Where PM is applied The PM approach is used most often in the workplace but applies wherever people interact schools,

churches, community meetings, sports teams, health setting, governmental agencies, and even political settings. PM principles are needed wherever in the world people interact with their environments to produce desired effects. Cultures are different but the laws of behavior are the same worldwide. Armstrong and baron (1998) defined it as A strategic and integrated approach to increasing the effectiveness of organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors It is possible to get all employees to reconcile personal goals with organizational goals. One can turn around any marginal business and increase productivity and profitability for any organization, with the transparent and hidden forces embedded in this process. It can be applied by organizations or a single department or section inside an organisation; as well as an individual person. The process is a natural, self-inspired performance process and are appropriately named the selfpropelled performance process (SPPP). It is claimed that the self-propelled performance management system is: 1. the fastest known method for career promotion; 2. the quickest way for career advancement; 3. the surest way for career progress; 4. the best ingredient in career path planning; 5. the only true and lasting virtue for career success; 6. the most neglected part in teachings about management and leadership principles; 7. the most complete and sophisticated application of performance management; 8. the best integration of human behavior research findings, with the latest management, leadership and organizational development principles; 9. the best automated method for organizational change, development, growth, performance and profit;

10. the surest and fastest way for increased motivation, productivity, growth, performance and profitability for both the individual and the organisation; 11. the best career builder and career booster for any career; and 12. inspirational, as it gets people moving, makes them self-starters in utilising own talents and initiative, automatically like magic. First of all, deriving from the strategic plan, a commitment analysis must be done, where a job mission statement is drawn up for each job. The job mission statement is a job definition in terms of purpose, customers, product and scope. The aim with this analysis is to determine the continuous key objectives and performance standards for each job position. Following the commitment analysis, is the work analysis of a particular job in terms of the reporting structure and job description. If a job description is not available, then a systems analysis can be done to draw up a job description. The aim with this analysis is to determine the continuous critical objectives and performance standards for each job. Benefits Managing employee or system performance facilitates the effective delivery of strategic and operational goals. There is a clear and immediate correlation between using performance management programs or software and improved business and organizational results. For employee performance management, using integrated software, rather than a spreadsheet based recording system, may deliver a significant return on investment through a range of direct and indirect sales benefits, operational efficiency benefits and by unlocking the latent potential in every employees work day i.e. the time they spend not actually doing their job. Benefits may include : Direct financial gains

Grow sales Reduce costs Stop project overruns

Aligns the organization directly behind the CEO's goals Decreases the time it takes to create strategic or operational changes by communicating the changes through a new set of goals

Motivated workforce

Optimizes incentive plans to specific goals for over achievement, not just business as usual Improves employee engagement because everyone understands how they are directly contributing to the organisations high level goals Create transparency in achievement of goals High confidence in bonus payment process Professional development programs are better aligned directly to achieving business level goals

Improved management control

Flexible, responsive to management needs Displays data relationships Helps audit / comply with legislative requirements Simplifies communication of strategic goals scenario planning Provides well documented and communicated process documentation

The US Government's Office of Personnel Management indicates that Performance Management consists of a system or process whereby: 1. Work is planned and expectations are set 2. Performance of work is monitored 3. Staff ability to perform is developed and enhanced 4. Performance is rated or measured and the ratings summarized 5. Top performance is rewarded

Overview Performance management is the systematic process by which an agency involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals.

Performance appraisal methods (Tools of ) Performance appraisal methods include 11 appraisal methods / types as follows: 1. Critical incident method The critical incidents for performance appraisal is a method in which the manager writes down positive and negative performance behavior of employees throughout the performance period 2. Weighted checklist method This method describe a performance appraisal method where rater familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs 3. Paired comparison analysis Paired comparison analysis is a good way of weighing up the relative importance of options. A range of plausible options is listed. Each option is compared against each of the other options. The results are tallied and the option with the highest score is the preferred option. 4. Graphic rating scales

The Rating Scale is a form on which the manager simply checks off the employees level of performance. This is the oldest and most widely method used for performance appraisal. 5. Essay Evaluation method This method asked managers / supervisors to describe strengths and weaknesses of an employees behavior. Essay evaluation is a non-quantitative technique This method usually use with the graphic rating scale method. 6. Behaviorally anchored rating scales This method used to describe a performance rating that focused on specific behaviors or sets as indicators of effective or ineffective performance. It is a combination of the rating scale and critical incident techniques of employee performance evaluation. 7. Performance ranking method Ranking is a performance appraisal method that is used to evaluate employee performance from best to worst. Manager will compare an employee to another employee, rather than comparing each one to a standard measurement. 8. Management By Objectives (MBO) method MBO is a process in which managers / employees set objectives for the employee, periodically evaluate the performance, and reward according to the result. MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods) 9. 360 degree performance appraisal

360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them. This post also include information related to appraisal methods such as 720, 540, 180

10.Forced ranking (forced distribution) Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution. For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and 10 percent in the bottom. 11. Behavioral Observation Scales Behavioral Observation Scales is frequency rating of critical incidents that worker has performed. 1. Planning Work & Setting Expectations Effective organizations are proactive. Planning means setting performance expectations and goals for groups and individuals, to channel their efforts towards achieving organizational objectives. Involvement of the employees in the planning process will help them understand the goals of the organization, what needs to be done, why it needs to be done, and how well it should be done. Above all, their acceptance towards the goals is also high. The planning process will result in an informal/formal agreement between the employee and his/her superior and covers the objectives to be achieved, the resources provided to the employee to achieve them as well as the autonomy and flexibility available to him. To plan the performance of the individual, the measurable, understandable, verifiable, equitable, and achievable elements and the standards of the performance appraisals are to be set beforehand. 2. Monitoring Performance

In an effective organization, assignments and projects are monitored continuously. Good monitoring implies consistently measuring performance and providing ongoing feedback to employees and work groups on their progress toward reaching their goals. In most countries that have undertaken reforms, considerable emphasis has been placed on performance measurement and monitoring whose two main elements are - the use of KPIs to track performance and relate outlays to output to outcomes. The outlay-output-outcome framework also serves as a significant accountability mechanism. Monitoring performance includes contrasting and comparing the standards that were set and the targets achieved. Ongoing monitoring also provides the opportunity to check how well employees are meeting predetermined standards and to make changes to unrealistic or problematic standards. Monitoring continuously helps to identify unacceptable performance in the appraisal period itself and can be checked there and then, instead of waiting for the year to end.

3. Developing the Capacity to Perform In order to develop the organization, there is need to assess and address the developmental needs of the employee. Developing in this instance means increasing the capacity to perform through training, giving assignments that introduce new skills or higher levels of responsibility, improving work processes, or other methods. It motivates them for good performance, strengthens job-related skills and competencies, and helps employees keep up with changes in the workplace, such as the introduction of new technology. Performance management provides the platform to identify the need for training and development of the employee. 4. Rating Performance In order to identify the best employees, organizations do a comparative analysis of the performance of the employees. The rating here means evaluating the performance against the performance standards. It is based on work performed during an entire appraisal period. The

rating of record has a bearing on various other personnel actions, such as granting within-grade pay increases, weightage for career progression and other Incentives. Performance appraisal must factor the following considerations: a. Performance has been defined prior to the appraisal period. b. Standards & elements of performance are set and clarified to the employee, prior to the appraisal period. c. The opportunity to improve, must be given to the individual, before categorizing his/her performance. d. The circumstances including resource and other constraints also need to be taken into account while appraising performance. e. The employer has the right to demand performance and ensure accountabilities.

5. Rewarding Good Performance Organizations seeking good performance from their employees use rewards as a means to it. Rewarding means recognizing employees, individually and as members of groups, for their performance and acknowledging their contributions to the agencys mission. A basic principle of effective management is that all behavior is controlled by its consequences. Good performance is Recognized without waiting for nominations for formal awards to be solicited. Recognition is an ongoing, natural part of day-to-day experience. A great deal of the actions that reward good performance like saying Thank you and congratulations on good work do not have any monetary implications. More formal rewards can take the shape of cash incentives, time off and formal recognition.

Why does performance initiative fail?