Master of Business Administration

MBHD2134

PERFORMANCE MANAGEMENT
THIRD SEMESTER- BATCH 1 – HRM
STREAM III – HUMAN RESOURCE MANAGEMENT
(FUNCTIONAL ELECTIVE)
By

Associate Prof. Dr.RAMYA THIYAGARAJAN, MBA (HR)., Ph.D

DIRECTORATE OF DISTANCE EDUCATION

SRM Institute of Science and Technology,
Potheri, Chengalpattu District 603203,
Tamil Nadu, INDIA
 INTRODUCTION

UNIT I
Overview of Performance Management Process–
Performance management planning process and
strategic planning– need for structure and
documentation, manager’s & employee’s
responsibility in performance planning mechanics and
documentation and creation of PM document.
UNIT II
Performance Measurement– Alternative models for
Assessing Performance– Balanced scorecard; Strategy
maps– Creating performance measures– EFQM
Model.
UNIT III
Outcome metrics – Economic Value Added (EVA); other
economic measures. Building a High Performance culture –
360–Degree Appraisal:Introduction, the Impact of 360–Degree
Feedback on Organizations, Concept of 360–Degree Feedback
System, Purpose, Methodology, Ratings, Advantages and
Disadvantages of the Method, The Process of 360– Degree
Feedback, Operating 360–Degree Appraisal
UNIT IV
Performance Management & Employee Development,
Performance Management and Rewards Team Performance,
Performance of Learning Organizations and Virtual Teams:
Team Performance Management, Performance Management and
Learning Organizations, Performance Management and Virtual
UNIT V
Ethics in Performance Appraisal: Ethics – An Overview,
Ethics in Organizations, Ethics in Performance Management,
Realities of Ethics in Performance Management, Ensuring
Ethics in Performance Management.
LEARNING RESOURCES
1.Performance Management: Toward Organizational
Excellence Paperback – 29 Dec 2015 by T V Rao (Author)
2.Performance Management: Integrating Strategy Execution,
Methodologies, Book by Gary Cokins Performance
Management 2/E Book by Robert Bacal
 PERFORMANCE
MANAGEMENT

Performance management process is a systematic

process of managing and monitoring the
employee's performance against their key performance
parameters or goals.
 Performance Management Stages

Performance management offers three basic phases or

stages for employee development: coaching,
corrective action, and termination. The first phase,
coaching, involves the process of orienting, training,
and encouraging employees.
 performance
management
Five key elements in
place
 Planning and Expectation Setting.
 Monitoring.
 Development and Improvement.
 Periodic Rating.
 Rewards and Compensation
 Role of Managers in
Performance Management
The success of performance management practices in
any organization depend upon the commitment and
involvement of the different stakeholders like top
management, line managers, employees and the HR
specialists
 Role of Line Managers in
Performance Management

The line managers or the front-line management play

a very crucial role in implementing and enacting the
HR policies. Hence, it is very important for the
management to ensure that the line managers possess
a right attitude towards the performance management
approaches and equally possess the right
competencies for executing it.
 Role of Employees in
Performance Management
The employees have a vital role to play in the
performance management cycle as the entire process
revolves around them. They play an active part in
formulating performance agreements along with their
line managers and participate in 360-degree
assessment schemes.
 Performance Development Planning

& Individual Development through

Performance Management
Performance management system of any organization aims at
identifying the potential of development in the employees and
optimally utilizing it for mutual satisfaction by providing the
right support and guidance for doing well in the job.
 Performance and individual
development plans are derived from
an analysis of the following factors
Role Profiles
Objective Setting
Define short term goals which may generate long term
gains.
Identify the possible obstacles and the complex issues in
the process of realization of these objectives
Performance measures and assessment
Performance planning
Development planning
The performance agreement
 Performance Improvement
Programs and Their
Implications forOrganizations
Performance improvement plans or programs are
monitored, structured, and result based activities
wherein employees who are performing below the
average demanded by the organization are expected
to do better under the PIP, which is when the line
managers in conjunction with the HR managers
monitor the performance of the employees.
 Performance
Management and Reward
Practices
Efficient reward practices help in attracting result driven
professionals who can thrive and succeed in performance-
based environments. Hence, it is a crucial motivator and may
contribute towards the enhancement of the productivity of the
employees if implemented properly.
 Job Design Practices and
Performance Management
An organization‘s performance largely depends upon
the HRM practices of which one of the major
components is the job design practices. Organizations
like Imation, Xerox, etc, motivate their employees by
designing challenging and interesting jobs. Job
designing is the process of assigning tasks to a
particular job by equally considering the
interdependency of those tasks with the other jobs.
 The job
characteristics
Model
 Skill Variety
 Task Identity
 Task Significance
 Autonomy
 Job Feedback
 Job design strategies which
improve work motivation
Job Rotation
Job Enlargement
Job Enrichment
Alternative Work Schedule options
 Compressed work weeks:
 Shorter workweek
 Flextime
 Telecommuting
 Leadership Development and
Performance Management
Leadership Development in the present century has
become a buzzword and many organizations use this
as a crucial tool for gaining a competitive advantage
in the business.
 Performance Reviews - Its
Objectives and Criterions

Performance review meetings form the basis for

enabling both the managers and the individuals to
positively explore ways for improving the
performance in the near future and to identify
solutions for resolving the issues which come in the
way of attainment of predetermined performance
standards.
 Objectives of performance
reviews are as follows
Some of the crucial objectives of performance
reviews are as follows:
• Performance planning
• Employee motivation and empowerment
• Learning and Development
• Acts as a two-way channel for communication for
discussing the roles, expectations, relationships and
work problems.
 Performance management is
an ongoing, continuous process
Performance management is an ongoing,
continuous process of communicating and clarifying
job responsibilities, priorities and performance
expectations in order to ensure mutual understanding
between supervisor and employee.
 The objectives of
Performance
Management
• Increase two-way communication between supervisors
and employees
• Clarify mission, goals, responsibilities, priorities and
expectations
• Identify and resolve performance problems
• Recognize quality performance
• Provide a basis for administrative decisions such as
promotions, succession and strategic planning, and pay
for performance
 Principles of developing a
performance management plan
 Performance management is considered a process, not an event. It
follows good management practice in which continual coaching,
feedback and communication are integral to success.
 The Performance Management Plan is primarily a communication tool to
ensure mutual understanding of work responsibilities, priorities and
performance expectations.
 Elements for discussion and evaluation should be job
 specific – not generalized personality traits. The major duties and
responsibilities of the specific job should be defined and communicated as
the first step in the process.
 Performance standards for each major duty/ responsibility should be
defined and communicated.
 Employee involvement is encouraged in identifying major duties and
defining performance standards.
 Professional development should be an important component of the plan
 Supervisor's responsibilities

• The supervisor's responsibilities are to:

• Communicate and clarify majorjob duties,
priorities and expectations.
• Establish and communicate performance standards.
• Monitor employees' performance
through observation, discussion, etc.
• Document positive and unsatisfactory performance.
• Provide continuous coaching and constructive
feedback in a timely manner.
 THE PROCESS OF PFM
The process of Performance Management is
comprised of three important parts
• Planning Manage Performance and Development;
• Monitoring Manage Performance and Development
and
• Annual Stock Taking. These occur in a specified
sequence.
 Special features that will
make
PFM
Continuous process:
Flexible:
Futuristic:
Participatory
Controlling:
Behavioral in Content
Win-Win Philosophy
 Why is Measuring Organizational
Performance Important?
Managers measure and control organizational
performance because it leads to better asset
management, to an increased ability to provide
customer value, and to improved measures of
organizational knowledge.
 Performance
Improvement
Methodology and
Techniques
Out of the performance improvement planning
process come specific performance improvement
interventions, tactics and techniques.
After interventions are made to the system, measure,
assess and analyze performance at the five
checkpoints to determine whether the expected
impact actually occurred
 DSMC/ATI Performance
Improvement Model
Step 1: Establish the Transformation Improvement
Process Management and Cultural Environment
Step 2: Define the Mission
Step 3: Set Performance Improvement Goals
Step 4 : Establish Improvement Projects and Action
Plans
Step 5: Implement Projects with Performance Tools
and Methodologies
Step 6: Evaluate
Step 7: Review and Recycle
30/07/2021 First DC meeting 30