Description
This is a presentation explaining about the performance management.
Performance Management
Why look at / talk about PM?
? Market conditions- focus on quality,
cost & speed of delivery ? Influence of theories / findings of management research – core competence, competitive advantage
Why look at / talk about PM?
? Technology and competitiveness – BPR, CAD/CAM, JIT etc ; IT enablement ? Organizational restructuring and changerestructuring, delayering, right sizing, HPWS, out sourcing, etc ? Inadequacies of PA systems
Scope of Performance Management
? Organizational performance ? Employee performance ? Integration of the two
Components of PM
? Performance Planning
? Performance Measurement
? Consequence management
Performance Management - Emps
? ? ? ? ? ? Objectives, KRAs/ KPAs/ MBO Appraisals Performance feedback Performance counseling Rewards and consequences management Separation management
Performance Management - Orgn
? Vision, Mission, Values ? Strategy / Structure / Systems approach ? Alternately Purpose / Processes / People approach ? Balanced Score Card / Performance Prism ? BPR, BM, TQM, 6 Sigma ….
Performance Management Integration
Balanced Score Card • Corporate Score Card • Divisional / SBU Score Card • Departmental / Functional Score Card • Individual/ Personal Score Card
Performance Appraisal
A method of evaluating the behavior of employees in the work spot, normally including both qualitative and quantitative aspects of job performance. A systematic and objective way of evaluating both work-related behavior and potential of employees. A process that involves determining and communicating to an employee how he is performing the job and ideally establishing a plan for improvement
Six criteria of appraisal
? ? ? ? ? ?
Quality Quantity Timeliness Cost-effectiveness Need for supervision Interpersonal impact
Features of a good appraisal system
? Systematic process ? Objective ? Plan for improvement based on evaluation of current performance ? Periodic ? Not a job evaluation ? Formal
Objectives
? Determining the rewards based on performance levels ? Identify development needs
Rewards flowing out of PA
? ? ? ?
Promotion Compensation ESOPs Other non monetary rewards
Development initiatives
? ? ? ?
Performance feedback and counseling Training and development Personal development Coaching & Mentoring
Appraisal Process
? ? ? ? ? ?
Establish performance standards Communication of standards Measurement of performance Identify variance Performance feedback Corrective action
Appraisal Methodologies
? Individual evaluation ? Multiple-person evaluation ? Other methods
Individual evaluation methods
? ? ? ? ? ? ? ? Confidential Reports – CR Essay evaluation Critical incidents Checklists Graphic rating scale Behaviorally anchored rating scales- BARS Forced choice MBO
Multiple- Person evaluation
? Ranking method ? Paired comparison method ? Forced distribution method
Appraisal meeting and feedback
Objectives
? Communication of the employee performance level ? Enable employees to improve on their performance levels ? Plan out development and growth initiatives ? Improve and cement relationships ? Enable employees to express themselves
Appraisal meeting
? A prefixed time and a formal and serious matter ? Emphasis on objectivity and facts ? Adequate preparation by the appraiser ? Opportunity for the appraisee to express freely on all matters relating to performance
Appraisal feedback
? ? ? ? ? Preparation Objectivity Rationale on ratings Absolute and relative ratings “What should I do” to get there type of questions ? Escalations
Appraisal errors
? ? ? ? ? ? ? First impressions Halo Horn effect Leniency Central tendency Stereotyping Recency effect
Appraisal errors
? Appraisal form design ? Lack of preparation ? Disconnect with organization policies / practices
Factors to improve effectiveness
? ? ? ? ? Standardization and normalization Appraiser / Appraised training Absence of Hidden agendas Transparency Process reliability
360 Degree Appraisal & feedback
360 Degree appraisal
? a multi rater appraisal and feedback system ? assessed periodically by assessors who are his boss, immediate subordinates, colleagues / peers, customers ? appraisal done anonymously and collated by a consultant / HR and feedback given ? generally restricted to managerial level
Objectives
? Insights into the strengths and weaknesses
of appraisees for the effective performance ? Identification of development needs ? Enable data based reward systems ? Reinforcement of change management efforts and OD interventions ? Basis for performance linked pay ? Alignment of individual and organizational goals
Application areas
? ? ? ? ? ? ? ? Culture building Leadership development Career planning and development Potential appraisal and development Succession planning and development Team building Role clarity and accountability Customer satisfaction improvement
Advantages
? ? ? ? Higher objectivity Better receptivity to feedback Focus on internal customer satisfaction Ideal tool in culture / other change interventions
Prerequisites
? Total top management commitment, involvement and conviction ? No politics in play ? High credibility HR ? A fairly mature organization ? Process orientation in the organization ? Trust ? Other progressive HR interventions
Prerequisites
? ? ? ? Customer focused organization Values driven organization Competency as the basis for decisions Feedback for development is valued
Readiness of a candidate as seen through
? Absence of defensive reactions to feedback ? Believes in feedback for self development ? Learning orientation ? No history of psychological or psychiatric problems ? Healthy attitude for competition ? Open and receptive
Assessment Centres
Objectives / application areas
?Promotions ? Development needs ? Placement
Essentials
? ? ? ? ? ? Job analysis Multiple assessment techniques Situational exercises Behavioral responses and observations Multiple trained assessors Integration of observations
Accuracy
? Observations by line managers specially trained to observe behaviors ? Assessors have a broader perspective of the competencies required ? Assessors have a thorough knowledge of the company, its moorings and ideosyncrasies ? Group decisions are more accurate
Development Centres
? ? Intermittent feedback Workshops that measure the abilities against the agreed success criteria for the job
From Performance Appraisal
to Performance Management
While there are some exceptions……… satisfactory under performance is pervasive in corporate India
-- Managing Radical Change by Ghosal et. Al (2002)
The dynamics of satisfactory underperformance
Managers begin
to believe they are the best
Successful
Competitiveness, growth & profits
business strategy
Build layers of staff to cope with
growth
Gradual decline into
satisfactory under – performance and then to crisis Initiative and innovation stifled
External arrogance
and internal focus on control
In order to arrest gradual decline we need to nurture performance culture
WHAT IS A PMS ?
•
Macro level view of performance
•
• •
Long term orientation
Issues of creating a performing organization Issues of motivation
•
• •
Processes related to the above two
Institutionalise factors facilitating performance Remove hindering factors to performance
WHAT IS PAS ?
• • •
Limited in scope; micro view
Short term orientation
Only one of the processes involved in a good PMS
•
•
Merely a measurement mechanism
Tries mapping results and goals at an individual level
WHY THE SHIFT TO PMS ?
• •
Drive performance Create a performing organisation by nurturing performance culture
WHY THE SHIFT TO PMS ?
•
Will enable managers to address complex questions such as :
1) 2) 3) 4)
What is meant by performance? What leads to performance? How to measure effective performance? What does employee / team get if they perform?
WHY THE SHIFT TO PMS ?
•
Will force the organization to put following performance enabling processes in place :
-
-
Design of tasks Clarity of roles Well designed pay & reward systems Facilitating group structures Enabling leadership Flexible systems & processes
Components of an effective PMS
Individual-related factors (Competence to perform the role Motivation factors for individual Motivation process for individual )
Work-related factors (Leadership style, Characteristics of job, Work group composition and norms)
PERFORMANCE MANAGEMENT SYSTEM
Organization-related factors (Organizational fairness, Size of the organization Rewards & recognition system, Performance Measurement Process)
Performance Management System (PMS)
A continuous process which looks at performance in an organization from a holistic perspective, understands what
motivate individuals, what drives them to perform at
their full potential and also the processes that need to be created in an organization which support and push individuals to perform at their highest capabilities and potentials to meet the challenges posed by external and internal environment.
Competencies required for implementing an effective PMS
a) Knowledge of relevant conceptual motivational
theories / models and its application
?
Western Motivation theories like Maslow, Herzberg, McClelland, Vroom, Porter & Lawler, Alderfar, Patten Indian motivation theories like PI theory (Khandwalla), Motivational Analysis (Pareek), Social achievement (Mehta)
?
Competencies required for implementing an effective PMS
b) Design & delivery of suitable rewards & recognition systems &
integrate them with other HR systems to achieve organization's performance goal
?
Competency based reward system
?
? ?
Variable Pay
International compensation practices Intangible reward system
?
ESOP and its legal implications
Competencies required for implementing an effective PMS
c) Performance Coaching
? ? ? ?
Monitoring performance Diagnosing performance improvement Determining how to improve performance Providing constructive feedback
Competencies required for implementing an effective PMS
d) Using suitable tools to measure & evaluate performance at individual, team & organizational level
?
? ?
360 degree feedback
Team assessment Balanced score card
Competencies required for implementing an effective PMS
e) Developing enabling leadership style that aids performance
improvement
? ? ?
Transactional Vs. Transformational leadership NT Leadership (Sinha) Organisation specific leadership development plan
Competencies required for implementing an effective PMS
f) Understanding job and work group related norms
and implications for performance improvement
•
Job design (Oldham & Hackman) Role analysis Job Evaluation Team building Diagnosing organisational facilitating / hindering factors of performance
•
Competencies required for implementing an effective PMS
g) Understanding relevant frame work of performance for Indian context
Socio-cultural & Environmental Variables Employee Motivation to Perform Employee Performance Behavior Productivity or Performance Outcome for Organization
Employee Capability to Perform
Organizational Support System
Relationships Among Variables Affecting Performance
Misra & Kanungo (1994)
doc_129323785.ppt
This is a presentation explaining about the performance management.
Performance Management
Why look at / talk about PM?
? Market conditions- focus on quality,
cost & speed of delivery ? Influence of theories / findings of management research – core competence, competitive advantage
Why look at / talk about PM?
? Technology and competitiveness – BPR, CAD/CAM, JIT etc ; IT enablement ? Organizational restructuring and changerestructuring, delayering, right sizing, HPWS, out sourcing, etc ? Inadequacies of PA systems
Scope of Performance Management
? Organizational performance ? Employee performance ? Integration of the two
Components of PM
? Performance Planning
? Performance Measurement
? Consequence management
Performance Management - Emps
? ? ? ? ? ? Objectives, KRAs/ KPAs/ MBO Appraisals Performance feedback Performance counseling Rewards and consequences management Separation management
Performance Management - Orgn
? Vision, Mission, Values ? Strategy / Structure / Systems approach ? Alternately Purpose / Processes / People approach ? Balanced Score Card / Performance Prism ? BPR, BM, TQM, 6 Sigma ….
Performance Management Integration
Balanced Score Card • Corporate Score Card • Divisional / SBU Score Card • Departmental / Functional Score Card • Individual/ Personal Score Card
Performance Appraisal
A method of evaluating the behavior of employees in the work spot, normally including both qualitative and quantitative aspects of job performance. A systematic and objective way of evaluating both work-related behavior and potential of employees. A process that involves determining and communicating to an employee how he is performing the job and ideally establishing a plan for improvement
Six criteria of appraisal
? ? ? ? ? ?
Quality Quantity Timeliness Cost-effectiveness Need for supervision Interpersonal impact
Features of a good appraisal system
? Systematic process ? Objective ? Plan for improvement based on evaluation of current performance ? Periodic ? Not a job evaluation ? Formal
Objectives
? Determining the rewards based on performance levels ? Identify development needs
Rewards flowing out of PA
? ? ? ?
Promotion Compensation ESOPs Other non monetary rewards
Development initiatives
? ? ? ?
Performance feedback and counseling Training and development Personal development Coaching & Mentoring
Appraisal Process
? ? ? ? ? ?
Establish performance standards Communication of standards Measurement of performance Identify variance Performance feedback Corrective action
Appraisal Methodologies
? Individual evaluation ? Multiple-person evaluation ? Other methods
Individual evaluation methods
? ? ? ? ? ? ? ? Confidential Reports – CR Essay evaluation Critical incidents Checklists Graphic rating scale Behaviorally anchored rating scales- BARS Forced choice MBO
Multiple- Person evaluation
? Ranking method ? Paired comparison method ? Forced distribution method
Appraisal meeting and feedback
Objectives
? Communication of the employee performance level ? Enable employees to improve on their performance levels ? Plan out development and growth initiatives ? Improve and cement relationships ? Enable employees to express themselves
Appraisal meeting
? A prefixed time and a formal and serious matter ? Emphasis on objectivity and facts ? Adequate preparation by the appraiser ? Opportunity for the appraisee to express freely on all matters relating to performance
Appraisal feedback
? ? ? ? ? Preparation Objectivity Rationale on ratings Absolute and relative ratings “What should I do” to get there type of questions ? Escalations
Appraisal errors
? ? ? ? ? ? ? First impressions Halo Horn effect Leniency Central tendency Stereotyping Recency effect
Appraisal errors
? Appraisal form design ? Lack of preparation ? Disconnect with organization policies / practices
Factors to improve effectiveness
? ? ? ? ? Standardization and normalization Appraiser / Appraised training Absence of Hidden agendas Transparency Process reliability
360 Degree Appraisal & feedback
360 Degree appraisal
? a multi rater appraisal and feedback system ? assessed periodically by assessors who are his boss, immediate subordinates, colleagues / peers, customers ? appraisal done anonymously and collated by a consultant / HR and feedback given ? generally restricted to managerial level
Objectives
? Insights into the strengths and weaknesses
of appraisees for the effective performance ? Identification of development needs ? Enable data based reward systems ? Reinforcement of change management efforts and OD interventions ? Basis for performance linked pay ? Alignment of individual and organizational goals
Application areas
? ? ? ? ? ? ? ? Culture building Leadership development Career planning and development Potential appraisal and development Succession planning and development Team building Role clarity and accountability Customer satisfaction improvement
Advantages
? ? ? ? Higher objectivity Better receptivity to feedback Focus on internal customer satisfaction Ideal tool in culture / other change interventions
Prerequisites
? Total top management commitment, involvement and conviction ? No politics in play ? High credibility HR ? A fairly mature organization ? Process orientation in the organization ? Trust ? Other progressive HR interventions
Prerequisites
? ? ? ? Customer focused organization Values driven organization Competency as the basis for decisions Feedback for development is valued
Readiness of a candidate as seen through
? Absence of defensive reactions to feedback ? Believes in feedback for self development ? Learning orientation ? No history of psychological or psychiatric problems ? Healthy attitude for competition ? Open and receptive
Assessment Centres
Objectives / application areas
?Promotions ? Development needs ? Placement
Essentials
? ? ? ? ? ? Job analysis Multiple assessment techniques Situational exercises Behavioral responses and observations Multiple trained assessors Integration of observations
Accuracy
? Observations by line managers specially trained to observe behaviors ? Assessors have a broader perspective of the competencies required ? Assessors have a thorough knowledge of the company, its moorings and ideosyncrasies ? Group decisions are more accurate
Development Centres
? ? Intermittent feedback Workshops that measure the abilities against the agreed success criteria for the job
From Performance Appraisal
to Performance Management
While there are some exceptions……… satisfactory under performance is pervasive in corporate India
-- Managing Radical Change by Ghosal et. Al (2002)
The dynamics of satisfactory underperformance
Managers begin
to believe they are the best
Successful
Competitiveness, growth & profits
business strategy
Build layers of staff to cope with
growth
Gradual decline into
satisfactory under – performance and then to crisis Initiative and innovation stifled
External arrogance
and internal focus on control
In order to arrest gradual decline we need to nurture performance culture
WHAT IS A PMS ?
•
Macro level view of performance
•
• •
Long term orientation
Issues of creating a performing organization Issues of motivation
•
• •
Processes related to the above two
Institutionalise factors facilitating performance Remove hindering factors to performance
WHAT IS PAS ?
• • •
Limited in scope; micro view
Short term orientation
Only one of the processes involved in a good PMS
•
•
Merely a measurement mechanism
Tries mapping results and goals at an individual level
WHY THE SHIFT TO PMS ?
• •
Drive performance Create a performing organisation by nurturing performance culture
WHY THE SHIFT TO PMS ?
•
Will enable managers to address complex questions such as :
1) 2) 3) 4)
What is meant by performance? What leads to performance? How to measure effective performance? What does employee / team get if they perform?
WHY THE SHIFT TO PMS ?
•
Will force the organization to put following performance enabling processes in place :
-
-
Design of tasks Clarity of roles Well designed pay & reward systems Facilitating group structures Enabling leadership Flexible systems & processes
Components of an effective PMS
Individual-related factors (Competence to perform the role Motivation factors for individual Motivation process for individual )
Work-related factors (Leadership style, Characteristics of job, Work group composition and norms)
PERFORMANCE MANAGEMENT SYSTEM
Organization-related factors (Organizational fairness, Size of the organization Rewards & recognition system, Performance Measurement Process)
Performance Management System (PMS)
A continuous process which looks at performance in an organization from a holistic perspective, understands what
motivate individuals, what drives them to perform at
their full potential and also the processes that need to be created in an organization which support and push individuals to perform at their highest capabilities and potentials to meet the challenges posed by external and internal environment.
Competencies required for implementing an effective PMS
a) Knowledge of relevant conceptual motivational
theories / models and its application
?
Western Motivation theories like Maslow, Herzberg, McClelland, Vroom, Porter & Lawler, Alderfar, Patten Indian motivation theories like PI theory (Khandwalla), Motivational Analysis (Pareek), Social achievement (Mehta)
?
Competencies required for implementing an effective PMS
b) Design & delivery of suitable rewards & recognition systems &
integrate them with other HR systems to achieve organization's performance goal
?
Competency based reward system
?
? ?
Variable Pay
International compensation practices Intangible reward system
?
ESOP and its legal implications
Competencies required for implementing an effective PMS
c) Performance Coaching
? ? ? ?
Monitoring performance Diagnosing performance improvement Determining how to improve performance Providing constructive feedback
Competencies required for implementing an effective PMS
d) Using suitable tools to measure & evaluate performance at individual, team & organizational level
?
? ?
360 degree feedback
Team assessment Balanced score card
Competencies required for implementing an effective PMS
e) Developing enabling leadership style that aids performance
improvement
? ? ?
Transactional Vs. Transformational leadership NT Leadership (Sinha) Organisation specific leadership development plan
Competencies required for implementing an effective PMS
f) Understanding job and work group related norms
and implications for performance improvement
•
Job design (Oldham & Hackman) Role analysis Job Evaluation Team building Diagnosing organisational facilitating / hindering factors of performance
•
Competencies required for implementing an effective PMS
g) Understanding relevant frame work of performance for Indian context
Socio-cultural & Environmental Variables Employee Motivation to Perform Employee Performance Behavior Productivity or Performance Outcome for Organization
Employee Capability to Perform
Organizational Support System
Relationships Among Variables Affecting Performance
Misra & Kanungo (1994)
doc_129323785.ppt