Transcript Document
PERFORMANCE MANAGEMENT
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THE PRACTICE OF PERFORMANCE MANAGEMENT: SESSION PLAN
The aims and scope of performance management Aim of managing organizational performance The dimensions of managing organizational performance Strategy map – organizational performance Managing team performance Managing individual performance Characteristics of individual performance management Principles of performance management The performance management cycle Performance management processes ‘SMART’ objectives Methods of assessment Overall assessment Rating Rating scale Visual assessment Example of visual (matrix) assessment Example of competency definition with behavioural indicators Recording the performance agreement and review Performance management form 360-Degree feedback
THE AIMS AND SCOPE OF PERFORMANCE MANAGEMENT
• The
aim
of performance management is simply to improve performance to enable corporate goals to be achieved • The
scope
of performance management includes the organization and teams as well as individuals
AIM OF MANAGING ORGANIZATIONAL PERFORMANCE
The aim of is to increase organizational capability – the capacity of an organization to function effectively
THE DIMENSIONS OF MANAGING ORGANIZATIONAL PERFORMANCE
• Creating visions for the future.
• Planning – determining the present organizational state and developing strategies to improve that state • Designing, developing and implementing improvement interventions • Designing, redesigning, developing, and implementing measurement and evaluation systems • Putting cultural support systems in place to reward and reinforce progress (Sink and Tuttle, 1990)
STRATEGY MAP – ORGANIZATIONAL PERFORMANCE Profitability (return on capital employed) Gross margin Organizational capability Cost management Product/market development Sales turnover Customer service Customer satisfaction/loyalty Quality Marketing Sales force effectiveness Learning and development Employee engagement Human capital contribution Resourcing and talent management Performance management High performance working Reward management
MANAGING TEAM PERFORMANCE
Managing team performance involves setting work and process objectives and conducting team reviews
MANAGING INDIVIDUAL PERFORMANCE
Individual performance is managed through performance management systems which involve: • the agreement of performance expectations • the formulation and implementation of performance improvement and personal development plans
CHARACTERISTICS OF INDIVIDUAL PERFORMANCE MANAGEMENT
Performance management is a planned process with the following elements: • agreement • measurement • feedback • positive reinforcement • dialogue
PRINCIPLES OF PERFORMANCE MANAGEMENT
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‘A management tool which helps manages to manage’ ‘Driven by corporate purpose and values’ ‘To obtain solutions that work’ ‘Only interested in things you can do something about and get a visible improvement’ 5.
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‘Focus on changing behaviour rather than paperwork.
‘It’s about how we manage people – it’s not a system’ ‘Performance management is what managers do: a natural process of management’ ‘Based on accepted principle but operates flexibly’ 9.
‘Focus on development not pay’ 10.
‘Success depends on what the organization is and needs to be in its performance culture’
THE PERFORMANCE MANAGEMENT CYCLE
Performance and development planning performance agreement:
• role definition • objectives • competencies • performance improvement • personal development
Review Performance
• dialogue and feedback • agree strengths and any areas for improvement • build on strengths – “you are particularly strong in this area use of this?” – how can you make even greater
Act
• carry out role • implement performance improvement plan • implement personal development plan
Manage performance throughout the year
• monitor performance • provide continuous feedback • provide coaching • deal with under-performers
PERFORMANCE MANAGEMENT PROCESSES
• Concluding performance and development agreements • Performance planning • Personal development planning • Managing performance throughout the year • Conducting performance reviews • Assessing performance • Recording outcomes on a performance management form
‘SMART’ OBJECTIVES
The criteria for good objectives are that they should be: S =
Specific/stretching –
clear, unambiguous, straightforward, understandable and challenging M =
Measurable –
quantity, quality, time, money A =
Achievable
– challenging but within the reach of a competent and committed person R =
Relevant –
relevant to the objectives of the organization so that the goal of the individual is aligned to corporate goals T =
Time-framed –
to be completed within an agreed time scale
METHODS OF ASSESSMENT
• Overall assessment • Rating • Visual
OVERALL ASSESSMENT
Overall assessment is based on a general analysis of performance under the headings of the performance agreement
RATING
Rating summarizes on a scale the views of the rater on the level of performance achieved
EXAMPLE OF VERBAL RATING SCALE
• Exceptional performance • Well-balanced performance • Barely effective performance • Unacceptable performance
VISUAL ASSESSMENT
Visual assessment involves an agreement between the manager and the individual on where the latter should be placed on a matrix
EXAMPLE OF VISUAL (MATRIX) ASSESSMENT
High
Employees placed here have an effective behavioural style but are not delivering well Employees placed here are top performers
• • • •
Possible actions:
medium reward provide feedback coach/train to improve delivery set milestones
• • • •
Possible actions:
full recognition and high reward challenge/stretch fast track career (talent programme) coaching Behavioural style Employees placed here have both behavioural and performance problems Employees placed here have good business results but need to focus on style
Low • • • • •
provide feedback coach
Possible actions:
set milestones monitor decision whether to continue or end employment
Low • • • •
Possible actions:
medium reward recognize contribution provide feedback coach to improve style Business performance
High
EXAMPLE OF COMPETENCY DEFINITION WITH BEHAVIOURAL INDICATORS
Competency heading Leadership Competency definition Competency requirements Positive indicators • • • • • • • • • • The capacity to inspire individuals to give of their best to achieve a clearly defined result and to maintain effective relationships with the team Accepted by team as an effective and approachable leader Give clear direction and guidance Agree objectives and competency requirements Motivate and coach team members Take a close interest in the wellbeing of team members Leadership qualities recognized by team Establishes clear team goals and inspires team to achieve them Maintains firm support and guidance Is considerate when dealing with people Lets people know they are valued Negative indicators • • • • • Not respected by team Doesn’t explain why things have to be done Fails to allocate tasks clearly Ignores contribution of individuals Not really interested in people
RECORDING THE PERFORMANCE AGREEMENT AND REVIEW
The performance agreement and outcomes of a review can usefully be recorded on a performance management form
PERFORMANCE MANAGEMENT FORM PART 1
Name
PERFORMANCE AND DEVELOPMENT : AGREEMENT AND REVIEW
Forename Job title Reviewer’s name Department: Job title Objectives
PERFORMANCE AND DEVELOPMENT AGREEMENT
Performance measures Competencies Agreed actions Learning need
PERSONAL DEVELOPMENT PLAN
How it will be met Action by whom Completion date
PERFORMANCE MANAGEMENT FORM PART 2 PERFORMANCE AND DEVELOPMENT REVIEW
Objectives Achievements Competencies Development needs Comments by reviewer Comments by person reviewed Actions taken Actions taken
360-DEGREE FEEDBACK
360-Degree feedback, also known as multi-source feedback, is a process in which someone’s performance is assessed and feedback is given by a number of people who may include their manager, subordinates, colleagues and customers