3-1 Performance Management vs.

Performance Appraisal
• Performance management is continuous and proactive, while performance
appraisal is periodic and reactive.
• Performance management focuses on the future and the development of
the employee, while performance appraisal focuses on the past and the
evaluation of the employee.
• Performance management is collaborative and dialogue-based, while
performance appraisal is unilateral and report-based.
• Performance management is comprehensive and holistic, while
performance appraisal is specific and narrow.
• Performance management is strategic and integrated, while performance
appraisal is tactical and isolated.
 3-2 Purposes And Benefits Of Performance Management
Performance Management
Purposes
1. Create a Healthy Work
Environment
2. Develop Performance Plans
3. Selection of Appropriate People
4. Decision Regarding Performance
Standard
5. Plans for the Development of
Employees
6. Measurement of Performance
7. Conducts Performance Feedback
8. Design Compensation,
Recognition and Reward System
9. Contributes in developing
goodwill
Organization’s Benefits
1. Improved organizational
performance
2. Employee retention and
loyalty
3. Improved productivity
4. Overcoming the barriers to
communication
5. Clear accountabilities
6. Cost advantages
Manager’s Benefits
1. Saves time and reduces
conflicts
2. Ensures efficiency and
consistency in performance.
3. Clarifies performance and
behavioral expectations.
4. Develop a framework for
reviewing performance
5. Provides the basis for helping
and making decisions for
underperformance.
6. Provides the basis for
providing non-financial rewards,
e.g. recognition, opportunity for
growth and development.
Employee’s Benefits
1. Clarifies expectations of the
employees.
2. Self-assessment opportunities
clarify the job accountabilities
and contribute to improved
performance.
3. Clearly defines career paths
and promotes job satisfaction.
4. Provision of guidance and help
in developing abilities and
performance.
5. Opportunities to contribute to
the formulation of objectives and
plans
6. An objective and fair basis for
assessing performance.
3-3 Performance Management Process
1- Goals’ Setting Phase
• Alignment between individual employee goals and the organization’s goals
• Re-accessing and setting competency requirements that will be required for optimum performance of the job
• SMART Goal  (Specific – Measurable – Achievable – Relevant – Timely)
• Monitored and progress acknowledged
2- Performance Review Phase Key Steps for Effective Implementation
1. Clarity and Fairness 5. Develop Clear and Measurable Standards
2. Consistency and Alignment 6. Integrate Standards into Performance Reviews
3. Focused Feedback 7. Provide Meaningful Feedback and Development
4. Measuring Progress 8. Review and Update Standards Regularly
3- Performance Improvement Plans Phase (PIP) Based on the evaluation, three possible outcomes
1- Initiating the PIP occur
Identifying Performance Deficiencies - Meeting with
1-Improvement achieved
the Employee - Developing the PIP Document
2- Implementing the PIP 2-Partial improvement
Regular Check-ins - Documentation and Adjustments -
Positive Reinforcement 3-No improvement
3- Evaluating the PIP
3-4 Goals’ Setting Phase
• The goals' setting phase sets the foundation for a successful
performance management cycle. It drives clarity, motivation,
performance measurement, development, and accountability,
ultimately leading to improved individual and organizational results.
Here's why it holds such immense importance:
1. Clarity and Direction
2. Motivation and Engagement
3. Performance Measurement and Improvement
4. Development and Growth
5. Accountability and Ownership
3-5 Performance Review Phase

• key considerations in the performance review phase are:

• The frequency and timing of the performance review

• The method and format of the performance review

• The preparation and participation of both parties

• The follow-up and action plan. After the performance review

3-6 Evaluate and Develop IDPs
The process of evaluating and developing
Individual Development Plans (IDPs)
1. Self-Assessment
2. Manager Discussion
3. Goal Refinement and
Prioritization
4. Development Strategies
5. Ongoing Monitoring and
Progress Tracking
Here are some additional tips for effective
IDP evaluation and development
• Focus on growth and
development
• Encourage employee ownership
• Maintain flexibility
• Celebrate successes
3-7 Effective Performance Appraisal
Standards
Elements of Appraisal Effectiveness by Piggot-
Irvine
1- Clear guidelines,
2- Based on objective and informative data
3- Well-resourced with training and Time,
4- Mutual respect
5- Beyond the superficial, on-going and in-depth
6- Integrated development and accountability
7- Trust
8- An educative process,
9- Independent from disciplinary aspects
10- Transparent and confidential
Rankin &Kleiner (1988,P.14)
Effective Performance Appraisals Six Key Factors
1- Performance goals must be specific and defined.
2- Attention must be paid to identifying
3- Performance appraisal programs should tie personal
rewards to organizational performance.
4- The supervisor and employee should jointly identify
ways to improve the employee's performance and
establish a development plan
5- The appraiser should be given feedback regarding
his/her effectiveness in the performance appraisal
process.
6- The performance appraisal system, regardless of the
methodology employed, must comply with legal
requirements (notably, Equal Employment
Opportunities guidelines)
3-8 Problems to Avoid in Appraising
Performance
1. Halo Error 5. Strictness Error
2. Leniency Of Error 6. Similarity Error
3. Central Tendency 7. Recent Behavior Error
4. First Impression 8. Status Effect