Download - Performance Mngmt
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PERFORMANCE MANAGEMENTPERFORMANCE MANAGEMENT
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What is Performance
Management?The process by which organisations ensure
that their people:
Are aligned to achievement of the
organisations overall goals ; and
Are meeting their performance goals
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Performance ManagementPerformance Management
A method for improving employeeA method for improving employee
performance through goal setting,performance through goal setting,feedback, encouragement and support,feedback, encouragement and support,
and rewards for successand rewards for success
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Where do we Start?Where do we Start?
No matter how large the organisation, allNo matter how large the organisation, all
performance begins with the individual.performance begins with the individual.
Individual performance then flows ontoIndividual performance then flows ontoteams, divisions, business units and finally toteams, divisions, business units and finally to
the whole organisation.the whole organisation.
Hence, eachHence, eachind
ividual
ind
ividualneeds to beneeds to be
Performance Managed.Performance Managed.
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Undertaking PerformanceUndertaking Performance
ManagementManagementSuccessful PM requiresSuccessful PM requires::
A desire to achieve success through people.A desire to achieve success through people.
This must come from the top of theThis must come from the top of theorganisation.organisation.
A Performance Management methodology.A Performance Management methodology.
A Performance Management system.A Performance Management system.
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PM MethodologyPM Methodology
What to assess:What to assess:
Objectives Objectives
Behaviours / Values Behaviours / Values
Competencies Competencies
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PM Methodology: What toPM Methodology: What to
Assess?Assess?ObjectivesObjectives::
These are the Hard Edged" components.
These are the Hard Edged" components.
Examples:Examples:
Sales of X within 6 months at a specifiedSales of X within 6 months at a specified
average margin.average margin.
Lost Time / Injury Rates of X or less.Lost Time / Injury Rates of X or less.
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PM Methodology: What toPM Methodology: What to
Assess?Assess? Behaviours / ValuesBehaviours / Values::
Basically How we do business in ourBasically How we do business in our
organisation components.organisation components. Examples:Examples:
Importance of teamworkImportance of teamwork
Demand for integrityDemand for integrityThe requirement to be innovativeThe requirement to be innovative
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PM Methodology: What toPM Methodology: What to
Assess?Assess? CompetenciesCompetencies::
These are the skills components.These are the skills components.
Examples:Examples:Can be technical competencies that are jobCan be technical competencies that are job
specific.specific.
Managerial competencies such as leadership,Managerial competencies such as leadership,flexibility, achievement motivation andflexibility, achievement motivation and
communication skills.communication skills.
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Practical Tips for a PerformancePractical Tips for a Performance
Management SystemManagement System Keep it simple and focussed:Keep it simple and focussed:
Resist the temptation to have too manyResist the temptation to have too manyobjectives or other criteria in the PMobjectives or other criteria in the PMprocess.process.
Be very clear about the relativeBe very clear about the relativeimportance of each performanceimportance of each performance
componentbeing measuredcomponentbeing measured There is only a maximum of 100% of anThere is only a maximum of 100% of an
employees time/effort available.employees time/effort available.
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Ensure Objectives set at the beginningEnsure Objectives set at the beginning
of the review period:of the review period:
Objectives shouldbe assessed moreObjectives shouldbe assessed morethan just once a year:than just once a year:
What gets measured gets done!What gets measured gets done!
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Performance AppraisalPerformance Appraisal
Key ComponentsKey Components Colleague/Client FeedbackColleague/Client Feedback
Employee Accomplishments SummaryEmployee Accomplishments Summary
Review of Goals andAccomplishmentsReview of Goals andAccomplishments Performance Feedback andAppraisal MeetingPerformance Feedback andAppraisal Meeting
Goal Setting for upcoming yearGoal Setting for upcoming year
Development and Learning PlanDevelopment and Learning Plan
Overall Performance SummaryOverall Performance Summary
Merit RecommendationsMerit Recommendations
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Appraisal Documentation ForAnAppraisal Documentation ForAn
Employee Must Be:Employee Must Be:
Consistent: use same standards for people inConsistent: use same standards for people inthethe same jobsame job
Personalized: use each employees progressPersonalized: use each employees progresstoward individual goalstoward individual goals
Measurable: use numbers to documentMeasurable: use numbers to documentaccomplishments wherever possibleaccomplishments wherever possible
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Use The SMARRT Criteria ForUse The SMARRT Criteria For
Setting Goals:Setting Goals:
Specific:Specific: so the employee knowsso the employee knows
exactly what is expectedexactly what is expected
Measurable:Measurable: so the employee knowsso the employee knowswhen the goal is achievedwhen the goal is achieved
Achievable:Achievable: accomplished with effortaccomplished with effort
and/or skilland/or skill
Realistic:Realistic: doable within reasondoable within reason
Results oriented:Results oriented: focus on endfocus on end--resultresult
Time bound:Time bound: identify deadlinesidentify deadlines
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Giving Feedback: The BasicsGiving Feedback: The Basics
CriticismCriticism is subjective and judgmentalis subjective and judgmental
FeedbackFeedbackis objective and evaluativeis objective and evaluative the goal is tothe goal is to
help people learn and improve their performancehelp people learn and improve their performance Positive feedback is just as important for success asPositive feedback is just as important for success as
developmental feedbackdevelopmental feedback
Positive feedback should be given in the same mannerPositive feedback should be given in the same manneras developmental feedback:as developmental feedback: FrequentlyFrequently
SpecificSpecific
Based on performance examplesBased on performance examples
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EPM Formula for Developmental FeedbackEPM Formula for Developmental Feedback
EEmpathizempathize try to see the problem from the othertry to see the problem from the otherpersons perspective.persons perspective.
PPinpoint Problemsinpoint Problems give very specific examples ofgive very specific examples of
whats wrong and the specific behaviours you arewhats wrong and the specific behaviours you areasking for.asking for.
MMove Forward to Solutionsove Forward to Solutions open a discussionopen a discussionabout how to solve the problem.about how to solve the problem.
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An example.An example.
EE Jane, I realize that the end of the month is a veryJane, I realize that the end of the month is a very
busy time.busy time.
PP For the last two months, I havent received theFor the last two months, I havent received the
attendance reports until the tenth of the month.attendance reports until the tenth of the month.
MM Its essential that I receive the reports by the fifthIts essential that I receive the reports by the fifth
of the month. Is there a system we can develop forof the month. Is there a system we can develop for
ensuring that I get the reports on time?... OR Can youensuring that I get the reports on time?... OR Can you
suggest a system for ensuring that I get the reports onsuggest a system for ensuring that I get the reports on
time?time?
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Giving Feedbackin the Performance AppraisalGiving Feedbackin the Performance Appraisal
Listen 60Listen 60--70% of the time.70% of the time.
Use feedback to inform, not to adviseUse feedback to inform, not to advise let themlet themdecide how to do it.decide how to do it.
Ask openAsk open--ended questions about how they would likeended questions about how they would liketo improve over the next year.to improve over the next year.
Agree on mutual goals.Agree on mutual goals.
Keep the feedback process supportive, notKeep the feedback process supportive, not
threatening.threatening. Be willing to accept feedback tooBe willing to accept feedback too How can I bestHow can I best
support you in these goalssupport you in these goals
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Receiving FeedbackReceiving Feedback
4A Formula4A Formula
AAnticipate a learning experiencenticipate a learning experience what can I learnwhat can I learnfrom this?from this?
AAsk questionssk questions How could I have done this better?How could I have done this better?Help your manager to be specific about what he/sheHelp your manager to be specific about what he/shewants from you in the future.wants from you in the future.
AAgree with somethinggree with something find something to agree withfind something to agree with
to establish common ground.to establish common ground. AAnalyzenalyze consider the feedback and determine howconsider the feedback and determine how
to move forward to a solution.to move forward to a solution.
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EVALUATION OF SALESPEOPLES PERFORMANCEEVALUATION OF SALESPEOPLES PERFORMANCE
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PERFORMANCEAPPRAISALS
WHATARETHEY?
THEPURPOSEANDIMPORTANCEOF
PERFORMANCEAPPRAISALS
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Numerous specific reasons for
performance appraisals exist:
Compensation
Development Feedback
Goals
Legal compliance
Motivation
Penalties
Personnel Planning
Promotion
Training
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FIGURE 1 THE PERFORMANCE APPRAISALS INFLUENCE ON SALES
PERSONNEL MOTIVATION, BEHAVIOR, AND PERFORMANCE
Motivation
to WorkEffort
Performance
Level
Performance
Appraisal
RewardsEquity
DeterminationSatisfaction
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The performance level a salesperson attains
results from a combination of the
individuals effort and ability.Ability, inturn, reflects the individuals skills,
training, information, and talents.
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After determining the equity of and
satisfaction from the rewards resulting
from the appraisal, the individual again
asks these four questions:
1. What is the probability of success?
2. Will I be rewarded for success?
3. Are the rewards worth it?
4. Are the rewards fair?
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FIGURE 16.2 THE SALESPERSON PERFORMANCE APPRAISAL SYSTEM
WITH ITS NUMEROUS PARTS, PROCESSES, AND PROCEDURES
Job Analysis
Dimensions
Job
Description
Job
Specifications
Job
Requirements
Performance
CriteriaImplementing
Planning
Evaluating
Purpose of
Performance
Evaluation
Evaluative
Com ensation
Legal
Penalties Personnel
Promotion
Develo mental
Develo ment
Feedback
Goals
Motivation
Planning Training
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WHOSHOULDEVALUATESALESPEOPLE?
The primary evaluator should be the salespersons
immediate supervisor because this person hasdirect knowledge, having actually worked with the
salesperson.
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WHENSHOULDSALESPEOPLEBE
EVALUATED?
Salespeople should be evaluated at the end of
each performance cycle.
A performance cycle is a period related to
specific product goals or job activities.
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FIGURE 3 POSSIBLE MANAGEMENT INPUT INTO THE SALESPERSONS
PERFORMANCE EVALUATION
Regional Manager
istrict
Manager
istrict
Manager
Ho e Office
ersonnel Specialist
istrict
Manager
istrict
Manager
Salesperson
Salespersons I e iate
istrict Manager
irect input perfor
ance evaluation
In
irect input perfor
ance evaluation
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ARETHEPERFORMANCECRITERIA
APPROPRIATE?
A criterion is a standard on which a judgment ordecision may be based.
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Guidelines forPerformance Criteria
Measurable
Practical
Relevant
Discriminating
Stable
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Quantitative PerformanceCriteria
1. Sales volume
a. Percentage of increase
b. Market share
c. Quotas obtained
2. Average sales calls per day
3. New customers obtained4. Gross profit by product, customer, and order size
5. Ratio of selling costs to sales
6. Sales orders
a. Daily number of orders1) Total
2) By size, customer classification, and product
b. Order to sales-call ratio
c. Goods returned
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Qualitative Performance Criteria
1. Sales Skills
a. Finding selling pointsb. Product knowledge
c. Listening skills
d. Obtaining participation
e.O
vercoming objectionsf. Closing the sale
2. Territorial management
a. Planning
b. Utilization
c. Records
d. Customer service
e. Collections
f. Follow-up
3. Personal traits
a. Attitudeb. Empathy
c. Human relations
d. Team spirit
e.Appearance
f. Motivation
g. Care of car
h. Self-improvement
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New Sales Managers
False Performance Results
Similarity Error : evaluator perceives himself
Central Tendency Errors
Managers may tend to rate all salespeople
average on all performance criteria.
Different Evaluation Standards The Halo Effect
A positive or negative aura may be associated
with an individual.
INFLUENCES ONAPERFORMANCE
APPRAISAL
SACCURACY
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RULES FORPERFOMANCE
APPRAISALS
Be Objective
Set Goals and Standards
Be Honest
Be Consistent
Use ProperDocumentation
Follow Company Policy
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CONDUCTING THEAPPRAISAL
SESSION
Possibly the most challenging part of a
managers job is effectively conducting theperformance appraisal session.
1. Both manager and salesperson should be
prepared for the interview.
2. Be positive.
3. Actually review performance.
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Possibly the most challenging part of amanagers job is effectively conducting the
performance appraisal session. continued
4. Finalize the performance evaluation.
5. Summarize the total performance evaluation.
6. Develop mutually agreed upon objectives.
7. Formalize the evaluation and objectives.
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The following are important when
reviewing performance:
An open discussion of each performance
criterion.
The salespersons discussion of performance.
The salespersons evaluation of his or herown performance.
The managers view of performance.
Mutual agreement on the performance level
that must be established. If disagreement occurs, the managers
careful explanation of why a low evaluation
was given.
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The specific evaluation of a sales forces appraisalsystem requires the examination of several aspects
of the entire system.
EVALUATETHEEVALUATIONSYSTEM
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The following questions can provide an
assessment of the specific components:
1. What does the sales force want its
performance appraisal system to do? Does the
firm have goals and objectives for the system?
2. Do procedures exist for gathering data tomeasure how well the goals and objectives are
being met?
3. Do the appraisal forms really elicit the
information to serve these goals and
objectives?
4. Are the appraisal interviews done effectively?
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Marketing Management
Custom
ers
EnvironmentalAnalysis
Corporate
Missionand
Objective
MarketingObjectives
Define Market
Segments and
Target Markets
Estimate Market
Potential and
Forecast Sales
DevelopMarketing-MixStrategies
Product
Market Entry
Price
Place and
Distribution
Promotion
FIGURE 16.6 THE RELATIONSHIP OF MARKETING TO SALES FORCE
MANAGEMENT
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Feedback
Feedback
la Sales
F rce
bjectives,
Strategies,
Tactics
efi e
R les a d
Markets f Sales F rce
stablish
rga izati al
esig
a d Structure
Staffi g
Trai i g
irecti g
Sales Frce
erf
r
a
ceA alysis
a d
valuati
Marketi g-
Mix
valuati
r duct
r
ti
rice
Cha els
C r rate
erf r ! a ce
R
A Sales
Market
ShareCust
"
#
ers
Feedback
Feedback
Sales F rce Ma age e t
FIGURE 16.6 THE RELATIONSHIP OF MARKETING TO SALES FORCE
MANAGEMENT continued
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THEBOTTOMLINE
Effective job performance is essential for organizations to
stay in business and for salespeople to keep their jobs.
Managers must be aware of the legal repercussions of
performance appraisals.
Companies must develop, relevant, discriminating, and
stable criteria.
Performance evaluations serve to reward effective
performers and penalize ineffective salespeople.
Many difficulties can be corrected if performance
evaluations are effectively conducted.
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Q U E S T I O N SQ U E S T I O N SA N S W E R SA N S W E R S