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PM System - Removed

The document discusses performance management, defining it as a process for establishing shared goals and developing employees to achieve goals. It contrasts performance appraisal with performance management, noting that continuous feedback and strategically linked criteria distinguish performance management. The document then outlines the basics of performance management systems, including communicating objectives, setting targets, reviews, and considering factors like compensation, development, and succession planning.

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joahn.rocreo1234
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18 views

PM System - Removed

The document discusses performance management, defining it as a process for establishing shared goals and developing employees to achieve goals. It contrasts performance appraisal with performance management, noting that continuous feedback and strategically linked criteria distinguish performance management. The document then outlines the basics of performance management systems, including communicating objectives, setting targets, reviews, and considering factors like compensation, development, and succession planning.

Uploaded by

joahn.rocreo1234
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Performance

Management
System
Performance Management
Definition
A process or set of processes for establishing shared
understanding about what is to be achieved, and managing
and developing people in a way which increases the
probability that it will be achieved in the short and longer
term.
Overall Aim
To establish a culture in which individuals and groups take
responsibility for the continuous improvement of business
processes, and of their own skills and contributions.
Performance Appraisal vs.
Performance Management System
The terms ‘performance appraisal’ and ‘performance
management’ are sometimes used synonymously, but
they are different. Many companies claim to have put in
place a performance management process, but what
they have in reality is the traditional performance
appraisal. Continuous feedback and strategically linked
performance criteria are the two important
distinguishing characteristics of performance
management.
Performance Management
Managing employee performance deals with an
organization's strategy, policy and practices with respect
to establishing performance expectations for its
employees, along with measuring and monitoring the
results.
A comprehensive performance management system can
play a strategic role in attracting and retaining key
employees and help improve a company's overall
business performance.
Performance Management Cycle
Planning
What must be achieved?
To what standard?
What competencies are needed?
What development is needed?

Evaluation Progress Review


How did I do? How am I doing?
How can I do better? Can I do better?
What have I learned? Does anything need to change?
Considerations to look into:
● Strategic planning
○ Long-term workforce planning models use performance management
measurements to assess the "quality" of the workforce and whether the
organization is attracting and retaining talented workers.
● Total compensation
○ Most organizations use performance measurements as the basis for
pay-for-performance compensation processes.
● Individual and team development
○ An individual development plan (IDP, also known as a career development
plan) is often used in conjunction with the performance review process as a
final documented step to assist employees in goal setting and individual
development that will serve to advance their career and promotional
opportunities.
Considerations to look into:
Succession Planning
Performance data over time are
vital inputs for long-term planning
for future organizational
leadership.
HR Technology Systems
Many organizations use software
applications to manage the
processes associated with goal
setting, performance review and
performance improvement plans.
Performance Management
Communication of a vision of objectives and values to
all employees

Setting departmental and individual performance


targets linked to business objectives
The basics of
Regular performance reviews throughout the year
performance
management Formal staff appraisal using one or more of the
following:
• competencies • accountabilities
• objectives • output levels
• skills acquisition • self assessment
Reflects an organization’s key values
with regard to management of people.

The basic A system in place for the review of


individual performance.
elements of
performance ● Clear definition of job
● Mutual objective setting
management ● Clearly understood reward system
● Establish training needs
● Development and succession
planning
● Identification of high flyers
The basic ● Strengthening of manager/
elements of subordinate relationships
● Direct impact on motivation
performance ● Vehicle for improving competence at
management all level
● Vehicle for culture change
Performance
Management
Process
Key Results Indicators

3 Types of
Performance Performance Indicators
Measure

Key Performance Indicators


● Result Indicators may be financial or
nonfinancial in nature.
Key ● KRI’s inform if end goals are being/have
been met, along with the progress of
Results these goals/objectives.
Indicators ● KRIs are overall company updates; they
will let you know if things are going
(KRIs) according to plan or have gone awry.
● They will not, however, tell you why.
● Performance Indicators are nonfinancial in
nature (i.e., number of calls made as
opposed to revenue generated from calls).
● They’re often measured on a regular
Performance cadence (daily, weekly, monthly, etc.) and
Indicators are the result of an individual activity.
● PI’s provide information on what action
must be taken to improve and are useful
for creating strategies and aligning goals.
● These indicators are:
– Often leading, or forward-looking
– Understood by all employees
– Easily actionable
● The definition of a KPI is a
measurement or indicator that helps
an organization understand how well
Key it is performing in relation to its
Performance strategic goals and objectives.
● A KPI shows whether an organization
Indicators is on track or not.
(KPIs) ● Focus on the actions that lead to the
results.
● KPIs are the foundation from which
successful strategies are built; they
are the steps that take us to our KRIs.
Key
Performance
Indicators
(KPIs)

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