PERFORMANCE MANAGEMENT Presentation

PER
FORMANCE MANAGEMENT
By Ronald Kimaiyo &

Magdalene Kamunya
Objectives
o Define performance management
o An appreciation of the scope of Performance management
o Introduction of the different tools of performance
scorecard
Definition of Performance Management cont.
o Performance management is a shared understanding
about how individuals contribute to an organization's goals.

o Performance management can also be defined as a
broad system that is linked with the processes of planning,

implementing, reviewing and evaluating, for augmenting
growth and productivity at both the individual and
organizational level
Process of Performance Management
 Process of performance management

 According to A Handbook for Measuring Employee
Performance(Amira El-Deeb,DBA) performance
management is the systematic process of
 planning work and setting expectations
 continually monitoring performance
 developing the capacity to perform
 periodically rating performance in a summary fashion
 rewarding good performance
Planning:- The supervisor should meet with

employees to create their performance plans. The
supervisor should establish measurable goals that
align to the strategic and operational plans and
consult with his/her employees when creating these
goals.
Monitoring. The supervisor should monitor employee
progress, not only when there is a progress review due,
but on a continuous basis throughout the appraisal
period.
Developing. The supervisor should be able to determine

from continuous monitoring whether employees need
additional development to achieve their assigned
responsibilities.
Rating. The supervisor will use the knowledge
gained from monitoring the employee's performance
during the appraisal period to compare that
performance against the employee's elements and
standards and assign a rating of record
Rewarding. The supervisor must make meaningful

distinctions when granting awards. Award amounts
should be clearly distinguishable between different
performance levels that are fully successful or above.
Evolution of Performance management
Early 1900s: The Performance Appraisal’s Informal

Beginnings – During this period, Annual Confidential
Reports (ACR’s) /Employee service Records were
maintained for controlling the behaviors of the
employees and these reports provided substantial
information on the performance of the employees.
1950s: Developing a Formal System - The key
hallmark of this phase was that whatever adverse
remarks were incorporated in the performance
reports were communicated to the employees
1960s: Measuring Objectives & Goals -the

influence of the management by objectives started in
this period, PA developed a greater emphasis on
goal-setting and the assessment of performance-
related abilities.
1970s: Finding Flaws - there was a lot of criticism

about how appraisals were being conducted, and
several cases were even taken to court.(use of
psychometrics less subjective)
1980s – Early 2000s: Holistic Measures-

measuring brand new metrics as part of their
appraisal process, such as self-awareness,
communication, teamwork, conflict reduction and
the ability to handle emotions.
Modern Day Performance Management -

increase in performance management systems that
seek multiple feedback sources when assessing an
employee’s performance – this is known as 360-
degree feedback.
Performance management process
Prerequisites for effective PMS
o A well defined connection between PMS and corporate
strategy
o Well defined roles and timelines for both managers and
employees
o A well-articulated process for evaluation
o An effective evaluation tool
o A well understood process and measurement tools

Organisational benefits from effective PMS
o Clarified jobs
o Clarified job expectations
o Enhanced employee engagement
o Talent management & development strategy
o Aligns culture with the strategy.
o A basis for critical HR decisions
o Improves communication within business

Benefits of a PM on the Organisation
o Improvement of the overall organizational
performance by managing the performances of

teams and individuals
o Ensures that the employees understand the
importance of their contributions to the

organizational goals and objectives.
Benefits of a PM on the Organisation
 Enables equitable distribution of incentives and rewards on

a fair and equated basis.
 Establishes clear performance objectives by facilitating an
open communication and a joint dialogue.
 Recognizes and rewards good performance in an
organization hence enables talent retention.
 Providing maximum opportunities for career growth.
 Facilitates a cordial and a harmonious relationship
between an individual employee and the line manager
based on trust and empowerment.
PM Benefits to Employees
 Regularly providing open and transparent job feedbacks to the

employees.
 Establishing a clear linkage between performance and
compensation
 Providing ample learning and development opportunities by
representing the employees in leadership development
programmes, etc.
 Ensures each employee understands what is expected from
them and equally ascertaining whether the employees possess
the required skills and support for fulfilling such expectations.
 Ensures proper aligning or linking of objectives and facilitating
effective communication throughout the organization.
Biases and judgment errors in
performance appraisal
 First Impression (primacy effect): Raters form an overall
impression about the ratee on the basis of some particluar
characteristics of the ratee identified by them
 Halo Effect: The individual’s performance is completely
appraised on the basis of a perceived positive quality, feature
or trait
 Horn Effect: The individual’s performance is completely
appraised on the basis of a negative quality or feature
perceived.
 Excessive Stiffness or Lenience: Depending upon the
raters own standards, values and physical and mental makeup
at the time of appraisal, ratees may be rated very strictly or
leniently.
Biases and judgment errors in
performance appraisal
Central Tendency: Appraisers rate all employees as average
performers. That is, it is an attitude to rate people as neither
high nor low and follow the middle path
Personal Biases: The way a supervisor feels about each of the
individuals working under him - whether he likes or dislikes
them - as a tremendous effect on the rating of their
performances.
Spill over Effect: The present performance is evaluated much
on the basis of past performance
Recency Effect: Rating is influenced by the most recent
behaviour ignoring the commonly demonstrated behaviours
during the entire appraisal period.
Performance management Tools
360 degree feedback
Management by Objectives
Behavior checklist
Psychological appraisals
Components of Performance
Appraisal
cont.
 360-Degree Feedback
360 degree appraisal involves feedback of the
manager, supervisor, team members and any direct
reports. In this method of appraisal, employees’
complete profile has to be collected and assessed. In
addition to evaluating the employees work
performance and technical skill set, an appraiser
collects an in-depth feedback of the employee.
cont.
Management by Objectives
This is an objective type of evaluation which falls
under modern approach of performance appraisal.
In MBO method of performance appraisal, manager
and the employee agree upon specific and obtainable
goals with a set deadline. With this method, the
appraiser can define success and failure easily
cont.
 Behavioral checklist: Behavioral checklist has a
list of criteria that an employee should workup to be
a diligent worker. The behaviors differ according to
the type of job been assessed. This method is
considered favorable as the evaluation is done on the
basis of individual employee performance without
comparisons.
cont.
 Psychological appraisals: This appraisal method
evaluates the employees’ intellect, emotional
stability, analytical skills and other psychological
traits. This method makes it easy for the manager in
placing the employees in appropriate teams.
Performance Management
Trends.
Performance Ratings Will Continue to Disappear
Conversations Will Replace Annual Reviews
Professional Development Will Rise to the Forefront
of Engagement
Employers Will Focus on Gender Bias
Appraisal tool . The Balanced Score
Card Perspectives
INTRODUCTION TO SCORECARD
Cont.
The proposed PMS is based on the Balance scorecard

performance model which offers a somewhat balanced
view of a business : views a business from four
perspectives
PESPECTIVES
Cont.
A performance scorecard is a graphic or an application that

shows the progress over time of a set of targets towards
identified business goal.
MONITORING AND EVALUATING PERFORMANCE
Performance standards
A management-approved expression of the performance

threshold(s), requirement(s), or expectation(s) that must be
met to be appraised at a particular level of performance.
Example of Performance Standards & Ratings
Rating Description Implication /
Action
5 Excellent: Has exceeded Target Incentive
Two Star ** by over 10%.
4 Very Good: Has exceeded target Incentive

One star* by up to 10%, i.e.
between 101% -
110%.
Rating Description Implication /
Action
3 Good Has hit target, or has a Basic Incentive
variance of up to 10%,
i.e. 90% - 100%.
2 Fair Has achieved between Performance

80% - 89%. coaching for 6
months, and
thereafter PIP for 3
months
1 Poor Performance of below PIP for 3 months
80%.
Advantages of Performance Standards
o Communicates key performance factors & expectations.
o Explains how and why employees are evaluated
o Provide a job-relevant basis for evaluating employees,
increasing fairness.
Who will evaluate?
o Managers
o Peers
o Direct reports
o Customers
o Board
Performance review plan
o Reward – February
o Target setting / 4th Quarter review – Dec
o 1st Quarter Review – End march
o 2nd Quarter Review – End June
o 3rd quarter Review – End September

Asante Sana

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PER

By Ronald Kimaiyo &

o Define performance management

o An appreciation of the scope of Performance management

o Introduction of the different tools of performance

o Performance management is a shared understanding

about how individuals contribute to an organization's goals.

broad system that is linked with the processes of planning,

 Process of performance management

Planning:- The supervisor should meet with

Developing. The supervisor should be able to determine

Rewarding. The supervisor must make meaningful

Early 1900s: The Performance Appraisal’s Informal

1960s: Measuring Objectives & Goals -the

1970s: Finding Flaws - there was a lot of criticism

1980s – Early 2000s: Holistic Measures-

Modern Day Performance Management -

o A well defined connection between PMS and corporate

o An effective evaluation tool

o A well understood process and measurement tools

o Clarified job expectations

o Enhanced employee engagement

o Talent management & development strategy

o Aligns culture with the strategy.

o A basis for critical HR decisions

o Improves communication within business

o Improvement of the overall organizational

performance by managing the performances of

importance of their contributions to the

 Enables equitable distribution of incentives and rewards on

 Regularly providing open and transparent job feedbacks to the

360 degree feedback

The proposed PMS is based on the Balance scorecard

A performance scorecard is a graphic or an application that

A management-approved expression of the performance

4 Very Good: Has exceeded target Incentive

2 Fair Has achieved between Performance

o Communicates key performance factors & expectations.

o Explains how and why employees are evaluated

o Provide a job-relevant basis for evaluating employees,

o Target setting / 4th Quarter review – Dec

o 1st Quarter Review – End march

o 2nd Quarter Review – End June

o 3rd quarter Review – End September

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