Point to be discussed - Module 1

Introduction
process of managing performance
Implications for performance management
Principles of performance management
Benefits of performance management
Performance management strategies
Performance appraisal (methods, approach, obstacles,
potential appraisal)
Concept:
Ensuring that an organization's strategy,
internal system, operation( process) are best
aligned to meet the organization's goals.
Generally when we talk of performance we
commonly tend to think in terms of
performance of the employees.
but it is wider concept.
 What else it focuses…………..

Organization as a whole including the departments,

processes, programmers, projects, products and the teams

or groups employed to achieve the desired goals of the
organization.
That means the effective and optimum performance of

every resource deployed, be it man or machine, process

or program.
 We can broadly say that

The process via which supervisors and leading people

have an understanding of work expectations,

understanding of work goals,

identify learning,

identify development opportunities,

exchange the feedback of performance,

and also evaluate the results of performance is called as

performance management.
 Performance Management: why is it used?
Key role in linking the goals of the organisation to

the individual (vertical integration)

Gives a synergy with other HR practices e.g reward

systems (horizontal integration)

Seeking to improve performance at an organisational

and individual level.

8
 How does a performance management
system look?

Career
Development Reward
planning
9
Let’s apply it on CCD Organizational objective: B-2-C

Average foot fall / day in outlets- 200
 Provide customer favorite hangout for coffee and
conversation.
 Business strategy to increase market share
 Departmental Objectives( Marketing):
 Lower down price without hampering profit.
 Creating awareness
 NPD
 Individual Competencies: (Innovation)
 Changing menu every 4months
 Monthly special Indian snacks
 Introduce table service
 Performance Standards set:
 Treat customer fairly/ cultivate relationship with customer
/ track complains
 Monitor the performance:
 Random Quality checks
 Client survey
 Cost-Effectiveness
 Performance metrics
 Performance metrics of employees are key to track how well
employees are performing/ hard data yield results / quantitative data
that allows for improvement.
Performance Metrics of Performance Metrics of Employees
Employees in HR in marketing department
Department (Advertising)

1. Human resource cost per Advertising:

employee
2. Turnover ( number of Number of Advertising Employees –
employee leave / total Total number of staff members
population) conducting all tasks related to advertising
3. Effectiveness of HR Media Expense Percentage –
software Percentage of total expenditure related to
4. Absenteeism advertising per media type
5. Outcomes of HR
activities like training
and learning activities.
 Conclusion remarks

Objectives of Performance Management Systems

Set objectives and review performance against

objectives/standards
Personal development: identify training and
development needs and potential
Linking team and organisational objectives
 Performance planning
 It is the beginning phase.
 Employee and manager work together to develop a performance
plan for New performance cycle(NPC)
What does it include:
1. Individual competencies
2. Goals
3. Job responsibilities
 All these three determine WHAT is to be accomplished, HOW
is to be accomplished and WHEN to be measured the
outcomes.
 So here, the individual has to develop IDP. ( individual
development plan)
 In State Georgia, the employee will receive performance plan
from their manager at the beginning of their performance cycle
by 45 days of their hire / transfer/ promotion / demotion.
 Performance coaching
two-way communication between the manager and the

employee.
Throughout the performance period, the manager must

observe and document employee performance results and

behaviors.
In addition, the manager needs to provide feedback to the

employee, both good and corrective, on an ongoing basis.

The manager needs to coach the employee and also remember

to provide developmental opportunities for the employee.

Performance coaching
model by TATA Strive
 At Tata STRIVE, the faculty is a coach, not a trainer.
'Empowerment Coaching', an exclusive capacity building
programme designed to transform trainers into coaches.
Good Practices
• Igniting curiosity in students
• Focusing on building non-cognitive
skills
• Problem based learning through case
studies, role play, discussions, projects,
Assessment
etc.
• Analyzing the students' behavior,
emotions, cognitive and non-cognitive
skills
• Weekly assessment and guidance on
Performance The manager will receive a notice from their agency’s HR
Evaluation Department when it is time to begin the mid-year or
annual review process.

The manager evaluates the employee at the end of the

performance period.

The performance notes that the manager kept during the year
is a useful source of information.

manager remember what happened six months ago in

addition to what has happened more recently.

manager will determine individual ratings for each of the

performance expectations that are in the plan: core
competencies, goals, and/or job responsibilities.

manager should also review the employee’s self-

evaluation, as this is another source of information.
Performance evaluation at State of
Georgia
So we concluding performance planning phase is…………………..
The performance planning phase is a formalized process
for identifying and communicating the organizational,
agency, and individual goals expected of the employee.
The performance plan = performance expectations +an
Individual Development Plan.
performance expectations (i.e. Competencies and
S.M.A.R.T Goals)

Performance planning is a collaborative process that consists
of the supervisor and employee working together to
determine the performance expectations and development
objectives to be accomplished during the review period.
 Implications of Performance Management
Performance management is a continuous process
creates a working culture to encourage employees to improve
their work performance
provides strategic direction, develop competency in
employees
forms a bridge that connects between the employees and the
organization.
performance management gives managers and employees more
say in setting their goals and more accountability for
accomplishing them. 
implicates that Performance management does not necessarily
fix problem but eliminates challenges that causes the
problems. 
Organization considered performance management as insurance
for the both company that employees
 Principles of performance management

It translates corporate goals into individual, team, department and

divisional goals.
It relies on consensus and co-operation rather than control or coercion.

It creates a shared understanding of what is required to improve

performance and how it will be achieved.

It encourages self-management of individual performance.

It requires open and honest and encourages two-way communication

between superiors and subordinates.

It requires continuous feedback.
Creating a space where you and your employees
can produce excellent work and perform to the
best of your abilities is no easy task, but with the
right strategies, you can make it work.
 Performance management strategy

•A common one is “employee performance management,” where

businesses track how well an employee is contributing to the
organization.
•Performance management takes on a new meaning when brought
up in the context of organization strategy.
• The process of how they go about achieving these desired outcomes
is what we call performance management.
•Well, it’s important to note that performance management in the context
of strategy is strictly referring to the performance related to
execution of the organization’s strategy.
Challenges for charge of strategy

Performance management is critical to successfully

executing an effective organizational strategy.

 It requires a commitment from those in charge of

strategy to continuously monitor and analyze how

each area of the organization is performing
compared to expectations.
Have established creative alternatives to traditional
performance reviews

Google
Over the past few years, Rather than looking to the past,

more organizations are putting in place mechanisms that

focus on employees’ on-going growth and development.
Amazon white paper process

One of the strategy they’ve developed is known as the

white paper process, according to 

Beth Galetti, Amazon’s Sr. VP of Worldwide Human R
esources.
 Team members sit together to read the white paper that developed by any

manager.
 Discussion will be held further discussion begins — so that everyone

understands the full perspective of the documents( with facts) who has
prepared it.
 Here development of thinking and solution to the issues process will be

happened for all employee.

 With this white paper process, Amazon has had an incredible track

record of launching new products to success.

 the process isn’t just for making business decisions, it’s also a core part

of Amazon’s pay increase/promotion process.

 It’s how the company ensures that one of their values — “constant
 The traditional way of promotions are decided is based on the
employee’s accomplishments and successes.
 But not the case at Amazon.

 When a manager is looking to promote someone, they are required

to write a white paper that documents the employee’s successes,

failures and how the person has grown in the process.
 At the end Amazon’s review process “attempts to collect data on

each individual employees’ superpowers and areas of strength.”

 Feedback with 60 words or less each for the superpower and

growth questions.
 Google OKR
 Google’s performance management philosophy, rather more focus

on employee-goal-setting.
 Idea of OKR,  “fire or star every quarter to help set their

priorities,” and every employee would be able to see how their

work is tied directly to the company’s goals.
 OKRs were implemented successfully through strategies like:

 Buy-in from everyone

 Assign someone to shepherd the process

 Do not tie OKR goals to bonus payments.

 OKRs at a glance:

 Objectives are ambitious and may feel somewhat uncomfortable

 Key results are measurable and should be easy to grade with a number

(Google uses a scale of 0 – 1.0)

 OKRs are public so that everyone in the organization can see what

others are working on

 The “sweet spot” for an OKR grade is 60% – 70%; if someone

consistently fully attains their objectives, their OKRs aren’t ambitious

enough and they need to think bigger

Finally it is concluded that OKRs can enable teams to focus on the big
bets .OKRs can help teams and individuals get outside of their comfort
zones, prioritize work, and learn from both success and failure.
 So key take always form the discussion

 on-going growth and development is main priority of

performance management strategy.

 employee would be able to see how their work is tied directly to

the company’s goals is the main focus of performance

management strategy.
 Performance strategy always push the employees to come out

from their comfort zones, prioritize work, and learn from both
success and failure.
Traditional appraisal – performance
appraisal
How Deloitte Reinvented Their Performance Management

About the company

Deloitte is the largest professional services network in the

world in both revenue and number of professionals.
In 2013–14, they earned a record of $34.2 billion USD in
revenue.

when one of the biggest companies in the world takes on

reinventing performance management, they do it with a
bang.
Old vs. New approach to performance management @ Deloitte
Old:

They get information from annual 360 degree feedback.

Wasting a shocking 2 million hours per year.

They realized that this way employee are not engaged.

Performance level were also dropping

New approach

 On real-time and individualized approach.

 Assess the performance in present than past.

 time should spent on talking people about their performance

and career consistency.

 Remove the idiosyncratic effect

 Building more HPT to help employees to know their strength.

Deloitte asked leaders to select about an employee in order to
overcome the idiosyncratic effect:
1. Given what I know of this person's performance, and if it were
my money, I would award this person the highest possible
compensation increase and bonus – this measures overall
performance and unique value.
2. Given what I know of this person's performance, I would always
want him or her on my team – this measures ability to work well
with others
3. This person is at risk for low performance – this identifies
problems that might harm the customer or the team on a yes-or-no
basis