PERFORMANCE MANAGEMENT

Performance management (PM) includes activities to ensure that goals are

consistently being met in an effective and efficient manner. Performance
management can focus on the performance of an organization, a department,
employee, or even the processes to build a product or service, as well as many other
areas.

Performance Management as referenced on this page is a broad term coined by Dr.

Aubrey Daniels in the late 1970s to describe a technology (i.e. science imbedded in
applications methods) for managing both behavior and results, two critical elements
of what is known as performance.

Where PM is applied
The PM approach is used most often in the workplace, can apply wherever people
interact — schools, churches, community meetings, sports teams, health setting,
governmental agencies, and even political settings - anywhere in the world people
interact with their environments to produce desired effects. Armstrong and Baron
(1998) defined it as a “strategic and integrated approach to increasing the
effectiveness of organizations by improving the performance of the people who work
in them and by developing the capabilities of teams and individual contributors.”

It may be possible to get all employees to reconcile personal goals with

organizational goals and increase productivity and profitability of an organization
using this process. It can be applied by organisations or a single department or
section inside an organisation, as well as an individual person. The performance
process is appropriately named the self-propelled performance process (SPPP).[citation
needed]

First, a commitment analysis must be done where a job mission statement is drawn
up for each job. The job mission statement is a job definition in terms of purpose,
customers, product and scope. The aim with this analysis is to determine the
continuous key objectives and performance standards for each job position.

Following the commitment analysis is the work analysis of a particular job in terms
of the reporting structure and job description. If a job description is not available,
then a systems analysis can be done to draw up a job description. The aim with this
analysis is to determine the continuous critical objectives and performance
standards for each job.

[edit] Benefits
Managing employee or system performance facilitates the effective delivery of
strategic and operational goals. There is a clear and immediate correlation between

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using performance management programs or software and improved business and
organizational results.

For employee performance management, using integrated software, rather than a

spreadsheet based recording system, may deliver a significant return on investment
through a range of direct and indirect sales benefits, operational efficiency benefits
and by unlocking the latent potential in every employees work day (i.e. the time they
spend not actually doing their job). Benefits may include:

Direct financial gain

• Grow sales
• Reduce costs
• Stop project overruns
• Aligns the organization directly behind the CEO's goals
• Decreases the time it takes to create strategic or operational changes by
communicating the changes through a new set of goals

Motivated workforce

• Optimizes incentive plans to specific goals for over achievement, not just
business as usual
• Improves employee engagement because everyone understands how they are
directly contributing to the organisations high level goals
• Create transparency in achievement of goals
• High confidence in bonus payment process
• Professional development programs are better aligned directly to achieving
business level goals

Improved management control

• Flexible, responsive to management needs

• Displays data relationships
• Helps audit / comply with legislative requirements
• Simplifies communication of strategic goals scenario planning
• Provides well documented and communicated process documentation

[edit]
Organizational Development Definitions
• In organizational development (OD), performance can be thought of as
Actual Results vs Desired Results. Any discrepancy, where Actual is less than
Desired, could constitute the performance improvement zone. Performance
management and improvement can be thought of as a cycle:

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 1. Performance planning where goals and objectives are established
2. Performance coaching where a manager intervenes to give feedback and
adjust performance
3. Performance appraisal where individual performance is formally documented
and feedback delivered

A performance problem is any gap between Desired Results and Actual

Results. Performance improvement is any effort targeted at closing the gap
between Actual Results and Desired Results.
Other organizational development definitions are slightly different. The US
Government's Office of Personnel Management indicates that Performance
Management consists of a system or process whereby:

1. Work is planned and expectations are set

2. Performance of work is monitored
3. Staff ability to perform is developed and enhanced
4. Performance is rated or measured and the ratings summarized
5. Top performance is rewarded[1]

What Are The Components of A Performance

Management System?

Many people mistake performance appraisal for performance

management. Actually, performance management is a much bigger
system, and is much more valuable to managers and companies (and
employees) than performance appraisal. The essential

components or parts of an effective performance management

system include:

• Performance Planning (includes employee goal setting /

objective setting)
• Ongoing Performance Communication
• Data Gathering, Observation and Documentation
• Performance Appraisal Meetings
• Performance Diagnosis and Coaching

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Performance Management Components
Performance management can help you and your employees
communicate goals, share information, explore career
opportunities and foster learning and development.

Performance management should be a process that contributes to your

organization's overall success and has a positive impact on your employees.
It's about letting employees know what is expected of them, and providing
feedback throughout the year on how they are doing and how they can
improve.

The impact of effective performance management is clear: Employee

performance affects company performance. If you express clear
expectations to your employees, you—and your company—will enjoy
increased motivation. And all that translates directly into clearly measurable
goals, improved morale, a happier workplace and higher profits.

Here are the main steps you need to take:

1. Develop a Strategic Plan

 Put your vision into writing

2. Identify Organizational Goals

 Determine what needs to be achieved to realize your strategic plan

3. Translate Organizational Goals into Measurable Employee Goals

Goals must be S.M.A.R.T.

 Specific – What are you going to do? How are you going to do it?
 Measurable – Establish criteria to measure progress
 Attainable – Identify goals that are important to you and realistic to
achieve but not a slam-dunk. Stretch yourself!
 Relevant – The goal should help you achieve your ultimate goal
 Time-bound – Set a time frame for the goal to be achieved

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4. Review Employee Progress on an Ongoing Basis

 Acknowledge good performance, identify how the employee can

improve and provide coaching and support

5. Identify Specific Training and Development Needs

 What knowledge or skills need developing to ensure performance

expectations are met?

6. Conduct Formal Progress Reviews at Mid-Year

 Summarize ongoing informal feedback and coaching and evaluate

progress toward achieving goals

7. Annual Performance Review

 Review performance results; identify accomplishments and areas for

improvement

8. Establish Development Activities for the Coming Year

9. Rate Employee Performance

Establishing a performance review policy will help you support your

employees, recognize weak areas (or areas of your operation that need your
attention), improve morale and enhance productivity. As well, you will be
creating a work environment that makes your employees look forward to
coming to work, reducing sick days and helping all your staff take pride in
their jobs. In other words, performance management is not optional, it is an
essential aspect of your business success.

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 FACTORS INFLUENCING RECRUITMENT AND SELECTION

The recruitment function of the organisations is affected and

governed by a mix of various internal and external forces.
The internal forces or factors are the factors that can be
controlled by the organisation. And the external factors are
those factors which cannot be controlled by the
organisation. The internal and external forces affecting
recruitment function of an organisation are:

FACTORS AFFECTING RECRUITMENT

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Recruitment & selection - Presentation Transcript

1. Recruitment
2. MAIN POINTS COVERAGE
o Concept of Recruitment
o Factors Affecting Recruitment
o Recruitment Policy
o Sources of Recruitment
o Need for Flexible and Proactive Recruitment Policy
o Evaluation of a Recruitment Program

3. Recruitment
o Tata owned Jaguar-Land Rover (JLR) has announced a major
drive to recruit 600 engineers and technical staff to work on its 700-million-
pounds projects
o Besides, there are a "significant number" of vacancies
in its purchasing, finance and human resources departments. It is also
launching a programme aimed at recruiting
4. Recruitment
o Problem of booming B Schools
o Headhunters scouting around for MBAs
o 2000 witnessed an alarming rise in number of institutes, offering
management education both at the undergraduate & PG
o All these needs atleast 200 MBAs for teaching faculty

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o Most of MBAs join industries
o Management are worried
o Where to find qualified & eligible MBAs…?
5. Recruitment
o Recruitment is the process of searching for prospective employees
and stimulating them to apply for jobs in the organizations.
o Selection starts where
o recruitment ends
6. FACTORS AFFECTING RECRUITMENT
o Organizational / internal factors
o Environmental / external factors
7. A good recruitment policy
o Complies with government policies
o Provides job security
o Provides employee development opportunities
o Flexible to accommodate changes
o Ensures its employees long-term employment opportunities
o Cost effective for the organization
8. SOURCES OF RECRUITMENT Internal Search HRIS Job portals Notice
boards Circulars
9. SOURCES OF RECRUITMENT External Search Advertise- ments
Employee referrals Educational institutions Interested applications
Employment agencies
10. Human resource planning Identify HR requirements surplus
Retrench/layoffs demand Determine numbers, levels & Criticality of
vacancies Choose the resources & Methods of Recruitment Analyze the cost
& time involved Organizational Recruitment policy Job analysis Start
implementing the Recruitment program Select and hire Evaluate the
Program Process of recruitment
11. EVALUATION OF A RECRUTIMENT PROGRAM
o The recruitment policies, sources & methods have to be evaluated
from time to time
o Successful recruitment program shows
 No. of successful placements
 No. of offers made
 No. of applicants
 Cost involved
 Time taken for filling up the position
12. It is easier to go down a hill than up, but the view Is best from the top.
Arnold Bennet
13.
o Thank You
o Questions ???
14. SELECTION
15. How crucial is selection process?
16. Its better not to select then selecting a bad candidate

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 17. SELECTION Selecting the right candidate Rejecting the wrong candidate
Selecting the wrong candidate Rejecting the correct candidate POSITIVE
OUTCOME NEGATIVE OUTCOME SELECTING THE MOST
SUITABLE CANDIDATE IS OBJECTIVE OF SELECTION
18. THE SELECTION PROCESS Resumes/CVs Review Analyze the
Application Blank Conducting Tests and Evaluating performance
Preliminary Interview Reference checks Job Offer Initial Screening
Interview Medical Examination Placement Core and Departmental
Interviews ACCEPT REJECTION Offer to the next suitable candidate
19. SELECTION METHOD STANDARDS
o Reliability
 Reliability can be measured by using:
 The repeat or test-retest approach
 The alternate-form or parallel-form method
 The split-halves procedure
o Validity
 Criterion validity
 Content validity
 Construct validity
20.
o Generalizability
 Generalizability of a selection method is defined as the
degree to which its validity, established in one context, can be extended to
other “primary contexts”.
 Utility
 Legality
21. APPLICATION FORMS
 Personal information
 Educational qualifications
 Work experience
 Salary
 Personality items
 Reference checks
22. EVALUATION OF APPLICATION FORMS
 Clinical method:
 In this method, all the information furnished by
the applicant in the application form is analyzed and inferences are
made about applicant's personality.
 Weighted method:
 In this method, certain points or weights are
assigned to each item in the application form.
o ETHICAL ISSUES IN APPLICATION FORM DESIGN
23. SELECTION TESTS Intelligence tests Achievement tests Interest tests
Aptitude tests Situational tests Polygraph tests Personality tests Graphology
24. INTERVIEWS Interviews Preliminary Interview Selection Interview
Decision-making Interview Formal & Structured Interview Unstructured

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 Interview Stress Interview Group Interview Method Panel Interview In-
depth Interview
25. Great interviews requires smart skills
26. THE INTERVIEW PROCESS Preparation Setting Conduct of Interview
Closing an Interview Evaluation Reference Checks Medical Examination
27. PLACEMENT The determination of the job to which an accepted candidate
is to be assigned and his assignments to the job.
28. Questions? Thank You

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