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Lecture#6: Performance Management

Performance management is a systematic process for improving organizational performance by developing the performance of individuals and teams. It focuses on planning, monitoring, developing and reviewing employee work performance. The key objectives of performance management are to empower and motivate employees to perform at their best and maximize their abilities to benefit themselves and the organization. It helps identify training needs, recognize high performers, address underperformance, and make decisions regarding rewards, promotions and retention.

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96 views23 pages

Lecture#6: Performance Management

Performance management is a systematic process for improving organizational performance by developing the performance of individuals and teams. It focuses on planning, monitoring, developing and reviewing employee work performance. The key objectives of performance management are to empower and motivate employees to perform at their best and maximize their abilities to benefit themselves and the organization. It helps identify training needs, recognize high performers, address underperformance, and make decisions regarding rewards, promotions and retention.

Uploaded by

faizan ali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Lecture#6

Performance management

1
Performance
Performance refers to the level of achievement of the
task that make up an employee’s job.

Performance is often defined simply in output terms – the


achievement of quantified objectives.

But performance is a matter not only of what people


achieve but how they achieve it.

Performance refers to the accomplishment of a


given task measured against preset known standards
of accuracy,  cost, and speed.
2
The concept of performance has been expressed by
Brumbach as follows: ‘Performance means both
behaviors(how individual carry his work/task, amount
of effort, care, approach, creativity, skill) and results.

when managing performance both inputs (behaviour) and


outputs (results) need to be considered.

High performance results from appropriate behaviour,


especially flexible behaviour, and the effective use of the
required knowledge, skills and competencies.

3
Performance management

Performance management can be defined as a


systematic process for improving organizational
performance by developing the performance of
individuals and teams.

Performance management is the process of


‘Directing and supporting employees to work as
effectively and efficiently as possible in line with
the needs of the organisation’ (Walters).
4
Managing performance is about coaching,
guiding, motivating and rewarding colleagues
to help unleash potential and improve
organisational performance. Where it works well
it is built on excellent leadership and high quality
coaching relationships between managers and
teams’ (Halifax BOS).

5
Performance management focuses on future
performance planning and improvement.

Performance management is a strategic approach


to delivering sustained success to organisations by
improving the performance of the people who
work in them and by developing the capabilities of
teams and individual contributors’ (Armstrong and
Baron).

6
Performance management is a continuous and flexible
process that involves managers and those whom they
manage acting as partners within a framework that sets
out how they can best work together to achieve the
required results.

It relies on agreement and cooperation rather than


control or by force.

Performance management is a planned process of which


the primary elements are agreement,
measurement(Performance appraisal techniques) ,
7 feedback and dialogue(communication).
Performance management is a process of people
management in which the primary objective is the
establishment of a culture in which individuals and
groups take responsibility for the achievement of high
levels of organisational performance through
enhancement and full utilisation of their own skills,
behaviour and contributions.

The focus is on development, although performance


management is an important part of the reward system.

Pay for performance


8
Performance management (PM) includes
activities which ensure that goals are consistently
being met in an effective and efficient manner.

Performance management can focus on the


performance of an organization, a department, an
employee, or even the processes to build a
product or service, as well as many other areas.

9
Performance management is concerned with the
encouragement of productive flexible behaviour.

As defined by Purcell and his team at Bath University


School of Management , ‘flexible behaviour refers to the
choices that people make about how they carry out their
work and the amount of effort, care, innovation and
productive(useful or creative) behaviour they display. It
is the difference between people just doing a job and
people doing a great job.’

10
Objectives of performance management 

Empowering, motivating and rewarding


employees to do their best (Armstrong World
Industries).

Maximizing the abilities of individuals and


teams to benefit themselves and the organization.

To enable the employees towards achievement of


superior standards of work performance.
11
 

To help the employees in identifying the


knowledge and skills required for performing the
job efficiently as this would drive their focus
towards performing the right task in the right
way.

Boosting the performance of the employees by


encouraging employee empowerment, motivation
and implementation of an effective reward
mechanism.
12
Promoting a two way system of communication between
the supervisors and the employees for clarifying
expectations about the roles and accountabilities.

communicating the functional and organizational goals

providing a regular and a transparent feedback for


improving employee performance and continuous
coaching.

Identifying the barriers to effective performance and


resolving those barriers through constant monitoring,
13
coaching and development interventions.
Creating a basis for several administrative decisions like
strategic planning, succession planning, promotions and
performance based payment.

Promoting personal growth and advancement in the


career of the employees by helping them in acquiring the
desired knowledge and skills.

14
Purpose of performance Management system

(1) The work performed by employees achieve the work of


the organization.

(2) Employees have an understanding of the quality and


quantity of work expected from them

(3) Employees receive ongoing information about how


effectively they are performing relative to expectations

15
(4)  Awards and salary increases based on employee
performance are distributed accordingly

(5)Opportunities for employee development are identified

(6) Employee performance that does not meet expectations


is addressed

16
It is a source of valid and useful information for making
decisions about employees

 including salary adjustments,

 promotions,

 employee retention or termination,

 recognition of superior performers,

 Identification of poor performers.

17
It includes feedback, which allows managers to
coach employees and help them improve performance
on an ongoing basis.

18
Benefits of a Performance Management System

When roles and responsibilities are clear ,motivation is


increased.

If your team members know what they are supposed to be doing,
there is no loss of activity due to confusion or uncertainty.

When expectation are clear ,employees are more likely to take


ownership of their work and to be committed to the expected
outcomes.

Ensuring that the employees understand the importance of their


contributions to the organizational goals and objectives.
19
Facilitating effective communication throughout the
organization.

Facilitating a cordial and a harmonious relationship


between an individual employee and the line manager
based on trust and empowerment.

Ensuring each employee understands what is expected


from them and equally establishing whether the employees
possess the required skills and support for fulfilling such
expectations.

20
Marginal performers can be spotted and given
greater guidance and direction.

once employee skill levels are properly identified and


you’ve determined whether you’re functioning
effectively as a manager, you can focus fully on
developing your own career goals.

you will be able to make the best use of your


employees’ abilities by becoming more aware of each
person’s strengths and areas requiring improvement.

21
you can isolate unusual employee behavior and
performance; that is, you can identify outstanding
performers and provide them with additional
incentives and more challenging work
assignments.

This benefits employees by ensuring a mutual


understanding of the scope and nature of their job,
negating the likelihood of hearing them say, ‘‘I
didn’t know I was expected to do that!’’
22
Employees also learn how well they have been performing
in relation to their areas of responsibility. This can lead to a
discussion of helpful training opportunities, as well as a
dialogue about future goals and career development.

Allowing organizations to determine whether there is


sufficient alignment between their strategic goals and
employee goals.

Performance Management/appraisal systems can help


protect organizations against discrimination allegations by
providing an element of consistency; that is, ensuring that
all similarly classified employees are evaluated based on the
same criteria.
23

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