Performance

Management
System
WHAT IS PERFORMANCE
MANAGEMENT SYSTEM?

-is the systematic approach to measure the

performance of employees. It is a process
through which the organization aligns their
mission,goals and objectives with available
resources (e.g Manpower, material etc), systems
and set the priorities.
WHAT IS THE DEFINITION
OF PERFORMANCE?
-the extent to which the worker does his job and
produce results
-the accomplishment of a given task measured
against preset known standards of accuracy,
completeness,cost, and speed
 WHAT IS THE DEFINITION OF
PERFORMANCE APPRAISAL?
-is a formal method for assessing
how well an individual employees
is doing with respect to assigned
goal. Its ultimate purpose is to
communicate personal goals,
motivate good performance,
provide constructive feedback, and
set the stage for effective
development plan.
-the process by which managers or consultant:
1.examines and evaluates an employee’s work
behavior by comparing it with preset standards
2.documents the result of the comparison
3.uses the results to provide feedback to the
employee to show where improvements are needed
and why.
Performance appraisals are employed t determine
who needs what training and who will be promoted,
demoted, retained or fired
WHAT IS THE DEFINITION OF
PERFORMANCE MANAGEMENT?

-is a systematic process by -a systematic process for improving

which an organization organizational performance by
involves its employees, as developing the performance of
individuals and members of individuals and teams.
group, in improving
organizational effectiveness
in the accomplishment of the
organization’s mission and
goals.

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 IMPORTANCE OF
PERFORMANCE
MANAGEMENT
-Performance management is key
to successfully growing and
scaling your company.
Contemporary performance
management is so such more
than performance review. It is all
about making sure your
employees are happy, engaged
and working towards your
collective company.
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1.Set goal: Explains to your team what excellent
performance is.
2.Develop accountable people: Engage your employees.
3.Managers who lead: Develop leadership and coaching
skills.
4.Organizational Transparency:Encourage performance
improvement.
5.Give credit where its due: Incentive accomplishment.
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PROCESS/STEPS OF
PERFORMANCE MANAGEMENT

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The Performance
Management Process
1.Planning - this pertains to the setting of
performance goals and expectations of groups and
individuals.
A.Roles
B.Key result areas
C.Technical competencies
D.Behavioral competencies
E.Objectives
F.Core values of the organization
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 2.Monitoring
- provides the mechanism by which performance will
be measured. It also entails giving constant feedback
to employees regarding their progress in achieving
the goals of the organization.
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3.Reviewing
- performance is reviewed from time to time
and compared with the performance standards,
goals and expectations which were agreed
upon during the planning stage.
A.Planning
B.Motivation
C.Learning and development
D.Communication
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4.Acting
-this includes activities based on the performance
review. It means giving an employee feedback on his/
her accomplishment of organizational goals.

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 STEPS IN IMPLEMENTING
PERFORMANCE
MANAGEMENT
1.Audit your current performance management system.
2.Make the case to senior management.
3.Decide how far you will go.
4.Decide how to replace the old performance model with new approaches.
5.Train your employees.
6.Evaluate the new system and report back to management.

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Challenges in Implementing Performance
Management System
1.Wrong design
2.Absence of Integration
3.Lack of Leadership Commitment
4.Ignoring Change Management in System
Implementation
5.Incompetence

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TYPES OF
PERFORMANCE
EVALUATION

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1.Self - assessment
- main types of performance evaluation.
- it is performed in two ways. First, the
employee responds to a questionnaire with the
purpose of reflecting on their own performance,
identifying their strengths and weaknesses. Then
their manager discusses with them about what
can be done to improve their performance.

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2.Team assessment
✘ it is essential that you can do n evaluation of the whole
team as well, since the sum of all efforts is one of the
main driving forces behind excellent results.
✘ make adjustments to align team members, improve
workflow, improve employee relationships and
communication, and thereby maximize the
achievement of goals.

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 -the simplest and most traditional
3.Graphic rating scale
performance evaluation

 Columned table

Place the variables that will be evaluated

Ex. Punctuality, assiduity, teamwork,
creativity
Place the values of each variable
Ex. Terrible, bad, regular, good or great 18
 4.360 degree rating
-360 degree rating is considered on of the most complete
performance review examples. This is because everyone
involved in an employees work routine is invited to
participate in the process.

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5.Forced choice
- in a form, a list is made up of several strategic
statements that can define the behavior of the
contributor.

Usually delays deliveries

Does not get along with co - workers
Fulfill their duties well
Is a proactive professional

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 6.Skill evaluation

- competency assessment goes beyond performance. With in it there are

three basic factors : KSA

 K - Knowledge : cognitive skills “knowing something”

 S - Skills : psychomotor domain, physical skills, “know - how”\
 A - Attitude : motivating factor “ wanting to do”

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7.Goals and result
✘ -this method of ✘ -the objective is ✘ Examples of factors to
performance to identify if the
employee being be evaluated:
evaluation has a
quantitative evaluated met the *Absenteeism
evaluation expectations of
approach. These the company. *Sales conversions
results achieved Because this is
based on numbers, *Customer satisfaction
by the employee
this assessment *Customer retention
in a given period
is more secure
are considered. and assertive

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8.Leader assessment
- leaders are responsible for directing their
teams towards success. When they perform
poorly, generally, this is reflected in their
employees as well
- leaders also needs to undergo evaluations and
receive feedback on their performance

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CHALLENGES IN
PERFORMANCE EVALUATION
1. Halo Effect 6. Inappropriate Actions
2. Horn Effect 7. Conflict of Interest

3. Rater Error 8. Emotional

Confrontation
4. Inappropriate
Questions 9. Organizational
Politics
5. Rater Bias
10. Ego Trippping
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11. Guessing Game 16. Legal Problems
12. Distractions 17. Breach of
13. Proxy Scoring Confidentiality
14. Inappropriate 18. Inability to
Instrument Differentiate
15. Timing

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“ “Thank you for
listening”

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