PERFORMANCE MANAGEMENT

Performance appraisals of Employees are necessary to understand each employee’s

abilities, competencies and relative merit and worth for the organization. Performance
appraisal is necessary to measure the performance of the employees and the organization to
check the progress towards the desired goals and aims.

The latest mantra being followed by organizations across the world being – "get paid according
to what you contribute" – the focus of the organizations is turning to performance management
and specifically to individual performance. Performance appraisal helps to rate the performance
of the employees and evaluate their contribution towards the organizational goals. If the process
of performance appraisals is formal and properly structured, it helps the employees to clearly
understand their roles and responsibilities and give direction to the individual’s performance.
It helps to align the individual performances with the organizational goals and also review their
performance.

Performance appraisal takes into account the past performance of the employees and focuses
on the improvement of the future performance of the employees

PREPARATION FOR PERFORMANCE REVIEW

The performance review meeting should not be strictly formal nor should it be completely
informal in nature. Ideally, the review meeting should be structured, semi – formal meeting
which needs prior preparation by the appraiser as well as the employee for it to be effective.

Following are some points that need to be prepared before the review meeting of Performance
appraisal:

• Inform the concerned employees the date, time and place for the review meeting well in
advance.
• Review and be prepared with each and every employee’s
o Job description
o Performance standards
o Planned performance goals
o Performance measures collected throughout the time period
o The critical incidents details
o Past appraisals of the employees.
• Be ready with all the important dates

• Give the employee a copy of the appraisal form

• The appraiser needs to completely understand the standards for the employees at same
level to maintain the consistency in the process.

• Prepare what to say and how to say it calmly.

• The feedback should be prepared in quantifiable measures where ever possible.

• The appraiser should be familiar with the performance review form and the details
 • The employee and the appraiser both should be prepared to discuss and figure out the
future goals and training needs

• They should be mentally prepared for constructive feedback

• Collect as many evidences to support your point as possible like the monthly, quarterly
progress reports.

PERFORMANCE REVIEW MEETING

The three key elements of performance review meetings are:

1. Feedback - Providing information on how a person has been doing.

2. Measurement – assessing results against agreed targets and standards.

3. Exchange of views - Ensuring that the discussion involves a full, free and frank
exchange of views about what has been achieved, what needs to be done to achieve
more and what employees think about their work the way they are managed and their
aspirations.

PERFORMANCE APPRAISAL TRAINING

Every organisation conducts performance for assessing the performance of the employees and
the organisation. But if not conducted properly, they can give a false impression about the
performance of the employees and affect the overall performance of the organisation;
therefore, there is a need to train the appraisers to ensure the maximum effectiveness of the
process.

Studies have revealed that appraisals are often conducted by the managers and the supervisor
who sometimes, are themselves not aware of the procedures to be followed. They should be
explained the importance and the implications of the Performance appraisal to the
organisations, the methods to be followed, the principles and the processes of the appraisal.

All managers and supervisors who consult performance appraisals should be given training
for the following:

• Methods, techniques and guidelines for setting goals and objectives

• How to evaluate the performance and rate the employees
• Standards for performance documentation
• How to complete a performance appraisal form
• How to maintain objectivity in the appraisal
• Questioning techniques for appraisals
• Responding to employee reactions
• Improves rapport and communication
• Building morale and motivating employees
• Observing and measuring performance
• Tracking results
• Structuring the interview with the focus on improving performance
• Feedback techniques (providing constructive feedback)
• How to deal with non-performers and people who refuse to co-operate
 • Post review actions
The training can be given by conducting special workshops by professional HR consultants or
qualified and experienced HR professionals of human resource management. The venue for
the purpose can be a suitable seminar hall, training room, conference hall, boardroom, or at
some place away from the workplace like some hotel etc.

HOW TO MEASURE EMPLOYEE PERFORMANCE

The most difficult part of the performance appraisal process is to accurately and objectively
measure the employee performance. Measuring the performance covers the evaluation of the
main tasks completed and the accomplishments of the employee in a given time period in
comparison with the goals set at the beginning of the period. Measuring also encompasses the
quality of the accomplishments, the compliance with the desired standards, the costs involved
and the time taken in achieving the results.

Measuring employee performance is the basis of the Performance appraisal processes and
performance management. Accurate and efficient performance measurement not only forms the
basis of an accurate performance review but also gives way to judging and measuring
employee potential.

For the purpose of measuring employee performance, different input forms can be used for
taking the feedback from the various sources like the superior, peers, customers, vendors and
the employee himself. All the perspectives thus received should be combined in the appropriate
manner and to get an overall, complete view of the employees’ performance. Observation can
also be exercised by the superior to obtain information. Some suggestions and tips for
measuring employee performance are:

• Clearly define and develop the employee plans of action (performance) with their role,
duties and responsibilities.
• Organizational outcomes or the achievement of organizational goals should also be kept
in mind.
• Focus on accomplishments and results rather than on activities.
• Also take note of the skills, knowledge and competencies and behaviors of the
employees that help the organisation to achieve its goals.
• If possible, collect the feedback about the performance of the employees through multi-
point feedback and self-assessments.
• Financial measures like the return on investment, the market share, the profit generated
by the performance of the team should also be considered.

For an organisation to be an effective organisation and to achieve its goals, it is very

important to monitor or measure its’ and its employee performance on a regular basis.
Effective monitoring and measuring also includes providing timely feedback and reviews to
employees for their work and performance according to the pre-determined goals and
standards and solving the problems faced. Timely recognition of the accomplishments also
motivates the employees and help to improve the performance.

Measuring the performance of the employees based only on one or some factors can
provide with inaccurate results and leave a bad impression on the employees as well as the
organisation. For example: By measuring only the activities in employee’s performance, an
organization might rate most of its employees as outstanding, even when the organisation
as a whole might have failed to meet its goals and objectives. Therefore, a balanced set of
 measures (commonly known as balanced scorecard) should be used for measuring the
performance of the employee.

4 Key Benefits of Performance Management

1. PM focuses on results, rather than behaviors and activities
A common misconception among supervisors is that behaviors and activities are the same as
results. Thus, an employee may appear extremely busy, but not be contributing at all toward the
goals of the organization. An example is the employee who manually reviews completion of
every form and procedure, rather than supporting automation of the review. The supervisor may
conclude the employee is very committed to the organization and works very hard, thus,
deserving a very high performance rating.

2. Aligns organizational activities and processes to the goals of the organization

PM identifies organizational goals, results needed to achieve those goals, measures of
effectiveness or efficiency (outcomes) toward the goals, and means (drivers) to achieve the
goals. This chain of measurements is examined to ensure alignment with overall results of the
organization.

3. Cultivates a system-wide, long-term view of the organization.

Richard A. Swanson, in Performance Improvement Theory and Practice (Advances in
Developing Human Resources, 1, 1999), explains an effective performance improvement
process must follow a systems-based approach while looking at outcomes and drivers.
Otherwise, the effort produces a flawed picture. For example, laying off people will likely
produce short-term profits. However, the organization may eventually experience reduced
productivity, resulting in long-term profit loss.

4. Produces meaningful measurements

These measurements have a wide variety of useful applications. They are useful in
benchmarking, or setting standards for comparison with best practices in other organizations.
They provide consistent basis for comparison during internal change efforts. They indicate
results during improvement efforts, such as employee training, management development,
quality programs, etc. They help ensure equitable and fair treatment to employees based on
performance.

15 Other Benefits of Performance Management

Performance Management (PM):
1. Helps you think about what results you really want. You're forced to be accountable, to "put a
stake in the ground".

2. Depersonalizes issues. Supervisor's focus on behaviors and results, rather than

personalities.

3. Validates expectations. In today's age of high expectations when organizations are striving to
transform themselves and society, having measurable results can verify whether grand visions
are realistic or not.

4. Helps ensure equitable treatment of employees because appraisals are based on results.

5. Optimizes operations in the organization because goals and results are more closely aligned.
6. Cultivates a change in perspective from activities to results.

7. Performance reviews are focused on contributions to the organizational goals, e.g., forms
include the question "What organizational goal were contributed to and how?"

8. Supports ongoing communication, feedback and dialogue about organizational goals. Also
supports communication between employee and supervisor.

9. Performance is seen as an ongoing process, rather than a one-time, shapshot event.

10. Provokes focus on the needs of customers, whether internal or external.

11. Cultivates a systems perspective, that is, focus on the relationships and exchanges between
subsystems, e.g., departments, processes, teams and employees. Accordingly, personnel focus
on patterns and themes in the organization, rather than specific events.

12. Continuing focus and analysis on results helps to correct several myths, e.g., "learning
means results", "job satisfaction produces productivity", etc.

13. Produces specificity in commitments and resources.

14. Provides specificity for comparisons, direction and planning.

15. Redirects attention from bottom-up approaches (e.g., doing job descriptions, performance
reviews, etc., first and then "rolling up" results to the top of the organization) to top-down
approaches (e.g., ensuring all subsystem goals and results are aligned first with the
organization's overall goals and results).

FOR HR SERVICES CONTACT

DR.MOHAMMAD SHAHBAZ ALAM

Sec-3,B-6/151, Rohini, Delhi-110085
shahbaz@meherpharma.com, mobile:-0091-9818131498

COPYRIGHT@MEHER PHARMA INTERNATIONAL