Performance Management 101 Guide by Bob Panic

8/13/2019 Performance Management 101 Guide by Bob Panic

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Performance Management Introduction - 101 guideseries - by Bob Panic the Satyam Whitepaper

Definition:

Performance management is the process of creating a work environment in which people areempowered to perform to the best of their abilities.

Performance management is a holistic system that begins when a job or function is defined. It endswhen an employee leaves the organisation.

Performance measurement is also the process of assessing progress toward achieving predeterminedgoals. Performance managementis building on that process, adding the relevant communication and

action on the progress achieved against these predetermined goals.

In Organisational Development (OD, performancecan be thought of as !ctual "esults vs Desired"esults.

!ny discrepancy, where !ctual is less than Desired, could constitute the performance improvement#one. Performance management and improvement can be thought of as a cycle$

%. Performance planningwhere goals and objectives are established.&. Performance coachingwhere a manager intervenes to give feedback and adjust performance

3. Performance appraisalwhere individual performance is formally documented and feedbackdelivered

! performance problem is any gap between Desired "esults and !ctual "esults. Performanceimprovementis any effort targeted at closing the gap between !ctual "esults and Desired "esults.

In my opinion, performance management helps organi#ations achieve their strategic goals.

'he main purpose of performance management is to link individual objectives and organi#ationalobjectives and bring about that individuals obey important worth for enterprise.

!dditionally, performance management tries to develop skills of people to achieve their capability tosatisfy their own personal goals and aspirations.
http://en.wikipedia.org/wiki/Organizational_developmenthttp://en.wikipedia.org/wiki/Organizational_developmenthttp://en.wikipedia.org/wiki/Organizational_developmenthttp://en.wikipedia.org/wiki/Performance_appraisalhttp://en.wikipedia.org/wiki/Performance_problemhttp://en.wikipedia.org/wiki/Performance_improvementhttp://en.wikipedia.org/wiki/Performance_improvementhttp://en.wikipedia.org/wiki/Organizational_developmenthttp://en.wikipedia.org/wiki/Performance_appraisalhttp://en.wikipedia.org/wiki/Performance_problemhttp://en.wikipedia.org/wiki/Performance_improvementhttp://en.wikipedia.org/wiki/Performance_improvement


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powered by: www.bobpanic.com! performance management system includes the following actions$

Why measure performance?

Developclear jobdescription

Provide on-going

coaching andfeedback

Conductquarterly

performancedevelopmentdiscussions

Provideeffective

orientation,education,

and training

Agree onrole

requirementsand personal

goals

Selectionprocess to

get the rightpeople

Continualimprovement


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powered by: www.bobpanic.com hat you cannot measure you cannot improve.) If you cannot improve you cannot grow.) *easurement helps in objectively differentiating between performers and non+performers.) Pay for performance is possible only through metrics.

About the system

'he employer and employee jointly set and agree the ey "esult !reas ("!s and assign

mutually agreed weighs e-pressed as a percentage. 'he !chievement of the "! is also

e-pressed as a percentage.

imple mathematical relationship between set weight and accomplishment gives a final

numerical score on "!s.

'o evaluate all management personnel on company values and leadership attributes a new

section has been added entitled /Values in Action0

What is a !"A

! "! refers to a target that needs to be achieved by the employee in a given time.

"!s are the set of performance e-pectations from the employee.

'he focus is on tangible outputs. 1owever this does not mean that tasks that have a 2ualitative

output cannot form a "!.

"!s are not job descriptions or routine activities.

!"A setting process


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powered by: www.bobpanic.com ey "esult !reas for an employee emerge from the organi#ational objectives, departmental

goals and work unit goals. 'his facilitates congruency between individual and departmental

goals.

'he process of setting "!s is a 'OP+DO3 approach

Setting !"A in case of functiona# reporting re#ationship

4unctional reporting cases will re2uire input from the functional superior in setting "!s for the

employee.

'he employer, the employee and the functional superior will have to mutually agree upon the

"!s for the employee.

In case of a disagreement, it will be the functional superior5s responsibility to convince the

administrative superior to reach an agreement on the "!s and 6ommunicate the same to

the employee.

$ha##enges

*otivational workforce practices do not work effectively in an organisation that lacks an objectiveperformance measurement system.

hile employed at atyam as 'ransformation and 6hange *anager for the implementation of !P7"P systems (&889 to &88:, I observed gaps in the effective discussion of employee5s IndividualDevelopment Plans (IDPs and regular feedback on ey "esult !reas ("!s was lacking. Individualsfelt a lack of clarity in their roles and the eligibility criteria for career growth.

'o address the employee concerns, I enhanced atyam5s performance management system, toprovide the employees (including my growing team members with greater opportunities to develop theircareer potential and align their performance with the organisation5s objectives.

Methodo#ogy

*y answer was simple and I established the PD6! process at atyam for all global employees startingwith my !P team as a Proof of 6oncept (PO6. I believe that employee performance management


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powered by: www.bobpanic.comincludes planning work and setting e-pectations, developing the capacity to perform, continuouslymonitoring performance, and evaluating it.

'he below simple diagram shows the process, which guides the performance management activities$

%P#an& 'Setting (b)ecti*es+

Planning employees; performance involves establishing the standards or measures like "!s, valuesystem, ethics, and performance factors, which guide an employee5s !ppraisal. 4or an employee,performance objectives (in form of "!s < IDP would be developed in line with the respectivedepartment5s= project=groups objectives,

'he below process shows a high level view of the steps involved


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%,o& '$ompetency ,e*e#opment+

Doing involves evaluating employee developmental needs that will help them strengthen their job+related skills and competencies, and prioritising and developing a plan of action to achieve the settarget.

4igure 9 shows how an employee is Individual Development Plan is developed and "!5s finalised$


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%$hec& '$ontinuous Monitoring+

6hecking includes conducting ongoing reviews where employees5 performance is 2uantitativelymeasured against the set standards to identify how well the employees are meeting the set goals.

'hereafter, the 2uantitative data is used to derive performance rating during the appraisal period.

If poor performance is identified, an immediate plan of action is taken rather than wait until the end ofthe appraisal period when summary rating levels are assigned.

%Act& 'Performance .*a#uation+


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!cting includes evaluating job performance against the standards in the employee5s performance planand assigning a rating to the employee based on work performed during the entire appraisal period.

'he below process depicts the entire rating process$


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SMA"/ Princip#es of Performance Management

I personally like to use *!"' framework to implement highly effective performance managementsolutions. *!"' is$ Specific, Measurable, Achievable, "esult oriented and /ime bound (SMA"/.

>sing this system, tailored to the client5s workforce, I have helped employees develop greater self+awareness, role clarity, and provide them with the opportunity to plan developmental needs usingorganisational resources.

!s a part of my performance management activities, the following activities are performed$

,e*e#op capture and trac emp#oyees2 Indi*idua# ,e*e#opment P#ans 'I,Ps+ through a

database system to enhance visibility about their development plans

(ngoing performance feedback to employees on their progress toward reaching the set goals

and defines shared !"As to align employees5 work efforts in line with the organisation5sobjectives

3ins the competency frame4or with performance management to enhance visibility and

perform an objective assessment of employees5 readiness for ne-t role


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Sustainab#e a4ards and recognitions like 7mployee of the ?ear (7O?, 7mployee of the

@uarter (7O@, and cash pri#e to high contributing individuals ensure motivation andcontributes to the strategic business direction.

! P#an for "e5uisite Performance (P"P process is in place to address unsatisfactory workperformance issues and allow the organisation to look beyond employees as mere resources totap into the human e#ement and facilitate their recovery into more productive individuals

6#oba# Performance Planning and "eview tool to facilitate objective evaluation of worldwide

employees on common organi#ation+wide ethics and performance parameters

Impact

ith implementation of well laid out performance management system as highlighted above,companies reali#ed the following benefits$

ith continuous performance feedback to employees, formal employee dissension onperformance evaluation have reduced from %A+&8 to less than A on an employee base of A88+%888 (Over :8B reduction

ith formalised P"P, C8B employees with unsatisfactory work performance have improved

from a non+compliant level to meeting e-pectations level

"eduction in rehiring cost through enhanced retention by using P"P 6ommon understanding

between the managers and the subordinates on the e-pectations and the evaluation criteriathrough increased transparency in the appraisal system.

reater employee satisfaction on uniform reward=recognition policy and development

opportunities.

6onsistently achieving 6ustomer atisfaction Inde- (6I of greater than E (on a scale of A for

almost F8B of our long term projects as a result of linking individual "!s with organisationalgoals

Documents

Performance Management 101 Guide by Bob Panic