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EFFECTIVE TOOLS FOR PERFORMACE MAAGEMET OF SEIOR

MAAGERS

1. Upward feedback

In leadership development and management development, upward feedback (also

known as manager feedback and subordinate appraisal) is a structured process of
delivering feedback from subordinates to managers, intended to identify ways to increase
management effectiveness and enhance organizational performance. Basic idea: You are
only as good a manager as your subordinate thinks you are. Through the mechanism of
"upward feedback," employees in an organization can influence the behavior of
managers. The feedback is intended create two-way communication between employees
and managers that can assist in developing leadership skills.

Because of the complexity of this process, there are a number of important factors,
including

• Top-level support - Upper management generally provides visible support for the
process, communicating its importance to managers and employees.
• Clear purpose - Upward feedback is usually positioned as developmental. It is
not a classic appraisal; originally it is not designed to be tied to compensation.
That is, the aim of upward feedback is to improve managerial effectiveness.
• Training - Upward feedback is most effective when embedded in a
leadership/management development program.

• Backend support - Once managers get their feedback report, follow-up support is
usually available for report interpretation, action planning, and follows through.
• Confidentiality - Raters and ratees must be confident in the anonymity. In order
for upward feedback to be confidentially facilitated, it can be managed external to
the organization.

2. Balanced scorecard

In 1992, Robert S. Kaplan and David Norton introduced the balanced scorecard, a
concept for measuring a company's activities in terms of its vision and strategies, to give
managers a comprehensive view of the performance of a business. The key new element
is focusing not only on financial outcomes but also on the human issues that drive those
outcomes, so that organizations focus on the future and act in their long-term best
interest..

Implementing the scorecard typically includes four processes:

1. Translating the vision into operational goals;

2. Communicate the vision and link it to individual performance;
3. Business planning;
4. Feedback and learning and adjusting the strategy accordingly.

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The balanced scorecard is a management system (not only a measurement system) that
enables organizations to clarify their vision and strategy and translate them into action. It
provides feedback around both the internal business processes and external outcomes in
order to continuously improve strategic performance and results. When fully deployed,
the balanced scorecard transforms strategic planning from an academic exercise into the
nerve center of an enterprise.

Kaplan and Norton describe the innovation of the balanced scorecard as follows:

"The balanced scorecard retains traditional financial measures. But financial measures
tell the story of past events, an adequate story for industrial age companies for which
investments in long-term capabilities and customer relationships were not critical for
success. These financial measures are inadequate, however, for guiding and evaluating
the journey that information age companies must make to create future value through
investment in customers, suppliers, employees, processes, technology, and innovation."

The balanced scorecard suggests that we view the organization from four perspectives,
and to develop metrics, collect data and analyze it relative to each of these perspectives:

• The Learning and Growth Perspective

• The Business Process Perspective
• The Customer Perspective
• The Financial Perspective

3. Outcome Metrics

You can't improve what you can't measure. So metrics must be developed based on the
priorities of the strategic plan, which provides the key business drivers and criteria for
metrics that managers most desire to watch. Processes are then designed to collect
information relevant to these metrics and reduce it to numerical form for storage, display,
and analysis. Decision makers examine the outcomes of various measured processes and
strategies and track the results to guide the company and provide feedback.

So the value of metrics is in their ability to provide a factual basis for defining:

• Strategic feedback to show the present status of the organization from many
perspectives for decision makers
• Diagnostic feedback into various processes to guide improvements on a
continuous basis
• Trends in performance over time as the metrics are tracked
• Feedback around the measurement methods themselves, and which metrics should
be tracked
• Quantitative inputs to forecasting methods and models for decision support
systems

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4. Key Performance Indicators

Key Performance Indicators (KPI) are financial and non-financial metrics used to
quantify objectives to reflect strategic performance of an organization. KPIs are used in
Business Intelligence to assess the present state of the business and to prescribe a course
of action. The KPIs differ depending on the nature of the organization and the
organization's strategy. They help an organization to measure progress towards their
organizational goals, especially toward difficult to quantify knowledge-based processes.

A KPI is a key part of a measurable objective, which is made up of a direction, KPI,

benchmark, target and time frame. For example: "Increase Average Revenue per
Customer from £10 to £15 by EOY 2008". In this case, 'Average Revenue Per Customer'
is the KPI.

Categorization of indicators

Key Performance Indicators define a set of values used to measure against. These raw
sets of values fed to systems to summarize information against are called indicators.
Indicators identifiable as possible candidates for KPIs can be summarized into the
following sub-categories:

• Quantitative indicators which can be presented as a number.

• Practical indicators that interface with existing company processes.
• Directional indicators specifying whether an organization is getting better or not.
• Actionable indicators are sufficiently in an organization's control to effect
change.

5. Personal Scorecard: Aligning Individual Performance with Strategic Objectives.

In an ideal scorecard cascade, personal scorecards serve as the final step in the process
from corporate, divisional, business unit, functional, team and individual levels – or
however the organization is structured. The belief is that cascading the scorecard to the
deepest level of the organization fully aligns the individual’s objectives to those of the
enterprise.

The Balanced Scorecard Manager at a large India-based telecommunications company

comments: “Within my organization an individual scorecard typically includes specific
objectives, measures, targets and initiatives. The individual scorecards serve as the
organization’s performance appraisal process. No other performance frameworks exist
apart from the individual scorecards. The alignment of the performance management
system with the Balanced Scorecard, and the simultaneous scrapping of the earlier
performance appraisal system, sent a powerful message as to the seriousness with which
the senior management team took the scorecard concept.”

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6. 360-Degree Feed-back

In human resources, 360-degree feedback, also known as 'multi-rater feedback', 'multi-

source feedback', or 'multi-source assessment', is employee development feedback that
comes from all around the employee. "360" refers to the 360 degrees in a circle. The
feedback would come from subordinates, peers, and managers in the organizational
hierarchy, as well as self-assessment, and in some cases external sources such as
customers and suppliers or other interested stakeholders. It may be contrasted with
upward feedback, where managers are given feedback by their direct reports, or a
traditional performance appraisal, where the employees are most often reviewed only by
their manager.

The results from 360-degree feedback are often used by the person receiving the
feedback to plan their training and development. The results are also used by some
organizations for making promotional or pay decisions, which are sometimes called
"360-degree review."

7. Self-Appraisal

The concept of self-appraisal may also act as an effective tool, when carrying out the
performance management at the senior managers’ level.

In case of self-appraisal systems, the managers are supposed to be the appraiser and the
appraise simultaneously. If individuals understand the objectives they are supposed to
achieve and the standards by which they are to be evaluated, they are to a great extent, in
the best position to appraise their own performance.

The appraiser needs to be a person who has thorough knowledge about the job-content,
contents to be appraised, standards of contents and who observes the employee while
performing a job. Thus, when it comes to senior-managers, they are in the best position to
be their judge.

Moreover, since employee development means self-development, the managers who

appraise their own-performance may become highly motivated & responsible towards the
discharge of their responsibilities.

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8. Performance Appraisal Forms

Performance Appraisal Form

ame : Designation: Grade:

Employee Code: Process/Department:
DOJ : Center:
Effective Date of Last Current Appraisal
Appraisal : Cycle:
Designation of

ame of Appraiser: Appraiser:

Designation of

ame of Reviewer: Reviewer:

Individual Rating Scale: (this is used to arrive at the final scores)
5. Outstanding (OS)
4. Sometimes Exceeds Expectations (SEE)
3. Meets Expectations (ME)
2. Partly Meets Expectations (PME)
1. eeds Improvement (I)

1.Key Results Areas/Key Performance Indicators

REMARKS SCORE
REPORTIG WEIGHTAGE
SELF (Pls give reasons (Rating *
‘Key Result Areas’ or KRAs MAAGER (in %)
for rating 1 or 5) Weightage)

1 2 3 4 5 1 2 3 4 5
KRA 1 10.0% 0.50
KRA 2
KRA 3
KRA 4
KRA 5
KRA 6
KRA 7
KRA 8
KRA 9
KRA 10
TOTAL OF KRAs 70%
(Pls delete rows for KRAs if all not required)

Scores of the last 6 months (Please attach score sheet as well)

Month Score
1

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2
3
4
5
6

2. Communication Skills - Threshold Level 3

5 Is extremely articulate and effective in
expressing ideas and information both
verbally and in writing REMARKS SCORE
WEIGHTAGE
4 Can communicate to encourage and (Pls give reasons (Rating *
(in %)
motivate. Demonstrates the ability to for rating 1 or 5) Weightage)
Clearly conveying and receiving express concepts, thoughts and ideas
information clearly and concisely so as to be unders
Self Reporting
assessment Manager
1 2 3 4 5 1 2 3 4 5

3.Teamwork and Interpersonal Skills - Threshold Level 3

5 Promotes a very friendly climate, good
morale and co-operation between team
members and resolves team conflicts
REMARKS SCORE
4 Encourages a participative approach to WEIGHTAGE
(Pls give reasons (Rating *
work, fostering cooperation, pride, (in %)
for rating 1 or 5) Weightage)
dialogue, and trust
Displays a high-level of effort towards 3 Recognizes and respects different
supporting team perspect
Self Reporting
assessment Manager
1 2 3 4 5 1 2 3 4 5

4. Enthusiastic and Self-Motivated - Threshold Level 3

5 Enthusiastically pursues goals and
objectives related to his/her work. Is
excited and motivated by challenging and REMARKS SCORE
WEIGHTAGE
attainable goals for which he/she is held (Pls give reasons (Rating *
(in %)
personally accountable for rating 1 or 5) Weightage)
4 Demonstrates self-starting qualities in
Is motivated to overcome challenges relation to any objective or t
Self Reporting
assessment Manager
1 2 3 4 5 1 2 3 4 5

5. Adaptibility - Threshold Level 3

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5 Is completely aware of the bigger

picture along with common sense to
interpret and implement change. REMARKS SCORE
WEIGHTAGE
Possesses necessary attributes of (Pls give reasons (Rating *
(in %)
confidence, tolerance, empathy, optimism for rating 1 or 5) Weightage)
Adaptability is the ability to adapt to a and respect for others in times of change
variety of situations 4 Identifies a pragmatic approach i
Self Reporting
assessment Manager
1 2 3 4 5 1 2 3 4 5

6. Continuous Improvement - Threshold Level 2

5 Enables an environment where all
people are driven by a desire for
continuous improvement
REMARKS SCORE
4 Is able to drive a campaign for sustained WEIGHTAGE
(Pls give reasons (Rating *
improvement across a wide section of (in %)
for rating 1 or 5) Weightage)
actions or activities.
Ability to engage in quality 3 Sets targets for continuous improvement
orientation for oneself. Part
Self Reporting
assessment Manager
1 2 3 4 5 1 2 3 4 5

TOTAL OF COMPETECIES
GRAD TOTAL

Project Source - http://www.mbaguys.net/t2110/