You have been asked to return to your alma mater and speak to current students a

Question

You have been asked to return to your alma mater and speak to current students about performance management issues.

Explain the concept of “performance management.”

Identify the most prominent types of performance management plans.

Compare the plans’ impact on the employee and the organization.

Discuss the relationship between performance management and compensation.

Evaluate the factors that should be considered when successfully implementing performance management within an organization.

Please do not copy! Make sure to address the types of plans

Explanation / Answer

In today’s highly dynamic environment where the buzz word for all the managers in functional department within organization is to focus on building performance orientation within the team members and also it’s not only the duty of the HR MANAGER along with a joint responsibility with the CEO all functional managers within the organization to make the organizations performance oriented where by only performing individuals in all functions like HR , MKTG, HR, AND SALES, PRODUCTION, OPERATIONS, ADMINISTRATION, SECURITY , PROCUREMENT, LOGISTICS ARE GIVEN PROMOTIONS TO THE NEXT LEVEL RESPONSIBILITES AND EVEN SALARY HIKE WITH LINKED TO PERFOMANCE OF THE INDIVIDUALS.

All the environment in the organization falls on the owners philosophy and also on the managerial skills and initiatives they put in nurturing , training, motivating and rewarding their sub team members which will allow the employees in all functional departments like marketing, sales, HR , Production, operations, stores, logistics, administration, security, procurement, finance, administration to work as one team and also to work for the achievements of individuals goals , roles, KRA’s, KPI’s, also individual objectives and over fall functional objectives should   be achieved with a strategic mission and vision alignments.

Hence from the above we can understand that the environment in corporate is to perform for the employees and take rewards and growth for their both personal and professional growths too

Otherwise continuous non performers do not have a space in the organization.

The reasons to analyze for the non performances by employees is a greater challenge to be achieved and work up by HR MANAGERS AND FUNCTIONAL MANAGERS

99% the reasons for non performance are revolving with less of the financial parts of but are more on the non financial incentives not given like

Rewards not given on time

Appreciations not done by the immediate superiors

Promotions not given based on performance but based on the ego massaging done to superiors

Medals, certificates, employee of the week, month and years not celebrated

Not nominated for training to improves ones professional and personal career growth

Bad superior and subordinate relationship

Next many a times we have seen that employees at all levels in management have to attend mandatory certain man days of training which will vary from the employees to from the various cadre’s in management they belong to.

Training calendars are prepared by the Training manager in HR and he also does a SKILL GAP analysis of employees and nominates them for the training programs with fixed man days training for the entire year

Immediate superiors cannot just pressurize his team member for performance targets and business development but needs to understand that if his team of employees are not trained then that would lead to de-motivation to their team members

Even training becomes one of the vital motivational tool for employees which gives them a loft of boost , confidence to deliver and handle their day to day strategic works with lots of self confidence an even managers need to hire the for an attitude and train for skills , knowledge and behaviours.

For all employees in the organization must be given on the start of the new financial should be given their goals and all objectives must be linked to KEY RESULT AREA AND KEY PERFORMANCES INDEX should also be very clear to the candidates so that employees are communicated in well advance that what is their role, goal and what is expected in terms of performances which can be documented and also now a day’s PERFORMNACE MANAGEMENT IN ORGANIZATIONS is made available as an icon on the web portal where employees documents and even the immediate superior will approve the same and expectations setting for performance criteria is clearly communicated well in advance.

Review of performance against targeted and achieved performances is done weekly, monthly, quarterly, half yearly and then final at the year end

Hence we have MYR AND FYR – MYR Means midyear review

FYR –FULL YEAR REVIEW

All employees within the same departments are then evaluated for performance and consistent performers who are achieving above and equal to or 110% and above their targeted in all parameters of performances are nominated for talent pool

Talent pool is a club of all super performers of all functions who are nurtured, groomed and provided skills, knowledge , further management education for promoting them to their immediate next level position in the organizations.

Achievements of 80% to 109% of all the parameters will be given salary hike

Below 80% will be treated as non performers and would be sent for performance improvement plans (PIP) where their existing immediate superior will counsel them for 2 months by specific targets will be given for performances and he has to achieve at any cost and failing to do so he will be removed from the organization for continuous non performances which is never allowed within organizations

Performance management ensures that environment within the organization is performance oriented and there is no room for non performers

Even training needs assessment is the outcome of the performance appraisal process which gives employees an option to give their own self improvement plans and other is their immediate superiors can give the training needs which he feels the individual subordinates require.

In corporate groups companies like ADITYA BIRLA GROUP AND RELIANCE INDUSTRIES LTD – MUKESH AMBANI GROUP training function is given a lot of importance and relevance as they believe that its only trained employees can deliver continuous performance with productivity by improving their skills, Attitude and knowledge enhancement thru Training both ONTHE JOB and OFF THE JOB

Example when the training invite is send to the employee for any topic of training needed to be attended by the trainee his immediate boss cannot stop him from attending the training and if the boss due to performance pressure does not send the team member for training it is taken as a very serious offence and he has to give a written explanation to the HR HEAD AND CEO for the same and which would be put as black mark in the performance HR FILE OF THE IMMEIDATE BOSS.

Hence training is a vital tool of motivation and it also improves the performance mind set of employees by giving him the new ATTITUDE, SKILLS AND KOWLEDGE which will improves his behaviour at work place to improving boss and subordinate relationship to.

Hence at no cost can the CEO AND HR DEPT HEAD ALONG WITH HR MANAGERS AND FUNCTIONAL MANAGERS WITHIN THE ORGANIZATION ALLOW ANY DELAY IN TRAINING PROGRAMS FOR WHICH PARTICULARLY EMPLOYEES HAVE BEEN NOMINATED TOO

EVEN ITS ONLY AT THE HALF YEARLY PERFORMANCE APPRISALS REVIEW, QUATERLY REVIEW, FINAL REVIEW THE TRAINING NEEDS ARE ASSED BY THE IMMEDIATE BOSS AND EVEN EMPLOYEES CAN NOMITE HIMSELF FOR A PARTICULAR TRAINING PROGRAM WHICH WILL IMPROVE HIS SKILL AT WORK PLACE MAKE HIM ETHICAL IN BEHAVIOURS AND AN EFFECTIVE LEADER WHO CAN TRAIN HIS TEAM MEMBERS WITH A SPIRIT OF COACHING.

Employees behaviour will improve due to performance management system in play a he/she is well aware what is expected out in well advance and he/she also knows that if employee wants to grow in his career within the organization performance is only the buzzword and which makes him more responsible and motivates him to take challenging assignments and work for the vision and mission of the organization with a positive spirit both as an appraise and appraiser for his team members

Compensation these days normally has two components for all employees in management

1 fixed part

2 variable parts

Today all companies gives importance to variable par which is linked to performance and depending on the individuals performances in line with the company’s performance and industry performance annual performance pay outs are made and also during salary hike for individuals more rise is given not on fixed pay but in the variable part making the employees challenging to perform better and better by raising his bar of performances

Even the classic case of Indian companies like TATA MOTORS LTD which has introduced performance management for its employees which are in the supervisory levels and worker levels too which is over and above the BONUS given to them on an annual basis

The trade union has welcomed this innovative approach of TATA MOTORS MANAGEMENT TO GIVEN PERFORMANCE LINKED INCENTIVES AND PAY OUTS TO WORKERS AND SUPERVISORY LEVELS WHICH IS GAME CHANGER FOR THE INDUSTRY.

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