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Learning Objectives
Learning what performance
management
Learn how to set goals, objectives
and put development plans together
with your staff.
Learn how to review performance
and how to manage underperformers.
Learn how to deal with difficult
people in an effective manner.
Ground Rules
Please put all mobile phones and
devices on SILENT mode
Feel free to ask questions
Active participation- Cold calls
Two breaks: Tea and Lunch
Performance Management
allows successful companies to
appraise employees performance
identify performers and marginal
performers
motivates performance-based
remuneration
help identify competence gaps
build a culture of performance and
alignment
creates communication channel for
Performance Management
Is a continuous process of setting
goals, effectively communicating
them, monitoring and evaluating the
results against agreed set criteria
and objectives of a firm in order to
identify, support, retain and develop
employees to drive strategic growth
and development of the firm.
Drivers of Organisational
Performance
Funnelling
Goal-Setting
Usually done annually
Based on set targets and objectives
from the companys management
Aligned to companys strategic
direction and goals
Should be done with necessary input
from employee
Finalised by each Manager or Unit
Supervisor
Communication
Monitoring
Employee Development
Plan
Is a roadmap to improve employees
work performance with a view to
address current areas of deficiency
and prepare him/her to meet future
challenges
How to Create a
Development Plan
List all needed short and long term skills,
competence/knowledge to meet current and
future job requirements
Compare employees performance to the list
Identify areas of performance and deficiency
Let employee perform self-assessment based
on company needs
Meet and compare assessments, highlight
areas of disagreement
Difficult Employees
Impact on Organisations
Reduced efficiency
Higher operating costs
Low team morale
Poor work place culture
Acrimony and dispute
Poor corporate image
Threatens competitiveness and
future growth
Difficult employees
Verbally confront issues directly and
document subsequent meetings
Proffer multiple solutions and ask
employee to come up with a
corrective action plan
Offer support and coaching if
required
Bring in a third party (e.g. HR) if
additional help is needed
Be consistent, calm and professional
Perf
Poor Perf
Excellent
PERFORMANCE
OPPORTUNITIES
No/Low Knowledge
High Knowledge
Key Performance
Management Questions
1.
2.
3.
4.
5.
6.
The WHY of
Performance
Management Systems
WHAT to Assess
Skills/Abilities/Needs/Traits of Individuals
That Interact with the Organization to Produce
Behaviors Which
Result in Outcomes
HOW to Assess
Performance
Traditional
Management-by-Objective
Assessment Center
Peer Review Panel
Critical Events
Upward Feedback
360 Degree
Some Techniques of
Performance Management
Essay (open-ended)
Management by Objective
Ranking
Paired Comparisons
Forced Choice
Forced Distribution
Ratings:
-Checklist
-Scales
Essay Technique
Comments
Development Areas
1.
2.
3.
Comments
Management-byObjective
Examples
Employee will contribute to organizational
profit margin by lower costs in department
by 3.5percent.
To implement new recruitment system, the
employee will evaluate the effectiveness of
the advertisements placed during the year.
Ranking Example
Manager ranks all employees from best to worst:
Overall performance
On specific criteria (communication,
customer relations skills, etc.)
Paired Comparisons
Example
Forced Distribution
Example
Place each of the employees in your unit in the
following categories based upon overall or
specific category performance:
Top 10 percent:
50 89 percent:
10-49 percent:
Bottom 10 percent:
Outstanding:
Average:
Good:
Below Average:
Unacceptable:
General Electrics
Distribution
The Vitality Curve
High
Top Performers
10%
Highly Valued
70%
Least Effective
20%
Promotability
Medium
Limited
Ratings Example:
Scales
3
3
3
2
2
2
3
2
2
1
___
2
1 ___
1 ___
1 ___
1 ___
1 ___
___
1 ___
Citibanks Performance
Scorecard
Measurements
Standards
Managers assessment
Leadership,
Ethics/Integrity
Customer Interaction
Community Involvement
Contribution to Overall Business
People
Managers assessment
Performance
Teamwork
Training & Development
Employee Satisfaction
Control
Auditors standards
Below
Par
Par
Abov
e Par
Citibanks Performance
Scorecard..
Measurements
Customer Satisfaction
Strategy Implementation
Objective standards
Households
Cross-sell, splits, mergers
Retail asset balances
Market share
Financial
Revenue
Expense
Margin
Objective stadards
Below
Par
Par
Abov
e Par
Citibanks Link to
Compensation
Ratings
Above Par
Par
Below Par
Bonus
30%
15%
0%
Opportunity
Reinforce/Reward Behavior
Change Behavior
Model Behavior
Establish Culture
Focus
Time
orientation
Judgmental
Past
performance
Development
al
Preparation for
future
performance
Method
Improving
Improving
performance by
performance by
changing
self- learning &
behavior through personal growth
rewards
Supervisors Judge who
Counselor who
Role
appraises
listens, helps,
encourages &
guides
Subordinate Listener, reactor Actively
s
to, defender of
involved in
WHEN to Assess
Performance
Probation Period
Annually (anniversary date, assigned date, set
date for all)
Semi-annually
For Cause
On-going
As needed
How to Communicate
PM Info
Orally
In Writing
Formally
Informally
Public
Private
Moderated
Handling Performance
Issues
What to do
Where to start
How to do it
Why PM Is Difficult
Job/Outcomes not quantified
Personal relationships with employees
Unable to give criticism
Personality biases
Poor communication
Conflicting Goals
Playing God
Errors in Performance
Measurement
Strictness or Leniency
Central Tendency
Halo Error
Recency Error
Supervisor Bias
Overall Ratings
Correcting PM Errors
Isolate Job Areas
Observe Regularly
Minimize Number of Ratings Completed
Train Raters
Define Dimensions Better
Give Feedback
Use Continual Feedback
Include Other Sources
Decrease Generalities, Include Specifics
Effective PM Systems
System acceptable to employees
Managers use system regularly & correctly
Perception of being treated fairly by system
Useful feedback provided
Focus on problem solving, not blame
Serve to increase productivity & satisfaction
System used by organization
Training for PM
Interviews
Have documentation
Be objective
judge job, not individual
Use specific examples
Share control
Make it a year-round process
Training.continued
Avoid arguments
Strive for consistency
Get it down in black and white
By-the-book
Listen
PRIOR TO PM
INTERVIEW
Decide on best time
Decide on best place
Prepare facilities
Gather info and materials
Prepare employee
Plan the opening
Plan the approach
Plan the conclusion
After PM Interview
Meet deadlines
Solicit input
Reinforce, reward, punish
(follow through)
Review regularly
How to Destroy PM
System
Do not follow policies
Be inconsistent in application
Treat it as unimportant
Do not follow-up
Reprimand in public; Reward in private
Conduct when angry
Be late
The WHY of
Performance
Management Systems
Performance
Management
Trends
Shift from viewing financial figures as
main criteria to one of multiple indicators
More weight on indicators of efficiency
and effectiveness
Change to viewing PM as on-going,
evolving process
Skills/Abilitie
s/
Needs/Traits
Behaviors
Results
Job Knowledge
Strength
Perform Tasks
Obey
Instructions
Report
Problems
Maintain
Equipment
Follow Rules
Sales
Production
Levels
Production
Quality
Scrap/Waste
Submit
Suggestions
Follow-up
Equipment
Repairs
Customers
Coordination
Business
Knowledge
Desire to
Achieve
Dependability
Creativity
Accidents
Measures Focus
Consistent indicators across industry or
similar organizations
Comparison of indicators over time in
organization
Comparisons with pre-determined standard
Approaches to PM
Comparative
Attribute
Behavioral