor Appraisal  Self-Appraisal  Subordinate Appraisal  Peer Appraisal  Team Appraisal  Customer Appraisal 

Appraisal Interviews 

Tell and sell (persuasion)

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Tell and listen (nondirective)

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Problem solving (problem resolution and employee development)

Conducting the Appraisal Interview Ask for a self assessment  Invite participation  Express appreciation and start positively  Minimize criticism  Change the behaviour, not the person  Refer to observable behaviours  Focus on solving problems  Be supportive  Establish goals  Follow up 

Training Raters 

Establish an appraisal plan

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Eliminate rater error

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Feedback training

Sources of error 

Management attitude

 Rater

errors

• Halo effect • Central tendency • Leniency/strictness bias • Prejudice • Recency effect • Subjective factors

Halo effect- When we consider a person good (or bad) in one category, we are likely to make a similar evaluation in other categories. (Note-It is as if we cannot easily separate categories. It may also be connected with dissonance avoidance, as making them good at one thing and bad at another would make an overall evaluation (which we do anyway) difficult.)

Central tendency- Focusing on the central thing

Leniency and Strictness Bias- This occurs when raters are too easy in evaluating staff member performance (leniency) or too harsh. The result of this bias is a tendency to rate all staff members on each factor at either the "outstanding" end of the scale or the "below expectations" end of thePrejudice-This scale Personal occurs where job ratings are influenced by the rater’s perception of a characteristic of the staff member that is not job relevant. Try and self identify your prejudices. By acknowledging them you can ensure you build a plan to avoid them.

The Recency Effect- This is where ratings are strongly effected, positively or negatively, by the staff member’s most recent actions rather than the staff member’s performance over the course of the year. Obviously a systematic recording of the staff member’s performance over the course of the year using the journal entry process counteracts this bias. Higher Value, Higher Rating- This is where managers give generally higher ratings to staff members in more highly paid jobs and generally lesser ratings to staff in lower paid jobs, even where the performance of the individuals is similar. The belief is that managers are sometimes inadvertently influenced to give people higher ratings in jobs that the manager may see as more important.( subjective) subject to the position of

Reasons Appraisal Programs Fail 

Lack of top-management information and support

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Unclear performance standards

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Rater bias

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Too many forms to complete

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Use of the appraisal program for conflicting purposes

Ethical Considerations §Respect for the individual §Mutual respect §Procedural fairness §Transparency

Latest/recent trends in PM Recent research reveals that the majority of organizations are utilizing performance management systems / performance management software and many are in the process of revamping their first generation systems. According to Development Dimensions International (DDI), performance management systems are active in 91% of 3,600+ organizations . Performance Management - Current Trends:Strategic HR - The Link Between Employee Performance Management and Organizational Performance

Link between [EPM] and [CPM] Increasingly companies are focusing on "strategic HR," aligning human resources initiatives with the overall goals of the organization to improve business success. Aligning Employee Performance Management (EPM) with Corporate Performance Management (CPM) The following are the effects :1)*90% of companies surveyed, perceive improved management of their workforce as key to gaining competitive advantage. 2)Organizations are aligning their employee performance goals with corporate performance goals through technology solutions. HUMAN CAPITAL MANAGEMENT * Aligning employee goals with corporate goals * Linking reward and recognition programs to performance * Targeting learning and development toward performance gaps * Identifying skills and competencies of top performers for retention and succession * Increased Automation of Performance Management and HR Functions

Thank You

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