Introduction to Performance Management

PRESENTED BY:- Asheesh Singh Parmar MBA 2nd Year

Performance ManagementDEFINITION

CONCERN CONCERN with OutcomesCONCERN with PlanningCONCERN with Measurement &ReviewCONCERN for ShareholderCONCERN with continuous developmentEthical Concern

Performance ManagementScope of Performance Management

Factors affecting Performance:-

Personal factorsLeadership factorsTeam factorsSystem factorsSituational factors

Performance ManagementHistory of Performance

ManagementHow Performance Management work?PLAN-ACT-MONITOR-REVIEW-PLAN

Performance ManagementPerformance Management IssueFairnessTransparencyEquity

Performance ManagementPrinciples of Performance ManagementTranslate corporate goals into individual, team, departmental

goalsClarify corporate goals It is a continuous & evolutionary process It requires continuous feedback It should apply to all staff It measures and assesses all performance against jointly

agreed goals.

Performance ManagementBenefits of Performance Management

For the Organization

For the Managers

For the Individuals

Performance Management

Concept of learning organization Systematic problem solvingExperimentationLearning from past experienceLearning from othersTransferring knowledge quickly

Performance ManagementLink between Performance Management and pay

Paying for performanceIt motivates people to perform better or to develop their

skills and competencesIt delivers the messages that performance and

competence are importantIt is fair and equitable to reward people differentially

according to their performance or contribution.

It is also called Performance related pay(PRP)

Performance ManagementPerformance related pay

Advantage of PRP

Disadvantage of PRP

Competence related pay

Contribution related pay

Measuring Performance Appropriate performance measurement:-Ensure customer requirementsProvide standards for comparisonsProvide visibility and scorecard for people to

monitor their own performance levelHighlights quality problem and determines

areas for improvementJustify the use of resourcesProvide proper feedback

Performance ManagementDifferent approaches to measuring organizational performance

A balanced scorecardThe European foundation for quality

management (EFQM) modelEconomic value addedOther traditional financial measures

Performance ManagementBalanced scorecard

Customer perspectiveInternal perspectiveInnovation and learning perspectiveFinancial perspective

Performance ManagementThe European foundation for quality

management (EFQM) modelWhat is EFQM?

The (Excellence) Model is based on the principle that the fundamentals of running a successful organisation in the public, private or voluntary sector are the same - no matter what type, or size, of organization they are applied to. The Model distils these principles into a framework of assessment and analytical criteria which can be applied to a whole organization, a department, division, or operational unit.

Joe Goasdoue, Chief Executive of the British Quality Foundation

Nine criteria of the ModelEach of the nine criteria featured in the 'Model' are

described by the British Quality Foundation as follows.

The European Foundation For Quality Management (EFQM) Excellence model

The European Foundation For Quality Management (EFQM) Excellence model

Figure 23.7

© 1999 EFQM. The Model is a registered trademark of the EFQM.

Nine criteria of the Model1 Leadership. How leaders develop and facilitate the achievement of the

mission and vision, develop values for long-term Success and implement these via appropriate actions and behaviors, and are personally involved in ensuring that the organization's management system is developed and implemented.

2 People. How the organization manages, develops and releases the knowledge and full potential of its people at an individual, team-based and organization-wide level, and plans these activities in order to support its policy and strategy and the effective operation of its processes.

3 Policy and strategy. How the organization implements its mission and vision via a clear stakeholder-focused strategy, supported by relevant policies, plans, objectives, targets and processes.

4 Partnerships and resources. How the organization plans and manages its external partnerships and internal resources in order to support its policy and strategy and the effective operation of its processes.

5 Processes. How the organization designs, manages and improves its processes in order to support its policy and strategy and fully satisfy, and generate increasing value for, its customers and other stakeholders.

6 People results. What the organization is achieving in relation to its people.

7 Customer results. What the organization is achieving in relation to its external customers.

8 Society results. What the organization is achieving in relation to local, national and international society as appropriate.

9 Key performance results. What the organization is achieving in relation to its planned performance.

Performance Management360-Degree feedback

Performance and development review5 key elements of performance review meetings-Measurement FeedbackPositive reinforcementExchange of viewAgreement

Performance ManagementEvaluating Performance Management

Questionnaires following review meetings

Attitude survey

Focus group

Performance ManagementConclusion

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