Performance

Management
Process

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Human Resource
Management

Performance Management
Process

Setting Objectives
Performance Review
Coaching and feedback

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Human Resource
Management

People development process

1. Business Objectives
2. Individual and organizational
effectiveness
3. Staffing
4. Performance management
5. Competencies/ Skills
6. Education & Training/
Development planning
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Human Resource
Management

Purpose for a Performance

review
1. Recognize people for what they
have done and how they did it
2. Talk about objectives and
responsibilities not yet
accomplished
3. Guide people in what they need to
do and how to do it
4. Motivate people toward improving
performance to achieve results.
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Human Resource
Management

What is a SMART objective?

1. Specific
2. Measurable
3. Action Oriented
4. Realistic
5. Time-bound

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Human Resource
Management

Effective Objectives must be

SMART

Specific: Clearly state the outcome you

expect to achieve (what specifically needs
to be done)
Measurable: Can be quantitatively or
qualitatively determined
Action-Oriented: Describe what action will
take place and what the results will be
Realistic: Have a reasonable expectation
of being achieved
Time-bound: Specify a timeframe in which
your results should be acieved.
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Human Resource
Management

The Balanced Scorecard What is it

The
Balanced
Scorecard
is
a
management tool that provides
stakeholders with a comprehensive
measure of how the organization is
progressing
towards
the
achievement of its strategic goals.

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Human Resource
Management

The Balanced Scorecard What is it

The Balanced Scorecard:
Balances financial and non-financial measures
Balances short and long-term measures
Balances performance drivers (leading indicators)
with outcome measures (lagging indicators)
Should contain just enough data to give a complete
picture of organizational performance and no more!
Leads to strategic focus and organizational
alignment.
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Human Resource
Management

The Strategy Focused

Organization
Mission What we do
Vision

What we aspire to be

Strategies
How we
accomplish our goals
Measures Indicators of our
progress
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Human Resource
Management

The Balanced Scorecard and The

Big Picture

Strategic
Planning
Mission
and
Vision
Balanced
Scorecard

Activity Based Costing

Economic Value Added
Forecasting
Benchmarking
Market Research
Best Practices
Six Sigma
Statistical Process Control
Reengineering
ISO 9000
Total Quality Management
Empowerment
Learning Organization
Self-Directed Work Teams
Change Management

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Human Resource
Management

Strategic Direction
Create Environment
For Change

Strategic Performance Management

System

Communicate Strategies
Define Objectives
Implement BSC

Balanced Scorecard
Measure Performance
Improve Processes

Linking it all together.

Evaluate and Adjust

Continuous Improvement
Redefine Initiatives
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Human Resource
Management

THE BALANCED SCORECARD

FINANCIAL/REGULATORY
To satisfy our constituents,
what financial & regulatory
objectives must
we accomplish?

CUSTOMER
To achieve our vision,
what customer needs must
we serve?

INTERNAL
To satisfy our customers and
stakeholders, in which business
processes must we excel?

LEARNING & GROWTH

To achieve our goals, how
must we learn, communicate
and grow?
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Human Resource
Management

Customer
Perspective
To achieve our vision, what customer needs
must we serve?
Possible Performance Measures
o Customer Satisfaction (Average)
o Satisfaction Gap Analysis (Satisfaction vs. Level of
Importance)
o Satisfaction Distribution (% of each area scored)

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Human Resource
Management

Financial / Regulatory Perspective

To satisfy our constituents, what
financial and
regulatory objectives must we
Possible Performance Measures
accomplish?
o Cost / Unit

o Unfunded Requirements or Projects

o Cost of Service
o Budget Projections and Targets

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Human Resource
Management

Internal Perspective
To satisfy our customers, in which
business
processes must we excel?
Possible Performance Measures
o Cycle Time
o Completion Rate
o Workload and Employee Utilization
o Transactions per employee
o Errors or Rework

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Human Resource
Management

Learning and Growth

To achieve our goals and accomplish core
activities, how must we learn, communicate
and work together?
Possible Performance Measures
o Employee Satisfaction
o Retention and Turnover
o Training Hours and Resources
o Technology Investment

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Human Resource
Management

Targets
If you dont know where youre
going, youre probably not gonna
get there.

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Human Resource
Management

Targets
Targets need to be set for all measures

Should have a solid basis

Give personnel something for which to aim

If achieved will transform the organization

Careful not to develop measures/targets in

a fragmented approach:
i.e. Asking people to increase customer satisfaction
has to be backed up with the knowledge, tools, and
means to achieve that target.

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Human Resource
Management

Initiatives
Once measures and targets are
established, it is the responsibility
of management to determine HOW
the organization will achieve its
goals.
Measures are used to determine
the effectiveness of strategic
initiatives.
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Human Resource
Management

THANK
YOU
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Human Resource
Management