PERFORMANCE MANAGEMENT SYSTEMS Step 1: Obtain and review the appropriate materials

Performance Management Planning & Development  Performance Management Resource Guide

 Entity and Department Balanced Scorecards
What is Performance Planning?  Staff Member's Job Description
 A systematic and structured approach to successfully achieve the desired  Expected Job Results Template
goals of an individual, team, or organization and planning the best way to  Performance Planning and Review form
achieve them throughout the assessment year.
 It focuses on underpinning the growth of employees and helping their career Step 2: Prepare for Performance Planning
development to achieve overall business goals.  Review entity and department balanced scorecards and strategies:
 Obtain documents
Objectives of Performance Planning  Review and clarify with next level supervisor and others as appropriate.
1. Communicate basic responsibilities that the individual has to perform on a  Inform staff member of upcoming performance planning session
daily basis.  Describe and discuss the overall performance management process.
2. Remove any vagueness in the goals and objectives that the individual has to  .Review performance forms with Staff Member.
achieve in the year or time period specified by the team leader  Describe objectives of performance planning session.
3. Identify and build on the competencies of an individual for doing the job.  Provide background information and related materials as available and
4. Create an adequate career development plan for the individual which would appropriate.
keep him motivated.  Schedule Performance Planning Session:
 Encourage Staff Member to "rough draft" a few important Expected Job
Employee Performance Planning Process Results and Behaviors or list job responsibilities.
1. Identify the strengths of each individual.  Allow Staff Member at least one week to prepare and plan.
 Learn the capabilities of your employees, which will, in turn, help you  Prepare preliminary drafts of Staff Member Expected Job Results and
adjust their responsibilities and customize performance goals. Behaviors and review job description.
 Perform a SWOT analysis of each individual working under you or get your
team to do a personal SWOT analysis by their own. Step 3: Conduct Performance Planning Session
2. Set Performance Goals  Confirm Staff Member's understanding of the performance management
 Understand the overall goals of the organization, and that of the team or process.
department the employee represents.  Review balanced scorecards and strategies:
 Establish and align individual performance goals. Involve the employee
 Seek consensus on departmental goals and strategies.
during this step for them to understand the plan and where he is heading.
 Discuss Staff Member role and job responsibilities:
 Carry out an annual or semi-annual performance evaluation to understand
the progress of the goals.  Review job description and confirm job purposes.
 For this, you should come up with a simple rating scale or indicators to  Discuss relationship between job and department goals and strategies.
assess the performance  Review job description for clarity and agreement
3. Define Employee Responsibilities  Establish Expected Job Results and Behaviors by sharing preliminary
 Employees will be assigned a basic set of functions. draft and discussing areas of disagreement or need for clarification.
 An organizational chart clearly convey their place in the organizational or  Record defined Expected Job Results and Behaviors.
team hierarchy and their roles and responsibilities.  Determine resources and skills required to complete the Professional
4. Describe Resources Needed Development Plan.
 Once the performance goals are clear, identify the resources necessary to  Distribute copies of the Performance Planning and Review form:
accomplish them.  Copy to Staff Member.
 The action plan should lay out the steps the individual should take to  Supervisor retains original.
accomplish the goals.
 Objective, tasks, success criteria, time frame, resources
Performance plan
5. Create Development Plan
 Come up with a plan or plans to develop the skills, knowledge and even A formal business document that explains goals set for a particular employee
the attitudes of the employees which are needed to achieve the goals that  It is effective in monitoring and measuring the results.
have been set and carry out the new responsibilities assigned to him/ her.  It is helpful in enlisting various training programs which employees can take to
 Career development plans are built to help the employee understand increase knowledge and productivity. It should have these parameters:
where they are headed in their career. It will have a positive impact on the a. List the goals
employee’s motivation and personal growth. b. Contain various performance measures
6. Continue to coach and counsel c. Enlist various measures or action required to achieve desired goals
 Supervisors should take it upon themselves to given the support d. Have a given time period for all goals.
necessary for the employee to succeed.
How to write a performance plan
Organization Performance Planning Process 1. Identify performance or behavioral issues that need improvement.
2. Explain the level of performance and behavior expected. - quota
3. Supply helpful suggestions for employee improvement. – manuals, training,
4. Schedule progress meetings with the employee. 5. Outline consequences for
not meeting standards.

How to Implement a New Performance Management Plan

1. Assess your current performance management process
2. Set your objectives and goals – cascade from Organizational Mission
3. Consult Key Players – collaboration
4. Create an Action Plan
5. Share your new performance management strategy
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6. Establish company-wide Objectives and Key Results  All that's left is for the member of staff and you to sign the agreement and
 Specific – Setting expectations of what, when and how much date it.
 Measurable – milestone to track progress and to motivate employees to
achieve Performance Management Appraisal
 Achievable – success is attainable
 Relevant – impact of every goal to the overall corporate strategy What is Performance Appraisal?
 Timely – within a timeframe to create sense of urgency  A regular review of an employee's job performance and contribution to a
7. Keep track of progress – for coaching, timeline adjustment, resources and company.
reward successes  It is a means to determine which employees have contributed the most to the
8. Evaluate the effectiveness of processes company’s growth, review progress, and reward high-achieving workers.
How to Measure Performance Plan effectively  A systematic, general and periodic process that assesses an individual
1. Do Your Research and Benchmark Best Practice employee's job performance and productivity in relation to certain pre-
2. Be Clear on Your Organization’s Goals for performance Management established criteria and organizational objectives.
3. Measure Organizational performance: Establish Your Success Measures
4. Evaluation of Your performance Management System Purpose of Performance Appraisal
5. Take Action on the Results 1. To determine which employees have contributed the most to the company’s
growth so companies can reward their top-performing employees accordingly.
Performance Agreement 2. Employees and managers can create a plan for employee development
 It defines accountability for specific personal and organizational goals as well through additional training and increased responsibilities, as well as to identify
as individual's expectations. shortcomings the employee could work to resolve.
 It establishes and agrees results-oriented goals that are aligned with the 3. Frequent conversations help keep everyone on the same page, develop
overall objective you want to achieve. stronger relationships between employees and managers, and make annual
 It concludes with the individual's formal, signed commitment to the agreement. reviews less stressful.
4. Aid in the formulation of job criteria and selection of individuals who are best
Benefits achieved by using performance agreements: suited to perform the required organizational tasks.
 Aligns personal and organizational goals.
 Improves trust and understanding. Benefits of Performance Appraisal
 Encourages communication and feedback. 1. Gives individual workers feedback about their job performance making him
 Assists career planning and development. more productive.
 Ensures that what you agree upon is relevant and achievable. 2. Facilitation of communication: feedback from the appraisal minimizes
 Provides an objective and fair way to evaluate performance. employees’ perception of uncertainty.
 Holds staff members accountable for their performance. 3. Enhancement of employee focus through promoting trust: Properly
 Makes performance a shared responsibility between you and your staff. constructed and utilized performance appraisals have the ability to lower
 Establishes a process to follow up on performance and development plans. distracting factors and encourage trust within the organization.
4. Goal Setting and desired performance reinforcement: organizations find it
Steps to Put Up an Effective Performance Agreement efficient to match individual worker's goals and performance with
1. Start With Expectations organizational goals. Collaboration can also be advantageous by resulting in
 Clearly identify the behavior that you want to see, explain why that behavior is employee acceptance and satisfaction of appraisal results. 5. Performance
needed, and identify the goals that need to be achieved. improvement - well constructed PAs can be valuable tools for communication
2. Build in Milestones with employees as pertaining to how their job performance stands with
 Identify specific points along the way to ensure that the goal is still relevant organizational expectations.
and that the person is still on track. The main reason for executing a 5. Determination of training needs: instrumental for identifying training needs of
performance agreement is to maximize success. new employees. It can help in the establishment and supervision of
3. Agree on the Terms employees’ career goals.
 Performance agreements are a two-way street. If you simply dictate what the
person will do, you may be disappointed with the outcome. When goals are Arguments against Performance Appraisal
agreed upon mutually, you're more likely to see progress. Take time to 1. Differentiating individual and organizational performance can be difficult if the
develop goals together, and be prepared to discuss the "whys" at length. This construction of the evaluation instrument does not reflect the culture of a
is a joint process – it needs acceptance from both parties for it to work. company or organization.
4. Schedule Accountability Meetings 2. Distrust of the appraisal can lead to issues between subordinates and
 Milestones form the basis for accountability. When people know you'll be supervisors or a situation in which employees merely tailor their input to
following up, they'll be much more likely to quickly get to work on the goal. If please their employer.
they think you'll simply forget about it, they probably will too. Schedule regular 3. Performance appraisals can lead to the adoption of unreasonable goals that
meeting times to review goals, discuss what's happening, and make demoralize workers or incentivize them to engage in unethical practices.
adjustments as necessary. 4. Some labor experts believe that use of performance appraisals has led to
5. Establish Outcome Results and Consequences lower use of merit-and performance-based compensation.
 Whenever you put together a contract, the other person probably expects to 5. Performance appraisals may lead to unfair evaluations in which employees
get something for fulfilling the terms of that contract. With performance are judged not by their accomplishments but by their likability. They can also
contracts, this may be a bonus or reward or it may simply be continued lead to managers giving underperforming staff a good evaluation to avoid
employment. - Make the performance agreement transparent – everyone souring their relationship.
should understand the consequences of action or inaction. When a formal 6. Unreliable raters can introduce a number of biases that skew appraisal results
agreement outlines specific and measurable expectations it doesn't leave toward preferred characteristics or ones that reflect the rater's preferences.
much room for argument. 7. Performance appraisals that work well in one culture or job function may not
6. Sign and Date It be useful in another.

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 9. Both manager and employee, keep performance appraisal records and can
Dimensions of Performance retrospectively review the changes in the performance in future.
A guide for development and coaching that are often use in almost every job and
provide a great framework to guide and develop people in their roles. Necessity of Performance Appraisal
1. Evaluation of an employee’s performance helps to take management
1. Quantity of work decisions on transfers, promotions, increments etc.
The quantity or amount of work produced or the sheer volume of work 2. Performance appraisal helps to ascertain the training and development needs
completed by employees–recognizes hard-working employees of the employer.
2. Timeliness of work 3. Performance appraisal or an individual’s performance evaluation helps in
Timely delivery of work in terms of schedules, meeting deadlines, etc. – designing the reward system.
recognizes employees who produce work on-time and meet deadlines 4. The feedback presided after evaluating the performance of an individual acts
3. Quality of work as a motivator.
The quality of work produced in terms of standards, errors, waste and rework 5. The Performance appraisal acts as a validation of the selection procedure.
– recognizes employees who produce quality work, work which meets Characteristics of Performance Appraisal
standards and work with few errors or mistakes. 1. Objectives are clear, specific, timely and open
4. Use of Resources/Efficiency The appraisal system should be fair and beneficial for both the individual and
Produces work in an efficient way in terms of using time, money, materials the organization
and other people’s time well – recognizes employees who come in on budget 2. Consistent, reliable and valid information and date
with efficient use of time, materials and people. Appraisals should measure what they are supposed to measure.
5. Customer (External & Internal) Impact/Value Add 3. Standardized form, procedures and rules.
Work produced meets the expectations of customers (external or internal) – Employees are made fully aware of the well-defined performance criteria and
recognizes employees who do work that meets/exceeds internal or external standards.
customer standards and expectations 4. Training
6. Self-Reliance. Evaluators should be provided with knowledge and skills in designing
Recognizes employees who produce work without the need for extensive appraisals, conducting post appraisal interviews and correcting rating errors.
supervision–requires a reasonable level of support 5. Job Relatedness
7. Department Contribution The appraisal system should provide information on job related activities,
The employee is helpful to others in the department in getting work done and behavior and performance.
sets a tone of co-operation 6. Mutual Trust
8. Productive Work Habits A climate of mutual trust, cooperation and confidence should be created in the
The employee has an overall work style which is effective and productive in organization. Employees are treated in a supportive manner.
terms of time management, setting priorities and following-up on 7. Feedback and Participation
commitments The appraisal system should be open and participative
9. Adding Skills & Capabilities 8. Help Focus
The employee is continuously adding new capabilities in terms of skills, The evaluator is a coach and counsellor, helping people reach their full
knowledge, and attitude to get work done in new/better ways and building for potential. The primary purpose of appraisal is developmental.
the future 9. Recognition of Difference
10. Alignment & Compliance Appraisal system must be designed to meet the needs of particular
The employee behaves in a way that is aligned with the values, culture and organizations. Specific and tailor fit for the particular company.
mission of the organization as well as common organizational practices and 10. Post Appraisal Interview
procedures. An interview with the employee should be arranged after appraising his
performance
Functions of performance appraisal
1. Every employee’s individual performance influences how all the team or even
the firm is doing.
2. It clarifies the employee’s role and status in the organization. Some workers
like to know where they stand regarding their job performance and want to
see what else they can do for the company.
3. Self-development is the most important benefit for the employee.
Performance appraisal allows you to provide positive feedback as well as
identifying areas for improvement. An employee can discuss and even create
a developmental (training) plan with the manager so he can improve his skills.
4. It motivates employees if supported by a good merit-based compensation
system. Best performers get better pay and benefits packages. Similarly,
those employees that lag behind get penalized.
5. It provides a structured process for an employee to approach the
management for discussions, identify problems, clarify expectations and plan
for the future. It lets both manager and employee set up long- and short-term
goals.
6. The statistics can be used to monitor the success of the organization’s
recruitment and induction practices.
7. Performance appraisal system also helps the management in deciding about
the promotions, transfers and rewards of the employee. Performance Appraisal Process
8. It is easy to identify the under-performers and decide whether you want to 1. Establishing Performance Standards
keep them hoping for improvement or sometimes have to let them go.
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2. Communicating standards and expectations  Development plan based on the 360 degree performance appraisal system,
3. Measuring the actual performance effectively improve the overall performance of employee and productivity of
4. Comparing actual performance with desired performance organization.
5. Discussing results – providing feedbacks  An advanced kind of appraisal which is used by many organizations where
6. Decision making – taking corrective actions performance of employee is judged using the review of around 7 to 12 people.
These people are working with the employee and they share some of their
How to give negative feedbacks to employees work environment. A way to improve the understanding of strength and
1. Combine negative and positive feedbacks weaknesses of employee with the help of creative feedback forms.
2. Be objective – no personal vendetta  3 prime reasons why an organization prefer to go for a 360 degree
3. Do not use harsh words – make employee feel safe performance appraisal.
4. Highlight importance of feedback in a professional’s life 1. In order to get a enhance review about performance and prospective of
5. Give feedback in private for sensitive people the future leader.
2. To broaden the insight of manpower development and its needs.
Performance Appraisal Methods 3. In order to collect feedback from all the employees and to ensure the
A. Traditional – based on Trait organizational justice
1. Rating Scale How to implement 360 degree performance appraisal system?
2. Graphic Rating Scale The implementation of 360 degree appraisal method is not an easy task. In order to
designaneffective360degree appraisal system one has to take care of following
B. Modern - Behavioral things.
1. Behavior Checklist 1. Determine the right skill to be assessed.
2. Critical Incident 2. Proper selection of appraiser.
3. Behavior anchored rating scales (BARS) 3. Proper training should be provided to all the employees about how to use the
4. Psychological Appraisal 360 degree review system.
5. Human Resource Accounting 4. The intention of appraisal system should be elucidate.
6. Management by Objectives 5. Design simple and easily understandable process.
6. Ensure that a follow up is taken after appraisal review
C. 360 Degree Appraisal
1. Top-Bottom Objectives of 360 degree performance appraisal
Supervisors evaluate their staff with no input from the subject  The objective of 360 degree feedback process differs from company to
2. Supervisor Appraisal company however the main objective of 360 degree performance review used
Immediate supervisors appraise the performance which in turn is reviewed by to evaluate the performance of employee in a holistic manner expert of this
the departmental head or manager. field often claim that a properly and effectively implemented 360degree
3. Subordinates Appraisal feedback process makes employee more comfortable with the organization
Useful in identifying competent superiors. and lead to their overall development along with boosting their performance.
4. Self-Assessment  To collect anonymous feedback about the employee from their superiors,
Individuals rate their job performance and behavior colleagues and peers also from the customer. This holistic approach helps to
5. Peer assessment evaluate performance and well-being of employee who is working for the
Work group rates his performance organization.
6. 360-degree feedback assessment
Assessment come from the individual, peers and supervisors The significance of 360-degree performance appraisal
7. Customer and other related parties  The immediate benefits of 360 degree feedback system can be observed in
Employee performance relating to their behaviour, promptness, speed in terms of teamwork, development of leadership and improved productivity of
doing the job, and accuracy. organization.
8. Consultants  It provides safe, confidential and reliable way for colleagues to provide
Trained raters who are appointed when employees/employers do not trust feedback.
self-appraisal, or peer appraisal, or subordinate appraisal.  It provides organization valuable insights about the current leadership, how
9. Negotiated Appraisal team mechanics works and overall culture of the organization.
A mediator attempts to modify.  360 degree performance appraisal system provides powerful knowledge to
the leaders and hence helps them for the development of employees.
360 Degree Appraisal  The effectively used 360 degree performance appraisal system boosts the
confidence of employees and helps them to improve in their performance.
What is the 360 degree performance appraisal system?  It also helps employee to become better leader and contributor for the
 A way to make sure the appraisal is done in a full-fledged way considering all organization.
the elements surrounded to the employee – peers, subordinates, customers
managers and the team members of the employee. 360 Degree Performance Appraisal Process
 It provides a holistic approach towards the performance of employee which 1. Communicating the 360 degree performance review
includes very important factors such as collaboration, teamwork and  It is very crucial to communicate the entire process to the stakeholders of the
leadership. The 360 performance review is mostly focused on the contribution organization. The purpose and objective of 360 degree performance appraisal
of employee and their skills along with the competencies. It is a balance way process should be clearly mentioned and explained to each and every
to view the actual performance of employee in the area of teamwork, participant. Also the process through which the feedback will be gathered and
leadership, interaction, interpersonal communication, contribution, how the feedback will be utilized should be clearly conveyed to the
management, accountability, work habits, vision, and other things based on stakeholders.
the employee’s job profile.  Time required: This process could take 2-3 weeks to communicate about the
appraisal system. This can be done through in personal meeting with
supervisors, managers, leaders and employees, emails and employees
4|Performance Management Systems
 should be encouraged to come forward if they have any queries related to 360 organization to see the changes and the area in which the employees are
degree performance appraisal process. actually improved.
 Time required- This process should be carried out after 8 to 12 months of 360
2. Selection of raters degree performance appraisal.
 The selection of rater is one of the most important steps in 360 degree
performance appraisal system. We have to choose enough number of Let's take a look at advantages and disadvantages of 360 degree performance
participants in order to receive data which is relevant and comprehensive. appraisal system.
The number of raters will depend on the employee’s job profile and working
relationship. Advantages of 360 degree assessment
 Time required- This process generally takes one to two weeks. The rater will  This system provides a comprehensive view towards the performance of
include supervisors, direct reports, peers and perhaps some customers or employees.
clients.  It improves the credibility of the performance appraisal system
 The feedback from colleagues helps to strengthen the self-development
3. Distribution of survey process of the employee
 Organizations can use online 360 degree feedback system which will allow a  It also increases the responsibility and alertness of employee towards their
quicker distribution of questionnaire among the employees. The participants clients.
will receive an email with the link of questionnaire and notification. They can  The different ideas coming from different raters combined provide more
click on the link, start and complete the 360degreereview. Time required- accurate360degreeassessment.
This may take one week in order to distribute survey among all the  More persuasive opinions can be gathered from different participants.
employees.  Here not only manager but colleagues are also responsible for assessment of
staff performance which empowers them.
4. Submission of questionnaire  Employees get motivated who generally undervalue themselves.
 Once the survey is distributed, the participant will complete the survey online.  Honest culture can be established among the organization using 360 degree
The completed review will be provided to the evaluator. This process can take performance appraisal
the longest time. The time required to submit a questionnaire depends on the
number of raters which are involved, the job profile of employee and Disadvantages of 360 degree assessment
organization. It is highly recommended that a particular deadline should be  The process is very lengthy, complex and takes a lot of time.
assigned to the participant in order to quickly finish the process.  If the feedback got exchange among the employees it can create trouble and
 Time required- This process should take to 2-4 weeks in order to get tension among the staff.
completed feedback from the participant.  A lot of effort has to be placed in order to train the employee to effectively use
the360degreeappraisal system.
5. Completion of report  It is very difficult to figure out the results.
 Once the review is been collected through the questionnaire method a  Some feedbacks are useless and need to be deleted carefully.
confidential report is being produced. It depends on the delivery plan of  A suspicious environment can be created in the organization as the
organization sometimes once the report is ready it is directly sent to the information is not available to everybody.
participants or the result is been given through one-one feedback session. 
Time required- if you are using an online system this very quick to produce 360 degree feedback questionnaire
the report, sometimes it takes 1 to 2 days. The questionnaire for 360 degree feedback depends on the job profile of employee.
However there are some topics such as leadership, interpersonal skills, problem
6. Facilitation of feedback solving attitude, motivation and efficiency of employees which can be judged by the
 It is recommended that the feedback should be given in a confidential manner colleagues, peers, supervisor as well as client. For such points there are few
by arranging the meeting with employee’s manager or coach. This meeting questionnaires which can be used. Check out the sample 360 degree feedback
will allow a great understanding about the feedback report and also provides questionnaire-
an opportunity to discuss the strength of the employee and areas which need
to be improved.  Leadership
 Time required- It depends on the in depth of the feedback session generally a  Do you think this employee exhibit the quality of leadership in the role
meeting can last for 1 to 2 hours for each employee. which he or her play for the organization?
 How positively this employee contributes through his leadership skills?
7. Completion of development plan  Do you think the employee should improve his leadership quality?
 Once review is done the development plan should be created for each of the  Interpersonal skills
participant based on the feedback reviews received through 360 degree  When you interact with this employee do you think the interpersonal
evaluation. It is important to develop an actionable plan which will help to skills which were demonstrated were satisfactory?
improve the employee. The areas where the improvement is required should  Do you experience any sort of problem while interacting with this
be identified as key areas based on which training program, workshop, employee?
coaching, conferences or mentoring should be arranged for the employee.  Do you recommend any improvement in the interpersonal skills and
The development of such plan helps employees to improve quickly. relationship development skill of the employee?
 Time required- Generally completion of development program could take one  Problem solving attitude
to two weeks  Do you observe that this employee effectively solved problem?
 What are the skills which this employee has demonstrated in order to
8. Re- evaluating solve the problem?
 360 degree feedback system is not one of event; once you start the process it  Do you think this employee has less problem solving skills and the
is important to see the consequences of the process. Specific goals and employee need to work to improve the skills?
opportunities are outlined in the development program; it does make sense to  Motivation
check the progress. The re-evaluation of participant will enable the  Do you observe that this employee appeared motivated towards his
work-related task, job or relationships?
5|Performance Management Systems
  How committed and motivated do you think this employee is with
regards to success of the organization?
 Have you ever experienced any issues related to the motivation level of
the employees?
 Efficiency
 Do you think the work method and approach used by the employee are
effective, efficient and improving?
 Do you suggest any areas of improvement for

These are some areas in which the questions can be raised in order to improve the
effectivenessof360 degree feedback system. These questions will help the
employees to respond about their issues and things which they appreciate about
their colleagues and peers. These questions will promote ease of sharing of
information among the employees.

6|Performance Management Systems