Performance Management Systems

PERFORMANCE MANAGEMENT SYSTEMS

Performance Management Systems Managing Performance is a year round process. An iterative process of observation and communication to support, retain and develop employees for organizational success.

What Performance Management Is Not: • it’s not just an annual performance appraisal • it’s not imposing targets/goals on an employee by his supervisor • it’s not only evaluating individual job performance

What is Performance Management: it’s about setting SMARTER goals it’s about planning to perform it’s about periodically reviewing progress in performance it’s about evaluating performance for further improvement • it’s about delivering reinforcement for performance success and performance failure • • • •

PMS is about…… • • • • • •

Goal Setting Coaching Rewarding Disciplinary Action Performance Appraisal Documenting performance

GENERAL PERCEPTION ABOUT PMS AND REALITY GENERAL BELIEF :

REALITY :

Linked only to pay and rewards.

It is a constructive activity which leads to personal growth.

It is only an evaluation of the It is review of the past for better past. results in future. They are remote from facts.

It is based on objective evidence.

It’s a necessary must for the organization.

Its an opportunity given by organization.

What is the Performance Management Process/Cycle”: The Performance Management Process begin and ends in the same cycle of events which are as follows: •Individual goal setting •Performance planning •Mid year performance review •Annual performance appraisal

Individual Goal Setting • Host a goal setting session between the supervisor and the employee • List down the major goals to be achieved in a year in line with functional objectives • Review goals to assess the feasibility of their accomplishments; make sure the goals are SMARTER- Specific, Measurable, Actionable, Realistic, Time-framed, Extended & Rewarding • Finalize goals for a year

Performance Planning • plan on ways to achieve Goals • identify the possible barriers to achieving them • plan on ways to overcome those barriers

Mid Year Performance Review • host a performance review session between the supervisor and the employee • discuss on performance progress status and seek accountability for missing deadlines on goals • revise performance plan (if needed) with new deadlines for goals

Performance Appraisal • host a performance appraisal session between the supervisor and the employee • measure performance as against preset goals • measure competencies as against required competencies set for current role • measure potentials as against required competencies set for future role • chalk out Individual Development Plan outlining to fill skill gap, motivation & aspiration gap and communication & cooperation gap • chalk out Reinforcement plan to reward/recognize for success and punish for deliberate failure

Performance Appraisal? Performance Appraisal is an objective assessment of an individual’s performance against well defined benchmarks like Job Knowledge, quality & quantity of output, initiative, leadership, dependability and so on……..

The Old & The New • • • • •

Old System Manager writes opinions Based on the most recent event Is opinionated Managers are uncomfortable to judge Delays in process

Job Chat • • • •

Manager works thru out the year Is based on a series of actions Is more objective Focused on development

An Important Management Tool For The Organization  Communicates organization & department goals  Builds stronger working relationships  Improves productivity  Supports HR decisions: promotions, raises, etc.  Assures HR decisions are based on objective criteria  Identifies poor/marginal performers

An Important Management Tool For The ‘Manager Demonstrates your management skill Improves rapport and builds morale Identifies the employee’s general training needs Improves the employee’s productivity

An Important Management Tool For The Employee  Recognizes the employee’s accomplishments  Helps the employee to set goals and improve performance  Employees have a chance to communicate their career goals & ask about opportunities for career development  Employees become aware of needed improvement  Assures them that appraisals are fair

Use The SMARRT Criteria For Setting Goals • Specific:

• Realistic:

so the employee knows exactly what is expected so the employee knows when the goal is achieved accomplished with effort and/or skill doable within reason

• Time bound:

identify deadlines

• Measurable: • Achievable:

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SMART GOALS • Specific: A goal is a well-defined target that gives you clarity, direction, motivation and focus towards what you want.Your goal statement needs to reflect this. The goal needs to be significant enough to inspire you to move toward the life that you want. It will be either towards something you want or away from something you don't want.

• Measurable: It is easier to track progress against a goal if it is measurable. Some goals of course are easy to measure - weight loss, running speed, income. Others are difficult to measure as there are no apparent quantities that define it. In these cases, you'll need to develop some kind of ranking system, or measure time spent on the goal. Measuring your goals helps you determine if you are going in the right direction and make any necessary adjustments along the way.

SMART GOALS • Achievable: You will need to develop a strategy for how you are going to achieve your goal. You don't need to know all the details at first, just start with a general plan. Focus on actions you can take that are in your direct control • Reasoned and Realistic: Goals need to be relevant to you and to your life. They need to be meaningful and significant, in order to make a difference in your life. Remind yourself why you want to achieve this goal. • Goals also need to be realistic, in that the actions you need to take to achieve your goal are things that you can actually do and control. • Time-bound: For goals that have a measurable finish ending (eg weight loss goal), it is important to set a deadline. Goals without deadlines lend themselves to being put off until another day - we've all done it "I'll start my diet tomorrow". Action items also need to have deadlines to keep momentum up

SMARTER GOALS • Ethical, enjoyable and exciting: Goals need to be something you are excited about and are going to either enjoy doing or enjoy the outcome. If goals don't meet these criteria, you probably won't do them. And of course, make sure your goals are ethical. • Resourced: You will need to commit some resources to achieving your goals - this may be time, money, external support, information resources, etc. You may even have to make some sacrifices to achieve your goals, but if your goal is truly what you want to achieve, then a few personal sacrifices shouldn't deter you. No pain, no gain! When you've documented your SMART goal, read it through and commit yourself to your goals!

APPRAISAL SYSTEM  Self Appraisal  Initial discussion between the appraiser and the reviewer.  Discussion between the appraiser and appraisee and rating to be given with due consideration to the Attributes.  Assessment of employees performance by reviewing authority.  Final comments on the appraisal by the appraising authority.

Latest Appraisal Technique

360 degree appraisals

APPRAISAL MEETING

A)

STEPS IN SETTING UP THE MEETING.

 State purpose of the meeting Clearly.  Communication should be clear and not ambiguous.  Date, time and place to be decided in advance.  Sufficient time should be kept between two appraisal meetings.

APPRAISAL MEETING B) PREPARATION FOR THE MEETING  Collection of the facts and necessary data.  Plan the points to be discussed.  Be prepared with inputs for a constructive appraisal meeting.

LOCATION OF THE MEETING

 WHERE

 WHERE NOT

 It should preferably be at a neutral place with no physical barriers like the conference room.

 At the Manager’s desk.  At the Appraisee’s desk.

LANGUAGE  Establish contact  (say hello, handshake)  Ask open questions.  Seek to reach an agreements.  Be more elaborate in communication

 Don’t Invade  Don’t be threatening in giving a critical feedback  Avoid closed questions  Avoid reaching confrontation.

Activity : Role Play of Appraising a Poor Performance.

APPRAISING THE POOR PERFORMANCE A DEADLOCK Grossly avoided because 1. Makes the manager unpopular. 1. May de-motivate the appraisee.

APPRAISING POOR PERFORMANCE MADE EASY 1. Be clear in thoughts and actions : “Appraise the Performance not the performer.” 2. Describe clearly the expected level of performance. 3. Ask the Appraisee’s opinion about the expected performance and the actual. 4. Reach a consensus in identifying gap between the actual performance and the expected level. 5. Reach a agreement on improving the performance. 6. Follow – up : A Systematic follow up is required to ensure whether the agreed points are being met. 7. Taking timely review of the performance is crucial.

MANAGING DIFFERENT TYPES OF EMPLOYEES

 CHARACTERISTICS :  THE MANAGER SHOULD : DEFIANT  Avoid conflict  Seek acceptance with  Rebellious  No initiative warmth.  Non team performance  Develop two way communication.

MANAGING DIFFERENT TYPES OF EMPLOYEES  CHARACTERISTICS :

 THE MANAGER SHOULD :

UNDER ACHIEVER

 Show empathy not sympathy.  Exercise control over the initial period of performance.  Give advise not instruction.  Set realistic goals and help in preparing a action plan

 Excessive dependence  Needs supervision  Lacks initiative

DEALING WITH DIFFERENT TYPES OF EMPLOYEES  CHARACTERISTICS : ASSERTIVE:  Wants to control  Likes doing things his way.

 THE MANAGER SHOULD :  Encourage high performance and grant recognition.  Share objective with him/her and seek his/her commitment.  Delegation of work should be done carefully and team work should be encouraged.

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