MODULE 1 To upload_a2d55546fb5e8060631ebbd0d2ee9b75.pptx

Document Details

DesirousGravity

Uploaded by DesirousGravity

Rajagiri College of Social Sciences

Tags

performance management career development organizational behavior

Full Transcript

Performance Management & Career Development DR ARATHI KRISHNA 1 Course Objectives CO1 The student shall be able to identify a problem in an organisational situation CO2 The student shall be able to study and evaluate the Preformance Management Sy...

Performance Management & Career Development DR ARATHI KRISHNA 1 Course Objectives CO1 The student shall be able to identify a problem in an organisational situation CO2 The student shall be able to study and evaluate the Preformance Management System of a chosen organisation CO3 The student shall be able to appreciate an article that deals with Performance Management and relate practice with theory. 2 Grading Structure Tool for Sl. No. Evaluation tool Marks CO Assessed Measurement 1 CAE 1 - Class Based 12 2 CAE 2 - Centralised 12 CO 1 EQ 3 End Semester 60 4 Individual Assignment 8 CO 2 Rubrics 5 Article Review 8 CO 3 Marks 3 "1. Individual Assignment : Prepare a report on the Performance Management Sytems of an organisation of the student's choice(2b). 2. Article Review : Source an article on Performance Managment and give a detailed review." 4 Assignment Schedule Date / Due Date/ Sl.No. Session Assignment/Presentation Session July 1. Individual Assignment : Prepare a report on the 10th Performance Management Sytems of an organisation September 2024 of the student's choice(2b). 15th 2024 July 10th 2. Article Review : Source an article on Performance September 2024 Managment and give a detailed review. 30th 2024 5 MODULE 1 Definition, Purpose, Mission, Vision, Goals, Objectives, Targets and Outcomes, Standard Performance and Output; Key Performance Areas and Key Result Areas Operational Effectiveness; Productivity Frontier; Importance of Planning; Planning Horizons; Scientific Management and Human Relations Management roots of the quest for Performance; Performance Management as a Planning and Control System. 6 SESSION 1 Definition Purpose, Mission, Vision, Goals, Objectives, Targets and Outcomes, Standard Performance and Output; Key Performance Areas Key Result Areas 7 Why measure organisational Performance? Need for Continuous Improvement Key Business Results Importance of Measurement Role of Executives https://www.youtube.com/watch?v=mhz3Q3ovM5s 8 PERFORMANCE Performance refers to an employee's ability and behavior to achieve their job objectives and contribute to the organization's goals. 9 Organization's Big Picture 10 Vision Statement: Outlines the organization's aspirations for the future. Mission Statement: Defines the organization's core purpose and reason for existence. 11 Strategies- organisation’s plan for growing the business. 12 Started with the Organization's Big Picture Analyze Departmental and Team Goals Leverage Align Job Objectives with Performance Departmental/Team Goals and Management Organizational Strategy: System13 EXAMPLE: Organization Mission: Provide innovative educational solutions for students. Departmental Goal: Increase online course enrollment by 20% in the next year. Job Role: Marketing Specialist (Online Courses) Job Objective: Develop and implement a social media marketing campaign to increase awareness of online courses by 15% within 3 months. 14 YOU CAN’T STOP HERE!!! 15 “You can't manage what you don't measure”- Peter Drucker. 16 By what percentage did the awareness of online courses increase within 3 months? What was the engagement rate (likes, shares, comments per post) of the social media marketing campaign? How many leads were generated from the social media marketing campaign? What was the conversion rate of leads generated from the social media campaign into actual enrollments? How many new enrollments in online courses were directly attributed to the social media marketing campaign? PERFORMANCE METRICS 17 DEVELOP EMPLOYEES 18 Definition of PM A continuous process of … Identifying Measuring Developing … the performance of individuals and teams Aligning performance with the strategic goals of the organization …is “the systematic description of an employee’s strengths and weaknesses.” 19 20 JOB DESCRIPTION Systematic process: Job descriptions involve collecting, analyzing, and documenting key job facts. Benefits: 1) Strategic alignment: Translate the organization's vision and mission into actionable goals. 2) Recruitment: Attract and hire the right talent through clear job profiles. 3) Performance management: Set clear performance standards based on job duties. Facilitate development plans to enhance skills and knowledge. Benchmark performance against industry best practices. 4) Job clarity: Establish a shared understanding of job responsibilities and identity. 21 Key Elements of a Well- Structured Job Description Job title: Clearly identifies the position. Job summary: Provides a concise overview of the role and its purpose. Responsibilities and duties: Outlines the key tasks and activities involved. Qualifications: Specifies the required skills, knowledge, and experience. Working conditions: Describes the physical and environmental aspects of the job. 22 Standards of Performance Documented guidelines that define excellent performance for a specific job. Serve as a benchmark for measuring and evaluating employee performance. Ideally, performance standards are developed collaboratively Setting Performance Standards- Job description, Industry standards, Benchmarks Benefits- improved performance, motivation, fair and objective evaluation 23 Key Result Area Job description (JD) will not mirror precisely the exact responsibilities. JD- Starting point KRA – Key Result Areas- where the individual is supposed to concentrate her attention to deliver the results. KPI- Key Performance Indicators- How the performance in the specified area should be measured. 24 BIG ROCKS- KRA- Key Job Responsibilities How do you evaluate the performance of a mathematician? What are the big rocks in your job? Big rocks- Most important elements/ responsibilities of the job. E.g., Create numerical algorithms; Analyse and resolve numerical algorithms, write software, Maintain relationships with universities 25 BIG ROCKS- KRA- Key Job Responsibilities Dick Grote is an author, consultant, and expert in the field of performance management and employee relations. Here are some key details about him: He is the president of Grote Consulting Corporation, a management consulting firm focused on performance management, employee relations, and legal compliance. He has authored several influential books on performance management, including: "Discipline Without Punishment" (1995) "Forced Ranking: Making Performance Management Work" (2005) "How to Be Good at Performance 26 Appraisals" (2011) KRA Awarenes s& Only a few numbers of KRAs Expectati on Each is independent of the others Simple statements- Verb+Noun High- Gives no information on quality or quantity payoff activities Salesman Driver Acquire new business Drive bus Sell product Greet students and parents Manage territory Ensure bus maintenance Excellen Generate leads Control student behavior ce File reports 27 How do we measure successful performance? KPI 4 measures of output- Quality, Quantity, Cost and Timeliness Quantitative or qualitative measures Use descriptive measures and examples, not numbers, to measure the quality of an individual’s performance. E.g. Describe how well a person performed his job. Don’t focus excessively on finding numeric quantitative performance measures 28 PRACTICAL APPLICATIONS Nike's KPI Shift Moved from financial metrics to customer-centric measures Rationale for Change Incentivize workforce to prioritize: Building deeper consumer relationships Increasing brand loyalty Not just chasing short-term sales numbers By 2020, 50% of executive compensation tied to new customer metrics Previously tied to only financial KPIs 29 PRACTICAL APPLICATIONS Benefits of Customer-Centric KPIs Encourage customer experience focus Build long-term brand loyalty Prioritize deeper consumer relationships Align workforce incentives with strategic goals 30 PRACTICAL APPLICATIONS Net Promoter Score (NPS) - Measuring customer loyalty and likelihood to recommend Nike products. Members buying across categories - Monitoring how many members purchase across different Nike product lines. Social media sentiment - Measuring positive/negative customer sentiment across social platforms. 31 NPS Question "On a scale of 0 to 10, how likely are you to recommend [company/product/service] to a friend or colleague?" Respondent Categories Promoters (9-10 rating): Loyal enthusiasts, positive word-of- mouth Passives (7-8 rating): Satisfied but indifferent, vulnerable Detractors (0-6 rating): Unhappy customers, negative word-of- mouth NPS Calculation % Promoters - % Detractors Range: -100 (all detractors) to +100 (all promoters) Example 25% Promoters, 60% Passives, 15% Detractors NPS = 25% - 15% = 10 32 Performance appraisal PA is an activity employed to assess the performance of employees for a predetermined duration on a set of parameters. Assess strengths and weaknesses Once a year/ Biannually measuring IDEALLY Clear and specific Given regularly, not just once a year Focused on both strengths and areas to improve 33 Feedback Feedback is what we think of their performance and how they should do it better. Theory of the source of truth Like filling up an empty vessel- theory of learning Great performance is universal, analyzable and describable- Theory of excellence 34 Performance development Regular, constructive feedback and coaching Individualized development plans- create tailored plans Learning opportunities Goal alignment Measurement and accountability 35 Operational Effectiveness vs. Strategy Operational effectiveness: Doing things better. Strategy: Being different. Professor Michael Porter popularized the distinction between operational effectiveness and strategy. 36 Importance of Operational Effectiveness Operational effectiveness is crucial but not sufficient for corporate success. It's about being efficient and making fewer mistakes. 37 Measuring Operational Effectiveness Productivity (output per hour) Quality (defect rates) Customer satisfaction scores Inventory turnover 38 Challenge of Operational Effectiveness Other companies can copy good ideas quickly. If all fast-food restaurants learn to make burgers the same way, how can one stand out?" 39 Buffett's Parade Story Imagine you're at a parade. You want to see better, so you stand on your toes... Everyone else starts doing the same. In the end, nobody can see any better, and everyone is tired. 40 Lessons from the Parade Story Copying happens fast. The trick works the same for everyone. Is making your business run better really like standing on tiptoes at a parade?" 41 Real-World Example: Toyota Toyota Production System Reduces waste Improves quality Involves employees in problem-solving Helped Toyota set a benchmark in the automotive industry Fewer defects and at lower cost 42 Transition to Strategy Operational effectiveness alone isn't enough for long- term success. Competitors can often copy best practices. 43 Strategic Positioning Strategic Positioning: Like a clothing store that sells only eco-friendly clothes. This makes them special. 44 The Productivity Frontier Imagine a line that shows the best a company can do right now. Companies try to reach this line by improving. Really successful ones find ways to move the line itself! 45 46 Neutrogena Case Study Neutrogena made their soap special by being 'pH balanced Sold only in drugstores. Informed doctors and advertised in medical magazines. Differentiation strategy 47 Combining Both Approaches Good companies need to do things well and be different. Think about Apple: great products and innovation. 48 Intel's Journey Leading producer of memory chips Initially outcompeted by Japanese firms. Adopted modern management practices. Eventually became a highly efficient, low-cost producer. 49 Intel's Journey Craig Barrett, Intel's manufacturing czar at the time and future CEO, remembers, "We were unpredictable. We were not cost competitive. We were not manufacturing competitive, and the realization was that we needed to do things differently." 50 Operational Effectiveness & Strategy Operational effectiveness and strategy are intertwined. Consider initiatives' potential to raise WTP 51 Local Business Examples Think of ways local businesses try to be better or different. Discuss how everything in a company works together, known as 'Fit’.” 52 The Productivity Frontier A line representing the maximum value a company can deliver at a given cost. Companies strive to move towards this line. 53 Critical Thinking What happens when a company reaches the frontier? Can they improve further? How? 54 Benchmarking and Innovation Pushing the Frontier Benchmarking: Comparing your performance to the best in the industry. Innovation or new technologies needed to go beyond the current frontier. 55 Case Study: Amazon Delivery speeds (from weeks to same-day) Product variety (from books to almost everything) Customer service (easy returns, personalized recommendations)" 56 Planning 1. Strategic Planning: The big picture, long-term direction 2. Operational Planning: Day-to-day activities to achieve strategic goals Setting Goals Resource Allocation Risk Management Performance Monitoring 57 Planning Horizons Short-term (up to 1 year): Immediate actions and results. Medium-term (1-3 years): Bridging current actions with future goals. Long-term (3-5 years or more): Vision and major strategic moves. 58 Group Activity In groups, create a plan for each time horizon for a well- known company. Explain how these plans work together. 59 Final Reflection How can a company maintain its competitive advantage if operational effectiveness can be easily copied? In what situations might pursuing operational effectiveness harm strategic positioning? How might emerging technologies shift the productivity frontier? How can a company ensure short-term plans align with long-term vision? 60 Conclusion Successful companies excel in both operational effectiveness and strategic positioning. Consider how everything fits together for long-term success. 61 Evolution of Performance Management Embark on a journey through time How businesses align employee performance with organisational goals Crucial for understanding productivity and motivation 62 The Foundations: Scientific Management In the old management system, success depended almost entirely on the "initiative" of the workmen. "initiative“ - hard work, good will, and ingenuity Inconsistency- inefficiency and unpredictable productivity 63 Frederick Winslow Taylor Theory of Scientific Management AIM: Improve worker productivity and efficiency through systematic study and optimization of work processes. Worker Initiative- Uniformity Structured and scientific approach 64 Scientific principles 1. Replacing Rule-of-Thumb with Science Traditional approach: Work based on experience and guesswork ("rule-of-thumb"). Scientific Management: Develop a scientific method for each task. Analyze tasks to find the most efficient way to perform them. 65 2. Selecting and Developing the Workforce Old method: Workers choose their tasks and train themselves. Scientific Management: Scientifically select workers based on their skills and abilities. Provide proper training and development to optimize worker performance. 3. Cooperation is Key Management and workers must work together for success. Ensure all work follows the established scientific principles. Open communication and collaboration are crucial. 66 4. Sharing the Workload and Responsibility New division of labor: Management takes on tasks better suited for their expertise (planning, analysis etc.). Workers focus on executing tasks efficiently using the developed methods. This shift empowers workers and increases overall efficiency. 67 Task Idea Most prominent element in modern scientific management Planned at least one day in advance Complete written instructions detailing the task What, How and When Require good and careful work – No health issue 68 Wage-linked performance Piece Rate System: To incentivize faster work- Paid based on the number of units they produced, not just the time "Fair Day's Pay": "fair day's pay for a fair day's work." The idea was that if a worker achieved a specific, scientifically determined output level (the "fair day's work"), they would receive a higher than average wage. Complete on time- a wage increase of 30 to 100 percent. 69 Scientific Management - Efficiency and Optimization: Tasks are broken down into manageable components, increasing efficiency. - Standardization: Ensures consistency and predictability in task completion. - Selection and Training: Selecting the right workers and providing necessary training for optimal performance. Criticisms Worker Exploitation- Prioritizing speed over worker well- being. Unhealthy limits to earn more or the pressure to meet quotas could lead to poor quality work. De-skilling: Since the "one best way" to perform tasks was dictated by management, workers had less autonomy and opportunity to use their skills and creativity. Labor Unrest: The focus on individual output downplayed teamwork and worker satisfaction, leading to labor unrest and the rise of unions. 71 The Pig Iron Challenge Activity Form groups of 4-5Task: Transfer as many marbles as possible from a bag to a container in 30 seconds, one marble at a time Analyze process and identify efficiency improvements Re-attempt task with optimized method and workspace Key Learning: Scientific management principles to enhance productivity 72 Analyse How did you approach the task? Did anyone in your group emerge as faster or more efficient? Study the movements of the most efficient person and train everyone to use that method. 73 Case Study: Bethlehem Steel Context: Late 1890s, handling pig iron efficiently during Spanish War Initial state: 75 men handling 12½ long tons per man per day Scientific management implementation by Frederick Taylor Selection of workers, training, and strict guidance Results: Productivity increased to 47 tons per man per day, wages increased by 60% Criticisms: Dehumanization, intense work pace, long- term effects on health and satisfaction 74 Human Relations Approach (pioneered by Elton Mayo, Fritz Roethlisberger, and others): Emphasis on Social Needs: Recognizes social and psychological factors impacting worker performance. Informal Groups: Acknowledges the influence of informal work groups on employee behavior. Motivation Beyond Money: Workers are motivated by more than just wages (recognition, good working conditions). Improved Communication: Encourages open communication between managers and employees. Focus on Employee Well-being: Prioritizes employee satisfaction and well-being for increased productivity. 75 Balancing Efficiency and Well-being Regulating Work Pace for Employee Growth and Prosperity Regulating the work pace ensures that well-suited workmen can thrive, grow happier, and become more prosperous over time. This approach balances principles from scientific management and human relations. Benefits of Regulating Work Pace - Enhanced Productivity: Achieving higher productivity without overburdening employees. - Consistency and Quality: Ensuring work is performed consistently, leading to better quality. - Employee Satisfaction: Maintaining a steady work pace increases job satisfaction. - Sustainable Growth: Supports long-term employee growth and career advancement. The Rise of Pay for Performance (P4P) Emergence in the late 1970s with agency theory Agency theory focuses on aligning the interests of corporate directors and executives (the agents) with shareholders (the principals). The theory assumes that agents are self-interested and need incentives to align their interests with those of principals. Shift towards performance-based incentives Changes in US tax law in 1993 promoting performance-based pay Expansion of P4P to all organizational levels Challenges: Implementing P4P in jobs without clear performance measures 79 Activity: Designing a P4P System Form groups of 3-4 Task: Design a P4P system for a mid-sized software company Considerations: Metrics for performance, structure of rewards, ensuring fairness and motivation Discussion of proposed systems 80 Metrics for Performance: How will you measure employee contributions? Here are some examples you can consider, but don't be limited by them:Individual: Code quality, number of bugs fixed, lines of code written (for developers). Customer satisfaction ratings, proposals submitted (for sales). Team-based: Meeting project deadlines, team member satisfaction ratings. Company-wide: Customer satisfaction, revenue growth, product quality metrics. 81 Structure of Rewards: What types of rewards will be offered to incentivize performance? This could include:Financial: Bonuses, profit sharing, commissions. Recognition: Public recognition, awards, extra vacation days. Development: Training opportunities, conference attendance, mentorship programs. 82 Ensuring Fairness and Motivation: How will you design a system that is perceived as fair and motivating for employees? Here are some tips: Transparency: Clearly communicate how performance is measured and how rewards are allocated. Alignment: Ensure metrics and rewards are aligned with the company's strategic goals. Attainability: Set goals that are challenging but achievable to avoid discouraging employees. Balance: Consider both individual and team-based metrics to encourage collaboration. Flexibility: The system should accommodate different roles and departments within the software company. 83 The Marriage of Performance Management and Rewards Integration of PM and rewards systems Challenges: Short-term thinking, Negative impact on morale and collaboration, Ensuring fairness Stagnation in PM systems over 40 years 84 Impact PM affects every employee and manager in an organization. Millions of hours and billions of dollars spent annually Ineffective PM can drag down workforce morale and organizational productivity. 85 Fundamental Rethinking of Performance Management. This rethinking involves questioning the underlying assumptions about PM and reward systems. It requires what's known as double-loop learning: not just trying new solutions when one fails, but questioning the fundamental beliefs and approaches that have shaped PM practices. 86 Rethinking Performance Management: Towards Enabling Control Moving from what's known as coercive control to enabling control. Coercive control involves hierarchy, chain of command, written policies, centralization, and formalization. It limits employee action rigidly and often lacks flexibility and transparency. Traditional PM and rewards systems often fall into this category of coercive control. 87 Use objectives, evaluations, and extrinsic rewards to align employee actions with company goals. Coercive control is outdated and ill-suited for modern organizations. Modern organizations face different environments and challenges compared to the industrial era. Knowledge work, technology, digital transformation, and non-traditional work arrangements require new approaches to control. 88 Enabling control mechanisms Use a lighter touch, providing support, guidance, and assistance. More informal and rely more on intrinsic motivation. Enabling control allows flexibility for employees to adapt to changing conditions. Provides transparency about the larger context and logic of work systems. Empowering Performance: Control Through Purpose, Belonging & Autonomy 89 Purposeful Performance Management Prioritize Goals: Focus on setting clear and inspiring goals. Direction and Inspiration: Goals should guide and motivate employees. Progress, not Perfection: Evaluate progress towards goals, not just achievement. Feedback for Growth: Provide constructive feedback to help employees move forward. 90 Building Belonging The Human Need for Connection: Employees crave a sense of belonging. Team-Centric Approach: Integrate team planning with overall strategy. Aligning Goals: Set individual goals within the context of team objectives. Rewarding Collaboration: Shift rewards to recognize team and company achievements. 91 Empowering Through Autonomy Increased Engagement with Control: Employees thrive with freedom to manage their work. Trust and Ownership: Granting autonomy fosters trust and responsibility. Improved Performance: Empowered employees are more motivated and productive. Autonomy helps employees view rules and policies as supportive rather than restrictive. 92 The Future of Performance Management The trend towards more flexible, employee-centric PM systems is likely to continue. Employees will have more say in goal setting and development plans. PM will become more focused on continuous learning and growth. 93 We may see a further shift away from annual reviews towards more frequent, informal check-ins. Regular check-ins allow for more timely feedback and course correction. Informal conversations create a more open and collaborative environment. 94 Technology will play an increasingly important role, with AI and data analytics potentially offering new insights into performance and development needs. AI can automate tasks and provide data-driven insights. Data analytics can help identify trends and patterns in performance data. 95 There may be a greater emphasis on team performance and collaboration metrics, reflecting the increasingly interconnected nature of work. Team-based goals foster a sense of shared responsibility and collaboration. Collaboration metrics can help identify areas where teamwork can be improved. 96 The focus may shift from backward-looking evaluations to forward-looking development plans. Development plans should be tailored to individual needs and goals. PM should support continuous learning and skill development. 97 Organizations may experiment with new approaches to compensation that are less directly tied to individual performance metrics. Focus on rewarding skills, behaviors, and contributions that align with organizational goals. Compensation could be more team-based or performance-sharing oriented. 98 THANK YOU 99

Use Quizgecko on...
Browser
Browser