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CONCEPTUALIZING PERFORMANCE:
         WRAPPING UP




                               1
2
PERFORMANCE
MANAGEMENT
     VS
PERFORMANCE
  APPRAISAL




              3
PERFORMANCE MANAGEMENT
(Bohlander & Snell, 2007)
The process of creating a work environment in
  which people can perform to the best of their
  abilities.
(Noe, et al, 2008)
The process through which managers ensure
  that employees’ activities and outputs are
  congruent with the organization's goals.



                                                  4
PERFORMANCE MANAGEMENT

(Ivancevich, 2007)
The process by which executives, managers,
   and supervisors work to align employee
   performance with the firm’s goals .




                                              5
Performance management arose out of the
need to link the requirements of business
        strategy to all employees.




                                            6
An Organizational Model of Performance
             Management

                      Organizational
                      Strategy
                      Long and short
                      term goals
                      and values

Individual
Attributes            Individual       Objective
(skills, abilities)   Behaviors        Results

                      Situational
                      Constraints
                      Culture and
                      economic
                      conditions
                                                   7
PERORMANCE APPRAISAL
(Bohlander & Snell, 2007)
A process, typically performed annually by a
  supervisor for a subordinate, designed to help
  employees understand their roles, objectives,
  expectations, and performance success.
(Noe, et al, 2008)
the process through which an organization gets
  information on how well an employee is doing
  his or her job.


                                                   8
PERORMANCE APPRAISAL
(Ivancevich, 2007)
Activity used to determine the extent to which
   an employee performs work effectively.
Also known as performance evaluation,
   personnel rating, merit rating, employee
   appraisal etc.




                                                  9
PERFORMANCE APPRAISAL
   Appraisal is a process that provides an analysis
of a person’s overall capabilities and potential,
allowing informed decisions to be made for
particular purposes.

   An important part of the process is
assessment, whereby data on an individual’s past
and current work behaviour and performance are
collected and reviewed.

                                                    10
11
APPRAISAL & PERFORMANCE
           MANAGEMENT
                Motivation
Development
                               Planning




                             Legal Compliance
Communication
                HRM Research
                                            12
Appraisal & Performance Management
           Rationalization and justification for appraisal

Improving motivation and morale
Clarifying expectations and reducing ambiguity about performance
Determining rewards
Identifying training and development opportunities
Improving communication
Selecting people for promotion
Managing careers
Counseling
Discipline
Planning remedial actions
                                                                13
APPRAISAL & PERFORMANCE
            MANAGEMENT



                 Strategic
Administrative               Developmental




                                             14
CONCLUSION???

                15
PM AND PA: Conclusion
PM  is a goal-oriented process directed towards
 ensuring that organizational processes are in place
 to maximize productivity of employees, team and
 ultimately the organization.
PM is a dynamic, ongoing and continuous process.
All parts of the organization should be integrated
 and synchronized to achieve organizational
 effectiveness.
Every HR functions contributes PM particularly
 PA and training.

                                                       16
PM AND PA: Conclusion
PA  is a formal system of review and
 evaluation of individual or team task
 performance.
PA is critical to the success of PM.
Effective PA system evaluates
 accomplishments and initiates plan for
 development, goals and objectives.
PA is not an end in itself , but rather the
 means to impact performance.

                                               17

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Performance Appraisal - Introduction 3

  • 2. 2
  • 3. PERFORMANCE MANAGEMENT VS PERFORMANCE APPRAISAL 3
  • 4. PERFORMANCE MANAGEMENT (Bohlander & Snell, 2007) The process of creating a work environment in which people can perform to the best of their abilities. (Noe, et al, 2008) The process through which managers ensure that employees’ activities and outputs are congruent with the organization's goals. 4
  • 5. PERFORMANCE MANAGEMENT (Ivancevich, 2007) The process by which executives, managers, and supervisors work to align employee performance with the firm’s goals . 5
  • 6. Performance management arose out of the need to link the requirements of business strategy to all employees. 6
  • 7. An Organizational Model of Performance Management Organizational Strategy Long and short term goals and values Individual Attributes Individual Objective (skills, abilities) Behaviors Results Situational Constraints Culture and economic conditions 7
  • 8. PERORMANCE APPRAISAL (Bohlander & Snell, 2007) A process, typically performed annually by a supervisor for a subordinate, designed to help employees understand their roles, objectives, expectations, and performance success. (Noe, et al, 2008) the process through which an organization gets information on how well an employee is doing his or her job. 8
  • 9. PERORMANCE APPRAISAL (Ivancevich, 2007) Activity used to determine the extent to which an employee performs work effectively. Also known as performance evaluation, personnel rating, merit rating, employee appraisal etc. 9
  • 10. PERFORMANCE APPRAISAL  Appraisal is a process that provides an analysis of a person’s overall capabilities and potential, allowing informed decisions to be made for particular purposes.  An important part of the process is assessment, whereby data on an individual’s past and current work behaviour and performance are collected and reviewed. 10
  • 11. 11
  • 12. APPRAISAL & PERFORMANCE MANAGEMENT Motivation Development Planning Legal Compliance Communication HRM Research 12
  • 13. Appraisal & Performance Management Rationalization and justification for appraisal Improving motivation and morale Clarifying expectations and reducing ambiguity about performance Determining rewards Identifying training and development opportunities Improving communication Selecting people for promotion Managing careers Counseling Discipline Planning remedial actions 13
  • 14. APPRAISAL & PERFORMANCE MANAGEMENT Strategic Administrative Developmental 14
  • 16. PM AND PA: Conclusion PM is a goal-oriented process directed towards ensuring that organizational processes are in place to maximize productivity of employees, team and ultimately the organization. PM is a dynamic, ongoing and continuous process. All parts of the organization should be integrated and synchronized to achieve organizational effectiveness. Every HR functions contributes PM particularly PA and training. 16
  • 17. PM AND PA: Conclusion PA is a formal system of review and evaluation of individual or team task performance. PA is critical to the success of PM. Effective PA system evaluates accomplishments and initiates plan for development, goals and objectives. PA is not an end in itself , but rather the means to impact performance. 17