Purpose of Performance Management

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1 Purpose of Performance Management What is Performance Management? Set of interactions between the managers and employees over the course of the business year with the purpose p of: Promotions / Advancement Recognition Training Salary Administration Discipline / Performance Improvement Termination PMBA 14 Organizational Behavior AVALA Group: Anderson Hernandez, Vijay Pradeep, Archana Naik, Luis and Ana Nickerson

2 thought Job Work ineffectively traits vision recognition mission success objectives goals motivation achievement 2

3 Index 1 Purpose of Performance Management 2 Class Survey Results 3 Performance Management System 4 Why Performance Appraisals? Performance Measurements Performance Evaluation (The Feedback) Q&A 3

4 1 Purpose of Performance Management 4

5 Purpose of Performance Management from Survey Class, key words: Aligning ggoals Communication Track performance Motivation Developing employees Maximizing resources Continuous evaluation Mutual accountability Synchronization of personal goals with organizational goals 5

6 Purpose of Performance Management Top Definition: Align employee's skills, efforts and contribution ti to the organization's goals, with specific, relevant, challenging and measurable objectives. Monitor progress and results and agree on action plans to fill the gaps or raise the bar where applicable. 6

7 7

8 2 Class Survey Results 8

9 Class Survey Results 3. What is the main purpose of performance management in your company? 4. How frequent are you evaluated in your company? 32% 19% 9

10 Class Survey Results 5. In your company, who does your performance evaluation? 6. Overall, how do you rate the performance management system in your company? 72% 10

11 3 Performance Management System 11

12 Performance Management System A great system: Management Behavior Business Activities i i Business Profitability 12

13 Performance Management System A great system MUST: Establish clear goals and objectives (Setup Goals) Enhance performance and ddevelopment planning Set up an effective coaching system (Feedback) Praise and criticize effectively (Recognition) Review and evaluate your employees 13

14 4 Why Performance Appraisals? 14

15 15

16 4 Why Performance Appraisals? 16

17 Why Performance Appraisals? 17

18 Why Performance Appraisals? 18

19 Why Performance Appraisals? 19

20 Why Performance Appraisals? 20

21 Why Performance Appraisals? 21

22 Why Performance Appraisals? Development Communicating Motivation Decision Making Achieving results 22

23 5 Performance Measurements 23

24 Performance Measurements Specific Smart Goals Measurable Attainable Relevant Time bound 24

25 Performance Measurements Every goal/objective must be SMART To introduce new products. To introduce 4 new products/services by December To improve my business management skills. To enroll in the PMBA program at FIU on Spring 2013 and apply the business management concepts in the company during 2013 and

26 Performance Measurements Types of Measurements: Expected Outcomes or Objectives (KPIs) Productivity Quality Efficiency Volume Financial Behavior Displayed or Competencies (1 3 per Objective) 26

27 Performance Measurements Behavior Vs. KPI KPI Behavior Competency Expectations Customer Satisfaction Customer Centric Customer Focus Person takes ownership of their customers fostering the relationship.ensures ensures commitment with customers are met Building Partnerships Person is able to build sustainable professional relationship Teamwork Person is able to build and manage global teams KPI Behavior Competency Expectations Sales Quota Achievement Agile Agility Person is able to listen and recognize customer s s needs generate profitable company growth Drive Results Person s ability to analyze, innovate and identify solutions achieve organizational results. 27

28 Performance Measurements 28

29 Performance Measurements "Not everything that can be counted counts, and not everything that counts can be counted." - Albert Einstein 29

30 6 Performance Evaluation(The Feedback) 30

31 31

32 Performance Evaluation The Feedback Powerful influences on achievement Direct information about achieving goals Effective communication Always have a positive attitude Listen, listen, listen. Two-way conversation Give employee enough time 360 Evaluation Provide constant feedback address address issues immediately 32

33 Performance Evaluation Evaluation Form Employee title and hiring information Clear goals and objectives (KPIs) Description of expected competencies Evaluation Criteria i (Grading) Action plan for improvement (SMART) Employee s assessment of the evaluation Acknowledgements 33

34 34

35 7 Q&A 35

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