Making the Case for PM

Making the Case for PM

1. Using Performance Management to Achieve Multiple Purposes

   • Strategic objectives
     • Performance management systems help top management achieve strategic business objectives
   • Administrative objectives
     • Performance management is also useful for providing useful information used in making administrative decisions about employees
   • Informational objectives
     • inform employees about how they are doing and provide them with information on specific areas that need improvement
     • related to the strategic purpose, they provide information regarding expectations of peers, supervisors, customers, and the organization, and what aspects of work are most important
   • Developmental objectives
     • inform employees about how they are doing and provide them with information on specific areas that need improvement
     • related to the strategic purpose, they provide information regarding expectations of peers, supervisors, customers, and the organization, and what aspects of work are most important.
     • employees receive information about themselves that can help them individualize their career paths
     • feedback is an important component of a well- implemented performance management system
   • Organizational maintenance objectives
     • Consider work- force planning
     • talent inventory

2. Whaát in It for Me

   • Convincing top management of performance management's value
     • Benefits of performance management for all employees
     • Answering the "What's in it for me?" question
   • Building support in the entire organization
     • Top management support
     • All participants' understanding and engagement
     • Answering the "What's in it for me?" question
     • Communication about the system
     • System consequences
     • Involving people in the process
   • Building Support for Performance Management at Bankers Life and Casualty
     • Challenges faced by Bankers Life and Casualty
     • Aggressive marketing campaign
     • Internal focus groups
     • Improving the performance management system
     • HR and Communications-led discussions
     • Manager forum
     • CEO's support and visibility
     • Key outcomes of the performance management system
   • Realizing the Benefits of Performance Management
     • Benefits for Employees
     • Improved self-esteem
     • Improved motivation
     • Improved understanding of job requirements
     • Benefits for Managers and the Organization
     • Improved voice behavior
     • Decreased employee misconduct
     • Addressing performance declines early on
     • Improved employee motivation, commitment, and retention
   • Benefits of Performance Management
     • Improved differentiation between good and poor performers
     • Improved understanding of performance meaning
     • Fair and appropriate administrative actions
     • Better protection from lawsuits
     • Facilitated organizational change
     • Example: IBM's use of performance management for organizational change

3. Ideal Performance Management System Looks Like

   • Contextual issues: Making everything fit
     • Strategic congruence
       • should be congruent with the unit and organization’s strategy
       • individual goals must be aligned with unit and organizational goals
     • Context congruence
       • should be congruent with the organization’s culture and broader cultural context of the region or country.
     • Meaningfulness
       • must be considered important and relevant.
       • Must be emphasize only those functions that are under the control
       • must take place at regular intervals and at appropriate moments of the employee
       • should provide for the continuing skill development of evaluators
     • Inclusiveness
       • must represent the concerns of all the people who will be affected by the outcome
       • must participate in the process of creating the system by providing input regarding what behaviors or results will be measured and how
   • Practical issues: Striving for effectiveness and fairness
     • System must follow these criteria to be implemted
       • Practicality
       • Identification of effective and ineffective performance
       • Acceptability and fairness
     • Perceptions of fairness
       • Distributive justice
       • Procedural justice
       • Interpersonal justice
       • Informational justice
   • Technical issues: Sweating the details
     • Thoroughness
     • Specificity
     • Reliability
     • Validity
     • Openness
     • Correctability
     • Standardization
     • Ethicality

4. Taking Care of Talent Management Functions

   • Training and development
     • Performance management provides information on developmental needs
     • Most organizations don’t use performance management systems to determine training content and waste an opportunity to use the performance management system as the needs assessment phase of their training efforts.
   • Workforce planning
     • Performance management also provides key information for workforce planning
     • An organization’s talent inventory is based on information collected through the performance management system.
     • Knowledge of an organization’s current and future talent is important when deciding what types of skills need to be acquired externally and what types of skills can be found within the organization.
   • Compensation
     • Compensation and reward decisions are arbitrary in the absence of a good performance management