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Category Archives: PMS

How Do Performance Appraisals Work in Your Organization?


Creating a Superior Workforce

I thought that the main reason for performance appraisals were to improve performance by creating a superior workforce. In my company, which are mainly hourly employees, the employee appraisals are based on performance data, quality data, specific instances (such as notations about dealing with risks, specific situations or behavioral notations), and project closeout notes. This information is collected through our information management system by a report query. By utilizing facts, job notations, and managers input we feel that we create a fairly accurate assessment of our employees. Our philosophy is that employees are basically trustworthy, want to feel part of an organization and will produce. Low production is usually based on a lack of talent, skill, knowledge, proper tools or management (who are responsible for lowering dissatisfaction and increasing motivation). All of these things except talent can usually be improved without negatively affecting the employee.

—JohnDrago

Training the Managers

In my view, training the managers on the impact of good and bad practices in the performance appraisal process has been very effective. No matter how effectively a performance appraisal system is designed, like any other system, it is just as good as the people running it.

—Guest Rizwan Aziez

Impact-based performance-evaluation/comp

For those interested in this subject, we started a company that focuses on just this question: how to do expectation-driven performance evaluation and impact-based compensation. The solution we came up with is one where performance evaluations are done quickly and often in a 360-style manner and we calculate impact based on the collected data. For more, please take a look at http://www.fairsetup.com. That said, I completely agree with the sentiment of the article. Traditional yearly reviews with rank-and-yank do not support the conversation among employees about management of expectations, which is really what I think performance evaluation is about…

—Guest Nikita Bernstein (FairSetup)

Not Follow Apprasials

In many organisations like dealerships, they are not followed. Apprasials. It’s very sad that they want great performance of the organisation but do not follow apprasials and even they give pressure on the employees. For the great performance, it’s necessary to maintain good relations and good and heaithy relations by apprasial.

—Guest Anupam

My Way Or The Highway

Although the organization’s appraisal form might have addressed what needs to be in it, the lack of training for the people who use them is sadly lacking and a disgrace to the elemental characteristics necessary for productive supervision. When a supervisor has to receive two notices that he is late with a performance evaluation and then uses a brief time period to determine the worth of an employee who has 21 years of experience exceeding standards in prior evaluations speaks of the lack of real concern for that organizations’ employees. It’s outtright fraud and corruption that goes to the heart of that organization.

—Guest RJ

Performance appraisal experience

I am connected to a non-government organization where key result areas are set to measure work performance. This tool of performance evaluation is associated with a productivity incentive. After a couple of years of implementing performance evaluation, I find it very difficult to determine poor performance because the results were almost subjective, not objective. What happens is that, yearly, we face complaints and yearly we enhance the tool. At my end, I want to polish the work attitudes of the employees towards developing a team work force. I started working at the bottom – the front-line employees. Yet recently I realized that I need to start training the managers first so that they can train their respective staffs. I am learning a lot from the lessons sent to me earlier. Thank you for the great minds initiating this access to learning for me and others.

—Guest Marie Jane Acebes

Is it the right way or wrong?

We do semi-formal (in-writing but not seen by HR) performance updates every 6 months. This is followed by an Annual Evaluation at 12 months. First the blank evaluation is given to the employee for comments and self ratings. Then, the supervisor comments and rates. The evals then go to our Assistant Director for review. If approved, it is then forwarded to the Director. Often our Director returns the eval with a change in ratings and/or comments. The Director attempts to explain that she has input on the eval and that the rating/comments she gives NEED to be reflected on the final draft. I am being told this is the way it has always been done (changing the immediate supervisor’s comments and ratings) and that it the “right way”. Is this the right way or has it always been the wrong way? As long as the Supervisor includes the specifics or examples to justify their rating, should someone else without direct knowledge of the employees performance be forcing their input into an eval? (Susan says: short answer, no, especially not after the fact. If a supervisor, manager and so forth have thoughts about an employee’s evaluation, they should be communicated before the supervisor writes it so that they can be considered and incorporated. Someone who has no direct knowledge about an employee’s work should not be making comments about it at all. Just another example of why I dislike performance appraisal so much. 2x a year when an employee needs feedback every day or so. managers who don’t know the employee’s work having input, etc.)

—Guest Sergeant

Appraisal All Year

The routine performance appraisal: employee filling a format and facing an interview by an officer who has not observed the employee at work. It will not have any effect on the performance. It will not help to improve. In our organization, it is a proactive process. Annual target is given. It is divided into monthly targets. Goal alignment with every working unit and every individual is done very effectively. In the beginning of every month, employees are reminded of their monthly goal. Every 10 days they are reminded of what they have achieved. That itself motivates them. So appraisal is not a postmortem, an exercise at the end of the year. Periodical performance appraisal itself motivates the team. At the end of every month performance appraisal in intimated. Employees know where they stand tracked against the target. It motivates. It help them to put out extra effort to reach the goal. We give constant training to help the employee to develop their capabilities.

—Guest R.S.Nair

Grading Method

At my company (I’m in HR), we do the grading method. My boss told me this was really done because it’s expected, not because it’s helpful. My boss and I check in with each other on a daily basis and I feel this is the best way to “appraise” employees.

—Guest Jen D

Performance Reviews

One year my review cited a notation regarding customer service – this from my supervisor who always stated that there should be no surprises on an evaluation for the employee. When I asked about the incident she was referring to, it turns out another employee overheard a “water cooler” conversation between myself and another employee joking about sending customers from one office to another. Instead of asking me about this when it happened, it was on my review. The other employee backed me up; the supervisor knew I was furious that a tattletale rumor could find its way to my review, so she offered to “re-write” my review! Needless to say, I lost all respect that I had previously held for this woman – and to think that she was training me! Amazing!

—Guest Shelly P

Appraisal – A Tool for Motivation

The success of an organisation should be credited to the employees for their hard work, sincerity and committment. They must be considered for the awards to do their best .

—Guest Gopal Sharon

Performance Appraisals

l am the human resource manager of a nepales microfinace institution. I mostly use the pair comparision method.

—Guest chandra kanta kafle

Perf Appraisal vs Performance Management

Performance appraisal is always a part of the feedback mechanism in almost all planning systems. The trouble begins when these two are viewed as a separate domain in an an organization. The operating group thinks they “own” the results of the organization and the HR, on the other hand, believe that they have the sole “hand” in measuring the performance of the employees. This situation often ended up with the performance evaluation being discarded by the operations group, and with HR people completely “hurt” in the process. HR managers should take an active role in the business planning process and must “insist” that performance evaluation is not just a mere feedback mechanism but an essential component in the Business Planning system. To “insist” is to work it out in harmony with the operations group in convincing higher management in the importance of this HR initiative. This is my understanding of performance management.

—Guest Easy Calda

HR Owns Performance Appraisal

In my organisation, Performance Appraisal is in the custody of the Human Resources staff; most people do not sit down with their managers. It is so badly run that, at the end of the day, every employee seems to have performed well, even when the ultimate result is the opposite. Mostly employees push when they need promotions. The worst? It was done quarterly, since lately that has changed and the appraisal is done half yearly, which has not improved the situation.

—Guest Molleloa

Public Service Commission Approach

Two of the guiding principles of our Public Service and our Public Service Commission are to (1) focus on achieving results and managing performance and (2) to ensure transparency in the performance of organizations’ and employees’ functions and roles. Our Performance Management System (PMS) was launched in 2007 to make our public service a result oriented institution. Our PMS policy provides for quarterly performance appraisals. Our performance rules provide for appraisal panels and independent assessment committees. There are seven stages in our performance appraisal process. Stage 1 is on preparing the appraisal. Stage 2 is on conducting the appraisal. Stage 3 is on referring the results of the appraisal to the employee. Stage 4 is on discussing the outcomes of the appraisal with the employee. Stage 5 is on referring the appraisal to the Commission. Stage 6 is deciding over the outcomes of the appraisal by the Commission. Stage 7 is on communicating the decision of the Commission

—Guest Laurent

Performance Reviews: a Complete Waste

I hold a Master’s Level degree. Upon my last job performance, which was done on a teleconference, my boss stated very good qualities that I possess on the job, such as learning subjects quickly, keen to technology & computers, and am very well liked. However, she mentioned my voice tone was “loud.” I have deafness in my right ear from measles 50 years ago and cannot hear very well. I do not believe that voice quality should be reviewed on an evaluation. Do you? (Susan says: not really in a review. This is more a topic for a regular meeting. Though, if you do a lot of teleconferencing with colleagues, you might choose a trusted one and see how loudly your voice is coming across to see if you can modulate your tone. I wear hearing aids and I always sound loud to me so sometimes, I talk too softly. Best wishes.)

Ref:http://humanresources.about.com

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Posted by on January 15, 2013 in PMS

 

How Can Managers Improve Performance Appraisals?


How Can Managers Improve Performance Appraisals?

Managers at large organizations are often required to adhere to a certain process of employee performance appraisals. How can those managers improve performance appraisals when they can’t overhaul their employee evaluation system altogether?

Answer:

Not every manager has the opportunity to impact or improve the overall performance appraisal system within which they must work. But, every manager has the opportunity to take the system they’ve been dealt and turn the performance appraisal process into a positive, rewarding, beneficial process for both themselves and the employees who report to them.

Managers can improve performance appraisals and make them into an effective communication, goal setting, and development tool for employees while operating within the requirements of their system of performance appraisals.

Managers can start by implementing the suggestions in these performance appraisal FAQs (frequently asked questions). They can end up with the required performance appraisal document but make the performance appraisal process useful by their approach.

Here are five ways managers can immediately improve performance appraisals.

  • Use the performance appraisal document periodically, at least quarterly, throughout the year to assess employee progress. The performance appraisal document is a useful discussion starter. It consolidates employee performance information in one spot. The performance appraisal document provides a running record of employee performance discussions all year. It provides a picture of the employee’s accomplishments and progress throughout the year.

 

  • Provide feedback to employees regularly – not just in the annual performance appraisal. Employees like regular feedback (particularly millennial employees) and an effective manager takes time every day for employee feedback. Managers get more comfortable with feedback, better at giving feedback, and they nip problems before they become big.

 

  • Engage the employees in a two-way discussion whenever their performance is the topic. You can improve performance appraisals by involving the employee in the discussion all year long. Then the official performance appraisal day is just an extension of the normal performance discussion. Effective performance appraisals are never a talk by a manager. If the manager is talking even half the time, the performance appraisal is not a two-way conversation. It’s a lecture. Make the majority of the conversation positive, reinforcing, and developmental for the employee. After all, it’s his or her stage – done correctly.

 

  • Improve performance appraisals by using an employee self-appraisal prior to the performance appraisal. Far too many managers give employees a copy of the actual form prior to the performance appraisal meeting. In the worst cases, both the manager and the employee fill out the form, give the employee a grade or score, and then, arrive at the performance appraisal meeting dug into their positions and points of view. Even worse, some managers tell the employees to fill out their own performance appraisal, and if they do a good job, the manager will sign it. In this recommendation, the manager arrives at the meeting with ideas jotted down on the form; the employee arrives with their self-appraisal filled out and then – the discussion begins.

 

  • An effective performance appraisal trusts employees to do the right thing, if they know what the right thing is. Consequently, setting performance goals is critically important, but how you set the goals is the most important factor of all. Set goals in a way that reinforces the employee’s ability to plan and implement the steps necessary to reach the goal. The performance appraisal must support and reinforce the employee’s empowerment, his or her ability to chart the course to successful accomplishments. See more about how to make goals effective.

You can use these five ideas immediately to improve performance appraisals.

 

Ref: http://humanresources.about.com/od/performanceappraisal/f/improve-performance-appraisals.htm

 

 
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Posted by on January 15, 2013 in PMS

 

10 Tips for Effective Performance Reviews


Performance Review Tips

  • The employee should never hear about positive performance or performance in need of improvement for the first time at your formal performance discussion meeting, unless it is new information or insight. Effective managers discuss both positive performance and areas for improvement regularly, even daily or weekly. Aim to make the contents of the performance review discussion a re-emphasis of critical points.

    In the interest of providing regular feedback, performance reviews are not an annual event. Quarterly meetings are recommended with employees. In one client company, job planning and evaluation occurs twice a year. Career development planning for employees is also scheduled twice a year, so the employee discusses his or her job and career, formally, four times a year.

 

  • No matter the components of your performance review process, the first step is goal setting. It is imperative that the employee knows exactly what is expected of his or her performance. Your periodic discussions about performance need to focus on these significant portions of the employee’s job. You need to document this job plan: goals and expectations in a job plan or job expectations format, or in your employer’s format. Without a written agreement and a shared picture of the employee’s goals, success for the employee is unlikely.

 

  • During preparation and goal setting, you need to make how you will evaluate the employee’s performance clear. Describe exactly what you’re looking for from the employee and exactly how you will evaluate the performance. Discuss with the employee her role in the evaluation process. If your organization’s performance review process includes an employee self-evaluation, share the form and talk about what self-evaluation entails.

    Make sure that you also share the performance review format with the employee so she is not surprised at the end of the performance review time period. A significant component of this evaluation discussion is to share with the employee how your organization will assess performance. The employee needs to understand that if he does what is expected, he will be considered a performing employee. In some organizations that rank employees, this is the equivalent of a three on a five point scale. An employee must do more than perform to be considered an outstanding employee.

 

  • Avoid the horns and halo effect in which everything discussed in the meeting involves positive and negative recent events. Recent events color your judgment of the employee’s performance. Instead, you are responsible to document positive occurrences such as completed projects, and negative occurrences such as a missed deadline, during the entire period of time that the performance review covers. (In some organizations, these are called critical incident reports.) Ask the employee to do the same so that together you develop a comprehensive look at the employee’s performance during the time period that your discussion covers.

 

  • Solicit feedback from colleagues who have worked closely with the employee. Sometimes called 360 degree feedback because you are obtaining feedback for the employee from his boss, coworkers, and any reporting staff, you use the feedback to broaden the performance information that you provide for the employee. Start with informal discussions to obtain feedback information. Consider developing a format so that the feedback is easy ti digest and share by the manager.

 

  • If your company uses a form that you fill out in advance of the meeting, give the performance review to the employee in advance of the meeting. This allows the employee to digest the contents prior to her discussion of the details with you. This simple gesture can remove a lot of the emotion and drama from the performance review meeting.

 

  • Prepare for the discussion with the employee. Never go into a performance review without preparation. If you wing it, performance reviews fail. You will miss key opportunities for feedback and improvement and the employee will not feel encouraged about his successes. The documentation that you maintained during the performance review period serves you well as you prepare for an employee’s performance review.

    If needed, practice approaches with your Human Resources staff, a colleague, or your own manager. Jot notes with key points of feedback. Include bullet points that clearly illustrate the point you plan to make to the employee. The more you can identify patterns and give examples, the better the employee will understand and be able to act upon the feedback.

 

  • When you meet with the employee, spend time on the positive aspects of his or her performance. In most cases, the discussion of the positive components of the employee’s performance should take up more time than that of the negative components. For your above average performing employees and your performing employees, positive feedback and discussion about how the employee can continue to grow her performance should comprise the majority of the discussion. The employee will find this rewarding and motivating.

    No employee’s performance is completely negative – if so, why does the employee still work for your organization? But, don’t neglect the areas that need improvement either. Especially for an underperforming employee, speak directly and don’t mince words. If you are not direct, the employee will not understand the seriousness of the performance situation. Use examples from the whole time period covered by the performance review.

 

  • The spirit in which you approach this conversation will make a difference in whether it is effective. If your intention is genuinely to help the employee improve, and you have a positive relationship with the employee, the conversation is easier and more effective. The employee has to trust that you want to help him improve his performance. He needs to hear you say that you have confidence in his ability to improve. This helps him believe that he has the ability and the support necessary to improve.

 

  • Conversation is the key word that should define a performance review meeting. If you are doing all of the talking or the meeting becomes a lecture, the performance review is less effective. The employee will feel as if he was yelled at and treated unjustly. This is not how you want employees feeling as they leave their performance reviews.

    You want an employee who is motivated and excited about his ability to continue to grow, develop, and contribute. Aim for performance review meetings in which the employee talks more than half of the time. You can encourage this conversation by asking questions such as these.

    –What do you expect to be the most challenging about your goals for this quarter?
    –What support can the department and I provide for you that will help you reach these goals?
    –What are your hopes for your achievements at our company this year?
    –How can I be a better manager for you?
    –How often would you like to receive feedback?
    –What kind of schedule can we set up so that you don’t feel micromanaged but I receive the feedback that I need about your progress?
    –What would be a helpful agenda for our weekly one-on-one meetings?

If you take these performance review tips to heart and practice these recommendations in your performance review meetings, you will develop a significant tool for your management tool bag. The performance review can enhance your relationship with employees, improve performance for your organization, and enhance employee-manager communication significantly – a boon for customers and work relationships.

Ref: http://humanresources.about.com/od/performanceappraisal/qt/tips-for-effective-performance-reviews.htm

 
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Posted by on January 15, 2013 in PMS

 

Performance Development Planning


In the process, staff members also set personal developmental goals that will increase their ability to contribute to the success of your organization. The accomplishment of these goals also provides a foundation for their career success whether in your organization or elsewhere, so they ought to be motivated and excited about achieving these goals.

Your system of Performance Management, with the PDP process for goal setting and communication, will ensure that you are developing a superior workforce. As one CEO remarks daily, “The only factor that constrains our growth is our ability to hire a superior workforce.” Why not grow that talent from within your organization as well?

PDP meetings are held, at least, quarterly to review the staff person’s progress on the overall goals and objectives. Your staff person’s progress on the action plans, that result from the PDP goals, is reviewed at your weekly one-on-one meeting. This weekly meeting allows you to offer assistance and to identify any help or tools the staff person needs to succeed.

Make the Performance Development Planning Meeting Successful

Wonder what to do to make the Performance Development Planning (PDP) meeting successful? These recommendations tell you and your staff person what to do prior to the Performance Development Planning meeting.

  • Schedule the Performance Development Planning meeting and define pre-work with the staff member.
  • The staff member reviews personal performance for the quarter, writes business and personal developmental goal ideas on the PDP form and gathers needed documentation, including 360 degree feedback results, when available.
  • The supervisor prepares for the PDP meeting by clearly defining the most important outcomes needed from the staff person’s job within the framework of the organization’s strategic plan.
  • The supervisor writes business and personal developmental goal ideas on the PDP form in preparation for the discussion.
  • The supervisor gathers data including work records and reports and input from others familiar with the staff person’s work.
  • Both the supervisor and the employee examine how the employee is performing against all criteria, and think about areas for potential development.
  • The supervisor develops a plan for the PDP meeting which includes answers to all questions about the performance development planning process with examples, documentation, and so on.
  • Recognize that this process takes place quarterly and that the most time and work are invested in the first PDP meeting. The rest of the quarterly PDP goals, maybe for years, are updates to the initial goals.

So, while seemingly time consuming on the front end, the PDP process, with a formal, effective foundation of solid personal and business goals, is less time consuming as quarters pass. The PDP continues to create business and employee success and value during its lifetime. With quarterly updates, the PDP process contributes into the future.

During the Performance Development Planning (PDP) meeting:

  • Establish a comfortable, private setting and chat a few minutes to establish rapport with the staff person.
  • Discuss and agree upon the objective of the meeting: to create a performance development plan.
  • The staff member is given the opportunity to discuss the achievements and progress accomplished during the quarter.
  • The staff member identifies ways in which he would like to further develop his professional performance, including training, assignments, new challenges and so on.
  • The supervisor discusses the employee’s performance for the quarter and suggests ways in which the staff member might further develop his performance.
  • The supervisor provides input to the employee’s selected areas of personal and professional development and improvement.
  • Discuss areas of agreement and disagreement, and reach consensus.
  • Examine job responsibilities for the coming quarter and, in general.
  • Agree upon standards for performance for the key job responsibilities for the quarter.
  • Discuss how the goals support the accomplishment of the organization’s business plan and the department’s objectives.
  • Set goals together for the quarter.
  • Agree upon a measurement for each goal.
  • Assuming performance is satisfactory for the quarter, agree on a personal and professional development plan with the staff person, that helps him grow professionally in ways important to him and to your organization.
  • If performance is less than satisfactory, develop a written Performance Improvement Plan (PIP), and schedule more frequent feedback meetings. Remind the employee of the consequences connected with continued poor performance.
  • The supervisor and the employee discuss the employee’s feedback and constructive suggestions for the supervisor and the department.
  • Discuss anything else the supervisor or employee would like to discuss, hopefully, maintaining the positive and constructive environment established thus far, during the meeting.
  • Mutually sign the Performance Development Planning document to indicate the discussion has taken place.
  • End the meeting in a positive and supportive manner. The supervisor expresses confidence that the employee can accomplish the plan and that the supervisor is available for support and assistance.
  • Set a time-frame for formal follow up, generally quarterly. I recommend you set the actual date for follow-up.

Following the Performance Development Planning Meeting

  • If a Performance Improvement Plan (PIP) was necessary, follow up at the designated times.
  • Follow up with performance feedback and discussions regularly throughout the quarter. (An employee should never be surprised about the content of feedback at the quarterly performance development meeting.)
  • The supervisor needs to keep commitments relative to the agreed upon personal and professional development plan, including time needed away from the job, payment for courses, agreed-upon assignments and so on.
  • The supervisor needs to act upon the feedback from departmental members and let staff members know what has changed, based upon their feedback.
  • Forward appropriate documentation to the Human Resources office and retain a copy of the plan for easy access and referral.

When your organization develops the discipline and commitment necessary to carry out regular performance development planning, your organization will win. This systematic method for cascading goals and commitment throughout your organization will ensure your success.

Ref: http://humanresources.about.com/cs/perfmeasurement/a/pdp_2.htm

 
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Posted by on January 15, 2013 in PMS

 

Performance Improvement Plan


The Performance Improvement Plan (PIP) is designed to facilitate constructive discussion between a staff member and his or her supervisor and to clarify the work performance to be improved.

It is implemented, at the discretion of the supervisor, when it becomes necessary to help a staff member improve his or her performance. The supervisor, with input from the affected employee, develops an improvement plan; the purpose of the activities outlined is to help the employee to attain the desired level of performance.

The PIP differs from the Performance Development Planning (PDP) process in the amount and quantity of the detail. Assuming an employee is already participating in the company-wide PDP process, the format and the expectation of the PIP should enable the supervisor and staff member to communicate with a higher degree of clarity about specific expectations. In general, people who are performing their jobs effectively, and meeting the expectations of the PDP process, will not need to participate in a PIP.

In all cases, it is recommended that the supervisor’s supervisor and the Human Resources department review the plan. This will ensure consistent and fair treatment of employees across the company. The supervisor will monitor and provide feedback to the employee regarding his or her performance on the PIP and may take additional disciplinary action, if warranted, through the organization’s Progressive Discipline Process, if necessary.

The supervisor should review the following six items with the employee when using the document.

  1. State performance to be improved; be specific and cite examples.
  2. State the level of work performance expectation and that it must be performed on a consistent basis.
  3. Identify and specify the support and resources you will provide to assist the employee.
  4. Communicate your plan for providing feedback to the employee. Specify meeting times, with whom and how often. Specify the measurements you will consider in evaluating progress.
  5. Specify possible consequences if performance standards are not met.
  6. Provide sources of additional information such as the Employee Handbook.

Ref: http://humanresources.about.com/od/performancemanagement/a/PIP_2.htm

 
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Posted by on January 15, 2013 in PMS

 

Performance Management System


Performance management (PM) includes activities which ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product of service, as well as many other areas.

PM is also known as a process by which organizations align their resources, systems and employees to strategic objectives and priorities

 

performance management system includes the following actions.

  • § Developing clear job descriptions and employee performance plans which includes the key result areas (KRA’) and performance indicators.
  • § Selection of right set of people by implementing an appropriate selection process.
  • § Negotiating requirements and performance standards for measuring the outcome and overall productivity against the predefined benchmarks.
  • § Providing continuous coaching and feedback during the period of delivery of performance.
  • § Identifying the training and development needs by measuring the outcomes achieved against the set standards and implementing effective development programs for improvement.
  • § Holding quarterly performance development discussions and evaluating employee performance on the basis of performance plans.
  • § Designing effective compensation and reward systems for recognizing those employees who excel in their jobs by achieving the set standards in accordance with the performance plans or rather exceed the performance benchmarks.
  • § Providing promotional/career development support and guidance to the employees.
  • § Performing exit interviews for understanding the cause of employee discontentment and thereafter exit from an organization.

performance management process sets the platform for rewarding excellence by aligning individual employee accomplishments with the organization’s mission and objectives and making the employee and the organization understand the importance of a specific job in realizing outcomes. By establishing clear performance expectations which includes results, actions and behaviors, it helps the employees in understanding what exactly is expected out of their jobs and setting of standards help in eliminating those jobs which are of no use any longer. Through regular feedback and coaching, it provides an advantage of diagnosing the problems at an early stage and taking corrective actions.

To conclude, performance management can be regarded as a proactive system of managing employee performance for driving the individuals and the organizations towards desired performance and results. It’s about striking a harmonious alignment between individual and organizational objectives for accomplishment of excellence in performance.

Any effective performance management system includes the following components: (Appraisal system)

  1. Performance Planning: Performance planning is the first crucial component of any performance management process which forms the basis of performance appraisals. Performance planning is jointly done by the appraisee and also the reviewee in the beginning of a performance session. During this period, the employees decide upon the targets and the key performance areas which can be performed over a year within the performance budget., which is finalized after a mutual agreement between the reporting officer and the employee.
  2. Performance Appraisal and Reviewing: The appraisals are normally performed twice in a year in an organization in the form of mid reviews and annual reviews which is held in the end of the financial year. In this process, the appraisee first offers the self filled up ratings in the self appraisal form and also describes his/her achievements over a period of time in quantifiable terms. After the self appraisal, the final ratings are provided by the appraiser for the quantifiable and measurable achievements of the employee being appraised. The entire process of review seeks an active participation of both the employee and the appraiser for analyzing the causes of loopholes in the performance and how it can be overcome. This has been discussed in the performance feedback section.
  3. Feedback on the Performance followed by personal counseling and performance facilitation: Feedback and counseling is given a lot of importance in the performance management process. This is the stage in which the employee acquires awareness from the appraiser about the areas of improvements and also information on whether the employee is contributing the expected levels of performance or not. The employee receives an open and a very transparent feedback and along with this the training and development needs of the employee is also identified. The appraiser adopts all the possible steps to ensure that the employee meets the expected outcomes for an organization through effective personal counseling and guidance, mentoring and representing the employee in training programmes which develop the competencies and improve the overall productivity.
  4. Rewarding good performance: This is a very vital component as it will determine the work motivation of an employee. During this stage, an employee is publicly recognized for good performance and is rewarded. This stage is very sensitive for an employee as this may have a direct influence on the self esteem and achievement orientation. Any contributions duly recognized by an organization helps an employee in coping up with the failures successfully and satisfies the need for affection.
  5. Performance Improvement Plans: In this stage, fresh set of goals are established for an employee and new deadline is provided for accomplishing those objectives. The employee is clearly communicated about the areas in which the employee is expected to improve and a stipulated deadline is also assigned within which the employee must show this improvement. This plan is jointly developed by the appraisee and the appraiser and is mutually approved.
  6. Potential Appraisal: Potential appraisal forms a basis for both lateral and vertical movement of employees. By implementing competency mapping and various assessment techniques, potential appraisal is performed. Potential appraisal provides crucial inputs for succession planning and job rotation.

 

Benefits

Direct financial gain,

  • Grow sales
  • Reduce costs in the organization
  • Stop project overruns
  • Aligns the organization directly behind the CEO’s goals
  • Decreases the time it takes to create strategic or operational changes by communicating the changes through a new set of goals

Motivated workforce

  • Optimizes incentive plans to specific goals for over achievement, not just business as usual
  • Improves employee engagement because everyone understands how they are directly contributing to the organizations high level goals
  • Create transparency in achievement of goals
  • High confidence in bonus payment process
  • Professional development programs are better aligned directly to achieving business level goals

Improved management control

  • Flexible, responsive to management needs
  • Displays data relationships
  • Helps audit / comply with legislative requirement
  • Simplifies communication of strategic goals scenario planning
  • Provides well documented and communicated process documentation

 

 

Ref: http://en.wikipedia.org/wiki/Performance_management

http://www.managementstudyguide.com/performance-management.htm

http://www.managementstudyguide.com/components-of-performance-management-system.htm

 
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Posted by on January 14, 2013 in PMS