Perfomance Management and Competency Mapping
Perfomance Management and Competency Mapping
Dr.Naveen Prasath.S
Performance Management
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Performance Management
• According to Ronnie Malcom – ‘Performance management may be
defined as a planned and systematic approach to managing the
performance of individuals ensuring their personal development and
contributing towards organisational goals.’
• According to John Storey – ‘Performance management includes the
whole cycle of agreeing goals and objectives (which may vary in their
degree of specificity), providing feedback, offering coaching and
advice and motivating staff to perform at a high level.’
Performance Management
• Performance management is intended to help people perform to the
best of their abilities in alignment with the organization's goals.
• It views individuals in the context of the broader workplace system
and encourages their input in goal-setting.
• Performance management focuses on accountability and
transparency and fosters a clear understanding of expectations.
• Rather than just annual performance reviews, performance
management provides ongoing feedback to employees.
Conceptual Aspects of Performance System
Performance Dimensions
• Dimension # 1. Result and Output:
• The most acceptable and measurable dimension of performance is result and output. It
describes the conditions of inputs which included raw material, working conditions,
process capabilities and talent of employees in the final form of product or service. It is
necessary to plan all the performance activities in a scientific and systematic manner so
that the desired result or output may be obtained.
• Dimension # 2. Input:
• This dimension deals with the activities to be accomplished by the employee.
Performance can be achieved if the nature of inputs can be managed without mistake,
because performance is a function of three sets of factors – ability, motivation and
organizational support.
• If anyone among these three factor is less the performance is to be poor.
• Employee Performance = Employee Competence + Employee Motivation +
Organisational Support
Contd….
• Dimension # 3. Time:
• Time is precious and very important dimension of performance. In the
current scenario of world, the performance management is time bound
otherwise the survival of organization is not possible in the future.
Performance of an employee in relation to a given role during particular
period of time under the set of circumstances operating at that point of
time. Therefore, time may become the target.
• Dimension # 4. Focus:
• Performance also has a focus dimension. For example in case of sales,
profits and new areas. Focus means attention, not only on own activities
but should also keep close watch on related activities.
Contd..
• Dimension # 5. Quality:
• ‘Quality is not destination but a journey’. Quality refers to doing the things right
from the first time rather than making and correcting mistakes in order to achieve
total customer satisfaction. It means quality is conformance to customer
requirements, not goodness. Higher is the quality greater is the satisfaction of
customers. It is the responsibility of each and every employee as well as
management to build a quality standard which provides reasonable customer
satisfaction at economical cost. Quality is the core dimension of performance
management.
• Dimension # 6. Cost:
• The ultimate principle of purchasing is the low cost with best quality. Therefore cost
effectiveness is another dimension of performance management. It implies the
capacity of a business unit to produce a given commodity at a lower cost through
more effective utilization of existing resources. It is the process of cost reduction by
improving efficiency of operations.
Contd…
• Dimension # 7. Output:
• Output relationships and analysis- It is relevant and essential to
understand the input-output relationships and analysis. The purpose
of input-output analysis is to find out the interdependencies and
complexities of the economy in order to determine the conditions for
maintaining balance between demand and supply. It describes the
inputs required to produce the outputs of different sectors of the
economy.
Objectives of Performance Management
System
1. Defining the organization’s goals and objectives
2. Clarifying expectations for employees and managers
3. Setting performance standards
4. Facilitating worker training and development of new job skills
5. Identifying barriers to achieving organization goals
6. Creating an administrative framework for decision-making
7. Boosting employee performance through an effective reward mechanism
8. Increasing job satisfaction and employee retention
9. Inspiring new ideas and suggestions
10.Encouraging friendly competition
Performance Prism
Performance Prism
• Stakeholder Satisfaction: Who are our stakeholders and what do
they want and need?
• Strategies: What strategies do we need to satisfy these wants and
needs?
• Processes: What processes do we need to execute these strategies?
• Capabilities: What capabilities do we need to operate our processes
more effectively and efficiently?
• Stakeholder Contribution: What do we want and need from our
stakeholders if we are to develop and maintain these capabilities?
Competency based PMS
• Companies will build goals into their performance management system
that are aligned with each quadrant of the balanced scorecard.
• You’ll want employees to trust the process and it’s a fair and honest
performance review.
Nominal Rating Scale
Binary Rating Scale
• Instead of time-consuming, long-term goal setting sessions held at the beginning of the PM cycle, effective
organizations are moving to more real-time expectations and goals that change as the situation changes.
• Learning and development is valued and understood as part of day-to-day work, rather than limited to
formal training that is often tied to annual reviews.
• Effective PM ensures employees receive meaningful, real-time feedback from managers, direct reports,
peers, and (when applicable) customers. Unlike scheduled comments or arbitrary ratings delivered
infrequently or as part of a mandatory evaluation, real-time feedback provides employees with the data
they need to continuously improve their performance day to day and week to week.
• PM training goes beyond providing managers with instructions on how to complete the PM steps, and
extends to training for all employees on effective PM behaviors (including how to set clear expectations,
how to give and receive informal feedback, and how to work collaboratively to solve problems).
• Ratings are simplified and streamlined to minimize the time and cognitive load demanded by complicated
systems that do not distinguish between employees well.
Module 3
Team Performance Management
• Communication is Key
• Reward behavior that advances the goals of the group, rather than the
individual.