Performance

Management
GROUP 6, SECTION B
Introduction
Performance management is a continuous process of communication between a supervisor and
an employee that happens throughout the year, in order to achieve the strategic objectives of
the organization. An effective performance management process sets the foundation aligning
the individual's efforts with the organization's goals:
By connecting individual employee work efforts with the organization’s mission and goals, the
employee and the organization understand how that job contributes to the organization.
By focusing attention on setting clear performance expectations (results + actions & behaviors),
it helps the employee know what needs to be done to be successful on the job.
Using objectives, standards, performance dimensions, and other measures, it focuses on effort.
Through regular discussions, which include status updates, coaching, and feedback, it promotes
flexibility, allowing you and the employee to identify problems early
Managing Employee Performance – The
Cycle
It is an ongoing process that takes place throughout the year. The Performance Management
process is a cycle, with discussions varying year-to-year based on changing objectives.
The cycle includes Planning, Checking-In, and Review.
Reviewing overall expectations, which includes collaborating on the development of
performance objectives and then developing a performance plan that directs the employee's
efforts toward achieving specific results to support organizational and employee success.
Discussing goals and objectives during check-in meetings. This provides a framework to ensure
employees achieve results through coaching and mutual feedback.
Reviewing the employee's performance against expected objectives, as well as the means used,
and behaviors demonstrated in achieving those objectives. Together, you establish new
objectives for the next performance period.
Bell Curve
1. Bell curve system of performance appraisal is a forced ranking system imposed on the
employees by the management.
2. Through this system, the organization tries to segregate the best, mediocre and worst
performers and nurture the best and discard the worst.
3. And this segregation is based on a relative comparison of the performance of the workforce
against those engaged in a similar activity and ranking them accordingly.
Planning
Performance Expectations = Results + Actions & Behaviors
Results are often measured through the use of objectives and standards
Actions and Behaviors can be measured with the use of performance dimensions.
Written, verifiable mutually understood performance expectations:
Provides a basis for communicating about performance
Enable the worker in differentiating between acceptable and unacceptable results
Increase job satisfaction because employees know when tasks are performed well
Inform new employees of your expectations about job performance
Encourage an open and trusting relationship with employees
Put Expectations in Writing:
A written summary of discussions during the planning process serves as a record of mutually understood
expectations. Putting expected results (objectives and standards) and expected actions/behaviors
(performance dimensions) in writing comes in handy when:
 Allocating resources,
 Discussing budgets, and
 Prioritizing programs.
Mutually developed written expectations also help focus feedback and minimize ambiguity while assessing
results.

Verify Expectations
There are several ways to verify performance; some of the most common are:
 Specific work products (tangible evidence that can be reviewed without the employee being present)
 Reports and records, such as attendance, safety, inventory, financial records, etc.
 Checklists that can be completed by a client or supervisor
 Direct observation
 Rating scales that define, as precisely as possible, behaviors at different levels of performance
 Commendations or constructive or critical comments received about the employee's work
Check-In
Once performance objectives and standards are established, checking-in with the employee
regularly and providing feedback.
Recognizing and reinforcing strong performance by an employee, and encouraging
improvement where it is needed.
In jobs with built-in feedback, the knowledge of the results comes from work activity itself,
such as when an electrician repairs a broken switch and it begins to work. This kind of feedback
is very effective because it is immediate.
A manager is most likely to provide informal feedback almost every day. By observing and
providing detailed feedback, managers play a critical role in the employee's continued success
and motivation to meet performance expectations.
Coaching – A Feedback Tool
Coaching is a method of strengthening communication between you and the employee, and
can be used during check-in sessions.
Coaching helps to shape performance and increase the likelihood that the employee's results
will meet your expectations.
Coaching sessions provide the opportunity to discuss progress toward established goals and
objectives.
Rather than the total review that takes place in a performance appraisal, a coaching session
focuses on one or two aspects of performance.
Review
Performance review is the process of measuring an employee’s performance in the current
position. It summarizes the employee's contributions over the entire review period. While an
employee is to be assessed at least once a year, it is strongly suggested that employees receive
some form of review on a more frequent basis.
Some goals of the performance review process are to help the employee:
Feel positive about the job
Feel appreciated for specific contributions
Benefit by specific, constructive feedback
Keep motivated to do well and to develop new skills
Stay involved in the process
Balanced Scorecard
The balanced scorecard proposes that a company should use a balanced set of measures that
allows top managers to take a quick but comprehensive view of the business from four
important perspectives. In turn, these perspectives provide answers to four fundamental
questions:
1.How do we look to our shareholders (financial perspective)?
2.What must we excel at (internal business perspective)?
3.How do our customers see us (the customer perspective)?
4.How can we continue to improve and create value (innovation and learning perspective)?
Performance Prism
Performance Prism suggests that a PMS should be organised around five distinct but linked
perspectives of performance
1.Stakeholder satisfaction. Who are the stakeholders and what do they want and need?
2.Strategies. What are the strategies we require to ensure the wants and needs of our
stakeholders?
3.Processes. What are the processes we have to put in place in order to allow our strategies to
be delivered?
4.Capabilities. The combination of people, practices, technology and infrastructure that together
enable execution of the organisation's business processes (both now and in the future): what
are the capabilities we require to operate our processes?
5.Stakeholder contributions. What do we want and need from stakeholders to maintain and
develop those capabilities?
Thank You