Performance Performance managementmanagement

SystemSystem

ByBy Rahul TiwariRahul Tiwari

What is performance What is performance Management ?Management ?

► MANAGEMENT TOOL THAT PROVIDES A LINK MANAGEMENT TOOL THAT PROVIDES A LINK BETWEEN THE BROADEST AIM AND THE BETWEEN THE BROADEST AIM AND THE EFFORTSEFFORTS

► IT IS THE DAILY FUNCTION OF PLANNING, IT IS THE DAILY FUNCTION OF PLANNING, MOTIVATING, DEVELOPING AND SUPPORTING MOTIVATING, DEVELOPING AND SUPPORTING EMPLOYEES SO THAT THEY CAN MORE EMPLOYEES SO THAT THEY CAN MORE EFFECTIVELY ACHIEVE THE DESIRED RESULT EFFECTIVELY ACHIEVE THE DESIRED RESULT OF THEIR RESPECTIVE JOBSOF THEIR RESPECTIVE JOBS

► DOING SO CONTRIBUTE TOWARDS THE DOING SO CONTRIBUTE TOWARDS THE BUSINESS OBJECTIVES OF THE ORGANIZATIONBUSINESS OBJECTIVES OF THE ORGANIZATION

► CONSIDERS THE TOTALITY OF AN EMPLOYEES CONSIDERS THE TOTALITY OF AN EMPLOYEES PERFORMANCE – i.e.: THE RESULTS ACHIEVED PERFORMANCE – i.e.: THE RESULTS ACHIEVED AND THE COMPETENCIES (BEHAVIUORAL AND THE COMPETENCIES (BEHAVIUORAL SKILLS) USED TO ACHIEVE THOSE RESULTSSKILLS) USED TO ACHIEVE THOSE RESULTS

► PERFORMANCE = RESULTS + COMPETENCIESPERFORMANCE = RESULTS + COMPETENCIES

Why Performance Why Performance Management ?Management ?

► IT COMMITTED TO ENCOURAGING A RESULTS IT COMMITTED TO ENCOURAGING A RESULTS BASED CULTURE WITHIN THE BUSINESSBASED CULTURE WITHIN THE BUSINESS

► PERFORMANCE MANAGEMENT HAS STARTED PERFORMANCE MANAGEMENT HAS STARTED WITH MEMBERS OF THE SENIOR EXECUTIVE WITH MEMBERS OF THE SENIOR EXECUTIVE SERVICE THAT IS ESSENTIALLY MADE UP OF SERVICE THAT IS ESSENTIALLY MADE UP OF EXECUTIVE MANAGEMENT STAFF AND VARIOUS EXECUTIVE MANAGEMENT STAFF AND VARIOUS DEPRTMENTSDEPRTMENTS

► MANAGING PERFORMANCE IS CENTRAL TO MANAGING PERFORMANCE IS CENTRAL TO EFFECTIVELY MANAGING HUMAN RESOURCESEFFECTIVELY MANAGING HUMAN RESOURCES

► THE PROCESS SERVES BOTH DAY TO DAY MANGEMENT THE PROCESS SERVES BOTH DAY TO DAY MANGEMENT AND STRATTEGIC PURPOSESAND STRATTEGIC PURPOSES

► THE SYSTEM ALSO PROVIDES A MECHANISM FOR THE SYSTEM ALSO PROVIDES A MECHANISM FOR LINKING ORGANIZATIONAL AND PROGRAM GOALS LINKING ORGANIZATIONAL AND PROGRAM GOALS WITH THE ACTUAL PERFORMANCE OF INDIVIDUAL WITH THE ACTUAL PERFORMANCE OF INDIVIDUAL OFFICERS WITHIN THE ORGANIZATIONOFFICERS WITHIN THE ORGANIZATION

► IT ALSO PROVIDES A REVIEW MECHANISM WHERE THE IT ALSO PROVIDES A REVIEW MECHANISM WHERE THE QUALITY OF PERFORMANCE IS NOT ONLY MEASURED QUALITY OF PERFORMANCE IS NOT ONLY MEASURED BUT LEADS TO DECISIONS TO ASSIST, ACKNOWLEDGE BUT LEADS TO DECISIONS TO ASSIST, ACKNOWLEDGE AND REEWARD OR SANCTION PERFORMANCEAND REEWARD OR SANCTION PERFORMANCE

PRINCIPLES AND GUIDELINES OF PRINCIPLES AND GUIDELINES OF PERFORMANCE PERFORMANCE MANAGEMENTMANAGEMENT

► AS EARLY AS POSSIBLE IT IS IMPORTANT THAT AS EARLY AS POSSIBLE IT IS IMPORTANT THAT WHAT IS BEING PROPOSED IN TERMS OF WHAT IS BEING PROPOSED IN TERMS OF “PERFORMANCE MANAGEMENT”“PERFORMANCE MANAGEMENT”

► DEVELOPEMNT AND IMPLEMENTATION IS DEVELOPEMNT AND IMPLEMENTATION IS TAKEN IN CONSULTATION WITH EMPLOYEESTAKEN IN CONSULTATION WITH EMPLOYEES

► THE PROCESS SHALL INCLUDE THE THE PROCESS SHALL INCLUDE THE DEVELOPMENT OF A WORK PLAN WHICH DEVELOPMENT OF A WORK PLAN WHICH INCORPORATES THE SETTING OF GOALS AND INCORPORATES THE SETTING OF GOALS AND OBJECTIVES, PROGRESS REVIEW, AN ANNUAL OBJECTIVES, PROGRESS REVIEW, AN ANNUAL PERFORMANCE REVIEW AND JUDGEMENTS PERFORMANCE REVIEW AND JUDGEMENTS AND DECISIONS BASED ON THAT REVIEWAND DECISIONS BASED ON THAT REVIEW

Performance CyclePerformance Cycle

SETTING EXPECTATION

PROVIDING ACTIONABLECOACHING & FEEDBACK

OBSERVATION BEHAVIOUR AND MEASURE

RESULT

PMVCPMVC

►The PMVC is a framework to improve the analysis and management of performance measures based on its logical rationalization of performance data. For this reason, the researchers found it as a suitable tool to analyze the impact of performance measurement on business results. The seven PMCV’s phases are used as generic guidelines to develop a high level process of our proposed research methodology.

Performance measurement aspects of the organizations

Cross Case Analysis

Triangulation of data

Components of Data Analysis: Flow Model

The novelties of this approach:

► The study of internal and external impact of PMS. We refer as ‘internal impact’ as the impact of PMS in the business operations and capabilities and ‘external impact’ as the impact perceived by stakeholders, such as reputation, profitability, etc. It is achieved by the application of the cases studies following the two stages above described.

► This methodology will allows us to explore the sequential effects of the internal impact of PMS, in which almost no research has been conducted.

► Interviewing team leaders and measurement owners is a somewhat original approach, compared to most studies on the impact of PMS.

Important Implicationsof PMS

►providing a better understanding of the impact of PMS in their business.

►understanding the use of positive factors associated with positive impacts of PMS.

►Enhancing the selection and optimization of PMS factors that lead them to have positive impact on business performances.

Limitation of PMSLimitation of PMS

►The inherent problem is that some of these survey-studies lack of strong methodological basis and are limited to the knowledge and perception of people that answer the survey.

►Researchers do not have control on important variables such as if companies have in reality PMS in place.

►These results provide very little guidance to managers and practitioners to understand the impact of PMS and the factors associated.

►Nevertheless, it is understandable because surveys have a limited capacity to study and gather new findings

Contd….Contd….

►Most studies have focused on the financial and managerial impact of PMS.

►This is because these issues have a natural ability to manifest or reflect changes to the environment.

►One of the main reasons might be because it requires more time and commitment from participating companies to study the behavior and impact of PMS on operations.

Discussion and Conclusions

►The extensive body of research around the domain of performance measurement and management has basically concentrated on design and implementation of different frameworks and on the solution of PMS problems. Companies have made large investments on the hypothesis that the use of ‘balanced’ performance measurement systems has a positive impact on the performance of the organization.

►Despite the strong effort on the development and implementation of PMS, there is relatively little research, which tests the hypothesis that there is a positive return for the investment Even less investigation has been done on the identification of factors that lead to PMS having a positive impact on business results.

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