Learn Management the Easy Way with the Help of Downloadable Power-point Presentations - Learn at Your Own Pace.

1. Learn Management the Easy Way with the Help of Downloadable Power-point Presentations - Learn at Your Own Pace. The Presentation contains Animation. To View the Course please run the “Slide Show”. You Can Run the Slide Show by Using any one of the following options: Click on the “Slide Show” in top menu bar, OR Press the F5 Key Register Now& Download Your Set of6 Free Power-point Presentations with total of more than 1,000 Slides. ManagementStudyGuide.com

2. Performance Management

3. Objective Explain What is Performance Management Describe the Elements of Performance Management System Describe the Objectives of Performance Management Explain the Performance Management Process Explain the Key to Performance Management List the differences between Performance Appraisal and Performance Management Explain the various Performance Appraisal Methods List the Steps in Writing Performance and Goals Explain the Tips for Successful Performance Management Explain What are Key Performance Indicators Describe the Challenges of Performance Management Sources of Errors in Performance Management

4. Introduction Helios Inc. has several employees working across different departments. Lately, Helios has been recording decreased profits. Upon auditing, they found that there was low performance across many departments.

5. Introduction Helios could have easily used an effiective Performance Management System to monitor and manage the performance of it's workforce. Performance Management is an important management tool which is critical for every organization. Let us learn about Performance Management in detail.

6. What is Performance Management? Performance Management means systematically managing all the people in an organization, for innovation, goal focus, productivity and satisfaction. Hence, Performance Management is the approach to the management of people using performance, planned goals and objectives, measurement, feedback and recognition to motivate people to realize their maximum potential

7. Elements of Performance Management System • A Formal Audit/Success Rating overview on an annual or periodic basis with disclosure of results to management: • This is most effectively performed by an outside HR consultant or consulting firm, whose objectivity allows them to observe and identify strengths and weaknesses that are not always observable from within

8. Objective of Performance Management • To review the performance of the employees over a given period of time • To judge the gap between the actual and the desired performance • To help the management in exercising organizational control • Helps to strengthen the relationship and communication between superior – subordinates and management – employees • To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future

9. What is the Balanced Scorecard Financial / Regulatory To satisfy our constituents, what financial & regulatory objectives must we accomplish? Customer To achieve our vision, what customer needs must we serve? Internal To satisfy our customers and stakeholders, in which business processes must we excel? Learning & Growth To achieve our goals, how must we learn, communicate and grow?

10. Possible Performance Measures Internal Perspective Financial / Regulatory Perspective Learning and Growth Customer Perspective Internal Perspective • To satisfy our customers, in which business processes must we excel? • Possible Performance Measures • Cycle Time • Completion Rate • Workload and Employee Utilization • Transactions per employee • Errors or Rework

11. Performance Management for the Organization To give feedback to the staff about their performance. Encourages good work and points towards improvement opportunity Helps setting measurable targets and objectives Increases Role Clarity

12. Performance Evaluation Ratings • Performance evaluation ratings reflect the decision by your immediate supervisor and upper management pertaining to the results you produced over the review period • Supervisors will rate each performance expectation/goal and Competency using anchors listed below: Does Not Meet Expectations Exceeds Expectations Needs Improvement Meets Expectations Outstanding • If the employee is assessed as Does Not Meet Expectations or Needs Improvement for a performance expectation or significant Competency, the supervisor should implement a Work Improvement Plan • The Work Improvement Plan is an explicit action plan designed to correct performance deficiencies within a specified time period. Let’s look at each in detail

13. Feedback Interview There are a few key points that a manager or appraiser should keep in mind for conducting an appraisal Interview, such as: He should develop an action plan from the information gathered He should be direct and specific He should encourage the employee to talk as well He should never get personal

14. Pre-requisites of Effective Performance Management The essentials of an effective performance systems are: Documentation: Documenting the performance. Standards/Goals: Should be according to ‘SMART’ Practical & Standard Format: Format of Performance Management Appraisals should be simple and understandable Evaluation Technique: Appropriate tool and methodology should be used 6 Communication: Indispensable part of the Performance Management Feedback: Should be developmental than judgmental 7 Personal Bias: Efforts should be made to make the performance management free from the influence of interpersonal relationship

15. Performance Management System The Performance Management System consists of a set of sequential dynamic subsystems. Like any system, it has relatively autonomous, but interdependent and inter-related parts, which ensure effective and smooth functioning of the total system

16. Key Performance Indicators Some of the Key Performance Indicators that can be used to measure performance are: • Employee Productivity • Average sales turnover per employee • Average profit per employee • Value added per employee • Employee Cost • Employment costs as % of sales turnover / profit • Employment costs per employee • Employment costs as % of operating costs • Employee Turnover/Loyalty • % of employees that leave the organization in a given time period • Average length of service

17. There are different ways in which the rating given by the appraiser to the employee may be prone to error • Let’s look at each in detail Sources of Errors in Performance Management • Such false ratings and various other errors may adversely affect the data collected during performance appraisals • Some of the most frequent causes of errors are as follows: • Unclear Standards • Halo Effect • Personal preferences, prejudices, and biases • Discrimination • First Impressions • Central Tendency • Leniency/Strictness • Recency Effect • Actor-observer bias • Stereotyping

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