Performance Management

Training
 It is much
INTRODUCTION more difficult
to measure
non-
Performance Management is the performance
than
strategic approach to ensuring the performance.
efficiency and effectiveness of an Harold S.
organization. Whether at the Geneen
organizational, departmental or
employee level, the goal of
performance management is to make
sure all business goals are being met
in a systematic and satisfactory
manner.
 Training Objectives
• Define performance management.
• Understand how performance management
works and the tools to make it work.
• Learn the three phases of performance
management and how to make it work
effectively for the organization
• Discuss effective goal-setting.
• Learn how to give feedback on performance
management.
 Management is
Components of PMP doing things
right;
leadership is
doing the right
The effectiveness of an organization in things.
terms of whether or not it is meeting its Peter F. Drucker
mission or goals can be determined by
engaging in performance management.

• Performance management consists of five

components:
1. Planning work
2. Setting expectations
3. Continually monitoring performance
4. Developing the capacity to perform
5. Periodically rating performance in a summary
fashion, and rewarding.
 How Does Performance
Management Work?
• Clearly identify the job’s purpose as well as the duties
associated with it.
• Determine goals and how to measure outcomes.
• Rank job priority.
• Characterize the standard of performance for critical
aspects of the position.
• Discuss employee performance and provide feedback. This
should at least be done on a quarterly basis.
• Keeps track of employee performances for rewarding and
compensation.
• Creates an improvement plan to better employees’
performance.
 Competency Assessment
There are several steps that you need to take before you implement
competency assessments. Successful implementation requires you
to complete all of the steps.
Steps:
• Identify Competencies: Ascertain which competencies are needed
to perform a job and the skill level of each competency.
• Develop Assessments: Create a fair method of assessment that
concentrates on targets. Company goals will determine the targets.
• Practice Assessments: Practice using assessments, just like any
other skill.
• Assess Employees: Use the standards and assessments to review
employees.
• Plan: Use action plans to help employees develop.
 During Performance Reviews
• Preparation: Both the employer and employee must be adequately groomed for the review.
• Prioritize the meeting: To show the employee that this review is a top priority, there should
be a formal agenda that is adhered to. There should also be as few interruptions as
possible.
• Encourage positivity: When speaking to the employee, invoke positive responses by
communicating in a positive manner.
• Clarity: Be sure the purpose of the meeting is clear from the beginning.
• Expectations: Review the job description, why it is needed, and the standards of
performance.
• Explain employee’s performance: Discuss the employee’s actual performance, whether it
fell below, met or exceeded expectations. Give specific examples.
• Employee feedback: Allow the employee to express their concerns or suggestions.
• Goal-setting: Discuss goals for areas that require improvement. If there are no “areas for
improvement”, create goals to enhance the knowledge and skills of the employee for
personal development as well as bettering the department / company as a whole.
• Follow-up: Determine the appropriate method and or time for follow-up.
• Closing: The meeting should end positively. Review the contributions the employee is
making to the company. Inform employee that you are willing to help in any way necessary.
 Three Phase Process
• Phase One: Unfreezing: This phase is extremely important as you
aim to understand change and how it takes place. This phase is
crucial because it includes coming to the realization that change
needs to happen. It also requires one to leave that which has been
comfortable in order to make this change possible.
• Phase Two: Change: Pointed out (to employees) that “change” is
not a one-time event that takes place, but rather the inner-
transition that takes place as a response to the outward changes
that are taking place.
• Phase Three: Freezing: Also known as “refreezing”, this phase is
the establishment of new norms and gaining stability after the
institution of change. This phase can sometimes be misleading. It
seems to be a long-term state, when in fact it is one that can
change to “Unfreezing” within a matter of days.
 If you don’t
Goal Setting know where
you are going,
how can you
expect to get
Every successful business plan there?
requires goals and objectives. Goals Basil S.
show the strengths and weaknesses Walsh
of plans and procedures.
Implementing regularly evaluated
goals allows leaders to understand
where performance is and what
needs to be improved. When
managing performance, make sure
that you implement SMART goals.
 SMART Goal Setting
People often fail to reach their goals. This usually indicates
that the wrong goals are being chosen. SMART goals will
improve the chances of achieving both personal and business
goals.
SMART goals:
• Specific: Goals should have specific instructions.
• Measurable: It should be clear when goals and objectives
are met.
• Attainable: Impossible goals are not motivating.
• Realistic: Goals need to be something people are able to
work towards.
• Timely: Goals need specific timeframes.
Establishing Performance Performance
is your
Goals reality.
Forget
Performance goals require strategic everything
else.
action. To be effective, these goals
Harold S.
should not be handed down to Green
employees. It is important to include
employees in the goal setting process
and encourage them to meet their
individual performance goals. This
will improve individual and company
performance.
 Strategic Planning
A strategic plan determines where employees are, where
they want to be, and how they will get there. It should
embrace the values of the organization and align with the
following company information. The organization must
create a strategic plan before creating performance goals.
Company Strategic Plan:
• Vision
• Mission
• Philosophy
• Goals
• Objectives
 Motivation
• Lead by example: Motivate yourself before you can
motivate others.
• Meet with individuals: Communicate with employees
directly to find out what motivates them.
• Reward employees: Find motivating rewards for
individuals.
• Delegate: Do not micromanage employees.
• Inform: Inform people about how they are making a
difference in the organization.
• Celebrate: Pay attention to achievements and
celebrate with employees.
 Key Mile Stones

Performance Management
• January – March period
Employee and Supervisor
institute honest and open

Process
discussion
Key Mile Stones
• October – November • PMP Form
period • Training Plan
• Employee and Supervisor • Job Descriptions
institute honest and open • Discuss KPA
discussion • Decide and set stretch
goals
Initial
• PMP Form • Training needs identified
Jan -Feb
• Training Plan go to O&D training
• Job Descriptions coordination
• Discuss KPA Key Mile Stones
• Review stretch goals • June – July period
• Performance • Employee and Supervisor
Improvement Plan Form institute honest and open
(PIP) PMP discussion
Training needs identified
•
and training coordination Cycle • PMP Form
• Succession Plans • Training Plan
Final Review Quarterly
• Talent identification , &Assessment Review
development and • Discuss KPA
Oct -Nov Jun-Jul
Management • Review stretch goals
• Localization of jobs • Performance
• Salary reward Improvement Plan Form
/compensation (PIP)
• Promotion • Training needs identified
go to O&D training
coordination
 Linking with Your Employees or
Managers
• It is important that employees and managers connect
for performance management to be effective.
Relationships on every level must remain professional.
When employees and managers do not trust each
other, performance suffers.
• It is possible for managers to link to employees’
performance journals and see any information that
employees choose to share with them. This helps
managers see things from an employee’s perspective
and create accurate evaluations. It also makes
employees part of the evaluation process.
 Key People &Tools
• PMP Model : Have a model that clearly defines employee performance standards
helps the company and employees avoid ambiguities in what is expected.
• Business Unit Training Coordinators: The link for coordination of all training and
pmp between SBUs and HR ensuring consistency , continuity and effectiveness.

• Annual Employee Appraisal Document: While those in leadership roles monitor

employees’ performance throughout the year and provide feedback and
coaching during that interval, leaders/managers are also responsible for
conducting an employee appraisal, which is generally done on an annual basis.
• Coaching /Training Staff: Once the standard has been set and performance
feedback has been provided to the employee, it is critical that the PPL offer
continuous coaching/training.
 Feedback is
360 Degree Feedback the
breakfast of
360 degree feedback is useful for champions.

evaluating performance. It provides Ken

Blanchard
evaluations from different sources to
paint a clear picture of how well an
individual performs. Identifying
strengths and weaknesses will allow
employees to continually improve
how they perform.