Performance managementPerformance management

Performance managementPerformance management

DefinitionDefinition

A process or set of processes for establishing shared A process or set of processes for establishing shared understanding about what is to be achieved, and understanding about what is to be achieved, and managing and developing people in a way which managing and developing people in a way which increases the probability that it will be achieved in the increases the probability that it will be achieved in the short and longer term.short and longer term.

Overall aimOverall aim

To establish a culture in which individuals and groups take To establish a culture in which individuals and groups take responsibility for the continuous improvement of responsibility for the continuous improvement of business processes, and of their own skills and business processes, and of their own skills and contributions. contributions.

The basics of performance managementThe basics of performance management I. I.

Communication of a vision of objectives and Communication of a vision of objectives and values to all employeesvalues to all employeesSetting departmental and individual performance Setting departmental and individual performance targets linked to business objectives targets linked to business objectives Regular performance reviews throughout the yearRegular performance reviews throughout the yearFormal staff appraisal using one or more of the Formal staff appraisal using one or more of the following:following:

competenciescompetenciesobjectivesobjectivesskills acquisitionskills acquisitionaccountabilitiesaccountabilitiesoutput levelsoutput levelsself assessmentself assessment

The basics of performance managementThe basics of performance management II. II.

Performance related pay or Performance related pay or performance related bonusesperformance related bonuses

A thorough training and A thorough training and development system to development system to address identified training address identified training needsneeds

Career counsellingCareer counselling

Organisational management Organisational management reviewsreviews

Performance planningPerformance planning

BuildingBuilding a development driven system means focusing a development driven system means focusing everyone on what is important.everyone on what is important.

Vision

Where we want to be

Values

How we want to be

Business planning

Key steps this year

Departmental objectives agreed

Individual objectives agreed

Facilitation required

Training required

The performance management processThe performance management process

Vision Values

Business planning

Departmental objectives agreed

Individual objectives agreed

Informal reviews of progress

Continuous Re-inforcing

Coaching

Annual reviewJob profile

Objectives

Job profiles

Training needs

Personal development needs

Career development

Sucession plans

Performance planning

Performance managing

Performance review

Goal settingGoal settingChallenge

Goal difficultyGoal claritySelf-efficacy

Moderators

- Ability - Feedback

- Goal commitment - Task complexity

Mediators Direction

EffortPersistence

Performance

Rewards

SatisfactionConsequences

Goal characteristics and performanceGoal characteristics and performance

Goal characteristicsGoal characteristics Performance tendencyPerformance tendencySpecific and clearSpecific and clear HigherHigher

VagueVague LowerLower

Difficult and challengingDifficult and challenging HigherHigher

Set participativelySet participatively HigherHigher

Accepted by employeesAccepted by employees HigherHigher

Rejected by employeesRejected by employees LowerLower

Accompanied by positive Accompanied by positive incentivesincentives

HigherHigher

There are three different approaches for doing appraisal. There are three different approaches for doing appraisal. (Employees can be appraised against)(Employees can be appraised against)

absolute standardsabsolute standards

Measure an employee’s performance without comparing Measure an employee’s performance without comparing with any other employeewith any other employee

relative standardsrelative standards

Evaluating an employee’s performance by comparing Evaluating an employee’s performance by comparing the employee with other employeethe employee with other employee

objectives (MBO)objectives (MBO)

This performance appraisal method includes mutual This performance appraisal method includes mutual objective setting and evaluation based on the objective setting and evaluation based on the attainment of specific objectivesattainment of specific objectives

Absolute standardsAbsolute standards

Essay appraisal:Essay appraisal: A performance appraisal method A performance appraisal method whereby an appraiser writes a narrative about the whereby an appraiser writes a narrative about the employee.employee.

Critical incidents:Critical incidents: Significant job related behaviours. Significant job related behaviours.

Checklist appraisal:Checklist appraisal: A performance appraisal type in A performance appraisal type in which a rater check off the attributes of an employee that which a rater check off the attributes of an employee that apply.apply.

Graphic rating scale:Graphic rating scale: A performance appraisal method that A performance appraisal method that lists a number of traits and a range of performance for lists a number of traits and a range of performance for each.each.

Behaviorally-anchored rating scale:Behaviorally-anchored rating scale: A performance A performance appraisal technique that generates critical incidents and appraisal technique that generates critical incidents and develops behavioral dimensions of performance. The develops behavioral dimensions of performance. The evaluator appraises behaviors rather than traits.evaluator appraises behaviors rather than traits.

Relative standardsRelative standards

Group order ranking:Group order ranking: A relative standard of A relative standard of performance characterized as placing employees into a performance characterized as placing employees into a particular classification such as the „top one-fifth.”particular classification such as the „top one-fifth.”

Individual ranking:Individual ranking: Ranking employee’s Ranking employee’s performance from highest to lowest.performance from highest to lowest.

Paired comparison:Paired comparison: Ranking individual’s Ranking individual’s performance by counting the number of times any one performance by counting the number of times any one individual is the preferred member when compared with individual is the preferred member when compared with all other employees.all other employees.

Tha basic elements of performance Tha basic elements of performance managementmanagement

Reflects an organization’s key values with regard to Reflects an organization’s key values with regard to management of people.management of people.

A system in place for the review of individual performance.A system in place for the review of individual performance.

Clear definition of jobClear definition of job

Mutual objective settingMutual objective setting

Clearly understood reward systemClearly understood reward system

Establish training needs Establish training needs

Development and succession planningDevelopment and succession planning

Identification of high flyersIdentification of high flyers

Strenghtening of manager/ subordinate relationshipsStrenghtening of manager/ subordinate relationships

Direct impact on motivationDirect impact on motivation

Vehicle for improving competence at all levelVehicle for improving competence at all level

Vehicle for culture changeVehicle for culture change

http://http://wesley.stanford.wesley.stanford.edu.hr/edu.hr/docs.Perf_Eval0docs.Perf_Eval01-02Form1.doc1-02Form1.doc

http://http://wesley.stanford.eduwesley.stanford.edu/hr//hr/docs.Performance_docs.Performance_Review.docReview.doc