Unit 4 Flashcards
Key driving force to employee’s productivity, development, rewards, and awards
Performance management system
Effective performance management system
Business aligned
Culture aligned
Maturity aligned
User friendly
Process focused
A systematic process for improving organizational performance by developing the performance of individual & teams
Performance management
A roadmap for creating a high performance organization through the integration of organization’s vision, values, systems and people
Performance management system
Performance management system
Performance standard
Performance measurement
Quality improvement process
Reporting progress
Objective of PMS
Drive individual and hence organizational performance
Develop organizational culture and individual capabilities
Measure performance in a more objective and systematic manner
Facilitate effective HR and operational decisions in line with organizational strategy
A change in the structure of your company
Operational change
Implementing performance management process
Performance management policies
Performance objectives and standards
Performance appraisal process
Managing underperformance and discipline
Reward and remuneration strategy
Development plans and learning and development activities
Typical PMS Cycle
P M A C
Planning
Monitoring
Assessment
Consequence
Pitfalls/Limitations of performance management
P P P C C
Performance appraisal is a perplexing activity
Performance expectations are unclear or misunderstood
Putting process over purpose
Communication gap
Considered only as a management directive
Contributions of performance management
Motivation to perform is increased
Self esteem is increased
Managers gain insight about subordinates
The definition of job and criteria are clarified
Self insight and development are enhanced
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Benefits of PMS
Better communication
Better workflow management
Develops a conductive learning and development environment
Fair, reliable, and secure
Disadvantages of PMS
Risk of internal competition
Favoritism
Time consuming
Managers’ dilemma
Job dissatisfaction
Unjust demands of managers and employees
Damaged relationship
Increased turnover
Market trends of performance management software
No more annual performance review
Data-driven employee performance management
Artificial intelligence
Cloud-based performance management software
Self-service portal for employees
Employee experience
Performance management trends 2020
Market shift and growth
The human experience
Data driven performance management
Increase in cloud usage
Mental health & awareness
Traditional vs Next Practice
Emphasis on the past — emphasis on the future
Annual performance review — regular check-ins
Static system — fluid system
Manager in the lead — employees take ownership
Focus on weaknesses — focus on building strengths
Traditional / Modern: guiding principle
Individualistic — organization oriented
Traditional / Modern: appraisal styles
Directional, evaluative — facilitative, coaching
Traditional / Modern: frequency
Annually — frequently
Traditional / Modern: criteria
Objective measurable criteria — vague criteria
Traditional / Modern: assessment
Supervisor assessment — self and peer assessment
Competition starts cropping up within a team when employees are compared with each other within the same parameters. This leads to internal politics, pulling down the overall performance of the team.
Risk of internal competition
Managers are also human beings who at times fall into the prey of doing favoritism with their subordinates which lead to internal cold war within the team
Favoritism
The entire appraisal process needs an eye for detail in understanding every employee current performance, reason behind their drawbacks, career aspirations which delays the process
Time consuming
Implementation of technology for driving the PMS results into high expense of an organization
Expensive
Sometimes the managers get into a dilemma in taking decision between two best performers in a theme, which may lead to serious dis-engagement and politics starts arising.
Managers dilemma
When the employee does not get the desired hike in salary, after the appraisal process, it leads to dissatisfaction in their job. This happens primarily because of the managers inability to convince and justify the ratings given to an employee.
Job dissatisfaction
At times, unjustified, impractical, demands or expectations are made, not only from the manager but also from the employees during administering the appraisal process due to which unfair standards and ratings are given which have an adverse effect on the performance
Unjustified demands of managers and employees
If the appraisal interviews are not conducted properly justifying the pros and cons of an employee, it leads to an argument, thereby damaging the relationship of a manager and an associate
Damaged relationship
Increasing internal competition, manager’s favoritism and not fulfilling the expectation of the employee’s leads to dis-engagement resulting into increase in staff turnover
Increased turnover
Modern performance management requirements
Goals
Planning
Review collection
Analysis
Decision making
PMS framework
Performance goal setting
Monitoring performance
Developing capacity to perform
Evaluating performance
Rewarding high-performance
Identify key result areas (KRA), KPI, performance targets, and competencies
Performance goal setting
Establish monitoring system that provides regular and timely feedback
Monitoring performance
Provide learning and development interventions, not limited to training, to enhance performance
Developing capacity to perform
Objectively evaluate performance using scorecards and critical incidents
Evaluating performance
Establish rewards and recognition initiatives to promote positive behaviors and results
Rewarding high performance
