performance management model and performance management system
TRANSCRIPT
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PFM MODEL
Maintaining interrelations is complex It depends upon various factors
1. Nature of industry
2. Its size3. Nature of leadership
4. Orgn culture
5.Environment of competitiveness
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!.Industrial environment2. Resources
Desired performance Employees perception
& attitudes Actual performance Employees behaviour &
performance
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Gap analysis Individual, Team, Orgn Cause analysis
1. Reward and compensation
2. Data and information3. Resources - Tools Environment
4. Individual copetence
5. Motives and expectations
6. Skills and knowledge
7. Ethics in behaviour and action
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HR INTERVENTIONS
1. Feedback and counseling
2. Change management
3. Team building
4. Talent MGT5. T & D
6. Reward MGT
7. Competency mapping and Learning8. Ethical performance`
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H R outcomes
1. Quality work
2. Tangible rewards
3. Future growth
4. Enabling environment & inspiration
Orgnal performance improvement
Orgnal effectiveness
Competitive advantage
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IMPORTANCE
Helps to clarify the vision, mission ,strategy and values of the orgn.
Help to improve various business process
Help to attract and retain talent Facilitates competency mapping and T&D
Assist to validate the recruitment &
selection process Help employees to attain full potential and
balance between work and personal life
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I R to Individual relations
Enables sustainable orgnal.
Competitiveness , innovation , low
employee turnover
Builds intellectual capital at all levels
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PFM SYSTEM ( PMS)
PMS is a process of linking an employee jobobjectives to the orgn.s objectives and strategy
Every system will have its objectives/
components/elements and a process Every orgn. Needs a well defined and well
established system
It ensures effective management
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PMS enables realisation of the orgn.s strategy PMS is to boost employees performance and
ultimately the productivity of the orgn.
The purpose of setting PMS is to becomebetter
It refers to a set of orgnal. Managerial, team
and individual matrics used
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ELEMENTS OF PMS
Orgnal. Objectives and strategy
1. Ultimate goal achievement
2. Competitive position
3. Comparing orgn. Strengths with changing
environment
4. Examining critical issues of the orgn.
5. Analysing opportunities of the orgn.
6. Exploring best approaches- resources
&competencies
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Assessment of orgnal. Performance
1. Identifying competencies for achieving
the best
2. Determining new and future performance
needs3. Prioritising performance improvement
measures
4. Recognizing core values of the orgn.
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Setting orgnal. Perf expectations
1. Determining required Vs desired
2. Determining the current status
3. Understanding , aligning and agreeing on perfexpectations
4. Formulating key performance indicators
5. Evolving job objectives
6. Aligning individual goals with orgnal.
Strategy
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Establishing PFM process1. Designing a frame work
2. Performance planning
3. Performance execution4. Performance monitoring
5. Performance assessment
6. Performance review
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Measuring effectiveness of PFM1. Identifying opportunities for performance
development
2. Providing performance counseling including
360 degree feedback
3. Developing reward strategy and implementing
4. Instituting PFM audit
5. Improvement in competitive position of the
orgn.
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OBJECTIVES OF PMS
To leverage performance of the orgn. To create role clarity and clarify
performance objectives
To promote high performance workculture
To encourage teamwork , a sense of
belongingness and ownership To develop employees by identifying
T&D needs
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To improve relationships through two- way
communication
To bring out the hidden potential and
capabilities of the employees
To focus more on process
Initiating, developing and implementing a
follow up action
To recognise, reward and compensateemployees achievement in a more
objective. Transparent and equitable way
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CHARACTERSTICS OF PMS
Recruitment and promotion of employees
into roles that fit their talent
Creating a supporting work environment
to develop to the fullest
A systematic measure of an employees
value to the orgn.
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GOAL SETTING THEORY
.Each one of you is physically ready. Now go there and doyour best . No one can ever ask more than that
You should strive to achieve 95% in your board exam
In the late 1960s Edwin Locke proposed that intentions to
work toward a goal is a major source of work motivation. Goals tell-what needs to be done and how much effort need
to be put.
This theory tells about the goal value.
1. Specific goals increase performance.2.difficult goals when accepted result high performance
than easy goals.
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3.Feedback leads to higher performance.
4.Specific goals------General goals
5 .Accepted goals acts as internal stimulus.
6.Generally people accept easy goals.
7.Positive feedback work better.
8.Self generated feedback is more powerful.
9.Participative goal setting and assigned goals.
10. Difficult goals --Resistance greater.11.Participative --Difficult goals will be accepted.
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The other factors influencing goal
performance:
1. Goal commitment.
2.Self efficacy-
a) Individual belief.b)Higher self efficacy-more confidence in
ability to succeed ,try hard goals andrespond to negative feedback.
c) Lower self efficacy---less effort, may giveup, negative feed back lesser effort.
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3.Task characteristics:
a)Individuel goal setting does not work equally
well on all tasks.
b) Goals have more substantial effort on
performance:Simple complex,
Learned rather than novel,
Independent rather than dependent.
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EXPECTANCY THEORY
According to this theory an employee will be
motivated to exert a high level of effort when
he or she believes that effort will lead to
A good performance appraisal (Expectancy)
That a good performance appraisal will lead to
orgnal rewards such as bonus, a salary
increase ,or a promotion (Instrumentality) That the reward will satisfy the employees
personal needs/ goal (Valence)
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It focuses on three relationships:
1.Effortperformance relationship
Believes that exerting a given amount of effort will
lead to performance.
2.Performance--- reward relationship
Believes that performing at a particular level will lead to theattainment of a desired outcome and will be rewarded.
3. Reward----personal goal relationship.
The degree to which orgnal rewards satisfy individualspersonal goals or needs and the attractiveness of those
potential rewards for the individual.