PERFORMANCE PLANNING

 DEFN-

 “systematic outlining of the activities the mgr is expected to

undertake during a specific period so that he is able to make

his best contributions to the developmental and organization
outcomes”
 Steps in Performance planning:

1. Setting objectives
2. Discussion regarding implementation
3. Designing developmental activities
4. Coaching and counselling
OBJECTIVES
 At organizational level- ( to employees)

 To communicate basic responsibilities

 To provide apt resources, support , training

 Provide timely feedback

 Align job description with organizational objectives & strategy

 Boost motivation
 At manager level-

 update knowledge & skills of employees through training

 standardize performance criteria to achieve goal

 provide regular & timely feedback

 identify & focus on employee’s competencies to make them productive

 motivate the employees by creating adequate career development plan

 At employee level-

 be motivated by being aware of own career & growth plan

 view mgrs as counsellors/ mentors , take guidance & advice .

 accept feedback positively & make improvements

 plan your goals & targets with mgrs.

STEPS FOR SETTING PERFORMANCE CRITERIA
 job task & objectives of employee aligned with goals & objectives of orgn

 job responsibilities will be modified to reflect changes in work context

 supervisor & employee will agree to-

 major job tasks & objectives

 measurement of success

 Most or least imp assignments

 Level of authority with each job responsibility

 supervisor & employee will identify in what way mgr can help in potential
hindrances & overcoming it
 type of training reqd & time taken to undergo training & complete it to achieve
certain objectives
 formal document (performance plan) summarizing discussions & agreements will
be signed by supervisor & employee.
PERFORMANCE BENCHMARKING
 Definition:-

 is a continuous , systematic process of evaluating and comparing the

capability of one organization with industry leaders for insights and
optimizing the organizations processes.

 determines whether processes & activities represent best practices

 identify strong & weak points

 focusses on three main areas-

i. operational efficiency

ii. Quality of service

iii. Business benefits

 Objectives-

 what , where improvements have to be done

 analyse the high performance of other organizations & use this info to
improve their performance.
METHODS OF SETTING BENCHMARKS
Three methods of setting performance benchmarks:
1. Metric benchmarking :
 identify most desirable performance level

 benchmark an activity, an event, equipment

 collect a large amount of data through survey

 most imp is identifying right set of criteria, reliable data

2. Diagnostic benchmarking:
 measuring and comparing various units to identify gaps and reasons behind it

 an analyst collects relevant data about performance results, work practices,

processes, outside & conditions within

 main purpose is to perform SWOT analysis

 performance  results

 processes are aggregated with suitable weightages for composite ratings

3. Process benchmarking-
 process of identifying, learning, adopting outstanding practices from others

 orgn should have suitable learning climate

 ex. Modi xerox, Tata steel

BENEFITS OF BENCHMARKING
1. Sharing key performance indicators

2. Goal setting

3. Networking

4. Establishes continuous improvement culture

5. Gives direction for improvement

PERFORMANCE MANAGING
Following aspects of performance mgt needs to be managed-

1. Communicating the aims (work & responsibilities)

2. guidance on the use of role profiles, goal setting

3. reviews must be proper & documented (computerized)

4. provide guidance & support in preparation &

implementation of development plans

5. providing coaching, mentoring, training for skill

development related to perf mgt

6. monitoring perf mgt , evaluating its effectiveness & taking

actions for improvement
Performance management
 performance mgt can be classified as-
 Managing team performance-
 Mgt needs to monitor & measure team performance goals & objectives
performed by the employee within timeframe given to him.
 Clocks, cash registers, mechanical counters, weighing scales, audiograms, stop
watches are the tools
 it has to be within the purview of job description held by individual & in total
compliance with prescribed stds, legislations & policies
 Identify & analyse the reasons for performance shortfalls

 Action plans for addressing performance gaps

 contributions made by individual to the team should be determined &

recognised
 emphasis on results to improve performance & excel in future
PERFORMANCE MGT
 Managing performance depends on-
 culture, mgt style, approach, orgn structure

 main activities are-

 providing feedback, updating objectives continuous learning on the job

 continuous monitoring of outcomes with plans & take corrective actions

where necessary
 involves individuals monitoring & managing their own perf, managers
providing support , feedback and guidance.
 Based on philosophy-
 sustained improvements, continuous devlpt of skills and capabilities,
applying the experience gained from learning

 should be willing to work together, define & discuss, learn from

successes, challenges, and problems.
 Managing individual performance :
 risk mgt component to counter are-
 unforeseen calamities & risks
 errors & mistakes
 material losses & wastage
 downtime & lost time below-par & non-compliant
behaviour & performance
 3 documents must be used to monitor, measure & review
individual performance-
 job description based on job analysis
 Individually written performance goals & objectives
 individually determined action plans
 relevant stds & legislations must be taken into account.
 Perf expectations must reflect know-how, competencies,
role relationships of job description of the person.
Objectives of Performance Mgt system
 To plan human resource effectively

 To have scientific recruitment and selection

 To make Personnel decisions

 To carry out effective training & development

 to collect feedback , motivate & personal development of employees

 To undertake career planning & development

 To compensate & reward employees

 To improve internal employee relations

 define mutual expectations of managers & employees

 Actualizing performance plans by improving performance of employees on a continuous

basis
 analysing ongoing efforts to remove performance deficiencies

 keep employees focussed on performance objectives & stds

 creating challenging and satisfying developmental plans

Performance Management process
1. Performance planning-
a. Conducting job analysis
b. Developing job description and specification
2. Developing Performance Standards for each Performance
dimension-
a. Checking ind/grp perf stds against dept & organizational goals
b. Specify measures for appraising
c. Plan to monitor employee & take corrective action at right time
3. Performance review-
a. after performance, appraisal, review is done to document expected results
& evaluation of employees performance
b. provide suggestions on work conduct, KPI, work plans, roles &
responsibilities
4. Develop action plans-
a. develop action plan for next period on the basis of what has been achieved
 Perf mgt info is used to make admn decisions, identify , solve
problems,
PERFORMANCE APPRAISAL
 DEFN :-
Performance appraisal is the systematic , periodic, and an
impartial rating of an employee’s excellence in matters pertaining
to his present job and his potential for a better job.
NEED :
 Set goals

 Recognize performance

 Guide progress

 Identify problems

 Improve performance

 Discuss career advancement

LEADS TO COMPETITIVE ADVANTAGE
 Trait Approach:
 emphasizes the individual performer and ignores the specific
situation, behaviors, and results.

 Raters evaluate relatively stable traits. This approach is

justified based on the positive relationship found between
abilities and personality traits and desirable work-related
behaviors.

 The trait-oriented approach can be most useful as:

 part of a business strategy to anticipate drastic structural

changes for reorganization of most functions and the
resulting reallocation of employees
APPROACHES TO MEASURING PERFORMANCE
 Behavior Approach: emphasizes what employees do on the job and

does not consider employees’ traits or the outcomes resulting from their
behaviors.

 Process-oriented approach that emphasizes how an employee does the

job.

 The behavior approach is most appropriate under the following

circumstances:

 The link between behaviors and results is not obvious

 Outcomes occur in the distant future

 Poor results are due to causes beyond the performer’s control

 Results Approach:
 emphasizes the outcomes and results produced by the employees.
 It does not consider the traits that employees may possess or how
employees do the job.
 This is a bottom-line approach - not concerned about employee
behaviors and processes but, instead focuses on what is produced.
 It is also cost effective data resulting from a results approach are
objective and intuitively appealing.
 The results approach is most appropriate under the following
circumstances:
 Workers are skilled in the needed behaviors
 Behaviors and results are obviously related
 Results show consistent improvement over time
 There are many to do the job right
 CHALLENGES/DISADVANTAGE:
 traits are not under the control of individuals and in most
cases they are fairly stable over one’s life span.
 They are not likely to change even if an individual is willing
to exert substantial effort to do so (development of these
traits are beyond their control).
 The fact that an individual possesses a certain trait does not
mean that this trait will necessarily lead to desired results
and behaviors.
 *The relative emphasis given to each of these approaches to
measuring performance should be influenced by the
organization’s business strategy
PERFORMANCE MANAGEMENT IMPLEMENTATION
 Emphasis on right areas

 designing of the system

 multiple choice questions

 multiple components

 over criticism & over projection

 inadequate effort to implement

 organizational support

 competent HR dept

 Follow up of the system

STRATEGIES FOR EFFECTIVE IMPLEMENTATION OF
PERFORMANCE MANAGEMENT
1. Clarify values and objectives
2. Define organizational objectives
3. Update job descriptions
4. Ensure everyone has a current job description
5. Proper performance planning
6. Proper planning for feedback
7. Have a clear strategy to deal with underperformance
8. Plan to align consequences with performance
9. Evaluation of performance in an accurate and unbiased
way
10. A transparent performance evaluation process
11. Guidance & training for proper implementation
12. Ensuring the integrity of the performance management
process
LINKING PERFORMANCE MANAGEMENT TO COMPENSATION
BENEFITS OF LINKING PERFORMANCE TO COMPENSATION:
 Objective method

 rewards related to performance

 employee motivation

 goal achievement

 retention

 Attracts talent

 optimizes the cost of compensation

 ‘Two different ways of linking performance with
compensation are:-

 Individual performance related pay schemes

 group performance related pay schemes

HIGH PERFORMANCE TEAMS
Characteristics :-
 Perspective leadership

 aligned on purpose

 responsive

 task focussed

 communicative

 shared responsibility

 problem solving

 Innovative

 create an open & inclusive team culture

 empower

 develop & coach

 Assume that you are an employee of RBC Company. You
have been called in for a performance planning meeting ,
with the manager. What are the various preparations, you
will have to make before you attend the meeting.