E+-+e-Performance+Management

=e-Performance Management=  ▫  These are some of the questions that need to be answered when we are developing a performance management model
 * 1) How can we identify our best performers in order to focus our retention programs?
 * 2) How can we improve performance and productivity across the company?
 * 3) How can we ensure that our managers develop employees so that we can build needed marketplace capabilities?

In this section we will answer these questions and provide some information on e-Performance Management


 * e-Performance management** is defined as the overall process which includes goal settings, performance appraisal, and development into a single common system. The goal is to ensure that employee's performance and supports the company's strategic aims.


 * e-Performance Appraisal** is evaluating an employee's performance relative to performance standards. Some appraisal methods include : ranking, forced distribution, and behavioral checklist.

Remember, Performance Appraisal is the act of reviewing an employee's performance, while performance management is the process of reviewing and improving an employees performance.
 * e- What's the difference between Performance Appraisal and Performance Management ?**




 * __Fundamentals of performance Management__**


 * A plan-do-check model, which involves preplanning or discussion of work to be discussion of work to be done, with periodic assessments against actual performance.
 * A supervisor-initiated process, with either one focal point review or a review conducted on the anniversary date of the employee.
 * Employee input into the process, often through an informal memo or streamlined edition of the employee performance appraisal summary form used by managers, supervisors, and team leaders.
 * A summary performance rating, which is used as input into a variety of HR systems and programs. The summary rating is used, along with other variables, to determine merit increases and, in some cases, other rewards, such as stock allocation or variable pay.
 * An annual cycle, with quarterly feedback encouraged, but not monitored or required to be submitted formally in writing.

Figure 6-1 __**What are high-performing companies doing differently than other companies**__

There was a study conducted in 1999 By Towers Perrin Called the Compensation Effectiveness Survey to assess the effectiveness of various compensation and compensation-related systems. The top high performance companies reported a clear difference in the design and execution of the performance management systems in a number of areas. (See figure above) This study shows that careful attention to the individual components of performance management systems cans and does make a difference in organizational performance.

__**Seven Factors to consider in a performance**__

Although the seven factors above look very simple, they are complex to design and execute. The companies which have advanced and made the most progress look at each of the seven independently, in order to assess the "state of the union," and collectively, to see if the overall system is creating leverage.

A method to increase the linkage between business strategy and individual performance. Once this linkage is made, a companies business strategy will be accomplished easer. The main design principles are:
 * __Business Strategy Link__**
 * Goals utilized in the performance planning process are linked closely to business strategy or objectives.
 * The goal setting process for the organization and the individual are linked
 * The goals flow from the top management, and included the individuals goals to aide in accomplishing the company strategies.

Answering the question, “How do I know what measures to set for different individuals or for different positions?" Measuring performance in such ways as "what" is done but also "how " it is done. In some firms this has led to the creation of specific behavioral expectations for pivotal roles; other firms measure overall performance against company wide expectations. There are two types of measurements, objective and subjective. Objective -Hard copy, ie amount of sales, tardiness, and units of a product produced. Subjective- ie Who rates the employer (supervisor, peers, customers). Different raters may have different opinion of the person. This may cause errors such as halo effect and control tendency.
 * __Measurement__**

Increasing employee involvement in in their performance management. This can be done by introducing employee goal setting, or integrating customer input into the appraisal and evaluation process.
 * __Involvement__**

Highly marketable employees values training and development. Organizations are now increasing development to increase their retention rates.
 * __Development__**

When companies use the final performance management summary rating as a factor in determining: pay raises, bonuses, stock grants, and other variable rewards. This results in an aligned pay-for-performance system that reinforces the organization’s goals and strategies.
 * __Reinforcement__**

Performance management systems can be integrated into other strategies and programs such as rewards programs and retention studies.
 * __Link to other systems__**

Recent years have shown tremendous improvement in companies' abilities to reduce the administrative burden required to deliver an effective performance management system. Technology, especially web- based solutions, now exist to help companies streamline many of the mundane tasks associated with performance management. The key to maintaining an effective process is that performance management must be seen as a powerful motivator of behavior.
 * __Process__**



=Looking Ahead........=


 * __Historical progression of performance management and where leading-edge companies are directing their attention__**

There are 3 stages as seen below: Stage 1- **Performance Appraisal** - Past systems Stage 2- **Performance Management**- current systems being established Stage 3- **Performance Organization**- looking ahead into the future

Many companies report that their current practices still reflect stage 1, performance appraisal, despite their efforts to transform themselves into high- performing companies. In such cases it is important to consider the culture of the organization that must be changed along with the introduction of the new performance management system.



We can assume that technology will take us in new areas in the next few years, further reducing administration and tightening the linkage with overall business strategy.

Question of the day: 10 years from now will anyone still care about performance management?

Answer: Look in the text chapter 6 (Walker) .... hint, hint..... answer found in conclusion.