Performance Management

Concept of Performance Concept of Performance ManagementManagement

It is the process of :It is the process of :

Planning performance,Planning performance, Appraising/Evaluating performance,Appraising/Evaluating performance, Giving its feedback, and Giving its feedback, and Counseling an employee to improve his Counseling an employee to improve his

performance.performance.11

(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi Mumbai(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi Mumbai

Difference between Performance Difference between Performance Management & Performance AppraisalManagement & Performance Appraisal

Performance Management is more Performance Management is more comprehensive than Performance appraisal, comprehensive than Performance appraisal, though latter is the key ingredient of the though latter is the key ingredient of the former.former.

In Performance Management, the entire In Performance Management, the entire activities are linked to organizational objectives activities are linked to organizational objectives and strategies to achieve these objectives. and strategies to achieve these objectives. Because of such a linkage, the focus is on Because of such a linkage, the focus is on ‘why ‘why to appraise’to appraise’ rather than the usual approach of rather than the usual approach of ‘what and how to appraise’‘what and how to appraise’ of Performance of Performance Appraisal.Appraisal. 22(c)Mrs. Sarita Kumari, Senior Faculty(HRM),IIBM ,Navi Mumbai(c)Mrs. Sarita Kumari, Senior Faculty(HRM),IIBM ,Navi Mumbai

1.Performance Planning1.Performance Planning

It is the process of determining what and It is the process of determining what and how a job is to be done in such a manner how a job is to be done in such a manner that both the employee and his superior that both the employee and his superior understand what is expected from the understand what is expected from the employee and how success is defined and employee and how success is defined and measured.measured.

33(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi (c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi

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Process of Performance PlanningProcess of Performance Planning

In consultation with the superior, the employee In consultation with the superior, the employee formulates his job objectives keeping in view the formulates his job objectives keeping in view the organizational/unit objectives.organizational/unit objectives.

During Performance Planning session, each During Performance Planning session, each objective and its contribution to organizational objective and its contribution to organizational objectives is discussed and it is also determined objectives is discussed and it is also determined how the accomplishment of each objective will be how the accomplishment of each objective will be measured.measured.

In the light of the stated objectives, any In the light of the stated objectives, any developmental activities that will be required by developmental activities that will be required by the employee are worked out.the employee are worked out.

Once performance plan is established, it is the Once performance plan is established, it is the responsibility of the employee to carry out the responsibility of the employee to carry out the objectives and responsibilities specified in the plan.objectives and responsibilities specified in the plan.44

(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi Mumbai(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi Mumbai

2.Concept of Performance 2.Concept of Performance AppraisalAppraisal

Performance Appraisal is the method of Performance Appraisal is the method of evaluating the behavior of employees in the evaluating the behavior of employees in the work spot , normally including both work spot , normally including both quantitativequantitative and and qualitativequalitative aspects of job performance. aspects of job performance.

It is the activity used to determine the extent It is the activity used to determine the extent to which an employee performs work to which an employee performs work effectively.effectively.

The other names of Performance Appraisal The other names of Performance Appraisal include Performance Evaluation, Performance include Performance Evaluation, Performance Review, Personnel Rating, Merit Rating, Review, Personnel Rating, Merit Rating, Employee Appraisal, and Employee Evaluation.Employee Appraisal, and Employee Evaluation.

55(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi Mumbai (c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi Mumbai

Objectives of Performance AppraisalObjectives of Performance Appraisal

Appraisal of employees serves several Appraisal of employees serves several usefuluseful

Purposes such as:Purposes such as:

Compensation decisions.Compensation decisions. Promotion decisions.Promotion decisions. Training and development programs.Training and development programs. Feedback.Feedback. Personal development.Personal development.


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Format/Process of AppraisalFormat/Process of AppraisalPerformance appraisal must provide accurate and reliable Performance appraisal must provide accurate and reliable

data. Indata. In

order to provide these a systematic process must be followedorder to provide these a systematic process must be followed

which is as follows:which is as follows:

1. Establish performance standards for each position and 1. Establish performance standards for each position and criteria for evaluation.criteria for evaluation.

2. Establish performance evaluation policies on when to rate, 2. Establish performance evaluation policies on when to rate, how often to rate, and who should rate.how often to rate, and who should rate.

3. Have raters gather data on employees’ performance.3. Have raters gather data on employees’ performance.

4.4. Have raters (and employees in some systems) evaluate Have raters (and employees in some systems) evaluate employees’ performance.employees’ performance.

5. Discuss the evaluation with the employees.5. Discuss the evaluation with the employees.

6. Make decisions and file evaluation.6. Make decisions and file evaluation.

Step 1 of this process is completed when an organizationStep 1 of this process is completed when an organization

conducts a job analysis.conducts a job analysis. 77(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi Mumbai(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi Mumbai

Format/Process of Appraisal Format/Process of Appraisal Cont…Cont…

Establish Criteria:Establish Criteria:The dimensions of performance upon which anThe dimensions of performance upon which anemployee is evaluated are called the employee is evaluated are called the Criteria ofCriteria ofEvaluation Evaluation , for example quality of work, quantity , for example quality of work, quantity

ofofwork, and cost of work etc…work, and cost of work etc…An effective criterion should possess the followingAn effective criterion should possess the followingcharacteristics:characteristics:a) a) Reliability:Reliability: A measure of performance must be A measure of performance must be

consistent. The most important type of consistent. The most important type of consistency for a performance measure is inter consistency for a performance measure is inter rater reliability. If different raters view the same rater reliability. If different raters view the same worker, they should arrive at similar conclusion worker, they should arrive at similar conclusion about the quality of that worker’s output.about the quality of that worker’s output. 88(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi (c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi

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Format/Process of Appraisal Cont…Format/Process of Appraisal Cont…

b) b) Relevance:Relevance: A measure of performance A measure of performance must be related to the actual output of an must be related to the actual output of an incumbent as logically as possible. incumbent as logically as possible.

c) c) Sensitivity:Sensitivity: Any criterion must be able to Any criterion must be able to reflect the difference between high and reflect the difference between high and low performers. That is, high and low low performers. That is, high and low performers must receive criterion scores performers must receive criterion scores that accurately represent the difference that accurately represent the difference in their performance.in their performance.

d) d) Practicality:Practicality: The criterion must be The criterion must be measurable, and data collection cannot measurable, and data collection cannot be inefficient or too disruptive.be inefficient or too disruptive. 99

(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi (c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi MumbaiMumbai


Most studies reveal multiple criteria are necessary Most studies reveal multiple criteria are necessary to measure performance completely. The multiple to measure performance completely. The multiple criteria are added together statistically or criteria are added together statistically or combined into a single multifaceted measure.combined into a single multifaceted measure.

The choice of criteria is not an easy process.The choice of criteria is not an easy process. One must be careful to evaluate both activities (for One must be careful to evaluate both activities (for

example, number of calls a salesperson makes) example, number of calls a salesperson makes) and results (for example, rupees of sales). A and results (for example, rupees of sales). A combination of criteria using results and activities combination of criteria using results and activities is desirable.is desirable.

Management must weigh the importance of Management must weigh the importance of multiple criteria.multiple criteria.


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Format/Process of Appraisal Cont…Format/Process of Appraisal Cont…Set Policies on Who Evaluates, When, and How Often:Set Policies on Who Evaluates, When, and How Often: When should evaluation be done?When should evaluation be done?

-In US a majority of the organizations continue to evaluate-In US a majority of the organizations continue to evaluate

performance on an annual basis. There are two choices for performance on an annual basis. There are two choices for whenwhen

to actually conduct evaluations:to actually conduct evaluations:

(a)(a) The date the person was hired—Anniversary date.The date the person was hired—Anniversary date.

(b)(b) Alternatively a single calendar date.Alternatively a single calendar date.

Merit-It is convenient administrativelyMerit-It is convenient administratively

Demerits – Demerits –

(i) It requires rater to spend lots of time conducting(i) It requires rater to spend lots of time conducting

evaluation interviews and completing forms at one time,evaluation interviews and completing forms at one time,

for which they may want to get it over with quickly.for which they may want to get it over with quickly.

(ii) It may not be related to normal task cycle of the employee.(ii) It may not be related to normal task cycle of the employee.

Hence the manager can not evaluate performance effectively.Hence the manager can not evaluate performance effectively.1111

Format/Process of Appraisal Cont…Format/Process of Appraisal Cont…Set Policies on Who Evaluates, When, and How Often Cont…:Set Policies on Who Evaluates, When, and How Often Cont…: Hence it is better to schedule the evaluation at the completionHence it is better to schedule the evaluation at the completion

of a task cycle.of a task cycle. Alternatively without a clear task cycle, based on the date. OneAlternatively without a clear task cycle, based on the date. One

way to set the date is by setting goals. Goals can be establishedway to set the date is by setting goals. Goals can be established

by the consensus of manager and employee regarding the taskby the consensus of manager and employee regarding the task

cycle . Task cycle terminates with an evaluation of the employee’s cycle . Task cycle terminates with an evaluation of the employee’s

performance during that cycle.performance during that cycle.

- A small proportion(15.6) percent evaluate performance twice a A small proportion(15.6) percent evaluate performance twice a year.year.

- Even small (3.6) percent have implemented quarterly Even small (3.6) percent have implemented quarterly evaluation.evaluation.

- One study of 244 Indian firms found that appraisals were most One study of 244 Indian firms found that appraisals were most often conducted once a year.often conducted once a year.


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Set Policies on Who Evaluates, When, and How Often Set Policies on Who Evaluates, When, and How Often Cont…:Cont…:

Who should do the appraising?Who should do the appraising?

Performance evaluation is a HRM activity that involvesPerformance evaluation is a HRM activity that involves

cooperation between the line operating managers and HRcooperation between the line operating managers and HR

specialists. The various appraisers are:specialists. The various appraisers are:

a)a) Operating Manager (Immediate Supervisor)Operating Manager (Immediate Supervisor)

b)b) Committee of Several SupervisorsCommittee of Several Supervisors

c)c) Employee’s Peers (Co-Workers)Employee’s Peers (Co-Workers)

d)d) Employee’s SubordinatesEmployee’s Subordinates

e)e) Self Appraisal.Self Appraisal.

f)f) Consultants.Consultants.

g)g) Combination of Approaches (360 Degree Feedback).Combination of Approaches (360 Degree Feedback). 1313(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi (c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi

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Format/Process of Appraisal Cont…Format/Process of Appraisal Cont…360-Degree Feedback:360-Degree Feedback: In human resources or industrial/organizational psychology, 360-In human resources or industrial/organizational psychology, 360-

degree feedback, also known as "multi-rater feedback," "multi degree feedback, also known as "multi-rater feedback," "multi source feedback," or "multi source assessment," is feedback that source feedback," or "multi source assessment," is feedback that comes from all around of an employee. "360" refers to the 360 comes from all around of an employee. "360" refers to the 360 degrees in a circle, with an individual figuratively in the center of the degrees in a circle, with an individual figuratively in the center of the circle.circle.

Feedback is provided by subordinates, peers, and supervisors. It also Feedback is provided by subordinates, peers, and supervisors. It also includes a self-assessment and, in some cases, feedback from includes a self-assessment and, in some cases, feedback from external sources such as customers and suppliers or other interested external sources such as customers and suppliers or other interested stakeholders.stakeholders.

It may be contrasted with "upward feedback," where managers are It may be contrasted with "upward feedback," where managers are given feedback by their direct reports, or a "traditional performance given feedback by their direct reports, or a "traditional performance appraisal," where the employees are most often reviewed only by appraisal," where the employees are most often reviewed only by their managers.their managers.

The results from 360-degree feedback are often used by the person The results from 360-degree feedback are often used by the person receiving the feedback to plan training and development. Results are receiving the feedback to plan training and development. Results are also used by some organizations in making administrative decisions, also used by some organizations in making administrative decisions, such as pay or promotion. It was originally developed by T.V Rao and such as pay or promotion. It was originally developed by T.V Rao and others at IIMA as a fact finding and self correction technique. others at IIMA as a fact finding and self correction technique.

1414(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi Mumbai(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi Mumbai


Merits of 360-Degree Merits of 360-Degree FeedbackFeedback

1. Multiple perspectives of a 1. Multiple perspectives of a person’s performance.person’s performance.

2. Ratings can evaluate 2. Ratings can evaluate person based on actual person based on actual contact and observation.contact and observation.

3. Feedback is provided from 3. Feedback is provided from multiple directions-above, multiple directions-above, below, peer, & outsider.below, peer, & outsider.

4. Anonymous upward 4. Anonymous upward feedback which results in feedback which results in full participation.full participation.

5. Learning about 5. Learning about weaknesses and strengths weaknesses and strengths is motivational.is motivational.

Demerits of 360-Degree Demerits of 360-Degree Feedback:Feedback:

1. Feedback from all; can be 1. Feedback from all; can be overwhelming.overwhelming.

2. Rater can hide in a group 2. Rater can hide in a group of rates and provide harsh of rates and provide harsh evaluations.evaluations.

3. Conflicting ratings can be 3. Conflicting ratings can be confusing and frustrating.confusing and frustrating.

4. Linking findings to 4. Linking findings to rewards can prove to be rewards can prove to be unfair.unfair.

5. Requires a plan and well-5. Requires a plan and well-trained raters which is not trained raters which is not typically found in typically found in organizations.organizations.


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Methods/Techniques of Performance Methods/Techniques of Performance AppraisalAppraisal

Individual Evaluation MethodsIndividual Evaluation Methods

Evaluating employeesEvaluating employees

individually. No comparisonindividually. No comparison

with other employees. The with other employees. The

standards of performance arestandards of performance are

defined without reference to otherdefined without reference to other

employees. The methods are:employees. The methods are:

1.Graphic Rating Scale1.Graphic Rating Scale

2.Forced Choice2.Forced Choice

3.Essay evaluation3.Essay evaluation

4.Critical Incident Technique4.Critical Incident Technique

5.Checklists and Weighted and5.Checklists and Weighted and

ChecklistsChecklists

6.Behaviorally Anchored Rating 6.Behaviorally Anchored Rating ScaleScale

7.Management by Objectives7.Management by Objectives

Multi-Person Evaluation MethodsMulti-Person Evaluation Methods

Direct/indirect comparison ofDirect/indirect comparison of

performance of one employeeperformance of one employee

with that of other employees.with that of other employees.

Thus the standard of performanceThus the standard of performance

are relative: an employee’sare relative: an employee’s

performance is defined as goodperformance is defined as good

/bad as compared with the /bad as compared with the

performance of other employees. performance of other employees. TheThe

Methods are:Methods are:

1.Ranking1.Ranking

2.Paired Comparison2.Paired Comparison

3.Forced Distribution3.Forced Distribution1616(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi (c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi

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Performance Appraisal ErrorsPerformance Appraisal Errors

Performance appraisals are intended to Performance appraisals are intended to evaluate the performance and potential of evaluate the performance and potential of employees. Still these may not be valid employees. Still these may not be valid indicator of what these are intended to assess indicator of what these are intended to assess because of a variety of limitations on their uses. because of a variety of limitations on their uses. The problems that affect the validity and The problems that affect the validity and dependability of the Performance appraisal dependability of the Performance appraisal systems are called systems are called Performance Appraisal Performance Appraisal ErrorsErrors. These are as follows:. These are as follows:

(A)(A) Judgment ErrorJudgment Error

(B)(B) Poor Appraisal FormsPoor Appraisal Forms

(C)(C) Lack of Rater PreparednessLack of Rater Preparedness

(D)(D) Ineffective Organizational Policies and PracticesIneffective Organizational Policies and Practices1717(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi Mumbai(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi Mumbai

Performance Appraisal Errors Cont…Performance Appraisal Errors Cont…

((A)Judgment Error:A)Judgment Error: People commit mistake due to People commit mistake due to biasness and judgment errors while evaluating biasness and judgment errors while evaluating people and their performance. These are:people and their performance. These are:

First Impression( Primacy Effect)First Impression( Primacy Effect) Latest Behavior (Recency Effect)Latest Behavior (Recency Effect) Halo EffectHalo Effect Horn Effect Horn Effect StereotypingStereotyping Central TendencyCentral Tendency LeniencyLeniency StrictnessStrictness Spillover EffectSpillover Effect


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Performance Appraisal Errors Cont…Performance Appraisal Errors Cont…

(B) (B) Poor Appraisal Forms Poor Appraisal Forms ::

The appraisal process might also be influence by theThe appraisal process might also be influence by the

following factors relating to the forms that are used byfollowing factors relating to the forms that are used by

raters:raters: The rating scale may be quite vague and unclear.The rating scale may be quite vague and unclear.

Problems with evaluation standards arise because of Problems with evaluation standards arise because of perceptualperceptual

differences in the meaning of the words used to evaluatedifferences in the meaning of the words used to evaluate

employees. Thus good, adequate, satisfactory, and employees. Thus good, adequate, satisfactory, and excellent mayexcellent may

mean different things to different evaluators.mean different things to different evaluators. The rating form may ignore important aspects of job The rating form may ignore important aspects of job

performance.performance. The forms may be too long and complex.The forms may be too long and complex.

1919(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi (c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi MumbaiMumbai

Performance Appraisal Errors Cont…Performance Appraisal Errors Cont…(C) (C) Lack of Rater PreparednessLack of Rater Preparedness:: The raters may not be adequately trained to carry out The raters may not be adequately trained to carry out

performance management activities. This is a serious performance management activities. This is a serious problem when technical competency of a ratee is problem when technical competency of a ratee is evaluated.evaluated.

The rater may not have sufficient time for systematic The rater may not have sufficient time for systematic appraisal and feedback sessions.appraisal and feedback sessions.

The rater may have poor self image and low confidence.The rater may have poor self image and low confidence. The rater may get confused when the objectives of the The rater may get confused when the objectives of the

appraisal are somewhat vague and unclear.appraisal are somewhat vague and unclear.

(D) (D) Ineffective Organizational Policies and PracticesIneffective Organizational Policies and Practices::

If the sincere appraisal report put in by a rater is not suitablyIf the sincere appraisal report put in by a rater is not suitably

rewarded, the motivation to do the job thoroughly finishes off.rewarded, the motivation to do the job thoroughly finishes off.


Potential AppraisalPotential Appraisal

In the modern era of HRM, appraisal system lays greater In the modern era of HRM, appraisal system lays greater emphasis on the development of employees rather than on emphasis on the development of employees rather than on their evaluation.their evaluation.

This is better fulfilled by the This is better fulfilled by the Potential AppraisalPotential Appraisal which which involves assessing the capability of an employee which he involves assessing the capability of an employee which he possesses but that is not being utilized fully.possesses but that is not being utilized fully.

It is to identify the potential of a given employee to occupy It is to identify the potential of a given employee to occupy higher positions in the organizational hierarchy and higher positions in the organizational hierarchy and undertake higher responsibilities.undertake higher responsibilities.

Potential appraisals are required to:Potential appraisals are required to:

1.1. Inform employees about their future prospects.Inform employees about their future prospects.

2.2. Help the organization chalk out a suitable succession plan.Help the organization chalk out a suitable succession plan.

3.3. Update training efforts from time to time.Update training efforts from time to time.

4.4. Advise employees about what they must do to improve Advise employees about what they must do to improve their career prospects.their career prospects. 2121(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi Mumbai(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi Mumbai

Process of Potential AppraisalProcess of Potential Appraisal

Role descriptionsRole descriptionsOrganizational roles and functions must be defined clearly. ForOrganizational roles and functions must be defined clearly. Forthis job descriptions must be prepared for each job.this job descriptions must be prepared for each job. Qualities needed to perform the rolesQualities needed to perform the rolesBased on job descriptions the roles to be played by people mustBased on job descriptions the roles to be played by people mustbe prepared (i.e. technical, managerial jobs and behavioralbe prepared (i.e. technical, managerial jobs and behavioraldimensions)dimensions) Rating mechanismsRating mechanisms1)1) Rating by others to examine technical capabilities.Rating by others to examine technical capabilities.2)2) Psychological tests to know managerial and behavioral Psychological tests to know managerial and behavioral

dimensions.dimensions.3)3) Simulation games to uncover the potential of the candidate.Simulation games to uncover the potential of the candidate.4)4) Performance records and ratings on candidates previous jobs Performance records and ratings on candidates previous jobs

can be examined on dimensions like creativity, risk taking etc.can be examined on dimensions like creativity, risk taking etc.

2222

Process of Potential Appraisal Cont..Process of Potential Appraisal Cont.. Organizing the systemOrganizing the systemHR manager sets up a system to allow the introduction of theHR manager sets up a system to allow the introduction of thescheme smoothly incorporating answers to some complexscheme smoothly incorporating answers to some complexquestions such as:questions such as:1.1. How much weightage to accord to merit in place of How much weightage to accord to merit in place of

seniority in promotions?seniority in promotions?2.2. How much weightage to accord to each of the How much weightage to accord to each of the

performance dimensions-technical, managerial, and performance dimensions-technical, managerial, and behavioral qualities?behavioral qualities?

3.3. What are the mechanisms of assessing the individual on What are the mechanisms of assessing the individual on different indicators of his potential, and with what degree different indicators of his potential, and with what degree of reliability?of reliability?

FeedbackFeedbackEvery employee must have the opportunity to know the Every employee must have the opportunity to know the

results ofresults ofhis assessment.his assessment. 2323

(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi (c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi MumbaiMumbai

Potential Appraisal at Philips IndiaPotential Appraisal at Philips India

3.PROBLEM CHILDREN

4. STARS

1. ? PLANNED SEPARATION

2.

SOLID CITIZENS

LOW HIGHPERFORMANCE

HIGH

POTENTIAL

LOW


Potential Appraisal at Philips India Cont…Potential Appraisal at Philips India Cont…

It is a potential-cum-performance based model.It is a potential-cum-performance based model. Philips uses a five-point scale to measure the potential of an Philips uses a five-point scale to measure the potential of an

employee and put him into one of the above quadrants. The employee and put him into one of the above quadrants. The potential appraisal criteria include the following:potential appraisal criteria include the following:

1. Conceptual Effectiveness (including vision, business orientation, 1. Conceptual Effectiveness (including vision, business orientation, entrepreneurial orientation, and sense of reality etc.)entrepreneurial orientation, and sense of reality etc.)

2. Interpersonal Effectiveness (including network directedness, 2. Interpersonal Effectiveness (including network directedness, negotiating power, personal influence, and verbal behavior etc.)negotiating power, personal influence, and verbal behavior etc.)

3. Operational Effectiveness (including result orientation, individual 3. Operational Effectiveness (including result orientation, individual effectiveness, risk-taking, and control etc.)effectiveness, risk-taking, and control etc.)

4. Achievement Motivation (including drive, professional ambition, 4. Achievement Motivation (including drive, professional ambition, innovativeness, and stability etc.)innovativeness, and stability etc.)

Once the potential of an employee is measured along these Once the potential of an employee is measured along these dimensions on a five-point scale, Philips lays down a fast-track dimensions on a five-point scale, Philips lays down a fast-track career growth plan for the star performers (five to ten year plan)career growth plan for the star performers (five to ten year plan)


3.Appraisal Feedback3.Appraisal Feedback

Appraisal Feedback must be provided to Appraisal Feedback must be provided to employees to enhance their Self-employees to enhance their Self-Perception.Perception.

Self-Perception is the process of Self-Perception is the process of understanding oneself:understanding oneself:

1.1. Where he stands in terms of his Where he stands in terms of his efficiency.efficiency.

2.2. What his strengths and weaknesses are.What his strengths and weaknesses are.3.3. To what extent, he is able to use his To what extent, he is able to use his

capabilities.capabilities.4.4. How he can improve himself further.How he can improve himself further.


4.Performance Counseling4.Performance CounselingIt is an interactive process between the employee and hisIt is an interactive process between the employee and his

counselor to anticipate the likely problems in job counselor to anticipate the likely problems in job performance, performance,

defining proactive actions to overcome those problems, and defining proactive actions to overcome those problems, and

implementing those actions on a continuous basis.implementing those actions on a continuous basis.

Steps in Performance Counseling:Steps in Performance Counseling: Rapport between employee and counselor.Rapport between employee and counselor.

Exploring information about performance.Exploring information about performance.

To define future goals.To define future goals.

Drawing action plans.Drawing action plans. 2727(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi Mumbai(c)Mrs. Sarita Kumari,Senior Faculty(HRM),IIBM,Navi Mumbai

Performance Counseling Cont…Performance Counseling Cont…

Pre-requisite for Performance Counseling:Pre-requisite for Performance Counseling:

Organizational culture for performance Organizational culture for performance improvement.improvement.

Continuous desire for learning.Continuous desire for learning.

Continuous dialogue.Continuous dialogue.

Focus on work-related behavior.Focus on work-related behavior.


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Performance Management

Documents

employees performance

measure of performance

performance measure

planning performance

performance review

dimensions of performance

performance standards

names of performance