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Performance Management: Yesterday-Today-Tomorrow by Effendi Ibnoe
Performance Management: Yesterday-Today-Tomorrow by Effendi Ibnoe
Performance Management: Yesterday-Today-Tomorrow by Effendi Ibnoe
Tomorrow
By Effendi Ibnoe
•“ Since my last report, this employee has reached rock bottom .....”
•“ He sets low personal standards and then consistently fails to achieve them.”
•Only 51% believe employees and managers are adequately educated and trained in
PMS
•86% allows employees to jointly set targets and objectives with the manager
Group Discussion:
PERFORMANCE MANAGEMENT
A Definition:
Thus:
•Planning is crucial
•Stakeholder expectations are key drivers
•Management and employee buy-in and involvement are paramount
•Link to and alignment with strategy
PERFORMANCE MANAGEMENT
Planning Performance:
-Setting objectives
-Outlining development plans
-Getting commitment
Reward Performance:
-Link to pay
-Results = performance
PERFORMANCE
MANAGEMENT
PROCESS
Maintaining Performance:
Reviewing Performance:
-Monitoring performance
-Formal reviews
-Coaching
-Assess against objectives
-Feedback
Planning includes:
Execution
Review
PERFORMANCE MANAGEMENT
Benefits:
Open Communication
Improved Performance
Training and Development
Clarity of Standards/Requirements
Placement of Individuals
Increased Objectivity
Remuneration
Promotability
Career planning
PERFORMANCE MANAGEMENT
“If you are not managing performance, what are you managing?”
Feedback Training
Reward &
Review Process Process Design
Compensation
Maintaining Performance:
Reviewing Performance:
-Monitoring performance
-Formal reviews
-Coaching
-Assess against objectives
-Feedback
Coaching = Give a man a fish a day, and you fed him for a day;
teach him to fish, and you fed him for life.
Confucius
PERFORMANCE MANAGEMENT
COACHING:
•Give Feedback (EEC Model = Example-Effect-Change)
•Ask for ideas and suggestions
•Discuss
•Use the following questions:
•What is happening now?
•What are u going to do next?
•Coaching provides immediate feedback on performance
PERFORMANCE AUDITS
Key topics:
•What do you audit
•How do you audit Performance Management?
•What can you expect?
PERFORMANCE MANAGEMENT
– Retention Value
PERFORMANCE MANAGEMENT
A Reward Matrix:
LINK TO PAY:
Why does it often fail?
•Lack of objective and quantitative measures
•Poor link between pay and performance (no immediate
reinforcement)
•The aspects that get rewarded are not linked to strategy – the
“wrong” behaviours and achievements are sustained
•Poor communication re objectives, benefits and procedures (the
“rules of the game”)
•Level of performance-based-pay not proportionate to effort
•Resistance to change
•Union perceptions and involvement
PERFORMANCE MANAGEMENT
• Internal Equity
Hygiene Competitive
Fixed Factors in Market
• Cost Management
• Flexibility
Package
• Return on Bottom
Variable Motivational
Drive Line
Behaviour • Reward specific
Package behaviour/results
PERFORMANCE MANAGEMENT
Performance
REMUNERATION
Attract
Retain
Skills
COMPONENT:
Guaranteed Package X X X
Short-Term Incentives X X X
X X
Long-Term Incentives
PERFORMANCE MANAGEMENT
The “Link”:
Desired performance
Measurement
Vision
Mission
Actual performance Development Strategy
Value Drivers
PERFORMANCE MANAGEMENT
Q & A