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    Performance Management & Employee

    Development SystemIntroduction

    It is the goal of every organization to be competitive with the

    best in every part of its business.It is therefore important to define specific responsibilities thatManagers/Supervisors and employees must carry out to help anorganization achieve this goal.

    The PMDS is an important tool designed to empower theSupervisor and his/her employees to achieve the goal of beingthe best in every part of a business.

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    Performance Management & EmployeeDevelopment System

    Introduction

    It is an on-going, year round, interactive process betweenManagers/Supervisors and employees aimed at achieving better results for continual organizational improvement.

    It is the most important and productive activity a manager canpursue, because if it is done well, employees will perform in the rightwas to get the right results.

    If it is ignored or poorly done, employees performance results andmotivation suffers and the manager may end up doing theemployees work rather than managing

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    Performance Management & EmployeeDevelopment System

    Introduction

    The whole idea therefore of PM is to manage theperformances of our employees bearing in mind their strengths and weaknesses and effectively coach andcounsel them on how to improve their performance, sothat the business can continually be improved.

    It does not focus on judging a comparative rating of an

    employees performance.

    It encourages the employee to solicit, and the supervisor to provide frequent, constructive feedback that can beput to use in enhancing performance.

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    Performance Management & EmployeeDevelopment System

    What is Individual Performance?

    It is the outcomes of an employees job description and performanceobjectives for the reward the employee receives.

    Individual performance should :B e aligned with the organization and the business units objectivesB e specifically planned annually on the front-end and assessedperiodically.C ontribute to the overall success of the organization.B e expected to increase/improve each year as learning and growth are

    necessary to sustain competitiveness.B ecome more challenging each year and change as organizationsrespond to changes in the competitive environment.

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    Performance Management & EmployeeDevelopment System

    What is Individual Development.

    Development is increased value to the employee andothers.Development is an increase in mastery of thosecompetencies that result in achieving superior business results.

    Development is an increase in breadth of knowledgeDevelopment is a shared responsibility between theemployee his team members and the supervisor Development is on-going and never-ending

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    Performance Management & EmployeeDevelopment System

    Key Parts of the PM & EDS

    Performance Planning

    E stablishing Performance and Development Objectives.

    C onducting Periodic Progress Review.

    E valuating Performance

    W riting C areer Interest and Development Plan

    C onducting the Performance Appraisal and Development Discussion

    C areer Interest and Potential Discussion

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    Performance Management & EmployeeDevelopment System

    Performance & Employee DevelopmentPlanning

    Performance planning is the identification of keyperformance objectives that an employee plans toaccomplish over the one year appraisal cycle and theidentification of the competencies, skills and experiencesthat he/she expects to have significant impact on his/her ability to achieve the results.

    It is the employees conscious effort to ensure that thecommitments he/she makes for the upcoming year arealigned with the overall plans for the business and theexpectations of the supervisor/manager.

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    Performance Management & EmployeeDevelopment System

    Performance & Employee DevelopmentPlanning

    Planning performance helps the employee keepfocuses on what is really important and how theemployees contribution impacts the overall goals of the business.

    It allows the employee draw linkages between W hatthe employee wants to accomplish (performanceobjectives) and How the employee is going to do it(competencies)

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    Performance Management & EmployeeDevelopment System

    Performance & Employee DevelopmentPlanning Key Parts

    1. Establishing Performance Objectives - Guidelines

    Performance objectives describe the major accomplishmentsthat an employee expects to achieve during the next calendar year.

    Performance Objectives should reflect and align with theorganizations objectives, the business units objectives andthe supervisors objectives.

    At the beginning of the year the Supervisor and employee willreview the organizational objectives related to the businessplan and the employees job description. 9

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    Performance Management & EmployeeDevelopment System

    Performance & Employee DevelopmentPlanning Key Parts

    1. Establishing Performance Objectives Guidelines

    E mployee to list key performance objectives to be

    accomplished during the upcoming year.E mployee to write each objective in such a way thatdescribes what he/she specifically plans to accomplish.Identify the performance measures or outcomes (Quantity,

    Quality, C ost and/or Timeliness) employee expects toachieveF ollow the SMART model for writing objectives

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    Performance Management & EmployeeDevelopment System

    Performance & Employee DevelopmentPlanning Key Parts

    1. Establishing Performance Objectives Guidelines

    Identify key competencies that significantlyimpact upon your ability to meet your performance objectivesIdentify at least 3 developmental objectivesrelated to one or more core competencies.Review your performance and development planwith your supervisor to obtain mutual agreement,and then begin to implement your plan.

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    Performance Management & EmployeeDevelopment System

    Establishing Performance Objectives - Guidelines

    The SMART Model

    The objectives and action plans should be:

    M =MEASURABLE.W ill you be able to say objectively I did what I said I was going todo while including a description of how well you did?

    Measures should be described in terms of :

    Quantity (How many, how much, % increase, etc)Quality (some measure of satisfaction, often from the perspective of others)Cost (your actions resulted in a specific cedis or % reduction incost/ expenses). AndTimeliness (typically an objective to improve the speed of a service or product or the completion of a project). 13

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    Performance Management & EmployeeDevelopment System

    Establishing Performance Objectives - Guidelines

    The SMART Model

    The objectives and action plans should be:

    A =ACHIEVABLEDo your objectives and action plans provide enoughmotivational stretch making them a challenge toaccomplish rather than impossible to reach?Must be attainableMust be meaningfulMust be appropriate to the situationShould not be unreasonably high or employee may give up 14

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    Performance Management & EmployeeDevelopment System

    Establishing Performance Objectives - Guidelines

    The SMART Model

    The objectives and action plans should be:

    R =RELEVANTDo your action plans tie back to your career interests andyour work units, departments, and organizationsobjectives?It is important to enjoy what you are doing, find meaning inwhat you do and identify opportunities and activities toprofessionally develop; butIt must be done in the context of achieving the goals and

    objectives of the organization15

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    Performance Management & EmployeeDevelopment System

    Establishing Performance Objectives - Guidelines

    The SMART Model

    The objectives and action plans should be:

    T =TIME FRAME (Tied to Deadlines)Do your objectives and action plans have dates or milestones that allow you to determine if you are onschedule?The level of objective/plan complexity and activities usuallydictates the degree of time frame details.The longer the time for goal completion, the more critical it isto have time-based checkpoints or milestones.

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    Performance Management & EmployeeDevelopment System

    Performance & Employee DevelopmentPlanning Key Parts

    2. Conducting Periodic Progress Reviews Supervisors Responsibility.

    B oth Supervisor and employee should monitor

    performance resultsDiscuss results to dateProblem solvingProvide ongoing coaching to improve performanceU pdate Performance Objectives as necessary

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    Performance Management & EmployeeDevelopment System

    Performance & Employee DevelopmentPlanning Key Parts

    3. Evaluating Performance SupervisorsResponsibility

    Determine the Overall Performance Rating for theyear based on employees Results as againsthis/her Performance Objectives, DevelopmentalProgress, and demonstrated C ompetencies.

    C omplete the Annual Performance Appraisal F ormand review with Next Level Management, if appropriate .

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    Performance Management & EmployeeDevelopment System

    Performance & Employee DevelopmentPlanning Key Parts

    4. Writing Career Interest and Development Plans Em ployees Responsibility

    E mployee indicates his career aspirations both in the shortterm (2-3 years) and longer term.

    E mployee indicates his development plan that is alignedwith his performance objectives.Supervisor reviews and finalizes development plan withemployee.Supervisor provides on-going coaching and feedback toencourage employee achieve his/her development

    objectives.19

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    Performance Management & EmployeeDevelopment System

    Performance & Employee DevelopmentPlanning Key Parts

    5. Conducting the Performance Appraisal andDevelopment Discussion.

    Supervisor and employee meets to discuss theemployees Results, Overall Performance Rating,

    Developmental Progress, and demonstration of C ompetencies.Supervisor and employee jointly complete DevelopmentPlan and discuss Development F orecastE mployee given copy of completed appraisal summaryform , Manager retains a copy and a copy put onemployees personal file at HR. 20

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    Performance Management & EmployeeDevelopment System

    Performance & Employee DevelopmentPlanning Key Parts

    6. C areer Interest and Potential Discussion.

    Supervisor provides candid feedback onemployee likelihood of achieving career objectives in the organization.

    Supervisor makes available resources to helpemployee manage own career and encouragestheir use.

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    Performance Management & EmployeeDevelopment System

    Benefits of the Performance Management System

    Aligns individual performance objectives with business

    objectivesProvides a system by which employees can develop on the joband managers can develop coaching and counseling skills.

    Appraises managers on management practices Assesses people on both what they accomplish (results) andhow they accomplished them ( C ompetencies & ManagementPractices)E ncourages open discussions on employee development andcareer prospectsProvides periodic progress reviews alerting employees of areasin which they may need development and allows them time to

    improve before the annual performance appraisal summary.Links individual erformance to financial rewards.

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    Performance Management & EmployeeDevelopment System

    Critical Success Factors for the PM&EDS

    Proper training of supervisors and managers.

    E mployee understanding of how the system worksand their roles and responsibilities in the process.

    U nderstanding by all managers and employees thatPerformance Management and E mployeeDevelopment System is an on-going performancedevelopment process and not just once a year appraisal. 23

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    Performance Management & EmployeeDevelopment System

    AIMTo provide understanding of the issues and concepts underlying thePerformance Management System.

    CONTENTIntroductionWhat is Individual Performance?What is Individual Development?Key Parts of the PM & EDS

    1. Establishing Performance Objectives Guidelines - The SMART Model2. Conducting Periodic Progress Reviews

    3. Evaluating Performance4. Writing Career Interest and Development Plans5. Conducting the Performance Appraisal and DevelopmentDiscussion6. C areer Interest and Potential Discussion

    Benefits of the Performance Management SystemC ritical Success F actors for the PM& E DS 24