Notesale: Turn your study into money

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

---

PERFORMANCE & TALENT
MANAGEMENT

MODULE 1

CONTENTS
1
...
Performance Management: concept & process-Objectives
& importance of Performance Management System in
Organizations2
...


Performance
Output per hour/shift
Quality of work

Discipline
Level of commitment
Behavior & Talent

PERFORMANCE MANAGEMENT
Continuous process of identifying,

measuring and developing the
performance of individuals and
teams and aligning performance
with the strategic goal of the
organization

 Performance

management further defined as a
process which contributes to the effective
management of individuals and teams in order to
achieve high level of organizational performance
...
(Armstrong and Barron 2009)

PM should be:Strategic: it is about broad issues and long

term goals
...


PM should incorporate:
 Performance

improvement:
throughout
the
organization in respect of individual, teams and
organization as a whole
...

 Managing behavior: ensuring that individuals are
encouraged to behave in a way that allows and foster
better working relationships
...

 As a part of which they ensure that the people or teams they

manage:
Know and understand what is expected of them
...

 Given feedback on their performance
 Have the opportunity to discuss and contribute to individuals and team
objectives
...


In general PM is:
 Establishing a culture of continuous

improvement
 Sharing expectations
 Developing interpersonal relationships
 Planning – defining expectations expressed

Transformation of PM

Measurement
of employee
output

Indicator of
performance
development
and pay
decisions

Individual
contribution to
organization
objectives
through
behavior,
capacity and
output
...

 Feedback should be given on positive as well as on areas for
improvements
 Practicality
 Meaningfulness

Characteristics of an Ideal PM system
 Identification of

 Inclusiveness

effective and ineffective  Openness
performance
 Correctness
 Reliability
 Standardization
 Validity
 Ethicality
 Acceptability and
fairness

Advantages of PM
 Motivation to perform is increased
 Self esteem is increased
 Managers gain insights about subordinates
...


 Organizational goals are more clear
...

 Better differentiation between poor and good performers
...


Performance Appraisal Vs Performance Management
PERFORMANCE
APPRAISAL
Top-down assessment

PERFORAMNC E
MANAGEMENT
Joint process through dialogue

Annual appraisal meeting
It is a part of performance
management
Use of ratings and rankings
Monolithic system
Focus on quantified objectives

Continuous review
Wider scope than appraisal
Ratings less common
Flexible process
Focus on values, behavior as well
as objectives

Objectives/functions of performance management
 Create healthy work






environment
Develop performance plans
Selection of appropriate
people
Decision regarding
performance standard
Plans for development of
employees

 Measurement of performance
 Performance feedback
 Design compensation,

recognition and reward
system
 Contributes in developing
goodwill

Scope/Purposes of Performance Management
Strategic
Purpose

Administrative
Purpose

Informational
Purpose

Developmental
Purpose

Organizational
Maintenance
Purpose

Documentation
Purpose

To help top
management
achieve
strategic
business
objectives

To furnish
valid and
useful
information for
making
administrative
decisions about
employees

To inform
employees
about how
they are doing
and about the
organization’s
and the
supervisor’s
expectations

To allow
managers to
provide
coaching to the
employees

To provide
information to
be used in
workplace
planning and
allocation of
human
resources

To collect and
keep records of
information to
be used for
various
purposes

Prerequisites of PM
 High Level of

 Open and transparent

participation
 Support from
Management
 Clearly defined mission
vision goals etc
 Defined Roles

Communication system
 Identification of KPIs
 Consistency in process
 Reward perfromance
linkage
 Proper Training

Performance Management Process
PREREQUISITES

PERFORMANCE
RENEWAL AND
RECONTRACTING

PERFORMANCE
PLANNING

PERFORMANCE
REVIEW

PERFORMANCE
EXECUTION

PERFORMANCE
ASSESSMENT

Prerequisites
Knowledge of organization’s mission and vision
Strategic goals
Knowledge of the job

Performance planning
Performance
standards – Results

Development Plan

Performance execution
Employees
Commitment to goal achievement
Ongoing performance feedback and
coaching
Communication with supervisor

Managers
Observation and
documentation
Updates
Feedback

Collecting and sharing performance data Resources
Preparing for performance reviews

Reinforcement

Performance Assessment
Supervisor rating
Peer rating

Self rating

Performance Review
Appraisal meeting
Past performance

Present change in compensation based on past
performance
Future plans to improve and develop

Performance renewal and re-contracting

Adjustments based on performance

Increase/decrease of unrealistic standards

Key Result Areas

 Definition: Key result areas or KRAs refer to the general

metrics or parameters which the organisation has fixed for a
specific role
...

 Description: Key result areas (KRAs) broadly define the job
profile for the employee and enable them to have better clarity
of their role
...
It also helps employees to align their role with that
of organisation
...

 It is the area identified as important or crucial where a result will assist in the
achievement of the set objectives or goal
...

 KRA’s might fall within the scope of Key Performance Areas (KPA)

Key Performance Area
 Key = crucial/main

 Performance = Achievement/Attainment
 Area = space/range/field of operation
 KPA = Main achievement space
 Point to Note
 KPA

is the overall scope of activities that an individual on a job role
has to perform
...

 KPA’s can be inclusive of KRA’s

Key Performance Indicators (KPIs)
 It is a measurable value that demonstrates how effectively a company

is achieving key business objectives
...



High-level KPIs may focus on the overall performance of the enterprise, while lowlevel KPIs may focus on processes in departments

 Indicator may be in financial or nonfinancial in nature and are used to

measure Organizational Performance
...


Classification of KPI
Indicators

Description

Quantitative That can be presented with a number
...


Lagging
Indicators
Input
Indicators

That present the success or failure post hoc

That can predict the outcome of a process

That measure the amount of resources consumed during
the generation of the outcome

Classification of KPI
Indicators

Description

Output
Indicators

That reflect the outcome or results of the process activities

Process
Indicators

That represent the efficiency or the productivity of the process

Practical
Indicators

That interface with existing company processes
...

Indicators
Actionable
Indicators

Are sufficiently in an organization’s control to effect change
...


 To track these KPIs in a real-time reporting tool dashboard

software can be used, giving your entire organization
insights into your current performance
...
Like a vehicular
dashboard, an effective dashboard inspires action by sending clear,
consistent, and highly relevant messages about your performance

Dashboard Example

Assignment 1
 Draft KPI and KRA for three different job profile

in three dimensions

PERFORMANCE & TALENT
MANAGEMENT
MODULE 2

Contents
 Performance Management and Performance Appraisal,
 Difference between performance appraisal & potential

appraisal,
 Performance appraisal methods: traditional & modern
methods,
 Designing appraisal forms Performance measurement and evaluation Appraisal communication: feedback, counseling and coaching,
 Performance linked reward system
...

 Dale Yoder, ''Performance appraisal includes all formal procedures used
to evaluated personalities and contributions and potentials of group
members in a working organisation
...
"

Potential Appraisal
 Potential of a person refers to his abilities which are not being utilized
...

 Potential appraisal helps in career planning, succession planning etc
...

 It is a systematic way of mapping the evidence of the
progress you are making towards your expected results
...

 Indicators

are increase in profits, growth in sales rise in costs,
loyalty, goodwill, satisfaction, morale

Objectives of measuring performance
 To ensure that every activity is yielding results that

contribute to the overall success of the organization
...

 Methods are: Graphic Rating Scale , Mixed rating scale
Highy subjectivity
heavily reliant on the nature of the evaluator
it is accurate at identifying only the best and the worst performers and
simple

Performance Appraisal Communication/ Review
 The results of the appraisal should be communicated

to employees in an appropriate time
...

Aslo called performance appraisal meeting, or performance evaluation meeting
...

Mutually agreed conclusions about performance, areas for improvement, and how
to achieve improvement
Free-flowing open meeting
Four key elements






Feedback
Measurement
Exchange of views
Improvement Plans

Objectives
 To let subordinates know where they stand
 To recognize their good work
 Point out how and where they can improve

 To develop them on their present job
 Develop and train them for higher jobs
 Serve as a record
 To warn under performing employees

Ten golden rules
 Be prepared

 Encourage analysis of

performance
 don’t deliver unexpected
 Work to a clear structure
criticism
 Use praise
 Agree measurable objectives
 Let individuals do most of the
and
a
plan
of
action
...


Problems in conducting review meetings
 Relationship between

manager and the individual
 Mutual

 Improper balance of issues
 More

emphasis on performance
improvement

trust and understanding
between both parties
 Lack of clarity and bias in

 Skills of supervisor
 Communication

skills,
interpersonal skills

 Meeting procedure
 Agenda,

supporting documents,
schedules

discussions
 Factual

evidence, favoritism,
defensive behavior

 Improper focus on outcomes
 Equal

attention to all rather
than to extreme performers

Other Problems
 Evaluation criterion
 Compiling collected information
 Resolving conflict
 Handling defensive behavior
 Norman R
...

 face to face discussion
 all aspects of the employee’s performance
 thrash out any differences in evaluation
 Employee - chance to defend himself or herself against poor
evaluation
 manager - chance to explain what he or she thinks about the
employee’s performance
...


Performance Appraisal Feedback
Effective feedback should be:
Honest

Accurate

Specific

Could

Should

meet the
needs of all parties
Meaningful

acted upon
Instantly followed up
in writing

How to make feedback effective
 Build feedback into the job


Progress charts, estimates of revenues and
expenses

 Select key issues


Key result areas

 Collect evidence


No assumptions about behavior, only factual
information

 Be specific


No general feelings or impressions

 Describe, not judge


Vivid description, no judgmental comment

 Make helpful inquiries


Reframe questions in a constructive
manner

 Focus on controllable factors


Never concentrate on peripheral
things leaving the core ones

 Give it in time


Immediate and timely feedback

 Provide positive feedback


Encourage subordinates to grow as a
good performer

Performance Coaching
Performance coaching can be described as
a

series of guided conversations
that enable the “coachee” to discover and
implement personal solutions
to challenging issues or areas of performance
...
Don’t threat
 Focus on mistakes as learning opportunities

 Express the value of his or her contribution
 Take responsibility, but give credit
...
No absolute

upper limits
 Recognize and reward small improvements
 Use collaborative style
 Break difficult tasks into simpler ones
 Model the qualities expected from employees

Performance Linked Reward System
 Rewarding employees according to their performance
 A shift of focus from remuneration models based on the

worth of jobs and employee skills to their performance
 Advantages
 reduce

labour cost
 result in increases in real wages and motivate performance
...

• Deferred Profit sharing plan
• Combination profit sharing plan
...
Evaluate your current performance appraisal
2
...

4
...

6
...

Identify organisational goals
...

Monitor and develop their performance throughout
the year
...

Set new performance expectations for the next year
...

 The goal of talent management is to hire the best
employees the business can afford so that the
company reaches its maximum potential for success
...

 Poor performance affecting targets and productivity
...
Culture of learning
2
...
Performance management
4
...
Succession planning

Building Blocks of Effective Talent Management

 (Re-)Define talent
 Identify and assess talent

 Develop a communication plan & provide

feedback
 Provide strategic developmental experiences
 Measure success

Talent Management Practices
1
...
Go Beyond Regular Performance Appraisals
3
...
Measure and Improve Talent Management with
Analytics

Stages of TM
Stage 1: Assess New Talent
Stage 2: Meet On boarding Needs
Stage 3: Provide Ongoing Development
Stage 4: Promote the Right Talent
Prepared by
Ms

---