Performance

Management Process

Human Resource
Management
 Performance Management Process
Setting Objectives
Performance Review
Coaching and feedback

Human Resource
Management
 People development process

1. Business Objectives
2. Individual and organizational effectiveness
3. Staffing
4. Performance management
5. Competencies/ Skills
6. Education & Training/ Development
planning

Human Resource
Management
 Purpose for a Performance review

1. Recognize people for what they have done

and how they did it
2. Talk about objectives and responsibilities not
yet accomplished
3. Guide people in what they need to do and
how to do it
4. Motivate people toward improving
performance to achieve results.

Human Resource
Management
 What is a “SMART” objective?

1. Specific
2. Measurable
3. Action – Oriented
4. Realistic
5. Time-bound

Human Resource
Management
Effective Objectives must be “SMART”
 Specific: Clearly state the outcome you expect to
achieve (what specifically needs to be done)
 Measurable: Can be quantitatively or
qualitatively determined
 Action-Oriented: Describe what action will take
place and what the results will be
 Realistic: Have a reasonable expectation of being
achieved
 Time-bound: Specify a timeframe in which your
results should be acieved.
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Human Resource
Management
The Balanced Scorecard - What is it

The Balanced Scorecard is a management tool

that provides stakeholders with a comprehensive
measure of how the organization is progressing
towards the achievement of its strategic goals.

Human Resource
Management
The Balanced Scorecard - What is it
The Balanced Scorecard:

• Balances financial and non-financial measures

• Balances short and long-term measures

• Balances performance drivers (leading indicators) with

outcome measures (lagging indicators)

• Should contain just enough data to give a complete picture of

organizational performance… and no more!

• Leads to strategic focus and organizational alignment.

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Human Resource
Management
The Strategy Focused Organization

Mission – What we do

Vision – What we aspire to be

Strategies – How we accomplish our goals

Measures – Indicators of our progress

Human Resource
Management
The Balanced Scorecard and The Big Picture

•Activity Based Costing

•Economic Value Added
•Forecasting
Strategic •Benchmarking
Planning •Market Research
•Best Practices
Mission
•Six Sigma
and
Vision
•Statistical Process Control
•Reengineering
Balanced •ISO 9000
Scorecard •Total Quality Management
•Empowerment
•Learning Organization
•Self-Directed Work Teams
•Change Management

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Human Resource
Management
 Strategic Direction
Create Environment Strategic Performance Management System
For Change

Communicate Strategies
Define Objectives
Implement BSC

Balanced Scorecard
Measure Performance
Improve Processes

Evaluate and Adjust

Linking it all together…. Continuous Improvement
Redefine Initiatives
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Human Resource
Management
 THE BALANCED SCORECARD

FINANCIAL/REGULATORY
CUSTOMER
To satisfy our constituents,
To achieve our vision,
what financial & regulatory
what customer needs must
objectives must
we serve?
we accomplish?

INTERNAL
To satisfy our customers and
stakeholders, in which business
processes must we excel?

LEARNING & GROWTH

To achieve our goals, how
must we learn, communicate
and grow?
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Human Resource
Management
 Customer Perspective

To achieve our vision, what customer needs

must we serve?

Possible Performance Measures

o Customer Satisfaction (Average)

o Satisfaction Gap Analysis (Satisfaction vs. Level of Importance)
o Satisfaction Distribution (% of each area scored)

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Human Resource
Management
Financial / Regulatory Perspective

To satisfy our constituents, what financial and

regulatory objectives must we accomplish?

Possible Performance Measures

o Cost / Unit
o Unfunded Requirements or Projects
o Cost of Service
o Budget Projections and Targets

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Human Resource
Management
Internal Perspective

To satisfy our customers, in which business

processes must we excel?
Possible Performance Measures
o Cycle Time
o Completion Rate
o Workload and Employee Utilization
o Transactions per employee
o Errors or Rework

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Human Resource
Management
Learning and Growth

To achieve our goals and accomplish core activities, how must

we learn, communicate and work together?
Possible Performance Measures
o Employee Satisfaction
o Retention and Turnover
o Training Hours and Resources
o Technology Investment

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Human Resource
Management
 Targets

“If you don’t know where you’re going, you’re

probably not gonna get there.”

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Human Resource
Management
 Targets
• Targets need to be set for all measures

• Should have a “solid basis”

• Give personnel something for which to aim

• If achieved will transform the organization

• Careful not to develop measures/targets in

a fragmented approach:

i.e. Asking people to increase customer satisfaction has to be backed up

with the knowledge, tools, and means to achieve that target.

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Human Resource
Management
 Initiatives

 Once measures and targets are established, it

is the responsibility of management to
determine HOW the organization will achieve
its goals.

 Measures are used to determine the

effectiveness of strategic initiatives.

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Human Resource
Management
•THANK YOU
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Human Resource
Management