01_Handout_1(12).docx

INTRODUCTION TO PERFORMANCE MANAGEMENT ====================================== 1. **Continuous process** *--* Performance management involves a never-ending process of setting goals and objectives, observing performance, coaching, and feedback. 2. **Alignment with strategic goals** *--* P...

INTRODUCTION TO PERFORMANCE MANAGEMENT ====================================== 1. **Continuous process** *--* Performance management involves a never-ending process of setting goals and objectives, observing performance, coaching, and feedback. 2. **Alignment with strategic goals** *--* Performance management requires that managers link employees' activities and outputs with the organization's goals. This helps the organization gain a competitive advantage since alignment of individual and team performance toward organizational goals, enables efficient and effective operations that ultimately lead to growth and success. 1. Connecting the behaviors and results produced by employees to the organization's strategic priorities; 2. Making fair and appropriate administrative decisions such as promotions, salary adjustments, and terminations; 3. Informing employees about how they are doing and providing them with information on specific areas that need improvement; 4. Giving employees information on expectations of peers, supervisors, customers, and the organization, and what aspects of work are most important; 5. Giving employees information about themselves that can help them with their career paths; 6. Identifying the organization's high-potential and star performing employees; 7. Anticipating when the organization needs to hire people and with what particular skill set; and 8. Evaluating the effectiveness of Human Resources initiatives. Performance Management vs. Performance Appraisal ================================================ **Performance Appraisal** --------------------------------------- -------------------------------------------- Driven by the line manager Driven by the Human Resource (HR) function Ongoing feedback Once a year feedback Emphasis on past, present, and future Emphasis mostly on past Performance Management in Today's Reality ========================================= Cloud Computing =============== Local Norms =========== Generational Differences ======================== 1. **Communication Skills** -- Baby Boomers, who were born in 1946 to 1964, were perceived as more \"reserved,\" while Generation Y, those who were born in 1981 to 1996 (often called Millennials), and Generation Z, those who were born in 1997 to 2012, tend to favor more \"collaborative\" and \"in- person\" means of interacting. This is consistent with other studies showing that younger generations, overall, relate far better to a coaching style of management than to a more traditional top-down authoritative approach. 2. **Adapting to Change** -- Generation X, those who were born from 1965 to 1980, and Generation Y, often view change \"as a vehicle for new opportunities,\" according to the study, while Generation Z simply \"is accustomed to change and expects it in the workplace.\" 3. **Technical Skills** -- The research examined employee-development-related methods, and found, as one would expect, that Boomers and Gen X liked to learn via \"traditional instructor-led courses or self- learning tools,\" while millennials preferred \"collaborative and technology-centric\" vehicles. Exactly what would be expected given the current omnipresent relationship with technology and the value placed on personal coaching. 1. **Don\'t overthink it** -- Start with the understanding that everyone wants to do a good job and help the company. This commonality lays a strong foundation for relationship-building. 2. **Customize your style** -- Staff possess common attributes, but they also have individual needs. Tailor your management to each person\'s strengths, personality, and aspirations. 3. **Go off-site** -- Host team-building events outside the office to give employees a chance to get to know each other in a different setting. 4. **Let newer professionals take the lead** -- Institute reverse mentorships, where less-seasoned staff advise and share their insights with veteran colleagues. Also, invite team members from all generations to share their unique areas of expertise. 5. **Mix and match project teams** -- Put together groups with complementary skills and diverse perspectives. This can prompt innovation and new problem-solving techniques. 1. **Establishing Prerequisites** -- There are two (2) important prerequisites that must exist before the implementation of a successful performance management system. First, there is a need to know the organization's mission and strategic goals. Second, there is a need to know the position in question: what tasks need to be done, how they should be done, and what knowledge, skills, and abilities (KSAs) are needed. a. **Strategic Planning** -- The first prerequisite which allows an organization to define its purpose, vision, goals, and strategies. Goals must be established to support the company's mission and objectives. All these must be communicated to the members of the company to ensure alignment of goals across the organization. The same process applies to large, small, and medium-sized organizations. b. **Work Analysis** -- The second important prerequisite before a performance management system (PMS) is implemented to understand the job in question. This is done through what is called a *work analysis*, which is a process for determining the key components of a particular job, including activities, tasks, products, services, and processes. - **Knowledge** -- Includes having the information needed to perform the work, but not necessarily having done it earlier. - **Skills** -- Refer to required attributes that are usually acquired by having done the work in the past. - **Abilities** -- Refer to having the physical, emotional, intellectual, and psychological aptitude to perform the work. Abilities do not necessarily require being trained or having a past work experience for the job. 3. Prepare and submit a timely and accurate financial statement. - **Disbursement Preparation** 1. Review disbursement request to determine the completeness of required documentation before processing; 2. Prepare Accounts Payable Vouchers (APVs) and checks and transmit them to SAG for validation; 3. Prepare Certificate of Creditable Withholding Tax; - **Payroll Processing and Reports Preparation** 4. Review timesheets, approved leave and Official Business (OB) forms of staff and faculty; 5. Compute and prepare payroll supported by the Payroll Register, Bank Debit Advice, PayCheck and Payslip; - **Advances of Employees** 6. Review liquidation report and submit the same to SAG for validation; 7. Real-time update and consistent follow-ups of liquidations; 8. Non-issuance of further cheques for those with unliquidated advances; - **Government Report** 9. Compute, submit and remit correct government remittances such as SSS, Pag-ibig, PhilHealth and withholding taxes; 10. Prepare a summary report of all government remittances. - **Budget Management** 11. Prepare and submit monthly Budget Monitoring Report to SMG; 12. Assist in the preparation of the annual budget. - **Cash Reporting** 13. Review Monthly Revenue Reporting Package (MRRP) prepared by Cashier;Conduct daily cash count; surprise cash count of undeposited collections and petty cash fund; 14. Check and review collection report (Daily Operating Report vs OR proof list) if there are variances; 15. Prepare daily cash position report; 16. Check collections to be deposited to the bank and compare it with bank validated deposit slip reflected in the passbook;Prepare monthly bank reconciliation statements. - **Records Management** 17. Update and maintain all financial records for 3 years after the deadline of filing the Corporate Annual Income Tax; 18. Keep records of all journal vouchers, government reports, books of accounts, and other important documents for the last 10 years and ensure they are properly stored and labeled for future references and Bureau of Internal Revenue (BIR) audit. How is work analysis done? ========================== -- -- -- -- 2. **Performance Planning** -- After knowing the organization's strategic goals and obtaining information about the position, the supervisor and the employee formally meet to discuss and agree upon what needs to be done and how it should be done. c. **Results** -- These refer to the outcomes or products of what the employees do. Consideration of results includes the key accountabilities or broad areas of a job for which the employee is responsible for producing results. This information is typically obtained from the job description. A discussion of results also includes specific objectives that the employee will achieve as part of each accountability. Objectives are specific statements of important and measurable outcomes. d. **Behaviors** -- These refer to how a job is done, thus constitute an important component of the planning phase. This is probably why results from a survey indicated that in addition to sales figures, salespeople would like to be appraised on such behavioral key performance indicators (KPIs) like communications skills and product knowledge. A consideration of behaviors includes discussing competencies, which are measurable clusters of KSAs that are critical in determining how results will be achieved. Examples of competencies are customer service, written or oral communication, creative thinking, and dependability. 3. **Performance Execution** -- After the planning cycle begins, the employee strives to produce the results and display the behaviors agreed upon earlier, as well as to work on developmental needs. In this stage, it is needed that the following success factors for employees should be present: e. **Commitment to goal achievement** -- The employees must be committed to the goals that were set. It can be achieved by allowing them to be active participants in the process of setting their goals. f. **Check-ins and performance touchpoints** -- The employees have performance touchpoints with many people inside and outside of the organization on an ongoing basis. Thus, they should not wait until the review cycle is over to solicit performance feedback in the form of check-ins. Although supervisors and others with whom the employee has performance touchpoints (for example, team members) can provide performance feedback, generally, they are busy with multiple obligations. The burden, therefore, is on the employee to communicate openly and regularly via ongoing check-ins with his/her performance touchpoints. g. **Collecting and sharing performance data** -- The employees should provide their supervisors with regular updates on progress toward goal achievement, in terms of both behaviors and results. h. **Preparing for performance reviews** -- The employees should not wait until the end of the review cycle for the review. They should engage in an ongoing and realistic self-appraisal so that immediate corrective action can be taken, if necessary. The usefulness of the self-appraisal 4. **Performance Assessment** -- In this stage, both the employee and the manager are responsible for evaluating the extent to which the desired behaviors have been displayed, and whether the desired results have been achieved. Both the employee and the manager must take ownership of the assessment process. The employee evaluates his performance, and so does the manager. The fact that both parties are involved in the assessment provides good information to be used in the review phase and the future. 5. **Performance Review** -- This stage involves a formal meeting between the employee and the manager to review their assessment. The meeting is usually called the performance review or appraisal meeting. However, despite its importance in performance management, the appraisal meeting is often regarded as the Achilles' heel of the entire process. The reason is that many managers are uncomfortable providing performance feedback, particularly when performance is deficient. This high level of discomfort, which often translates into anxiety and trying to avoid the appraisal interview, can be mitigated through training those responsible for providing feedback. References: ===========