PERFORMANCE

MANAGEENT
SYSTEM
SONI AGRAWAL

Performance

Management is both a strategic and

an integrated approach to delivering successful
results in organizations by improving the
performance and developing the capabilities of
teams and individuals

By Armstrong and Baron (1998)

... creating a shared vision of the purpose and

aims of the organization, helping each employee
understand and recognize their part in
contributing to them, and in so doing, manage
and enhance the performance of both individuals
and the organization.
By Fletcher (1993)

PM emphasizes the supervisors essential role to

help and support her supervisees in putting in
extraordinary performances to achieve their goals

Joint responsibility of the supervisor and supervisee

Purpose of Performance Management

Profitability
Improving performance
Career development
Promotion
Retention
Dismissal

Some questions?

How does performance management fit into our strategy?

Whats in it for metangible benefits for all parties?
How does it workvarious steps in the process?
What are our roles and responsibilities?
How is performance management related to other initiatives?

Prerequisites

Performance
Planning

Performance Management Process

Performance
Renewal and
Re-contracting

Performance
Review

Performance
Execution

Performance
Assessment

Performance Planning
Goals: SMART
MBO
Results: Accountabilities, specific objectives, performance standards
Behaviors
Developmental plans

Performance Execution
Employees
Commitment to goal achievement
Ongoing performance feedback & coaching
Communication with supervisor
Collecting & sharing performance data
Preparing performance review
Managers
Observation & documentation
Updates
Feedback
Resources
Reinforcement

Formal Meetings (can be combined)

Objective setting
Performance review
Merit/salary review
Development plan

Determinants of Performance

Performance = Declarative knowledge

procedural knowledge + Motivation

Motivation
Motivation is the willingness to exert high levels of
effort toward organizational goals, conditioned by the
efforts ability to satisfy some individuals.
Motivation is caused due to fulfillment of needs, drives
and goals.
By Luthans

The Porter-Lawler model, developed by Lyman W. Porter and Edward E. Lawler III, is
an extension of the expectancy theory model . This model starts with the premise that
motivation does not equal satisfaction or performance.

Approaches of measuring performance

Job focused
Person focused
Hybrid

 of measuring performance
Trait Approach

Behavior Approach

Results Approach

Types of competencies
Differentiating
Threshold

WORK PLACE CHALLENGES

THAT WILL AFFECT HR
https://www.youtube.com/watch?v=bdXffr0UY
G4
Best Practices
https://www.youtube.com/watch?
v=FRsJbpppvEU

Types/methods of Performance appraisals

Graphic Rating Scale
Paired Comparison/relative judgment
Forced Distribution method
Critical Incident Method
Assessment Centers
Computerized and Web-Based performance Appraisal
BARS: Behavioral Anchored Rating Scales
Multi level/ multi rater feedback

Determining Overall Rating

Judgmental strategy
Mechanical strategy

Rather Errors
Varying Standards
Recency Effect
Primacy Effect
Central Tendency Error
Leniency Effect
Strictness Effect
Personal Bias Error
Halo Effect
Sampling Error

To minimize effects of cognitive biases:

Consider employees
Involve employees in system design
Show how employee needs are met
B. Emphasize the positive
Use credible communicators
Provide facts and consequences
Repeat, document, and be consistent
Put it in writing
Use multiple channels of communication
Say it, and then say it again

Bell curve vs. Power law

Reward behavior

Firsthand knowledge of employee performance

Supervisors
Peers
Subordinates
Self
Customers

Appeals Process

Promotes employee buy-in to the PM system

Amicable/non-retaliatory
Resolution of disagreements
Increases perception of systems fairness
Employees can question two types of issues:
Judgmental

Validity of evaluation
Administrative

Whether policies and procedures were followed

Recommended Appeals Process

Level 1
HR

reviews facts, policies, and procedures

HR reports to supervisor/employee
HR attempts to negotiate a settlement

Level 2
Arbitrator

(panel of peers and managers)

High-level managerfinal decision

Rater Training Programs

Overview
Content areas to include
Information
Identifying,

observing, recording, and evaluating

How to interact with employees

Choices of training programs to implement

RET

(Rater Error Training)

FOR (Frame of Reference)
BO (Behavioral Observation)
SL (Self-Leadership)