PERFORMANCE MANAGEMENT

ARTICLE REVIEWS

Submitted To: Prof. J. Mohanty Submitted By: Anuj Arora (2010042)

(http://www.the-happy-manager.com/definition-of-performance-appraisal.html)

Definition of Performance Appraisal

What is your definition of performance appraisal? Far too many managers might believe that it's an annual review of an employee's performance within an organization. Indeed, this is a common definition so it's hardly surprising that this is the case. However, this definition is perhaps too simplistic if performance appraisal is to be truly effective.

In this article we consider five elements that form the foundation of an effective definition of performance appraisal. 1. A performance appraisal needs to be a series of constructive, developmental discussions, between line managers and their reports. They should focus on helping people to realize their potential. To be effective, appraisals need to be a series of conversations that culminate in the performance appraisal review. It's much more effective (and easier) to appraise performance by regular meetings to discuss progress and provide support, rather than to wait for a single, annual appraisal meeting. 2. An appraisal should not be a top-down process, where one side asks questions and the other responds. An effective appraisal meeting should consist of an open dialogue, more of a two-way conversation. Performance appraisal needs to be a joint effort - it's as much about self-appraisal as it is about the manager's view. 3. Appraisals are a shared assessment of performance, where performance is appraised jointly and goals are agreed together. The individual's goals need to be aligned with those of the team or organization. 4. Performance appraisals should be based on trust and mutual respect. An appraisal works best when manager and employee know each other and there is mutual respect between the two. Such conditions need to be built over time with the manager taking the lead. 5. Appraisals are a key part of the performance management cycle. Appraisals are an important part of performance management, but an appraisal in itself is not performance management. Performance management is a broader process of which an appraisal is only one stage. For example, in the performance management cycle, the review and planning elements typically form an appraisal. However, the development and performance stages are part of the broader performance management process. To manage performance requires more than just a performance appraisal!

So, a definition of performance appraisal could be: A process of mini reviews culminating in a one-to-one conversation betweeen managers and their reports. These are used to develop a shared understanding of the individual's performance. At these meetings, the individual's development and future goals are discussed, especially where the best contribution can be made, based on the successes of the review period. In summary a performance appraisal should be: A series of conversations that culminate in the appraisal review A two way conversation A shared assessment of performance and of future goals Based on mutual trust and respect Part of the performance management cycle

ARTICLE REVIEW
Here, author tries to explain the term Performance Appraisal in a broader and more effective sense. He tries to give the exact sense of Performance Appraisal which is mostly misunderstood by managers these days as being just a tool for review of performance or targets achieved. An Appraisal is not the review but its a series of discussions that arise from the review. It should be an ongoing process where performance is continuously reviewed, employees are appreciated, motivated to perform better and their hidden potential is realized. It should be focused on being more of a two way interaction rather than one party speaking and other listening. Employees should be given enough opportunity to speak up regarding the problems faced, their achievements, their suggestions and it is always advisable, in fact before deciding anything for any employee, managers should share & discuss the concerned employees point of view before taking or coming on any decision. Goals should not only be discussed but they should be agreed together. It is very important for a successful Performance Appraisal to have mutual trust and respect between manager and employee. Where the managers should trust on their employees potential, employees should have full faith on their managers management. Ideas from the both sides should be respected and wee appreciated. This makes an ideal environment for Performance Appraisal. Appraisal consists of a very little part of the broader term Performance Management. So, here author gives a more realistic definition of Performance Appraisal: A process of mini-reviews culminating in one-to-one conversation between managers and their reports. These are used to develop a shared understanding of the individuals performance. Hence, the idea behind the Appraisal should be to discuss performance, share views, discuss individual goals which are set aligned to the organizations long term goals and the most important part here is that the targets should be set in such a way that employees should be able to perform and their potential is realized.

Learnings: So, a performance appraisal should be: 1. 2. 3. 4. 5. A series of conversations that culminate in the appraisal review A two way conversation A shared assessment of performance and of future goals Based on mutual trust and respect Part of the performance management cycle

(http://www.etsplc.com/news/performance-appraisal-human-resources-november-2009.aspx)

Performance appraisals: Must try harder

Performance appraisal article in Human Resources - November 2009 Research shows many employees think appraisals are a waste of time because they are not tied into reward decisions, career development and promotion prospects. Sarah Goles reports If organisations reviewed their own performance appraisal systems, there is a good chance they would gain a 'does not meet expectations' rating. New research has revealed serious shortcomings in appraisals, which means talent is not being identified or engaged. The question is not just about whether managers make the most of their talent management tools, but whether the tool itself is up to the job. The figures show dissatisfaction on a massive scale. A survey of 175,000 employees by assessments company ETS found 38% are unhappy with their employer's appraisal system. This supports research by YouGov for Investors in People, which recently found 29% of those who are given appraisals think they are a waste of time. Appraisals seem to be failing on four counts. First, they do not engage talent and make them feel recognised, because managers don't take them seriously. The YouGov survey found 23% of those who are given appraisals think their manager looks on it as a tick-box exercise, and 19% think their manager does not even think about it until they are in the room. Second, they still fail to give employees effective objectives for the future. John Mahoney-Phillips, head of the leadership, performance and talent team at UBS AG says: "A major source of dissatisfaction is the clarity of objective setting and the extent to which the appraisee is involved in the setting and ongoing review of achievement against objectives". In many cases objectives are also divorced from the broader needs of the business. In fact, the ETS research found only 74% of people knew what the company wants to achieve over the next year, falling to 66% in professional services and 60% in manufacturing. Third, appraisals fail to provide a roadmap for the development of talent Appraisals are meant to result in individual plans for employee development, but the YouGov survey found only 21% think their manager will al- ways act on these plans and 20% say their boss rarely or never follows up concerns. The ETS survey found only 67% are happy with their opportunities for career development. Finally, appraisals still do not feed into broader promotion and reward Mahoney-Phillips says: Very often processes aren't as transparent as they could be, in terms of the factors that go into promotion decisions. Organisations must work to make standard clear to employees. As a result, the ETS survey fund only 59% of people believe the promotion system is fair, while the YouGov survey found 21% have had an appraisal they thought was unfair.

These flaws should not be beyond fixing, but HR directors say manager: must be trained to buy into the process Dawn Etherson, human resource manager, Aggreko Manufacturing says: "I have seen the value of appraisals first-hand. I know they can be motivating." The ETS survey found line managers are able to work outside a formal system. The same survey actually found 81% of employees feel they are well-managed and 85% say their immediate manager shows appreciation of their work. Its just a case of embodying this within the appraisals. Some companies are bucking the trend shown by the research. On linking employees' objectives with the broader business, group HR director of Land Securities Angela Williams says: "All our performance measures are aligned with business objectives at the individual, business unit and group level. Employees can see their contribution makes a difference." Some appraisals are also being fed directly into personal development and reward. Gabrielle de Wardener, human resources director for Groupe Aeroplan, the loyalty management company that runs Nectar, says. "In the first instance, information from appraisals feeds into bonus payments. They are based 50% on company performance and 50% on individual performance , and we are quite explicit about what has been awarded from each. We also take appraisals into account when deciding promotions and succession planning." Helen Frewin, head of people performance at Gala Coral, is equally explicit about this link: "The scores feed into pay. The four-point rating scale will relate to the percentage of pay they are awarded, once the scores have been calibrated." Some, however, feel the performance review is just one conversation a year, and there needs to be ongoing communication if employees are going to remain engaged. Significantly, the line manager may not always be the best person to identify talent. According to Sue Filmer, principal at Mercer HR Consulting, talent management is made up of "different data points". She says: "The appraisal is one of these points, but it's the view of just one manager and it doesn't tell you anything about potential." At Agrekko, the human resources department provides an additional point of view. Etherson says: "At the end of the appraisals I conduct a people review with the function heads to identify talent, and then roll that up to the managing director, so there's a strategic view of talent from the top." Elsewhere, this more rounded view could come from leaders. Filmer says: "In some cases the managers make the initial Judgment and groups of them, get together in a meeting to share views and come to a wider consensus." If this starts to sound like 360-degree feedback, it is because it is. "Organisations can pull data from 360degree questionnaires to gather a broader range of information, so it doesn't allow bias or prejudice to creep in," says Tracy West, senior consultant at the Assessment, Development and Talent Practice at Reed Consulting. And more HR practitioners are also being encouraged to provide mentors.

Charlie Keeling HR Director of Field Fisher Waterhouse LLP, says: "We have a mentoring scheme for all staff, but once you get to senior associate level, mentoring is much more focused and regular and aligned with the relevant career path." Carole Tansley, professor of HR innovation and director of the International Centre of Talent Management and Development at Nottingham Business School, adds: "Organisations have reported a range of additional methods. These include: involvement in 'stretch' projects; taking on a new area of responsibility; one-to-one coaching; and visits to external sites for benchmarking and personal development." Appraisals do still have their place. However, they are just one link in the talent management chain, and at the moment in many organisations they may well be the weakest link.

ARTICLE REVIEW
In this article, the author has talked about one of the main tools of Performance ManagementPerformance Appraisals. Research reveals that a major chunk of employees are not satisfied with the current Performance Appraisal System which their organizations are following. Now, the major question here is whether there is some problem in the implementation part or something is lacking in the system itself. As the concern here is that the process followed is not aimed at rewards, recognition & career growth. Employees show dissatisfaction as they are not getting the right career path in their current organizations. To summarize the whole thing, the main concern here from employees side include lack of seriousness in managers for their teams appraisal, lack of awareness amongst the employees regarding the longtern organizational goals or, inability of managers to show them the right picture of organizations objectives and last but not the least, appraisals give less scope for individual development of employees. Performance Review should be more of an ongoing process so that it can bring continuous and timely improvements in employees performance rather than discussing once in an year or once in 6 months. However, there are some organizations which are not inline with the trend shown by the research. Managers claim that their appraisals actually work as a guiding light for the employees where they can see how their performance has contributed the organizations growth. They even say that the kind of performance bonuses they had been giving to the employees reflect very clearly that it includes based on their individual performance as well as performance of the organization. Appraisals play an important role in deciding promotions and succession planning. Experts suggest that a 360 degree questionnaire should be implemented to avoid biasness and favoritism. Changes in Performance Appraisal approach should be made according to different levels in organization. More behavioral aspects should be included and consideration should be given if an employee is being more proactive or going out of the way to achieve commitments. On the whole, there are some serious drawbacks in implementation of current Performance Appraisal System which if taken care of can motivate the employees to a large extent and hence increase job satisfaction among them.

(http://www.the-happy-manager.com/how-to-motivate-employees.html)

How to Motivate Employees to PERFORM

Knowing how to motivate employees is one of the most important aspects of a manager's job. An excellent tool to help you develop your motivational skills is our Apex PERFORM model. Use this model to help you create and manage the conditions for improved performance in the workplace. This article introduces our series on performance management and outlines the PERFORM framework as a whole. There are 7 other articles in the series, all of which you can access from this page. Dictionary definitions of the word "perform" refer to things that are accomplished or fulfilled. All too often, though, performance management is about a narrow interpretation of these definitions, such as just ensuring targets are met, or that processes are adhered to. Performance management is now often seen as a corrective action, something we do to manage poor performance. Of course we need to set goals, and we need processes to provide structure. However, these should not be a main focus of management, and certainly not at the expense of encouraging people to realise their potential. Maybe we should be talking about performance management as something to help our people accomplish something significant. Perhaps we should think about fulfilment in terms of realizing results, but also realizing potential. Surely that is how to motivate employees. Anything significant or worthwhile will involve the management of skills, attitudes and potential. It will also require the deployment of resources and a focus on achieving goals. Motivating our people is not necessarily an easy function of management, but it is one area where good management really can make a difference. Regardless of how performance management processes are designed in your organization, or of the culture within which they're embedded, how you interpret and use performance management techniques is up to you. What is most important is the need to manage the factors that contribute to employee motivation, and to create the conditions for people to perform and realise their potential. Our tool to help you develop these management skills is the Apex PERFORM model. It stands for: P - Potential - foster a positive attitude towards developing potential in your people E - Expertise - abilities, experience and attitudes needed to perform a job R - Results - for individuals, for their teams, and for their organisations F - Focus - on worthwhile, challenging, personal goals that relate to wider objectives O - Opportunities - to achieve, advance and grow R - Resources - needed in order to support people and to help them perform M - Motivation - making work interesting and challenging

When considering this model, it's important to remember that all of the factors are interdependent. For example, the absence of proper job training will affect a person's expertise. This will probably affect their motivation, and quite likely their opportunity to progress. Conversely, the absence of opportunity to develop may have a negative impact on their motivation, and thus their desire to learn or apply themselves. Potential Learning how to motivate employees begins with helping people to reach their potential. If we are to find ways to raise performance up to the next level, then we need to find ways to convert potential into performance. "Employees Appraisal: Realizing Potential" is the first article in our series for a good reason. Motivating employees to perform must begin with helping them to realize their potential. Expertise "Employee Performance Review: Making Expertise Count" is the second article in our series and stresses the importance of putting someone's expertise to work, where it can contribute the most. By expertise we mean the skills, knowledge and behaviour that people must possesses, or need to possess, in order to do their job. Results Our third arcticle in the PERFORM series is: "Benefits of Employee Training: Seeing the Results". Here we ask: how do you realize the benefits of the training and support you've provided to improve someone's performance? If performance is about contribution, then support must be linked to results. There needs to be clarity about what results you want to achieve, and an assessment of what results are actually achieved. Focus Performance needs focus. It's one thing to do something well, but it's equally important to ensure it's the right things that are done well. Individual performances, whilst possibly being good in themselves, can be counterproductive if they don't contribute to the wider goals of the team and organization. Controlling this requires good planning and good management. We give some tips on how to do both in: "Performance Management Plan: Be Focused". Opportunities Without opportunities, a performance management plan will only ever be just just that: a plan. Knowing how to motivate employees is not enough. That knowledge must be combined with a willingness to give people opportunities to perform. We discuss this crucial element of our PERFORM model in our article: Employee Training Development.

Resources Performanced based management is about more than ambition, words or ideas. To encourage employees to perform you need to support them with the right resources. These resources must then be allocated and managed in order to ensure they are most effectively used. Having provided opportunities for people to perform, next it's crucial to understand the importance of resourcing performance based management. Motivation Knowing how to motivate employees is a complex business and there are numerous pages on this site designed to help. Employee Motivation Techniques has been especially written to relate to the PERFORM model. In this article we explore some fundamental principles of motivation but also ask some more challenging questions. The Energy to Perform Of course, just knowing how to motivate employees is not enough. Motivation is important but it's not effective without energy. Whilst motivation is considered to be the intent or desire to act, energy can be defined as the capacity to perform work. If you want to know how to motivate employees properly, use the Apex PERFORM model. It will help you combine the intent or desire of motivation, with the capacity and capability to achieve, that is: to PERFORM.

ARTICLE REVIEW
The author here in this article has tried to explain the importance of motivation for the effective performance of the employees hence increasing organizations productivity. He further talks about the Apex PERFORM Model which can help to improve employees performance.

He tries to change the thinking pattern of the managers by explaining Performance Management as a means to improve the poor performance rather than just ensuring whether targets are met or processes adhered to or not. The idea should be to find the pitfalls and work on it rather than just appreciating targets achieved or criticizing the bad performance. Of course, setting goals and ensuring whether employees have met set goals is important but the more important part is whether they motivated enough to achieve further goals. The process should be more focused towards realizing potential rather than achieving results. The idea here is to make the process more long-term oriented, i.e., deciding future goals and discussing ways to achieve these goals.

The author further explains Apex PERFORM Model in an excellent way to achieve this state: P- Potential E- Expertise R- Results F- Focus O- Opportunities R- Resources M- Motivation Where each and every tool mentioned above is equally important, the absence of one can lead to the failure of other.

Here, P stands for Potential i.e. helping employees realizing their hidden potential and assisting them in converting their potential into performance. And this can only be done by motivating them. So, both will go hand in hand, motivating employees will help them realize their potential and employees who get aware of their hidden potential will themselves be motivated.

E, R, F stands for Expertise, Results and Focus respectively. An employee should have the required skills, attitude and experience to have expertise in his work, on the other hand it is also very important for managers to know which the best area where an employee can perform is or at what area he/she has expertise.

Talking about next tool- Results. Results are important but at the same time it is also very important for employees to get the right training to achieve the results and also having focus on the right things. A high individual performer can become a cost to the company where his performance is doing no good to the organization and its goals.

O, R, M stand for Opportunities, Resources and Motivation respectively. Motivation is the backbone of any Performance Management System but motivation without giving opportunities to perform will not help. And for giving opportunities to the employees, managers must have the right resources.