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Program : MBA
Semester : IV
Subject Code : MU0016
Subject Name : Performance Management and Appraisal
Unit number : 4
Unit Title : Process of Performance Management
Lecture Number : 4
Lecture Title : Process of Performance Management
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Objectives :
To explain performance planning.
To describe how expectations are designed.
To explain performance measurement.
To discuss performance review.
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Process of Performance Management
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Lecture Outline
Introduction
Performance Planning
Expectations
Objectives
Performance Measurement
Performance Review Guidelines used to provide Feedback
Continuous Process of Performance Management
Performance Rating
Coaching
Documentation
Summary
Check Your Learning
Activity
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Introduction
Performance management system consists of many interconnectedprocesses which takes place throughout the year.
Performance management process is also related to how employees
monitor and improve their performance, measuring performance anddocumenting the results of performance management plans and
reviews.
In this session we will discuss :
Performance planning
Performance measurement
Performance review
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Performance Planning
Performance planning:
Focuses on setting the direction, accepting performance agreements
and agreeing personal improvement plans.
Is the first step of an effective performance management process.
Is concerned with improving employee performance by helping them
to learn and providing them with the support they need to do well,
now and in the future.
Involves a meeting of about an hour or so between an appraiser and
the employee being assessed.
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Expectations
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Expectations are defined and agreed in the form of role profiles.
Expectations are described as short or medium term targets, the
extension of knowledge and skills, keeping the core values of the
organisation and meeting behavioural requirements.
Expectations should be defined based on a role profile which sets out
the overall purpose of the role and the important result areas it
contains.
Role profiles define the overall purpose of the role, its reporting
relationships and key result areas.
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Objectives
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Managing expectations is based upon an agreement between the
manager and the employee on the objectives of the job under
discussion and how its attainment would be measured.
Objectives can be work-related, referring to the achievement of
role requirements.
The various types of objectives are:
On-going role objectives
Targets Tasks/projects Values Behaviour Developmental Performance improvement
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Performance Measurement
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The criteria that will be used to assess the extent to which objectives havebeen achieved is identified and agreed upon during the planning stage.
The performance metrics can be categorised as:
Finance
Output
Impact
Reaction
Time
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Reviews give managers and the individual members of their teams achance to break and reflect on the key issues of personal development
and performance improvement.
The objectives of performance reviews are:
Motivation
Development
Communication
Performance Review
Unit-4 Process of Performance Management Framework
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Guidelines used to provide Feedback
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Feedback should be given on real results or observed behaviour. It should be
supported by evidence. It should not be based on assumptions about the
reason for the behaviour.
Feedback should be given immediately. It should be given as soon as possible
after the performance review so that it makes a strong impact.
Feedback should not be a judgement. It should be presented as a description
of what has happened.
Feedback should focus on aspects of performance the employee can improve.
Feedback should make employees feel empowered.
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Continuous Process ofPerformance Management
A basic part of the continuing process of management is performancemanagement . This is based on a belief which emphasises that:
Performance has to be continuously improved .
Skills and capabilities Have to be constantly development .
An organisation should constantly develop and apply the learninggained from experience and analyse the factors that have producedhigh levels of performance.
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i f f k
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Performance Rating
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Coaching
Coaching needs may arise from formal or informal performancereviews, but opportunities for coaching will emerge during the normalday-to-day activities.
As part of the normal process of management coaching:
Make employees aware of their performance.
Make sure that employees understand what they need to know to beable to complete their task adequately.
Use appropriate situations to promote learning
Encourage people to take up higher-level issues and helping themidentify how they would tackle them.
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Documentation
It is very important to maintain records of the role profiles, theagreed objectives and the improvements made.
The essential information to be recorded on a form are :
The key result areas from the role profile.
The objectives agreed for each key result area.
The values or competency headings.
The assessment of performance against each key result area
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Summary
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Performance management is a continuous process that
happens through out the year.
The first step of an effective performance managementprocess is performance planning.
Performance management is basically about managingexpectations.
It is very important to know what the present performanceis, in order to improve performance. Hence, performancemeasurement is very important.
The objectives of performance reviews are motivation,
development and communication.
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Check Your Learning
1. What is performance planning?
Ans. Performance planning focuses on setting the direction, accepting
performance agreements and agreeing personal improvement plans.
2. Mention the categories of performance metrics.
Ans. The performance metrics are classified into finance, output, impact,
reaction, and time.
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Activity
ABC is a software development company. Assume that you are
the manager of the HR department in ABC. How would you go about
planning performance?
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