Performance Management Member : Andhika E. P. ( 0042.0120.5012 ) Dadang K. S. ( 0042.0120.50XX ) Evi Muslianawati ( 0042.0120.5090 ) Nadya Arkestianti ( 0042.0120.50XX ) Suryadi ( 0042.0120.5088 )
Overview of Performance Management ( Andhika ) • Performance planning: Plan for the coming year in the following areas • Day-to-day coaching and feedback • Quarterly Performance Check-in • Formal performance review Ref :
Performance Management ( Andhika ) A. STRATEGIC AND GENERAL CONSIDERATIONS • Performance Management and Reward Systems • Performance Management Process • Performance Management and Strategic Planning B. SYSTEM IMPLEMENTATION • Defining Performance and Choosing a Measurement Approach • Measuring Results and Behaviours • Gathering Performance Information • Implementing a Performance Management System
Performance Management ( Andhika ) C. EMPLOYEE DEVELOPMENT • Performance Management and Employee Development • Performance Management Skills D. REWARD SYSTEMS, LEGAL ISSUES AND TEAM PERFORMANCEMANAGEMENT • Reward Systems and Legal Issues • Managing Team Performance
Performance Management and Reward System ( Andhika ) • Definition of Performance Management (PM) • The Performance Management Contribution • Disadvantages/Dangers of Poorly Implemented PM Systems • Definition of Reward Systems • Aims and Role of PM Systems • Characteristics of an Ideal PM System • Integration with Other Personnel and Development Activities
1. Definition of Performance Management (PM) ( DADANG ) Performance management is a continuous process of identifying, measuring and developing performancein organisations by linking each individual’s performance and objectives to the organisation’s overallmission and goals.
1. Definition of Performance Management (PM) ( DADANG ) Definition’s two main components: A. Continuous process. Performance management is ongoing. It involves a never-endingof setting goals and objectives, observing performance, and giving and receivingongoing coaching and feedback B. Link to mission and goals Performance management requires that managers ensure that employees’ activities and outputs are congruent with the organisation’s goals and, consequently, help the organisation gain a competitive business advantage.
2. The Performance Management Contribution ( Evy ) • Motivation to perform is increased • Self-esteem is increased • Managers gain insight about subordinates • The job definition and criteria are clarified • Self-insight and development are enhanced • Personnel actions are more fair and appropriate • Organisational goals are made clear • Employees become more competent
2. The Performance Management Contribution ( Evy ) • There is better protection from lawsuits • There is better and more timely differentiation between good and poor performers • Supervisors’ views of performance are communicated more clearly • Organisational change is facilitated
3. Disadvantages/Dangers of Poorly Implemented PMSystems ( Suryadi ) • Employees may quit due to results • False or misleading information may be used • Self-esteem may be lowered • Time and money are wasted • Relationships are damaged • Motivation to perform is decreased • Employees suffer from job burnout and job dissatisfaction • There is increased risk of litigation
3. Disadvantages/Dangers of Poorly Implemented PMSystems ( Suryadi ) • Managers are required to use an unjustified amount of resources • Standards and ratings vary and are unfair • Biases can replace standards • Mystery surrounds how ratings were derived
4. Definition of Reward Systems ( Suryadi ) • Base Pay • Cost-of-Living Adjustments and Contingent Pay • Short-term Incentives • Long-term incentives • Income Protection • Work/life Focus • Allowances • Relational Returns
5. Aims and Role of PM Systems ( Evy ) • Strategic Purpose • Administrative Purpose • Information Purpose • Developmental Purpose • Organisational Maintenance Purpose
6. Characteristics of an Ideal PM System ( Dadang) • Strategic congruence • Thoroughness • Practicality • Meaningfulness • Specificity • Identification of effective and ineffective performance • Reliability • Validity
6. Characteristics of an Ideal PM System ( Dadang) • Acceptability and fairness • Inclusiveness • Openness • Correctability • Standardisation • Ethicality
7. Integration with OtherPersonnel and DevelopmentActivities ( Dadang ) • A performance management system is the key factor determining whether an organisationcan manage its human resources and talent effectively. • Performance managementprovides information on who should be trained and in what areas, which employeesshould be rewarded, and what types of skill are lacking at theorganisationor unit level.
7. Integration with OtherPersonnel and DevelopmentActivities( Andhika) • Performancemanagement also provides information onthe types of employeewho should be hired. When implemented well, performance management systems providecriticalinformation that allows organisations to make sound decisionsregardingtheir people resources.