Performance Management

1. Performance Management
Project for BIPD Certified HR Practitioner Workshop
Project for BIPD Certified HR Practitioner Workshop
3/30/2012 Prepared by Durga Swetha Palakurthy 1

2. Performance Management
Method for improving employee
performance through goal setting,
feedback, encouragement and
support, and rewards for success
An iterative process of goal-
setting, communication, observation
and evaluation to support, retain
and develop exceptional employees
for organizational success.
Project for BIPD Certified HR Practitioner Workshop
3/30/2012 Prepared by Durga Swetha Palakurthy 2

3. Why Performance Management
Provides a chance for
employees to ask questions and
tell you their sense of what
they’ve accomplished.
Lets employee know his/her
strengths and areas that need
improvement.
Encourages self management
and individual performance
It creates a shared
understanding of what is
required to improve performance
and how this will be achieved
Project for BIPD Certified HR Practitioner Workshop
3/30/2012 Prepared by Durga Swetha Palakurthy 3

4. Why Performance Management Cont..
Helps to improve
employee relations and
productivity
Serves as an effective
retention tool
Provides a paper trail for
addressing performance or
disciplinary problems
Demonstrates
organization’s commitment
to employee success
Provides valuable
feedback for managers
Project for BIPD Certified HR Practitioner Workshop
3/30/2012 Prepared by Durga Swetha Palakurthy 4

5. Some Key Reasons for Appraisal
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6. Common Errors in Handling
Performance Management
Misusing the performance evaluation
process to address a disciplinary
problem
Element of surprise
Relying on impressions/rumors, rather
than facts
Inconsistent application of
performance evaluation criteria
Interpersonal issues
Holding employees responsible for
events/problems beyond their control
Project for BIPD Certified HR Practitioner Workshop
3/30/2012 Prepared by Durga Swetha Palakurthy 6

7. Common Errors in Handling
Performance Management Cont..
Failure to prepare for the
interview
Failure to listen (80-20 ratio)
Failure to maintain
objectivity
Failure to provide feedback—
positive and/or corrective
Failure to follow-up
Failure to document
performance – both good and
bad
Project for BIPD Certified HR Practitioner Workshop
3/30/2012 Prepared by Durga Swetha Palakurthy 7

8. Common Rater Bias
Halo/horns effect
Contrast effect
First impressions
Similar-to-me effect
Negative and positive
leniency tendency
Recency effect
Project for BIPD Certified HR Practitioner Workshop
3/30/2012 Prepared by Durga Swetha Palakurthy 8

9. Performance Management Cycle
Check List:
Do you have accurate and
current job descriptions for all
of your employees?
Do your employees have
the resources, training and
information they need?
Are you aware of problems
that your employees have right
now, for which they need
help?
Are you giving regular
informal feedback?
Project for BIPD Certified HR Practitioner Workshop
3/30/2012 Prepared by Durga Swetha Palakurthy 9

10. Performance Appraisal Process
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11. Performance Appraisal process –
Plan for the Meeting
Review employee’s job description
and identifying KRA’s and KPI’s
Understand the performance
measurement system
What to assess:
Objectives
Behaviors / Values
Competencies
Review notes from the year
Understand employee expectations
Project for BIPD Certified HR Practitioner Workshop
3/30/2012 Prepared by Durga Swetha Palakurthy 11

12. Performance Appraisal process –
Plan for the Meeting Cont..
Schedule the meeting
Notice
Location
Self-evaluation
Appropriate form
Comments
Supervisory approval
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3/30/2012 Prepared by Durga Swetha Palakurthy 12

13. Performance Appraisal process –
Conduct the meeting
Key Components of Appraisal
Colleague/Client Feedback
Employee Accomplishments Summary
Review of Goals and Accomplishments
– Performance Feedback and Appraisal
Meeting
Goal Setting for upcoming year
Development and Learning Plan
Overall Performance Summary
Merit Recommendations
Appraisal document must be consistent,
personalized, measurable, result oriented,
effort oriented, accurate and timely.
Project for BIPD Certified HR Practitioner Workshop
3/30/2012 Prepared by Durga Swetha Palakurthy 13

14. Performance Appraisal process –
Conduct the Meeting Cont..
Use SMART criteria to set goals
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15. Performance Appraisal process –
Conduct the Meeting Cont..
Review rating system
Discuss employee’s self review
Let employee talk
Avoid Discriminatory Behavior
Avoid favoritism
Base the appraisal on job-related criteria
Base judgments on factual data instead of
general impressions
Give all employees a clear understanding
of their performance standards
Maintain good, accurate documentation
Be consistent
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3/30/2012 Prepared by Durga Swetha Palakurthy 15

16. Performance Appraisal process –
Conduct the Meeting Cont..
Don’t make hasty judgments.
Be aware of non verbal's – yours
and the employee’s
Don’t be afraid of silence
Don’t interrupt when the
employee is speaking
Use “I” statements
Say what you mean
Keep it simple and focused
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3/30/2012 Prepared by Durga Swetha Palakurthy 16

17. Performance Appraisal process –
Follow up
Negative (Corrective) Feedback
Behavior: State the specific
behavior that is unacceptable
Effect: Explain why the
behavior is un-acceptable
Expectation: Tell the
employee what you expect to
happen to change the
behavior
Result: Let the employee
know what will happen if the
behavior continues or
changes
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3/30/2012 Prepared by Durga Swetha Palakurthy 17

18. Performance Appraisal process –
Follow up Cont..
Positive Feedback
Behavior: What aspects of the employee’s
behavior do you find valuable?
Effect: What positive effect does the
performance have?
Thank You: Where can you find
opportunities to use this expression more?
The positive feedback should be given
frequently , specific with examples
Review, Record and Rate the performance
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3/30/2012 Prepared by Durga Swetha Palakurthy 18

19. Performance Appraisal process –
Follow up- Feedback
Use feedback to inform, not
to advise – let them decide
how to do it.
Ask open-ended questions
about how they would like to
improve over the next year.
Agree on mutual goals.
Keep the feedback process
supportive, not threatening.
Be willing to accept feedback
too – “How can I best
support you in these goals
Project for BIPD Certified HR Practitioner Workshop
3/30/2012 Prepared by Durga Swetha Palakurthy 19

20. Summary
Prepare for the appraisal discussion
Discuss employee’s dreams, goals
Set mutual goals; put them in writing
Give positive and corrective
feedback
Use up-to-date job descriptions
Evaluate your performance
Involve the employee in the
discussion
Be open, candid and specific
Evaluate performance—not
personality
Sincerely care about your employees
Project for BIPD Certified HR Practitioner Workshop
3/30/2012 Prepared by Durga Swetha Palakurthy 20