What is Performance Management Process?

Performance management process is …

➢ a communication process by which managers and employees
work together to plan, monitor and review an employee’s
work objectives and overall contribution to the
PERFORMANCE organization.
MANAGEMENT ➢ NOT just an annual performance review, BUT a continuous
PROCESS process of setting objectives, assessing progress and
providing ongoing coaching and feedback to ensure that
employees are meeting their objectives and career goals.

➢ The objective is to maximize the value that employees

9 create by improving performance. (Holistic) 10

What is Performance Management Process? What is Performance Management Process?

Performance review… An effective performance management process is centered
➢ A measurement of employee performance over a specific on three elements:
period of time. Points discussed by both parties are 1. holding structured reviews,
documented. An action plan and next steps that are put in 2. setting goals, and
place at the end. 3. providing continuous feedback.

➢ The purpose is to learn more about the strengths and

weaknesses*, of the employees and offer constructive
feedback for skill development in the future, and assist
with goal setting.

➢ *to know the employee's achievements and identify growth

opportunities, through open communication and 11 12

constructive feedback,

What is Performance Management Process? What is Performance Management Process?

An effective performance management process is centered An effective performance management process is centered on
on three elements: three elements:
1. holding structured reviews. 1. holding structured reviews. A well-structured performance
➢ employees are evaluated based on a set list of review requires the following:
➢ A one-on-one formula between an employee and their direct
performance criteria using a scale (Likert) which is aimed
manager.
to provide detailed insight into specific areas of ▪ Scheduled communication process.
performance. (recall: EMPLOYEE ENGAGEMENT: job ▪ One-on-ones are critical for managers and employees to
satisfaction, job motivation, job performance etc) drive alignment, create a culture of continuous feedback,
2. setting goals, and and foster an engaged, high-performing workforce.
3. providing continuous feedback. Managers should lead the employee into talking.
▪ Employees can use one-on-ones as an opportunity to clarify
their responsibilities, grow their skills, and check in on team
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collaboration. 14
 What is Performance Management Process? What is Performance Management Process?
Employees on One-on-One Managers/Supervisors on One-on-One
The assumption is: manager knows what you’re dealing with on a A follow up discussion of the last appraisal. Good points and bad
day-to-day basis. But BESIDE supervision, managers have to juggle points.
jam-packed schedule, they have their own workload. MANAGERS
may have laid out the best way work can be done BUT they may not Update on the progress of a project to include successes and
be aware of WHAT IS WORKING and WHAT IS NOT WORKING. problems.
Managers need employees feedback as well.
New benefits and programs (if there are any) for employees.
“Employees should tell the supervisor problems that prevent them
from realizing their objectives or slow them down. (the
bottlenecks). One-on-ones should feel like a safe space to talk
through any current challenges.‍

Discuss certain goals related to your position, or even your new

goal.
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What is Performance Management Process?

An effective performance management process is centered on
three elements:
1. holding structured reviews. A well-structured performance
review requires the following:
➢ A one-on-one formula between an employee and their direct
manager.
➢ A measurement of employee performance over a specific period
of time.
➢ Points discussed by both parties are documented.
➢ An action plan and next steps that are put in place at the end.
➢ A regularly occurring schedule (ex: every quarter or every year)

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➢ The performance management ➢ Benefits of utilizing this

process cycle is a model that method include increased
allows management and competitiveness, more
employees to better achieve structural flexibility, and
organizational goals through a higher employee motivation.
structured process of ➢ The model is a year-long
employee development. process, ending with a
➢ It utilizes a continuous four- performance review.
step procedure of planning,
monitoring, reviewing and
rewarding.

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 ➢ Thru the cycle, employees are In the planning stage, the groundwork for
expected to be more aligned success is laid down.
with the goals of the ➢ Initial meeting of the management team to
organization, and would be decide the organization’s goals and
able to integrate their own objectives for the year. Goals should be
objectives with the larger clearly outlined using the SMART method.
objectives of the ➢ Managers (FLM) discuss with the
organization. employees the details of the meeting.
➢ The PMPC acts as a roadmap PLANNING ▪ Details include the overall strategy for
w/c will help the employees the business, the personal objectives for
and the organization achieve all employees and teams, such as:
their objectives. specific tasks, targets, actions and
behaviors.
▪ Without these information, planning with
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employees will not be effective.

Planning is a collaborative process. What is an employee development (ED) plan?

In the beginning stage of the performance ➢ ED is a process of improving employees’
management cycle, management gets an existing competencies and skills and
opportunity to identify areas of training and developing newer ones to support the
development in which an employee needs to organization’s goals.
strengthen and set goals that will achieve ➢ ED requires investment (time, effort and
that. financing) from the company, those
Creating an employee development plan* will investments will more than pay off over
PLANNING demonstrate that management is actively
PLANNING the longer-term.
working with the employee to assist them in
becoming a more skilled and valuable player
in the organization.

What is an employee development plan?

➢ Monitoring is a key function in achieving Towards the end of the cycle, the
the goals set out in the planning stage. management does a review.
➢ It means consistently measuring If the manager or supervisor worked well
performance (against METRICS) and with the employee in the first two cycles,
providing ongoing feedback to employees then the third one should be nothing more
and work groups on their progress. than a formality between the manager and
➢ Done on a regular basis: to check the employees.
progress, offer help if needed, assist in
MONITORING solving any problems that might have
REVIEWING
arisen, and adjust goals, if necessary. and
DEVELOPING
 The review aspect of the cycle focuses on Development entails looking at the cycles
how well the employee or the team did in before and asking these questions:
achieving their goals. It will cover questions ➢ If the employee had the required skill set
like: to perform their duty.
➢ Did they underachieve or overachieve? ➢ How much had they learned from their
➢ What caused them to either underachieve experience?
or overachieve? ➢ Was the training assigned at the beginning
➢ Did the organization provide adequate of the cycle of use in completing the task?
REVIEWING support for them?
REVIEWING ➢ What other skills should they look to
and ➢ Are the processes used the very best, or and learn?
DEVELOPING could they be improved? DEVELOPING The aim of the development aspect of the
➢ Was the original goal realistic? performance cycle is to gauge how well they
have developed and what further training
they will need to improve.

This stage is where management gives its ➢ This action sends the message that the
ratings to teams and employees. company values those who put in the work
and get results.
➢ Management should take appropriate ➢ It also signals to employees that the
action against employees who didn’t meet organization appreciates their input.
their goals. ➢ This last stage of the performance cycle
▪ It may be a warning, a fine (if such is essential because not acknowledging
an agreement exists), or termination your employees can demotivate them, and
REWARDING if it would be impossible to work
REWARDING the worst-case scenario leads to
together. resignation. It can also reduce
▪ On the other hand, for employees productivity, knowing that management
who either meet their targets or will not reward their efforts.
overachieve, it is crucial to reward
them fairly.

Managers should be trained to give and

receive useful feedback and are coached in
the elements of a continuous process. They
are critical to the success of the
organization's performance management
program. They help motivate, engage and
Roles of develop staff.
Manager in Top managers play a lead in the entire
Performance process by setting trends for the lower
managers and acting as role models for the
Management employees. Their responsibility is to design
Process policies which ensure an efficient
management of performance in an
organization and to define and act upon the
core values relating to performance.
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 Top managers are expected to: Line Managers in Performance Management
➢ Communicate the organization’s mission ➢ provide leadership from the top.
and values to its customers and employees. ➢ communicate with the employees about the
➢ define the work expectations and importance of performance management in
communicating to everyone for ensuring driving successful results and how it is a
success in the achievement of business part of their responsibility.
Roles of goals and facilitating an overall Roles of ➢ reduce the pressure from the line
Manager in performance improvement. Manager in managers by making the process an
➢ keep the employees informed about their
Performance progress towards the achievement of goals
Performance ongoing one instead of an annual review.
➢ Involve themselves in the design and
Management and suggesting corrective actions for non- Management development of the performance
Process achievement of performance Process management processes by representing
➢ establish a shared belief among the them in pilot studies.
employees regarding the importance of
continuous improvement in performance.

➢ Meet with your supervisor at the beginning ➢ Consider the feedback you receive to be
of the performance management year to suggestions for improvement and
discuss their job duties and how they fit development of new skills.
into the organization’s goal. ➢ Talk to your supervisor about your
➢ Clear from the supervisor organization’s progress as well as any obstacles to
expectations. improvement.
Roles of ➢ Take responsibility for own continuous
Roles of ➢ Monitor own performance by asking others
Employee in performance improvement and Employee in to tell you how you’re doing and by keeping
Performance development. Performance notes on your progress.
➢ Make Plans and follow through to meet the ➢ Participate in the review meeting by
Management requirements of your job duties and Management showing your supervisor any notes
Process behaviors. Process you’ve made about your accomplishments
➢ Periodically throughout the year, ask the and by suggesting things that might help you
supervisor for feedback on performance. during the next performance management
process year.