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Performance Management System and Performance Appraisal (Differences…
Performance Management System and Performance Appraisal
Definitions
Performance Management
Systematic process for improving organizational performance by developing the performance of individuals and teams
Performance Management System
A set of interrelated activities and processes that are treated holistically as an integrated and key component of an organization’s approach to managing performance through people and developing the skills and capabilities of its human capital, thus enhancing organizational capability and the achievement of sustained competitive advantage
Aims
Performance Management
Establish a high-performance culture in which individuals and teams take responsibility for the continuous improvement of business processes and for their own skills and contributions within the framework provided by effective leadership
Performance Management System
To correct poor performance, to sustain good performance and to improve performance
Differences between Performance Appraisal and Performance Management
PA: Annual appraisal meeting
PM: Continuous review with one or more formal reviews
PA: Use of ratings
PM: Ratings less common
PA: Top Down Assessment
PM: Joint process through dialogue
PA: Monolithic system
PM: Flexible process
PA: Focus on quantified objectives
PM: Focus on values and behaviours as well as objectives
PA: Often linked to pay
PM: Less likely to be a direct link to pay
PA: Bureaucratic – complex paperwork
PM: Documentation kept to a minimum
PA: Owned by the HR department
PM: Owned by line managers
Benefits of Performance Management
Managers
Can clarify expectations with the individual members of their teams
Have ‘quality time’ with their staff to discuss matters affecting work, performance and development
Provide better feedback to individuals based on a mutual understanding of needs
Identify areas of individual concern and provide guidance
Build closer working relationships based on mutual trust and respect
Identify individual training and development needs
Organisation
Integrate individual, team and corporate objectives
Guide individual and team effort to meeting overall business needs
Recognize individual contribution
Plan individual careers
Introduce relevant and effective learning and development programmes to meet identified needs
Employees
Know what is expected of themselves
Know where they stand
Know what they need to do to reach their objectives
Can discuss with their manager about their present job, development and training needs and their future
Performance Management Cycle
Plan
Planning refers to agreeing on objectives and competence requirements and producing performance agreements, performance improvement and personal development plans.
Role Profiles
Role Profiles are simple documents which demonstrate clearly the relationship between specific activities/tasks and the personal attributes required to undertake them. They are a blend of JD and JS
Key Performance Indicators
Metrics or other sources of information which indicate how outcomes can be measured or recognized.
Performance Goals
Process of Goals Setting
KRA + KPI = Performance Goal
Criteria of an Effective Performance Goal
A
chievable
R
elevant
M
easurable
S
pecific
T
ime-framed
Strategic Alignment
Integrating the performance goals of individuals with the strategic goals of the organization
Action Planning
Involves achieving agreement between the manager and the individual in three areas : achieving goals, personal development plans, performance development plans
Monitor
Monitoring refers to carrying out continuous checks on what is being done and measuring outcomes in order to assess progress in implementing the plan
Observation
Refers to taking a planned approach to watching your employee ‘in action’
Interim Discussions
Review
Reviewing refers to assessing progress and achievements so that action plans can be prepared and agreed
Areas included in Performance Appraisal Form
Job Title of employee
Name of supervisor
Name of employee
Department of the employee
Date of Hire
Employment Status
Rating Period
Reason for appraisal
Overall Rating
Feedback
Guidelines for Providing Effective Feedback
Guidelines for Dealing with Difficult Situations
Used when managers get a negative reaction from an individual
Guidelines for Handling Difficult Conversations
Used when managers /supervisors face difficulties in providing negative feedback