performance management systems session11
TRANSCRIPT
-
8/4/2019 Performance Management Systems Session11
1/25
Performance Management
Systems
Session: 11
Prof: Yasmin
Yasmin 1
-
8/4/2019 Performance Management Systems Session11
2/25
Books for reference
A.S. Kohli, T. Deb
Performance management system a holistic
approach
B D Singh
Performance management Herman Aguinis
PMS
R K Sahu
-
8/4/2019 Performance Management Systems Session11
3/25
What is PMS?
Process of performance planning (goal setting),
Performance monitoring and coaching,
Measuring (evaluating) individual performance
linked to organizational goals, Giving him/her feedback,
Rewarding the individual based on his/her
achievements against set performance goals andrequired competencies
And working out a plan for his/her development
Yasmin 3
-
8/4/2019 Performance Management Systems Session11
4/25
PMS Process Cycle
Yasmin 4
Performance
Planning
Performance Linked
Reward and
Development Plan
Performance
Monitoring and
Coaching
Performance
Measurement and
Feedback
-
8/4/2019 Performance Management Systems Session11
5/25
Yasmin 5
-
8/4/2019 Performance Management Systems Session11
6/25
PMS also facilitates
Career planning
Redeployment/ transfers
Career counselling Assessment of potential
Job redesign
Clarity of performance goal and direction
Yasmin 6
-
8/4/2019 Performance Management Systems Session11
7/25
Performance (definition)
The achievement of an employee against the
expectations for his/her role along clearly
defined targets for the year.
Organizational requirements based on
company goals
Role areas of the individual position
Yasmin 7
-
8/4/2019 Performance Management Systems Session11
8/25
Competency (definition)
Its a combination of knowledge, skill and
attitude required for an individual to
effectively perform in a role
Competency definitions in terms of
demonstrated behaviors
Competency criticality and proficiency
requirements for effective performance of a
role
Yasmin 8
-
8/4/2019 Performance Management Systems Session11
9/25
Potential (definition)
The capacity of the individual to handle higher
responsibilities based on his overall abilities
and current competency levels
Overall potential of an individual (capacity)
Current competency levels of the individual
The competency levels required at the higherlevels
Yasmin 9
-
8/4/2019 Performance Management Systems Session11
10/25
PMS process objective
The Evaluation objective:
Performance evaluation and assessment of the
readiness of an individual to take on higher
responsibilities To provide feedback to individuals on their
performance levels and on current competency levels
To generate data required for decisions on salary,
bonus and promotions
Yasmin 10
-
8/4/2019 Performance Management Systems Session11
11/25
PMS process objective
The Development objective: To counsel and coach subordinates so that they improve
their performance and develop competencies
To motivate subordinates through recognition and support
To strengthen supervisor subordinate relationship
To define the training requirements based on individual
competency
To diagnose individual and organizational competencies, so
that actions can be taken on problem areas
Yasmin 11
-
8/4/2019 Performance Management Systems Session11
12/25
Importance of PMS
A Performance Management System enables a business tosustain profitability and performance by linking the employees'pay to competency and contribution .
It provides opportunities for concerted personal development
and career growth . It brings all the employees under a single strategic umbrella .
Most importantly, it gives supervisors and subordinates an equalopportunity to express themselves under structured conditions
Organizations can effectively manage the performance appraisalprocess with our online performance management system
It calls for a high level of co-ordination, channeled informationflow, and timely review
Yasmin 12
-
8/4/2019 Performance Management Systems Session11
13/25
Key outputs of PMS
Individual level expectations and targets
Performance status and corrective actions
Individual performance evaluation(quantitative and qualitative)
Individual competency evaluation
Individual development plans- Training Individual potential evaluation
Yasmin 13
-
8/4/2019 Performance Management Systems Session11
14/25
PMS Steps and linkages
1. Performance planning: under this step the organizationalgoals are selected and deployed to the respectivedivisions, departments and individuals, and individualtargets for the year are set
2. Performance monitoring and coaching: this happens during thecourse of the year. Organizational goals,division/departmental and individual goals arereviewed against current performance, and course
correction and coaching is done to enhanceperformance. Mid term individual review andcorrective action planning are also part of this step
Yasmin 14
-
8/4/2019 Performance Management Systems Session11
15/25
PMS Steps and linkages
3. Individual evaluation: under this step individual levelperformance, competencies and developmentrequirements are reviewed and assessed. Feedback onthe assessment is given to the individual. Company
level moderation and finalization of performanceevaluation is also done
4. Linking the evaluation with pay and other areas: under this stepthe data generated from individual appraisal is used to
decide on salary, career progression. Competencydevelopment etc. this step also includes feedback &development planning and upgradation.
Yasmin 15
-
8/4/2019 Performance Management Systems Session11
16/25
Linkage of pms to various other
processes
Yasmin 16
PMS
Performance
Assessment
Compensation
Upgradations/
Promotions
Job Rotations and
Transfers
Training and
Development
Competency
Assessment
-
8/4/2019 Performance Management Systems Session11
17/25
PMS Includes
Work plan A document that describes the work to be completed by
an employee within the performance cycle, the performance
expected, and how the performance will be measured.
Corrective action plan A short-term action plan that is initiated whenan employees performance fails to meet expectations. Its purpose
is to achieve an improvement in performance.
Individual development plan An action plan for enhancing an
employees level of performance in order to excel in the current job
or prepare for new responsibilities.
Yasmin 17
-
8/4/2019 Performance Management Systems Session11
18/25
PMS Includes
Performance appraisal A confidential document that includesthe employees performance expectations, a summary of the
employees actual performance relative to those expectations,
an overall rating of the employees performance, and the
supervisors and employees signatures.
Fair appraisal Appraising employees in a manner that accurately
reflects how they performed relative to the expectations
defined in their work plan and in a manner that is not
influenced by factors irrelevant to performance. Performance documentation A letter, memo, completed form, or
note on which the supervisor indicates the extent to which theemployee is currently meeting expectations and provides
evidence to support that conclusion.Yasmin 18
-
8/4/2019 Performance Management Systems Session11
19/25
Performance management
contribution
Motivation to perform is increased
Self esteem is increased
Managers gain insight about subordinates
Self development
Administrative actions are more fair andappropriate
Organizational goals are made clear Employee become more competent
There is better protection from law suits
Yasmin 19
-
8/4/2019 Performance Management Systems Session11
20/25
Performance management
contribution
There is better and more timely differentiation
between good and poor performers
Supervisors view of performance are
communicated more clearly
Organizational change is facilitated
Motivation, commitment and intentions to
stay in the organization are enhanced
Yasmin 20
-
8/4/2019 Performance Management Systems Session11
21/25
Dangers of poorly managed PMS
Increased turnover
Use of misleading information
Lowered self esteem Damaged relationship
Decreased motivation to perform
Unclear rating system
Yasmin 21
-
8/4/2019 Performance Management Systems Session11
22/25
Dangers of poorly managed PMS
Employee burnout and job satisfaction
Increased risk of litigation
Unjustified demands on managers andemployees resources
Varying and unfair standards and ratings
Emerging biases
Yasmin 22
-
8/4/2019 Performance Management Systems Session11
23/25
Case study
One eg of a poorly implemented performance managementsystem resulted in a $1.2 million lawsuit. A female employeewas promoted several times and succeeded in theconstruction industry until she started working under thesupervision of a new manager. She stated in her law suit that
once she was promoted and reported to the new manager,that the boss ignored her and did not give her the samesupport or opportunity for training that her male colleaguesreceived. After eight months of receiving no feedback formher manager, she was called into his office, where the
manager told her that she was failing, resulting in a demotionand a $20,000 reduction in her annual salary. When she wonher sex discrimination law suit a jury awarded her $1.2million in emotional distress and economic damages
-
8/4/2019 Performance Management Systems Session11
24/25
Characteristics of an ideal PMS
Strategic congruence
Thoroughness
Practicality
Meaningfulness Specificity
Identification of effective and ineffectiveperformance
Reliability Validity
Acceptability and fairness
Yasmin 24
-
8/4/2019 Performance Management Systems Session11
25/25
Characteristics of an ideal PMS
Inclusiveness
Openness
Correct ability Standardization
Ethicality
Yasmin 25