Post on 01-Jun-2018
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Performance Management
…managing employee performance forsustainable organisational growth
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Learning Objectives
• Learning what performancemanagement
• Learn how to set goals, objectivesand put development plans togetherwith your sta.
• Learn how to review performanceand how to manage underperformers.
• Learn how to deal with di!cult
people in an eective manner.
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"round #ules
• Please put all mobile phones anddevices on $%L&'( mode
• )eel free to as* +uestions
• ctive participation -old calls
• (wo brea*s (ea and Lunch
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Performance Management
• %s a continuous process of settinggoals, eectively communicatingthem, monitoring and evaluating the
results against agreed set criteriaand objectives of a 0rm in order toidentify, support, retain and develop
employees to drive strategic growthand development of the 0rm.
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1rivers of Organisational
Performance
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2ey spects of PerformanceMgt
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)unnelling…
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"oal$etting
• 3sually done annually
• 4ased on set targets and objectivesfrom the company/s management
• ligned to company/s strategicdirection and goals
• $hould be done with necessary inputfrom employee
• )inalised by each Manager or 3nit$upervisor
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5ow (o $et "oals…
• $peci0c must clear, precise goals,standards, objectives, evaluation criteria
• Measureable must be +uanti0ed, can be
revised and documented• ttainable must be achievable with
reasonable eort and resources
• #elevant must be in line with the goals of
the unit6department and company• (imebound must be performed within a
clearly de0ned speci0c time frame
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-ommunication
• %nformal and formal means
• 4ased on set goals and objectives
•
-lear and collaborative• 1ocumented for easy reference
• Multilayered
•
-onstructive• #ight mindset
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Monitoring
• (hrough employee feedbac*
• %nformal meetings
•
#esults6)igures• )eedbac* from colleagues and
subordinates
•
-ustomer feedbac*• (eam performance
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$ome &valuation Methods
• %ndividual performance reviewmeetings
• 789 degree feedbac*
• Pair #an*ing
• Management by Objectives
•
3se of objective, systematic anddefensible measurements
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&mployee 1evelopmentPlan
%s a roadmap to improve employee/s
wor* performance with a view toaddress current areas of de0ciencyand prepare him6her to meet future
challenges
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5ow to -reate a1evelopment Plan• List all needed short and long term s*ills,
competence6*nowledge to meet current andfuture job re+uirements
•
-ompare employee/s performance to the list• %dentify areas of performance and de0ciency
• Let employee perform selfassessment basedon company needs
• Meet and compare assessments, highlightareas of disagreement
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1i!cult &mployees…
• 'on (eam Players
• Marginal Performers
•
La=y &mployees• 'onethical
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%mpact on Organisations
• #educed e!ciency
• 5igher operating costs
•
Low team morale• Poor wor* place culture
• crimony and dispute
•
Poor corporate image• (hreatens competitiveness and
future growth
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1i!cult employees…
• >erbally confront issues directly anddocument subse+uent meetings
• Proer multiple solutions and as*employee to come up with acorrective action plan
• Oer support and coaching if
re+uired
• 4ring in a third party :e.g. 5#< ifadditional help is needed
• 4e consistent, calm and professional
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#easons )or PoorPerformance
• Lac* of s*ills
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PERFORMANCEOPPORTUNITIES
P o o
r P e r f
E
x c e l l e n t
P e r f
No/Low Knowledge Hig Knowledge
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Ke! Perfor"#nceM#n#ge"ent $%e&tion&
1. Why assess performance
2. What performance to asses
3. How to assess performance4. Who assess performance
5. When to assess performance
6. How to communicate performanceassessment
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Perfor"#nce
M#n#ge"ent S!&te"&-Administer Salary Wa!es-"orrect #erformance$%eha&ior
-#lan for 'uture ( promotion, transfer, career dev)
-'acilitate (ecision-)a*in! (counseling, terminations)-'acilitate Human +esource #lannin!
-"reate "ulture
-%uildin! ,ood +elationships-ncrease r!ani/ational 0oyalty
-(etermine ffecti&eness of Selection and
#lacement )ethods
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HO' to A&&e&&
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HO' to A&&e&&Perfor"#nce
raditional
)ana!ement-y-ecti&e
Assessment "enter
#eer +e&iew #anel
"ritical &ents
pward 'eedac*
367 (e!ree
So"e Tecni)%e& of
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So"e Tecni)%e& ofPerfor"#nce M#n#ge"ent
ssay 8open-ended9)ana!ement y ecti&e
+an*in!
#aired "omparisons
'orced "hoice
'orced (istriution
+atin!s:
-"hec*list-Scales
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E&! Tecni)%e
e&cri+e in det#il te )%#ntit! #nd )%#lit! of t,lo!ee-& ,erfor"#nce d%ring te ,#&t twel.
ont&
e&cri+e te e",lo!ee-& &trengt #nd we#0ne
ow do !o% de&cri+e te e",lo!ee-& ,otenti#litin te co",#n!1#t le#der&i, &0ill& doe& te e",lo!ee +rin
te 2o+1#t f%t%re de.elo,"ent #cti.itie& do !o%co""end for te e",lo!ee1
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Morg#n St#nle!-& E&!S!&te"
Consider objectives identified in prior year’s Summary as well
as this year’s objectives.
Evaluation: Strengths Comments
1.
.
!.
"evelopment #reas Comments
1.
.
!.
#n#ge"ent !
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#n#ge"ent3 !3O+2ecti.e
Ex#",le&
mployee will contriute to or!ani/ational
profit mar!in y lower costs in department y 3.5percent.
o implement new recruitment system; the employee will e&aluate the effecti&eness of
the ad&ertisements placed durin! the year.
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R#n0ing Ex#",le
)ana!er ran*s all employees from est to worst:
&erall performance
n specific criteria 8communication;
customer relations s*ills; etc.9
P# re Co",#r &on&
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P# re Co",#r &on&Ex#",le
+an* each employee !roupin! o&erall or
on a characteristic:
mployee A and mployee %
mployee % and mployee "mployee A and mployee "
mployee " and mployee (
mployee ( and mployee Amployee ( and mployee %
etc.
orce & r % on
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orce & r % onEx#",le
#lace each of the employees in your unit in the
followin! cate!ories ased upon o&erall or
specific cate!ory performance:
op 17 percent: 17-4< percent:
57 = >< percent: %ottom 17 percent:
utstandin!: A&era!e:
,ood: %elow A&era!e:
nacceptale:
enera ectr c s
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enera ectr c s1istribution
The Vitality Curve #romotaility
Hi!h )edium 0imited
op #erformers
17?
Hi!hly @alued 7?
0east ffecti&e
27?
# ng& x#", e4
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# ng& x#", e4Sc#le&
$ate the employee’s behavior on the scale provided.
E%cellent &ood 'air oor )*#
+ ! 1 ,,,
$easoning ability + ! 1 ,,,"ecisiveness in "ecision-maing + ! 1 ,,,
/magination 0 originality + ! 1 ,,,
#bility to plan and control + ! 1 ,,,
Cooperation with peers + ! 1 ,,,
Cooperation with management + ! 1 ,,, rofessionalism + ! 1 ,,,
/nterpersonal sills + ! 1 ,,,
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$corecardMe#&%re"ent& 5elow
P#rP#r A+o.
e P#r
$tandards Manager/s assessment
Leadership,
&thics6%ntegrity
-ustomer %nteraction
-ommunity %nvolvement
-ontribution to Overall 4usiness
People Manager/s assessment
Performance
(eamwor*
(raining ? 1evelopment
&mployee $atisfaction
-ontrol uditors/ standards
-itiban*/s Performance
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-itiban* s Performance$corecard..
Me#&%re"ent& 5elow
P#r
P#r A+o.
e P#r-ustomer $atisfaction &@ternal company survey
"oal of A9B
$trategy %mplementation Objective standards
5ouseholds
-rosssell, splits, mergers
#etail asset balances
Mar*et share
)inancial Objective stadards
#evenue
&@pense
Margin
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-itiban*/s Lin* to-ompensation
$atings onus
2#bove ar3 !45
2ar3 165
2elow ar3 45
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O,,ort%nit!
Reinforce/Rew#rd 5e#.ior
C#nge 5e#.ior
Model 5e#.ior
E&t#+li& C%lt%re
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Foc%& 6%dg"ent#l *e.elo,"ent#l
Ti"eorient#tion P#&t,erfor"#nce Pre,#r#tion forf%t%re,erfor"#nce
Metod I",ro.ing,erfor"#nce +!c#nging+e#.ior tro%grew#rd&
I",ro.ing,erfor"#nce +!&elf3 le#rning 7,er&on#l growt
S%,er.i&or-&
Role
6%dge wo
#,,r#i&e&
Co%n&elor wo
li&ten&8 el,&8enco%r#ge& 7g%ide&
S%+ordin#te
-&
Li&tener8 re#ctor
to8 defender of
Acti.el!
in.ol.ed in
C i i f f
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Criteri# for Perfor"#nceMe#&%re&
+ele&ant
+eliale
(iscriminatin!
#ractical
'HO S ld A
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'HO So%ld A&&e&&Perfor"#nce
Superior nly
Suordinate8s9
#eers$"owor*ers
Self
"ustomers
thers
'HEN t A
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'HEN to A&&e&&Perfor"#nce
#roation #eriod
Annually 8anni&ersary date; assi!ned date; set
date for all9
Semi-annually
'or "ause
n-!oin!
As needed
How to Co""%nic#te
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How to Co""%nic#tePM Info
rally
n Writin!
'ormally
nformally
#ulic
#ri&ate
)oderated
H dli P f
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H#ndling Perfor"#nceI&&%e&
What to do
Where to start
How to do it
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'! PM I& *i9c%lt
Bo$utcomes not Cuantified
#ersonal relationships with employees
nale to !i&e criticism
#ersonality iases
#oor communication
"onflictin! ,oals
#layin! ,od
Error& in Perfor"#nce
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Error& in Perfor"#nceMe#&%re"ent
Strictness or 0eniency
"entral endency
Halo rror
+ecency rror
Super&isor %ias
&erall +atin!s
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Correcting PM Error&
solate Bo Areas
ser&e +e!ularly
)inimi/e umer of +atin!s "ompletedrain +aters
(efine (imensions %etter
,i&e 'eedac*
se "ontinual 'eedac*
nclude ther Sources
(ecrease ,eneralities; nclude Specifics
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E:ecti.e PM S!&te"&System acceptale to employees
)ana!ers use system re!ularly correctly
#erception of ein! treated fairly y system
seful feedac* pro&ided
'ocus on prolem sol&in!; not lame
Ser&e to increase producti&ity satisfaction
System used y or!ani/ation
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(raining….continued
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Solicit !i&e feedac* -Clear -Constructive
-Descriptive, not judgmental
A&oid ar!uments
Stri&e for consistency
,et it down in lac* and white
%y-the-oo*
0isten
PRIOR TO PM
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PRIOR TO PMINTER;IE'
(ecide on est time
(ecide on est place
#repare facilities,ather info and materials
#repare employee
#lan the openin!#lan the approach
#lan the conclusion
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After PM Inter.iew
)eet deadlines
Solicit input
+einforce; reward; punish
8follow throu!h9
+e&iew re!ularly
How to *e&tro! PM
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How to *e&tro! PMS!&te"
(o not follow policies
%e inconsistent in application
reat it as unimportant
(o not follow-up
+eprimand in pulicE +eward in pri&ate
"onduct when an!ry
%e late
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Perfor"#nce
M#n#ge"ent S!&te"&-Administer Salary Wa!es
-"orrect #erformance$%eha&ior
-#lan for 'uture ( promotion, transfer, career dev)
-'acilitate (ecision-)a*in! (counseling, terminations)-'acilitate Human +esource #lannin!
-"reate "ulture
-%uildin! ,ood +elationships
-ncrease r!ani/ational 0oyalty
-(etermine ffecti&eness of Selection and
#lacement )ethods
M#n#ge"ent
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M#n#ge"entTrend&
Shift from &iewin! financial fi!ures as
main criteria to one of multiple indicators
)ore wei!ht on indicators of efficiency
and effecti&eness
"han!e to &iewin! #) as on-!oin!;
e&ol&in! process
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S0ill&/A+ilitie&/
Need&/Tr#it&
5e#.ior& Re&%lt&
6o+ Knowledge Perfor" T#&0& S#le&
Strengt O+e!In&tr%ction&
Prod%ctionLe.el&
Coordin#tion Re,ortPro+le"&
Prod%ction$%#lit!
5%&ine&&Knowledge
M#int#inE)%i,"ent
Scr#,/'#&te
*e&ire toAcie.e
Follow R%le& Accident&
*e,end#+ilit! S%+"itS%gge&tion&
E)%i,"entRe,#ir&
Cre#ti.it! Follow3%, C%&to"er&
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Me#&%re& Foc%&
"onsistent indicators across industry or
similar or!ani/ations
"omparison of indicators o&er time in
or!ani/ation
"omparisons with pre-determined standard
A,,ro#ce& to PM
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A,,ro#ce& to PM
"omparati&e
Attriute
%eha&ioral