Unit- 2.Performance Management Process

Herman Aguinis, University of Colorado at Denver

Performance Management Process

Prof. Preeti BhaskarSymbiosis Centre for Management Studies,

NOIDA

Herman Aguinis, University of Colorado at Denver

Performance Renewal and Recontracting

Performance Review

Performance Assessment

Performance Execution

Performance Planning

Prerequisites

2–2

Herman Aguinis, University of Colorado at Denver

Performance Renewal and Recontracting

Performance Review

Performance Assessment

Performance Execution

Performance Planning

Prerequisites

2–3

Herman Aguinis, University of Colorado at Denver

Prerequisites

Knowledge of the organization’s mission and strategic goals

Knowledge of the job

2–4

Herman Aguinis, University of Colorado at Denver

Knowledge of mission and strategic goals

• Strategic planning

–Purpose or reason for organization’s existence

–Where organization is going–Organizational goals–Strategies for attaining goals

2–5

Herman Aguinis, University of Colorado at Denver

Mission and Goals

Cascade effect throughout organization

2–62–6

Organization

Unit

Employee

Herman Aguinis, University of Colorado at Denver2–7

B. Knowledge of the job

• Job analysis of key components– Activities, tasks, products, services,

processes• KSAs required to do the job

– Knowledge– Skills– Abilities

2–7

Herman Aguinis, University of Colorado at Denver2–8

Job Description

• Job duties• KSAs• Working conditions

2–8

Herman Aguinis, University of Colorado at Denver

Job analysis

• Use a variety of tools– Interviews–Observation–Questionnaires (available on Internet)

2–9

Herman Aguinis, University of Colorado at Denver

Job analysis follow-up

• All incumbents should – review information and –provide feedback –Task

• Frequency• Criticality

2–10

Herman Aguinis, University of Colorado at Denver

Performance Renewal and Recontracting

Performance Review

Performance Assessment

Performance Execution

Performance Planning

Prerequisites

2–11

Herman Aguinis, University of Colorado at Denver2–12

Results

• Key accountabilities• Specific objectives• Performance

standards

Behavior

• How a job is done• Behaviour criteria

such as : communication skill , attitude, customer service etc.

Development Plan

• Areas for improvement

• Goals to be achieved in each area of improvement

Performance Planning

Herman Aguinis, University of Colorado at Denver

Results• Broad areas of a job for which the

employee is responsible for producing results

Key accountabilities

• Statements of outcomes• Important • Measurable

Specific

objectives

• Measure” to evaluate how well employees have achieved each objective

• Information on acceptable and unacceptable performance, such as

Performance standards

“quality, quantity ,cost &time

Herman Aguinis, University of Colorado at Denver

Behaviors

2–14

Competencies

• How a job is done• Behaviour criteria such as : communication skill ,

attitude, customer service etc.

• Measurable clusters of KSAs• Critical in determining how results will be achieved

Herman Aguinis, University of Colorado at Denver

Performance Planning:Development Plan

Areas for improvement Goals to be achieved in each area

of improvement

2–15

Herman Aguinis, University of Colorado at Denver

Performance Renewal and Recontracting

Performance Review

Performance Assessment

Performance Execution

Performance Planning

Prerequisites

2–16

Herman Aguinis, University of Colorado at Denver

Performance Execution:Employee Responsibilities

Commitment to goal achievement Ongoing requests for feedback and

coaching Communication with supervisor Collecting and sharing performance

data Preparing for performance reviews

2–17

Herman Aguinis, University of Colorado at Denver

Performance Execution:Manager Responsibilities

• Observation and documentation• Updates• Feedback• Resources• Reinforcement

2–18

Herman Aguinis, University of Colorado at Denver

Performance Renewal and Recontracting

Performance Review

Performance Assessment

Performance Execution

Performance Planning

Prerequisites

2–19

Herman Aguinis, University of Colorado at Denver

Performance Assessment

• Manager assessment• Self-assessment• Other sources (e.g., peers,

customers, etc.)

2–20

Herman Aguinis, University of Colorado at Denver

Multiple Assessments Are Necessary

Increase employee ownershipIncrease commitmentProvide informationEnsure mutual understanding

2–21

Herman Aguinis, University of Colorado at Denver

Performance Renewal and Recontracting

Performance Review

Performance Assessment

Performance Execution

Performance Planning

Prerequisites

2–22

Herman Aguinis, University of Colorado at Denver

Performance ReviewOverview of Appraisal Meeting

• Past– Behaviors and results

• Present– Compensation to be received

• Future– New goals and development plans

2–23

Herman Aguinis, University of Colorado at Denver

1. Identify what the employee has done well and poorly

2. Solicit feedback3. Discuss the implications of changing

behaviors

2–24

Six Steps for Conducting Productive Performance Reviews

Herman Aguinis, University of Colorado at Denver

Six Steps for Conducting Productive Performance Reviews

4. Explain how skills used in past achievements can help overcome any performance problems

5. Agree on an action plan

6. Set a follow-up meeting and agree on behaviors, actions, attitudes to be evaluated

2–25

Herman Aguinis, University of Colorado at Denver

Performance Renewal and Recontracting

Performance Review

Performance Assessment

Performance Execution

Performance Planning

Prerequisites

2–26

Herman Aguinis, University of Colorado at Denver

Performance Renewal andRecontracting

• Same as/different from Performance Planning–Uses insights and information from

previous phases–Cycle begins again

2–27

Herman Aguinis, University of Colorado at Denver

Performance Management ProcessSummary: Key Points

Ongoing processEach component is important

If one is implemented poorly, whole system suffers

Links between components must be clear

2–28

Herman Aguinis, University of Colorado at Denver

Thank You