Sourav Bhattacharjee

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    Performance Management

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    2 Outline

    Introduction to Performance Management

    Distinction between Performance &Performance Appraisal

    Performance Planning for ClarityAccountability & Effectiveness

    Performance Management System- Stages

    360 degrees or MAFS

    Implementing PMS

    Potential Appraisal

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    3

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    4 Introduction

    Systematic process for improvingorganizational performance by

    developing the performance ofindividuals and teams

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    Strategic and integrated approach todelivering sustained success to

    organizations by improving theperformance of the people who workin them and by developing thecapabilities of teams and individual

    contributors(Armstrong

    and Baron, 4)

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    The process of Directing andsupporting employees to work as

    effectively and efficiently as possiblein line with the needs of theorganization (Walters, 3)

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    Aim Of Performance

    Management

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    Provide for expectations to be definedand agreed in terms of role

    responsibilities and accountabilities,skills and behaviors

    To develop the capacity of people tomeet and exceed expectations and toachieve their full potential

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    Characteristics Of

    Performance Management

    Planned, continuous and flexibleprocess

    Concerned with measuring outputs inthe shape of delivered performancecompared with expectations expressedas objectives

    It is based on the agreement of rolerequirements, objectives andperformance improvement and

    personal development plans

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    Involves the joint and continuingreview of achievements against

    objectives, requirements and plans

    It is based on the principle of

    management by contract andagreement rather than managementby command.

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    Concerns Of Performance

    Management

    Achieve futuresuccess

    Definingexpectations

    expressed asobjectives and inbusiness plans

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    Concern with measurement

    and review

    Measurement of results

    Reviewing progress towards achievingobjectives as a basis for action

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    Concern with continuous

    improvement

    Striving to reach higher and higherstandards in organization will provide

    a series of incremental gains that willbuild superior performance

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    Establishing a culture in whichmanagers, individuals and groups

    take responsibility for the continuousimprovement of business processesand of their own skills, competenciesand contribution.

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    17 Concern for communication

    Creating a climate in which acontinuing dialogue between

    managers and the members of theirteams takes place

    Establishes mutual understanding ofwhat is to be achieved and aframework for managing anddeveloping people to ensure that itwill be achieved

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    18 Concern for stakeholders

    Satisfying the needs and expectationsof all the organizations stakeholders owners, management, employees,customers, suppliers and the generalpublic

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    19

    Concern for fairness and

    transparency

    Four ethical principles that should govern theoperation of the performance management

    process:

    respect for the individual

    mutual respect

    procedural fairness

    transparency of decision making

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    Performance Management

    v/s Performance Appraisal

    Formal assessment and rating ofindividuals by their managers at,

    usually, an annual review meeting

    In contrast performance management

    is a continuous and much wider, morecomprehensive and more naturalprocess of management

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    Performanceappraisal

    Performancemanagement

    Top-downassessment Joint processthrough dialogue

    Annual appraisalmeeting

    Continuous reviewwith one or moreformal reviews

    Use of ratings Ratings lesscommon

    Monolithic system Flexible process

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    Focus on quantifiedobjectives

    Focus on values andbehaviors as well as

    objectivesOften linked to pay Less likely to be a

    direct link to pay

    Bureaucratic

    complex paperwork

    Documentation kept

    to a minimumOwned by the HRdepartment

    Owned by linemanagers

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    Performance Planning for Clarity

    Accountability & Effectiveness

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    Performance Planning is thesystematic definition of activities that

    an employee is expected toundertake and goals that he isexpected to achieve in order tocontribute to the overall growth of the

    organization It is the first step in the Performance

    management process

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    Performance Appraisal being focusedon past performance, planning gives

    employees a clear vision of the haveto perform in the near future.

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    27 Objectives

    Clarifying employees roles &performance expectations

    Ensuring that optimum efforts are putin by employees

    Gives employees a sense of direction

    Ensures the business & individualobjectives are effectively aligned

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    Provides clear instrumentality,expectancy & valence to the

    employee with respect to hisperformance, thereby motivating theemployee.

    Saving the organisation the costs it

    would incur due to ineffectiveperformance.

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    Helps employees realize self worth.

    Induces a sense of accountability &time management within theemployees

    Defines indicators of performance

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    30 Elements to be considered

    Past performance

    Influencers of past performance Areas of improvement

    Techniques for improvement

    Differences between the past &current year.

    Technological, economical & marketchanges

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    Goals must be time-bound.

    Goals must achievable & realistic foremployees to able to achieve them

    No bias should be involved whilstsetting goals

    External factors must be consideredwhile setting goals

    Goals should be simple

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    33 Process

    Defineorganizational

    goals & objectives

    Set measures forperformance &

    output

    Define criteria for

    performance

    Ensure employeebuy-in

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    34 Vrooms expectancy theory

    Victor Vroom stipulated that anindividual adjusts his/her efforts in

    relation to the anticipated satisfactionbased on perceived equity & value ofthe rewards in a way in which theyare most likely to achieve them

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    35 Vrooms Expectancy Model

    Expectancy

    Instrumentality

    Valence

    Individua

    l effort

    Individual

    performance

    Environmental factorsPersonal

    competencie

    s

    Perceived equity

    ofrewards

    Organizational

    rewards

    Motivation

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    This theory is very applicable whilstplanning and individuals

    performance.

    The message that more efforts willlead to higher levels of performancemust be communicated clearly

    That performance must be fairly &clearly linked to rewards

    Rewards must be substantial & add

    value to the appraisee

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    Selecting performance

    criteria

    Joint process of listing downcompetencies & behaviours to be

    exhibited by an employee to achieveset targets & goals

    It is a basis for communicating aboutperformance

    It creates awareness amongstemployees regarding expectationsthereby increasing job awareneness

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    Minimum standards should beindentified

    Assume that people are trustworthy &want to perform well

    Encourage & motivate employees to

    give their bestThere should be no imposition of

    rules, employees must be givenprinciples to follow

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    It should be comprehensive and notgenerate unnecessarily large

    amounts of data

    It should be designed by linemanagement with employeesinvolvement, the HR function should

    be able to provide support

    It should be applicable to differentparts of the organization

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    40 Techniques

    The techniques used for performanceplanning also form a part ofperformance appraisal. They are:

    Task analysis

    Detailed listing, analysis & review of allthe tasks undertaken in the previousyear

    Goal setting

    Action Plans

    Planning each task & strictly adhering to

    set plans

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    Key Performance Areas(KPAs)

    Key Result areas(KRAs)

    Revolves around specific goals/outcomesor results or targets expected fromindividuals

    Competency Mapping

    h d l d l

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    Methodologies used to plan

    performance

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    Are challenging & require substantialefforts from appraisee.

    Enable the appraisee to be called agood performer of the KPAs areachieved

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    46 Process to identify KPAs

    Team that will identify KPAs must beformed

    Must consist of some members who willperform the role & some who havealready performed it

    A detailed list of all the tasks that the

    incumbent of the role is expected tocarry out must be formulated

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    After identifying PAs weights must beassigned to each Performance Area with

    respect to the importance it carries forthe role in discussion

    KPAs for various roles must be compiledin the form of guidelines for employees

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    49 KRAs

    Key result areas are general areas ofoutcomes or outputs for which a role

    is responsible KRAs encompass a major part of a

    work role

    KRAs make it easier to assess currentperformance

    Areas such as innovation, customerresponse time and employee

    development are included rather than

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    It provides for:

    Clarification of roles Aligning appraisees roles & goals to

    organizational strategies & plans

    Focus on results rather thanactivities

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    52 Competency Mapping

    It provides structured anddocumented procedures which aid inrecruitment of competent personnelwith desired skill sets, attributes andtraining thereby reducing cost andtime of subsequent performancefailures

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    It facilitates reduction of the cost ofperformance development programsas the organization will have a readyinventory of required skill sets

    It helps in benchmarking higher levels

    of performance

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    It helps in creating individual learningplans

    It helps in the assignment of right jobto the right person for betterperformance as the employees withrequired skills sets and training shall

    be handling it

    It provides the management inputsfor gap analysis for improvingperformance of the employees in the

    requisite business area

    Performance Management

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    Performance Management

    System- Stages

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    1. Prerequisites.

    2. Performance planning.

    3. Performance execution.

    4. Performance assessment.

    5. Performance review.

    6. Performance renewal and re-contracting

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    57 prerequisites

    Using up to date job description andjob specification data

    Effective selection and placementprocess for person-job fit

    Establishing and agreeing on

    performance contract Providing effective induction and

    training to employees

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    Providing affective feedback andperformance counseling by HRdepartment

    Establishing performance linkedreward and compensation mechanism

    Providing career advancement and

    skill development opportunities Making managers responsible for

    turnovers of their employees

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    59 Performance planning

    Employees must have thoroughknowledge of the performancemanagement system.

    Meeting between employee andmanager.

    Set SMART goals and measurement

    standards:

    Results

    Behavior

    Writing SMART Performance

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    Writing SMART Performance

    Objectives

    Practice writing SMART performance objectives:

    S = Specific

    M = Measurable.

    A = Attainable

    R = Realistic

    T = Timely

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    61 Performance Execution

    Shared responsibility

    Employee responsibility:

    Commitment to established goals.

    Communication and update withmanager.

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    Manager responsibility:

    Feedback, coaching andreinforcement.

    Resource support.

    Accurate observation and

    documentation

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    Performance Assessment

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    Performance Assessment

    and Appraisal

    Who should appraise?

    Supervisors.

    Peers and team members.

    Subordinates.

    360 degree feedback

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    65 What About the Employee?

    Should employees do self-appraisals??

    Conducting the

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    Conducting the

    Performance Interview

    Explain the purpose of the interview.

    Discuss self-appraisal.

    Share ratings and explain rationale.

    Discuss development plans.

    Employee summary.

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    Rewards discussion (if appropriate).

    Set follow-up meeting.

    Employee signature.

    Supervisor recap.

    Appeals process

    Performance Renewal and

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    Performance Renewal and

    Re-Contracting

    Final step in performance managementprocess.

    Readjust based on insightfrom completed process.

    Plan for next performancemanagement cycle

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    What is 360 Degree

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    What is 360 Degree

    Feedback?

    A process which enables

    an employee to receivefeedback from a numberof people around him,who actually deal with

    the employee each day.

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    72 Introduction

    In recent years the 360 degree appraisalhas become very popular because hasbeen felt for long that one persons

    assessment of another cannot be free ofbiases.

    The 360 degree appraisal is a multi-rater assessment and feedback system(MAFS)

    Almost every Fortune 500 company isusing this in some form or the other.

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    Focus on customers (both internaland external)

    Emphasis on softer dimensions ofperformance (leadership, innovation,team work, initiative, emotionalintelligence, etc.)

    It has become necessary to getmultiple assessments for a moreobjective assessment.

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    The appraisal is done anonymouslyby others and the assessment iscollected by an external agent(consultant) or specially designatedinternal agent (for example the HRDdepartment).

    The assessment is consolidated;

    feedback profiles are prepared andgiven to the participant after aworkshop or directly by his boss orthe HRD department in aperformance review discussionsession.

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    Objectives of 360

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    Objectives of 360

    Degree Feedback

    Providing insights into the strong andweak areas of the candidate in terms

    of the effective performance of roles,activities, styles, traits, qualities,competencies (knowledge, attitudesand skills) and impact on others.

    Reinforcing other changemanagement efforts and organizationeffectiveness directed interventions.

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    Identification of developmentalneeds and preparing development

    plans more objectively in relation tothe current or future roles andperformance improvements for anindividual or a group of individuals.

    Generating data to serve a moreobjective basis for rewards and otherpersonal decisions.

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    Serving as a basis for performancelinked pay or performance rewards.

    Aligning individual and group goalswith organizational vision, values andgoals.

    Culture building. Leadership development

    Potential appraisal and development.

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    Career planning and development.

    Succession planning and

    development.

    Team building.

    Planning internal customer

    satisfaction improvement measures.

    Role clarity and increasedaccountabilities.

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    InternalCustomers

    Supervisors, Subordinates,Top Management,Co-workers and

    Representatives from otherdepartments

    External Customers

    Clients, Suppliers,Consultants and CommunityOfficials

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    Procedure for 360

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    Degree Feedback

    Develop questionnaire to measuredifferent dimensions of job

    performance ( communication,leadership etc)

    Ensure confidentiality of feedbackresults.

    Provide training/ Orientation to allemployees to make them understandwhy it is being implemented.

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    Administer feedback throughprinted forms or post to the companywebsite.

    Analyze the data performancedimensions summary , actualperformance vs. expectedperformance summary, highest/

    lowest rated items.

    Develop and distribute results feedback should be shared with

    employees in order to help themim rove uture er ormance.

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    It provides scope for the candidate toget multiple inputs to improve his role,performance, styles and ideas and

    enhances acceptability of theindividual.

    It is more participative and enhancesthe quality of HR decisions.

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    It is a good tool to enhance customerservice and quality of inputs and

    service to internal customers. It has the potential of pointing out

    the supervisory biases in thetraditional appraisal systems.

    Prerequisites for MAFS

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    88 Prerequisites for MAFS

    The top management of theorganization is committed to

    developing the competencies of theemployees on a continuous basis.

    There are a number of HRD systemsoperating in the organization and

    they are being seriouslyimplemented.

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    The top management is committed tocompetency building through multi-raterfeedback.

    The top management is willing to subjectthemselves to an assessment by theirsubordinates and colleagues.

    There are not too many status barriersand ego problems in the organization.

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    People take feedback supportivelyand use it for development.

    The organization already is or is in theprocess of becoming a customerdriven organization.

    There is a good degree of emphasis

    on team work in the organization.The HRD department has a high level

    of credibility.

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    Managers take their jobs seriouslyand learn.

    There is a high degree of emphasis oncompetency building.

    The organization has a history oftaking all change management toolsseriously and implementing them tillthe end.

    People in the organization take

    feedback seriously and try to benefit

    Indicators for usage of

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    g

    MAFS

    The candidate is keen to know abouthimself through the eyes of others. He is

    willing to receive feedback from othersand does not become over defensive.

    The candidate desires to be better.

    The candidate is open to and known torespect the view of others.

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    The candidate is a learning orientedindividual.

    The candidate has an attitude tohealthy competition.

    The candidate should have at leastone and a half years of experience(except in the case of managementtrainees)

    He should have direct working

    relations with at least six individuals

    RSDQ Model of 360

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    Degree Feedback

    TVRLS has developed a model for thetop and senior management in terms

    of managerial and leadershipcompetencies needed which istermed as the RSDQ model (roles,styles, delegations, and qualities)

    This model of leadership andmanagerial effectiveness viewseffective management and leadershipas a combination of four sets ofvariables.

    RSDQ Roles

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    98 RSDQ - Roles

    The extent to which the individual playsvarious leadership and managerial rolesand activities.

    These are both transformation roles(leadership roles) and transactional roles(managerial) some of these are:

    Articulating and communication visionand values.

    Formulating long term policies andstrategies.

    Introducing and managing newtechnology and systems.

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    Inspiring, developing and motivatingjuniors.

    Managing juniors, colleagues andseniors.

    Culture building.

    Internal customer management.

    External customer management.

    Managing union and associations.

    RSDQ - Styles

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    100 RSDQ - Styles

    Effective managers recognize that it isnot only the roles or activities thatdetermine the effectiveness but also

    the way in which they are played. Benevolent or Paternalistic

    Leadership Style

    Critical Leadership Style

    Developmental Leadership Style

    RSDQ Delegation

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    101 RSDQ Delegation

    The RSQD model considers the level ofdelegation as an important part of senior

    executives effectiveness.

    Most senior managers seem to havedifficulty in delegating, especially theeffective managers who get promotions

    fast in their career.

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    102

    In view of these experiences,delegation has been isolated as animportant variable of leadership.

    Those who delegate release theirtime to perform higher level tasks.

    Those who dont continue to do lowerlevel tasks and suppress theirleadership qualities and managerialeffectiveness.

    RSDQ Qualities

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    103 RSDQ Qualities

    Managers should exhibit qualities ofleaders (e.g. pro-action, listening,communication, positive approach,

    participative nature and qualityorientation).

    Such qualities not only affecteffectiveness with which top levelmanagers perform various roles butalso has an impact on the leadershipstyle and hence are very critical.

    Effectiveness of 360

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    Degree Feedback

    More focus on Leadership Roles

    Articulating vision

    Spending more time oncommunicating vision and goalsetting.

    Being more developmental asagainst benevolent or critical.

    Giving attention to the needs ofother individuals rather than remain

    reoccu ied with oneself.

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    Internal Customer Orientation

    Better interaction with colleaguesand subordinates.

    Learning from colleagues and

    benefiting from their experience. Rapport with seniors.

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    Increased Focus on Fostering Team Spirit

    Setting high goals for the team;

    Participative management

    Conflict management

    Developing mutuality;

    Sensitivity to others feelings;

    Collaborative culture;

    Cross-functional review mechanism.

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    Marked Increase in Delegation andSubordinates Development

    Empowering subordinates to takehigher responsibilities.

    Leaving routine decisions to lowerlevels.

    Not interfering in matters beinghandled by subordinates.

    Encouraging subordinates to learnfrom their mistakes and beingvery patient with them.

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    108

    Predominant Behavioral Changes

    Assertive

    Clear communication

    Initiative

    Patient

    Proactive

    Time management

    109

    Preparation for

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    Implementation

    It takes a lot of trust in anorganization and lot of preparationbefore one can move from using 360

    degree strictly for developmentalpurposes to using it for takingdecisions on promotions and rewards.

    Begin with Development

    Link with company goal

    Train everyone

    Follow Up

    110

    Essential for Effective

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    Feedback

    Prepare the participants.

    Make the top management visible

    players.Tie feedback data to a larger

    programme.

    Clarify ownership of data.

    Insist upon integrity.

    Commit to 100% accuracy.

    Make administration as soon aspossible.

    111

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    Ensure that there is always ahuman contact involved.

    Time it well.

    Ensure confidentiality andanonymity.

    There should be a shelf life for thereport data.

    Anticipate what will go wrong.

    Start with a small pilot group.

    Integrate with other interventions.

    112

    Advantages of 360

    db k

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    112

    Degree Feedback

    It is more objective than a one personassessment of traits and qualities.

    It adds objectivity and supplements thetraditional appraisal system.

    It provides normally more acceptablefeedback to the employee.

    113

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    113

    It can serve all the purposes servedby the traditional appraisal systemlike identifying developmental needs,reward management andperformance development.

    It helps focus on internal customersatisfaction.

    114

    Mistakes in 360 Degree

    F db k

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    114

    Feedback

    Having no clear purpose.

    Using it as a substitute tomanage poor performance.

    Not conducting pilot tests.

    Not involving key stakeholders.

    Having insufficientcommunication.

    Compromising confidentiality.

    115

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    115

    Not making clear the use of thefeedback

    Not giving employee sufficient

    resources.

    Not clarifying who owns the feedback.

    Having unfriendly administration andscoring.

    Making it an event rather than aprocess.

    Not evaluating effectiveness.

    116

    Reasons for limited

    i f MAFS

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    116

    impact of MAFS

    Negative feedback may createinsecurity, defensiveness which maydamage self efficacy

    Subordinates may not provide properfeedback

    Accuracy, credibility and fairness offeedback is dictated by personal

    experiences Resistance to feedback

    The higher ones in the organizationare less likely to receive quality

    feedback

    117

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    117

    Low self esteem, self efficacyrecipients do not seek feedback

    Lack of managerial skills on softand behavioral issues

    Self ratings are consistentlyhigher

    Peer ratings may prove counterproductive for pay, promotionsor job rotations

    118

    Companies that use 360

    D F db k

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    118Degree Feedback

    360 Degree feedback has gained widepopularity in the corporate.

    Johnson & Johnson AdvancedBehavioral Technology

    General Electric India

    Reliance Industries

    119

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    119

    Godrej SOPS

    Crompton Greaves

    Kodak WIPRO

    Tata Steel

    Infosys

    120 Implementing PMS

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    120 p g

    121 Introduction

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    121 t oduct o

    Implementation of the process iscritical to the success of theperformance management

    The way in which it is implementedwill determine its the response itgarners from employees & the faith it

    will inspire.

    122

    Essentials for effective

    implementation

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    122 implementation

    Effective communication &Transparency

    Employee participation & buy-intoward the process.

    Timely commencement & completionof the process.

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    123

    Any bias or personal interventionmust be kept at bay.

    All factors- external as well as internalmust be taken to consideration

    Raters errors must be avoided.

    Prioritization as well as relevancemust be understood clearly byappraisers.

    124

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    124

    Implementation must be easy &comprehensive along with coveringall the important aspects.

    Continuous interaction & discussionsbetween appraiser & appraisee is amust.

    Both appraiser & appraisee must betrained effectively in the process ofimplementation

    125 Components

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    125 p

    Performance Appraisal

    Job Analysis

    Performance Interview

    Post performance interview

    Performance coaching Performance counseling

    126

    Methods used in

    Performance Appraisal

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    Performance Appraisal

    Ranking Method

    Rating Method

    Graphic Rating Method

    Checklist Method

    Critical Incident

    Confidential Report

    Grading Method

    127

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    Behaviorally Anchored Rating Scales

    Essay Method

    360 degrees Feedback method orMAFS

    Management by Objectives

    Forced Choice Method

    Field Review Method

    Group Appraisal

    128 Common Raters Errors

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    Horn Effect

    The tendency of a rater to focus

    only on the negative aspects of anappraisees performance,sidelining any positivity

    Halo effect

    It is the reverse of the Halo effectwhere the appraiser completelyignores any negative aspect of theappraisee.

    129

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    Recency Effect

    This is the tendency of the rater

    where he takes into considerationonly the most recent performance ofthe appraisee, the period closes tothe performance appraisal.

    Central Tendency Raters suffering from this tendency

    rate all the appraisees averagelyirrespective of the quality of theirperformance simply to avoid conflict

    130

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    Primacy effect

    If during the initial period ofassociation with the appraise, the

    appraisor seespositivity/negativity, he sticks withimpression whilst appraisingirrespective of any change inbehavior or performance.

    Leniency/Severity Effect

    The tendency of the rater to beeither to strict or to liberal with

    giving ratings mindless of actual

    131 Performance interview

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    132 Performance interview

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    Performance Interview is one of themost crucial aspect of implementingPerformance Management.

    It is misunderstood & ineffectivelyimplemented widely

    133

    Problems with performance

    interview

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    interview

    Appraisers discomfort with giving notpositive.

    Tendency to involve personal issues &biases in the interview.

    Tendency to dwell excessively on thepast performance

    134

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    Tendency to turn into grounds forheated arguments based onperformance.

    Tendency of appraisers to getaccusatory while discussingperformance

    Tendency of appraisee to getdefensive while on the receiving endof negative feedback.

    Tendency of appraiser to withhold

    135 Steps

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    1. Start with an icebreaker.

    2. Explain the purpose of the interview.

    3. Work through the PerformanceMeasures (agreed ActualPerformance, Ratings etc.)

    4. Agree Performance Measures and

    Standards for the next performanceperiod.

    5. Close on a positive note

    136

    Essentials for effective

    performance interviews

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    performance interviews

    An atmosphere of positivity must bemaintained throughout the span ofthe interview.

    The appraisee must not feel attacked.Accusations, insults, etc. should bekept at bay

    Negative feedback should be givenclearly with no attempt atunderplaying but must be treatedwith tact

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    Generous positive feedback must begiven. The employee must not feel likethe purpose of the interview is to put

    him/her down.

    The focus should be on what can be donein the future to improve performance asopposed to what went wrong in the past

    Views & inputs from the appraisee mustbe actively encouraged; thecommunication process must be two way.

    138

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    Plan of action with specific set ofactions must be formulated.

    A follow up meeting must beorganized so as to keep with theappraisees progress

    139 Managing poor performance

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    Get to the root cause of poorperformance

    Provide feedback

    Explain consequences of poorperformance

    Set clear objectives for the coming time

    period Provide training if appropriate

    140 Coaching

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    Coaching is a person to persontechnique designed to developindividual knowledge, skills andattitudes. It is more effective if ittakes place informally as a part of thenormal process of management orteam leadership

    141 Steps

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    1. Observation

    2. Discussion & Agreement

    3. Active Coaching

    4. Follow-up

    142 Counseling

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    Counseling is any activity in the

    workplace where one individual usesa set of skills and techniques to helpanother individual to takeresponsibility for and to manage their

    own decision making whether it iswork related or personal

    143

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    Recognition and understanding of theproblem

    Empowering and enabling employees Deciding if any further help is required

    Follow up

    144

    Indicators of effective

    implementation

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    implementation

    Complete buy in & ownership of LineManagers.

    Sufficient time is spent forperformance planning (groupplanning or individual planning),identifying developmental needs, etc

    The goals of clarifying objectives,roles & deciding time frames &performance standards fordepartments as well individuals havebeen achieved.

    145

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    The Performance Managementsystem is received well & is supportedacross the organization including the

    top level management

    The system helps in generating theatmosphere of a performance driven

    organization.

    146

    Mistakes during

    implementation

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    implementation

    Incorrect purpose

    Ineffectively designed format

    Too many objectives

    Over Criticism

    Lack of support from employees

    147

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    Lack of support from Top Management

    Inabilities in the HR department

    Perceived ownership of HR department;lack of buy in by line managers.

    148 Potential Appraisal

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    149 Promotions

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    Promotions are given on the basis ofpast performance.

    An assumption is being made thatcompetence in performing thepresent role is a

    sufficient indicator of competenceto perform a higher and

    different role in the organization. Seniority is given more priority then

    Younger Talents.

    150 What is Potential Appraisal?

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    POTENTIAL APPRAISAL

    Qualities that exist Evaluation

    and can be developed

    Beyond the Present Role.

    151 Definition

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    Potential appraisal is concerned withidentifying the potential of anemployee for future development and

    promotion in the organization.

    A process of determining anemployees strengths and weaknesseswith a view to use this as a predictorof his future.

    152 Objective

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    Objective

    To identify the potential of a

    given employee to occupy higherpositions in the organizationalhierarchy and undertake higherresponsibility.

    153 Need

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    Inform employees about their futureprospects;

    Help the organization chalk out of asuitable succession plan;

    Update training efforts from time totime;

    Advise employees about what theymust do to improve their careerprospect

    154

    Steps to be followed for a good

    potential appraisal system

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    pote t al app a sal syste

    Role Descriptions

    Qualities required to perform the roles

    Indicator of Qualities - Rating by Others

    - Psychological Tests

    - Simulation Games and

    Exercises - Performance Appraisal Records

    Organizing the System

    Feedback on Potential Appraisal for

    155 Examples

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    CROMPTON GREAVES LTD.

    BPL

    Dr. REDDY

    SAIL

    Escorts

    156

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    TISCO

    Aditya Birla

    Castrol (India)

    Cadbury

    Wipro

    Siemens

    157 ASSESSMENT CENTER

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    An Assessment center is acomprehensive, standardizedprocedure in which multipleassessment techniques such as

    situational exercise and job simulationare used to evaluate the individualemployee for a variety of decisions.

    Most frequently the approach hasbeen used for individuals beingconsidered for selection, promotion,placement or special training and

    development in management

    158

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    The technique consists of a group ofpeople undergoing a series ofwork related exercises and simulations

    along with some standard psychometricinstruments.

    Their behavior while undergoing theexercises and simulations is observed bya set of trained and experienced

    observers.

    They record their observations andintegrate these to arrive at ameasurement of the competency of eachof the participants.

    159

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    Assessment centers are well-integrated sets of tests, exercises,simulations and instruments which

    are designed to cover all aspects of agroup of dimensions (personalityqualities or competencies) so as toprovide as valid a picture of the

    participant as possible

    160

    WHAT IS NOT AN

    ASSESSMENT CENTRE?

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    ASSESSMENTCenters are not:*Multiple interviewprocesses.*Individual assessments

    of all sorts.*Work Sample Tests.*Multiple assessmenttechniques withoutintegration of the data.*Any set of Psychometric

    tests or instruments usedtogether do not constituteand qualify as anassessment centre.

    But ,*It must measure multiplefactors (qualitiesor competencies).*It must use multiple

    techniques.*It must have multipleobservers or assessors.

    161 WHY HAVE AN ASSESSMENT CEN

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    Every organization wants people with the

    competencies that are inconsonance withthe objectives of the Organization.

    Therefore the organizations aim would

    be to find such people and if necessary,to develop the required competency inthe existing people.

    162

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    Added advantage of motivatedpeople who would participateenthusiastically in the advancement

    of the organization, as this wouldinherently imply their ownadvancement too.

    Give rise to an internal need fordevelopment in the participants whoundergo these assessment centers.

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    164 The 9 Steps

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    Decision to set up an assessmentcentre.

    Identification of Competencies.

    Data Collection.

    Exercise and Assessment Centre

    Design.

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    166Commonly Assessed

    Competencies

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    Competencies

    Intellectual

    - Comprehension

    - Analytical Ability

    - Innovation

    - Decision Making

    -

    Planning & Organizing- Strategic Perspective

    167

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    Interpersonal

    - Communication

    - - Adaptability

    - - Ability to Influence Others

    168

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    Dynamic

    Initiative

    Drive Resilience

    Stress Resistance

    Result Orientation

    169

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    Business Related

    - Business Understanding

    - Customer Focus

    170 Assessors Training

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    Assessor Attributes

    Desire to be an assessor.

    Knowledge of target organization and

    job. An average or better manager in terms

    of normal managerial criteria.

    General high level of maturity.

    Interest in people

    A perspective observer who listenswell.

    Ability to learn.

    171

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    Articulate in group and individualsituations able to take a position anddefend it verbally.

    Independence - the ability to take aposition in opposition to others.

    Generally free from biases.

    High personal work standards.

    172

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    Adaptability willingness to changeposition when appropriate and whenthe weight of evidence is such that a

    change should come about.

    Energy to work long days at a goodspeed.

    Has a track record of counseling anddeveloping staff.

    Is able to spare himself for the timenecessary.

    173

    Assessors TrainingProgramme

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    Duration : 3-5 days.

    Schedule : Introduction, Course & History.

    Techniques, Competencies

    Behavior Classification & Generation Exercises,

    Instruments to be used,

    Observation & Recording Methods,

    Interviewing Skills,

    Integration Sessions,

    Report Writing,

    Feedback & Counseling Skills

    174

    Process of AssessmentCentre

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    1. Briefing

    2. Observation

    3. Recording

    4. Classification

    5. Writing of rating sheets

    6. Rating

    7. Integration

    175

    Assessment Centre Report

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    It is the most important outcomeof the Assessment Centre.

    The report should contain thefollowing elements:

    1. Brief Personal Profile

    2. Summary of General Performance &Behavior

    176

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    3. Description of Performance by eachCompetency

    4. General Strengths and Weaknesses

    5. Developmental Advice andAction Plan

    6. Organizational Actions.

    177

    Assessment Feedback

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    Feedback is the process where theparticipants are made aware of

    their observed behavior in controlledcircumstances and how they measureup to a set of competencies, which arerelevant to the organization.

    178

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    Feedback is in two parts ;

    The organization receives

    feedback about the competency ofthe people

    The participant receivesfeedback on his performance in

    the assessment centre.

    .

    179

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    1. Covers Strengths and Developmentareas.

    2. Behavioral observations and changeof behavior

    3. Explain the effectiveness ofthe behaviors.

    4.Examples of behavior to be highlighted.

    180

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    5. Participant can also comment orelaborate.

    6. Alternate or corrective behavior tobe suggested.

    7. The esteem and secrecyabout the participant must be

    maintained

    181

    after the AssessmentCentre

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    Follow-up is also very essential. Thesuggested changes in the participantshould be maintained and therefore theDevelopmental Plan is necessary. A

    developmental plan for the participantconsists of :

    Competency-based Workshops

    Job Rotation or Enrichment

    Project-based learning

    E-learning programmes

    Counseling for problem areas.

    182 Thank You!

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    Presented by:

    Priya Joseph

    Saurav Bhattacharjee

    Anjali Ranjan

    Drishty Tanwar