Session - 10

Human Resource Management

Performance Management

Part - 2

Dr. L K @ XIM 1
Revisiting Performance Management

The process of setting expectations, aligning goals, assessing results, and focusing on staff development through ongoing
conversations between managers and their direct report(s).

Setting Expectations Goals and Objectives Goal Alignment

The process of discussing what is expected from Desired results each employee aims to achieve, Process of ensuring individual goals support
an employee in terms of job roles and determined based on conversations between the achievement of department goals and
responsibilities managers and employees department goals support the achievement of
organizational goals

Assessment Performance Calibration Feedback and Development

Review of goals, objectives, Process in which supervisors and managers at the Focus of the conversations between managers
and other factors, and the determination of the same level in and employees in determining strengths,
level of successful achievement an organization discuss staff performance ratings opportunities for improvement, and how
and outcomes to ensure ratings and development to grow and develop
messages are applied consistently across the
organisation

Performance management is not just a once-a-year conversation. It impacts staff over their
entire career.
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Effective Employee:
Performance “I own the process.”
Management Involves
Everyone!

Supervisor: Leader:
“I partner in “I champion
the process.” the process.”

Human Resources:
“I support the process.”

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Guiding Principles for
Effective Performance Management

Should be an ongoing process of setting expectations, executing plans and

evaluating results.

Expectations should be explicit and mutually understood.

Engagement is increased when people are involved in planning the work.

How work gets accomplished is as important as what gets accomplished.

Regular, honest feedback increases understanding and positive performance.

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 Ratings Scale
• The new three-rating scale is simple to communicate and allows for honest communication of employee effectiveness
while maintaining flexibility to differentiate performance
• Performance is based around expectation; therefore, these ratings can be applied to individuals with any length of service.

PERFORMANCE RATINGS FOR INDIVIDUAL COMPONENTS

Rating Description Illustrative Example
Successful Demonstrates the appropriate level of knowledge and/or skills. Performs effectively and Sets goal to cut department expenses by 10%, cuts by 8-12%
consistently. Achieves goal targets
Exceptional Demonstrates and applies exceptional level of knowledge and skills. Consistently excels. Sets goal to cut department expenses by 10%, cuts by over 12%
Significant achievement relative to goals
Needs Demonstrates a lack of knowledge and/or skills. Does not perform consistently. Does Sets goal to cut department expenses by 10%, cuts by less than 8%
Improvement not achieve goals
PERFORMANCE RATINGS FOR OVERALL EVALUATION
Rating Description Illustrative Example
Successful Consistently proficient in individual evaluation components; may be strong in several Viewed as “Successful” on most goals, job responsibilities, competencies
Contributor areas. Meets goals and job requirements; consistently demonstrates competencies & & behaviors; may be “Exceptional” in several areas; may receive a few
behaviors “Needs Improvement” ratings on individual goals/behaviors
Exceptional Consistently strong in the majority, if not all, individual evaluation components. Exceeds Viewed as “Exceptional” on almost, if not all, goals, behaviors, and job
Contributor goals and job requirements; goes above and beyond to demonstrate behaviors responsibilities; “Successful” in remaining program components
Needs Needs improvement in most individual evaluation components. Does not meet goals Receives a “Needs Improvement” on a majority of goals, job
Improvement and fails to satisfy job requirements; does not demonstrate competencies & behaviors responsibilities, competencies & behaviors; may be “Successful” in a few
areas

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Setting Goals and Expectations: A Collaboration

Your Employee’s Role

Understand Work Monitor Seek

Your Role as Supervisor
Understand how Work with you to Monitor their own Seek advice and
1. Clearly communicate expectations : job responsibilities their role aligns
with division and
set clear,
measurable
performance
compared to
guidance as needed
from you
and competencies (skills) and behaviors department goals, performance goals expectations
and participate
actively in setting
2. Communicate how individual goals align with expectations
department and organization goals
3. Help your employees set clear, measurable
performance goals
4. Offer advice and guidance regarding your employee’s
performance on a consistent, on-going basis

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 Setting Goals and Expectations

Draft individual goals:

 Help your employee identify 2-5 goals for the upcoming year/cycle. At least one
goal should support department/unit goals and one goal should support ongoing
job responsibilities/professional development.

 If your employee is a supervisor, a goal should be set that directly links to that
part of their role. Goals may be accomplished over several years.
Your employee will document the following for each goal:
 Goal description
 Action steps to achieve goal
 Metrics/what success looks like
 Required resources
 Target completion date

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 Setting Goals and Expectations
Example A Good Start: Draft Goal A Strong Finish: SMART Goal
If the focus is to reduce Lower department expenses. “Reduce department expenses by at least
department expenses… 1%-2% versus previous fiscal year by
following the new purchasing process for lab
supplies.”
If the focus is on an IT Complete new system Complete and implement the new ERP
project… implementation. system by February 1, 2025, through
effective collaboration across IT functions
and cross-functional teams.

Strive for SMART goals!

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Avoid Common Pitfalls

Pitfall: Limit the number of annual goals to 2 – 5 to ensure focus on the

Too many goals most important results

Pitfall:
Unclear accountability Clarify who is accountable for achieving the goal—especially
important in teams or where work is highly interrelated

Pitfall:
Unclear expected results or Clearly describe the qualities or measures of the expected results
measures to reduce ambiguity

IPS
T

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Effective Performance Management
Helps Us to:

• Target critical talent for development

and retention
• Execute strategy by prioritizing and
aligning goals and objectives
• Improve performance of groups and
individuals
• Make better pay decisions based on
performance and desired results
• Identify top performers to develop a
succession plan
Source: Sibson Consulting
Learning from the session

• Performance management and its 2 components

• What an executive need to ask and simple
propositions around it
• Performance management process and its cycle
• Performance appraisal method and common
rater errors
• Aim and Benefits of PMS
• Case analysis: PMS at Attock Refinery Limited

Dr. L K @ XIM 11