Performance

Management
Created by: Gurjeit (23), Maninder (6), Manish, Davinder, Manpreet (29), Suman
2 PERFORMANCE
Ø manner in which something or somebody functions,
operates, behaves

Ø way in which somebody does a job, judged by its

effectiveness
3 Summary

1. Basis Of Performance Management

2. Process Of Performance Management

3. Activities Of Performance Planning

4. Performance Assessment

5. Performance Review

6. 360 degree Feedback

7. Improving Performance

8. Performance Management & Reward

9. Performance Management Development

Programme
4

BASIS OF PERFORMANCE
MANAGEMENT
5 Meaning

 Systematic process for improving

organizational performance by developing
the performance of individuals and teams


 Means of getting better results from the

organization, teams and individuals by
understanding and managing performance
within an agreed framework of planned
goals, standards and competence
requirements
6 Understanding

 Meaning of performance

 Significance of values

 Meaning of alignment

 Managing expectations

 Significance of discretionary behaviour

7 Aim

 Establish high performance culture in which

individuals and teams take responsibility for
continuous improvement of business
processes and for their own.


 Expectations to be defined and agreed in terms

of role responsibilities and accountabilities
(expected to do), skills (expected to have)
and behaviours (expected to be)


 Purpose - focus people on doing right things by

achieving goal clarity to benefit of
8 By Organizations

 Proactively managing and resourcing

performance against agreed
accountabilities and objectives
-ICI Paints
 The process and behaviours by which
managers manage the performance of
their people to deliver a high-achieving
organization
-Standard Chartered Bank

 Focusing employees’ tasks on the right

things and doing them right. Aligning
everyone’s individual goals to the goals
9 Characteristics
 Planned, continuous and flexible process

 Primary elements – agreement, measurement,

feedback, positive reinforcement and dialogue

 Concerned with measuring outputs in shape of

delivered performance compared with
expectations expressed as objectives

 Concerned with inputs and values

 Concerned with individual performance but can

be applied to teams
10 Concerns

 Concern with outputs, outcomes, process and

inputs

 Concern with planning

 Concern with measurement and review

 Concern with continuous improvement

 Concern with continuous development

 Concern for communication

 Concern for stakeholders

 Concern for fairness and transparency

11 Comparison

Performance Appraisal
  Performance Management

 The formal assessment  A continuous and more

and rating of comprehensive,
individuals by their natural process of
managers at an management that
annual review clarifies mutual
meeting expectations,
emphasizes the
support role of
managers who are
12 Comparison

1) Top-down assessment 1) Joint process through

dialogue
2) Annual appraisal
meeting 2) Continuous review with
one or more formal
3) Use of ratings reviews
4) Monolithic system 3) Ratings less common
5) Focus on quantified 4) Flexible process
objectives
5) Focus on values and
6) Often linked to pay behaviours as well as
objectives
7) Bureaucratic –
complex paperwork 6) Less likely to be a direct
link to pay
8) Owned by the HR
department 7) Documentation kept to a
minimum
13

PROCESS OF PERFORMANCE
MANAGEMENT
14 Cycle
15
16 Stages/Working
 High performance - Reinforce through recognition
 Low performance - Coaching, counseling
Start year During year End year
Performance Monitoring and review Main performance
agreement against review
performance
agreement

Actual Performance

Improved
Performance
17

ACTIVITIES OF PERFORMANCE
PLANNING

v Role Profile
v Objective Setting
v Performance Measures
18 Role Profile

 Developing role profiles

 Defining key result areas

 Defining technical competencies

 Defining behavioural competencies

 Core values
19 Role Plays

 Top Managers

 Employees

 HR
20 Objective Setting

 Ongoing role or work objectives

 Targets

 Tasks/projects

 Values

 Behavioural expectations
21 Good Objective ?

 Consistent  S=
Specific/stretchi
 Precise ng
 Challenging  M= Measurable
 Measurable  A = Achievable
 Achievable  R = Relevant
 Agreed  T = Time framed
 Time related
 Focused on
teamwork
22
Integration of
Objectives
23 Measurement
Output measures:
 Outcome measures:


1. financial measures – 1. attainment of a standard

income, shareholder (quality, level of
value, added value, service etc)
rates of return, costs
2. changes in behaviour
2. units produced or
processed, throughput 3. completion of
work/project
3. level of take-up of a
service 4. acquisition and effective
use of additional
4. sales, new accounts knowledge and skills

5. time measures – speed 5. reaction – judgement by

of response or others, colleagues,
turnaround, internal and external
24
Criteria For
Performance Measures
 Strategic goals

 Roles and objectives of individuals

 Focus on outputs, outcomes, inputs and

behaviours

 Indicate the data or evidence

 Verifiable

 Precise

 Feedback and action

25 Summary

1. Basis Of Performance Management 

2. Process Of Performance Management 

3. Activities Of Performance Planning 

4. Performance Assessment

5. Performance Review

6. 360 degree Feedback

7. Improving Performance

8. Performance Management & Reward

9. Performance Management Development

Programme
26

PERFORMANCE ASSESSMENT
27
28
Criteria for Assessing
Performance

 Achievements in relation to objectives

 Level of knowledge and skills possessed and

applied (competences)

 Behaviour in the job as it affects performance

(competencies)

 Degree to which behaviour upholds the core

values of the organization

 Day-to-day effectiveness
29
Personal Development
Planning
 Coaching

 Adopting a role model (mentor)

 Observing and analysing what others do

(good practice)

 Extending the role (job enrichment)

 Involvement in other work areas

 Action learning

 Guided reading
30 Performance Agreement

 Role requirements
 Objectives
 Performance measures and indicators
 Knowledge, skill and competence
 Corporate core values or requirements
 A performance plan
 A personal development plan
 Process details
31

PERFORMANCE REVIEW
32 Performance Review

 Objective:

 Planning

 Motivation

 Learning and development

 Communication
33
Problems in Conducting
Performance Review
 Identifying performance measures and criteria
for evaluating performance

 Collecting factual evidence about performance

 Existence of bias on the part of managers

 Resolving conflict between reviewers and the

people they review

 Defensive behaviour exhibited by individuals in

response to criticism
34
Performance Review
Meeting
 Work to a clear structure
 Create the right atmosphere
 Provide good feedback
 Use time productively
 Use praise
 Let individuals do most of the talking
 Invite self-assessment
 Discuss performance, not personality
 Encourage analysis of performance
 Agree measurable objectives and a plan of
action
35

360-DEGREE FEEDBACK
36 Feedback

 Build feedback into the job

 Provide feedback on actual events
 Describe, don’t judge
 Refer to specific behaviours
 Ask questions
 Select key issues
 Focus
 Provide positive feedback
37
360 degree Feedback
Model
38 Methodology

 Questionnaire

 Ratings

 Data processing

 Feedback

 Action
39
Development &
Implementation
 Define objectives
 Decide on recipients
 Decide on who will give the feedback
 Decide areas of work/behaviour on which feedback
to be given
 Decide on the method of collecting the data
 Decide on data analysis and presentation
 Plan the initial implementation programme
 Analyse the outcome of the pilot scheme
 Plan and implement the full programme
 Monitor and evaluate
40 Merits vs. Demerits
 Evaluates methods  Ignores performance
applied to achieve in terms of
targets reaching goals
 Reveals strengths and  Colleague’s
weaknesses in responses tend to
management style be biased
 Forces inflexible  Assesses deny the
managers to initiate truth of negative
self change feedback
 Create an  The system can be
atmosphere of used to humiliate
teamwork and people
improvement
 Linking findings to
41 Criteria For Success

 Support of top management

 Commitment

 Basis for development

 Questionnaire

 Communication and training programmes

 No one feels threatened

 Bureaucracy
42 Summary

1. Basis Of Performance Management 

2. Process Of Performance Management 

3. Activities Of Performance Planning 

4. Performance Assessment 

5. Performance Review 

6. 360 degree Feedback 

7. Improving Performance

8. Performance Management & Reward

9. Performance Management Development

Programme
43

IMPROVING PERFORMANCE
44
Organizational
Performance
45 Team Performance

 Setting objectives

 Work objectives

 Team working objectives

 Work plans

 Team performance reviews

46
Individual
Performance
 Select the goal

 Define expectations

 Define performance measures

 Plan

 Act

 Monitor

 Extend the process

47

PERFORMANCE
MANAGEMENT & REWARD
48
Non-Financial
Rewards

 Recognition
 Provision of opportunities to achieve
 Skills development
 Career planning
 Job engagement
 Commitment
49 Financial Rewards

Pay Matrix
50

PERFORMANCE
MANAGEMENT
DEVELOPMENT PROGRAMME
51
Developing
Programme
52
53 Summary

1. Basis Of Performance Management 

2. Process Of Performance Management 

3. Activities Of Performance Planning 

4. Performance Assessment 

5. Performance Review 

6. 360 degree Feedback 

7. Improving Performance 

8. Performance Management & Reward 

9. Performance Management Development

Programme 