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Performance Management System: Profmrin
Performance Management System: Profmrin
Performance Management System: Profmrin
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session 1-2:what is performance? definitions; performance planning & criticality of
bell-curve
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performance is what is expected to be delivered by an individual or a set of individuals
within a time frame
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o most effective way align HR to strategy is through performance management system
(PMS)
Plan
Reward Monitor
Rate Develop
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o performance planning: FAST Goals
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profmrin Source: Sull, D., & Sull, C. (2018). With goals, FAST beats SMART. MIT Sloan Management Review, 59(4), 1-11.
criticality of bell curve
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o normal distribution or the ‘bell curve’, introduced by GE
o assumes that in any work force population, performance will follow the normal
distribution (majority of the employees tending towards the average, a few above
it and a few below)
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Rayport-Jaworski Performance Dashboard and Strategy Framework
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session 3-4:Performance Assessment: Goal Setting; Linking Individual, Team,
Organization’s objectives
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o Line managers need to have the tools, skills and understanding to manage
performance effectively (Armstrong, & Baron, 2005)
o Where appropriate, aim for inclusivity - enabling staff to input ideas, and consulting
on change and development
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o Setting standards and parameters
o Be clear about expectations for standards of behaviour and the ethics that
apply to the type of work (such as standards of good research practice)
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Goal-setting Employees want to see how their work contributes to larger
corporate objectives, and setting the right targets makes this connection explicit
for them, and for you, as their manager. Goal-setting is particularly important as a
mechanism for providing ongoing and for providing feedback. By establishing and
monitoring targets, you can give your employees real-time input on their
performance while motivating them to achieve more
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Principles of goal-setting:
o Monitor progress
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the shift: from accountability to development
“Appraisals can be traced back to the U.S. military’s “merit rating” system, created
during World War I to identify poor performers for discharge or transfer. After
World War II, about 60% of U.S. companies were using them (by the 1960s, it was
closer to 90%). Though seniority rules determined pay increases and promotions
for unionized workers, strong merit scores meant good advancement prospects
for managers. At least initially, improving performance was an afterthought”
(Cappelli & Tavis, 2016)
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new trends in performance management
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1. agile methodology in performance management
o Traditional: Goals and decision rights flow downward, with the most powerful
governance bodies at the top
o Operate through linear planning and control to capture value for shareholders
o Although such a structure can be strong, it is often rigid and slow moving
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o In contrast, agile methodology is designed for both stability and dynamism
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Source: Darino, L., Sieberer, M., Vos, A., & Williams, O. (2019). Performance management in agile 20
profmrin organizations. Mckinsey. com.
session 5-6: balanced scorecard approach to performance management
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balanced scorecard (BSC) perspective
examines performance from four perspectives:
o financial: includes measures such as operating income, sales growth and return on
investment
o an in-depth exploration of what both leading and lagging indicators are and why
leading indicators are so vital for business
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lagging Indicators
to understand leading indicators, we need to first understand lagging indicators. Lagging
indicators offer the most concrete way to understand if we’ve accomplished our goals or not.
We can come up with solid lagging indicators that tell us what happened for that goal over the
last quarter or the last year by examining our outputs and outcomes. Lagging indicators aren’t
predictors of what is going to happen, but they’re great at telling you what did happen. When
we create lagging indicators, we need to consider what a good predictor for our goals might be.
What are the processes or inputs that lead to that result? These are important elements to
understand.
Here are a few examples of lagging indicators:
Profits
Revenue
Expenses
Number of Customers
Percent Renewal
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contrarily, leading indicators (or driver) forces us to ask yourself, “What process or
variables will make me achieve this goal better or faster? What do I need to do well in order
to improve my outcome measure or my goal?”
once we understand the lag indicators (which help us understand if we’ve met our goal),
we move to the predictors, which allow us to look forward: our leading indicators. Lead
indicators ask, “What are the best things we can do to help us get to our future goals
and targets?”
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