format notes (1)

7/24/2019 Format Notes (1)

1/20

COURSE NAME UNIT NAME

FORMAT FOR THE NOTES:

1. Course Code Course Title

2. Learning Obe!ti"es o# t$e Course

%. T$ese Notes !o"er &nit Nu'ber( Subtitle o#

t$e &nit

). Contents o# t$e &nit

Learning Obe!ti"es o# t$e &nit

*. +e, -enitions( +e, /ords in t$e

denitions

0. +e, Con!ets

. 3ast 4uestions on t$is unit

41 5S33&( No"6Aril 27189

42

4%

4)

4*

. 4uestions #or 3ra!ti!e 5T$eor, based(

ali!ation based9

;. Learning Resour!es

Case Stud,

Na'e o# T$e Fa!ult, &N


2/20


Performance management is the continuous process of improving

performance by setting iniviua! an team goa!s "hich are a!igne to the

strategic goa!s of the organi#ation$ p!anning performance to achieve the

goa!s$ revie"ing an assessing progress$ an eve!oping the %no"!ege$

s%i!!s an abi!ities of peop!e&

'ere are some other e(nitions)

* +Performance management is a continuous process of ientifying$

measuring an eve!oping the performance of iniviua!s an teams

Performance Management ,unamenta!s an a!igning performance "ith the

strategic goa!s of the organi#ation&-

* +Performance management is the system through "hich organi#ations set

"or% goa!s$ etermine performance stanars$ assign an eva!uate "or%$

provie performance feebac%$ etermine trainingan eve!opment neesan istribute re"ars&-

* +Performance management is a broa set of activities aime at improving

emp!oyee performance&-

* +Performance management is the %ey process through "hich "or% gets

one& It-s ho" organi#ations communicate e.pectations an rive behaviour

to achieve important goa!s/ it-s a!so about ho" organi#ations ientify

ine0ective performers for eve!opment programmes or other personne!

actions&-

* +Performance management is regare as a continuous$ future1orientate

an participative system/ as an ongoing cyc!e of criteria setting$ monitoring$

informa! feebac% from supervisors an peers$ forma! mu!ti1source

assessment$ iagnosis an revie"$ action1p!anning an eve!opmenta!

resourcing&-

Performance management is managing the business& 2ine managers are

there to manage performance an performance management he!ps them to

o this 3 it is a natura! process of management& It is not an 'R1irecte

annua! ritua!& An it is not simp!y a process of appraising peop!e once a

year&Performance management is a continuous process "hi!st traitiona!

performance appraisa! tene to be 4ust an annua! event&Performance

management is a po"erfu! means of ensuring that the organi#ation-s

strategic goa!s are achieve& It contributes to the achievement of cu!ture

change an it is integrate "ith other %ey 'R activities$ especia!!y human

capita! management$ ta!ent management$ !earning an eve!opment an



3/20


re"ar management& Thus performance management he!ps to achieve

hori#onta! integration an the +bun!ing- of 'R practices so that they are

inter1re!ate an therefore comp!ement an reinforce each other&

Performance management can a!so p!ay an important part in increasing

!eve!s of emp!oyee engagement&

E"olution o# 3er#or'an!e Manage'ent 3ro!ess

The term performance management gaine its importance from the times

"hen the competitive pressures in the mar%et p!ace starte rising an the

organi#ations fe!t the nee of introucing a comprehensive performance

management process into their system for improving the overa!! prouctivity

an performance e0ectiveness&

The performance management process evo!ve in severa! phases&

First 3$ase:The origin of performance management can be trace in the

ear!y 5678-s "hen the performance appraisa! systems "ere in practice&

9uring this perio$ Annua! Con(entia! Reports :ACR-s; "hich "as a!so

%no"n as Emp!oyee service Recors "ere maintaine for contro!!ing the

behaviors of the emp!oyees an these reports provie substantia!

information on the performance of the emp!oyees& Any negative comment or

a remar% in the ESR or ACR use to averse!y a0ect the prospects of career

gro"th of an emp!oyee& The assessments "ere usua!!y one for ten traits on

a (ve or a ten point rating sca!e basis& These traits "ere 4ob %no"!ege$

sincerity$ ynamism$ punctua!ity$ !eaership$ !oya!ty$ etc& The remar%s ofthese reports "ere never communicate to the emp!oyees an strict

con(entia!ity "as maintaine in the entire process& The emp!oyees use to

remain in abso!ute ar%ness ue to the absence of a transparent mechanism

of feebac% an communication& This system ha su0ere from many

ra"bac%s&

Se!ond 3$ase:This phase continue from !ate 5678-s ti!! ear!y 56>?&



4/20


T$ird 3$ase) In this phase the term ACR "as rep!ace by performance

appraisa!& One of the %ey changes that "ere introuce in this stage "as that

the emp!oyees "ere permitte to escribe their accomp!ishments in the

con(entia! performance reports& The emp!oyees "ere a!!o"e to escribe

their accomp!ishments in the se!f appraisa! forms in the en of a year&

@esies inc!usion of the traits in the rating sca!e$ severa! ne" components

"ere consiere by many organi#ations "hich cou! measure the

prouctivity an performance of an emp!oyee in uanti(ab!e terms such as

targets achieve$ etc& Certain organi#ations a!so introuce a ne" section on

training nees in the appraisa! form& 'o"ever$ the con(entia!ity e!ement

"as sti!! being maintaine an the entire process continue to be contro!

oriente instea of being eve!opment oriente&

Fourt$ 3$ase:This phase starte in mi 56


5/20


Ientify the parameters of performance an stating them very c!ear!y&

Setting Performance Stanars

P!anning in Participative ays "here appropriate$ performance of a!!

constituents/

Ientify competencies an competency gaps that contributeDhiner to

performance&

P!anning performance eve!opment activities

Creating o"nership&

Recognising an promoting performance Cu!ture&

Con!erns o# 3er#or'an!e Manage'ent

An e0ective performance management process sets the founation a!igning

the iniviua!-s e0orts "ith the organi#ation-s goa!s&

@y !in%ing iniviua! emp!oyee "or% e0orts "ith the organi#ation-smission an ob4ectives$ the emp!oyee an the organi#ation

unerstans ho" the 4ob is contributingDcontributes in the !ong run&

@y focusing attention on setting c!ear performance

e.pectations:resu!ts actionsB behaviours;$it he!ps emp!oyees %no"

"hat nees to be one to be successfu! on the 4ob&

Through the use of ob4ectives$stanars$performance imensions an

other measures it focusses e0ort&This he!ps the epartment get one

"hat nees to be one an provies a so!i rationa!e for e!iminating

"or% that is no !onger usefu!&

Through regu!ar chec% in iscussions$"hich inc!ue status upates$

coaching an feebac% it promotes Fe.ibi!ity$ a!!o"ing emp!oyer an

the emp!oyee to ientify prob!ems ear!y an change the course of a

pro4ect or "or% assignment&



6/20


@y emphasi#ing that an annua! revie" shou! be a summary of the

conversations he! bet"een the emp!oyer an emp!oyee uring the

entire cyc!e$ it shifts the focus a"ay from performance as Gan annua!

eventH to performance as an on going process&

Histori!al -e"elo'ents in 3er#or'an!e Manage'ent

In a forma! sense$performance appraisa! of an iniviua! began in the ei

ynasty:A&9& 7517J; in china$"here an Imperia! Rater appraisa! the

performance of members of the o=cia! ,ami!y&In the 5K88s$ the Ne"yor% city

civi! service in USA introuce a forma! appraisa! program short!y before ,irst

or! ar&'o"ever$ forma! appraisa! of emp!oyee-s performance is be!ieve

to have been starte for the ,irst time uring the ,irst "or! "ar "hen at the

instance of a!ter 9i!!scott$ the US Army aopte Gman to manH ratingsystem for eva!uating mi!itary personne!&This ear!y emp!oyee-s appraisa!

system "as ca!!e Gmerit ratingH&,rom the army this concept entere the

business (e! an "as restricte to hour!y1pai "or%ers&9uring 568-s

re!ationa! "age structures for hour!y1pai "or%ers "ere aopte in inustria!

units an each "or%er "as use to be rate in comparison to others for

etermining "age rates&In the 56L8-s behavioura! methos "ere eve!ope

using a motivationa! approach& These inc!ue behavioura! anchore rating

sca!es :@ARS;$ @ehavioura! observation sca!es :@os;$@ehavioura! eva!uation

sca!es:@ES;$Critica! incient an ob Simu!ation&A!! these 4ugements "ere

use to etermine the speci(c !eve!s of performance criteria to speci(c

issues such as customer service an rate in factors such as Ge.ce!!entH$

GaverageH$ Gnee to improveH or GpoorH&Post 56LJ eve!ope into the

resu!ts1oriente approaches an !e to the eve!opment of management by

ob4ectives&

In the 5678-s the eve!opment of se!f appraisa! by iscussion !e to speci(c

time an opportunity for the appraise to eva!uate their performance

reFective!y in the iscussion an the intervie" eve!ope into a conversation

on a range of topics that the appraise nee to iscuss in the intervie"&In the

5668-s >78 egree appraisa! eve!ope$"here information "as sought from a

"ier range of sources an the feebac% "as no !onger epenant on the

manager suborinate po"er re!ationship but inc!uegroup-s appraising the

performance of !ine managers an peer feebac% from peer groups on

iniviua! performance&

3ERFORMANCE MANA=EMENT >S. 3ERFORMANCE A33RA


7/20


The istinctive feature of performance management an performance

appraisa! emerge so far is hence represente by their i0erent nature) PA is

seen as a system$ "hereas PM is seen as a process& Moreover$ "hi!st PA is

episoic$ usua!!y carrie out once a year in occasion of the annua!

performance revie" meeting$ PM is intene to estab!ish a constant !in%

bet"een managers an iniviua!s& PM hence actua!!y aims at bui!ing

bet"een manager an emp!oyees a re!ationship base on mutua! respect$

trust an unerstaning/ "hereas PA is base on a top1o"n re!ationship&

Appraisa! is carrie out by managers$ usua!!y annua!!y$ "hereas the esign of

the system an the ocumentation habitua!!y (!!e uring the performance

revie" meetings he! by managers is prepare by the 'R ,unction& Since PA

is usua!!y associate "ith pay$ this is the occasion in "hich managers are

suppose to p!ay the ro!e of 4uge$ accounting for the process to be eeme

as a top1o"n process&

Performance management$ by contrast$ is consiere as a management

process enab!ing managers to constant!y stay in contact "ith iniviua!s in

orer to c!arify an eventua!!y moify$ accoring to the business an

organisationa! eve!opment nees an reuirements$ their mutua!

e.pectations& As such PM is an has to be intene as a means enab!ing

managers to p!ay the ro!e of their reports coach an guie$ rather than of

4uge& PM hence essentia!!y represents a for"ar1!oo%ing process$ in contrast

to PA "hich basica!!y represents a retrospective1base system&

hi!st PM is inee intene to estab!ish an nurture a continuous

re!ationship bet"een manager an iniviua!s$ PA is base on forms$ "hose

!ayout is esigne an eve!ope by the 'R function$ "hich more often than

not are estine to be forgotten in some remote organisationa!

archive&9i0erent!y from PA$ PM u!timate!y aims at combining iniviua! an

organisation "ants an ob4ectives an at (ning a common point "here

these t"o i0erent nees can meet an be met&

The i0erence bet"een PM B PA is as fo!!o"s&



8/20


3ERFORMANCE MANA=EMENT >RS H&MAN RESO&RCE

MANA=EMENT

'uman Resource ecisions estab!ish competency stanars for each 4obro!e& Then$ performance management systems measure emp!oyee

achievement re!ative to that moe!& Managers use performance

management systems to assess an re"ar the behavior of their emp!oyees&

Aitiona!!y$ a human resource management function han!es the recruiting$

intervie"ing$ hiring an eve!opment of a!! personne! reuire to ensure your

company can achieve its goa!s& The re!ationship bet"een performance

management an strategic p!anning !in%s ay1to1ay operations "ith the

company-s vision&

Performance Management

Performance Management inc!ues activities re!ate to human

resource "hich ensure that goa!s are consistent!y being met in an

e0ective an e=cient manner&



9/20


heras 'uman resource Management invo!ves a!! management ecisions

an practices that irect!y a0ect or inFuence the peop!e$or human resources

"ho "or% for the organi#ation&

Performance Management is concerne "ith +performance centric

issues- in management& hereas 'uman resource management isconcerne "ith peop!e centric issues in management&

The performance management is a part of 'RM&'RM inc!ues PM$an

various other things !i%e TB9$Career P!anning an so on&

Performance management is o"ne by !ine managers$'RM O"ne by

'R eppt&

The purpose of PM is to meet the performance reuirement of the

organi#ation&the purpose of 'RM is to manage B eve!op the humancapita! of the organi#ation&

Pm !oo%s into present time "hereas 'RM !oo%s into present an future

both&

Ad"antages and disad"antages o# er#or'an!e 'anage'ent s,ste's

The avantages of a "e!!1run performance management system versus a poor!y

conceptua!ise an manage performance management system are summarise in

the tab!e be!o"

TA@2E ) E,,ECTIE S INE,,ECTIE PER,ORMANCE MANAEMENT SSTEMS

Avantages of an e0ective performance

management system

Imp!ications of a poor!y run

performance management system

Q Managers gain insights into their

emp!oyees/

Q Process is perceive as unfair an

iscriminatory !eaing to increase

emp!oyee turnover/

Q Increase c!arity aroun 4ob escriptions

an tas% criteria/

Q Inaccurate information !eaing to

mis!eaing eva!uations/

Q Motivation to perform is increase

especia!!y "hen !in%e to eve!opment

p!anning/

Q Poor feebac% !eaing to !o"ering

of se!f1esteem/

Q Opportunities to increase se!f1esteem are

create/

Q Poor esign an ine=ciencies

!eaing to "aste time an money/

Q Emp!oyee se!f1insight an o"n Q 9e(cient systems !eaing to



10/20


eve!opment opportunities are increase/ amage re!ationships/ bet"een

management an emp!oyees :often

permanent!y;/

Q Opportunities for fairer an more

appropriate aministrative actions are

increase/

Q Perceive mismatch bet"een

increase performance an

re"arDrecognition !eaing to

ecrease motivation to perform/

Q Organisationa! goa!s an ivisiona!

ob4ectives are mae c!ear/

Q Unrea!istic emans !eaing to

emp!oyee burnout an 4ob

issatisfaction/

Q Increase !i%e!ihoo of improvements in

range an epth of emp!oyee competences/

Q Unfair appraisa!s increasing the

ris% of !itigation/

Q Emp!oyee misconuct is minimise :share

unerstaning of e.pectations;/

Q Un4usti(e emans on managers

an emp!oyees time or resources/

Q @etter protection from !a"suits/ Q Unfair stanars an ratings in

genera! !eaing to !oss of con(ence

in managements abi!ity to

imp!ement the system/

Q More accurate istinctions bet"een goo

an poor performers/

Q The rep!acement of organisationa!

stanars "ith persona! va!ues$

biases an favouritism/ an

Q Organisationa! change is faci!itate Q Poor communication especia!!y in

terms "hat the ratings are use for

Q Emp!oyee retention is increase as a resu!t

of increase motivation an commitment/

Q Emp!oyees are encourage to voice their

suggestions "hich creates improve

%no"!ege sharing an innovation/

Q Emp!oyee engagement is enhance

:empo"erment an passion;&



11/20


3ROCESSES FOR MANA=


12/20


performance management system must provie the cata!yst for change$ ie

to behaviours an resu!ts that are va!ue an re"are in the organisation&

This$ in turn$ "ou! !ea emp!oyees to unerstan the organisations cu!ture

an "hat it va!ues&

Aministrative purposes inc!ue a!! those processes that re!ate toremuneration$ re"ars$promotion$ retention$ or termination& The !in% toaministrative processes is to ensure fairness :eg avoi favouritism; anevae unethica! practices such as corruption an bribery& Itis fue!!e by !egis!ative emans an ethica! consierations&

At the heart of a performance management system is !o''uni!ation 3 itte!!s emp!oyees ho"they are oing an ho" they can improve& The e.pectations are set by the

4ob escription anprioritise in terms of the strategic ob4ectives&

Aguinis :85>; term de"elo'ental urose? refers to the combinationof feebac% ancoaching by using a cu!ture of support :non1threatening; that is focuse onhe!ping emp!oyees to interpret the feebac% both in the conte.t of their 4obs:ie organisationa! performance; an in terms of their career paths :ie short1an !ong1term;&

Organisational 'aintenan!e refers to the p!anning e0orts reuire to

ensure that theorganisation has the right peop!e$ in the right p!ace$ oing the right things$ atthe right time& This inc!ues the %no"!ege an s%i!!s reuire in terms of thestrategic ob4ectives an the processes to nurture these :ie sustainecompetitive avantage erives from interna! resources an capabi!ities;& Ane0ective performance management system "i!! a!ert management totraining initiatives& Organisationa! behaviour "i!!$ "here necessary$ changereuirements&

-o!u'entation purpose refers to ata co!!ection that informs othersystems& ,or e.amp!e$

performance ata can faci!itate ecisions aroun the se!ection of ne"prouction systems$ or ne" emp!oyment se!ection criteria& The performancemanagement system propose by Aguinis :85>; emonstrates the nee tostep bac% an critica!!y reFect on the reasons "hy a performancemanagement system is reuire an ho" each e!ement contributes to the"ho!e&



13/20


Essen!e and


14/20


p!anning/ ta!ent management an succession p!anning/ bugeting/

remuneration strategy an variab!e pay/


15/20


PER,ORMANCE P2ANNIN

Performance p!anning is use to provie a structure approach to the

attainment of the esire !eve! of performance for both iniviua!s an

teams&Performance P!ans are create for team an its members&

Performance p!anning shou! occur as)

An Initia! Performance P!an

A Performance Improvement P!an

Initia! Performance P!an)

An Initia! Performance P!an is a etai!e p!an for either an iniviua! or

a team an is use to)



16/20


Ientify the esire performance !eve!s

Ientify ho" these performance !eve!s "i!! be achieve

Provie guiance an irection

Measure progress to"ars the esire performance !eve!s

A!though there are no strict ru!es as to the format of a Performance

P!an they norma!!y contain the fo!!o"ing information)

Speci(c goa!s for eve!opment

Performance measures

Actions reuire to achieve goa!s

An inication of ho" !ong goa!s "i!! ta%e to achieve

Iniviua! an team Performance P!ans shou! a!ign "ith the

organisations overa!! ob4ectives& This can be achieve by a!igning the)

Performance P!ans "ith the Team Operationa! P!an

Team Operationa! P!an "ith the Team Purpose



17/20


Team Purpose "ith the organisations Strategic P!an

Performance P!ans might inc!ue the fo!!o"ing types of goa!s)

ey Performance Inicators :PIs;

oa!s to improve competency !eve!s

Team bui!ing goa!s

henever the performance !eve!s of an iniviua! or team are foun to

be be!o" the !eve!s inicate in the Performance P!an then a p!anning

process to improve performance shou! be unerta%en&

Performance Improvement P!an)

Inaeuate or poor performance can have a number of negativeimpacts on iniviua!s an teams& As a Team 2eaer you may

e.perience ecreases in team prouctivity an cohesiveness an an

increase in conFict an issatisfaction&



18/20


hen a performance e(ciency is note$ it shou! be ea!t "ith as

uic%!y as possib!e& The fo!!o"ing steps out!ine a process for han!ing

poor performance&

Co!!ate the information regaring poor performance

This information may be in the form of feebac%$ customer comp!aints$

error rates$ statistics anDor informa! observation&

Meet "ith the re!evant team member:s; an iscuss the issues

9uring this meeting you "i!! nee to iscuss the e(ciency or

inappropriate behaviour an ientify the causes&

Inaeuate performance oes not a!"ays inicate a prob!em on the

part of the iniviua!& ey Performance Inicators :PIs; may be

unrea!istic or the resources reuire to achieve the performance

stanar may not be avai!ab!e&

9eve!op a Performance Improvement P!an

A Performance Improvement P!an provies an out!ine of "hat is

reuire by both the iniviua! an their Manager&

ou may (n that your company or organisation has an e.isting

process for imp!ementing Performance Improvement P!ans& ou shou!

consu!t "ith your 'uman Resources epartment or your Manager to

etermine if this is the case&



19/20


,o!!o" up

Ensure that you monitor$ fo!!o" up an eva!uate the performance

improvement as set out in the p!an&

A Performance Improvement P!an shou! c!ear!y convey)

The area of performance that reuires improvement or eve!opment

The action:s; to be ta%en

Any parties reuire to assist in the achievement of the set actions

The timeframe for achieving each action

'o" performance improvement "i!! be revie"e

hen performance improvement "i!! be eva!uate

Performance Improvement P!ans can be imp!emente "hen)

A forma! Performance Appraisa! inicates performance improvement is

necessary

Informa! feebac%$ observations an statistics inicate that

performance is not satisfactory



20/20


ou nee to eva!uate the progress of a ne" initiative$ for e.amp!e a

ne" system or sa!es metho

A p!an is reuire as part of an iniviua! eve!opment p!an to preparea team member for promotion or the attainment of a ne" s%i!! or

competency


format notes (1)

Documents