Performance

Management
&
Talent
Development
 Performance
Management
Importance in
Business
A SURVEY
 FINDINGS OF THE SURVEY

•ALL ORGANIZATIONS REALIZE THAT

PERFORMANCE MANAGEMENT IS A

CRITICAL BUSINESS TOOL FOR

TRANSLATING STRATEGY INTO BUSINESS

RESULTS AND LINKED TO COMPENSATION

&DEVELOPMENT, .
 SURVEY ADDRESSED
• Current and Best practices

• CEOs ratings of their system towards

improving financial performance,
developing talent and driving the
organizations strategic plan

• Overall system effectiveness

• System’s impact on business, culture

and customer satisfaction
 SURVEY FINDINGS
FIVE CRITICAL OUTCOMES out of PMS

• FINANCIAL PERFORMANCE

• PRODUCTIVITY

• PRODUCT OR SERVICE QUALITY

• CUSTOMER SATISFACTION

• EMPLOYEE JOB SATISFACTION

OVERVIEW OF THE FINDINGS

• Any system in most of the organizations

would be around for 3 to 5 years before a
new one is brought in

• Most of the organizations have single yearly

review and some have biannual review

• 51% frequently train managers in applying

PMS and 22% train non-managers
 OVERVIEW OF THE FINDINGS
• 50-55% use competencies in PMS

• 20-25% include team based

objectives in individual performance
plans

• 20 to 25% use peer input, customer

feedback and input from direct
report
 SURVEY FINDINGS
ON PMS DEVELOPED NEWLY

On PMS developed in recent times:

• Forced rankings (pre determined

percentage of ratings) have
decreased

• Competency based, Team based

and Feedback based objectives
have become common
 SURVEY FINDINGS - CEO RATINGS

• When CEOs realize the value of PMS in driving

business results, overall system
effectiveness is significantly higher
AND

In general, the success

depends heavily on senior
level support
 A LOOK FORWARD
• PMS would continue to grow playing an even
stronger, more diversified role in
organization and individual success

• Performance Management would drive

- Individual performance
- Career planning
- Succession planning
- Training
- Business strategy

• Performance Management would be e-driven

 A LOOK FORWARD
• The study also revealed that
practices that make a difference for
business success often are less
commonly used.

• To stay ahead organizations must

continually re-evaluate and try new
methods for managing performance.

• Search for new ideas so that PMS

accommodates new business demands
Performance Management

Talent Development
 Performance Management :

• Performance Management refers to all the

procedures related to a periodic Performance
Appraisal (PA) process that are used to
evaluate and give feedback to individuals the
personality, performance and potential of its
group members

• The outcome of the process leads to Inputs for

Talent Development
Development and Talent Management Strategy:

Talent Management Platform

Performance Management’s 5 Key Components
Planning Monitoring
Set goals/Objectives & Measure performance
measure & Rate to
Establish & communicate Summarize performance
elements & Assign the rating
of record
standards

Rewarding
Recognize & reward
good performance Feedback
Provide feedback
conduct progress review

Developing
Address poor
performance
improve good
performance
INTEGRATED PERFORMANCE MANAGEMENT SYSTEM

GETTING THE INDIVIDUAL

BEST OUT OF TEAM
PEOPLE ORGANISATION

PURPOSE
•To Create a Performance Culture
•To Set efficient,Objective goals–Individual &Team
•To GROW Good performance
•To manage Under Performance
•To Distinguish between Activities & Accomplishments
Appraisal Design
 Important Appraisal Design Components

• Use of Competencies (Individual skills) in PMS

• Inclusion of Team based objectives in individual performance
plans

• Use Peer input, Customer feedback and input from direct

report (360 Degrees Feedback)
 Competencies
leveraging the synergy

Problem Solving Change

Planning Conflict

Supervisory

Analytical

Behavioral
Technical
 Competency
COMPETENCY GRID
High Level of
Skills

M1 H
Medium Level of
Skills

Average Level
of Skills

L M2
Low level
of Skills

Performance
Does not Partially Achieves Exceeds
Achieve Goals Achieves Goals Goals Goals

L:UNACCEPTABLE SITUATION – M1&M2:MUST DEVELOP TOWARDS H

Enable People – Enrich Knowledge – Ensure Commitment
 How to Arrive at Competencies
Analytical

Technical Skill • High

Dictionary • Medium
Behavioral Superior Rating • Low

Superior Ratification

Defining Technical & Defining Behavioral Competencies

Analytical Competencies For the Company
For the Company

PAQ s Job Descriptions Global list of

By Individuals From PAQs Behavioral Attributes

Ensure Commitment
Relationship between Competency and
performance appraisal:
COMPETENCY

Job performance performance

Description Objectives appraisal

Translate job
Describes work
Into levels of Measures and
& Personnel Gives the
Competency Acceptable Feedback on

Requirement Or Unacceptable Job relevant

strengths and
Of a particular Performance weakness of
standards Each individual
job
 COMPETENCIES
TECHNICAL
Example of Primary Responsibilities: Materials Function
• Plan for the stock of furnace oil to be kept in the plant by studying trends of prices
in the international market.
• Monitor the complete documentation of stock and check on further purchases to
ensure minimal inventory of raw materials and purifying chemicals.
• Source new vendors for the plant for better quality and rates for the raw material
and spares that the plant requires.
• Carry out price negotiations and discuss terms (of delivery and schedule) with
vendors and subsequently prepare the purchase orders of high value capital items.
• Carry out pricing negotiations and finalisation of contracts for raw materials and
services and rate fixation for contractors.

ANALYTICAL
Example of Analytical Competencies
PLANNING
The position carries out a significant relatively large amount of job in
planning/scheduling activities for others and him.

INFORMATION HANDLING
The position Interprets, analyzes and provides information used by others in
decision-making or action taking.
 COMPETENCIES
BEHAVIORAL
Example of Behavioral Competencies

Communication (Oral, Written, Listening): The position effectively express ideas &
facts in a concise, organized manner to make clear & convincing oral
presentations. Responds appropriately to ideas & thoughts expressed by others
Creativity & Innovation : The position Develops new insights into situations and
applies innovative solutions to make organizational improvements for designing
and implementing cutting-edge programs & processes
Leadership (providing vision & direction, fostering commitment): The position
Inspires and challenges others and takes a long-term view of objectives. initiates
organizational change for the future by building commitment to the vision with
others by identifying opportunities to move the organization toward the vision
Flexibility : The position Remains open to change by adapting behavior & work
methods in response to new information, changing conditions or unexpected
obstacles
Diversity : The position Recognizes the positive influences of diverse cultures,
view-points, and the behavioral and learning styles by adapting leadership styles
to a variety of situations and builds a workforce that includes and values diversity
in race, gender, culture and other aspects of individual differences
• TEAM BASED OBJECTIVES
 Difference Between Groups & Teams

• Emphasis on leadership role – • Emphasis on leadership

single point process – role shared
• Individual accountability • Individual and mutual
• Group output sum of accountability
individual work contributions • Group output greater than
• Interdependence medium – sum of individual
low contributions
• Emphasis on individual • Interdependence high
personal skills • Emphasis on complementarity
Enable People – Enrich Knowledge –ofEnsure
skillsCommitment
 TEAM OBJECTIVES
• Getting people to buy into meaningful purpose, to help shape
direction, and to learn
• Aspiring to personal growth that expands as well as exploits each
person’s capabilities
• Mutual support, joint accountability, and trust-based relationships
in addition to individual accountability
• Expecting everyone to think, work, and do
• Encouraging people to play
• The atmosphere is a working atmosphere that tends to be informal,
comfortable, and relaxed. People are involved and interested
• There is a lot of discussion in which virtually everyone participates,
but it remains pertinent to the task
• The task or objectives of the group is well understood and accepted
by the members.
• The leader of the group does not dominate it, nor does the group
defer unduly to the Leader.
• Disagreements are not suppressed or overridden by premature
group action
 TEAM OBJECTIVES

• Where there are basic disagreements that cannot be resolved

and action as necessary, will be taken but with open caution and
recognition that the action may be subject to later
reconsideration. Members listen to each other.
• Most decisions are reached by a kind of consensus in which it is
clear that everybody is in general agreement and willing to go
along.
• Criticism is frequent, frank, constructive, and relatively
comfortable.
• People are free in expressing their feelings as well as their ideas
both on the problem and the group’s operation.
• When action is taken, clear assignments are made and accepted.
• The group is self conscious about its own operation
360 degree feedback
 360 degree feedback
What is 360 Degree Feedback
360 Degree Feedback presents a more complete picture of a
participant’s behavior and performance by drawing information
from many contacts within the employee’s work chain. It gives
leaders a resource to guide professional development.

Goals of Multi-Source Feedback

360 Degree Feedback has many purposes including:
• Improvements in work behaviors
• Increased awareness of the your strengths and weaknesses
• More frequent and open communication between yourself and
raters
• More feedback seeking behavior
• Improved capacity to lead and manage
• Improvements in individual, team, and organizational
performance
 360 degree feedback

Comparative Scores Self vs. Others

  Self Others %Variance

Communication 3.5 3.0 -14

Customer Focus 3.3 3.1 -6

Collaboration 3 3.2 7

Decision Making 3.3 3.0 -8

Innovative 3.3 2.9 -11

Leadership 4 3.1 -22

Feedback 4 3.1 -23

Problem Solving 3 2.8 -6

Performance 3.5 3.1 -11

Delegation 3 2.9 -2

Change Management 3 2.9 -2

 EVALUATION SUMMARY
• PERFORMANCE SUMMARY
When providing comments consider the employee's performance
against objectives, key factors from the Employee Performance
section above, and strengths/potential improvements.
• OBJECTIVES FOR UPCOMING REVIEW PERIOD
Use the following section to record major accountabilities and goals
for the next review period. In the space provided, specify the
objectives and success indicators and describe how to measure
whether they are achieved.
Objective #1: Success Indicators:
Objective #2: Success Indicators:
Objective #3: Success Indicators:
Performance Plan: Identify specific actions/behaviors the
employee needs to either start doing, stop doing, and/or
continue doing in the upcoming performance period.
Success Indicators:
 FINAL EVALUATION
ACCOMPLISHMENTS
• What worked well or very well? Which goals and standards were met or
exceeded, and why?
AREAS TO IMPROVE
• What did not work as well as it could/should have? Which goals and
standards were not met or could be further improved. Why and how can they
be met or further improved?
EMPLOYEE COMMENTS
• Use the following space to make any comments regarding the above appraisal
and/or objectives for the next appraisal period.
SIGNATURES
• Employee Signature
_________________________________________________
Date_________________(Your signature does not necessarily signify your
agreement with the appraisal; it simply means that the appraisal has been
discussed with you).Appraiser’s Signature
________________________________________________
Date_________________Dept./Div. Signature
_________________________________________________
Date_________________
 IMPLEMENTATION

ISSUES AND PROBLEMS

 Issues in appraisal system
Formal and informal

What methods? Whose performance?

When to evaluate? Appraisal Design? Who are the raters?

What to evaluate? What problems?

How to solve?
What to evaluate? (Philip Model)

H Problem
stars
children

Potential Social
Planned
separation citizen
L

L H
Performance
How PA contribute to firm’s competitive
advantages

Improving
performance

Making correct
Values and behavior decision

Competitive
advantage

Minimizing dissatisfaction Ensuring legal

And turnover competence
 Problems in performance appraisal
1. Errors In rating
– Halo effects
– Stereotyping
– Central tendency
– Constant error
– Personal bias
– Spill over effect
 Problems in performance appraisal
(Cont’d)
2. Incompetence
3. Negative approach
4. Multiple objectives
5. Resistance
6. Lack of knowledge
EMPLOYEE INVOLVEMENT
AND
FEEDBACK
Goal Setting
 Set Goals….
• Based on job requirements
• Realistic
• Measurable
• Observable
• Challenging
• Prioritized
 GOAL SETTING -ITS NOT LUCK
• Organizational objectives are set
• Broken into functional objectives
• Broken into individual objectives
• Key result areas (KRAs) are identified
• KRAs are broken into activities with pre-set
performance levels
—Productivity is measured through levels of
attainment in each activity
—Periodic assessments by the employee and
superiors
—Final assessment at the end of the year
• Performance-review and development document
generated
 Setting Goals
Stretch Goals are where your performance
sets the standard and leads the market.
This is the performance that reflects superior
Aspirational achievement and signifies your presence in
Goals 2
the market

Baseline goals outpaces many of your

competitors and exceeds expectations .
Baseline These are the objectives you have to
achieve to meet your customer’s
Goals 1 expectations
 GOAL SETTING
Make sure the goal you are
Writing down is something you
are convinced is a business and
departmental need, and not
just something that sounds
good or many others in this
company or other companies
are doing today.
 GOAL SETTING

A goal should not contradict any of other goals.

For example, you can not achieve a 20 % growth in one product line
if your production capacity in that segment is 90% presently and you
have not developed any outsource partners till date.

Write your goal out in complete detail.

Instead of writing "A new packing," write
"A 1 meter square fiber glass container with Polly uterine lining and
water resistant seals at the openings in 4 different colors with a price
range of maximum 400 Rs per packing to be developed by the end of
First quarter.
25 March, 2 005

GOAL SETTING

• Superior and employee to fix goals jointly

• Goals to be centered around the position and not
around the individual
• Goals to be challenging, realistic & contain stretch
• Appropriate benchmarks to be used in setting goals
• 3 to 6 clearly quantified goals

2
3 January 2010

GOALS NEED TO BE “SMART”

• Specific •Specific

• Measurable •Measurable
• A ctionable - (Achievable)
• Reviewable •Aligned

• Time frame •Benchmarked

•Timed

•Customer Focused 4
 Objectives Measures and Time Frames

Base line Aspirational

Complete conversion 100% of all Introduce a Knowledge management
of Branch records records database system within 6 months
to CD Rom
Contractor cost
(Competitors today 25K Contractor cost remains 25K
record information on
CD Roms ) By October 15 By June 15

Increase sales to US 25%per quarter Penetrate new markets &

Competitors achieve increase sales by 40%/quarter
Product detail
20% increase per on web Product detail on web
quarter
Provides easy access Monthly status
report by last On line sales available on the
to information on
product to Wednesday every web
customers month
 Employee Input

• Employees take an active role:

– Setting goals
– Designing action plans
– Identifying strengths and weaknesses
– Employees participate in the PA meeting
 Preparation

Employees:
• Review performance
• Think about new goals
 Preparation (cont.)

Supervisors:
• Review performance
• Complete written appraisal
• Think about new goals
• Schedule time and place
 Start the Meeting
• Lay out agenda
• Talk about money
• Encourage input
• Give good news first
 During the Meeting
Review performance:
• Based on previous goals
• Noting strengths and accomplishments
• Identifying areas for improvement
 Presentation Tips
• Focus on the professional
• Give objective examples
• Invite response
• Listen actively
• Create “we” mentality
 During the Meeting (cont.)
• Set goals: Based on company goals
• Building on areas that need
improvement
 End the Meeting
• Encourage good performance
• Lay out action plan
• Communicate outcome of goals not met
• Confirm understanding
 Key Points to Remember
• You must conduct objective appraisals on a
scheduled basis.

• Appraisals tell employees how they’re doing and

how they can improve.

• Appraisals help create a system of motivation

and rewards based on performance.