BY,

DILJA M DILEEP
DEFINITION:-
According to Armstrong, Performance management is a means of getting better
results from the organization, team and individuals by under-standing and managing
performance within an agreed framework of planned goals, standards and competence
requirements.
PERFORMANCE MANAGEMENT PROCESS
Performance Management &
Coaching
Performance
Monitoring
Performance
review
Performance
measurement/Appraisal
Performance Feedback
Performance Planning

Performance
Planning
Identifying
accountable
standards
Selecting measures
& indicators
Setting objectives
Communicating
expectations
Performance Management &
Coaching
Redefining indicators &defining
measures
Assessing organizational resource
allocation
Ensuring optimal utilization of
resources
Instructing & coaching employees

Performance
Monitoring
Providing feedback &
counselling
Developing a regular
reporting & monitoring
cycle.
Providing appeal
mechanism
Annual stocktaking
Performance
Review
Assess progress in
work at regular
intervals
Identity
facilitating factors
Minimising
inhibiting factors
Performance
Measurement/
Appraisal
Analysing performance
data
Evaluating performance
of employees against
performance plan
Administration of
performance based pay
& rewards.

Performance
feedback





THE PERFORMANCE MANAGEMENT CONTRIBUTION
1. Motivation to perform is increased.
2. Self-esteem is increased.
3. Managers gain insight about subordinates.
4. The definitions of job and criteria are clarified.
5. Self-insight and development are enhanced.
6. Administrative actions are more fair and appropriate.
7. Organizational goals are made clear.


8. Employee become more competent.
9. There is better protection from lawsuits.
10. There is better and more timely differentiation between good and
poor performers.
11. Supervisors views of performance are communicated more clearly.
12. Organizational change is facilitated.
13. Motivation, commitment and intentions to stay in the organization
are enhanced.

SIMILARITIES & DIFFERENCES OF PERFORMANCE APPRAISAL &
PERFORMANCE MANAGEMENT SYSTEM
S.No. Performance Appraisal System Performance Management System
1 The main focus area here is performance
appraisal and the generation of ratings
The focus is on performance management
2 It lays emphasis on relative evaluation of
individuals
It stresses upon performance improvements of
individuals, team & the organization
3 It is an annual exercise This is a continuous process with quarterly
performance review discussions
4 Emphasis is on ratings and evaluations Emphasis is on performance planning, analysis,
review, development & improvement
5 Here the reward and recognition of good
performance is an important component
Performance rewarding may or may not be an
integrals part.

S.No. Performance Appraisal System Performance Management System
6 Designed and monitored by the HR department It is designed by the HR department but monitored by
the respective departments themselves.
7 Ownership lies with HR people The ownership is with the line managers HR facilitates its
implementation
8 KPAs & KRAs are used for bringing in objectivity KPAs & KRAs are used as planning mechanisms

9 Developmental needs are identified at the end of
the year on the basis of the appraisal of
competency gaps
Development needs are identified in the beginning of
the year on the basis of the coming year
10 There are review mechanisms to ensure objectivity
in ratings
There are review mechanisms essentially to bring
performance improvements.

11 It is a system with deadlines, meetings, input &
output & a format
Same
12 It is a formant driven process with emphasis on the
process
It is a formant driven process with emphasis on the
formant as an aid
13 Linked to promotions, rewards, training &
development, interventions & placements
Linked to performance improvements & through them
to other HR decisions as & when necessary.