L6 - Performance Mgt

• Performance Management


  A strategic and integrated 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
• Performance Management


  A process that includes goal setting, feedback, development, recognition, coaching and performance appraisal built on a foundation of trust, empowerment and with a constant flow of communication
• Performance Management


  • Clarification and communication of organisational strategic objectives
  • The alignment of individual and group goals with the organisational objectives
  • The monitoring and measurement of individual and group performance
  • The early identification and reporting of deviations
  • The development of action plans to correct deviations
  • The coaching and mentoring of individual groups
  • The review of individual and group performance, and the re-evaluation of organisational process
• Purpose of Performance Management

  To contribute to the achievement of high performance by both the organisation and its employees
• Performance Management is a holistic set of processes that brings together many principles that enable good people management practice, including learning and development, performance measurement and organisational development
• Effective Performance Management


  • Strategically aligned with broad issues and long-term goals
  • Integrated with various aspects of the business and how people are managed
• How Performance Management Works

  1. Corporate strategic goals provide the starting point for business and departmental goals

  2. Agreement on individual performance and development priorities

  3. Individuals and managers draw up plans and monitor performance continuously

  4. Feedback given regularly, supported by formal performance reviews

  5. Highlight organisation-wide processes required to support performance

  
• Cascading down of Performance Goals

  From Organisational Mission to Individual Objectives
• Performance Management is a continuous cycle, not an isolated event
• Performance-Related Pay (PRP)


  Linking levels of pay to individual, team and organisational performance
• Learning and Development in Performance Management

  • Focus on how employees need to develop
  • Performance conversations help employees learn from experiences and identify relevant learning and development opportunities
  • Personal Development Plans (PDPs) and Performance Development Reviews (PDRs)
• Difference between Performance Management and Performance Appraisal

  Performance Management is a holistic process to improve organizational, team and individual performance

  Performance Appraisal is a process to improve individual performance

  
• Comparison of different approaches

  • Management by Objective
  • Performance Appraisal
  • Performance Management
• Performance Management is owned by line managers and personnel department
• Performance Development Review (PDR)

  Grouped with performance appraisal
• Performance Management


  Holistic process to improve the organizational, team and individuals performance
• Performance Appraisal


  Process to improve individuals performance
• Ranking Method


  Comparative Approach to Performance Appraisal
• Grading Method


  Comparative Approach to Performance Appraisal
• Forced Distribution


  Comparative Approach to Performance Appraisal
• According to the practice of forced ranking, a company has to identify its best and worst performers and 'nurture' the winners and rehabilitated/discard the 'losers'. This concept makes sense but its implementation poses great risk because companies use bell curve to ultimately reward employee performance. The bell curve also known as (normal distribution) assumes there is an equal number of high performers and low performers and most employees fall into the average category.
• Attributes Approaches


  Other methods of Performance Appraisal
• Behavioural Approaches


  Other methods of Performance Appraisal
• Performance Appraisal


  A key tool of performance management to assess and evaluate an employee performance based on job description or targets sets by the immediate manager / supervisor. It has a timeframe and is done (weekly, monthly , annually). It is a formal process within the organisation.

  
• Performance Management


  A holistic process while performance appraisal is one of the key tools used to improve performance of employees.
• Purpose of Performance Appraisal

  • Assessment of Performance
  • Reward
  • Development
  • Feedback
• Benefits of Performance Appraisal for Appraisee (Employee)

  • Recognitions for good performance provides a sense of confidence, self worth, job satisfaction, commitment and motivation for continued improvement
  • Provides an opportunity to re-asses work goals and discussion of what has worked well and what's needs improvement
  • Opportunity to provide reasons for potential underperformance and discuss development points for improvement
  • Ability to air any grievances or speak about problems in the workplace
  • Opportunity to discuss career goals and future progression
  • Built trust and facilitates relationship growth with a manager
• Benefits of Performance Appraisal for Appraiser (Manager / Supervisor)

  • Opportunity to gain insights into individual jobs and work team
  • Opportunity to gain align individual, team, group and organisational goals and objectives and communicate that to each
  • Opportunity to hear potential grievances or issues to be investigated as mentioned by employees
  • Improved decision making ability
  • Identification of development points, training needs and forecasting for future
  • Increased job satisfaction, motivation and self-worth
  • Improved group performance
  • Opportunity to clarify expectations of individuals and teams, reassess work goals and discuss what has worked well and what needs improvement
  • Improve quality of relationship with subordinate
• Benefits of Performance Appraisal for Organisation

  • Foster a culture when staff are valued and there is commitment to continuous improvement
  • Staff are more aware of organisational goals and values and can see how their contribution affects organisational success at the larger scale, building a sense of commitment
  • Better employee relationship with the managers create a sense of cohesion and belonging
  • Managers are more in touch with individual jobs, teams and groups
  • Identification of training needs and opportunity for improvements at all levels (often discovered through consultation with employees)
  • Encourage managers to hone their leadership, motivation and communication skills, making them more valuable to organisation and create a sense of job satisfaction
• Potential Drawbacks of Performance Appraisal

  • Management Attitude
  • Halo Effect
  • Horns Effect
  • Central Tendency
  • Relationship Effect
  • Leniency or Strictness Bias
  • Prejudice / Bias / Stereotypes
  • Recency Effect
• SMART Goals


  Clearly defined, measurable goals that are Specific, Measurable, Attainable, Relevant and Time-bound
• Key Results Area (KRA)


  Areas in which an individual is expected to perform, derived from their job description
• Key Performance Indicator (KPI)


  Metrics that measure something strategically important to the organisation
• What makes a Performance Approach valuable?

  • Managers visibility and effectiveness, improved performance of team
  • Employee Growth, Motivation and Engagement
  • Insights for HR and Senior Leaders
• What should performance process be for?

  • Support Employee Growth
  • Enable people to do their best work
  • Supports leaders and team members to have valuable conversations
  • Value Based
  • Aligned with company outcomes
• Consequences of a poorly designed or implemented performance process

  • Employee Turnover
  • Lower Employee Engagement
  • Damaged relationship
  • Increased turnover
• 360 Degree feedback


  Performance appraisal tool that collects information about an employee's performance from peers, subordinates and managers
• Coaching Practices


  • Ask, don't tell
  • Be empathetic
  • Progress is success
  • Coaching daily
• Mentoring


  Passing on experiences and knowledge, how to best approach a task and where potential lie. Providing an example that encourages, motivates and reassures the mentee.
• OKR (Objective Key Results)


  A framework for defining and tracking objectives and their outcomes