Performance Management Session 2

8/10/2019 Performance Management Session 2

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MS (Management Science)

Advanced Topics in Performance Management System

The Performance Management Process

Discussion 02

23-0-20!!"y

Dr# Sa$id %ussain A&an

Assistant Professor

S'A"ST s*ama+ad

,-mai* sa$id#a&an.s/a+ist-is+#edu#p

ntroductionntroduction


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Performance Management Defined"asic 1onceptshat Performance Management s ot

Payoffs 4f 5sing PMPerformance Management 6 7esearch

Performance P*anning Performance ,8ecution Performance Assessment Performance 7evie& Performance Measurement

7esearch "asics

7evie&7evie&


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9A man:s mind stretched +y a ne& ideacan

never go +ac to its origina* dimensions#;

4*iver ende** %o*mes

5#S# Supreme 1ourt

Point to ponderPoint to ponder


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Performance Management as a Process of ManagementThe Performance Management 1yc*e

The Performance Management Se?uence%o& Performance Management orsPerformance Management ActivitiesPerformance Management in Action

1ontents1ontents


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Performance Management asa Process of Management


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Performance management is a natura* process of management# As

defined +y the tota* ?ua*ity e8pert i**iam Deming (!) it consists

of these +asic activities that is a*so ca**ed Deming:s cyc*e

P*an6 decide &hat to do and ho& to do it#Act6 carry out the &or needed to imp*ement the p*an#Monitor6 carry out continuous checson &hat is +eing done and

eep measuring outcomes in order to assess progress in

imp*ementing the p*an#7evie&6 consider &hat has +een achieved and in the *ight of this

esta+*ish &hat more needs to +e done and any corrective action

re?uired if performance is not in *ine &ith the p*an#

PM as a Process of ManagementPM as a Process of Management


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The PerformanceManagement 1yc*e


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Performance management can +e descri+ed as a continuous se*f-

rene&ing cyc*e &hich fo**o&s the p*an6act6monitor6revie&

se?uence#

The PM 1yc*eThe PM 1yc*e


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The PM 1yc*eThe PM 1yc*e 1ont#1ont#


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The PerformanceManagement Se?uence


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The se?uence of processes carried out in this cyc*e and the *ie*y

outcomes are i**ustrated in @igure +e*o

The PM Se?uenceThe PM Se?uence


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The PM Se?uenceThe PM Se?uence 1ont#1ont#


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%o& PerformanceManagement ors


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The +asis upon &hich performance management &ors as a

continuous process is i**ustrated in @igure#

%o& PM ors%o& PM ors


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Performance ManagementActivities


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The main activities are

7o*e definition in &hich the ey resu*t areas and competence

re?uirements are agreed#

PM ActivitiesPM Activities


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The performance agreement &hich defines e8pectations6 &hat

individua*s have to achievein the form of o+$ectives ho&

performance &i** +e measuredand the competencesneeded to

de*iver the re?uired resu*ts#

PM ActivitiesBPM ActivitiesB


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The performance improvement p*an &hich spe**s out &hat

individua*s shou*d do to improve their performance &hen this is

necessary#



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Managing performance throughout the year &hen actionis taen

to imp*ement the performance agreement and performance

improvement and persona* deve*opment p*ans as individua*s carry

on &ith their day-to-day &or and their p*anned *earning

activities#t inc*udes a continuous process of providing feed+ac on

performance conducting informa* progress revie&s updatedo+$ectives and &here necessary dea*ing &ith performance

pro+*ems#



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Performance revie& &hich is the forma* eva*uation stage &hen a

revie& of performance over a periodtaes p*ace covering

achievements progressand pro+*emsas the +asisfor the ne8t part

of the continuous cyc*e6

A revised performance agreement and performance

improvement and persona* deve*opment p*ans# t can a*so *eadto performance ratings#



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PM in ActionPM in Action

PM is a coherent and overall systematic approach and should not be treatedas a mechanistic system based onperiodical !ormal appraisals and detailed

documentation"#eclaration o! intentand continuous supporto! top mana$ement should

emphasi%e that the aimis to develop a hi$h&per!ormance culture and inte$rate

or$ani%ational and individual $oals"'hen developin$ and operatin$ PM it is necessary to ensure that it is

re$ardedby all concerned as a(oined&up process in )hich per!ormance and

development plannin$ recorded in a per!ormance a$reement leads to

continuous monitorin$ o! per!ormance a$ainst plans )ithbuilt&in !eedbac*"+his in turn !orms the basis o! !ormal and in!ormal revie)s as and )hen

appropriate ,not (ust an annual event- )hich in!orm !or)ard plannin$ as part

o! a rene)ed per!ormance a$reement"


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At Pfi/er nc the guidance given on performance management is

Chave a dia*ogue and document it:#

%o&

PM in Action at Pfi/er ncPM in Action at Pfi/er nc


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PM in Action Pfi/er ncBPM in Action Pfi/er ncB


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7aytheon is a 5S-+ased defense and aerospace supp*ier &ith =0000

emp*oyees &or*d&ide# ts performance deve*opment process as set

out +y the company is mode*ed in @igure#

PM in Action at 7aytheon ncPM in Action at 7aytheon nc


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PM in Action at 7aytheon ncBPM in Action at 7aytheon ncB


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The approach to performance management adopted +y the Scottish

Par*iament as set out in the guidance notes is summari/ed +e*o

PurposeAimAchieving purpose aims and va*uesAims of performance management"asis of performance managementood performance managementPersona* deve*opment p*an

PM in Action at Scottish Par*iamentPM in Action at Scottish Par*iament


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Purpose

To support the Scottish Par*iament in fu*fi**ing its

constitutiona* ro*e as a representative and*egis*ative +ody +y providing professiona* advice

and services of the highest standards#



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Aim

To +e an organi/ation in &hich &e a** +ehave corporate*y and are

proper*y trained informed invo*ved motivated and re&arded andto &hich &e are proud to +e*ong#



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Achieving purpose aims and va*ues

To he*p achieve the a+ove a performance management system has

+een deve*oped specifica**y to

"e simp*e to operate#

,sta+*ish a c*ear *in +et&een +usiness and individua* o+$ectives#

,nsure commitment to our va*ues and cu*ture#

,nsure that si**s and no&*edge and +ehavior are revie&ed#



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Achieving purpose aims and va*ues 1ont#

enerate a thorough and continuing revie& of TED needs#

,na+*e us to continue to improve the organi/ation:s performance#

,nsure &e can identify and re&ard e8ceptiona* performance and

contri+ution#

dentify good and +ad performance c*ear*y#



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Aims of performance management

Performance management is designed to

,nsure that &hat &e do is guided +y our va*ues and is re*evant tothe purposes of the organi/ation#

,nsure that &e are a** c*ear ho& to demonstrate the si**s

no&*edge and +ehaviors that are e8pected of us#

,nsure that &e are c*ear &hat our individua* ro*e is and ho& &e

intend to fu*fi** it#



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Aims of performance management 1ont#

Fin our $o+ ro*es and individua* o+$ectives to the organi/ationa*

o+$ectives and priorities set out in the Management P*an#

,nsure that a** managers agree and revie& o+$ectives priorities

and deve*opmenta* needs &ith team mem+ers#

7evie& performance against o+$ectives and areas of competenceto ensure that &e are maing the +est possi+*e contri+ution to the

organi/ation:s overa** aim#



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Aims of performance management 1ont#

,nsure that a** team mem+ers receive constructive feed+ac in

order to deve*op and improve performance#

,nsure that a thorough revie& of training and deve*opment taes

p*ace as an integra* part of the system so that persona*

deve*opment p*ans ref*ect +oth +usiness and individua* aims#

,nsure that poor performance is identified ?uic*y and support

provided to e*iminate it#



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"asis of performance management

Performance management invo*ves measuring not on*y &hether

$o+s are done +ut ho& they are done#



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"asis of performance management 1ont#

Staff are assessed against a set of eight core areas of competence%igh ?ua*ity service

f*e8i+i*ity and adapta+i*itypersona* contri+utionpro+*em so*ving and decision maing*eadershipGteam&or

communication and interpersona* si**spar*iamentary a&areness ande?ua* opportunities 6 improving access and promoting

e?ua*ity#



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"asis of performance management 1ont#

Positive and negative indicators e8ist against each area of

competence to i**ustrate the &ays in &hich staff are e8pected to

+ehave and the &ays in &hich they are e8pected not to +ehave#



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ood performance management

ood performance management is achieved through +oth parties

ensuring that

e& staff no& &hat is e8pected of them from the outset#

,veryone is c*ear a+out corporate goa*s and &ors to&ards them#

4+$ectives are SMA7T (Specific Measura+*e Achieva+*e

7e*evant Time re*ated)#



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ood performance management 1ont#

A system e8ists to accommodate day-to-day performance

feed+ac#

The persona* deve*opment p*an (PDP) is used forma**y to he*p se*f

deve*opmenta* activities andGor improve performance#

The *ine manager provides and the $o+ho*der undertaes thetraining needed to support the individua* and the organi/ation#

Appropriate support is in p*ace to e*iminate poor performance#



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Persona* deve*opment p*an

A persona* deve*opment p*an is an important part of the system# t is

a p*an on &hich to record

&here the *eve* of competence is met +ut &here &e &ou*d *ie to

deve*op furtherH

any training andGor deve*opment needed to support the de*ivery of

that o+$ectiveH and

any gaps in si**s no&*edge or +ehaviors that need to +e

overcome in order to meet our o+$ectives#



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Persona* deve*opment p*an 1ont#

t gives $o+ho*ders and *ine managers the opportunity to

identify discuss and agree deve*opment needs for the year ahead

prioriti/e and p*an ho& these &i** +e addressed and achieved

agree and set dates for revie&ing the p*an

if necessary p*an ho& poor performance might +e improved



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The approach to performance management as descri+ed +y 1aro*ine

Shar*ey 4rgani/ation Deve*opment Manager is descri+ed +e*o

"acground@eatures and aims of performance managementetting performance management to &or7ating

PM in Action at Standard 1harteredPM in Action at Standard 1hartered


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"acground

Standard 1hartered "an is a g*o+a* +usiness engaged in retai* and

&ho*esa*e +aning &hich is +ased in %ong Iong and has a+out30000 emp*oyees#



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@eatures and Aims of PM

Annua* cyc*e 6 o+$ective setting in


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@eatures and Aims of PM 1ont#

Set o+$ectives that p*ay to peop*e:s strengths#

@irst crucia* ?uestion C%o& do &e get peop*e to do their +est

every day &ithin the o+$ectives they are set:

Second crucia* ?uestion C%o& can &e get peop*e to go from good

to great:



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@eatures and Aims of PM 1ont#

CPerformance management is a** a+out +ehavior#:

C,ach year there has to +e a +ui*d-up of stretch in o+$ectives#:

Chat &as e8ce**ent *ast year is ($ust) doing your $o+ this year#:

Set three types of o+$ectives financia*G+usiness o+$ectives t&o

core management o+$ectives and a va*ues o+$ective for a**#



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etting PM to or

CPut into p*ace the ena+*ers that &i** mae it happen#:

Tota* commitment from senior management# Much time spent in

engaging *ine managers in the process# Performance management

a regu*ar topic at senior management meetings#

1entra* focus on training 6 si**s &orshops#

5se a**up Po** survey to measure engagement#



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7ating

T&o sca*es

@inancia* achieving +usiness o+$ectives ! to J sca*e#CFiving the va*ues: four-point (A to D) sca*e 6 aim is Cto drive

changes in +ehavior:#



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7ating 1ont#

The o+$ective is to get ratings across the &ho*e of the sca*es and

encourage managers to adopt a more courageous approach#

f a +usiness is de*ivering its o+$ectives it &ou*d +e e8pected to

have a norma* distri+ution of ratings#f a +usiness is de*ivering at a high *eve* the distri+ution &ou*d +e

e8pected to +e se&ed positive*y#



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Standard 1hartered 6 PresentStandard 1hartered 6 Present


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Standard 1hartered 6 @utureStandard 1hartered 6 @uture


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eed of the PMSseed of the PMSs

+he need !or an e!!icient and e!!ective PM.s has increasedover the last decade and the success!ul implementation and

use o! these systems has become o! paramount importance to

or$ani%ations"

/n!ortunately only scattered in!ormation is available in the

literature about the problems that can be epected durin$ the

implementation and use processes"

ven the !ailure rate ,70&56- )hich is o!ten mentioned inthe literature has never been substantiated"

Documents

Performance Management Session 2