Performance

Management

- Vijun Karthick
 What is Performance

Behaviors
Input/ action
An action or process performed
of doing a specified
task or function i.e.
a behavior which
leads to the result Result
Output/ end goal
 Performance Management

Armstrong and Baron:

A strategic and integrated approach to deliver sustained success to
organization by improving the performance of the people who work on
them and by developing the capabilities of teams and individual
contributors

Walters:
A process of directing and supporting employees to work as effectively
and efficiently as possible in line with needs of the organization
 Performance Management Goal

Goal Aligning with

Establishment
People focus Development: the strategic
of higher Alignment of
to direct them plans by
management individual Developing
on doing empowering,
culture through objective to people
right things motivating
communication organizational capacity to
through and
between goal through meet and
feedback on rewarding
employee and documentation exceed
performance employees to
Supervisor expectations do their best
Who’s Involved? What are their Needs?

Organization Supervisor Employee

Information Documentation Feedback and

Appreciation

Documentation Motivation Support for

Career Growth

Increased
Compensation
Performance Management Skills
Communication

Coaching

Feedback System

Empathy

Teamwork
 Performance Management
Approach
• Goal • Objective Performance and
• Reality • Understand Quality Improvement:
• Option • Take Stock
• Way Forward • Clarify • Participation of Key
• Option Generation Stakeholders from
• all levels of service
Motivation to
delivery system and
Action

OUTCOMES
the community to
• Enthusiasm and define and achieve
GROW

Encouragement quality in service

PQI
• Support and behaviors
 Grow Approach
• Objective or the Target for the team which are mutually discussed and agreed upon
Goal
• The Goal can go beyond the target plan based on employee performance

• Alignment with employees on the goal identified

• Communicate to avoid goal misconception or to identify the success
Reality • Your contribution as coach towards employee for his improvement

• Identify the gap between the current and the target

• Filling the gap through training, more coaching, mentoring, personal reading or
Option research or increasing responsibility

• Together bring up the action plan to implement the chosen options

Way
Forward
 Outcome

Objective: Understand: Take Stock: Clarify: Option Motivation Enthusiasm Support:

• Understand • The reason • Alignment The gap Generation: and Action: and • Manager
what team behind the with between • Generating • Check up on Encourageme must
member is want to employees current and feasible the nt: support the
trying to achieve on the goal target to option to employees • Manager team
achieve identified identified achieve their move motivation must show member on
through objective • Analyzing goal forward to achieve enthusiasm the task
coaching • Clarity on the present An agreement • Discuss pros the goal towards the agreed
session employee situation to for the and cons • In case of objective upon and
• Bring up a “over form a changes, and allow demotivatio and check for
mutually stretch” or baseline progress or employee to n, the encourage any support
agreed goal “under development generate manager the team required
stretch” to reach the option has to tackle members
goal
 STEPS IN PQI MODEL
Business Analysis Performance
• Mission Analysis:
• Goal Desired
Performance
• Strategies
Client and Community
Perspective Cause Analysis:
Finding the root cause for
the performance gap
Gap

Actual Intervention Selection:

Performance What can be done to
close the gap

Monitor and
Intervention
Evaluate
Implementation
Performance
 WHAT IS APPRAISAL?

Definition:

• A process for evaluating and documenting the performance of an associate. It is

based on the employee progress against goals set for the year
• A systematic, periodic and so far as humanly possible, an impartial rating of an
employee’s excellence in matter pertaining to his present job and to his
potentialities for a better job
PERFORMANCE MANAGEMENT VS APPRAISAL
• Focuses on productivity and development
of an employee
• Key focus is on the employee performance
at present and future, therefore it is future
oriented and finds ways to improve
performance in future
• Proactively manages the associate
performance thereby helping him/ her to
reach the goals, mission, vision and values
of the organization
• It uses a holistic approach where the
relationship between organization and
employee is validated and examines better
means for employee engagement
• Management is a strategic approach which
measure the performance and help
formulating new means to improve the
employee productivity
• Evaluates only the actual performance of
an employee
• Key focus is on the employee past
performance therefore it is retrospective
and past oriented which looks in to the
performance over a period of time
• Manages the past year performance of the
associates and provide them with the
feedback for improvement
• It uses an individualistic approach where
the data pertains the past performance of
every single employee
• Appraisal is an operational approach which
focuses on the result based on KRA’s and
KPI
PERFORMANCE MANAGEMENT VS APPRAISAL
• Performance management is dynamic as it
involves a lot of communication and room
for discussion for the continuous
improvement
• It is a constant process and employs a
continuous feedback mechanism for
improvisation using real time reviews and
PMS software
• It has both qualitative and quantitative
approach as the system has continuous
feedback loop
• Since PMS is flexible as it helps on
organization growth through continuous
development plans
• The execution can be strategic
• It results in improved communication and
collaboration
• The rules/ goals are predefined during the
discussion for goals and objectives
• Performance appraisal is linear as the
communication involved has top-down
approach and the discussion takes place
post appraisal process
• Appraisal system facilitates performance
appraisals only once or twice but the
feedback may not focus on development
• It has only quantitative approach as it
simply measures the work done and use
the rating scales for evaluation
• The appraisal system is rigid as it does not
focus on development but confined to past
employee performance
• Difficult process for employed and HR
• It cannot address perception gaps as intent
of HR and employee varies often
• Objectives of organization is not clearly
communicated and it lacks transparency
 PERFORMANCE MANAGEMENT CYCLE

Plan Plan

Reward Monitor
Reward Review

Develop Rating Develop

Syllabus Actual
 PERFORMANCE MANAGEMENT CYCLE
Plan Monitor Develop Rating Reward

Goals setting and Monitor the goals Key Player in Employee On continuous
individual success set in planning performance contribution or sub-par
metrics are defined phase Management value addition performance the
on performance towards the goal associate is not
expectation with Continuous Areas of on right function
employee monitoring on improvement can Associate and parties
performance and be identified for recognition on his should say adieu
Plans should be providing feedback underperformance value added
flexible for the on progress toward correction or result on goal and On superior
change in the goal reached exemplary appraised on performance, the
objective performance annual associate is
• Avoid Micro improvisation performance recognized
• Specific Managing appraisal
• Measurable • Good Practices • Training • A raise
• Achievable • Challenging • Time-off
• Realistic • assignments • Promotion
• Timely • Goodies
 PRINCIPLES OF PERFORMANCE
MANAGEMENT
• Be Honest and Open
• Keep it simple
• Keep in touch
• Make goals interesting, challenging and engaging
• Pull together
• Build on strength more than correcting weakness
• Get the mix right
• People like to perform
• Give Praise
• Let people know how they are performing
• Get right tool for the job
• They perform you perform
• Be an example
• Motivate, motivate, motivate
• Use PERFORM to outperform
 SIGNIFICANCE OF PERFORMANCE CULTURE
What is performance culture?
• A high performance culture is an organization built on a set of universally accepted behaviors and
norms that are encouraged by leader and facilitated by optimal tools and processes

Why performance culture?

• The performance culture drives high-achievement and positive results
• A high performance culture or growth mindset promotes an environment where employees are
focused on incremental improvement

Performance culture in organization

• A high-performance organization maintains good and long-term relationship with stakeholders
• It creates mutual and beneficial opportunity and win-win relationships
• Promotes productivity, employee engagement and improved employee experience thereby promotes
positive workplace relationship
• Promotes business goals and improves business performance
 TRAITS & INFLUENCING FACTORS
Traits of high-performance culture
• Aligned/ unified goals/ purpose
• Empowerment
• Growth mindset
• Open and effective communication
• Agility and Security
• Effective performance reviews
• Collect Feedback

Factors influencing high-performance culture

• Formality
• Analytics
• Transparency
• Team or individual
• Performance Tracking
• Innovation
• Frugality
• Conformity
 CASE STUDY AND REPORTING

1. Brief study on continuous performance management by ADOBE in place of

performance appraisals:

• Ajay Kumar
• Felcy
• Kiyasil
• Mounika
• Mounish
• Rohit
• Sneha
 CASE STUDY AND REPORTING

2. Brief study on Saving Working Hours per year by Deloitte with Weekly Employee
Check-Ins

• Kavin Kumar
• Paribalan
• Sambatha
• Santhosh
• Selva Lakshmi
• Shyam
• Vidhya
 CASE STUDY AND REPORTING

3. Brief study on abolishing Force Ranking Performance Management by General

Electric
 CASE STUDY AND REPORTING

4. Brief study on Accenture dropping Performance Ratings for Performance

Development
 CASE STUDY AND REPORTING

5. Brief study on introduction of Coaching Conversation by Cargill in place of

Annual Appraisals
 CASE STUDY AND REPORTING

6. Brief study on the Evolution of the Fossil Groups’ Performance Management

Process

• Atich Kishore
• Kanimozhi
• Mohamed Sameer
• Ramya
• Sangeetha
• Shibani
• Uthra
 END OF CHAPTER 1

6.