2.1 MFI Performance Management Process Part1
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Transcript of 2.1 MFI Performance Management Process Part1
SEEP Practitioner Learning Program, May 2006 2.1 - S1
Branch Management Training for MFIs: Branch Management Training for MFIs: Developing Staff Management SkillsDeveloping Staff Management Skills
Training Module 2.1
Staff Performance Management Process
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Staff Performance Management
What is it?“Performance Management” is the method by which managers delegate responsibility to achieve specific results, and the effort managers make to ensure the success of their staff.
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Staff Performance Management
Why is it important?Performance Management is a process that helps employees reach higher levels of performance.
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Purpose and Goal of Staff Performance Management System
A PMP can help staff to:
1. Identify with the MFI’s mission
2. Understand their role and how it contributes to the mission
3. Know specifically what is expected of them
4. Have the capacity, resources, and environment which makes success possible
5. Receive encouragement, constructive feedback and opportunities to develop and improve
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Well-Designed Performance Management Process
• Consistent and systematic
• Ensures goals of MFI are accomplished
• Promotes and supports successful performance
• Good one-on-one communication
• Staff participate in planning and monitoring their own work
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Performance Management Process
Develop/Review overall organizational annual objectives
Develop/Review overall departmental annual objectives
Develop individual performance objectives
Implementation and regular supervision/ monitoring
Annual performance appraisal
Follow through
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Performance Management Cycle
An organization can only reach its maximum potential if each employee develops and achieves goals that support personal and organizational success.
Year endappraisal
Set individual performance objectives at the beginning of the year
Ongoing coaching and feedback throughout the year, including interim reviews
1
2
3
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• Focus on organizational results and his/her contribution
• Set annual performance objectives
• Actively participate
• Ask for and listen to feedback
• Take responsibility for professional development
• Stay focused on individual goals
Employee Responsibilities
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Manager Responsibilities
• Set clear, measurable, and attainable objectives
• Provide constructive and timely feedback to employees
• Recommend and support training and development
• Semi-annual and annual performance reviews
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HR Dept. Responsibilities
• Help managers in setting objectives
• Provide training to staff
• Ensure new staff receive training on the performance management process
• Monitor the use of the process
• Review completed year-end performance appraisals
• Monitor and adapt PMP as required
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MI-BOSPO: Continuous Improvement
MI-BOSPO in Bosnia implemented a Performance Management Process that included quarterly work plans for teams and each team member. However quarterly work plans seemed like extra work rather than good planning. After one year we decided to
adjust the process to require a six-month work plan (instead of quarterly) along with ongoing monitoring
and annual performance appraisals. This adjustment was responsive to staff feedback and the process is
now widely accepted within the institution.
- Alma Bijedic, Human Resource Manager
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Setting Performance Objectives
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Step 1: Setting Performance Objectives
• Describe what the employee will be accountable for
• Define important outcomes
• Derived from job descriptions and annual goals
• 5-8 objectives are sufficient
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Overall Organizational Objectives
Regional and/or Divisional Objectives
Branch, Departmental or Team Objectives
Individual Objectives
Linking Performance Objectives to MFI Goals
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Revenue Target Within a MFI
Overall Annual Institutional Objective: Disburse $3 million in loans.
Regional Annual Objective: Disburse $1,750,000 in loans.
Branch Annual Objective: Disburse $750,000 in loans.
Individual/Credit Officer Annual Objective:
Disburse $150,000 in loans.
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Customer Service Target Within a MFI
Overall Annual Institutional Objective: Excellent client service as defined by 95% rate of retention for clients.
Branch Annual Objective: Excellent client service as defined by 95% retention rate of clients.
Individual/Credit Officer Annual Objective: Excellent client service as defined by processing of application forms
within 2 days and 95% retention rate of clients.
Receptionist Annual Objective: Clients are treated professionally as defined by answering the
telephone in a prescribed manner within 3 rings.
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Setting Individual Performance Objectives
Managers and staff set objectives together:
• To ensure mutual understanding of priorities and objectives.
• To improve staff performance
• To share ideas
• To discuss problems and concerns
• To plan for growth and development
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Objectives should be SMART:
Specific
Measurable
Achievable
Realistic
Time-bound
Setting Individual Performance Objectives
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Measuring Individual Performance
• Quantity
• Quality
• Time
• Cost or Revenue
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Summary of Individual Performance Objectives
• Developed at the beginning of the year
• Focus on the specific targets to be achieved for the fiscal year and important ongoing tasks
• Limit to 5 to 8 objectives in total
• Clearly worded: Tasks and Standards
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All managers’ PMP Objectives must include….
Effective Staff Management:
• Implementation of PMP with all subordinates
• Majority of subordinates achieve their performance objectives
• Staff turnover in branch of less than 10%
• High staff morale in branch as indicated by 0 staff grievances, and an average rating of “4” out of 5 on the employee opinion survey.
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General Standards of Performance
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General Standards of Performance
• Common to all employees
• Focus on the “how” of performance
• Tend to be more subjective than objective
• Focus on the organization’s valued knowledge, qualities and skills
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General Standards of Performance
“VALUED KNOWLEDGE, QUALITIES AND SKILLS”
For Example:
• Commitment to the organization’s mission
• Interpersonal skills and teamwork
• Initiative and problem solving ability
• Professionalism