Performance Management Performance Management SystemSystem

Presented by,Presented by,Dhwani B. Shah Dhwani B. Shah Parth v. PurohitParth v. Purohit

Introduction, Performance Objectives Introduction, Performance Objectives and Plansand Plans

What is Performance Management?What is Performance Management?

Systematically managing all the people in Systematically managing all the people in

an organization, for innovation, goal an organization, for innovation, goal

focus, productivity and satisfaction--it is a focus, productivity and satisfaction--it is a

goal- congruent win - win plangoal- congruent win - win plan

What is Performance Management?What is Performance Management?

Armstrong and Baron define performance Armstrong and Baron define performance management as a “strategic and management as a “strategic and integrated approach to delivering integrated approach to delivering sustained success to organizations by sustained success to organizations by improving performance of people who improving performance of people who work in them and by developing the work in them and by developing the capabilities of teams and individual capabilities of teams and individual contributorscontributors

It is integrated, because it effects four It is integrated, because it effects four types of integrationtypes of integration

VerticalVertical FunctionalFunctional Human ResourceHuman Resource GoalsGoals

What is Performance Management?

What is Performance Management?What is Performance Management?

Performance Managed Organizations are Performance Managed Organizations are likely to have the following likely to have the following characteristics:characteristics:

Measurable performance targetsMeasurable performance targets

Manage-learning linked with Manage-learning linked with organizational goals on the one hand organizational goals on the one hand and with career development on the and with career development on the otherother

What is Performance Management?What is Performance Management?

Pre-eminence of intrinsic needs of Pre-eminence of intrinsic needs of

managees without neglecting their managees without neglecting their extrinsic needsextrinsic needs

Ownership of performance management Ownership of performance management by line management rather than the by line management rather than the personnel functionpersonnel function

The Manager’s Concern and InterestsThe Manager’s Concern and Interests

The rationale for establishing a performance The rationale for establishing a performance management system does, and must emerge management system does, and must emerge from the managers’ concerns and interestsfrom the managers’ concerns and interests

To be effective, this process must start with To be effective, this process must start with identification and analysis of the managers’ identification and analysis of the managers’ performance problems and related performance problems and related management skills, in the context of the management skills, in the context of the specific organizationspecific organization

The Manager’s Concern and InterestsThe Manager’s Concern and Interests

remedying poor performers and remedying poor performers and performanceperformance

bridging gaps in performance expectationsbridging gaps in performance expectations

securing equitable rewards and punishment securing equitable rewards and punishment decisions from the managementdecisions from the management

softening performance pressures through softening performance pressures through appropriate planning, scheduling and appropriate planning, scheduling and delegationdelegation

Key to Performance ManagementKey to Performance Management

Building organizational capability and Building organizational capability and successful implementation of high-successful implementation of high-commitment management practices is a commitment management practices is a key managerial responsibilitykey managerial responsibility

High-performance management practices High-performance management practices require consistent leadership attention, require consistent leadership attention, while time and attention are the scarcest while time and attention are the scarcest of resources in most organizationsof resources in most organizations

Key to Performance ManagementKey to Performance Management

Three basic principles, which effective Three basic principles, which effective leaders use to transform their leaders use to transform their organizations into high-commitment organizations into high-commitment models of management are:models of management are:

build trustbuild trust encourage changeencourage change use appropriate measuresuse appropriate measures

Performance Management and People Performance Management and People ManagementManagement

Performance management is that part of an Performance management is that part of an

organization’s people-related function, which organization’s people-related function, which

is performed by those directly managing the is performed by those directly managing the

peoplepeople

Performance Management and People Performance Management and People ManagementManagement

Within any organization, there are atleast two Within any organization, there are atleast two levels of effort, that levels of effort, that

concern the performance of its people concern the performance of its people

Optimize individual and collective outputOptimize individual and collective output

Performance Management and People Performance Management and People ManagementManagement

effort at the organizational level, which effort at the organizational level, which

determines the organization’s internal determines the organization’s internal

environmentenvironment

effort at the managerial level, which effort at the managerial level, which constitutes core of the leader-manager constitutes core of the leader-manager role--- what each manager does to role--- what each manager does to supervise her manageessupervise her managees

Performance Management SystemPerformance Management System

Like any system, it has relatively Like any system, it has relatively autonomous, but interdependent and inter-autonomous, but interdependent and inter-related parts, which ensure effective and related parts, which ensure effective and smooth functioning of the total systemsmooth functioning of the total system

Organizational and Individual Organizational and Individual Performance PlansPerformance Plans

Convergent goals and expectations in anConvergent goals and expectations in an

organization for group and individual organization for group and individual

performance would naturally flow from theperformance would naturally flow from the

organization’s performance plans organization’s performance plans

Organizational and Individual Organizational and Individual Performance PlansPerformance Plans

The organization’s mission and goals The organization’s mission and goals

and its long-range or strategic plansand its long-range or strategic plans

The organization’s annual operating The organization’s annual operating

plans, circumscribing the team or plans, circumscribing the team or

project-level performance goalsproject-level performance goals

Organizational and Individual Organizational and Individual Performance PlansPerformance Plans

Organizational values and work Organizational values and work

ethics to be observed in course of ethics to be observed in course of achieving the goalsachieving the goals

Organization-wide job descriptions, Organization-wide job descriptions, indicating skills and competencies indicating skills and competencies neededneeded

Performance StandardsPerformance Standards

Organizations need performance standards, Organizations need performance standards, at the level of individual managees as well as at the level of individual managees as well as at the project or functional or programmatic at the project or functional or programmatic levels levels

Organizations want to standardize precise Organizations want to standardize precise expectationsexpectations

Performance StandardsPerformance Standards

Managees need equitable and Managees need equitable and

consistent standards for their individual consistent standards for their individual performance, comparable to others in performance, comparable to others in the organization, to be monitored or the organization, to be monitored or assessed byassessed by

Performance StandardsPerformance Standards

Managees expect that managers Managees expect that managers

everywhere in the organization will use everywhere in the organization will use identical--at least similar---standards to identical--at least similar---standards to measure the performance of competing measure the performance of competing positionspositions

Thank you