PERFORMANCE MANAGEMENT

THE PRACTICE OF PERFORMANCE

MANAGEMENT: SESSION PLAN
1. The aims and scope of performance management
2. Aim of managing organizational performance
3. The dimensions of managing organizational performance
4. Strategy map organizational performance
5. Managing team performance
6. Managing individual performance
7. Characteristics of individual performance management
8. Principles of performance management
9. The performance management cycle
10. Performance management processes
11. SMART objectives
12. Methods of assessment
13. Overall assessment
14. Rating
15. Rating scale
16. Visual assessment
17. Example of visual (matrix) assessment
18. Example of competency definition with behavioural indicators
19. Recording the performance agreement and review
20. Performance management form
21. 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
Cost
capability
management

Sales turnover

Customer
Product/market
service
development

Customer
satisfaction/loyalty

Quality
Sales force
Marketing
effectiveness

Human capital
contribution High performance
working

Resourcing
Learning and Employee Performance Reward
and talent
development engagement management management
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

1. A management tool which helps manages to manage

2. Driven by corporate purpose and values
3. To obtain solutions that work
4. Only interested in things you can do something about and get a
visible improvement
5. Focus on changing behaviour rather than paperwork.
6. Its about how we manage people its not a system
7. Performance management is what managers do: a natural process
of management
8. 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 Act

dialogue and feedback
agree strengths and any carry out role
areas for improvement implement performance
build on strengths you are improvement plan
particularly strong in this area implement personal
how can you make even greater development plan
use of this?

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 Employees placed here are
are not delivering well top performers

Possible actions: Possible actions:

medium reward full recognition and high reward
provide feedback challenge/stretch
coach/train to improve delivery fast track career (talent programme)
set milestones coaching
Behavioural
style
Employees placed here have Employees placed here have
both behavioural and good business results
performance problems but need to focus on style

Possible actions: Possible actions:

provide feedback medium reward
coach recognize contribution
set milestones provide feedback
monitor coach to improve style
decision whether to continue or
Low end employment

Low Business performance High

EXAMPLE OF COMPETENCY DEFINITION WITH
BEHAVIOURAL INDICATORS
Competency heading Leadership

The capacity to inspire individuals to give of their best to achieve

Competency definition 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
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
Positive indicators Is considerate when dealing with people
Lets people know they are valued

Not respected by team

Doesnt explain why things have to be done
Negative indicators 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
PERFORMANCE AND DEVELOPMENT : AGREEMENT AND REVIEW

Name Forename

Job title Department:

Reviewers name Job title

PERFORMANCE AND DEVELOPMENT AGREEMENT

Objectives Performance measures

Competencies Agreed actions

PERSONAL DEVELOPMENT PLAN

Learning need How it will be met Action by whom Completion date

PERFORMANCE MANAGEMENT FORM PART 2

PERFORMANCE AND DEVELOPMENT REVIEW

Objectives Achievements

Competencies Actions taken

Development needs Actions taken

Comments by reviewer

Comments by person reviewed

 360-DEGREE FEEDBACK

360-Degree feedback, also known as multi-source

feedback, is a process in which someones performance
is assessed and feedback is given by a number of
people who may include their manager, subordinates,
colleagues and customers