7 MANAGING PEOPLE Performance Management MATHISHA HEWAVITHARANA Managing Human Resources MBA (Col),BBA Sp.Mktng (Col), PPG DIP. In Mktng (UK), MCIM (UK), Chartered Marketer 14 th edition (UK), Practicing Marketer (SL), ACMA, CGMA CIMA (UK), DBF (IBSL), AIB (IBSL), Bohlander • Snell MSLIM(SL), PowerPoint Presentation by Charlie Cook Head of Marketing - Siyapatha Finance PLC The University of West Alabama
Chapter Contents Summarized Chapter Contents: 1. What is Performance Management 2. Performance Appraisal Programme 3. Performance Appraisal Methods 4. Performance Appraisal Interviews 2 – 2
Chapter Contents Summarized Chapter Contents: 1. What is Performance Management 2. Performance Appraisal Programme 3. Performance Appraisal Methods 4. Performance Appraisal Interviews 2 – 3
Performance Management What is Performance Management: • Performance management is a Systematic Process for improving individual, team and organizational performance. • Performance management is a process that provides both the manager and the employee (the person being supervised) the chance to determine the shared goals that relates to the overall goals of the company by looking into employee performance. • Performance management is a means of getting better results by managing performance within an agreed framework of goals, standards and competence requirements. 2 – 4
Chapter Contents Summarized Chapter Contents: 1. What is Performance Management 2. Performance Appraisal Programme 3. Performance Appraisal Methods 4. Performance Appraisal Interviews 2 – 5
Performance Management What is a Performance Appraisal Program: • "Performance appraisal is systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development". • "Performance appraisal is a formal, structured system of measuring and evaluating an employees job, related behavior and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organization, and society all benefit." • The main objective of performance appraisals is to measure and improve the performance of employees and increase their future potential and value to the company. 2 – 6
Performance Management Steps in the Performance Management Process: • Setting goals to Align with Corporate Direction • Setting Standards & Expectation to Suite organizational & Individual Goals • On-going Performance Feedback • Performance Appraisal • Performance Review Session • Related Decision Making 2 – 7
Performance Management Performance Appraisal Programs: • In Performance Appraisal, All of an organizations individuals are reviewed at the same time of the year . • Performance appraisal is a more limited approach which involves managers making top-down assessments and rating the performance of their subordinates at an annual performance appraisal meeting. 2 – 8
Performance Management Purposes of Performance Appraisal Programmes: • Performance Appraisal thus is a systematic and objective way of judging the relative worth of ability of an employee in performing his task. • Performance appraisal helps to identify those who are performing their assigned tasks well and those who are not and the reasons for such performance. 2 – 9
Performance Management Purposes of Performance Appraisal Programmes: • Overall purposes of a Performance Appraisal can be divided in to two categories; DEVELOPMENT PURPOSE ADMINISTRATIVE PURPOSE To Provide performance Feedback To Promote employees To Identify Individual Strengths & To determine Transfers and Employee Weaknesses Movements To Recognize Individual Performance Identify Performance Problems & to achievements rectify them To Identify Individual Training Needs To Make Retention, Termination & Layoff Decisions To Determine Organizational training To Evaluate Training Programmes Needs To Reinforce Authority Structure To Make Rewarding & Compensation Decisions 2 – 10
Performance Management Reasons for the failure of Performance Appraisals: Inadequate Preparation for the Process Lack of Proper Communication at the Beginning of the Period Lack of real Understanding about the subordinates Performance Personnel Bias Lack of a proper performance evaluation mechanism Not creating an open two way communication Poor Feedback Monitoring Mechanism Lack of Awareness & Communication 2 – 11
Performance Management Developing an Effective Performance Appraisal Programme: Setting Performance standards? - Strategic Relevance Standards of an appraisal must be related to the strategic objectives of the organization - Criterion Whether it captures the entire range of employee performance - Criterion Contamination Whether factors are beyond the control of the employee - Reliability Stability or Consistency of standards Complying with the Law 2 – 12
Performance Management Developing an Effective Performance Appraisal Programme: Appraising the employee Performance - Manager / Supervisor - Self-Appraisal - Subordinate Appraisal - Peer appraisal - Team Appraisal - Customer Appraisal - 360 o Appraisal (Subordinates/ Peers/ Supervisors/ Customers) Training Appraisers - Establishing an Appraisal Plan - Eliminating Rater error - Feedback training 2 – 13
Chapter Contents Summarized Chapter Contents: 1. What is Performance Management 2. Performance Appraisal Programme 3. Performance Appraisal Methods 4. Performance Appraisal Interviews 2 – 14
Performance Management Performance Appraisal Methods: Trait Methods These are designed to measure the extent to which an employee possesses certain characteristics (Creativity, initiative, Leadership etc..) that are recognized as important for the job. - Graphic Rating Scales Each employee is rated according to a scale of characteristics - Mixed Standard Scales Based on comparison with a standard ( better / Equal / Worse) 2 – 15
Performance Management Performance Appraisal Methods: - Forced Choice Method This requires the Rater to choose from statements designed to distinguish between successful and unsuccessful performance - Essay Method This requires the Rater to compose a statement describing employee behavior 2 – 16
Performance Management Performance Appraisal Methods: Behavioral Method An Unusual event that denotes superior or - Critical Incident Method inferior employee performance in some part of the job. A List of behaviors that the rater believes as - Behavioral Checklist method characteristics of employee performance is checked. - Behavior Observation Scale In this performance appraisal, it measures the frequency of observed behavior. BOS is designed to measure how frequently each of the behavior has been observed. 2 – 17
Performance Management Performance Appraisal Methods: Behavioral Method - Behaviorally Anchored Rating Scales (BARS) 2 – 18
Performance Management Performance Appraisal Methods: Results Methods - Productivity Measures - Management by Objective (MBO) - Balance Scorecard 2 – 19
Chapter Contents Summarized Chapter Contents: 1. What is Performance Management 2. Performance Appraisal Programme 3. Performance Appraisal Methods 4. Performance Appraisal Interviews 2 – 20
Performance Management Performance Appraisal Interviews: Performance Appraisal Interviews can be in Three Types ; Tell & Sell Interview Persuading an employee to change in a prescribed manner Strongly communicating the Strengths and Tell & Listen Interview Weaknesses of the employee at first and then will be listened to the employee to know how he feels. Problem Solving Interview Listening, Accepting & Responding to employee feelings. 2 – 21
Performance Management Performance Appraisal Interviews: General Guidelines of Conducting Appraisal Interviews; Ask for a self Assessment Invite Participation Express Appreciation Minimize Criticism Change the Behavior not the Person Focus on Solving Problems Be Supportive Establish Goals Follow up Day to Day 2 – 22
THANK YOU ! 0773 – 29 20 29 mathihewa@yahoo.com Managing Human Resources 14 th edition Bohlander • Snell PowerPoint Presentation by Charlie Cook The University of West Alabama
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