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PerformanceManagement 1 7 1WhatisPerformanceManagement 7 2TheProcessesofLinkingPerformanceManagementtotheStrategicPlan 7 3PerformanceManagementApproaches 7 4GatheringofthePerformanceInformation 7 5ImplementingaPerformanceManagementSystem 7 6ThePerformanceFeedback Contents 2 Performancemanagementisaprocesswhichisdesignedtoimproveorganizational teamandindividualperformanceandwhichisownedanddrivenbylinemanagers MichaelArmstrong 7 1WhatisPerformanceManagement 3 PerformanceManagementisAnagreementbetweenemployeeandsupervisorAnon goingprocessTiedtothemeritprocess PerformanceManagementshouldnotbeAonce a yeareventAnpunitiveprocessAtimetogivesurprises 4 Ingeneral performancereferstotheeffectivenessandefficiencyinone swork Theso calledperformancemanagementreferstothatmanagersandemployeesatalllevelsparticipateinperformanceplanning performancecoachingcommunicationandperformanceevaluationinordertoachieveorganizationalgoals performanceresultsoftheapplicationofperformancegoalsincontinuingcycletoenhancetheprocessofperformancemanagement 5 Organization sstrategicplan Mission Vision Goals Strategies Unit sstrategicplan Mission Vision Goals Strategies Individualandteamperformance Results Behaviors Developmentalplan Jobdescription Tasks Knowledge Skills Abilities 7 2TheProcessesofLinkingPerformanceManagementtotheStrategicPlan 6 Performancemanagementprocesses Monitoring Developing Rating Rewarding Planning 7 1 PlanningWorkandSettingExpectations Planningcouldbevitalinaneffectiveorganization Itmeanssettingperformanceexpectationsandobjectives andlinkingindividuals efforttotheorganizationalgoals Inordertoregulatetheplanningforemployees performance itisrequiredtoestablishtheelementsandstandardsoftheperformanceappraisalplans whichoughttobemeasurable understandable verifiable equitableandachievable 8 2 ContinuallyMonitoringPerformance Assignmentsandprojectsshouldbemonitoredcontinuallyinaneffectiveorganization Effectivemonitoringrequiresconsistentlyperformancemeasurementandprovisionofongoingfeedbacktoemployeesandworkgroupsontheirprogresstowardachievingtheirgoals 9 3 DevelopingtheCapacitytoPerform Employees developmentneedsareevaluatedandaddressedinaneffectiveorganization Developinginthiscircumstancemeansdifferentmethodsliketraining provisionofassignmentsthatintroducesnewskillsorhigherlevelofresponsibility Itprovidesemployeeswithtraininganddevelopmentopportunitiesthatencouragegoodperformance strengthens job relatedskillsandcompetencies andhelpsemployeeskeepupwithchangesintheworkplace suchastheintroductionofnewtechnology 10 4 PeriodicallyRatingPerformance Fromtimetotime organizationsfinditusefultosummarizeemployeeperformance Thiscanbehelpfulforlookingatandcomparingperformanceovertimeoramongvariousemployees Theorganizationneedstoknowwhotheirbestperformersare Althoughgroupperformancemayhaveanimpactonanemployee ssummaryrating aratingofrecordisassignedonlytoanindividual nottoagroup 11 5 RewardingGoodPerformance Inaneffectiveorganization rewardsareusedwell Rewardingmeansindividuallyandcollectivelyapprovingemployeesoftheirperformanceandacknowledgingtheircontributionstotheagency smission Goodperformanceisapprovedbeforenominationsforformalawards Theregulationsalsocoveravarietyofcontributionsthatcanberewarded fromsuggestionstogroupaccomplishments 12 7 3PerformanceManagementApproaches 13 7 3PerformanceManagementApproaches Performanceevaluationisonlypartofperformancemanagement butitisthekeyofperformancemanagementanditisorganizedinaccordancewithcertainpre determinedcriteriaandevaluationprocedures theuseofscientificmethodsofevaluation theevaluationcriteriaforevaluatingthecontentandabilitytoworkobjects regularandirregularworkperformanceassessmentandevaluation Performanceevaluation Performancemanagement 14 7 3 2 7 3 3 7 3 1 7 3 4 7 3 5 TheCriticalIncidentTechnique CIT BehaviorallyAnchoredRatingScale BARS The360 degreePerformanceEvaluation TheKeyPerformanceIndicator KPI BalancedScorecard 15 Personnel Data Porperty Money CITisuesdtolookintothecauseofhuman system orproduct problemssoastominimizelossofpersonnel property moneyordata Analysismayshowhowclustersofdifficultiesarerelatedtoacertainaspectofthesystemorhumanpractice Investigatorsthendevloppossibleexplanationsforthethesourceofthedifficulty Themrthodgeneratesalistofgoodandbadbehaviorswhichcanthenbeusedforperformanceappraisal 7 3 1 TheCriticalIncidentTechnique CIT 16 BehaviorallyAnchoredRatingScale BARS BARSareacombinationofthecriticalincidentsandratingscalemethods Employeeperformanceisratedonascalebutthescalepointsareanchoredwithcriticalincidents ThedevelopmentofBARSistime consuming butthebenefitsmakeitworthwhile TheBARSapproachnotonlymeetsequalemploymentopportunitycommissionguidelinesforfairemploymentpracticesbutitmayimprovereliabilityofpersonnelassessmentandenhancescommunicationwhenevaluationemployees 7 3 2 17 The360 degreePerformanceEvaluation The360 degreeevaluationisacommontoolinHRM Simplyput itisamechanismforevaluatingsomeone sperformancebasedonfeedbackfromeveryonewithwhomtheindividualcomesincontact supervisors coworkers partners subordinates thegeneralpublic Thismethodofcollectingevaluativeinputisanexcellentsourceofmotivationforemployeesbecauseifprovidesatrulyhonestassessmentabouthowtheemployeeandhis herperformanceisviewedbyavarietyofconstituents 7 3 3 18 19 TheKeyPerformanceIndicator KPI TheKeyPerformanceIndicators alsoknownasKPIorKeySuccessIndicators KSI helpanorganizationdefineandmeasureprogresstowardorganizationalgoals KeyPerformanceIndicatorsarethosemeasurements KeyPerformanceIndicatorsarequantifiablemeasurementsthatreflectthecriticalsuccessfulfactorsofanorganization Theywilldifferindependingontheorganization AKeyPerformanceIndicatorforasocialserviceorganizationmightbenumberofclientsassistedduringtheyear 7 3 4 20 BalancedScorecard Sinceitsinceptionintheinternationalarena BalancedScorecard particularlyintheUnitedStatesandEurope soonstronglyattractedcustomers andcommunicaties interest InHarvardBusinessReview BalancedScorecardischosenasthemostinfluentialmanagementtoolsinthepast75years whichbrokethetraditionalmethodofusingfinancialindicatorssignallytomeasureperformance Butonthebasisoffinancialindicators factorssuchascustomer internalbusinessmanagementprocessesandemployeelearingandthegrowthinourstrategicplanningandexecutivemanagementpalyaveryimportantrole 7 3 5 21 7 4GatheringofthePerformanceInformation 22 Animportantcomponentoftheperformanceassessmentstageistheuseofappraisalforms theseformsareinstrumentsusedindocumentsandevaluateperformance Thesectionconcludeswithadiscussionofreasonswhyratersarelikely eitherintentionallyorunintentionally todistortperformanceratingsandwhatcanbedonetoimprovetheaccuracyofratings 7 4Gatheringoftheperformanceinformantion 23 Thecoreofanyperformancemanagementsystemisassessmentofperformance theinformationonperformanceiscollectedusingforms oneofadvantageoffilledoutelectronicallyisthatinformationisstoreanditcaneasilybeshared Also havingthedateavailableinelectronicformcanhelpsubsequentanalyses Regardlessofweathertheyareelectronicoronpaper appraisalformsusuallyincludeacombinationoffollowingcomponents Table1summarizethemajorcomponentsofappraisalforms 7 4 1appraisalforms 24 Table7 1themajorcomponentsofappraisalforms 25 weshouldbeawarethatthereisnosuchthingasauniversallycorrectappraisalform Insomecaseaformmayemphasizecompetenciesandignoreresults Inothercase theformmayemphasizedevelopmentissuesandminimize orevencompletelyignorebothbehaviorandresults Inspiteofthelargevariabilityintermsofformatsandcomponents therearecertaindesirablefeaturesthatmakeappraisalformsparticularlyeffective seetable2 7 4 2thecharacteristicsofappraisalforms 26 Table7 2desirablefeaturesofallappraisalforms 27 Oncetheformiscompleted thereisusuallyaneedtocomputeanoverallperformancescore Therearetwomainstrategiestoobtainanoverallperformancescoreforeachemployees judgmentalandmechanical Thejudgmentalprocedureconsistoftheconsiderationineveryaspectofperformanceandthenarrivingatadefensiblesummary Thisisbasicallyaholisticprocedurethatrepliesonabilityofratertoarriveatafairandaccurateoverallscore 7 4 3determiningoverallrating 28 Howlongshouldtheappraisalperiodbe Commonlyusedevaluationmethodsare theannualevaluation theevaluationofthesemi annualandquarterlyreviews onlyconductinganannualreviewmaynotprovidesufficientopportunityforthesupervisorandsubordinatetodiscusstheperformanceissuesinaformalsetting Therecommendationthenistoconductsemiannualandquarterlyreviews Whenisthebesttimetocompletethereviews Mostorganizationsadoptoneortwopossibilities First theappraisalformcanbecompletedonoraroundtheannualanniversarydate Thesecondchoiceistocompletetheappraisalformstowardtheendoffiscalyear 7 4 4appraisalperiod 29 Butwhatabouttheadditionalworkimposedonthesupervisorswhoneedtoevaluatealltheemployeesatonceduringashortperiodoftime Ifthereisongoingcommunicationbetweenthesupervisorandtheemployeeaboutperformanceissuesthroughouttheyear completingappraisalformsshouldnotuncoveranymajorsurprisesandfillingouttheappraisalformshouldnotcreateamajortimeburdenforsupervisor 30 7 4 5thesourceofperformanceinformation 31 7 5ImplementingaPerformanceManagementSystem 32 7 5ImplementingaPerformanceManagementSystem Performancemanagementiskeyinorganizationsthatwishtoassessindividuals performanceandrewardthemappropriately Todothissuccessfullyanorganizationneedstohaveasystemthatmanagesperformance notjustforrewardpurposesbutalsotohelpestablishwhatpeopleshoulddotogrow andtheskillstheywillrequiretoachievethis 33 7 5 1TheCommunicationPlanOrganizationaoftenmakeacommunicationplantoensurethatinformationabouttheperformancemanagementsystemiswidelydisseminatedintheorganization Agoodcommunicationplananswersthefollowingquestions 1 Whatisperformancemanagement 2 Howdoestheperformancemanagementfitinourstrategy 3 Whataremyresponsibilities 4 Howistheperformancemanagementrelatedtootherinitiatives 34 WhyCommunicationisimportantinPM 35 CommunicationSkill AskingQuestions Openquestions CloseQuestions ProbingQuestionsActiveListeningReflecting RedirectingGivingOthersa SafeSpace tosharetheirperceptions 36 ReachObjectiveAgreement Cascadedepartmentalobjectives BP Draftindividualperformanceanddevelopmentobjectives Finalizeandsetobjectives 37 7 5 2TheAppealProcessTheappealprocessistheimportantforgainingemployees sacceptance itcanaddressthedisagreements italsoincreasesperceptionsofthesystem sfairness TheHRdepartmenteithersuggestscorrectiveactiontothesupervisororinformstheemployeethatthedecisionorproceduresarecorret 38 7 5 3ThePilotTestingTheorganizationmadeapoilottestintwodistricts First thecommitteepreparedatrainingsessionthatincludedapre appraisalworkgroupmeeting Thenaselectnumberofindividualsacrossthedistrictsreceived trainthetrainer training Finally thesystemwasinstitutedagency wide 39 7 5 4OngingMonitoringandEvaluation1 ThenumberofindividualevaluatedThemanagerreviewtheemployee sworkplansonaperiodicbasis andidentifytowhatextenttheemployeehasreachedtheobjectives 2 ThedistributionofperformanceratingsThemanagerandtheemployeejointlyevaluateexistingcapabilitiesoftheemployee andidentifytheresultsandtheperformanceofalltheevaluationfactorsintheevaluationcycle 3 ThequalityofinformationIntheevaluationmeeting discussionsshouldputemphasisonconstructivereviewofpreviousobjectivesandworkobjectivesinfutureevaluationcycles 40 4 ThequalityofperformancediscussionmeetingThemanagershouldguideordirectdiscussions andofferfeedbackontheemployee sperformanceandrequiredcapabilities 5 SystemsatisfactionTheevaluationinterviewshouldcreateanopportunityfortheemployeetojointlydiscusshisshort termandlong termcareerdevelopmentobjectives 41 6 Overallcost BenefitratioTheemplo
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