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Performance Management Notes

This document provides an introduction to performance management. It defines performance management as a planned and systematic process to ensure individual and organizational goals are met effectively and efficiently. The objectives of performance management include career planning, improving productivity, encouraging teamwork, providing feedback, and fostering communication. Performance management aims to develop employee talents, ensure goal clarity, empower employees, and maximize potential. It also discusses performance analysis, which involves collecting, transforming, and visualizing performance data.

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Shivani Nawale
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717 views15 pages

Performance Management Notes

This document provides an introduction to performance management. It defines performance management as a planned and systematic process to ensure individual and organizational goals are met effectively and efficiently. The objectives of performance management include career planning, improving productivity, encouraging teamwork, providing feedback, and fostering communication. Performance management aims to develop employee talents, ensure goal clarity, empower employees, and maximize potential. It also discusses performance analysis, which involves collecting, transforming, and visualizing performance data.

Uploaded by

Shivani Nawale
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Performance and

Compensation
Management
Module I
Introduction
Performance Management
Objectives

After completing this session, you will be able to:

▪ Describe Performance Management.

▪ Performance Analysis

▪ Appraisal Practices

▪ Potential appraisal

Performance and
compensation Management
Definition
According to Michael Armstrong and Angela Baron

– ‘Performance management is a process which contributes to the effective management of individual and
teams in order to achieve high levels of organizational performance.’

According to Ronnie Malcom – ‘Performance management may be defined as a planned and systematic
approach to managing the performance of individuals ensuring their personal development and contributing
towards organizational goals.’

Performance compensation
management
Meaning

Performance management includes activities to ensure that goals are consistently being met in an effective and
efficient manner. Performance management can focus on performance of the organization, a department,
processes to build a product or service, employees, etc.

Some of the authorities recently have used the expression ‘performance management’ in the place of traditional
employee evaluation/performance appraisal. It is described as a systematic and strategic approach to
ensuring that employees’ performance, as individuals and team members, enables the organization to
achieve competitive advantages by producing the level and quality of products and services that lead to
customer satisfaction, and, thereby, the achievement of objectives and the ultimate realization of strategy.
8 Main Objectives
1) To emphasize on career planning and future growth opportunities for employees;

2) To raise the efficiency and productivity of employees;

3) To encourage belongingness, team spirit and devotions among employees with the job;

4) To provide feedback about HR planning and potentialities to implement the planning facts;

5. To identify systematically the need and requirements of some learning and training aspects;

6. To promote better and high work culture in the organisation;

7. To focus more on systems approach to perform appraisals rather than to make any formalities;

8. To foster a positive relationship between managers and employees through a two way communication
process; 9

.
Scope

The principal purpose of performance management is to develop and nurture talents in an organization. Job
performance (also work performance or simply performance) was considered to be a special case of
psychological measurement that provided a quantitative description of the extent to which individuals
demonstrated certain characteristics, properties, or traits.

Performance measurement involves the methods or procedures that quantitatively provide the extent to which
employees demonstrate certain work behaviours and the result of those behaviours. The work performance of
a group of individuals employed in common jobs revealed considerable individual variation. McCormick and
Tiffins (1980) reported that the ratio of the least productive workers productivity to that of the most productive
worker’s varied from 1:2 to 1:3 for various kinds of productive jobs.
Importance

1) Creates awareness about ‘the big picture’ i.e., Organization’s vision, mission and goals

2) Communicates expectations clearly and hence provide role clarity.

3) Aligns Individual goals to organizational goals.

4) Ensures Individual commitment towards goals.

.
Aims

1.The overall aim of performance management is to establish a high performance culture in which individuals
and teams take responsibility for the continuous improvement of business processes and for their own skills
and contributions within a framework provided by effective leadership. Its key purpose is to focus people on
doing the right things by achieving goal clarity.

2.Empowering, motivating and rewarding employees to ensure their best efforts and performance and Ensuring
that the employees emphasize on doing the right tasks at the right time.

4. Ensuring effective alignment of individual goals along with those of the organization.

5. Ensuring maximization of the employee potential and capabilities.


Performance Analysis
Introduction

Performance Analysis is the process of studying or evaluating the performance of a


particular scenario in comparison to the objective which was to be achieved. In HR,
performance analysis, can help to review an employees contribution towards a project
or assignment, which he/she was allotted.
Consist of 3 basic steps

1. Data Collection: It is a process by which data related to performance of a program is collected. They are
generally collected in a file, it may be presented to a real user in a real time.

2. Data Transformation: It is applied often to reduce the volume of data. For example, a profile recording the
minutes spent in each sub routine job on each processor might be transformed to determine minutes spent in
each subroutine on each processor and the standard deviation from this mean.

3. Data Visualization: Although data reduction techniques can recue the volume of data, it is often necessary
to explore raw data. This process can benefit much more from the use of data visualization techniques.
Any Questions?
Thank You!

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