Performance

Management

Dr. Prabath Karunanayake

July 03, 2022

 Employee management
Criterion Description Respon- Tool
sibility
Engagement Extent to which people Manager Employee
enjoy and believe in what + HR engagement
they do and feel valued initiatives
for doing it
Development Preparation to take up Manager Personal
more responsibilities and + HR Development
higher positions within Plan (PDP)
the company
Discipline Adherence to the system Manager Disciplinary
of rules of conduct or + Admin procedure
method of practice of the
company and law of the
land
 Criterion Description Respon- Tool
sibility
Attitude Sum of thoughts, Manager Motivational
feelings and behaviours + HR initiatives
towards the company, and positive
job, management, psychology
fellow employees and
customers
Performance Production of useful Manager Performance
goods and services for + HR Management
customers inside and System
outside the organization (PMS)
 What is performance ?
Being busy is not the same as
performing
Training, strong commitment and lots
of hard work alone is not
performance
Performance is producing useful
products (goods and services) for
customers inside and outside the
organization
 Performance pyramid
Bees Inc.

OUTCOME
PROGRAMME
Increased sales
of honey (Bees, Inc.)

Honey produced WORK UNIT

per hive (bee hive) OUTPUTS

Nectar
collected
EMPLOYEE
Flowers (bee) ACTIVITIES
visited
 Activities
These are the actions taken to
produce results and are generally
expressed using verbs
– Filing documents
– Developing software programs
– Answering customer questions
– Writing reports
 Outputs
These are the products or services of
employees and work unit activities
and are generally expressed using
nouns
– Orderly and complete files
– A functional software program
– Accurate guidance to customers
– Complete and accurate report
 Outcomes
These are the final results of a
company’s products and services
– Satisfied customers
– Increased sales/income/profits
 What is performance
management ?
A systematic approach to performance
improvement through an ongoing
process of establishing strategic
performance objectives; measuring
performance; collecting, analyzing,
reviewing, and reporting performance
data; and using that data to drive
performance improvement.
A process that consolidates goal
setting, performance appraisal and
development into a single, common
system
Ensures that the employee’s
performance is supporting the
company’s strategic goals
Redirects employee’s efforts away
from busyness toward effectiveness
Five stages
Performance planning (what to do and why
to do it)
Performance enabling (how to do it, wanting
to do it and being able to do it)
Performance measurement (to what extent is
the performance achieved)
Performance analysis (what are the causes
of good and poor performance)
Performance improvement (reward good
performance and rectify poor performance)
 Performance planning
The whole process should start with
clear outputs or results that the
employees need to achieve
These results shall be:
– Routine tasks (based on standards)
– Special tasks (based on objectives)
 Planning routine tasks
No Responsibility Activity Output
(behaviour/action) (indicator of results)
1 Recruitment, selection Adopt/develop job Availability of
and placement of new description comprehensive job
employees description

Place advertisement Completeness of

advertisement / No.
of responses
Screen the Suitability of the
applications and submitted
submit for perusal applications

2 Provide training for

existing employees

3
 Planning special tasks
No Project Description Target
date
1 Implementation of 5S Build awareness on 5S among the 31 Dec
in the head office head office staff; implement good
5S practices at the head office
premises including the vehicle
park and yard; and prepare action
plans for sustaining the system
2

3
 Performance enabling
Employee should be provided with all
factors that facilitate performance:
– Provide competencies (knowledge and
skills)
– Develop positive attitude
– Remove any possibility for poor
performance
 Causes for poor performance
Are any of the following applicable to the employee?
Employee does not know what he/she is supposed to do
Employee does not know why he/she has to do the task
Employee thinks that the task can/should not be done this
way
Employee is punished for doing task well
Employee is rewarded for not doing task well
Employee is rewarded for doing something else
There are no positive consequences for doing the task well
There are no negative consequences for doing the task poorly
There are obstacles for doing the task
There are personal problems for doing task
 Performance measurement
A comparison of the planned versus
actual
Numerical information that quantifies
input, output, and performance
dimensions of processes, products,
services, and the overall organization
Need to match and align performance
measures with business strategy,
structures and corporate culture
 Measuring routine performance
9-10 Excellent Performance significantly above
required standards
7-8 Very good Performance sometimes exceeds
required standards
5-6 Good Performance consistently meets
required standards
3-4 Satisfactory Performance sometimes meets
required standards
1-2 Poor Performance significantly below
the required standards
 Measuring project-based
performance
9-10 Exceeded the objective
7-8 Achieved the objective
5-6 Just short of the objective
>75% of the objective achieved
3-4 Short of the objective
50-75% of the objective achieved
1-2 Well short of the objective
<50% of the objective achieved
 Performance analysis
Process of studying the performance
of a particular scenario in comparison
to the objective which was to be
achieved
Can be due to one of the below
– People issues (men – why/what, how,
want)
– Process issues (method)
– Resource issues (material, machinery
and money)
 Performance improvement
The process of taking action to
– sustain and further improve good
performance
– improve to an acceptable level poor
performance
Main focus is causes of poor
performance
Look at potential, attitudes and
competencies
 Potential
Intelligence - Ability to understand the world,
think logically and abstractly and reason well
Creativity - Ability to form new combinations
of old elements to come up with unique
solutions to problems
Resilience - Ability to be successful, both
personally and professionally, in the midst of
a fast-paced and continuously changing
environment
Ambition - Knowing where he/she want to
go, how to get there and doing what it takes
to reach the goal
 Attitudes
Organizational commitment – Extent
to which an individual identifies with
an organization and its goals
Job involvement – Extent to which an
individual in immersed in his/her job
Excellence – Mindset to complete a
task to the best of one’s ability,
irrespective of the capacity
 Competencies
Knowledge – intellectual abilities to
perform a job (e.g. recall or recognition of
facts, procedures and concepts)
Skills – physical abilities (e.g. techniques
of execution)
– Transferable skills – skills that can be applied
at all work setting (e.g. communication,
numerical, interpersonal)
– Non-transferable skills – skills that can be
applied to one work setting (e.g. ability to
handle the TL)
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