Performance management

1. Performance management 1. What isperformance? 2. What factors influence performance? 3. How can high performance be achieved? 4. Organizational, team and individual performance Managing performance

2. The components of performance • job-specific task proficiency • non-job-specific proficiency • written and oral communication proficiency • demonstration of effort • personal discipline • facilitation of peer and team performance • supervision / leadership • management / administration Managing performance

3. Influences on performance Performance = = f ( Ability x Motivation) Managing performance

4. ‘AMO’ formula Performance=f (Ability + Motivation + Opportunity to Participate) Managing performance

5. High- performance culture • Culture in which people are aware of the need to perform well, and behave accordingly in order to meet or exceed expectations. Managing performance

6. High- performance culture • People clear about their goals • Relevant skills and competences • High performance is recognized and rewarded • Managers - supportive leaders • Climate of trust and teamwork Managing performance

7. Approaches to developing a high-performance culture: • the implementation a high-performance work system • the use of rewards • the use of systematic methods of managing performance Managing performance

8. High-performance work system (HPWS) • An internally consistent and coherent HRM system that is focused on solving operational problems and implementing the organization’s competitive strategy Managing performance

9. Characteristics of HPWS • HPWS links the selection and promotion decisions to competency models • It is the basis for developing strategies • It establishes compensation and performance management policies. Managing performance

10. System of HPWS • Alternative work practices • High-commitment employment practices Managing performance

11. Alternative work practices • 1) alternative job design • work teams • job enrichment • job rotation • related reforms • 2) formal participatory practices • quality circles • problem-solving groups • team briefings • joint steering committees Managing performance

12. High-commitment employment practices 1) selection and training 2) behaviour-based appraisal 3) contingent pay systems • pay-for-knowledge • group bonuses • profit sharing 4) job security 5) grievance (complaint) system Managing performance

13. Components of an HPWS • Job infrastructure • Training programme • Information sharing and worker involvement mechanisms • Compensation and promotion opportunities Managing performance

14. Managing organizational performance • obtaining better performance • getting them to work well together • improving organisational processes • facilitating the management of change Managing performance

15. The dimensions of managing organizational performance • creating visions for the future • planning • designing improvement interventions • designing measurement and evaluation systems • cultural support systems to reward and reinforce progress. Managing performance

16. Implementing organizational performance management • is aligned to the business strategy • supports to achievement strategic goals • focus on developing • work systems • work environment • individuals Managing performance

17. The organizational performance measurementThe Balanced Scorecard multi-dimensional key performance indicators (KPIs) Managing performance

18. 1. Companies developed Balanced Scorecards 2. Departments created measures that reflected their own internal logic. 3. Measures became linked with performance appraisals and bonuses. 4. The expected performance improvement did not happen. Managing performance

19. The performance prism (Neely, 2002) • Stakeholder Satisfaction. Who are our stakeholders and what do they want and need? • Stakeholder Contribution: What do we want and need from our stakeholders? • Strategies: What strategies do we need to put in place to satisfy these wants and needs? • Processes: What processes do we need to put in place to satisfy these wants and needs? • Capabilities: What capabilities – people, practices, technology and infrastructure - do we need to put in place to allow us to operate our processes more effectively and efficiently? Managing performance

20. Managing team performance Key activities: • Setting work objectives • Setting process objectives • Conducting team reviews Managing performance

21. Setting work objectives • what has to be done, • who does it, • the standards expected • the timescale Managing performance

22. Setting process objectives • interpersonal relationships • the quality of participation • the team’s relationship • the capacity of the team to plan and control • the ability of the team to adapt to new demands and situations • the effectiveness Managing performance

23. Team performance review meetings • General feedback review • progress of the team as a whole • problems which caused difficulties • work reviews • how well the team has functioned • review of the individual contribution (peer review) • group problem solving: • analysis of problems • agreement of what needs to be done • update objectives • review of new requirements, opportunities, threats • updating of objectives and project plans Managing performance