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    1-Nature and Scope

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    Lopa Manish Shahi
    Performance management has evolved over five phases from the 1960s to the present. It began as a system to control employee behavior and record performance in annual reports, and has progressed to become a more strategic and integrated approach focusing on continuous development, communication, and improving individual and organizational performance. A key element of performance management is establishing clear expectations and standards, providing regular feedback, and identifying training needs to help employees achieve their goals and develop their skills. The objectives include enhancing performance, communication, motivation, and using performance as a basis for administrative decisions.

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    1-Nature and Scope

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    Lopa Manish Shahi
    2K views13 pages
    Performance management has evolved over five phases from the 1960s to the present. It began as a system to control employee behavior and record performance in annual reports, and has progressed to become a more strategic and integrated approach focusing on continuous development, communication, and improving individual and organizational performance. A key element of performance management is establishing clear expectations and standards, providing regular feedback, and identifying training needs to help employees achieve their goals and develop their skills. The objectives include enhancing performance, communication, motivation, and using performance as a basis for administrative decisions.

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    Performance management has evolved over five phases from the 1960s to the present. It began as a system to control employee behavior and record performance in annual reports, and has progressed to become a more strategic and integrated approach focusing on continuous development, communication, and improving individual and organizational performance. A key element of performance management is establishing clear expectations and standards, providing regular feedback, and identifying training needs to help employees achieve their goals and develop their skills. The objectives include enhancing performance, communication, motivation, and using performance as a basis for administrative decisions.

    Copyright:

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    Download as ppt, pdf, or txt
    2K views13 pages

    1-Nature and Scope

    Uploaded by

    Lopa Manish Shahi
    Performance management has evolved over five phases from the 1960s to the present. It began as a system to control employee behavior and record performance in annual reports, and has progressed to become a more strategic and integrated approach focusing on continuous development, communication, and improving individual and organizational performance. A key element of performance management is establishing clear expectations and standards, providing regular feedback, and identifying training needs to help employees achieve their goals and develop their skills. The objectives include enhancing performance, communication, motivation, and using performance as a basis for administrative decisions.

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    PERFORMANCE MANAGEMENT

    Presented By: Ajit Kumar Kar MBA (HR), PTHE, CTE Asst. Prof. (HR & Soft Skills), BIITM, BBSR www.ajitprofile.blogspot.in Deputy Lead (HRD), WOMS, Bhubaneswar www.womsindia.com Vice President (Executive Training), JCI,BBSR, www.jciindia.in Certified Trainer (Train Now), Montana, USA Senior Trainer Consultant, Intarvo Technologies Ltd, EAST Zone www.istepindia.com, www.intarvo.com Freelancer Trainer & Consultant, ELL, Bhubaneswar Member, Review Board, IISTE, USA Member of ecch, U.K Life Member of World Environmental Organization & Studyspanish.com Life Member of Global Organization for Stress

    Definition of Performance Management


    According to Armstrong and Baron (1998), Performance Management is both a strategic and an integrated approach to delivering successful results in organizations by improving the performance and developing the capabilities of teams and individuals.

    The term performance management gained its popularity in early 1980s when total quality management programs received utmost importance for achievement of superior standards and quality performance

    Evolution of Performance Management First Phase: The origin of performance management can be traced in the early 1960s when the performance appraisal systems were in practice. . During this period, Annual Confidential Reports (ACRs) was also known as Employee service Records were maintained for controlling the behaviors of the employees and these reports provided substantial information on the performance of the employees.

    Second Phase: This phase continued from late 1960s till early 1970s, and the key hallmark of this phase was that whatever adverse remarks were incorporated in the performance reports were communicated to the employees so that they could take corrective actions for overcoming such deficiencies

    Evolution of Performance Management Third Phase: In this phase the term ACR was replaced by performance appraisal. One of the key changes that were introduced in this stage was that the employees were permitted to describe their accomplishments in the confidential performance reports, several new components were considered by many organizations which could measure the productivity and performance of an employee in quantifiable terms such as targets achieved, etc.

    Fourth Phase: This phase started in mid 1970s and its origin was in India as great business tycoons like Larsen & Toubro, followed by State Bank of India .

    The system focused on performance planning, review and development of an employee by following a methodical approach. In the entire process, the appraise (employee) and the reporting officer mutually decided upon the key result areas in the beginning of a year and reviewed it after every six months.
    In the review period various issues such as factors affecting the performance, training needs of an employee, newer targets and also the ratings were discussed with the appraisee in a collaborative environment. This phase was a welcoming change in the area of performance management and many organizations introduced a new HR department for taking care of the developmental issues of the organization.

    Fifth Phase: This phase was characterized by maturity in approach of handling peoples issues. It was more performance driven and emphasis on development, planning and improvement. Utmost importance was given to culture building, team appraisals and quality circles were established for assessing the improvement in the overall employee productivity

    The performance management system is still evolving and in the near future one may expect a far more objective and a transparent system.

    Performance management is the current buzzword and is the need in the current times of cut throat competition and the organizational battle for leadership. Performance management is a much broader and a complicated function of HR, as it encompasses activities such as joint goal setting, continuous progress review and frequent communication, feedback and coaching for improved performance, implementation of employee development programmes and rewarding achievements. The process of performance management starts with the joining of a new incumbent in a system and ends when an employee quits the organization. Performance management can be regarded as a systematic process by which the overall performance of an organization can be improved by improving the performance of individuals within a team framework. It is a means for promoting superior performance by communicating expectations, defining roles within a required competence framework and establishing achievable benchmarks.

    A performance management system includes the following actions. Developing clear job descriptions and employee performance plans which includes the key result areas (KRA') and performance indicators. Selection of right set of people by implementing an appropriate selection process. Negotiating requirements and performance standards for measuring the outcome and overall productivity against the predefined benchmarks. Providing continuous coaching and feedback during the period of delivery of performance. Identifying the training and development needs by measuring the outcomes achieved against the set standards and implementing effective development programs for improvement. Holding quarterly performance development discussions and evaluating employee performance on the basis of performance plans. Designing effective compensation and reward systems for recognizing those employees who excel in their jobs by achieving the set standards in accordance with the performance plans or rather exceed the performance benchmarks. Providing promotional/career development support and guidance to the employees. Performing exit interviews for understanding the cause of employee discontentment and thereafter exit from an organization.

    OBJECTIVES OF PERFORMANCE MANAGEMENT

    To enable the employees towards achievement of superior standards of work performance. To help the employees in identifying the knowledge and skills required for performing the job efficiently as this would drive their focus towards performing the right task in the right way. Boosting the performance of the employees by encouraging employee empowerment, motivation and implementation of an effective reward mechanism.

    Promoting a two way system of communication between the supervisors and the employees for providing a regular and a transparent feedback for improving employee performance and continuous coaching. Identifying the barriers to effective performance and resolving those barriers through constant monitoring, coaching and development interventions. Creating a basis for several administrative decisions strategic planning, succession planning, promotions and performance based payment

    Booz Allen's performance management model

    A performance management process sets the platform for rewarding excellence by aligning individual employee accomplishments with the organizations mission and objectives and making the employee and the organization understand the importance of a specific job in realizing outcomes.

    By establishing clear performance expectations which includes results, actions and behaviors, it helps the employees in understanding what exactly is expected out of their jobs and setting of standards help in eliminating those jobs which are of no use any longer.
    Through regular feedback and coaching, it provides an advantage of diagnosing the problems at an early stage and taking corrective actions.

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