TOPIC SIX

PERFORMANCE MANAGEMENT
Sub Topics
 Performance Management Concept
 Principles of Performance Management
 The scope of Performance Management
 Process and Techniques in Performance Management
 Monitoring and Evaluating Performance Management
 Definition
Performance management is a systematic process for
improving organisational performance by developing the
performance of an individual and team

AIM
Overall Aim of PM
To establish a higher performance culture in which
individual employees and team take responsibilities for
continuous business process

Specifically
PM is about aligning individual objectives to organization
objectives
 AIMS of PM

• Improving, motivational & rewarding employee

• Aligning individual goals to the goals of the
organization
• Managing performance as per predetermined
objectives
• Maximizing the organization , individual and team
benefit and potentiality
 X- ristics PM
• It is planned process
• With primary elements are
– Agreement
– Measurement
– Feedback
– Positive reinforcement
– Dialogue
• Concerned with measuring output to compare
objectives, target & standard
• Concerned with input & value
• Based on role requirements, objectives and
performance improvements
 X-ristics PM

– Inputs are
• Knowledge
• Skills
• Behavioural requirement to produce expected
result
• PM is a continuous and flexible process
• Focused on future performance planning and
improvement
• Focus on standards, target & performance indicators
 Managing Performance
• Managing performance is about
• Coaching
• Guiding
• Motivating &
• Rewarding
– Aiming at improving organizational performance
PERFORMANCE MANAGEMENT PROCESS

Performance Management Cycle

Performance &
development agreements

Managing
Performance
performance
review
throughout a year
 Performance Management Cycle
1. Performance and development agreement
it is ABOUT objectives WHICH are supposed to be SMART.
 Specific – Cleared & Straight 4ward
 Measurable- Quality, Quantity & Time Bound

2. Managing performance throughout a year is about:-

 Setting direction
 Monitoring
 Measuring performance &
 taking corrective action
 Performance review
 Performance Management Cycle
• 3. Reviewing Performance
• It is a continuous process
• Must be done once or twice a year in considering
– Agreement
– Measurement
– Feedback
– Positive reinforcement i.e…..
– Dialogue
 PM Techniques

• Set SMART
• OPRAS
• 360 Degree Feedback
• Balance Scorecard
 Principles of Performance Management
• A management tool which helps managers to manage.
• Driven by corporate purpose and values.
• To obtain solutions that work.
• Only interested in things you can do something about
and get a visible improvement.
• Focus on changing behaviour rather than paperwork.
• It’s about how we manage people
• Performance management is what managers do.
• Based on accepted principles but operates flexibly.
• Focus on development, not pay.
• Success depends on what the organization is and
needs to be in its performance culture.
 SCOPE

• PM is about managing the organization

• It is about managing the context of the
business(internal and external
environment of the business).
• Pm is the concern of every one in the
business and not just a work of mangers
• Thus to say in the responsibility of the
managers and team members.
 SCOPE

HOLISTIC APPROACH TO PM
• It takes a comprehensive view of the constituents of
performance on how it contribute to desired outcome
of the organization, dept, team and individuals as well
as on what to be done to improve these outcomes.

• It concern on what people do at work that contributes

the achievement of the overall organization purposes
(it concern with the peoples work, their behaviour and
results achieved).
 SCOPE
PM AS INTEGRATING FORCE
• Vertical integration
Integration is achieved vertically with business strategy and
business plan and goals.
Team and individual objectives that support the
achievement of the corporate goals are agreed in cascading
process-thus from top to down.

• Horizontal integration
Meaning aligning PM strategies with HR strategies
concerning with values, paying, involving and developing
Hrs. this can act as a powerful force in these activities.
 Performance Measures
• Achievement of objectives
• Competence
• Quality
• Contribution to team
• Customer care
• Working relationship
• Productivity
• Flexibility
• Skills/learning targets
• Align individual objv & orgn goals
• Business awareness
• Financial awareness
 Dealing With Underperformance
1. Identify & agreed upon problems
2. Established reasons for the shortfalls
3. Action required
Guide
Improve skills & behaviour knowledge
Work jointly
Changing attitude
4. Resource actions
 Coaching
 Training
 Guidance
 Provide experience
5. Monitoring &providing feedback
 EVALUATING PERFORMANCE
A. SUPERVISORS SHOULD:
1. Translate organizational goals into individual job
objectives and requirements.
2. Communicate their expectations regarding staff
performance.
3. Provide feedback to staff.
4. Coach the staff on how to achieve job objectives and
requirements.
5. Diagnose the staff’s relative strengths and
weaknesses.
6. Determine a development plan for improving job
performance and ability utilization.
 Improve Performance with AMO theory
Work performance depends on the ability, motivation
and opportunity for employees in order to make their
contribution and maintain their well-being. If just one
of the factors is zero, then the total equation is zero.

According to AMO theory job performance is

determined by Abilities, Motivation and
Opportunities. That is, the employee's ability, desire
and opportunity to make a contribution.
Improve performance with AMO theory
You can hire the most executing, analytical
project managers, specialists and managers
(Ability), develop them and involve those
(Motivation) and offer opportunities
(Opportunity). But if these people can´t
cooperate, take responsibility towards a
common goal and show a proper attitude in
their daily work their satisfaction rate and well-
being will be weakened.
 WHY PERFORMANCE EVALUATIONS FAIL
1. Evaluator does not know what employee has done.
2. Performance high points and low points are discussed in
generalities vs. specifics.
3. Evaluator not skilled in determining current level of
performance.
4. Evaluator fails to set specific objectives for interview.
5. Neither evaluator nor employee adequately prepared.
6. Self-evaluation is ignored or minimized.
7. Evaluation only historical rather than historical and
developmental.
8. Evaluation interview is one-way communication.
9. Too much emphasis on filling out form and not enough on
problem solving/planning.
10. No mechanism for follow-up prior to next review.
 D. COMMON ERRORS IN THE EVALUATION PROCESS

Halo Effect: Rating a person excellent in one quality, which in turn

influences the evaluator to give a similar rating or higher than
deserved rating on other qualities.

Horn Effect: Rating a person unsatisfactory in one quality, which in

turn influences the evaluator to give that person similar, or lower than
deserved ratings on other qualities.

Central Tendency: Providing a rating of average or around the middle

of the scale for all qualities.

Strictness: Rating consistently lower than the normal or average.

Leniency: Rating consistently higher than the expected norm or

average.

Recency: Rating influenced by most recent behavior.

 ……

NEXT PAGE
 TOPIC SEVEN
HUMAN RESOURCE POLICIES

Sub Topics
 Concept and essence of human resource Policies
 Training and Development Policies

 Health and Safety Policies

 Social Security Policies (pension, etc)
 Pay Policies
 Concept and Essence of Human Resource
Policies
Human resource policies lay down the criteria for decision marking in the
field of human resource management. These policies define the intentions
of the organization in the area of human resources management.

•For instance, in
i. Recruitment
ii. Selections
iii. Promotion
iv. Development
v. Compensation
vi. Motivation etc
TRAINING AND DEVELOPMENT POLICIES

Scope of the policy

i. Attitude towards training; whether it is regarded as a device
to overcome specific problem or as a continuing relationship.
ii. Objective training
iii. Opportunity for career development
iv. Basis for training
v. Methods of training (on and off the job training).
vi. Programmes of executive development
vii. Orientation of new employees
HEALTH AND SAFETY POLICIES
•The general policy statement should be a declaration of
the intention of the employer to safeguard the health and
safety of employees
•The Purpose of the policy is to preventing work-related
injuries and diseases.
•In Tanzania OSHA is responsible for that, and its
operationalization is depending on formulated
committee/ representatives from respective organization.
•Therefore, it is the committees/representatives that report
to OSHA anything related to employees and safety
 HEALTH AND SAFETY POLICIES
Functions of safety committees.
(i)Studying trends in accidents, with the view to making suggestions for
corrective actions.
(ii)Examining safety reports and making proposals for avoiding
accidents, etc.
(iii)
Examining and discussing reports from safety representatives.
(iv)
Making proposals for new or revised safety procedures
(v)Acting as a link between the organization and the enforcement
agency (the health and safety inspectorate).
(vi)
Monitoring and evaluating the organization’s safety policies, and
making proposals for changes if necessary.
 PAY POLICIES

i. Job evaluation
ii. Minimum wage salaries
[Link] wage payments
[Link] sharing and incentive plan
v. Non-monetary rewards
[Link] stock option plan
[Link] for getting pay
 EQUAL OPPORTUNITY
Everybody have equal opportunity to be employed
irrespective to: -
i. Sex
ii. Race
[Link]
[Link]
v. Age or marital status
 EQUAL OPPORTUNITY
Equal opportunity policies set out in the following aspects
Equal employer:
Where employer do not permit direct or indirect discrimination against employees in terms of
race, nationality, sex, sexual, orientation, disability, religion, marital status or age etc. 

Other human resource policy areas are: -

i. Age and employment
ii. Aids
iii. Bulling
iv. Diversity management
v. Employment
vi. Sexual harassment
vii. Rewards
viii. Redundancy
ix. Promotion
x. work life balance, etc.
 THE END

Thanks
DR. GEORGE