PERFORMANCE MANAGEMENT

PERFORMANCE MANAGEMENT

1. Performance management

   • Two main components
     • Continuous process
       • Setting goals and objectives
       • Observing performance
       • Giving coaching
       • Receiving feedback
     • Alignment with strategic goals
       • Link employees’ activities
       • Gain a competitive advantage
   • Alive and well
     • Key role in companies
     • Transition from PA to PM system
     • Companies adopting PM
     • Media trend

2. Making Performance Management Work in Your Business

   • Distinguishing performance management from performance appraisal
     • Performance management
     • much more than just performance measurement
     • Driven by the line manager
     • Strategic business purpose
     • Ongoing feedback
     • Emphasis on past, present
     • performance appraisal
     • the measurement and description of an employee’s strengths and weaknesses.
     • Driven by the HR function
     • Mostly administrative purpose
     • Feedback once a year
     • Emphasis mostly on past
   • Adapting performance management for different generations
     • need to consider generational dif- ferences for the performance management system to be effective
   • Adapting performance management to today’s reality
     • the Internet and cloud computing have fundamentally changed the way we work
     • using dynamic online systems accessed via web and mobile apps
     • Get your head in the clouds
       • Cloud computing technology allows supervisors and peers to provide performance evaluations on an ongoing basis and in real time — and employees to receive feedback also on an ongoing basis and in real time
       • allows organizations to update goals and priorities and communicate them also real-time to all employees
       • clearer understanding of the role of managers in the performance management process
     • Context matters
       • allows for the customization of performance management systems such that every step can be customized and tailored to local contexts
       • consider local norms — including societal and organizational cultural issues.

3. Designing and Implementing a Performance Management System

   • Step 1: Establishing prerequisites
     • Strategic planning
       • Defining its purpose and reasons for existing, where it wants to be in the future
       • The goals it wants to achieve, and the strategies it will use to attain these goals
     • Work analysis
       • a process for determining the key components of a particular job
         • activities
         • tasks
         • products
         • services
         • processes
   • Step 2: Planning performance
     • Results and key accountabilities
       • Referring to the outcomes of what employees do — what employees produce
       • A consideration of results includes the key accountabilities, or broad areas of a job for which the employee is responsible for producing results
     • Behaviors
       • Discussing competencies, which are measurable clusters of KSAs that are critical in determining how results will be achieved
   • Step 3: Executing Performance
     • Success factors
       • Commitment to goal achievement
       • Check-ins and performance touchpoints
       • Preparing for performance reviews.
       • Updates
       • Feedback
       • Resources
       • Reinforcement
   • Step 4: Assessing performance
     • Both employee and manager are responsible for the desired behaviors and desired results
     • Increases employee ownership and commitment to the system
     • Provides important information to be discussed
     • Sources
       • Supervisor
       • Other team members
       • Direct supervisor
   • Step 5: Reviewing performance
     • Involve performance review/appraisal meeting
     • Appraisal meeting
       • Important
       • Review what was done (results), how it was done (behaviors)
       • Should include
         • Discussion of the employee’s developmental progress as well as plans for the future
         • Discussion of goals and development plans
         • Information on what new compensation and rewards