Performance Planning - Defined Performance Management System - Assignment Example

Performance planning and review Introduction Ask any manager in the modern times what the primary assets of his organization – the answer will be (inmost cases) “people”. We must clearly recognize that the implied dimensions of knowledge in person’s head may be as vital to achieving organization goals as are the explicit, codified forms of knowledge that have been built over the time. Today, we are faced with a problem of increased magnitude – how best to utilize the resources available in the organization; and to maintain or improve its overall performance; it must improve the performance of the individuals within the organization. To manage and improve performance one must have the abilities to identify the variables that affect performance, to predict the changes that will result if variables are changed, to change the variable and to repeat or duplicate the changes. So much is changing in the way we do business, the capacity to adapt and to shift our thinking is critical. Thus a defined performance management system becomes an essential tool for an organization. Fundamentals of performance planning “Performance planning and assessment is an ongoing process of communication between managers and their staff. The process involves a proactive planning component at the beginning of the performance year; ongoing feedback and coaching during the year; as well as an annual end of year meeting.” 1 It is a fact that performance planning is necessary for performance improvements. A good plan gives a sense of direction and utilizes human potential and enhances individual and organizational performance. Performance planning done in a participative way using the organizational context (vision, mission, goals- long and short term) will enhance commitment to performance, enhance communication and joint problems solving and hence result in better performance or performance with joy. Developmental needs should be identified along with performance planning in the beginning of the year and thereafter continuously rather than at the end of the performance period. The individual in the organization should own performance management more than his boss and his boss more than the HRD department. General objectives “In any work environment, there are times when the need arises to express concerns or complaints in a formal manner. …. the importance of providing an opportunity for its employees to express concerns and receive a fair and unbiased review of these concerns” 2 Generally “Performance management systems” have a lot of potential to achieve many objectives, especially through an open discussion with its people-the most trustworthy asset of the organization. Role clarity, gaining insight into the strengths and weaknesses of the individual, identification of developmental needs, competency development, promotion decisions, culture building, value promotion, performance rewarding and monitoring – these are some of the key areas where an effective performance management will The Five Phases of Performance Review Phase One - Performance Planning: The process begins with performance planning that is jointly conducted by the employee and his/her supervisor or manager. The performance plan should be tailored to the individual employees assignment and should establish the basis for performance evaluation at the end of the period. When implemented successfully, the program will be used both as a communication and counseling tool, and as a basis for performance evaluation. Phase Two - Monitoring (Tracking): Most people are unable to recall a small portion of their experiences, observations and thoughts even a few hours after they have occurred. Performance evaluation enables managers to summarize the work of an employee for as long as a year. “While progress and performance expectation feedback is on going in an informal manner, the Progress Meeting form completion is a formal method of tracking progress in accomplishing tasks and objectives. Normally a progress meeting would take place halfway to agreed upon goals/objectives.” 3 Phase Three - Performance Counseling: During the year, the employee and the manager should meet whenever appropriate to review progress, discuss ways to improve, and agree on changes in direction, procedure or responsibilities. Phase Four - Review (Appraisal): The performance appraisal interview is the heart of the program. Its purpose is to help the employee function more effectively. Phase Five - Follow-Up (Realization): The follow-up phase involves your making sure a plan of action is carried out. It involves creating a climate of communication so open the employee will find it easy and desirable to approach you for further help or discussion at a later date. Performance Planning and review – method Primarily, it is considered that Job success factors (JST) are critical for the success of every employee in every position within the organization. All employees of the organization are expected to meet expectations in all job success factors, which are listed in the system. Additionally individuals who have supervisory and/or management responsibilities are expected to meet expectations in JST that reflect supervisory/management performance, which are listed in the system. Under each JST are related proficiency or behavior components attached. Job success factors There are six key areas that are reviewed in assessing performance of the individual and they are as follows (important components related to the areas are mentioned accordingly): 1) Interaction with others: Communication, Customer service, Team work, Inter personal skills 2) Process improvement/innovation Resourceful, Initiative 3) Contribution to work environment Attendance/punctuality, Self development and knowledge sharing, Achieves the right results, Safety/security, Ownership, Has/promotes affirmative action 4) Expertise Technical skills, Problem solving, Quality/quantify of work, Knowledge and efficient usage of available tools/technique/resources, Accuracy 5) Performance traits Reliability and dependability, Composure, Flexibility, Judgment Please note that review on each component is made and additional components are added, depending on the individual’s role and responsibility. Finally the overall performance review rating is prepared based on ratings as described below: 6) Overall performance Review Exceptional: Exceptional performance that is rarely achieved; provides precedent –setting results beyond the scope of the major functions; demonstrates the highest standards of performance. Exceeds expectation: Frequently exceeds major requirements and expectations; accomplishments noteworthy and highly values; typically demonstrates higher standards of performance. Meets expectation: Consistently performs all major requirements satisfactorily; accomplishes all objectives; occasionally exceeds the expectations of the major functions. Opportunity for improvement: Occasionally fails to meet minimum requirements in one or more key aspects of major functions; demonstrates one or more performance deficiency; development opportunities will be discussed on order to meet expectations of position. Unacceptable: Consistently fails to meet minimum requirements in critical aspects of major functions and performance standards; immediate improvement required. Collection of relevant data/inputs Data is collected by way of questionnaires and periodical interviews. The data inputs are received from all the respondents of the questionnaires or interviews. “The Performance Planning Discussion provides a forum to discuss with your supervisor your duties and responsibilities, to reach an understanding about current directions and how your position affects unit objectives. It is an opportunity to clarify position priorities for the year linked to organizational planning and the position responsibilities and to discuss workload.” 4 The respondents can be the participant’s boss, peers, team members, internal and external customers and finally the individual himself. Finally based on the data and review rating a report is prepared for action, accordingly; the feedback is given to the individual undergoing the performance management system-designed to promote awareness, understanding, acceptance and ultimately changed behavior. Effect of the planning and review The effectiveness of review in achieving its goals depended much on the knowledge, skills, attitudes and performance of all staff and in recognizing their individual achievements. Overall achievement and findings It helped in developing mutually established goals It assisted and motivated employees in improving their performance. It improved employer-employee relations through better communication. It provided a periodic and systematic basis for coaching or counseling conferences between supervisors and subordinates. It provided an opportunity to discuss with employees how well they are meeting job expectations and standards. It provided a record of each employees growth in terms of job skills and experience and identified additional training needs It diminished any favoritism in treatment of employees. It provided documentation to support promotions, transfers, retention, and salary decisions. It enhanced involvement of staff in decisions relating to their performance and development objectives It enabled to identify areas of development as they relate to immediate and evolving job requirements and career plans It enabled understanding related to recognition of achievement and identification of appropriate rewards It enabled early identification of obstacles to the achievement of performance objectives and measures to overcome these obstacles Shortcoming of the system and possible solutions The system is not having the right emphasis, with similarity to traditional appraisal system of rating. Solution: The emphasis should be on the process and performance improvement. It is poorly designed system. For example the format is simple with no guidelines and accompanying instructions. Solution: Each parameter should be clearly stated with specific guidelines. It is designed in such a way to achieve multiple objectives. Solution: Aiming at multiple objectives will make the system a mess and it is more practical to focus on one or two most important objectives. Multiple components in the system (KPA, Goal setting, self appraisal, review discussion etc..) . Solution: Most of the components need not be overplayed and should be internalized. Lack of organizational support. Solution: More focus on organizational support factors like work conditions, resources, facilities etc.. Lack of competency and time to monitor the system. Solution: Proper training to be implemented to related people, they need to have time, aptitude and role clarity. Lack of follow up by the HR Department. Solution: Ensure follow up in the form of quarterly review meetings, implementation meetings, survey feedback etc.. Top Management commitment: Solution: Top management should integrate the system into all their other interventions, as this is the main system of planning and managing performance. Nature of the system (Lack of motivation). Solution: People should be rewarded amply; else they will blame the system for not being recognized. Conclusion “It can be a painful process for both employee and supervisor” 5 – nevertheless, it is a necessity to a professional organization because of its positive outcome and scores of advantages. Works Cited Performance Planning, feedback and Development for Confidential Staff. www.hrandequity.utoronto.ca/Assets/comp/conf/PPFDform07.doc (accessed May 16, 2007). Grievance Procedure. Davidson. 2006 Davidson College. http://www3.davidson.edu/cms/x8101.xml (accessed May 16, 2007). Performance Planning and Review Process. 1965. Employee Reference Guide. Hampshire College. http://www.hampshire.edu/upl/fpg_34_302_1027620686.pdf (accessed May 16, 2007). Performance Planning and Review (PPR). Professional Staff. Human Resources Department. Queensland University of Technology. http://www.hrd.qut.edu.au/development/ppr/professional/docs/IntroductiontoPPRforStaff.pdf (accessed May 16, 2007). Doyle, Rebecca. A. 1996. Performance Review, Planning doesn’t have to be Pain. http://www.umich.edu/~urecord/9596/Jul09_96/artcl13.htm (accessed May 16, 2007). Read More