Performance Management System in Organizations

Performance Management is about architecting, implementing and evaluating change to achieve organizational success. Defining Strategy Implementing Strategy Evaluating Strategy!

THE OBJECTIVE
To provide a fresh perspective to the appraisal system Emphasize the need to use PMS as a Management tool for Organizational Development To provide useful information on our Performance Management System.

APPRAISAL SYSTEM
Self Appraisal Initial discussion between the appraiser and the reviewer. Discussion between the appraiser and appraisee and rating to be given with due consideration to the Attributes. Assessment of employees performance by reviewing authority. Final comments on the appraisal by the appraising authority.

Definition
Performance Appraisal is a formal procedure used to evaluate an individual his/her contributions and potential.

Parties involved in Performance Appraisal

You Appraisee Your immediate supervisor Appraiser

The Appraisal Process

Stage 1 Achieving clarity about job to be done Stage 2 Setting goals

Stage 5 Conducting the performance discussion

Stage 4 Preparing for the performance discussion

Stage 3
Reviewing performance on the job

Stage 1 Achieving clarity about job to be done

Between yourself and your supervisor understand : 1) The job objective 2) Key Result Areas Job objective : WHY the job is done?

Key Result Areas (KRAs) are the vital elements of the job KRAs focus on results rather than activities

They contribute to achieve an organisations strategic goals

They are defined in terms of output, not input Results are not the things you do they are the intended consequences of the things you do

Stage 2 Goal setting

WHAT has to be done; also, HOW is it to be done

Goal setting is a joint exercise carried out between your supervisor and yourself. Goals should be : 1) Specific and measurable 2) Achievable 3) Challenging & stretching 4) Jointly agreed

Stage 3 Reviewing performance on the job

Performance should be reviewed jointly, on a periodic basis, by your supervisor and yourself Appraisee to prepare an outline view of his/her performance in advance of each review discussion Immediate feedback should be provided so that the desired change can be effected. This should be irrespective of the review period dates

Stage 4 Preparing for Performance Discussion

1) Assessing Individual performance 2) Plan the structure 3) Structure 4) Structure end
Discussions concerning salary should take place later. Although they obviously will have reference to performance, the two discussions should be as separate in time as possible.
Are the set KRAs and goals still relevant? Have the goals set been achieved? If not, were the reasons within the individuals control? What specific behaviour hindered or facilitated attainment of goals?

Begin by establishing a rapport Give an overview of the process for this discussion Request appraisees view of his/her own overall performance

It will be helpful to prepare an overall plan of time will be used during the discussion; this permits you to emphasize one issue over another
You should also plan for the specific ways in which you will involve the appraisee

Overall summary
Request for feedback to appraiser on ways he/she may be helping/hindering performance Thanks

Stage 5 Conducting the performance discussion

The major requirement during this discussion is for the appraisee to focus on performance and how it can be improved It is critical the appraiser gives it the attention it deserves Failure to treat this meeting with respect will deliver the clear message that the system itself is held in contempt, by you or even the whole organisation Arrange a suitable time during which there will be no interruptions Give advance notice of the meeting to enable the appraisee to prepare Cover for phone calls and ensure no interruptions around Choose a location that will not require either party to sit behind a desk Well-honed listening skills are critical to appraisal discussions. Without them, the appraisee will have the clear impression that the appraiser is not interested in his/her views; such a conclusion will limit the benefit of a performance review During the discussion, due attention should be given in finding agreed ways in which the employee can be further developed. This will benefit both, the individual and the organisation All commitments given by appraisers during the course of appraisal, should be honoured in full to do away with the negative feedbacks for the organisation Ensure KRAs are defined so that goals for the coming year can be set

KEY PERFORMANCE AREAS

WHAT IS KPA :
KPA of each organizational member includes the specific business responsibilities that have an ultimate impact on the success or failure of the enterprise as whole. In other words, KPAs describe the reason why the job existsthey are label and not long statements of outcome that are expected. KPA consists of all the prime responsibilities of an individual member.

APPRAISAL MEETING
A) STEPS IN SETTING UP THE MEETING. State purpose of the meeting Clearly. Communication should be clear and not ambiguous. Date, time and place to be decided in advance. Sufficient time should be kept between two appraisal meetings.

APPRAISAL MEETING
B) PREPARATION FOR THE MEETING

Collection of the facts and necessary data. Plan the points to be discussed.
Be prepared with inputs for a constructive appraisal meeting.

LOCATION OF THE MEETING

WHERE It should preferably be at a neutral place with no physical barriers like the conference room.

WHERE NOT At the Managers desk. At the Appraisees desk.

APPRAISING THE POOR PERFORMANCE A DEADLOCK Grossly avoided because 1. Makes the manager unpopular. 1. May de-motivate the appraisees.

APPRAISING POOR PERFORMANCE MADE EASY

1. Be clear in thoughts and actions : Appraise the Performance not the performer. 2. Describe clearly the expected level of performance. 3. Ask the Appraisees opinion about the expected performance and the actual. 4. Reach a consensus in identifying gap between the actual performance and the expected level. 5. Reach a agreement on improving the performance. 6. Follow up : A Systematic follow up is required to ensure whether the agreed points are being met. 7. Taking timely review of the performance is crucial.

THANK YOU