SlideShare a Scribd company logo
1 of 31
PERFORMANCE & COMPENSATION MGT
(HRM 751)
CHAPTER 2: THE PERFORMANCE
MANAGEMENT PROCESS
Prepared by:
Shirley Angie Sitimin
2012849092
BM7703F
During the Presentation
You may....

 Ask questions

 Offer ideas & suggestions
PERFORMANCE MANAGEMENT
PROCESS (PMP):OVERVIEW
 Where Performance Mgt
‘Fits’?
 Definition of PMP
 Purposes of PMP
 Responsibilities of
Manager in PMP
 Responsibilities of
Supervisor & Employee
in PMP
 Various Diagram of PMP

•Performance Planning

•Managing Performance
•Performance
Review/Appraisal
•Performance Reward
•Challenges of PMP

•Conclusions
•Recommendations
WHERE PERFORMANCE
MANAGEMENT "FITS"?
How can I
help?
How are we
doing?
What is our job?
Does anybody care?
How am I dooing?
What is my job?
Source: Roger D’Aprix
 This is a pyramid showing some of the key questions
employees of organization ask to employer.
 Often employees do not know what are expected from
them.

 A fundamental step in performance management is
communicating job expectations. Absent of clear
expectations, employees do not have the required tools
to perform their job functions.
 Roger D'Aprix (2008) has identifies six key questions
employees need answered by their boss in order to
perform their job effectively.
PERFORMANCE MANAGEMENT
PROCESS (PMP) DEFINITION
 A continuous negotiation process that calls for effective
communication (Acuff, 2008).
 Align employee's goals & to those of the organization (
Shafudah, 2010).
 PMP is defined as a continuous process where supervisors
and employees work together to establish objectives,
monitor progress toward these objectives and assess results.
With this process, employees receive regular feedback and
coaching which is a vital development process for all
employees (KSU, 2009).
 Armstrong & Baron (2005) emphasized that PMP is a
strategy which relates to every activity of organization and
its implementation depends on organizational context and
can differ from organization to organization.

 An on going cycle that underscores the need for supervisors
& employees to work together in determining the
organization & employee's goals.

 A cycle with discussions varying year to year based on
changing objectives ( Raymond, 2006).
PURPOSES OF PMP
 To develop people & improve performance

 Allows individuals to know what is expected of them by the
organisation they work in and so they know what they need
to do to help the organisation to be a success and for them to
participate towards that success.

 To provide honest & accurate formal evaluations
 PMP purpose is to allow for a two way feedback
between supervisor and employee to aim at supporting
rewards or punishment for performance practices.

 To drive capability development. It is typically designed
to help employees understand what they need to learn
and how they need to learn it.
RESPONSIBILITIES OF
MANAGER IN PMP
 Take an active role in the process
 Set realistic goals that aligned with the company
strategy

 Measure result objectively
 Identify needs & resources for employees
development

 Responsible to support the process throughout the
rating period
RESPONSIBILITIES OF SUPERVISOR
& EMPLOYEE IN PMP
Supervisor
1.

Provide on going performance feedback

2.

Make clear company direction

3.

Shared accountability. supervisor needs to provide open,
honest and constructive feedback to employee on their
performance

4.

Use a variety of methods and tools when monitoring and
giving feedback about employee's performance

5.

To assist the employee throughout the appraisal period in
improving aspects of performance identified as needing
improvement.
Employee
1. To actively giving inputs
2. Discuss any concerns and questions about any part of their
job or the performance management process with his or her
supervisor

3. Responsible for continuous self-assessment
4. Responsible to take personal ownership for development
by identifying and participating in career development

5. Employee need to mutually agree on performance
expectations and competencies during the developmental
plan with supervisor
VARIOUS DIAGRAM
/MODEL OF PMP
Note: There are 4 models shown in the slides
WHY THERE ARE VARIOUS MODEL OF PMP?
 It is designed based on the suitability of the company
 The situation is different from one organization to another/within
organization
 The formulation of such model needs to be approached from a
participatory perspective
 Not all types of performance management process model are right
for companies. Luckily there are several different types that can be
chosen by an organization which will work best for the company.
PERFORMANCE MANAGEMENT
PROCESS DIAGRAM (COMMON MODEL)
WHY THIS MODEL?
 It recognizes the important of coaching as it connects
each stage of the model
 It calls for the alignment of employee's goals to those of
the organization
 Easy to understand & not crowded as it is 4 steps only
 Can be implement easily
THE PROCESS:

PERFORMANCE PLANNING
 The performance planning process, where individual
objectives are linked to organisational goals, is the typical
starting point of the cycle and goal-setting usually occurs
in line with annual standard review cycles (Suutari and
Tahvanainen, 2002).
 According to Aguinis (2007), below are the elements that
been look up during the performance planning stage:
Results
 What needs to be done

 Needs to include the key accountability, specific objectives
& performance standards
Behaviours

 How job is done
 A consideration of behaviours includes discussing
competencies which is KSAs

Developmental Plan
 Identifying areas that need improvement & setting goals
to be achieved in each area
 Agree on the development plan that have been discuss
MANAGING PERFORMANCE
 Should be done throughout the year
 Give continuous feedback & learning to employees
 Employee shares or inform on any successes or problem to
success
 In managing performance, supervisor gives employee an
opportunity to express their needs, concern and expectations
WHAT SHOULD SUPERVISOR
COACH?
 Current performance

- "What": Objectives,
Outcomes
- "How": Behaviours,
Competencies
 Development
- Building future capability

- Improving personal skills

• Career aspirations
-Prepare for potential
future assignments
- Using capabilities to
choose a better path
PERFORMANCE
REVIEW/APPRAISAL
 Involves the meeting between employee & manager
to review their assessment
 Provides a formal setting in which employee
receives feedback on his performance
 Performance appraisal summarizes the employee's
contributions over the entire appraisal period which
is one year period
 When doing performance review, each employee can be
placed into one of the three categories which are:
•
High Performer - Consistently exceeds standards,
proactively problem solves, takes appropriate initiative, and is
a positive influence on others as well as a good role model.
•
Middle Performer - Meets standards, responds well to
others’ problem solving ideas, strives to do a good job and may
need more experience or coaching. May be influenced either by
the high or the low performer.
•
Low Performer - Does not consistently meet standards,
may respond to problems in a negative way. May not recognize
the need for performance improvement.
6 STEPS FOR CONDUCTING
PRODUCTIVE PERFORMANCE REVIEWS
 Identify what employee has done well & poorly
 Solicit feedback
 Discuss the implications of changing behaviours
 Explain how skills used in past achievements can help overcome
any performance problems
 Agree on an action plan
 Set a follow-up meeting & agree on behaviours, actions, attitudes
to be evaluated

Note: Example of 2 Appraisal forms shown in the slides
PERFORMANCE REWARD
 A key value drivers

 Uses non-cash recognition to reward good performance
 Give rewards based on employee hard work and
outstanding performance

 Rewarding performance should be an on-going
managerial activity and not just an annual pay-linked
ritual
 According to Armstrong (2002), his conceptualisation of
‘total reward’, this comprises both financial and nonfinancial elements
THE PERFORMANCE
TIMELINE
 The performance management process timeline is
different from organization to organization. It is
depends on the company to decide when to start the
performance management process.
 The timeline is either done yearly or annually, where
yearly is starting from January to December while
annually is on January to June (first half) and the other is
July to December (second half).
 The performance management process will work in one
cycle and covers 12 months period consistent with
individual's performance year starting from the date of
job confirmation.
CHALLENGES TO EFFECTIVE PMP

 To ensure everyone's performance is managed in all areas of
their work

 To make sure the PMP was carried out in an honest manner
 Supervisor & employee need to have good negotiating skills
 Not all organisations are led by democratic leaders
where all employees are treated with trust

 Change management is a challenge in itself. In order to
manage performance one has to be mindful of changes
in the environment and to adapt to it by managing the
change
CONCLUSIONS
 It can be concluded that in order for the process to make
sense, there should be a supervisor and employees for
successful implementation of the process

 There is a need for some leadership and management skills
to be applied as well as the consideration of personal attitude
and behaviour to ensure that the process is been lead well.
RECOMMENDATIONS
 Send managers & supervisors for training (Example:
Leadership training, Communication skills training)

 Do proper documentations for the PMP

 Do proper research which PMP is most suitable for
the organization
 To develop a strategic plan accompanied by employee
performance plan with clear and measurable targets

 Improve their systems, rules and procedures to facilitate
effective employee performance.
Q & A sessions

-Thank you for your kind
attention-

More Related Content

What's hot

Performance Management System
Performance Management SystemPerformance Management System
Performance Management SystemVipul Saxena
 
Unit- 2. Performance Management Process
Unit- 2.	Performance Management ProcessUnit- 2.	Performance Management Process
Unit- 2. Performance Management ProcessPreeti Bhaskar
 
Performance Management System
Performance Management SystemPerformance Management System
Performance Management SystemSurabhi Mohan
 
Performance management 1
Performance management 1Performance management 1
Performance management 1IMCOST
 
5 Employee Relations Metrics you Should be Tracking & Why
5 Employee Relations Metrics you Should be Tracking & Why5 Employee Relations Metrics you Should be Tracking & Why
5 Employee Relations Metrics you Should be Tracking & WhyDovetail Software
 
Performance Management System
Performance Management SystemPerformance Management System
Performance Management SystemMayank Singh
 
Performance Management
Performance Management Performance Management
Performance Management umrez
 
Performance management
Performance management Performance management
Performance management vildan esenyel
 
Performance Management System & Performance Appraisal
Performance Management System & Performance AppraisalPerformance Management System & Performance Appraisal
Performance Management System & Performance AppraisalArun VI
 
Performance Management Overview {Lecture Notes}
Performance Management Overview {Lecture Notes}Performance Management Overview {Lecture Notes}
Performance Management Overview {Lecture Notes}FellowBuddy.com
 
Performance management
Performance management Performance management
Performance management Preeti Bhaskar
 
5.performance management
5.performance management5.performance management
5.performance managementBima Hermastho
 

What's hot (20)

Performance Management System
Performance Management SystemPerformance Management System
Performance Management System
 
Unit- 2. Performance Management Process
Unit- 2.	Performance Management ProcessUnit- 2.	Performance Management Process
Unit- 2. Performance Management Process
 
Performance planning
Performance planningPerformance planning
Performance planning
 
Performance management
Performance managementPerformance management
Performance management
 
Performance Management System
Performance Management SystemPerformance Management System
Performance Management System
 
Performance management 1
Performance management 1Performance management 1
Performance management 1
 
5 Employee Relations Metrics you Should be Tracking & Why
5 Employee Relations Metrics you Should be Tracking & Why5 Employee Relations Metrics you Should be Tracking & Why
5 Employee Relations Metrics you Should be Tracking & Why
 
Performance Management System
Performance Management SystemPerformance Management System
Performance Management System
 
Performance Management
Performance Management Performance Management
Performance Management
 
Performance management
Performance managementPerformance management
Performance management
 
Performance management
Performance management Performance management
Performance management
 
Performance management
Performance managementPerformance management
Performance management
 
Talent strategy
Talent strategyTalent strategy
Talent strategy
 
Performance Management System & Performance Appraisal
Performance Management System & Performance AppraisalPerformance Management System & Performance Appraisal
Performance Management System & Performance Appraisal
 
Performance Management Overview {Lecture Notes}
Performance Management Overview {Lecture Notes}Performance Management Overview {Lecture Notes}
Performance Management Overview {Lecture Notes}
 
HR PLANNING
HR PLANNINGHR PLANNING
HR PLANNING
 
Performance management
Performance management Performance management
Performance management
 
5.performance management
5.performance management5.performance management
5.performance management
 
Hr audit
Hr auditHr audit
Hr audit
 
Hr Balanced scorecard
Hr Balanced  scorecardHr Balanced  scorecard
Hr Balanced scorecard
 

Viewers also liked

performance management system
performance management systemperformance management system
performance management systemgurpreetsaini13
 
Managed Service Overview
Managed Service OverviewManaged Service Overview
Managed Service Overviewanwarizal
 
Monitoring for service delivery
Monitoring for service deliveryMonitoring for service delivery
Monitoring for service deliveryIRC
 
Performance Management
Performance ManagementPerformance Management
Performance ManagementVisualBee.com
 
Performance Management Process {Lecture Notes}
Performance Management Process {Lecture Notes}Performance Management Process {Lecture Notes}
Performance Management Process {Lecture Notes}FellowBuddy.com
 
Performance planning
Performance planningPerformance planning
Performance planningNcell
 
Define performance & choosing a measurement approach
Define performance & choosing a measurement approachDefine performance & choosing a measurement approach
Define performance & choosing a measurement approachkahogan62
 
Performance planning
Performance planningPerformance planning
Performance planningNilesh Rajput
 
Unit- 3. Performance Management and strategic Planning
Unit- 3.	Performance Management and strategic PlanningUnit- 3.	Performance Management and strategic Planning
Unit- 3. Performance Management and strategic PlanningPreeti Bhaskar
 
Performance appraisals HR PPT @ MBA
Performance appraisals HR PPT @ MBAPerformance appraisals HR PPT @ MBA
Performance appraisals HR PPT @ MBABabasab Patil
 
Telecom Performance Management System: Overview
Telecom Performance Management System: OverviewTelecom Performance Management System: Overview
Telecom Performance Management System: OverviewPavel Lechenko
 
Chapter 3: Performance Planning
Chapter 3: Performance PlanningChapter 3: Performance Planning
Chapter 3: Performance PlanningHRM751
 
Strategic Performance Management
Strategic Performance ManagementStrategic Performance Management
Strategic Performance ManagementElijah Ezendu
 
Performance management system
Performance management systemPerformance management system
Performance management systemtsheten
 
Chapter 8 - Performance Management
Chapter 8 - Performance ManagementChapter 8 - Performance Management
Chapter 8 - Performance ManagementKim Michelle Tan
 

Viewers also liked (17)

Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisal
 
performance management system
performance management systemperformance management system
performance management system
 
Managed Service Overview
Managed Service OverviewManaged Service Overview
Managed Service Overview
 
Monitoring for service delivery
Monitoring for service deliveryMonitoring for service delivery
Monitoring for service delivery
 
Performance Management
Performance ManagementPerformance Management
Performance Management
 
Performance Management Process {Lecture Notes}
Performance Management Process {Lecture Notes}Performance Management Process {Lecture Notes}
Performance Management Process {Lecture Notes}
 
Performance planning
Performance planningPerformance planning
Performance planning
 
Performance planning
Performance planningPerformance planning
Performance planning
 
Define performance & choosing a measurement approach
Define performance & choosing a measurement approachDefine performance & choosing a measurement approach
Define performance & choosing a measurement approach
 
Performance planning
Performance planningPerformance planning
Performance planning
 
Unit- 3. Performance Management and strategic Planning
Unit- 3.	Performance Management and strategic PlanningUnit- 3.	Performance Management and strategic Planning
Unit- 3. Performance Management and strategic Planning
 
Performance appraisals HR PPT @ MBA
Performance appraisals HR PPT @ MBAPerformance appraisals HR PPT @ MBA
Performance appraisals HR PPT @ MBA
 
Telecom Performance Management System: Overview
Telecom Performance Management System: OverviewTelecom Performance Management System: Overview
Telecom Performance Management System: Overview
 
Chapter 3: Performance Planning
Chapter 3: Performance PlanningChapter 3: Performance Planning
Chapter 3: Performance Planning
 
Strategic Performance Management
Strategic Performance ManagementStrategic Performance Management
Strategic Performance Management
 
Performance management system
Performance management systemPerformance management system
Performance management system
 
Chapter 8 - Performance Management
Chapter 8 - Performance ManagementChapter 8 - Performance Management
Chapter 8 - Performance Management
 

Similar to Chapter 2: Performance Management Process

Performance management module 2 Kerala University
Performance management module 2 Kerala UniversityPerformance management module 2 Kerala University
Performance management module 2 Kerala UniversityPOOJA UDAYAN
 
Performance Reviews & Appraisal - Information and Training by Pathway Group
Performance Reviews & Appraisal - Information and Training by Pathway GroupPerformance Reviews & Appraisal - Information and Training by Pathway Group
Performance Reviews & Appraisal - Information and Training by Pathway GroupThe Pathway Group
 
Introduction to Employee performance management(EPM) -Performance Management ...
Introduction to Employee performance management(EPM) -Performance Management ...Introduction to Employee performance management(EPM) -Performance Management ...
Introduction to Employee performance management(EPM) -Performance Management ...Mouneswari
 
Coaching for Excellence - Process Guide
Coaching for Excellence - Process GuideCoaching for Excellence - Process Guide
Coaching for Excellence - Process GuideTrey Scarpa
 
Performance management
Performance managementPerformance management
Performance managementNalin Goel
 
MBO Process (Management by Objective)
MBO Process (Management by Objective)MBO Process (Management by Objective)
MBO Process (Management by Objective)Sharif Mrh
 
Performance Appraisal.pptx
Performance Appraisal.pptxPerformance Appraisal.pptx
Performance Appraisal.pptxGelanehDegifie
 
Performance management-23779(1)
Performance management-23779(1)Performance management-23779(1)
Performance management-23779(1)Afnin Hoq
 
Performance management Lectures 24.ppt
Performance management Lectures 24.pptPerformance management Lectures 24.ppt
Performance management Lectures 24.pptAbhinandaBhattachary
 
Human Resource Management - G.O.L TEAM by Mr. Sherif Osman
Human Resource Management - G.O.L TEAM by Mr. Sherif Osman Human Resource Management - G.O.L TEAM by Mr. Sherif Osman
Human Resource Management - G.O.L TEAM by Mr. Sherif Osman Mostafa Mahmoud
 
Performance appraisal final copy
Performance appraisal final copyPerformance appraisal final copy
Performance appraisal final copyBismah Adam
 
Performance appraisal final copy
Performance appraisal final copyPerformance appraisal final copy
Performance appraisal final copyBismah Adam
 
Performance appraisal final copy
Performance appraisal final copyPerformance appraisal final copy
Performance appraisal final copyBismah Adam
 
Performance appraisal principles
Performance appraisal principlesPerformance appraisal principles
Performance appraisal principlesLearningade
 
5-Performance Management by Jamshed (2).pptx
5-Performance Management by Jamshed (2).pptx5-Performance Management by Jamshed (2).pptx
5-Performance Management by Jamshed (2).pptxCityComputers3
 
Performance management and career planning
Performance management and career planningPerformance management and career planning
Performance management and career planningjairane355
 
Manager's manual rpms
Manager's manual rpmsManager's manual rpms
Manager's manual rpmsJulie Alvero
 
performance management
performance managementperformance management
performance managementJavaria Liaqat
 
Performanceaprsl
PerformanceaprslPerformanceaprsl
Performanceaprsldestiny30
 

Similar to Chapter 2: Performance Management Process (20)

Performance management module 2 Kerala University
Performance management module 2 Kerala UniversityPerformance management module 2 Kerala University
Performance management module 2 Kerala University
 
Performance Reviews & Appraisal - Information and Training by Pathway Group
Performance Reviews & Appraisal - Information and Training by Pathway GroupPerformance Reviews & Appraisal - Information and Training by Pathway Group
Performance Reviews & Appraisal - Information and Training by Pathway Group
 
Introduction to Employee performance management(EPM) -Performance Management ...
Introduction to Employee performance management(EPM) -Performance Management ...Introduction to Employee performance management(EPM) -Performance Management ...
Introduction to Employee performance management(EPM) -Performance Management ...
 
Coaching for Excellence - Process Guide
Coaching for Excellence - Process GuideCoaching for Excellence - Process Guide
Coaching for Excellence - Process Guide
 
Performance management
Performance managementPerformance management
Performance management
 
MBO Process (Management by Objective)
MBO Process (Management by Objective)MBO Process (Management by Objective)
MBO Process (Management by Objective)
 
Performance Appraisal.pptx
Performance Appraisal.pptxPerformance Appraisal.pptx
Performance Appraisal.pptx
 
Performance management-23779(1)
Performance management-23779(1)Performance management-23779(1)
Performance management-23779(1)
 
Performance reviews 101
Performance reviews 101Performance reviews 101
Performance reviews 101
 
Performance management Lectures 24.ppt
Performance management Lectures 24.pptPerformance management Lectures 24.ppt
Performance management Lectures 24.ppt
 
Human Resource Management - G.O.L TEAM by Mr. Sherif Osman
Human Resource Management - G.O.L TEAM by Mr. Sherif Osman Human Resource Management - G.O.L TEAM by Mr. Sherif Osman
Human Resource Management - G.O.L TEAM by Mr. Sherif Osman
 
Performance appraisal final copy
Performance appraisal final copyPerformance appraisal final copy
Performance appraisal final copy
 
Performance appraisal final copy
Performance appraisal final copyPerformance appraisal final copy
Performance appraisal final copy
 
Performance appraisal final copy
Performance appraisal final copyPerformance appraisal final copy
Performance appraisal final copy
 
Performance appraisal principles
Performance appraisal principlesPerformance appraisal principles
Performance appraisal principles
 
5-Performance Management by Jamshed (2).pptx
5-Performance Management by Jamshed (2).pptx5-Performance Management by Jamshed (2).pptx
5-Performance Management by Jamshed (2).pptx
 
Performance management and career planning
Performance management and career planningPerformance management and career planning
Performance management and career planning
 
Manager's manual rpms
Manager's manual rpmsManager's manual rpms
Manager's manual rpms
 
performance management
performance managementperformance management
performance management
 
Performanceaprsl
PerformanceaprslPerformanceaprsl
Performanceaprsl
 

More from HRM751

BENEFITS AND SERVICES ADMINISTRATION
BENEFITS AND SERVICES ADMINISTRATIONBENEFITS AND SERVICES ADMINISTRATION
BENEFITS AND SERVICES ADMINISTRATIONHRM751
 
JOB EVALUATION
JOB EVALUATIONJOB EVALUATION
JOB EVALUATIONHRM751
 
COMPENSATION ISSUES
COMPENSATION ISSUESCOMPENSATION ISSUES
COMPENSATION ISSUESHRM751
 
Overview of Compensation Management
Overview of Compensation ManagementOverview of Compensation Management
Overview of Compensation ManagementHRM751
 
Equity in Compensation
Equity in Compensation Equity in Compensation
Equity in Compensation HRM751
 
Overview of Performance Management
Overview of Performance ManagementOverview of Performance Management
Overview of Performance ManagementHRM751
 
Chapter 4: Performance Execution
Chapter 4: Performance ExecutionChapter 4: Performance Execution
Chapter 4: Performance ExecutionHRM751
 
Chapter 4: Performance Execution
Chapter 4: Performance ExecutionChapter 4: Performance Execution
Chapter 4: Performance ExecutionHRM751
 
Chapter 3: Performance Execution
Chapter 3: Performance ExecutionChapter 3: Performance Execution
Chapter 3: Performance ExecutionHRM751
 
Chapter 5: Performance Appraisal
Chapter 5: Performance AppraisalChapter 5: Performance Appraisal
Chapter 5: Performance AppraisalHRM751
 
Chapter 1: Overview of Performance Management
Chapter 1: Overview of Performance ManagementChapter 1: Overview of Performance Management
Chapter 1: Overview of Performance ManagementHRM751
 

More from HRM751 (11)

BENEFITS AND SERVICES ADMINISTRATION
BENEFITS AND SERVICES ADMINISTRATIONBENEFITS AND SERVICES ADMINISTRATION
BENEFITS AND SERVICES ADMINISTRATION
 
JOB EVALUATION
JOB EVALUATIONJOB EVALUATION
JOB EVALUATION
 
COMPENSATION ISSUES
COMPENSATION ISSUESCOMPENSATION ISSUES
COMPENSATION ISSUES
 
Overview of Compensation Management
Overview of Compensation ManagementOverview of Compensation Management
Overview of Compensation Management
 
Equity in Compensation
Equity in Compensation Equity in Compensation
Equity in Compensation
 
Overview of Performance Management
Overview of Performance ManagementOverview of Performance Management
Overview of Performance Management
 
Chapter 4: Performance Execution
Chapter 4: Performance ExecutionChapter 4: Performance Execution
Chapter 4: Performance Execution
 
Chapter 4: Performance Execution
Chapter 4: Performance ExecutionChapter 4: Performance Execution
Chapter 4: Performance Execution
 
Chapter 3: Performance Execution
Chapter 3: Performance ExecutionChapter 3: Performance Execution
Chapter 3: Performance Execution
 
Chapter 5: Performance Appraisal
Chapter 5: Performance AppraisalChapter 5: Performance Appraisal
Chapter 5: Performance Appraisal
 
Chapter 1: Overview of Performance Management
Chapter 1: Overview of Performance ManagementChapter 1: Overview of Performance Management
Chapter 1: Overview of Performance Management
 

Recently uploaded

Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptx
Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptxContemporary Economic Issues Facing the Filipino Entrepreneur (1).pptx
Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptxMarkAnthonyAurellano
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfRbc Rbcua
 
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCRashishs7044
 
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu MenzaYouth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menzaictsugar
 
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdfNewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdfKhaled Al Awadi
 
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607dollysharma2066
 
Future Of Sample Report 2024 | Redacted Version
Future Of Sample Report 2024 | Redacted VersionFuture Of Sample Report 2024 | Redacted Version
Future Of Sample Report 2024 | Redacted VersionMintel Group
 
Market Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 EditionMarket Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 EditionMintel Group
 
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCRashishs7044
 
Investment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy CheruiyotInvestment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy Cheruiyotictsugar
 
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / NcrCall Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncrdollysharma2066
 
2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis UsageNeil Kimberley
 
Organizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessOrganizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessSeta Wicaksana
 
8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCR8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCRashishs7044
 
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deckPitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deckHajeJanKamps
 
Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.Anamaria Contreras
 
International Business Environments and Operations 16th Global Edition test b...
International Business Environments and Operations 16th Global Edition test b...International Business Environments and Operations 16th Global Edition test b...
International Business Environments and Operations 16th Global Edition test b...ssuserf63bd7
 
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdfIntro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdfpollardmorgan
 

Recently uploaded (20)

Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptx
Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptxContemporary Economic Issues Facing the Filipino Entrepreneur (1).pptx
Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptx
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdf
 
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
 
Corporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information TechnologyCorporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information Technology
 
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu MenzaYouth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
 
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdfNewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
 
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
 
Future Of Sample Report 2024 | Redacted Version
Future Of Sample Report 2024 | Redacted VersionFuture Of Sample Report 2024 | Redacted Version
Future Of Sample Report 2024 | Redacted Version
 
Market Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 EditionMarket Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 Edition
 
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
 
Investment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy CheruiyotInvestment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy Cheruiyot
 
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / NcrCall Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
 
2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage
 
Organizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessOrganizational Structure Running A Successful Business
Organizational Structure Running A Successful Business
 
8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCR8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCR
 
Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)
 
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deckPitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
 
Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.
 
International Business Environments and Operations 16th Global Edition test b...
International Business Environments and Operations 16th Global Edition test b...International Business Environments and Operations 16th Global Edition test b...
International Business Environments and Operations 16th Global Edition test b...
 
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdfIntro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
 

Chapter 2: Performance Management Process

  • 1. PERFORMANCE & COMPENSATION MGT (HRM 751) CHAPTER 2: THE PERFORMANCE MANAGEMENT PROCESS Prepared by: Shirley Angie Sitimin 2012849092 BM7703F
  • 2. During the Presentation You may....  Ask questions  Offer ideas & suggestions
  • 3. PERFORMANCE MANAGEMENT PROCESS (PMP):OVERVIEW  Where Performance Mgt ‘Fits’?  Definition of PMP  Purposes of PMP  Responsibilities of Manager in PMP  Responsibilities of Supervisor & Employee in PMP  Various Diagram of PMP •Performance Planning •Managing Performance •Performance Review/Appraisal •Performance Reward •Challenges of PMP •Conclusions •Recommendations
  • 4. WHERE PERFORMANCE MANAGEMENT "FITS"? How can I help? How are we doing? What is our job? Does anybody care? How am I dooing? What is my job? Source: Roger D’Aprix
  • 5.  This is a pyramid showing some of the key questions employees of organization ask to employer.  Often employees do not know what are expected from them.  A fundamental step in performance management is communicating job expectations. Absent of clear expectations, employees do not have the required tools to perform their job functions.  Roger D'Aprix (2008) has identifies six key questions employees need answered by their boss in order to perform their job effectively.
  • 6. PERFORMANCE MANAGEMENT PROCESS (PMP) DEFINITION  A continuous negotiation process that calls for effective communication (Acuff, 2008).  Align employee's goals & to those of the organization ( Shafudah, 2010).  PMP is defined as a continuous process where supervisors and employees work together to establish objectives, monitor progress toward these objectives and assess results. With this process, employees receive regular feedback and coaching which is a vital development process for all employees (KSU, 2009).
  • 7.  Armstrong & Baron (2005) emphasized that PMP is a strategy which relates to every activity of organization and its implementation depends on organizational context and can differ from organization to organization.  An on going cycle that underscores the need for supervisors & employees to work together in determining the organization & employee's goals.  A cycle with discussions varying year to year based on changing objectives ( Raymond, 2006).
  • 8. PURPOSES OF PMP  To develop people & improve performance  Allows individuals to know what is expected of them by the organisation they work in and so they know what they need to do to help the organisation to be a success and for them to participate towards that success.  To provide honest & accurate formal evaluations
  • 9.  PMP purpose is to allow for a two way feedback between supervisor and employee to aim at supporting rewards or punishment for performance practices.  To drive capability development. It is typically designed to help employees understand what they need to learn and how they need to learn it.
  • 10. RESPONSIBILITIES OF MANAGER IN PMP  Take an active role in the process  Set realistic goals that aligned with the company strategy  Measure result objectively  Identify needs & resources for employees development  Responsible to support the process throughout the rating period
  • 11. RESPONSIBILITIES OF SUPERVISOR & EMPLOYEE IN PMP Supervisor 1. Provide on going performance feedback 2. Make clear company direction 3. Shared accountability. supervisor needs to provide open, honest and constructive feedback to employee on their performance 4. Use a variety of methods and tools when monitoring and giving feedback about employee's performance 5. To assist the employee throughout the appraisal period in improving aspects of performance identified as needing improvement.
  • 12. Employee 1. To actively giving inputs 2. Discuss any concerns and questions about any part of their job or the performance management process with his or her supervisor 3. Responsible for continuous self-assessment 4. Responsible to take personal ownership for development by identifying and participating in career development 5. Employee need to mutually agree on performance expectations and competencies during the developmental plan with supervisor
  • 13. VARIOUS DIAGRAM /MODEL OF PMP Note: There are 4 models shown in the slides WHY THERE ARE VARIOUS MODEL OF PMP?  It is designed based on the suitability of the company  The situation is different from one organization to another/within organization  The formulation of such model needs to be approached from a participatory perspective  Not all types of performance management process model are right for companies. Luckily there are several different types that can be chosen by an organization which will work best for the company.
  • 15. WHY THIS MODEL?  It recognizes the important of coaching as it connects each stage of the model  It calls for the alignment of employee's goals to those of the organization  Easy to understand & not crowded as it is 4 steps only  Can be implement easily
  • 16. THE PROCESS: PERFORMANCE PLANNING  The performance planning process, where individual objectives are linked to organisational goals, is the typical starting point of the cycle and goal-setting usually occurs in line with annual standard review cycles (Suutari and Tahvanainen, 2002).  According to Aguinis (2007), below are the elements that been look up during the performance planning stage: Results  What needs to be done  Needs to include the key accountability, specific objectives & performance standards
  • 17. Behaviours  How job is done  A consideration of behaviours includes discussing competencies which is KSAs Developmental Plan  Identifying areas that need improvement & setting goals to be achieved in each area  Agree on the development plan that have been discuss
  • 18. MANAGING PERFORMANCE  Should be done throughout the year  Give continuous feedback & learning to employees  Employee shares or inform on any successes or problem to success  In managing performance, supervisor gives employee an opportunity to express their needs, concern and expectations
  • 19. WHAT SHOULD SUPERVISOR COACH?  Current performance - "What": Objectives, Outcomes - "How": Behaviours, Competencies  Development - Building future capability - Improving personal skills • Career aspirations -Prepare for potential future assignments - Using capabilities to choose a better path
  • 20. PERFORMANCE REVIEW/APPRAISAL  Involves the meeting between employee & manager to review their assessment  Provides a formal setting in which employee receives feedback on his performance  Performance appraisal summarizes the employee's contributions over the entire appraisal period which is one year period
  • 21.  When doing performance review, each employee can be placed into one of the three categories which are: • High Performer - Consistently exceeds standards, proactively problem solves, takes appropriate initiative, and is a positive influence on others as well as a good role model. • Middle Performer - Meets standards, responds well to others’ problem solving ideas, strives to do a good job and may need more experience or coaching. May be influenced either by the high or the low performer. • Low Performer - Does not consistently meet standards, may respond to problems in a negative way. May not recognize the need for performance improvement.
  • 22. 6 STEPS FOR CONDUCTING PRODUCTIVE PERFORMANCE REVIEWS  Identify what employee has done well & poorly  Solicit feedback  Discuss the implications of changing behaviours  Explain how skills used in past achievements can help overcome any performance problems  Agree on an action plan  Set a follow-up meeting & agree on behaviours, actions, attitudes to be evaluated Note: Example of 2 Appraisal forms shown in the slides
  • 23. PERFORMANCE REWARD  A key value drivers  Uses non-cash recognition to reward good performance  Give rewards based on employee hard work and outstanding performance  Rewarding performance should be an on-going managerial activity and not just an annual pay-linked ritual  According to Armstrong (2002), his conceptualisation of ‘total reward’, this comprises both financial and nonfinancial elements
  • 25.  The performance management process timeline is different from organization to organization. It is depends on the company to decide when to start the performance management process.  The timeline is either done yearly or annually, where yearly is starting from January to December while annually is on January to June (first half) and the other is July to December (second half).  The performance management process will work in one cycle and covers 12 months period consistent with individual's performance year starting from the date of job confirmation.
  • 26. CHALLENGES TO EFFECTIVE PMP  To ensure everyone's performance is managed in all areas of their work  To make sure the PMP was carried out in an honest manner  Supervisor & employee need to have good negotiating skills
  • 27.  Not all organisations are led by democratic leaders where all employees are treated with trust  Change management is a challenge in itself. In order to manage performance one has to be mindful of changes in the environment and to adapt to it by managing the change
  • 28. CONCLUSIONS  It can be concluded that in order for the process to make sense, there should be a supervisor and employees for successful implementation of the process  There is a need for some leadership and management skills to be applied as well as the consideration of personal attitude and behaviour to ensure that the process is been lead well.
  • 29. RECOMMENDATIONS  Send managers & supervisors for training (Example: Leadership training, Communication skills training)  Do proper documentations for the PMP  Do proper research which PMP is most suitable for the organization
  • 30.  To develop a strategic plan accompanied by employee performance plan with clear and measurable targets  Improve their systems, rules and procedures to facilitate effective employee performance.
  • 31. Q & A sessions -Thank you for your kind attention-