POWERPOINT PRESENTATION

Weeks 2 - 3
Facilitate performance development
processes
About this Unit of Competency
BSBHRM521 - Facilitate performance development processes
• Describes the skills and knowledge required to develop and facilitate implementation of
performance development processes and to coordinate individual or group learning and
development to encourage effective employee performance.
• Applies to individuals who are authorised to establish effective performance
development processes for an organisation and who may have staff reporting to them.
 At the end of this presentation, you will be able to:
 Plan facilitation of performance development process
Presentation
Objectives  Coordinate performance development process
 Coordinate individual or group learning and
development
Plan Facilitation of
Performance
Development Process
Plan Facilitation of Performance Development Process
Performance Development Process (PDP) is the tool used by organisations to:
• Guide work that is done by the employees
• Gauge quality and quantity of output
• Give unbiased feedback
• Help decide on rewards and recognition.
Roadmap used by an organisation to reach objectives with the help of employees.
Needs to be compliant with legislations and regulations, and reflect the policies and best
practices of organisations.
 1.1 Identify Relevant Policies and Objectives to be Addressed
in Process
Performance Development Process needs to be:
• Aligned with the policies and objectives of the organisation
• Contextualised to the needs of the organisation
o Process should incorporate business structure, goals, and objectives right from the
design stage.
o Tools required to capture data and metrics need to be put in place.

Organisation’s people policy guidelines should be integrated into the PDP to make the process
a tool for implementing policies and make it fair and transparent.

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.1.1 Objectives for Performance Development Process
• Increasing company's profitability
• Developing employees
• Creating a leadership pipeline
• Ensuring clarity in role and reporting
• Designing an efficient Performance Management System
• Ensuring compliance to legislations, regulations and company policies
• Nurturing a fair, transparent and bias-free work environment

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.1.1 Objectives for Performance Development Process
Benefits of a well designed and implemented PDP:
• Helps employees understand:
o Their role and what is expected of them.
o How their work is aligned with the organisation’s objectives.

• Gives employees a sense of purpose by aligning them to a larger goal.

• Brings increased focus on driving business objectives.
• Improves organisation’s performance as a result of unified individual and team
performances.
• Makes measuring employee performance more efficient and transparent.

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.1.1.Objectives for Performance Development Process
Benefits of a well designed and implemented PDP:
• Helps increase job satisfaction.
• Facilitates an empowered and engaged workforce.
• Helps prepare people for their roles and gears them up for the next level.
• Makes leadership development an integral part of its design and helps prepare their
employees at all levels for supervisory and managerial roles.
• Helps identify and reward high performers.
• Helps to improve performance of low performers or terminate them if performance does
not improve.

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.1.1 Objectives for Performance Development Process
Steps in PDP:
1. Internalise goal or broad vision and overarching direction of the organisation.
2. Break down the goal into business objectives to get a clear understanding of how it will
be achieved.
3. Cascade business objectives into department objectives that define the tasks that
must be implemented to achieve the business goals.
4. Cascade department objectives to employee tasks and action points - Key Result Areas
(KRAs).
Key Performance Indicators (KPIs) are benchmarks for measuring achievement against KRAs.

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.1.2 Performance Development Process as a Tool for Meeting Business
Objectives
Business objectives classification:
• Economic
o Profit
o Growth
o Increasing customer base
o Innovation
o Resource Utilisation

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.1.2 Performance Development Process as a Tool for Meeting Business
Objectives
• Social
o Good quality products
o Good business practices
o Creating work opportunities
o Environmentally friendly practices
o Employee welfare

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.1.2 Performance Development Process as a Tool for Meeting Business
Objectives
• Human
o Safe work environment
o Transparent and fair compensation, rewards and growth structure
o Opportunities for growth and development for the employees

• Market
o Position with relation to the competitors
o Product, process, and services innovation
o Productivity and profitability

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.1.2 Performance Development Process as a Tool for Meeting Business
Objectives
• Micro
o Giving back to society through economic and non-economic initiatives
o Reducing impact on the environment
o Impacting regional economy

• National
o Contributing to the country's economic growth
o Developing products and services to support the national requirement
o Promoting export of products

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.1.2 Performance Development Process as a Tool for Meeting Business
Objectives
Business objectives of an organisation are a combination of economic, social, human, market,
micro and national factors.
Each organisation needs to decide on the factors that are critical to its growth, development,
and prosperity.
These need to be the focus of the performance development process.
All efforts, systems and tools should be geared to meet these objectives.

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.1.3 Performance Development Process as a Tool for Meeting Human Resources
Objectives
Process of hiring, training, and bringing employees up to speed is time and resource intensive.
Probation period for a new employee is usually between three and six months after which they
are expected to become fully productive and independent workers.
Learning curve differs from person to person, and often employees require additional
assistance.
Employees need to be given the right direction and targets to optimise their performance.
Tool that sets the framework for this is the Performance Development Process.

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.1.3 Performance Development Process as a Tool for Meeting Human Resources
Objectives
Human Resources department draft policies that play a critical role in employees management
which are implemented using PDP.
• Performance Management Policy
o Maps framework critical for PDP
o Ensures clarity about position, role and deliverables.

• Compensation and Promotion Policy

o Defines correlation between the set of skills and competencies, and salary and
promotion.

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.1.3 Performance Development Process as a Tool for Meeting Human Resources
Objectives
• Grievance and Dispute Resolution Process
o Defines different types of grievances and disputes as well as process to mediate
solutions.
• Gender and Diversity Policy
o Ensures PDP is fair and transparent and process is inclusive, gender sensitive and
neutral.

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.1.3 Performance Development Process as a Tool for Meeting Human Resources
Objectives
Human resources objectives
• Ensure effective utilisation and maximum development of internal employees.
• Define job roles and goals to help maximise productivity and effectiveness.
• Focus employee’s capabilities to perform the present job and develop skills for future
projects and roles.
• Create effective communication channels across levels of the organisation to set clear
objectives and expectations.
• Develop a fair and transparent process for employee development and succession
planning.

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.1.4 Benefits of the Performance Development Process
• Increases productivity
• Highlights top performers and under achievers
• Improves communication
• Sets a clear chain of command

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.1.5 Learning Culture as an Important Aspect of the Performance Development
Process
Learning Organisations make continuous learning and skill development part of process and
culture. Its benefits are:
• Higher creativity and innovation
• Better productivity and higher profits
• Increased employee satisfaction, loyalty, and commitment and lower employee attrition
• More adaptive to change
• Better at understanding and fulfilling customer expectations
• More capable of conceptualising and developing better products and services.

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.1.5 Learning Culture as an Important Aspect of the Performance Development
Process
Key characteristics of a learning culture:
• Focused on long term goals
• Seamless communication
• Collaboration across teams
• Commitment to learning and personal development
• Innovation is valued

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.1.5 Learning Culture as an Important Aspect of the Performance Development
Process
Key characteristics of a learning culture:
• Knowledge sharing
• Contributions are valued
• Invested in ideas and innovation
• Experiential learning is encouraged

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.1.5 Learning Culture as an Important Aspect of the Performance Development
Process
Types of learning initiatives:
• Online learning opportunities
• Multi-platform learning
• On-the-job training
• Cross discipline learning
• Lectures, seminars and workshops
• Professional membership

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.1.5 Learning Culture as an Important Aspect of the Performance Development
Process
Types of learning initiatives:
• Mentorship and coaching
• Educational reimbursement
• Industry publications
• Blogs
• Assessment centre
• Innovation kits to explore new ideas

1.1 Identify Relevant Policies and Objectives to be Addressed in Process

 1.2 Develop Objectives for Performance Development
Processes
Objectives for PDP must align with and reflect the organisation’s mission, vision and culture.
To enable effective development of the PDP objectives:
1. Identify areas that are of importance to the organisation.
2. Describe processes and activities that need to be in place to achieve them.
3. Breakdown focus areas into important tasks and processes that comprise Key Result
Area (KRA) and Key Performance Indicator (KPI).
Important to craft the KRAs and KPIs carefully as when individual objectives are met, the
department and organisational objectives are fulfilled.

1.2 Develop Objectives for Performance Development Processes

 1.2.1 KRAs and KPIs as Part of the Performance Development Process
KRAs set the performance guidelines and benchmarks against which performance is to be
measured.
KPIs are the measurement criteria which should be quantifiable.
Plan on how KRAs will be measured, needs to be defined to avoid ambiguity and subjectivity.
Activities that contributed to a specific goal should be grouped under one KRA to ensure
effective execution.
Action items must be under the control of the department or individual to whom they have
been assigned.

1.2 Develop Objectives for Performance Development Processes

 1.2.2 Objectives of the Performance Development Process Based on KRAs and
KPIs
Necessary to design a reliable and transparent PDP, using strong and measurable KRAs and
KPIs.
Steps to follow:
1. Consult Stakeholders
2. Provide a broad definition of job profile
3. Define KRAs to fit job position
4. Group similar activities together

1.2 Develop Objectives for Performance Development Processes

 1.2.2 Objectives of the Performance Development Process Based on KRAs and
KPIs
Steps to follow:
5. Set realistic targets and timeframe
6. Create SMART goals for the KRAs
7. Incorporate learning goals
8. Ensure that the KRAs are in writing and signed off

1.2 Develop Objectives for Performance Development Processes

 1.3 Consult with Relevant Stakeholders About the Processes
and Agree on Process Features
Performance review and development processes have been modified over the years based on
discussion with stakeholders on their effectiveness.
Numerous performance-related practices have been reviewed and either modified or replaced.
Positive changes and process improvements are possible only when the PDP is designed
according to organisation’s requirements and needs of the industry.
Discussion with stakeholders helps gauge requirements and needs.

1.3 Consult with Relevant Stakeholders About the Processes and Agree on Process Features
 1.3.1 Stakeholders to be Consulted While Designing the Performance
Development Process
External Stakeholders
• Industry Associations
• Unions
Internal Stakeholders
• Senior Management
• Supervisors
• Peers
• Employee Representatives

1.3 Consult with Relevant Stakeholders About the Processes and Agree on Process Features
 1.3.2 Consultation with Stakeholders About the PDP and Agreement on Its
Features
Steps for stakeholder consultation:
1. Identify the stakeholders who need to be consulted
2. Prepare a comprehensive and customised presentation of the PDP concept
3. Organise a meeting and make the presentation
4. Document the feedback and concerns
5. Arrive at a consensus
6. Incorporate the agreed points in the PDP design

1.3 Consult with Relevant Stakeholders About the Processes and Agree on Process Features
 1.3.2 Consultation with Stakeholders About the PDP and Agreement on Its
Features
Steps for stakeholder consultation:
7. Work to develop a collective responsibility
8. Agree upon the conflict resolution method
9. Sign off on the PDP for implementation
10. Ensure that there is a viable platform to roll out the PDP
11. Link the performance outcomes of the plan with compensation.

1.3 Consult with Relevant Stakeholders About the Processes and Agree on Process Features
 1.3.3 Components of a Performance Development Process
• Performance Management System
• Learning Management System
• Dispute Management Process
• Termination Process
• Communication Plan
• Technology Integration Platform

1.3 Consult with Relevant Stakeholders About the Processes and Agree on Process Features
 1.3.4 Methods of Designing a Performance Development Process
• Management by Objectives
o Focus is measurable targets and goals
o Soft skills are not considered

• 360-Degree Feedback
o Focus is on perception of others about the employee
o Does not work for flat organisations

• Assessment Centre Method

o Assesses current performance and predicts future performance trends
o Often used to develop people for leadership positions

1.3 Consult with Relevant Stakeholders About the Processes and Agree on Process Features
 1.3.4 Methods of Designing a Performance Development Process
• Behaviourally Anchored Rating Scale (BARS)
o Highlights qualitative and quantitative factors involved in performance
o Compares performance with specific behavioural statements linked to a rating scale

• Psychological Appraisals
o Focuses on the aptitude and behaviours of the employee
o Used to assess the hidden potential of employees and is future focused

• Human Resource (Cost) Accounting Method

o Measures performance as factor of employee’s financial contribution to company
o Can be used by start-ups that are sensitive to costs but not mature organisations

1.3 Consult with Relevant Stakeholders About the Processes and Agree on Process Features
 In this presentation, we have covered:
 Plan facilitation of performance development process
What have
we learned?  Coordinate performance development process
 Coordinate individual or group learning and
development
End of Chapter 1