MEANING OF THE TERM

“PERFORMANCE”
The term “PERFORMANCE” is both
distinguishing and similar to the term
“PRODUCTIVITY”:

SIMILAR:- effective and efficient use

of resources to achieve outcomes

DISTINGUISHING:- it is guided and

assessed by multiple, equally
important standards of effectiveness,
efficiency and equity.
 SCOPE OF PERFORMANCE
MANAGEMENT SYSTEM
• Identifying the parameters of performance
and stating them very clearly;
• Setting performance standards;
• Planning in participative ways where
appropriate, performance of all constituents;
• Identifying competencies and competency
gaps that contribute/hinder to performance;
• Planning performance development activities;
• Creating ownership;
• Recognizing and promoting performance
culture;
 OBJECTIVES OF PERFORMANCE MANAGEMENT
Performance management is the process of identifying,
evaluating and developing the work performance of
employees so that the company’s goals and objectives are
more effectively achieved. Effective performance management
is designed to enhance performance, identify performance
requirements, provide feedback relevant to those
requirements and assist with career development.

The primary objectives of performance management are:

• to assist in the achievement of enhanced standards of work
performance of an employee or class of employees;
• to assist employees to identify knowledge and skills to perform
their job efficiently;
• for employees to work towards defined goals;
• for employees to receive regular feedback on performance; and
• for employees to achieve personal growth through acquiring
relevant knowledge and skills and attitudes.

The management of medical incapacity, inability to discharge duties

and disciplinary processes are separate from a company’s
performance management system and are to be seen as separate.
 PRE-REQUISITES OF PMS PROCESS
• Policy specific procedures to be
followed in order to manage
performance;

• Company shall adopt performance

management practices that are
consistent with the company
policy, best fit the nature of the
work performed and the mission of
the organization;
 PHASE 1
Setting expectations for
employee performance;
• supervisors shall meet with their employees,
establish expectations regarding their employees’
performance, specify how employees’ actual
performance will be measured and their success
determined, and impart to them an understanding
of how meeting these expectations will contribute
to the achievement of the organization’s mission.

• Performance expectations shall be written at the

“meets expectations” level (the midpoint of the
state rating scale) and shall be documented on a
form defined by the Company – the “work plan.”

• Work plans shall be signed and dated by both the

supervisor and the employee.
 PHASE 2
Maintaining a dialogue between supervisor and employee to
keep performance on track

• Employees shall be responsible for meeting their performance

expectations.

• Progress toward meeting expectations shall be measured,

reported, discussed, and documented throughout the work cycle.

• supervisors are expected to use appropriate techniques to

support employee efforts to meet or exceed their performance
expectations.

• When expectations change during the course of the work cycle,

supervisors shall communicate these changes and modify work
plans as necessary. Modifications shall be signed and dated by
both the supervisor and the employee.
 PHASE 3

Maintaining a dialogue between supervisor and

employee to keep performance on track;
• At the end of the work cycle, supervisors shall evaluate employees’ performance
during the past year compared to their performance expectations. They shall use
verifiable information collected and documented throughout the cycle to determine
the extent to which actual performance has met the expectations defined in the work
plan.

• The evaluation shall be documented on a standard form defined by the company –

the “appraisal form.”

• The annual performance appraisal shall use a 5-level rating scale for reporting overall
performance. A rating at the midpoint of the scale shall indicate that an employee’s
performance has met expectations.

• Prior to discussing a completed performance appraisal (that is, an appraisal

containing ratings and descriptions of actual performance) with an employee, a
supervisor shall review the appraisal with the next-level manager to ensure that
ratings are appropriate and consistent.

• supervisors shall discuss the appraisals with their employees. Both supervisor and
employee shall sign and date the completed performance appraisal indicating that the
discussion has taken place.
 ADDRESSING POOR PERFORMANCE
When an employee’s performance falls below
expectations at any time during the performance
cycle:
• The supervisor shall document the performance that falls short of
expectations by preparing a corrective action plan or other
documentation. The documentation will specify (a) the performance
problem, (b) the steps to be taken to improve performance, including
the timeframe for improvement, (c) the consequences of failure to
improve, and (d) a follow-up date.

• A corrective action plan shall be considered successfully completed

only when the employee’s actual performance has improved to the
point where expectations are being met.

• The agency’s performance management policy shall specify the

relationship between disciplinary policy and performance
management.

• Performance deficiencies that occur during the performance cycle

shall be referenced in the annual performance appraisal.
 SUPPORTING EMPLOYEE
DEVELOPMENT
Many employees may express interest in
growing in their current positions or in
furthering their careers within the organization.
supervisors shall work with them to identify
strengths and weaknesses and, if appropriate,
to help them prepare an individual
development plan. Individual development
plans may specify how employees can more
fully apply their strengths in their current
positions, build up areas of weakness,
enhance their performance in their current
positions, or develop the skills and experience
they will need for possible future assignments.
 TRANSITIONS
When employees move into or out of their positions, relevant
performance information shall be communicated in a timely
way:

• Probationary employees shall have work plans within a certain number of days of their
date of employment. To remove an employee from probationary status, the supervisor
shall provide performance documentation, as per the policy, that the probationary
employee’s performance is at minimum meeting expectations.

• Employees in training progressions shall have work plans, or an equivalent document

that describes performance expectations, within a certain number of days of the date of
employment. The supervisor shall provide performance documentation that
performance at minimum meets expectations before each salary increase is granted
within the progression.

• Employees whose responsibilities are changed substantially, either within their current
position or by transfer (promotion, lateral transfer, or demotion), shall have work plans
established within a certain number of days (set by the agency) following the new
assignment.

• When an employee transfers from one site to another or from corporate office to site
and vice versa, the releasing department/site/office shall send to the receiving
department/site/office performance documentation summarizing the employee’s
performance from the last appraisal up to the date of transfer. This performance
documentation shall be provided before the employee’s first day with the receiving
department/site/office. The receiving supervisor may use this performance
documentation when completing the employee’s end-of-cycle appraisal.

• When an supervisor leaves a work unit, the next-level supervisor shall ensure that
performance documentation concerning the employees supervised by the departing
supervisor is made available to the employees’ new supervisor.
PERFORMANCE MANAGEMENT CYCLE
The Performance, Management, Measurement and
Information approach PERFORMANCE MANAGEMENT
is based on the plan-do-review-revise cycle:

• Plan: - Understanding current performance, prioritizing what

needs to be done, identifying actions that need to be taken
and planning for the improvement;

B. Do: - Ensuring that the proper systems and processes are in

place to support improvement, take action and manage risk
– and helping people achieve better performance;

C. Review: - Understanding the impact of your actions,

reviewing performance, speaking to users and stakeholders
about their experience of performance and getting a better
picture of changing circumstances;

D. Revise: - Using the lessons learned from review to change

your plans or what you do so that future action is more
efficient, effective and appropriate.
 Plan-Do-Review-Revise Cycle of
Performance Management

Plan-Do-Review-Revise Cycle of Performance Management takes place at

various levels over different timescales
 PLANNING
SETTING OBJECTIVES:

Planning employees' performance involves establishing the standards or

measures like KRAs, value system, ethics, and performance factors, which
guide an employee’s appraisal. For an employee, performance objectives (in
form of KRAs & IDP) shall be developed in line with the respective department’s/
project/groups objectives
 DOING
COMPETENCY DEVELOPMENT:
Doing involves evaluating employee developmental needs that will help them
strengthen their job-related skills and competencies, and prioritizing and developing
a plan of action to achieve the set targets.
 REVIEW
CHECKING (Continuous Monitoring):
Checking includes conducting ongoing reviews where employees’ performance is quantitatively
measured against the set standards to identify how well the employees are meeting the set
goals. Thereafter, the quantitative data is used to derive performance rating during the appraisal
period. For low performance, an immediate plan of action is taken rather than wait until the end
of the appraisal period when summary rating levels are assigned.
 Acting (Performance Evaluation)
• Acting includes evaluating job performance against the standards in the employee’s
performance plan and assigning a rating to the employee based on work performed during the
entire appraisal period.
HIERARCHY OF PERFORMANCE
INDICATORS
 POTENTIAL PERFORMANCE MANAGEMENT
DRIVERS
Formal Performance Review
•Emphasis on performance
Strengths
• Emphasis on performance
Weaknesses
• Emphasis on personality
strengths
• Emphasis on personality
Weaknesses
• Emphasis on skills and
behaviors needed in the future
• Emphasis on specific outcomes
of formal performance review
(e.g., promotions, raises, or
bonuses)
• Emphasis on specific suggestions
for doing the job better
• Emphasis on long-term career
prospects within the organization
Performance Culture Informal Performance Feedback Performance Management System
• Coworker Involvement • Emphasis on amount of effort put • Challenge and applicability of development plan
into the job
• Diffuse decision making • Employees’ accountability for “things that matter”
authority • Emphasis on performance strengths
• Employee understanding of how system works
• Risk taking • Emphasis on performance weaknesses
• Employee understanding of performance standards
• Coworker cohesion • Emphasis on personality strengths
• Extent to which employees receive performance
• Innovation • Emphasis on personality weaknesses ratings they deserve
• Flexibility • Emphasis on skills and behaviors • Fairness of performance standards
needed in the future
• Differential treatment • Link between performance management system
of best and worst • Emphasis on specific suggestions for and organizational strategy
Performers doing the job better
• Number of formal reviews received each year
• Internal Communication • Fairness and accuracy of informal
Feedback • Presence of multi rater feedback
• Future orientation
• Feedback that helps employees do • Presence of employee development plan
their jobs better
• Presence of procedures for handling grievances
• Immediate versus delayed feedback with performance reviews
• Manager likelihood to volunteer • System credibility
Informal feedback
• Use of rank-ordering
• Method of delivering informal
feedback (e.g., face-to-face, in writing)
• Manager knowledgeable about
Employee performance
 POTENTIAL PERFORMANCE MANAGEMENT
DRIVERS
Manager–Employee Interaction Job Opportunities Day-to-Day Work

• Breaks down projects into manageable components On-the-Job Development Opportunities • Challenge of projects and assignments

• Clearly communicates expectations Opportunity to: • Connection between successful project

• Spend time with a professional coach completion and incentives such as the
• Creates work plans and timetables • Do challenging and leading-edge work following:
• Experiment and take risks – Size of annual merit increase
• Diffuses unhealthy rivalries or competition among team • Have significant accountability and responsibility – Size of annual bonus
members • Help launch a new business, initiative, or program – Opportunity for higher performance rating
• Help turn around struggling business – Opportunity for promotion
• Encourages employees to be positive and enthusiastic • Work with a mentor – Raise in base salary
about work • Be promoted
• Work for strong senior executive team • Employee influence in selecting projects
• Expresses confidence in employees’ ability to do job • Work in a different country
• Work in a variety of jobs/roles • Employees’ personal enjoyment of their work
• Helps team get started on a new project • Work in new business units
• Work in new functional areas • Employee understanding of connections
• Helps attain needed information, resources and Technology • Work on the things you do best between day-to-day work and organizational
• Work with a diverse group of people strategy
• Helps find solutions to problems at work
Training • Employee understanding of how to complete
• Holds people accountable • Training content projects and assignments
– Business (e.g., accounting, finance)
• Identifies or removes unnecessary barriers at work – Diversity • Importance of projects to business unit and
(such as unnecessary rules or regulations) – IT Organization
– Leadership
• Listens carefully to views and opinions – New employee orientation • Importance of projects and assignments to
– People management (e.g., employees’ long-term careers
• Measures performance and results communication, teambuilding)
– Process management (e.g., • Importance of projects and assignments to
• Persuades and encourages others to move in a desired managing timelines or budgets, employees’ personal development
direction resource allocation)
– Product • Number of projects and assignments
• Recognizes and rewards achievement – Quality control
– Sales • Time to complete projects and assignments
• Translates long-term goals into step-by-step plans – Technical
– Other
• Makes frequent changes to projects and assignments
 TARGETING IMPROVEMENT
One of the most important actionable improvement tool of
Performance Management System is “target”. Targets
specify time-bound levels for improvement and are
usually based around a particular performance indicator.
Targets are a tool for improving performance against a
particular measure over a given period of time. Not all
activities or measures are appropriate for targets.

Well designed targets are often described as SMART:

Specific
Measurable
Achievable
Realistic
Time-bound

Understanding how you want to use a target will help you

design and plan for its achievement. Using a target for
more than one reason may be confusing or counter-
productive. For example, do not use the same measure
for an aspirational goal, which may not be fully met, and
an accountable goal, which will attract consequences if it
is not achieved.
 PERFORMANCE MANAGEMENT TO PERFORMANCE
IMPROVEMENT

THE FIRST AREA OF FOCUS

From Performance Management
to Performance Improvement

Organization
Manager
Performance Management System

Manager- Employee interaction Informal Feedback

Formal Review
Points to be Considered:
From Performance Management
To Performance Improvement
Identifying the True
Drivers of Performance
• Companies need to expand the definition of
Performance Management to include the most
drivers of employees performance;
• There are a vast number of potential levers that
the organization can pull to improve performance;
• Improving performance depends on a different
factors coming together at once; manager should
approach it as portfolio strategy, not a single
solution.
Leveraging Practices
That Drive High
Performance
• Companies should align goals horizontally before
cascading them vertically across the organization;
whenever possible, employees should have greater
ownership and involvement in defining and planning their
stretch goals;
• When up skilling managers for performance
improvement and coaching, companies should create
ample opportunities for knowledge sharing across the
managerial bench, and develop mechanism that
measure manager performance on people development
activities;
• The effectiveness of performance management system
depends upon the quality of the activities and not the
quantity; focus measurements and metrics on the quality
of interactions, rather than on compliance or any other
quantity metrics.
 FACTORS TO BE CONSIDERED WHEN
SEEKING PERFORMANCE
• adequacy of supervision;
• organizational factors such as job definition, job design, induction, adequate
evaluation and feedback;
• proper matching of people and jobs (improved selection techniques);
• possession of necessary skills to perform the tasks efficiently;
• interpersonal relationships within the immediate or work related area;
• personal/family circumstances;
• medical considerations;
• a process that does not disadvantage, devalue or discriminate against any
individual on the basis of gender, cultural background or any other attribute
not relevant to the workplace;
• a process that ensures complete confidentiality of all documentation
associated with the planning and review of any employee’s performance;
• a consistent link between the goals and objectives set for the agency and
the employee;
• a clear statement of goals and objectives for each employee at the
beginning of each evaluation period and the provision of feedback on
individual performance against the set objectives;
• an identification of attitudes, knowledge and skills for effective individual
performance and plans for staff to undertake relevant training, education
and development programs; and
• timely evaluations which reflect a fair assessment of an employee’s
performance during the specified period based on the set objectives.

A good performance management system will help identify such factors

and an integrated approach to personnel management within an agency
should provide mechanisms for dealing with them.
 HANDLING GRIEVANCES
THE "WHO, WHAT, WHEN, WHERE, AND WHY" OF
GRIEVANCES:
One of a supervisor's most important jobs is to handle, and settle grievances. Often,
however, supervisors fail to document a grievance properly with the result the
Company may lose factual information. When this happens, the employee may not get
the relief he is entitled to, or, the Company may be faced with unnecessary costs. If
every supervisor knew and understood the basics of grievance investigation, they
would be more effective supervisors. Always check for the following:

WHO : is involved in the grievance, name or names, check or department number,

and seniority date? Don't forget the steward or Union representative who may be
involved.

WHEN : did the grievance occur? Date and time, day of week, exact time when act or
omission took place, which created the grievance.

WHERE : did the grievance occur? Exact location, department, machine, aisle, etc.

WHY : is this a grievance? What has been violated the contract, supplement, past
practice, law, ruling or awards, personal rights, etc.?

WHAT : happened that caused the violation? Improper layoff or recall? Improper
promotion or transfer, etc.? What adjustment is necessary to completely correct the
alleged injustice, to place the aggrieved in the same position he would have been in
had not the grievance occurred? What, if any, is the total liability to the Company?
 HANDLING GRIEVANCES
The grievance handling procedure of the organization can affect the harmonious
environment of the organization. The grievances of the employees are related to
the contract, work rule or regulation, policy or procedure, health and safety
regulation, past practice, changing the cultural norms unilaterally, individual
victimization, wage, bonus, etc. Here, the attitude on the part of management in
their effort to understand the problems of employees and resolve the issues
amicably have better probability to maintain a culture of high performance.
Managers must be educated about the importance of the grievance process and
their role in maintaining favorable relations with the union, if any. Effective
grievance handling is an essential part of cultivating good employee relations and
running a fair, successful, and productive workplace. Positive labor relations are
two-way street both sides must give a little and try to work together. Relationship
building is key to successful labor relations.

To a great extend the aggravation of industrial problems depends on manager's

approaches and attitude in effective handling of employees grievances. Care
should be taken in the way managers approaches the problem and perceiving the
pros and cons of the situation. The conflict management approaches include the
win-win strategy that help in the healthy organizational practices and which reflects
the strong organizational culture. The cooperation from both parties is the pre-
requisite to handle the problem and effective settlement of the grievances.
Conscious use of professional self can help managers in the conflict handling
situations grievance redressal process.
 GRIEVANCE PROCEDURE
In working together from day to day, it is normal for employees to occasionally have problems or
complaints affecting their work-related activities. It is important to work out a solution to these
problems as quickly as possible. Most problems can be resolved through informal discussions
between employee and supervisor in the department. You are encouraged to talk about work-
related problems with your immediate supervisor. If you are not satisfied with the outcome, you
may wish to use a more formal process ”the grievance procedure” - to seek a solution.

Who can file a grievance?

All staff employees can file a grievance whether appointed or hourly, professional or support and
service. New employees who have not completed their new employee evaluation period do not
have access to the grievance procedure for issues concerning corrective action, layoff, or
termination. You may exercise your right to file a grievance without fear of retaliation,
harassment or negative impact on your employment relationship with the company. Grievances
are confidential and are not included in your personnel file.

When do I file a grievance?

The grievance procedure has time limitations, which are outlined at each stage of the process.
These time limits may be extended if both parties agree to the additional time needed.

How do I file a grievance?

At first, you may want to talk to your supervisor about your complaint/problem and try to resolve
the matter in the department where you work. Grievances must be presented in writing, and you
may use a grievance form. You can get a form online or you can pick up the form at Human
Resources Administration (HRA). Complete the appropriate sections of the grievance form and
present it to your immediate supervisor. You are allowed to have someone help you file a
grievance and state your complaint during a grievance meeting. This person is called a
representative and usually is someone with whom you feel comfortable - a coworker or union
steward, for example. You and your representative will be allowed a reasonable amount of time
during working hours to attend the grievance meetings. You must get prior approval from your
supervisor for this time away from your job. You will be paid for time spent in formal grievance
meetings. Time spent preparing your grievance is without pay and is to be done outside your
working hours.
 GRIEVANCE STAGES
STAGE 1:
• If you decide to file a grievance, you must do so within stated time period from the time of your knowledge
of the situation causing the grievance. For example, on August 15, your supervisor talks with you about your
poor attendance and informs you that you will receive a "write up" (disciplinary action). On August 17 you
receive a copy of the written warning. You had knowledge of the disciplinary action on August 15 when your
supervisor spoke with you.
• Your complaint or problem is first directed to the immediate supervisor with a copy to Human Resources.
Human Resources will inform you and your supervisor if the issue is appropriate for the grievance procedure.
You and the supervisor will try to resolve the complaint or problem by meeting to talk about your concerns.
The supervisor has stated working days (not counting weekends and holidays) to reply. The supervisor
must forward a copy of his or her written response to you and Human Resources. If the supervisor's
response is unsatisfactory to you, or if you do not receive a response with the five-day timeframe, you may
appeal to Stage 2.
Exception to Stage 1: - If you are grieving a termination, skip to Stage 2. Human Resources may elevate the
initial filing of any grievance to Stage 2 or Stage 3 if it is appropriate to do so.

STAGE 2:
• If you wish to proceed to Stage 2, you must do so during your next stated working days following the
response at Stage 1. The grievance is directed to the HOD of the immediate supervisor. The HOD has
stated working days (not counting weekends and holidays) to attempt to resolve the grievance and to
respond to you. If the HOD’s response is unsatisfactory to you, or if you do not receive a response within the
five-day timeframe, you may appeal to Stage 3.

STAGE 3:
• If you wish to continue your grievance, the response at Stage 2 must be appealed in writing during your next
stated working days (not counting weekends and holidays) to the Manager of Employee Relations and
Benefits or designee in Human Resources. If you do not receive an answer at Stage 2, Human Resources
will request a final decision from the HOD in writing. Human resources will try to resolve your grievance and
will respond to you within stated working days. The response may be final, or, in some situations if you are
not satisfied with the response, you may choose to go on to Stage 3.5 or 4.
 GRIEVANCE STAGES

STAGE 3.5:
You may ask for a committee review of your grievance if the following conditions are met:
• You are an appointed service or maintenance employee beyond your new hire
probationary period.
• The grievance issue is a termination of your employment or a violation of Human
Resources Policy.
• The Stage 3 response is unsatisfactory to you.
• You appeal in writing to the Head of Human Resources or a designee in Human
Resources within stated working days of receiving the Stage 3 response.

STAGE 4:
A grievance can be appealed to Stage 4 is all of the following conditions are met:
• You are an appointed beyond your new hire probationary period.
• The grievance issue is a termination of your employment or a violation of Human
Resources Policy.
• The Stage 3 response is unsatisfactory to you.
• You appeal in writing to the Head of Human Resources or a designee in Human
Resources within stated working days of receiving the Stage 3 response.
• Stage 4 of the grievance procedure is very detailed. Following your request for a Stage
4 hearing, a meeting will be scheduled with Human Resources to discuss the full details
of this hearing.
 REFERENCE
• http://www.osp.state.nc.us/manuals/manual99
• http://www.empxtrack.com/performance-mana
• http://www.idea.gov.uk/idk/core/page.do?page