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What is Performance Management?

In order to understand performance

management we need to understand

constituents of performance.

Without understanding these constituents, it

is impossible to have true understanding of

performance management.

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Constituents of Performance

Capability

to do

Work Effortx

Opportunity

to dox

Level of

Performance

(IndividualAttributes)

(Level ofMotivation)

(OrganizationalSupport)

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Definition of Performance Management

Performance management is about improving

the employee performance through improving

their capacity and willingness to perform and

providing all necessary resources and

opportunities in that regard.

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Performance Management Process(Performance Management Cycle)

Stage 1

Planning the Performance

Stage 2

Supporting the Performance

Stage 3

Quarterly formal performance

appraisal

Stage 5

Administrative Decisions

i. Defining performance goals

[Ability to do x Work Effort x Opportunity to do]

Collection of information about

performance level and comparing

the performance outcome with the

desired ones

Revisiting the support functions

Stage 4

Integration of the quarterly reports to

work out average score and assign rating

Giving face-to-face informal feedback

and identifying cause of less than

optimum performance if so.

Taking developmental & motivational

measures

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The above cycle shows that performance

management is based on the agreement of

objectives, knowledge, skill and capability

requirements, performance improvement,and personal development plans.

It involves the joint and continuing review of

performance against the objectives,requirements and plans and the agreement

and implementation of improvement and

further development plans.

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The role-players in Performance

Management processStage 1

Planning the Performance

Stage 2

Supporting the Performance

Stage 3

Quarterly formal performance

appraisal

Stage 5

Administrative Decisions

i. Defining performance goals

[Ability to do x Work Effort x Opportunity to do]

Collection of information about

performance level and comparing

the performance outcome with the

desired ones

Revisiting the support functions

Stage 4

Integration of the quarterly reports to

work out average score and assign rating

Giving face-to-face informal feedback

and identifying cause of less than

optimum performance if so.

Taking developmental & motivational

measures

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From the above exercise, it is clear that

performance management concerns everyone

in the business not just managers.

It rejects the assumption that only HR

function is responsible for the performance

management process and replaces it with the

belief that responsibility is shared betweenmanagers, individuals/teams and the HR.

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Difference between PM & PA

Performance Management

PM is a natural and holistic process of

management, not a system or a technique.

In its fullest sense, it is based on the belief

that everything that people do at work at anylevel contributes toachieving the overall

purpose of the organization.

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It relies on consensus and co-operation ratherthan control or coercion. Hence, it entailsagreedgoals, rather than setgoals, and this

agreement is required to be reached throughthe open dialogue between managers andindividuals.

In other words, PM develops a partnership inwhich responsibility is shared and mutualexpectations are defined.

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It embraces all formal and informal measures

adopted by an organization to increase

corporate, team and individual effectiveness

and to continuously develop their knowledge,

skill and competence.

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It is a continuous and evolutionary process, in

which performance improves over time

It encourages self-management of individual

performance; requires a management style

that is open and honest and encourages

continuous feedback loops.

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Finally, performance management is

concerned with communication and

involvement. It creates a climate in which a

continuing dialogue between managers and

the members of their teams takes place in

order to define expectations and share

information on the organizations mission,values and objectives.

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Performance Appraisal

Performance appraisal is simply formalassessment and rating of individuals by their

managers at usually an annual reviewmeeting.

In this sense, it is often carried out with an

audit approach

concentrating on what hadgone wrong, rather than looking forward tofuture development needs.

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Performance appraisal practiced by most of

the organizations mostly exists in isolation

with hardly any link with business needs.

It is certainly an isolated system, run by the HR

department in absence of any performance

goals, standards and managerial support

involved, that functions once a year and isthen forgotten.

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Accordingly, performance appraisal too often

degenerates into a dishonest annual ritual and

line managers have frequently rejected it as

being time-consuming and irrelevant.

In its best use, it is part of the performance

management system rather than a system by

itself.

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Role of Job Profile in Performance

Management

Exercise

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Job profiles provide performance criteria/goals

that are the means of determining successful

or unsuccessful performance.

Such performance criteria/goals are:

Direct performance criteria/goals (TDRs)

Instrumental performance criteria/goals (KSAOs)

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Issues with the Performance Criteria

The bigger concern is criteria contaminationthe extent to which performance criteriacontain elements that are not relevant to the

particular job and that should not be includedin the performance goals.

Criteria/goals contamination is thoughpossible with all kinds of performance, it ismostly happens with the instrumentalperformance.

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For example, the performance criteria/goals

for a bookkeeper should be knowledge of

accounting procedures, mathematical skills,

and producing work that is neat and error-free, not with personal appearance or oral

communication skillsfactors that are clearly

not relevant to the effective performance of abookkeeper's job.

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However, for a public relations representative,

personal appearance and communication

skills may be relevant performance

criteria/goals.

So , in instrumental performance, a

performance appraisal should cover only the

specific KSAOs needed to perform a jobsuccessfully.

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Other concern is the criteria/goals deficiency

the degree to which the goals do not containthe required performance sufficiently

Criteria/goals deficiency occurs when themeasurement of the performance criteria isincomplete.

Criteria/goals contamination and deficiencycan be minimized through effective jobanalysis (Job Profile).