Performance Management Process

Chapter 2, Managing Performance by Michael Armstrong & Angela Baron

Performance Management Processes

1. Performance Planning 2. Defining Expectations 3. Objectives 4. Measuring Performance 5. Reviewing Performance 6. Providing Feedback 7. Assessing Performance 8. Rating Performance 9. Coaching 10.Documentation

Performance Management Processes

1. Performance Planning
Setting directions Performance agreements (cascading organization goals) Personal Development Planning

2. Developing Expectations
More than simply output targets Why, when, how, what?

3. Objectives:

agreement on objectives and how to measure that these are achieved

May be Quantitative/Qualitative or a mix of these two Work-related/Personal/Behavioural Types On-going (key result areas) Targets (quantifiable and those with target dates (deadlines) Tasks/Projects Values Behaviour

4. Measuring Performance:

very important to determine the criteria for measuring performance at the planning stage.

Difficult, if qualitative criteria has been adopted Potential for being judgmental, biased or inconsistent Need for factual evidence on which to base judgments Level of the control of the ratee on his results Classification of Performance Measures Finance

5:continuing process of performance management

6. Reviewing Performance: Formal and periodic review is necessary, provides opportunity to reflect on performance development and personal development issues, should employ two- way Three Objectives Motivation, communication Development, Communication Conducting a Performance Review Meeting Be prepared- have a clear structure of the meeting Create the right atmosphere Use Positive Feedback good opening Two way Communication Ensure/Invite Self-appraisal

7. Providing Feedback:
Two basic purposes 1. To recognize/acknowledge good performance 2. To indicate areas of improvement Guidelines 1. Feedback on actual events, results, behaviors (evidence) 2. Providing immediate feedback 3. Describe, dont judge 4. Refer to specific behaviors 5. Ask questions 6. Select key issues 7. Focus 8. Provide Positive feedback

8. Assessing Performance
Traditionally based on the philosophy of Management by Objectives (MBO) But now concerned both with Means and not just Ends Contextual Realities Individual Behaviors

9. Rating Performance
Argument for rating: Advantages Categorization of workers based on performance Administrative Decisions (Contingent pay, transfer/postings, promotions) Documentation Provides an incentive or compulsion for improving performance Argument against rating Disadvantages

 1. 2. 3. 4. 5. 6.

Achieving Consistency Forced Distribution Ranking Systems Training Calibration (Peer Reviews) Monitoring (by HR) Grandparenting

10,11 Coaching and Documentation

10. Coaching process
Making people aware of how well they are performing Controlled delegation Turning situations into opportunities for learning Encourage people to look at higher level problems

11. Documentation

Key result areas Objectives agreed The values or competency headings Actual performance against expected performance (head-wise) Details of any plans for performance improvement and development