Performance Management and
Competency Mapping
Module 1
Contents
Introduction
• Definition of Performance Management
• The Performance Management Contribution
• Dangers of Poorly Implemented PM Systems
• Aims and Role of PM Systems
• Characteristics of An Ideal PM Systems
• Performance Management Process
• Performance Management and Strategic Planning.
Performance Management
Performance management is a continuous process of
identifying, measuring, and developing the performance of
individuals and teams and aligning performance with the
strategic goals of the organization.
Performance appraisal is the systematic description of an
employee’s strengths and weaknesses
The performance management contribution
• Motivation to perform is increased
• Self-esteem is increased
• Managers get insight about subordinates
• The definitions of job and criteria are clarified
• Self insight and development are enhanced
• Administrative actions are more fair and appropriate
• Organization goals are made clear
• Employees become more competent
• Employee misconduct is minimized
Performance Management Contribution
• There is better protection from lawsuits
• There is timely and better differentiation between good and bad
performers
• Supervisors’ views of performance are communicated more clearly
• Organizational change is facilitated
• Motivation, commitment, and intentions to stay in the organization are
enhanced
• Voice behavior is encouraged
• Employee engagement is enhanced
Dangers of poorly implemented PM System
• Increased turnover
• Use of misleading information
• Lowered self esteem
• Wasted time and money
• Damaged relationships
• Decreased motivation to perform
Dangers of poorly implemented PM System
• Employee burnout and job dissatisfaction
• Increased risk of litigation
• Unjustified demands on managers and employees resources
• Varying and unfair standards and ratings
• Emerging biases
• Unclear rating system
Aims and Roles of PM Systems
• Strategic Purpose
• Administrative Purpose
• Information Purpose
• Development Purpose
• Organizational Maintenance Purpose
• Documentation Purpose
Characteristics of an Ideal PM System
Performance Management Process
Prerequisites
Performance
Planning
Performance
Execution
Performance
Assessment
Performance
Review
Performance
Renewal and
Recontracting
Prerequisites
• Knowledge of the organization’s mission and strategic goals and
• Knowledge of the job in question
Performance Planning
• Results
• Behaviors
• Development Plan
Performance Execution
Responsibility of Employees
• Commitment to goal achievement
• Ongoing performance feedback and coaching
• Communication with supervisor
• Collecting and sharing performance data
• Preparing for performance reviews
Responsibility of Supervisors
• Observation and Documentation
• Updates
• Feedback
• Resources
• Reinforcement
Performance Assessment
• Involvement of Employee and the Supervisor
• Self Appraisal
• Supervisor Rating
Performance Review
Appraisal meeting
1. Identify what the employee has done well and poorly by citing specific positive and
negative behaviours.
2. Solicit feedback from your employee about these behaviours. Listen for reactions and
explanations.
3. Discuss the implications of changing, or not changing, the behaviours. Positive
feedback is best, but an employee must be made aware of what will happen if any poor
performance continues.
4. Explain to the employee how skills used in past achievements can help him overcome
any current performance problems.
5. Agree on an action plan. Encourage the employee to invest in improving his
performance by asking questions such as “What ideas do you have for ______?” and
“What suggestions do you have for ______?”
6. Set up a meeting to follow up and agree on the behaviours, actions, and attitudes to be
evaluate
Performance Management and Strategic Planning
Strategic Planning
Strategic planning is a process that involves describing the organization’s
destination, assessing barriers that stand in the way of that destination, and
selecting approaches for moving forward. The main goal of strategic planning
is to allocate resources in a way that provides organizations with a
competitive advantage
Purposes of Strategic Planning
• Helps define the organization’s identity
• Helps organizations prepare the future
• Enhances ability to adapt to environmental changes
• Provides focus and allows better allocation of resources
•
• Produces an organizational culture of cooperation
• Allows for the consideration of new options and opportunities
• Provides employees with information to direct daily activities
Strategic Planning Process
• The conduct of an environmental analysis (i.e., the identification of the
internal and external parameters of the environment in which the
organization operates)
• The creation of an organizational mission (i.e., statement of what the
organization is all about)
• The creation of an organizational vision (i.e., statement of where the
organization intends to be in the long term, say, about 10 years)
• Setting goals (i.e., what the organization intends to do in the short term,
say, one to three years)
• The creation of strategies that will allow the organization to fulfill its
mission and vision and achieve its goals (i.e., descriptions of game plans or
how-to procedures to reach the stated objectives).
Strategic Management Process
External Environmental
Analysis
• Opportunities
• Threats
Revise Mission, Strategic Alternative
Current
Corporate Objectives and Goals if & Choices
SWOT
• Vision necessary
• Mission
• Objectives
• Goals Corporate level
Strategy
Internal Environmental Global Strategy
Analysis
• Strengths Business unit
• Weaknesses Strategy
Functional Strategies
Strategy Implementation
Strategy review, evaluation and control
Text Books Referred
Performance Management by Herman Aguinis