Introduction to Performance Management 1

1 Introduction to Performance Management12 Performance Appraisal and ManagementPerformanceAppraisalandManagem entMUMBAI NEW DELHI NAGPUR BENGALURU HYDERABAD CHENNAI PUNELUCKNOW AHMEDABAD ERNAKULAM BHUBANESWAR INDORE KOLKATADR. DAVINDER (Hons.) , , to Performance Management3 AUTHORNo part of this book shall be reproduced, reprinted or translated for any purpose whatsoeverwithout prior permission of the author and Publisher in Edition: 2010 Published by:Mrs. Meena Pandeyfor HIMALAYA PUBLISHING HOUSE PVT. LTD., Ramdoot , Dr. Bhalerao Marg, Girgaon, Mumbai - 400 : 2386 01 70/2386 38 63, Fax: 022-2387 71 78 Email: Offices:New Delhi: Pooja Apartments , 4-B, Murari Lal Street, Ansari Road, Darya Ganj,New Delhi-110 : 23270392, 23278631 Fax: 011-23256286 Nagpur:Kundanlal Chandak Industrial Estate, Ghat Road, Nagpur-440 : 2738731, 3296733 Telefax : 0712-2721215 Bengaluru:No.

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3 Phone: 079-26560126, Mobiles: 09327324149,09314679413 Ernakulam:No. 39/104 A, Lakshmi Apartment, Karikkamuri Cross Rd., Ernakulam,Cochin 682011, : 0484-2378012, 2378016, Mob.: 09344199799 Bhubaneswar:5 Station Square, Bhubaneswar (Orissa) - 751 : 9861046007, E-mail:- Avenue Extension, 73, Narayan No. 302, IIIrd Floor,Near Humpty Dumpty School, Narayan Bagh, Indore ( ) 452 007 Mobile: 09301386468 Kolkata:108/4, Beliaghata, Main Road, Near ID Hospital, Opp. SBI BankKolkata - 700 010. Mobile: 09910440956, E-mail:- by:Elite-Art, Marg, Daryaganj, New Delhi-110 002, Mobile: 9911297688 Printed by:Geetanjali Press Pvt. Ltd., Nagpur4 Performance Appraisal and ManagementPREFACEFIRST EDITIONMany managers look upon Performance appraisals as one of the most uncomfortabletask that they are called upon to do.

4 In fact, except for firing an employee, apprisingemployee Performance is probably a manager s least favourite and most difficult Performance appraisal serves a useful role in the workplace. Successful managerslearn early in their careers that Performance appraisal does not need to be negativeaspect of their jobs. They recognize that Performance appraisals are a lot like organicfertilizers; properly scheduled and handled, they will definitely improve edition of the book highlights upon the concept of Performance managementwhere organization has a shared vision, individual targets, regular reviews and takes an all-embracing view of the constituents of good Performance ; how this contributesto desired outcomes at the departmental and organizational level and what needs to bedone to improve these outcomes.

5 This is entirely consistent with the HRM philosophy oftreating employees as assets and investing in their Management and development inorder to enhance their value. Extensive research on Performance appraisal has verifiedthe intuitively known fact that people are extraordinary diverse in their respective topics like Performance benchmarking, Performance culture, e-HR, e-PMSetc. have been explained in the book. Each chapter has some relevant research studiesbeing thank the publishers Himalaya Publishing House for bringing out this publicationexcellently. I am sure that this publication will help Management students to learn thebasics of Performance appraisal and Performance Management while practicing managerscan know more about Performance Management problems and how to solve them.

6 AuthorIntroduction to Performance Management5 CONTENTSPART-IPERFORMANCE to Performance Management3 21 Meaning of PerformanceThe need for Performance ManagementWhat is Performance Management ?Features of Performance ManagementPerformance BenchmarkingSetting BenchmarksPerformance CultureThe Role of HR in Performance CultureWhat is New in Performance Management ?Benefits of Performance ManagementScope of Performance ManagementSummaryReview Management22 46 Concept of Performance ManagementComponents of Performance ManagementPerformance Management Vs Performance AppraisalFeatures of Performance ManagementCompetence and Compentency AnalysisCompetency DefinitionCompetence AnalysisJob Competency AssessmentCulture Competence6 Performance Appraisal and ManagementSummaryReview Performance47 74 Measuring PerformanceThe Perspective of the Balanced ScorecardPerformance ReviewOutcome MetricsEconomic Value Added (EVA)

7 Other Economic MeasuresPerformance ReviewKey Performance CompetenciesDevelopment PlanPerformance Management DocumentationEvaluating Performance Management SystemImplementing Performance Management SystemPerformance AnalysisSummaryReview Monitoring, Mentoring &Managee Development75 125 Monitoring and its objectivesMonitoring processReview DiscussionPurpose of Managee DevelopmentProcess of Managee DevelopmentBriscoe s PrinciplesDelegatingWhat to Delegate?CoachingAction Coaching DifferentiatedCoaching in Context: An ExampleCase Examples: SusanWhy action Coaching is effective?Eye-Opening PerceptionEmphasis on DoingTailor-Made for TransitionsMentoringIntroduction to Performance Management7 Who can be Mentor?What does a mentor do?

8 How is mentoring monitored?What are Coaching and Mentoring?Engendering TrustMaking a fresh beginningRole EfficacySummaryReview Stock Taking126 134 IntroductionStocktaking performanceJudgementStocktaking potentialTools for stocktaking potential360 degree Issues in Performance Management135 168 Potential AppraisalSteps in Potential AppraisalPotential Appraisal at Philips IndiaE- Performance Management SystemElectronic Performance Support SystemGetting to the Performance ZoneRetooling Old ParadigmsWhat is Electronic Performance Support System? (EPSS)Critical Success Factors (CSF)RolesDevelopment and ImplementationTechnologyStrategyPerforma nce related PayCompetence-Related-PayTeam-Based-PayC ontribution-Related-PayConcept of RetrainingSummaryReview Questions8 Performance Appraisal and ManagementPART-IIPERFORMANCE to Appraisal Systems171 186 IntroductionPhilosophy behind appraisalWhat is Performance appraisal?

9 Features of Performance appraisalObjectives of Performance appraisalImportance of Performance appraisalBarriers to Performance appraisalSummaryReview Systems187 214 Who can appraise?When to appraise?What to appraise?Why to appraise?Criteria of Performance AppraisalCognitive Processing ModelHow can Appraisals be made Effective ?SummaryReview Methods of Performance Appraisal215 230 Methods of AppraisalAlteration ranking scaleForced choice itemsWork Standards approachSummaryReview Methods231 253 Assessment CentreTools used in Assessment CentresSelf-appraisalHR Accounting3600 Degree AppraisalAppraisal InterviewIntroduction to Performance Management9 SummaryReview Management andStrategic Planning254 275 Definition and Purposes of Strategic PlanningProcess of linking Performance Management to the Strategic PlanStrategic PlanningDeveloping Strategic Plans at the Unit LevelJob DescriptionsIndividual And Team PerformanceBuilding SupportCase Studies276 329 References330 337 Index338 34010 Performance Appraisal and ManagementPART-IPERFORMANCE

10 MANAGEMENTI ntroduction to Performance Management1112 Performance Appraisal and Management1 Introduction to PerformanceManagement12 chapter of need for Performance is Performance Management ? of Performance Role of HR in Performance is New in Performance Management ? of Performance of Performance QuestionsMEANING OF PERFORMANCEThe term Performance has several meanings. It can be referred act of performing or the state of being act or style of performing a work or role before an way in which someone or something to Performance Management13 Performance refers to all activity of an individual which occurs during a period markedby his continuous presence before a particular set of observers and which has some influenceon the observers.