Performance Management for Fusion

8/14/2019 Performance Management for Fusion

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Performance ManagementPerformance ManagementBY.TEAM FUSION


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TEAM LOGOTEAM LOGO

Prithwirajdeb

Gitanjali

Ratishbabu

Bharatram

Sahana

FUSION


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Performance management is the process of assessing progress towardachieving predetermined goals. It involves building on that process,adding the relevant communication and action on the progress achievedagainst these predetermined goals helping organizations achieve their strategic goals.

According to SHRM (the Society for Human Resource Management),

"performance management is the organized method of monitoring results of

work activities, collecting and evaluating performance to determineachievement of goals, and using performance information to make decisions,

allocate resources and communicate whether objectives are met."

What is a performanceWhat is a performancemanagementmanagement ??

It is likely the majority of employees equate "performance management" totheir performance appraisal form and yearly discussion with their manager about "how they are doing in their job.


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Performance Management (PM)IntroductionBasic PrinciplesDeveloping PM as integrated ProcessObjectivesFocusAppraisal

FeedbackLatest /current trends in PM


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DefinitionPurposeEssence

Scope

IntroductionIntroduction


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DefinitionDefinition

A strategic and integrated process thatdelivers sustained success to organizations

byImproving the performance of theemployees

Developing the capabilities of individualcontributors and teams


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PurposePurpose

Getting better results from the wholeorganization

Process for establishing sharedunderstanding for achieving goal

Owned and driven by line management


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EssenceEssence

A shared process between managersand the team members

The agreement of ObjectivesKnowledgeSkill and Capability (competence)RequirementsPerformance ImprovementPersonal Development Plans


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ScopeScope

Concerns everyone in the business

Assumes that the responsibility is shared


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Basic PrinciplesBasic Principles


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Basic PrinciplesBasic Principles

Translates corporate goals into Individual, Team,Department and Divisional goals

Helps to clarify corporate goals

Continuous and evolutionary process, in whichperformance improves over time

Relies on consensus and co-operation rather than control or coercion


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Basic Principles (contd.)Basic Principles (contd.)

Creates a shared understanding of what isrequired to improve performance and how thiswill be achieved

Encourages self-management of individualperformance

Requires a management style that is open andhonest and encourages two-way communicationbetween superiors and subordinates

Requires continuous feedback


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Basic Principles (contd.)Basic Principles (contd.)

Feedback loops enable the experiences andknowledge gained on the job by individuals tomodify corporate objectives

Measures and assesses all performance against jointly agreed goals

Should apply to all staff, and

Not primarily concerned with linking performanceto financial reward


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PM as IntegrativePM as IntegrativeProcessProcess


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PM as an Integrative ProcessPM as an Integrative Process

Is a force for both vertical and horizontalintegration

VERTICAL Integration of:Business strategic plans and goals withindividual and team objectives

Core values and capabilities of the organizationValues adopted and level of capability achievedby individuals


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PerformanceManagement

PayingPeople

Involving

People

DevelopingPeople

ValuingPeople

Focus of PMFocus of PM


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Focus of PerformanceFocus of PerformanceManagementManagement

Performance improvement

Employee development

Satisfying the needs and expectationsof organization's stakeholders

Communication and involvement


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Factors InfluencingFactors InfluencingPerformancePerformance

Perf = f (A,M,E)and team work Perf = f (A,M,E)and team work Ability

Technical skills

Interpersonal skills

Problem-solvingskills

Analytical skillsCommunication

skills

Physical limitations

MotivationCareer ambition

Employee conflict

Frustration

Fairness/satisfaction

Goals/expectations

EnvironmentEquipment/materials

Job design

Economicconditions

UnionsRules & policies

Managementsupport

Laws & regulations


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PM ObjectivesPM Objectives


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Why do we measure performance?

How do we measure performance?

Effective performance appraisal system

Giving appropriate feedback

ObjectivesObjectives


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Developmental reasons How might a performance

appraisal

contribute to an individualsdevelopment?Administrative reasons How might a performance

appraisalserve administrative functions?

Why is PerformanceWhy is PerformanceMeasured?Measured?


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Performance appraisal: The evaluation of apersons performance Provides feedback to employees Identifies employeesdevelopmental needs Decides promotions and rewards Decides demotions and

terminations Develops information for selectionand

placement decisions

Why is PerformanceWhy is PerformanceMeasured?Measured?


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Results based

Behavioural based

Trait based

Objective based

Subjective based

360- Degree Feedback

How is PerformanceHow is PerformanceMeasured?Measured?


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Results-based (results-oriented): measure the results produced by theemployee

Uses Use it where results matter

Types of Performance toTypes of Performance toMeasureMeasure


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Results-based (contd.): Challenges

Which results are relevant may not be obvious for all jobs

Some results are not under the employees controlMay foster results at all costs mentalityMay interfere with teamworkMay be difficult to provide effective feedback



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Behavior-based (behavior-oriented): measure the employees behaviorsMakes it easier to provide detailedfeedback

Uses Use it where how the employee produces results

matters



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Behavior-based (contd.): Challenges

Difficult to capture the full range of relevantbehaviorsDifferent behaviors can lead to the same results do we always care which behaviors were used?



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Trait-based (trait-oriented): measure theemployees abilities and other personalcharacteristics

ChallengesPoor reliability & validityWeak linkages with job effectivenessMeasurement subject to biases (racism, sexism)Difficult to provide effective feedback



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PM Appraisal MethodsPM Appraisal Methods


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Objective Measures: measure performancein terms of things we can see and count Production measures: count units produced Sales measures: count sales Personnel data: count things in the employees

personnel file, such as:Number of times late to workNumber of times absentNumber of disciplinary actions taken

Objective MeasuresObjective Measures


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Performance tests: evaluate a sample of theemployees work

Business unit performance measures:

Examples:Stock priceMarket shareProfit measures: profits, return on sales, return onassets, return on equity

UsesFor managers with business unit responsibility

Objective Measures (contd.)Objective Measures (contd.)


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Rating scale (graphic rating scale): subjectively rate the employees performanceon a labeled numeric measuring scale

Uses Used to rate overall job performance as well as

specific aspects of job performanceChallenges

Forced distribution: evaluator must place a fixed

percentage of employees in each performancecategory

Subjective measures (contd.)Subjective measures (contd.)


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Subjective measures (contd.) Behavioral Observation Scales (BOS):

evaluators rate the frequency with which an

employee engages in specific behaviors Weighted checklist: from a list of possible

employee behaviors, check off the ones thatapply to the employee

Performance AppraisalPerformance AppraisalMethodsMethods


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PM Feedback PM Feedback


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360-Degree Feedback 360-Degree Feedback

Manager

Individual

DirectReports

CustomersPeers


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Integrity safeguards: Assure anonymity Make respondents accountable

Prevent gaming of the system Use statistical procedures Identify and quantify biases

360-Degree Feedback 360-Degree Feedback


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UsesPersonal Development

Appraisal

Payments

360-Degree Feedback (contd.)360-Degree Feedback (contd.)


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Clear anchors and standards of performanceComply with the law

Decide who should appraise Train appraisers Monitor performance daily Keep diary and document

interactions Understand the behavioursimportant to job performance

Effective PerformanceEffective PerformanceAppraisalsAppraisals


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Tell and sell (persuasion)

Tell and listen (nondirective)

Problem solving (problem resolution andemployee development)

Appraisal InterviewsAppraisal Interviews


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Ask for a self assessmentInvite participationExpress appreciation and start positively

Minimize criticismChange the behaviour, not the personRefer to observable behavioursFocus on solving problemsBe supportiveEstablish goalsFollow up

Conducting theConducting theAppraisal InterviewAppraisal Interview


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Establish an appraisal plan

Eliminate rater error

Feedback training

Training RatersTraining Raters


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Management attitudeRater errors Halo effect Central tendency Leniency/strictness bias Prejudice Recency effect Subjective factors

Sources of errorSources of error


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The Recency Effect- This is where ratings are strongly effected,positively or negatively, by the staff members most recentactions rather than the staff members performance over thecourse of the year. Obviously a systematic recording of the staff members performance over the course of the year using the

journal entry process counteracts this bias.

Higher Value, Higher Rating- This is where managersgive generally higher ratings to staff members in morehighly paid jobs and generally lesser ratings to staff inlower paid jobs, even where the performance of theindividuals is similar. The belief is that managers aresometimes inadvertently influenced to give peoplehigher ratings in jobs that the manager may see as

more important.( subjective) subject to the position of


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Lack of top-management information andsupport

Unclear performance standards

Rater bias

Too many forms to completeUse of the appraisal program forconflicting purposes

Reasons Appraisal ProgramsReasons Appraisal ProgramsFailFail


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Ethical ConsiderationsEthical Considerations

Respect for the individual

Mutual respectProcedural fairness

Transparency


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Latest/recent trends in PMLatest/recent trends in PMRecent research reveals that the majority of organizations are utilizing

performance management systems / performance management software andmany are in the process of revamping their first generation systems. Accordingto Development Dimensions International (DDI), performance managementsystems are active in 91% of 3,600+ organizations .

Performance Management - Current Trends:-

Strategic HR - The Link Between Employee Performance Managementand Organizational Performance

Li k b [EPM] dLi k b [EPM] d


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Link between [EPM] andLink between [EPM] andCPM[CPM]

Increasingly companies are focusing on "strategic HR," aligning humanresources initiatives with the overall goals of the organization to improve

business success. Aligning Employee Performance Management (EPM) withCorporate Performance Management (CPM)The following are the effects :-1)*90% of companies surveyed, perceive improved management of their

workforce as key to gaining competitive advantage.2)Organizations are aligning their employee performance goals with corporate performance goals through technology solutions.HUMAN CAPITAL MANAGEMENT

* Aligning employee goals with corporate goals* Linking reward and recognition programs to performance

* Targeting learning and development toward performance gaps* Identifying skills and competencies of top performers for retention andsuccession

* Increased Automation of Performance Management and HR Functions


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Thank YouThank You


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Performance Management for Fusion