performance management model and performance management system

8/8/2019 Performance management model and Performance management system

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PFM MODEL

Maintaining interrelations is complex It depends upon various factors

1. Nature of industry

2. Its size3. Nature of leadership

4. Orgn culture

5.Environment of competitiveness


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!.Industrial environment2. Resources

Desired performance Employees perception

& attitudes Actual performance Employees behaviour &

performance


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Gap analysis Individual, Team, Orgn Cause analysis

1. Reward and compensation

2. Data and information3. Resources - Tools Environment

4. Individual copetence

5. Motives and expectations

6. Skills and knowledge

7. Ethics in behaviour and action


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HR INTERVENTIONS

1. Feedback and counseling

2. Change management

3. Team building

4. Talent MGT5. T & D

6. Reward MGT

7. Competency mapping and Learning8. Ethical performance`


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H R outcomes

1. Quality work

2. Tangible rewards

3. Future growth

4. Enabling environment & inspiration

Orgnal performance improvement

Orgnal effectiveness

Competitive advantage


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IMPORTANCE

Helps to clarify the vision, mission ,strategy and values of the orgn.

Help to improve various business process

Help to attract and retain talent Facilitates competency mapping and T&D

Assist to validate the recruitment &

selection process Help employees to attain full potential and

balance between work and personal life


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I R to Individual relations

Enables sustainable orgnal.

Competitiveness , innovation , low

employee turnover

Builds intellectual capital at all levels


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PFM SYSTEM ( PMS)

PMS is a process of linking an employee jobobjectives to the orgn.s objectives and strategy

Every system will have its objectives/

components/elements and a process Every orgn. Needs a well defined and well

established system

It ensures effective management


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PMS enables realisation of the orgn.s strategy PMS is to boost employees performance and

ultimately the productivity of the orgn.

The purpose of setting PMS is to becomebetter

It refers to a set of orgnal. Managerial, team

and individual matrics used


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ELEMENTS OF PMS

Orgnal. Objectives and strategy

1. Ultimate goal achievement

2. Competitive position

3. Comparing orgn. Strengths with changing

environment

4. Examining critical issues of the orgn.

5. Analysing opportunities of the orgn.

6. Exploring best approaches- resources

&competencies


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Assessment of orgnal. Performance

1. Identifying competencies for achieving

the best

2. Determining new and future performance

needs3. Prioritising performance improvement

measures

4. Recognizing core values of the orgn.


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Setting orgnal. Perf expectations

1. Determining required Vs desired

2. Determining the current status

3. Understanding , aligning and agreeing on perfexpectations

4. Formulating key performance indicators

5. Evolving job objectives

6. Aligning individual goals with orgnal.

Strategy


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Establishing PFM process1. Designing a frame work

2. Performance planning

3. Performance execution4. Performance monitoring

5. Performance assessment

6. Performance review


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Measuring effectiveness of PFM1. Identifying opportunities for performance

development

2. Providing performance counseling including

360 degree feedback

3. Developing reward strategy and implementing

4. Instituting PFM audit

5. Improvement in competitive position of the

orgn.


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OBJECTIVES OF PMS

To leverage performance of the orgn. To create role clarity and clarify

performance objectives

To promote high performance workculture

To encourage teamwork , a sense of

belongingness and ownership To develop employees by identifying

T&D needs


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To improve relationships through two- way

communication

To bring out the hidden potential and

capabilities of the employees

To focus more on process

Initiating, developing and implementing a

follow up action

To recognise, reward and compensateemployees achievement in a more

objective. Transparent and equitable way


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CHARACTERSTICS OF PMS

Recruitment and promotion of employees

into roles that fit their talent

Creating a supporting work environment

to develop to the fullest

A systematic measure of an employees

value to the orgn.


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GOAL SETTING THEORY

.Each one of you is physically ready. Now go there and doyour best . No one can ever ask more than that

You should strive to achieve 95% in your board exam

In the late 1960s Edwin Locke proposed that intentions to

work toward a goal is a major source of work motivation. Goals tell-what needs to be done and how much effort need

to be put.

This theory tells about the goal value.

1. Specific goals increase performance.2.difficult goals when accepted result high performance

than easy goals.


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3.Feedback leads to higher performance.

4.Specific goals------General goals

5 .Accepted goals acts as internal stimulus.

6.Generally people accept easy goals.

7.Positive feedback work better.

8.Self generated feedback is more powerful.

9.Participative goal setting and assigned goals.

10. Difficult goals --Resistance greater.11.Participative --Difficult goals will be accepted.


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The other factors influencing goal

performance:

1. Goal commitment.

2.Self efficacy-

a) Individual belief.b)Higher self efficacy-more confidence in

ability to succeed ,try hard goals andrespond to negative feedback.

c) Lower self efficacy---less effort, may giveup, negative feed back lesser effort.


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3.Task characteristics:

a)Individuel goal setting does not work equally

well on all tasks.

b) Goals have more substantial effort on

performance:Simple complex,

Learned rather than novel,

Independent rather than dependent.


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EXPECTANCY THEORY

According to this theory an employee will be

motivated to exert a high level of effort when

he or she believes that effort will lead to

A good performance appraisal (Expectancy)

That a good performance appraisal will lead to

orgnal rewards such as bonus, a salary

increase ,or a promotion (Instrumentality) That the reward will satisfy the employees

personal needs/ goal (Valence)


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It focuses on three relationships:

1.Effortperformance relationship

Believes that exerting a given amount of effort will

lead to performance.

2.Performance--- reward relationship

Believes that performing at a particular level will lead to theattainment of a desired outcome and will be rewarded.

3. Reward----personal goal relationship.

The degree to which orgnal rewards satisfy individualspersonal goals or needs and the attractiveness of those

potential rewards for the individual.

performance management model and performance management system

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