Performance Management of Human Resource in Organizations

Prepared By: Konica Rauniyar

Performance Management : Introduction

Performance management is an ongoing, continuous process of communicating and clarifying job responsibilities, priorities and performance expectations in order to ensure mutual understanding between supervisor and employee. It is through this process that organizations are able to create and sustain a workplace environment that:
Values continuous improvement Adapts well to change Strives to attain ambitious goals Encourages creativity Promotes learning and professional development Is engaging and rewarding for employees

Objectives of Performance Management

Increase two-way communication between supervisors and employees Clarify mission, goals, responsibilities, priorities and expectations Identify and resolve performance problems Recognize quality performance Provide a basis for administrative decisions such as promotions,

succession and strategic planning, and pay for performance.

Performance Management Process

Performance Planning

Formal Performance review

Day to Day coaching & Feedback

Quarterly performance check -in

1. Performance Planning :
Plan for the coming year in the following areas: Clarify the expectations and standards for the job whats expected of someone in this role what standards must be maintained Set performance goals what will the employee strive to achieve in the coming year Set development goals what knowledge/skills will the employee work to develop or enhance in the coming year

2. Day to Day Coaching & Feedback:

Discuss performance on a regular basis
Share feedback about the employees successes and areas needing improvement. Seek employee input about the work process and results

3. Quarterly Performance Check-in:

Have a progress check conversation at least once per quarter. Identify successes and needed improvements in each of the following areas:
Meeting expectations and standards
Achieving performance goals Achieving development goals

4. Formal performance review:

During annual performance reviews managers and employees work together to:
Review the employees work achievements and challenges over the past year, Establish work expectations and performance goals for the coming year, and

Define the employees professional development goals and learning plan for the
coming year.

Performance Appraisal : Pillar of Performance Management

Performance Appraisal may be defined as the method by which, through observation by the appraiser, the individual workers efficiency in performing his duties and responsibilities during a given period is evaluated on the basis of pre-determined performance standards or established goals mutually set by the employee and his supervisor. Objectives of Performance Appraisal :

Promotions Confirmations Training and Development Compensation reviews Competency building Improve communication Evaluation of HR Programs Feedback & Grievances

Techniques of Performance Appraisal

Numerous methods have been devised to measure the quantity and quality of performance appraisals. They are as follows: 1. Confidential Report :

Descriptive report Prepared at the end of the year Prepared by the employees immediate supervisor Report highlights strengths and weakness of the employees Prepared in government organizations Does not offer any feedback to the employees

2. Critical Incident Method: Manager gives details of both positive and negative behavior of the employee. The discussion focuses on actual behavior rather than on traits. Manager Periodically records critical incidents of employees behavior. The critical incidents represents the outstanding or poor behavior of the employees 3. Graphic Rating Scale : A graphic scale assesses a person on the quality of his or her work Assessment could also be trait centered and cover observable traits, such as reliability, adaptability, communication skills, etc. The ratings can be number ( for example 1 to 5 ) or alphabetic (such as outstanding, good , satisfactory, fair and unsatisfactory)

4. Management by Objectives : MBO is a method of performance appraisal in which managers or employers set a list of objectives and make assessments on their performance on a regular basis, and finally make rewards based on the results achieved. This method mostly cares about the results achieved (goals) but not to the way how employees can fulfill them.

5. Weighted Checklist Method: Performance appraisal is made under a method where the jobs being evaluated based on descriptive statements about effective and ineffective behavior on jobs. HR department and Managers / Supervisors will set up checklist for each position. If the rater believes strongly that the employee possesses a particular listed trait, he checks the item; otherwise, he leaves the item blank. 6. 360 Degree Feedback: Technique which is systematic collection of performance data on an individual group, derived from a number of stakeholders like immediate supervisors, team members, customers, peers and self. 360-degree appraisals are useful to measure inter-personal skills, customer satisfaction and team building skills. Offers a more comprehensive view towards the performance of employees. Improve credibility of performance appraisal.

7. Behaviorally Anchored Rating Scales: This formatted performance appraisal is based on making rates on behaviors or sets of indicators to determine the effectiveness or ineffectiveness of working performance. It consists of sets of behavioral statements describing good or bad performance with respect to important qualities The form is a mix of the rating scale and critical incident techniques to assess performance of the staff. 8 . Paired Comparison Method : Each employees is compared with all the other employees in a group. For several traits paired comparison are made , tabulated and then rank is assigned to each employee This method is not applicable when the group is large.

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