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Perfomance Management and Competency Mapping

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100% found this document useful (1 vote)
46 views89 pages

Perfomance Management and Competency Mapping

Uploaded by

Daisuke Yeger
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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PMCM

Dr.Naveen Prasath.S
Performance Management
?
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.

• For example, the IT department might have business goals related to


supporting customers (Customers quadrant), providing results within
budget (Financial), creating software solutions to support processes
(Internal Business Process) and ensuring it has the talent to create
innovative software solutions (Learning and Growth). These goals for
the IT department would then be cascaded down to each group and
individual performance plan.
Competency based Performance Management
• It is sometimes hard for employees to relate their work and
performance to the organization’s overall success. For example,
employees in roles like cleaners, maintenance workers, retail and
sales staff, etc. often have difficulty understanding the importance of
their work to the organization.
• Many organizations reinforce both goal attainment and competencies
in the performance management system. For example, a company
might include both Customer Service goals (from the Balanced
Scorecard) and the competency Customer Service in the performance
management system.
Electronic PMS

EPM – a Possible Solution Electronic


Performance Monitoring (EPM) is “the
practice of using computers and/or
telecommunication technology to collect,
analyze, and report information about
employee performance” Distance Cost
Timely feedback Objective data are the
Advantages
Disadvantages -Employee stress Employee
dissatisfaction Emphasis on quantifiable
performance measures
Effective Performance Management System
1.Communicates to individuals how they contribute to
organizational objectives and how they will be
evaluated
2. Aligns employee and organizational goals for
resource efficiency, greater focus, and elimination of
non-value adding activities
3.Provision of a comprehensive system for ascertaining
the ‘what’ and ‘how’ of organizational operations
4.Establishes criteria of measuring progress against
goals and adjusting as necessary
Employees Development Program
The new performance equation

• Both engagement and productivity drive performance—and they are


mutually reinforcing

• Engagement x Productivity= Performance

• Research shows that organizations that doubled down on employee


engagement in times of economic uncertainty performed twice as well
financially as organizations that deprioritized it—with the most engaged
outperforming the S&P 500 at the end of the year.
• Companies with highly engaged workforces had better financial outcomes.
Performance Evaluation – Module 2
Performance Management Objectives
• At the end of the performance period, managers and employees meet to
discuss progress made as well as any changes that may have shifted the
priorities and goals discussed at the beginning of the performance period.
• 1) to provide adequate feedback to each person on his or her
performance;
• (2) to serve as a basis for modifying or changing behavior toward more
effective working habits;
• (3) to provide data to managers with which they may judge future job
assignments
• (4) It makes them to comprehend on KRA’s to accomplish and deliver
outcomes.
Pros and Cons of Performance Appraisal
• A performance appraisal should motivate an employee to better performance by helping
him understand why he needs to move away from poor performance or toward critical
objectives.
• Rating Scales
• The graphic rating scale and behavioral rating scale are two common rating scale
appraisal techniques. With the graphic scale, employees are simply assigned a score on
criteria important to job success. The behavioral scale focuses on actual behaviors.
Rating scale can lead to positive or Negative bias.
• Narrative Techniques
• The narrative technique and critical-independent method involve more details analyses
of job performance. You write an essay assessment of performance with the narrative
and keep a running log describing positive and negative performance and behaviors with
the critical-independent method. He might interpret the evaluation too positively or too
negatively relative to a scoring system.
• Comparison Methods
• The multi person comparison method and forced distribution methods are
two common comparison appraisal techniques. The risks of these methods
include the potential of in-fighting and the lack of harmony you might see in
your employee ranks.
• 360 Feedback
• A popular contemporary appraisal technique is the 360 degree feedback. In
this method, employees are evaluated by colleagues, customers,
subordinates, other interested parties an supervisors.
• It also allows a better chance to compare different perspectives in the
evaluation process. Biased evaluators, poor alignment with goals and
negative employee feelings are among cons of this approach.
Performance Execution
• Benefits: Performance assessment has been described as a way to assess and
foster more complex and higher-order learning. It requires students to be
active, and to apply critical thinking and problem-solving skills. This leads to
more motivated and engaged students and improved learning. It is also a
more inclusive assessment approach for students struggling with written
exams.

• Challenges: Performance assessment has shown to be difficult to design and


time-consuming to deploy. It is also often difficult to discriminate between
poor, average and excellent performance. Teachers have also found
performance assessment to be subjective, especially compared to the
objectivity of determining whether a reply is simply right or wrong.
Steps in the Performance Review Process
• Manager and employee review job description and update as needed
• Employee submits written Self-Assessment to manager
• Manager solicits multi-rater feedback from colleagues, customers, and direct
reports
• Manager documents performance in written Annual Performance Review
• Annual and mid-year conversations are held to align and adjust expectations
and goals
• Manager and employee regularly discuss progress towards performance and
development goals
Performance Renewal and Reconstructing
• The performance management process is an ongoing continuous process.
• Once the performance has been reviewed and end, then the cycle starts for
the next performance appraisal.
• It should be again align with next year organization mission, goals and
objective and integrated with departments goals In facts, it is a process
which starts all over again which needs to be discuss, design, develop ,
executed and review again.
• This is necessitate because the external environment of company like
market, customers , competitors , suppliers etc. also revolved and all
subsequent changes has to prerequisites for performance planning and
setting strategic objectives of the organisation.
What is a Performance Rating Scale?

• A rating scale is one of the most common measures of employee


performance or achievement.

• There is no one-size-fits-all answer when picking the “best” rating


scale for your business. It all boils down to team buy-in.

• You’ll want employees to trust the process and it’s a fair and honest
performance review.
Nominal Rating Scale
Binary Rating Scale

Deloitte collects binary data in 2 of the 4 questions on their


review form.
Google collects binary data on their upward reviews of
managers.
Ordinal =Ordered list
Likert Scale
Semantic Scales
Semantic Scales
• Semantic scales are similar to Likert scales but present two extremes
with unnamed options in between.
• For example, you might ask an employee to rate a recent project
between success and failure with 7 options in between
UC Berkeley

• The University of California, Berkeley Human Resources Department


currently conducts performance appraisals with a 5-level rating scale,
ranging from Exceptional to Unsatisfactory.

• A Level 5 (Exceptional) rating is said to be achievable,


but given fairly infrequently.
• High-performing employees often receive a Level 4 (Exceeds
Expectations) or Level 3 (Meets Expectations) rating.
• Level 2 is Poor and Level 1 is Unsatisfactory
Research findings
Huntington Ingalls

• This company uses a rating system that is both numerical and


alphabetical, focused on whether or not employees meet company
goals.
• Their 5-point scale assigns abbreviations that coincide with each
numerical ranking:
• 5 = FE (Far Exceeds)
• 4 = EX (Exceeds Expectations)
• 3 = ME (Meets Expectations)
• 2 = DR (Development Required)
• 1 = IR (Improvement Required)
Harvard

• Harvard makes use of multiple rating scales within their organization,


including overall performance ratings of employees, goals,
competencies, and direct report ratings.
• Overall performance ratings are given on a 5-point scale, observing
employees with performances that are:
• 5 = Leading
• 4 = Strong
• 3 = Solid
• 2 = Building
• 1 = Not Meeting Expectations
Research findings
• Of the managers surveyed, 95% reported dissatisfaction with their PM
system.
• Of the employees surveyed, 59% felt PM reviews were not worth the
time invested, and 56% reported they do not receive feedback on
what to improve.
• Of the HR department heads surveyed, almost 90% reported their PM
systems do not produce accurate information.
Performance Management Process
• Overview of the PM process and how to improve it;

• Detailing specific aspects of the PM process, such as interventions


designed to improve individual employee performance; and

• Suggestions on how to improve organization-level performance


through HR practices.
Past of PM
• Over the last 20 years, researchers have expanded ideas about
performance management systems from simply rating or ranking employee
performance to comprehensive programs that align staffing, performance
feedback, incentives, and supervision with the strategic goals of
organizations.
• While the number of activities that qualify as valid approaches to PM have
increased over the years, most of the research is descriptive and does not
yet provide empirical insight into what works best (and for whom).
• These limitations notwithstanding, descriptive research can still provide
interesting insights into the PM process and how to improve it.
Present PM
• A bright future awaits organizations that are able to learn from the past
and correctly identify how best to move their current PM practices
forward. Over 100 years of PM research suggests that, although we have
yet to find the perfect recipe to amplify individual and organizational
performance, we do know that the most effective PM systems will
• (a) set clear expectations and goals, and enable revisions as the
circumstances shift,
• (b) provide frequent opportunities for informal and formal feedback, and
• (c) drive specific behaviors that motivate and inspire employees to
improve their performance.
Future of PM

• 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

Agile Team performance


environments management is a set of
require rapid, interventions on individual,
multisource team and organizational level
performance to improve the way team
feedback and members work together
assessment to towards a mutually agreed-
enable targeting upon goal.
of skill
proficiency and
development
activities.
Skills-based talent practices continuum
Effective ways of Managing Team
Performances
1. Set effective and clear goals
2. Select capable leaders for each team
3. Schedule training
4. Ensure communication is available and reactive
5. Align team goals with organizational or familiar goals
6.Encouraging Team Culture
7. Regular Meetings
Virtual Teams
Managing Virtual Teams
• The Importance of a Flexible Management Style

• Communication is Key

• Setting Expectations for Success

• Celebrate your team’s successes!

• Relationships still matter


Prerequisites for Virtual Team Managements
Effective Team Leader
1. Reinforce Transparency Throughout the Team

2. Create Communication Guidelines

3. Invest in Continuous Communication and Feedback

4. Create Ethical Virtual Leadership Guidelines

5. Recognize and Reward Good Remote Leadership


Remote Working

Companies instead should focus on


what workers need to thrive over the
long term, balancing material
offerings with opportunities to grow,
connection and community, and
meaning and purpose
Remote Working
1) Acknowledge the possibility that all or part of
your workforce may need to work remotely.
2) Map out jobs and tasks that could be affected.
3) Audit available IT hardware and software and
close any gaps in access and adoption.
4) Set up a communications protocol in
advance that outlines: how to reach everybody
(e.g., all contact information in one place,
primary communication channels clarified—
email, IM, Slack, etc.); how employees are
expected to respond to customers; and how and
when teams will coordinate and meet.
5) Identify ways to measure performance during
a flexible response to the coronavirus that
could inform broader change
Remote Working Objectives
1.Clear purpose: One Single Purpose
2.Clear roles: There were clearly defined teams, and leaders were
identified in each team.
3.Utilising skills:
4. Reward and recognition
5. Empowerment and ownership
6. Challenge:
7. Making a difference
Prerequisites of Remote Work
• Successful Remote work requires individuals and
groups to address such basics as technology and
equipment, information security, ergonomic
considerations, employee wellbeing, non- work –
including dependent-care – while teleworking,
and work location.
Role of Team Leaders
• Communication
• A high-quality communications plan will include considerations of which organization and
approved technologies and tools will be used. It will also address: accessibility/inclusivity,
formal and informal communications, expectations of team members and mutual
accountability, evaluating communications success, and guarding against the signaling of
constant work
• Managing Teams: At its core, managing team performance is about setting expectations and
measuring performance outcomes in relation to these expectations, but empowering and
managing hybrid teams does require some extra insight.
• Measuring Success: Team leader is successful when teams manage productivity by setting
goals and timetables and defining deliverables clearly. Managers and employees should
consider whether the quantity, quality, and timeliness of work has been maintained,
enhanced, or diminished. They should also consider how the work arrangement has affected
stakeholders, whether the arrangement has encumbered or streamlined processes, and
whether projects has led to new opportunities or helped meet the University’s overarching
goals
Drivers of Performances
• Effective leadership is by far the most important driver and it is linked with all
the following ones. Effective leaders need a crystal-clear awareness on their
actions’ and behaviors’ impact on an organization. It is all about consciously
being a role model.
• Purpose is the second most important driver of performance. It is every
manager’s responsibility to ensure everyone in their team understands why
their work is meaningful and “has a purpose”. Ideally, the leader helps everyone
to take real pride in their contribution to overarching company goals
• Ongoing education obviously also drives performance. All employees needs to
fully understand what is expected of them. Once that is accomplished,
everyone needs to receive the training and ongoing support to develop in their
respective roles. This requires patience and persistence by leaders.
Designing Performance Appraisal Programs

1.Define the purpose and objectives: Main goals of the system


2.Choose the methods and criteria: Self Assessment,360 feed back ,rating
scales, Peer reviews,Behavioural scales
3.Communicate and train: Training and guidance about the system
4.Implement and monitor: Informed decisions on the basis of data
collected from appraisal forms and system.
5.Evaluate and improve: Bench mark with Industrial standards with
consistency and fairly as well as to get feed back from stake holders with
an approach to strengths and weaknesses of the system
How do you conduct Appraisal programs?
• 1.Preparation is key - both for the employee & the person running the
appraisal.
• 2. Create an agenda-Just like in any other meeting, an agenda will help to
guide the direction of the discussion. Agendas can help you ensure you cover
all you need to in an appraisal, including next steps.
• 3. Discuss successes & challenges
Ask the employee for their thoughts on what they think went well during the
review period, along with anything they struggled with
How do you conduction Appraisal programs?
• 5. Agree actions
• With the employee’s future development in mind, both the employee
and the manager should come away from the performance review with
an action plan. This needs to be an achievable plan with actions for each
individual, including deadlines, to be able to facilitate the growth and
development of the employee.
• 6. Summarise the meeting & provide further support
• Conclude the appraisal by summarising what has been discussed and
who is responsible for actions moving forward. It would also be a good
idea to plan when you will meet again for the next performance
appraisal.
Individual Appraisals
1.Individual performance appraisals are the traditional appraisals that
measure individual performance against measurable objectives.
2.Individual performance appraisals provide an opportunity for
employees and supervisors to share ideas and reach mutually agreed
upon objectives.
3.Individual performance appraisals focus on the skills required to
perform the current job and skills that must be acquired for promotion.
Individual performance evaluations are tools to determine monetary
compensation.
4.This type of performance appraisal provides feedback and recognition
to the individual.
Team Appraisals
1.Team performance appraisals assess an individual's contribution to
the team.
2.Team performance appraisals are appropriate to support an
organization's efforts to transition from an individual-based
organization to an team-based organization.
3.Team performance appraisal, for example, assess whether the team
met its goals, produced a quality product and worked well together
Feed back Mechanism
• The feedback mechanism is the mechanism of the body to maintain
the levels of hormones in the body within the desired limits.

• An increase or decrease in the levels of the hormones triggers the


feedback mechanism.

• The body has two types of feedback mechanisms, positive and


negative feedback mechanism.
Team and Individual Rewards
• As a manager, it’s your job to foster and encourage team identity.

• Research shows that even selfish individuals become cooperative — and


possibly altruistic — when they feel that they’re part of a group. So how do
you strengthen your team’s identity?

• Reward behavior that advances the goals of the group, rather than the
individual.

• Offer your team bonuses, recognition, raises, flexibility, and opportunities


based on the entire group’s performance.
Team and Individual Rewards
• To avoid free-riding, individual rewards should be given to individuals
who make important contributions to the team’s success.

• This rewards indispensable team members — the unsung heroes who


work late, cover for colleagues, and enhance the success of the group.
1.Align objectives with organisational strategy
2.Set standards, criteria, indicators
3.Choose evaluation methods
4.Assess the suitability of quality/customer care programmes
5. Build performance appraisals into the business planning cycle

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