Strategic Approaches in Performance Management

What is Performance Management ?

Systematically managing all the people in an organization,

for innovation, goal focus, productivity and satisfaction--it is a goal- congruent win - win plan
strategic and integrated approach to delivering

sustained success to organizations by improving performance of people who work in them and by developing the capabilities of teams and individual contributors
Armstrong and Baron

Why strategy?
Achieve increased organizational effectiveness

Better results for individuals and team

Higher level of skills, competence, commitment and

motivation.

 Based on Principles of Management by agreement or

contract than Management by commands. Integrated in 4 senses:Vertical integration:-linking business, team and individual. Functional integration:-Linking functional strategies. HR integration:-Different aspects of HR managements. Integration of individual with Organisation.

As entrepreneurs, we strive for excellence.

Innovation award
net profit

best new business award customer satisfaction ratings

strategic performance management

But too often we fail to provide the grounding needed to sustain excellence.

We invest . . . business plan and strive to win.

start up capital time energy intellectual capital passion

Open for business!

this is execution . . .

strategic performance management

Senior managers now recognize execution as a primary responsibility & growth priority.
improving performance management improving governance & controls 43% 42% 42% 38%
From IBM performance survey, 2003 strategic performance management 7

52%

improving planning & budgeting

improving competence/ skills improving access to information

Purpose Of Performance Management

Aim at better results.
Aim at Performance improvement. Aim at Employee Development Aim at satisfying the needs and expectation of all. Aim at communication and involvement.

Scope ?
Managing within context of the business.
Concern everyone in business. Jointly responsible for results. Horizontal Integration.

Valuing People

Paying people

Performance Management

Developing People

Involving People

Process
Focus on future performance Planning
Concerned with Individual Performance and

development
Produce Review in form of individual rating. Measuring Outputs.and also concerned with input,

knowledge skills, and competencies.

Execution requires a holistic, integrated, & fact-based management style.

vision

creative tension

strategic planning

people

processes

an interactive cycle

current state

strategic performance management

12

Performance Cycle
SETTING EXPECTATIONS

PROVIDING ACTIONABLE COACHING & FEEDBACK

OBSERVING BEHAVIOUR AND MEASURING RESULTS

CONCLUSION
It is not about establishing a top-down,backward-

looking form of appraising people.neither it is a just a method of generating information for pay decisions. Performance management is a strategic process because it is a forward looking and developmental. Focus on discussions and supports rather than dictator ship.

Reference
Strategic Human Resource Management by S.K.

BHATIA. Performance Management : Soumendra narain bagachi

PPT of Professor Lucia Miree

American University in Bulgaria. PDF on Connecting the Hard and soft :HAY GROUP