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Performance

Management Process

Presented By
Megha Patel (M3156100)
Aishwarya
Talnikar(M3156053)
Rupali Barange

Performance management
Definition:
According to Louis and David
Performance Management is the employees
activity and their output to organisational
goal .

Following are the process of Performance


Management .

Performance Planning

Performance Managing

Performance Appraisal

Monitoring Performance

Performance Planning
According To Bacal
Performance Planning is a process in
which employee and manager work together to
determine what the employee should be doing in
the next year and what successful performance
means

Characteristics of performance
planning

It is the foundation of effective performance management.


Its starts with understanding of organisational objectives and
strategy , and ends with setting of performance criteria.
It specifies the action required to accomplish each goal and
expectation.
It identifies resources required for the success of the
individual and work-unit.
It is tool to help individuals to contribute their best to an
organisation in terms of ability , efforts,results.etc
It provide a valid basis for distingushing levels of
performance.

Objective of performance
planning
At organisational level : To clearly define and communicate to employees the
organisations mission ,objectives, strategies and
performance goals.
To provide appropriate resources, support,and training
to employees.
To ensure employees receive feedback on a continuous
basis.
To align job descriptions with organisational objectives
and strategy.
To boost motivation and self concept of the employees.

At manager level.
To provide opportunity to employees for joint goal
setting.
To clearly articulate performance metrics used to
measure .employee success in meeting target.
To provide training ,where were required and on the job
feedback.

At employee level

It determine performance goals and targets with the


manager.
To view manager as mentor.
To become receptive to feedback.

Process of performance
Planning
1) Setting Objectives.
2)Organisational and
Individual Performance plan.
3)Setting Mutual expectations
and performance criteria.

Setting Objective
According to H-Igor Ansoff Objectives are
decision rules which enable management to guide
and measure the firms performance towards its
purpose
Characteristics of good objectives
1)Consistent
2)Precise
3)Challenging
4)Measureable
Achievable within capabilities of the individual.
Time related
Focused on team work.

Organisational and Individual


Performance plans
It is a tool for managing both employees
behaviour and outputs.
It is aimed at developing people and improving
their performance by aligning personal goals with
those of wider organisation.
Element and Standards of Performance plan.
1. Element
It reflect the components of a job that are
sufficient to require appraisal.

1)Critical Element
2) Non critical Element
Critical Element It is an assignment or responsibility of
such importance that unacceptable performance in that
element would result that overall performance is
unacceptable.
Non critical Element It is Dimension or aspect of individual
,team, or organisational performance ,exclusive of a critical
element ,that is used in assigning a summary level.
Performance standardAppraisal system require performance standards
which serve as benchmarks against which performance is
measured .
The standard set for performance must be clearly defined
and unambiguous .
They should be attainable by a normal employee.

Setting Mutual Expectation and


performance criteria
It creates a shared understanding of
1.

what is required to improve performance ?

2. How this will be achieved by clarifying and


agreeing what people are expected to do ?

Performance Managing
Performance managing defines as
the process of working towards the
performance expectations
established in the performance
planning stage ,analysing progress
achieved on continual basis and
counselling for improving results.

Characteristics of
Performance managing
It seeks to realise performance planning within
the framework of business plans of the
organisation.
It helps to keep check on employees performance
so as to keep them aligned to the objectives of
the organisation.
It facilitates employee to improve their
performance on a continuous basis. Based on the
input given by managers on periodic basis.
It develops an analytical insight among
employees to look into their efforts and results in
more critical manner.

Objective of Performance
managing
Defining mutual expectations of
managers/organisation and employees.
Actualising the performance plans of all the
employee by improvising employee performance
on a continual basis.
Analysing the ongoing efforts of the employees
inorder to remove performance deficiencies.
Managing performance as a relationship.
Creating challenging and satisfying the
development plans.

Process of Performance
Managing
Analysing performance This step involves
understanding the various factors contributing to
performance both- positively and negatively for a
given period. For example keeping the manager
informed, Making notes of various factors working
towards performance criteria. And comments and
notes for improvement from the manager.
Reinforcing Right Efforts- This steps pertains
to encouragement ,support,and visiblity which
the manager provides to the employees for
making correct progress in a work as per
performance plan.

Removing
performance
DeficienciesManagers must also provide vision , help, and
resources to those employee who are not able to
meet their performance goals\objectives.
For example- Personal problems -Lack of
competencies, commitment ,role clarity
Organisational problems- politics ,lack of
resources, lack of system and procedure.
However Employees should not be encouraged to
seek organisational reasons for their failures.

Improvement plans- Not only those employees


who are lacking in performance need to be given
improvement plans ., also Good performers also
need to given good improvement plans.
Managers must provide appropriate tools
,techinique and methodologies for improving
performance of all employees on continuous
basis.

PERFORMANCE
APPRAISAL
According to Mondy et al, Performance
appraisal is a system of review and evaluation of
an individuals performance
According to Gomej-Mejia et al Performance
appraisal involves identification, measurement
and management of human performance in
organisation.
According to Flippo- Performance appraisal is
defined as systematic, periodic,and as far as
possible , am impartial rating of an employees
excellence in matters pertaining to his present job
and to his potentialities for better job.

Features of Performance
Appraisal

Systematic process
Evaluating process
Periodic process
Future oriented process
Determine Employees Potentialities.
Develops employees

Objectives for
performance Appraisal

Providing feedback.
Facilitating Promotion and Downsizing decisions.
Motivating Superior performance.
Setting and measuring Goals
Determining Compensation.
Counselling poor performers
Encouraging coaching and Mentoring
Supporting Manpower planning.
Determining training and development needs
Improving overall organisational performance.

Process of performance
appraisal
Established performance standard s with
employees.
Mutually set measurable goals.
Measure actual performance.
Compare Actual performance with
standards.
Discuss the appraisal with the employee
If necessary , initiate corrective action.

Types of performance
appraisal
Trait based approach.
Behaviour based approach.
Result based- approach.
Trait based approach.- It is used to assess the
personality or personal characteristics of
employees , such as ability to make decisions ,
communication skills, loyalty to the company.

Behaviour based- approach Assessment can


consider the behaviour of employees rather than
their personal traits.
For example a salesperson should greet
customers as they enter the store, help them for
they are looking for. Thanks them for their
business. Its possible salesman is not following
preferred process but he might complete sales.
But this individual would not be representing the
store in the way manager preferred.
A sound behaviour based assessment would not
the salespersons failure to follow the preferred
process.

Result based approach- It involves the


identification of targeted outcomes or results.
In this method, employees are evaluated based on
how well they have accomplished a specific set of
goals deemed to critical to successful job
completion.
For example- How many cars employees sold or
how much profit the employee brought into
organisation during the month.
In this approach the means is considered very
important, salespersons would receive same
evaluation even though they achieved their results
using very different means.

Thank you ..

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