PERFOMANCE MANAGEMENT AND DEVELOPMENT SYSTEM

ADNAN MURTAZA

“WHY PERFORMANCE MANAGEMENT AND DEVELOPMENT SYSTEM ARE IMPORTANT IN AN ORGANISATION IN REFERENCE TO” SHRM”.

CONTENTS Introduction of Performance Management.Objective of performance management system.Development of PMS.Problems while dealing with performance management.Effective performance management system.Development in performance management.Technology and its impact on performance management.Strategic linkage of performance management.

Introduction

To survive it is very important to be successful and to be successful is very important to have competitive advantages with the most effective and efficient utilization of resources .Since human resources are the most valuable and unique , the only way to measure it is through their performance.As performance refers to what a person does or does not do on the job or task while accomplishing the target.Several terms are used as performance assessment, performance appraisal, performance evolution and performance management.

Comparison Of Performance Management & Performance Appraisal

Characteristics Performance Mgt.

Performance Appraisal

Types of objectives. Emphasis on integrating organizational , team , & individual objectives.

Individual Objectives.

Types of performance measures.

Competency requirements as well as quantified measures.

Qualitative & Quantitative.

Frequency. Continuous review with one or more formal reviews in a year.

Annual appraisal.

Rating system. Joint or participative process , ratings less common.

Top-down system.

Comparison Of Performance Mgt. & Performance Appraisal

Characteristics Performance Mgt. Performance App.

Reward linkage. Does not have direct link to reward.

Often linked to pay.

Ownership. Owned by line management. Owned by human resource department.

Corporate alignment. Integrated business-driven system aimed at organizational & people development.

Isolated system not linked to organizational goals.

Focus of performance reviews.

Future focused. Focus on past performance.

Questions asked. What can be done to help employees perform as effectively as possible?

How well was the work done?

Uses & Objectives Of Performance Management System

Objectives of

perform. Mgt. sys.

Human ResourcePlanning

Recruit.&

selection

Personn-el

Decisions

Career planning & dev.

Feedback , motivation

& developme

nt.

Training & dev.

Compensation & reward.

Internal employee relation

Classification Of Performance Management Objectives

Evaluative Objectives

•Validating selections.•Bonuses & incentives.•Promotions.•Salary increases.

Manager is a judge & makes reward decisions.

Classification Of Performance

Management Objectives

Development Objectives

•Feedback.•Motivation.•Training & development.•Career planning.•Human resource Planning.

Manager is a coach who helps in performance improvement.

Process Of Performance Management SystemSpecify organizational objectives.

Identify dimensions of job performance.

Define & communicate performance standards.

Determine who will conduct appraisal.

(sources)

Choose appropriate methods of performance

appraisal.

Conduct appraisal.

Communicate appraisals to employees(feedback).

Action Plans•Salary increases.•Promotions.•Training.•Career plans.

Types Of Performance Evaluation Criteria

Types of evaluation criteria.

Trait –based Behavior –based Result –based

Sources Of Appraisal Information

Sources of appraisal

information

Customer appraisal

App. By manager

or supervisor

Self-appraisal

Team appraisal

Peer appraisal

Subordinate

appraisal

Methods Of Performance Appraisal

Performance appraisal methods

Trait-based methods

•Graphic rating scales.•Forced-choice method.•Essay method.•Ranking method.•Forced-distribution method.

Behavior-based methods

•Critical-incident method.•Checklists.•Behaviorally anchored rating scales.

Results-based methods

•Productivity methods.•Management by objectives.

Communication Of Appraisal• A good performance management system is one

that allows the employee (appraise or rate) to participate & contribute in his/her own performance evaluation , in partnership with the manager (appraiser or rater).

Types Of Communication Of Appraisals:• One-way communication(tell & sell approach).• Two-way communication(tell & listen approach).• Mutual problem-solving.

Factors Leading To Problems In Performance Management System

due to

Problems in performance management

system.

Ambivalence towards performance evaluation on the part of appraisee.

Problem in design & implementation of performance management system

Rater biases & errors

Rate errors and biases

Rater errors

Varying. Standards.Recency effect.Primacy effect.Central tendency error.Leniency error.Strictness error.Personal bias error.

Rater bisaes

Halo effect.Contrast error.Similar to or different to me.Sampling error.

Characteristics of effective Performance Management

SystemSEPERATION OF EVALUATION & DEVELOPMENT APPRAISALE

USE OF JOB –RELATED PERFORMANCE

SPECIFYING PERFORMANCE STANDARDS FOR EACH CRITERIA

USING APPROPRITE PERFORMANCE DATA

UPWARD APPRAISALS

APPEAL PROCESS

USING MULTIPLE RATERS

IMPROVING SUPERIOR –SUBORDINATE RELATIONSHIP

TOP MGT .SUPPORT & FIT WITH ORGANIZATIONAL CULTURE

TRANING RATERS

PROVIDING ON GOIN G FEEDBACK

EFFECTIVE PERFORM

ANCE MGT.

SYSTEM

DEVELOPMENT IN PERFORMANCE MANAGEMENT SYSTEM.

Development performance mgt. system

Team or work group

appraisals

Multisource & 360 degree appraisals

Assessment Competency

based appraisals

Difference between assessment centres & development centres

Assessment Centers Development CentersUsed purely for selection purpose.Have a pass/ fail criteria.Focused on immediate need of the organizationHave fewer assessors than participants.Involve line managers as assessors.Focus on meeting organizational needs .Assessors take on role of judge.No departmental feedback or follow up with participants .Used with external candidates.

Primary purpose is development.Do not have a pass/ fail criteria.Focused on long term needs of the organization.1:14m ratio of assessor to participants.Do not involve line managers as assessors .Focus on candidates “s potential.Focus on meeting both individual and organizational needsAssessors take on role of facilitators.Provide development feedback & follow up to participants.Used with internal candidates.

Factors impacting 360 degree appraisal

Organizational cynicism. Purpose of appraisal. Anonymity. Acceptability Competency of appraisers. Competency – based performance management

system.

Approaches to measuring management performance.

1.HOLMES & JOYCE APPROACH :• Job – focused approach.• Person – focused approach .• Role – focused approach .2.HYBIRD APPROACH: It is mostly used in the IT – Based

industry where the approach is both past and future oriented and combines quantitative and qualitative assessments of performance.

Technological and performance management

Computer performance monitoring(CPM):Helps in collecting data such as error rates, time spent, number of work units completed etc.

Online Evaluation & Appraisal software: It is done for multi – rater or 360 degree feedback where the e –mail messages for evaluations.

Linkage between organization life cycle , competitive status, organizational strategy & hr strategy

Org. Life Cycle

Inception [start- up]

Growth

maturity

Competitive status of the firm.

Weak

Strong

Stable

Org. strategies

Value creation

Value accumulation

Value maintenance

Needed employee characteristic

•Innovative.•Risk - taking.Long – term orientation

•Flexibility •Co -operative

•Efficiency•Results with low level of risk

HR strategy

Focus on exploratory knowledge of employees

Focus on exploitative knowledge

Harvest strategy to maintain competitive status

Aligning performance mgt.

Qualitative methods

Quantitative methods

Qualitative methods

Strategic performance management system.

Identify competitive status of the firm.

Internal analysis of strengths and weaknesses of the organization.

Determine strategies.

•Setting corporate strategy.•Setting HR strategy.•Determine needed employee behaviors.

Align the performance management system.

•Define performance criteria.•Select the type of appraisal method.

Step 1 Step 2 Step 3

Thank you