performance management at network solutions, inc
TRANSCRIPT
PERFORMANCE MANAGEMENT AT NETWORK SOLUTIONS, INC.
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PERFORMANCE Accomplishment of a given task
measured against pre-set standards of accuracy, completeness, cost, and speed.
Generic Dimensions such as teamwork, know-how , quality
Job’s Actual Duties such as typing speed, communication skills for a receptionist
Competency based appraisals . Here , the idea is to focus on the extent to which the employee exhibits the behaviorally recognizable competencies essential for job. Performance management systems focus more on competencies.
AS A MANAGER YOU SHOULD KNOW WHEN TO …
Give Bonus
Promote
Give Salary Hike
WHEN TO
Transfer
Demote
Fire
PERFORMANCE APPRAISAL
Evaluating an employee’s current and/or past performance relative to his or her performance standards.
Performance appraisals are employed to determine who needs what training, and who will be promoted, demoted, retained, or fired
PERFORMANCE APPRAISAL INCLUDES
Taking corrective
Actions
Setting Performance Standards
Communicating the
Standards
Measuring the actual
Performance
Comparing with the Standards
Discussing the
Results
PERFORMANCE MANAGEMENT
A process that consolidates Goal
Setting, performance appraisal and
development into a single , common
system the aim of which is to ensure
that the employee’s performance is
supporting the company’s strategic
aim.
IT INCLUDES…….
Planning
Monitoring
DevelopingRating
Rewarding Performan
ce Management Process
FORCED DISTRIBUTION METHOD
A rating system used by companies to evaluate their employees. With this method you place predetermined percentage of rates into several performance categories. The proportions in each category need not be Symmetrical.
A TYPICAL FORCED DISTRIBUTION …….
One of the first companies to use this system was General Electric; it used top 20%, middle 70% and bottom 10% for managers.
ADVANTAGES Helps alleviate some of the more common rater errors, such as
severity error (i.E. When all employees are rated poorly) and leniency error (i.E. When all employees are rated well).
Employees are evaluated using the same criterion = objectivity
Facilitate more candid and open communication between managers and employees
Help employers identify their peak performers and allows for them to be rewarded in a more distinguished manner
Identified the outstanding performers, the average performers and also the sub-par performers.
DISADVANTAGES Even in a talented group, someone has to lose After a forced distribution system is in place for a few years and
the poorest performers are weeded out, it becomes more difficult to distinguish between 'superb' and 'outstanding' performers.
Performance categories or the labels on the categories are simply not indicative of the actual employee performance
Managers generally have a less positive reaction to such systems than to more traditional rating systems
Comparison of the levels of employee performance in different job positions and in different departments in order to rank the performance of all in the company
CHARACTERISTICS OF AN IDEAL SYSTEM
Strategic Congruence Thoroughness Practicality Meaningfulness Specificity Identification of
Effective and Ineffective Performance
Reliability
Validity Acceptability and
Fairness Inclusiveness Openness Standardisation Correctability
PMS aims at aligning individual performance objectives with organizational goals by focusing on development of all employees = Strategic Congruence
NSI also wanted the performance expectations of all employees to be clear = Openness
All employees are evaluated ; evaluation includes performance spanning the entire review period = Thoroughness
Encouraging all senior leaders to ensure that those reporting directly to them understood the process and also accepted it = Acceptability
Encouraged senior leaders to use the system with all their direct reports and demand and utilize output from the new system = Meaningfulness
Encouraged the senior leaders to stop the development and use of
any other PMS = Standardization Training resources were made available on NSI’s intranet for
managers and individual contributors, including access to all necessary forms.= Practicality
1 to2 hour conference calls took place before each phase of the program was begun.
Development planning phase of the system is the joint year round responsibility of managers and employees.= Partially Inclusive( employees not involved in Performance planning)
There is also a plan to monitor for and correct any unproductive practices and implement correcting policies and practices = Reliability
THE CASE IS SILENT ON
Acceptability and Fairness Inclusiveness Performance planning inclusiveness Practicality Identification of effective and ineffective
performance/behaviour characteristics Correctability
ADDITIONAL INFORMATION NEEDED FOR: Quantified facts which include figures,
data(numeric) with proper time lines. Employees’ feedback and response in terms of
the new system which has been implemented. Opinions of employees from all the departments
of the organization before implementing the new system has been taken or not .
NSI plans on continued checks with all stake holders to ensure that the PMS is serving its’ intended purpose- but how?