PERFORMANCE MANAGEMENT & COMPETENCY

MAPPING
-Definition of performance Management, the
performance management contribution, dangers of
poorly implemented PM systems, aims and role of PM
Systems, characteristics of an ideal PM systems,
performance management process, performance
management and strategic planning.
PERFORMANCE MANAGEMENT
Definition of performance Management:
Sally – Sales Manager.
Performance Management is a Continuous process of
identifying,mesuring,and developing the performance of individuals and
teams and aligning performance with the strategic goals of the
organization.
a.Continuos Process –
•Ongoing.
•setting goals and objectives Observing.
•GRF.
b.Alignment with strategic goals.
• Activities and o/p are congruent.
•Competitive advantage.
•direct link.
PERFORMANCE MANAGEMENT
• Distinguish between PMS & PA ( SW of employees).
• Merrill Lynch – Worlds leading financial management and advisory
companies.
• Conversation.
• January employee and Mgr set objectives.
• Mid-year review.
• End of the year review – evaluate progress & identifies areas that need
improvements.
• Siemens – German based.
• Setting clear measurable goals.
• Implementing concrete actions.
• Imposing rigorous consequences.
• Explicit employee contribution.
• Link between performance objectives and organizational goals
• Shared understanding.
• Survey conducted by Watson Wyatt.
PERFORMANCE MANAGEMENT
The performance Management contribution:
1.Motivation to perform is increased- feedback, knowledge.
2.Self-esteem is increased – Fulfills a basic human needs.
3.Managers gain insight about subordinate – Competency for
managers .
4.The definitions of job and criteria are clarified- behaviors
and results required of their specific position .
5.Self-insight and development are enhanced – development
activities & define future career path.
6.Administrative actions for more fair and appropriate – valid
information, air and credible basis.
7.Organizational goals are made clear – goals cascade down.
PERFORMANCE MANAGEMENT

The performance Management contribution:

8. Employees become more competent – solid foundation
for establishing developmental plans.
9. There is better protection from lawsuits.
10. There is better and more timely differentiation between
good and poor performers.
11.Supervisor’s views of performance are communicated
more clearly – Judgements,accountability.
12.Organizational change is facilitated.
13.Motivation,commitment,and intentions to stay in the
organization are enhanced.
DISADVANTAGE/DANGERS OF POORLY IMPLEMENTED
PM SYSTEMS
1. Increased turnover – Unfair, physically or psychologically.
2. Use of false or misleading information – absence of std.system,
fabricated information.
3. Lowered self-esteem –inappropriate and inaccurate way of
providing feedback.
4. Wasted time and money – resources.
5. Damaged relationships – permanently.
6. Decreased motivation to perform – performance not translated
in to tangible or intangible.
7. Employee job burnout and job dissatisfaction – invalid and
perceived unfair, irritated.
8. Increased risk of litigation – Expensive law suits.
9. Unjustified demands on manager and employee’ resources –
Competing obligations and allocating of resources.
DISADVANTAGE/DANGERS OF POORLY IMPLEMENTED
PM SYSTEMS
11. Varying and unfair standards and Individual ratings – across
and within units.
12. Emerging biases – replaces organization standards.
13. Unclear ratings system – poor communication regarding how
the ratings are generated and how the rating are translated in
to rewards.
PURPOSES SERVED BY A PERFORAMNCE MANAGEMENT
SYSTEM
• STRATEGIC: To help top management achieve strategic
business objectives , reinforcement of behaviors.
• ADMINISTRATIVE: To furnish valid and useful information
for making administrative decisions about employees,
salary adjustment, promotions and retentions.
• INFORMATIONAL: To inform employees about how they
are doing and about the organization’s and the supervisor’s
expectations.
• DEVELOPMENTAL: To allow managers to provide coaching
to their employees, feedback cultures & SW.
PURPOSES SERVED BY A PERFORAMNCE MANAGEMENT
SYSTEM
• ORGANISATIONAL MAINTENANCE: To provide information
to be used in workplace planning ( anticipate & respond)
and allocation of human resources, talent inventory &
future training needs, evaluating effectiveness of HR
interventions.
• DOCUMENTATIONAL: To collect useful information that can
be used for various purposes ( e.g test development,
administrative decisions)
Eg: SELCO Credit Union,Eugene,Oregon – Non profit
consumer co-operative
1. Timings aligned with business cycle.
2. Managers given pool of money for bonuses.
3. Managers sit down & have regular conversation with employees.
4. Time spent on talking to employees about how they can improve.
PURPOSES SERVED BY A PERFORAMNCE MANAGEMENT
SYSTEM
• STRATEGIC: To help top management achieve strategic business
objectives , reinforcement of behaviors.
• ADMINISTRATIVE: To furnish valid and useful information for making
administrative decisions about employees, salary adjustment,
promotions and retentions.
• INFORMATIONAL: To inform employees about how they are doing and
about the organization’s and the supervisor’s expectations.
• DEVELOPMENTAL: To allow managers to provide coaching to their
employees, feedback cultures & SW.
• ORGANISATIONAL MAINTENANCE: To provide information to be used
in workplace planning ( anticipate & respond) and allocation of human
resources, talent inventory & future training needs, evaluating
effectiveness of HR interventions.
• DOCUMENTATIONAL: To collect useful information that can be used for
various purposes ( e.g test development, administrative decisions)
CHARACTERISTICS OF AN IDEAL PERFORMANCE
MANAGEMENT SYSTEMS
• Strategic congruence – unit and organization strategy.
• Thoroughness
1. All employees should be evaluated.
2. Major job & responsibilities are evaluated.
3. Evaluation spanning entire review period.
4. Feedback on positive performance.
• Practicality – too expensive, time consuming.
• Meaningfulness
1. Standard & evaluations conducted must be considered important and relevant.
2. PA emphasize only those functions that are under the control of the employees.
3. Evaluation at regular intervals & appropriate movements.
4. Continuing skill development of evaluator.
5. Result should be important for admin decisions.
• Specificity – provide detail & concrete guidance.
• Identification of effective and ineffective performance – behavior &
results.
• Reliability – measures consistent & free of errors.
• Validity – Include relevant performance facets,not contaminated.
CHARACTERISTICS OF AN IDEAL PERFORMANCE
MANAGEMENT SYSTEMS
• Acceptability and fairness – subjective, fair is to ask participants.
• Distributive justice
• Procedural justice.
• Good system is inherently discriminatory.
• Inclusiveness – Multiple sources on an ongoing basis.
• Represent concern for people.
• Inputs should be gathered from employee itself.
• Openness
• Evaluated frequently & feedback given on ongoing basis.
• Appraisal meeting consists two way communication.
• Standard should be clear and communicated on an ongoing basis.
• Communications are factual open and honest.
• Correctability – minimize subjective aspect, mechanism to correct
human errors.
• Standardization – consistent across people and time.
• Ethicality – suppresses personal self interest.
PERFORMANCE MANAGEMENT PROCESS
 PERFORMANCE MANAGEMENT PROCESS
1. PREREQUISITES

2. Knowledge of the job in question.

• Job analysis – determining key components of a job.
• Fundamental prerequisite
• what constitutes the required duties for a particular job.
• information regarding the tasks and KSAs
• Knowledge – Information needed to perform the work
• Skills-Required attribute usually acquired by having done the work
in the past.
• Ability-Physical ,emotional, intellectual and psychological
aptitude.
• KSAs and tasks typically presented in JD form.
• Job analysis
• Using observation.
• Questionnaires.
• Interviews.

• Rating each task in terms of frequency and criticality.

 PERFORMANCE MANAGEMENT PROCESS
1. PREREQUISITES

2. Knowledge of the job in question.

• Numerous job analysis questionnaires are available on internet.
• www.delawarepersonnel.com
• Three factors 1) KS 2)Problem solving 3) accountability and
end result
• www.alexandriava.gov
• Employee answer more general questions about their
jobs,encouraged to attach materials.
• Occupational Informational Network ( O*NET) – database of
worker attributes and job characteristics and provide a common
languages for defining and describing occupations.
• Writing a J D
Deaconess Hospital in Oklahoma City,Oklahoma – integrated JD
with PMS
 PERFORMANCE MANAGEMENT PROCESS
2.PERFORMANCE PLANNING
Thorough knowledge
Beginning of each performance cycle, the superior and employee meet.

1. RESULTS
• What needs to be done or the outcomes an employee must produce.
• Key accountability employee responsible for producing results.
• Specific objectives – statement of important measurable outcomes.
• Discussing performance standards –yardstick.
2. BEHAVIORS
• More emphasis give incomplete picture.
• For some jobs difficult to establish objectives, for other no control over the results.
• Competencies – measurable clusters of KSAs for eg: customer service.
• In certain cases behavior is given more importance over results.
3. DEVELOPMENT PLAN
• Agree on development plan
• Areas need improvement and setting goals to achieved.
• Include both results and behaviors.