PERFORMANCE

MANAGEMENT
AND FEEDBACK
Strategic Human Resource Management
What is
Performanc • Effective and timely feedback is a
e critical component of a successful
Manageme performance management
nt and program and should be used in
Feedback? conjunction with setting
performance goals.

• If effective feedback is given to

employees on their progress
towards their goals, employee
performance will improve.
  Redmond, Washington–based global software giant
Performan Microsoft recently redesigned its performance
ce management system to allow its integration with the
company’s compensation program and provide a
Manageme transparent process to facilitate differentiated
nt Process rewards for various performance levels.

at
 After the 2000 dot-com bust, compensation was
Microsoft altered to provide a greater percentage of
Corporatio compensation in the form of cash. As the stock price
stabilized, Microsoft shifted its remaining equity
n compensation away from stock options in favor of
restricted stock units, which reward performance
over time and retention of employees.
 Assessment of Performance

Assessme
nt of
Performan
ce at
Microsoft
Corporatio employee performance during the year rel-
ative to individual goals and performance of
n peers
the behavior displayed in achieving results
employees’ overall capabilities and per-
ceived future value in tandem with per-
formance history
  The regular review of an employee's job
performance and overall contribution to a company.
Also known as an annual review, performance
review or evaluation, or employee appraisal, a
performance appraisal evaluates an employee's
skills, achievements, and growth, or lack thereof.
Performan
ce  Implies a one-sided judgmental approach to
performance management, where employees have
Appraisal little involvement in the process. Traditional
performance appraisal simply involves evaluative
supervisory comments on past performance.

 Such a process does not involve any kind of

management, per se, as the only performance that
can be managed is present and future performance.
Performan
ce
Appraisal
  Performance appraisal involves hierarchical,
downward communication from supervisor to
subordinate concerning the value the
supervisor places on the subordinate’s
performance

Performan
ce
Appraisal
Methods
of
Performan
ce
Appraisal
Feedback is part of
Performance
Management
 Performance Management refers to the processes
to ensure the organization connects mission with the
work of employees where it involves two related
activities: 1. Evaluating the performance of
employees,2. Helping them develop action plans to
improve.
  Clarifying job responsibilities and expectations
Outcomes of  Enhancing individual and group productivity
effective  Developing capabilities through feedback
Performance  Align behavior the organization mission, values
Management  Providing a basis for making HR decisions

 Improving employee-manager communication

Performance management tools that must
be
 Relevant to organization
 Tailored to mission values
 Find inspiration
 Competency based
 Job related
 What is performance feedback
 Performance feedback is a partnership
between managers and staff members
that produces clear, thoughtful, and
Feedba honest discussions around goals and
outcomes.
ck  is a way of assessment of work done or
processes and is an integral part of the
HR department.
 Feedback is a way to understand the
needs, requirements, performances etc
of employees in an organization.
 It helps in understanding the
performance of employees. Those who
are doing good are rewarded and those
who are lacking some skill are trained.
Importan
ce of
Feedback
Tips on Providing
Positive and
Constructive
Feedback
 • Recognize frequently
• Consider preferences
• Focus on impact

Positiv • Encourage more

e
Constructi
ve
• Be prompt
• Planned private meeting
• Focus on behaviors
• Describe behaviors
• Define expectations
Difference between performance appraisal
and evaluation and Feedback:
• Performance appraisal involves hierarchical,
downward communication from supervisor to
subordinate concerning the value the supervisor
places on the subordinate’s performance.
• Feedback involves a mutual exchange of
information that both parties share, discuss, and
jointly assess in planning future work activities.
  360-degree feedback is a method or tool that gives
employees the opportunity to receive feedback from
their supervisor or manager, as well as other team
members and customers. Feedback tools are also
used by each individual to perform a self-evaluation.
Tools
360
Performanc
e Feedback
 • Provides feedback to employees from a variety of
sources
• Develops and strengthens teamwork and

Upsid
accountability
• Uncovers procedural issues that can hinder
employee growth

es •
•
Reveals specific career development areas
Reduces rater bias and discrimination tendencies
• Offers constructive feedback to improve employee
outputs
• Supplies insight on training needs
 • Serves as only part of overall performance
measurement system
• Causes organizational issues if implemented
in hasty or incomplete fashion
• Can fail to add value if not effectively woven
Downsi into existing performance plans
• Prevents recipients from getting more
de information because the process is anonymous
• Focuses on employee weaknesses and
shortcomings instead of strengths
• Provides feedback from inexperienced raters,
and groups can "game" the process
• Requires large degree of data collection and
processing in some cases
Enhancing
Performance
  It means mentally improving upon the way you currently perform. It
doesn't necessarily mean that you are doing something wrong or
performing inappropriately. It is also a form of organizational development
focused on increasing outputs and improving efficiency for a particular
process or procedure. Performance improvement can occur at different
levels including the employee level, team level, the division or unit level
What is and the organization as a whole.

Enhancing
Performanc
e?
5 Strategic Decisions in
Establishing its Performance
Management system
 A Performance Management system can serve
multiple purposes, and it is important for the
organization to strategize why the system is being
used before further design decisions can be
Determinati made. If the system is developed to serve several
on of the purposes, the organization also needs to ensure
that these purposes are at odds with each other
Purpose of and that any purpose does not undermine data
the System collection for the other(s). One purpose of
performance management systems is to facilitate
and how it employee development. By assessing deficiencies
in performance levels and skills, an organization
will be used can determine specific training and development
needs.. Assessing individual and team strengths
and weaknesses can allow employee and team
development plans to be established
 Salary, promotion, retention, and bonus
Determine decisions are frequently based on data
collected as part of performance
Appropriate measurement. Therefore, employees must
Rewards understand and accept the performance
feedback system as a prerequisite for
and accepting decisions made relative to rewards
Compensati and compensation. Any perceived unfairness
of the performance feedback system on the
on part of employees will result in a perceived
unfairness of the compensation system
 A formal process that allows for
Enhance employee acknowledgment and praise
can reinforce the behaviors and
Employe outcomes that are beneficial to the unit
or organization. Employees can be told
e specifically what the organization’s
Motivatio expectations for them are, and
employees can inform their employers
n of the types of job assignments and
responsibilities they desire
 Federal, state and local laws that prohibit
discrimination in terms and conditions of employment
Facilitate all apply to a covered organization's performance
management policies and practices. Accordingly,
Legal organizations should take all appropriate steps,
Complianc based on advice from counsel, to ensure that both
the design and the implementation of their
e performance management systems do not run afoul
of equal employment opportunity laws and
regulations
Performance
Management Performance data can alert the organization to
Systems deficiencies in the overall level and focus of
employee skills and can be used in critically planning
Facilitate the for future staffing needs relative to the skills and
Human abilities of current employees. Because performance
feedback can perform multiple functions in any
Resource organization, the organization must determine how it
(HR) will be used prior to developing the system.
Planning
Process
The Performance Management Process is often linked with other Organizational Systems
such as:

Strategic planning - Many long-term workforce planning models use performance management
measurements to assess the "quality" of the workforce and whether the organization is attracting
and retaining talented workers.

• Total compensation. - Most organizations use performance measurements as the basis for pay-
for-performance compensation processes.

• Individual and team development - An individual development plan (IDP, also known as a career
development plan) is often used in conjunction with the performance review process as a final
documented step to assist employees in goal setting and individual development that will serve to
advance their career and promotional opportunities.

• Succession planning - Performance data over time are vital inputs for long-term planning for
future organizational leadership.

• HR technology systems - Many organizations use software applications to manage the

processes associated with goal setting, performance review and performance improvement plans.
  A performance improvement plan (PIP), also
known as a performance action plan, is a tool to
give an employee with performance deficiencies
the opportunity to succeed. It may be used to
Performance address failures to meet specific job goals or to
ameliorate behavior-related concerns. It is also a
Improvement document that lists where an employee is falling
Plans (PIP) short and what he can do to improve. For instance,
the performance action plan may detail skills or
training the employee lacks. Alternatively, it could
specify how the employee needs to change his
behavior. In either case, the PIP will clearly state
the steps the employee needs to take to make the
necessary improvements.
Strategies for
Improving Employee
Performance
Track
Individu
al
Progres Get to know your employees inside out. Understand what
s motivates them, what annoys them, their hobbies and
interests outside of work, personality traits and how they
best performance in their working environment. You can
monitor and track their progress by scheduling regular
meetings with them.
Set
SMAR
T
Goals Setting SMART goals is a great way of encouraging
personal development and improving employee
performance. When you involve your employees in their
own goal-setting process it gives them autonomy and
control over their goals.
 Over time, high performers will become disengaged if they feel
their efforts are not appreciated. You could end up losing them to
competitors if they are not recognized for their hard work.
Furthermore, offering gifts, bonuses, promotions, extra holiday or
being vocal about their hard work in team meetings are all
effective ways to reward high performers. Modern working
Reward environments tend to provide regular feedback, be flexible with
working arrangements and offer competitive salaries to high
High performers and achievers.
Performan
ce
Encourage
Regular
Communicati
on
You really do not want to be known as the manager who is never in
the office or is impossible to get hold of. This is bad news for your
company and can leave your employees feeling demotivated,
disengaged and undervalued. To prevent this from happening, Meet
with your employees on a weekly basis to see how they are doing and
discuss team goals and employee successes. Always leave your
discussions open for any questions your employees may have and
make sure your meetings are always focused, relevant and engaging.
COMMON
PROBLEMS
Many of the problems commonly
associated with performance
management systems are similar to
those that beset any other
organizational initiative, but with
potentially much greater consequences.
 If senior management does not send a message to managers and
supervisors that the process of rating employee performance is a
valuable use of their time, they are likely either to fail to commit the
time or simply to fill out the forms but not engage in the important
discussions with their employees. Unless senior management actively
participates in the process and takes primary responsibility for it,
Lack of managers and employees will remain unsure of its value.

Top
Management
Support
Perception of
the process
as time-
consuming
"busywork"
Without an organizational commitment to the process
and a clear understanding of how it contributes
strategically to the organization's successful
performance, managers will view it as "busywork" of
little value and a waste of time.
Failure to
Communicate
Clear and
Specific Goals
and A manager's specific expectations must be clear for an employee to
be able to implement an agreed-on goal. Goals can direct attention,
Expectations increase persistence and motivate the development of strategies or
plans to attain those goals. Clarifying and discussing the
performance goals for the coming year is a valuable use of a
manager's time and will help avoid miscommunication and surprises.
Follow-up communications can be used to reinforce specific goals
and to serve as reminders to employees about their progress.
Lack
of
Consistency
In most organizations, some managers are perceived as "tough"
and others as "easy." This inconsistency may result in varied
interpretations of an organization's performance rating scale as
applied to employees in different groups. Therefore, HR should
train managers in using the rating system so that inconsistencies
do not occur. Despite training and the best of intentions,
differences in the interpretation and application of the rating scale
are almost inevitable.
Effective Leadership
Behavior: What We
Know and What
Questions Need More
Attention
Hierarchic
al  The hierarchical taxonomy proposed
in this article describes leadership
Behavior behaviors used to influence the
performance of a team, work unit, or
Taxonomy organization
Table 1.
Hierarchical Taxonomy of Leadership Behaviors

Task-oriented Clarifying
Planning
Monitoring operations
Problem solving
Relations-oriented Supporting
Developing
Recognizing
Empowering
Change-oriented Advocating change
Envisioning change
Encouraging innovation
Facilitating collective
learning
External Networking
External monitoring
Representing
 1. Planning - This broadly defined behavior
includes making decisions about objectives and
priorities, organizing work, assigning
responsibilities, scheduling activities, and
allocating resources among different activities.
2. Clarifying - Leaders use clarifying to ensure that
Task- people understand what to do, how to do it, and
the expected results.
Oriented 3. Monitoring - Leaders use monitoring to assess
Behavior whether people are carrying out their assigned
tasks, the work is progressing as planned, and
s tasks are being performed adequately
4. Problem Solving - Leaders use problem solving
to deal with disruptions of normal operations and
member behavior that is illegal, destructive, or
unsafe
 1. Supporting - Leaders use supporting to show
positive regard, build cooperative relationships,
and help people cope with stressful situations.
2. Developing - Leaders use developing to
increase the skills and confidence of work-unit
Relations- members and to facilitate their career
advancement.
Oriented 3. Recognizing - Leaders use praise and other
forms of recognition to show appreciation to
Behaviors others for effective performance, significant
achievements, and important contributions to
the team or organization
4. Empowering - Leaders can empower
subordinates by giving them more autonomy
and influence over decisions about the work
 1. Advocating Change - Explaining why change is
urgently needed is a key leadership behavior in
theories of change management.
2. Envisioning Change - An effective way for
leaders to build commitment to new strategies and
initiatives is to articulate a clear, appealing vision
Change- of what can be attained by the work unit or
organization.
Oriented 3. Encouraging Innovation - There are many ways
Behaviors leaders can encourage, nurture, and facilitate
creative ideas and innovation in a team or
organization.
4. Facilitating Collective Learning - There are
many ways leaders can encourage and facilitate
collective learning of new knowledge relevant for
improving the performance of a group or
organization
 1. Networking - It is important for most leaders
to build and maintain favorable relationships
with peers, superiors, and outsiders who can
provide information, resources, and political
support.
2. External Monitoring - This external behavior
includes analyzing information about relevant
External events and changes in the external
environment and identifying threats and
opportunities for the leader’s group or
organization.
3. Representing - Leaders usually represent
their team or organization in transactions with
superiors, peers, and outsiders (e.g., clients,
suppliers, investors, and joint venture
partners).
Summary and
Recommendations:

The proposed hierarchical

taxonomy facilitates the integration
of important findings in research on
leader behavior constructs and
research about the effects of
specific behaviors on team or
organizational performance.
Managing the Life
Cycle of Virtual
Teams
  Teams are more effective when members
can combine their individual talents, skills,
and experiences via appropriate working
The Life relationships and processes.
Cycle of
Virtual
Project
Teams
  Based on an extensive analysis of
groups located in one place, Tuckman
identified four distinct stages of team
development: forming, storming,
norming, and performing
Tuckman’s
Stage
Model of
Developme
nt
Formin
g
 In co-located teams, face-to-face interactions
during the early stages of a project provide
opportunities for building relationships based
on common interests and permit individuals to
analyze their colleagues’ trustworthiness based
on observation and conversation.
Stormin
g
 As Table 1 notes, past research on co-located
teams suggests that disagreement and
conflict characterize the storming stage of
team development.
  Table 1 shows that in the norming stage of development,
virtual teams work to strengthen relationships, solidify
norms around team processes, and reach consensus
regarding obligations, timetables, and deadlines.

Normin
g
  The performing stage of development requires
that teams effectively collect and share
information, integrate members’ inputs, look
for creative solutions to problems, and prepare
deliverables for outside sponsors.

Performin
g
 Interventions at the Forming Stage
Our findings highlight a degree of
unbounded but perhaps unrealistic
optimism about potential virtual team
success during the forming stage.
 Interventions at the Storming
Stage
Much has been written about the self-
fueling spiral of success or failure
experienced by many types of teams.
 Interventions at the Norming
Stage
Our teams reported that problems with
information gathering, commitment
from some team members, and free
riding by others became more apparent
at the norming stage of development.
 Interventions at the Performing
Stage
As these results suggest, many factors
contribute to virtual project team
effectiveness. We have emphasized
how team processes can contribute to
or detract from team performance.