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Performance Management

Dr. Kapil Pandla


What is Performance Management?

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 Is it differential Pay system?
 Is it objective setting process?
 Feedback or Appraisal System?
 Or it is Career Management System?

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Performance of an individual in
organisational setting may therefore
be defined as the output delivered by
an individual in relation to a given
role during a particular period of time
under the set of circumstances
operating at that point of time.

- Prof. T.V. Rao


Performance Management: An ongoing communication
process that involves both the performance manager and
the employee in:

1. identifying and describing essential job functions and


relating them to the mission and goals of the organization
2. developing realistic and appropriate performance
standards
3. giving and receiving feedback about performance
4. writing and communicating constructive performance
appraisals
5. planning education and development opportunities to
sustain, improve or build on employee work performance.
Elements of EPM
Objectives of EPM
 Knowing the role and function
 Identifying strengths and weaknesses
 Identifying developmental needs of employee
 To increase mutuality between employee and
supervisor
 Provide opportunity to employee of self
reflection
 Help employee to internalise norms and culture
 Prepare employee for higher level jobs
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Process of EPM
Job description and Strategic Plan
Writing a job description is a process of
systematically collecting, analyzing, and
documenting the important facts about a job.

A strategic plan is composed of a mission


statement, identified goals related to the
organization's mission, as well as strategic initiatives
necessary to accomplish each goal.
Performance Standards
Standards of performance are written
statements describing how well a job
should be performed. Performance
standards are developed collaboratively
with employees, whenever possible, and
explained to new employees during the
first month on the job.
Guidelines for Performance Standards

 It should be related to assign work and job


 Reporting system should be adequate
 Accomplishments of organisational
objectives must be included.
 Where it is not possible to quantify the
quality should be verified.

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Checking Standards
 Are the standards realistic?
 Are the standards specific?
 Are the standards based on measurable data,
observation, or verifiable information?
 Are the standards consistent with organizational
goals?
 Are the standards challenging?
 Are the standards clear and understandable?
 Are the standards dynamic?
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Observation and Feedback

Observing work performance and providing feedback


about it should be a routine part of the performance
management process. Feedback should be based on
observed and/or verifiable work-related behaviors,
actions, statements, and results. This type of feedback is
called behavioral feedback. Effective feedback helps the
employee sustain good performance, to develop new
skills and to improve performance when necessary.

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Performance Appraisal
Performance appraisal is a process of
summarizing, assessing and developing
the work performance of an employee. In
order to be effective and constructive, the
performance manager should make every
effort to obtain as much objective
information about the employee's
performance as possible.
Performance Development
Plan
An important component of the performance
management process is development of
employees' work-related skills, knowledge and
experience. The development process offers
another opportunity for you and your employee to
work collaboratively to improve or build on his or
her performance and to contribute to
organizational effectiveness.
Dimensions of Performance
Management

 Output or result dimension


 Input Dimension
 Time Dimension
 Focus Dimension
 Quality Dimension
 Cost Dimension
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