What is Performance Management?

Summary

In this video, Josh, the founder of HR University, delves into the intricacies of performance management, a critical tool for enhancing employee performance in the workplace. He outlines various appraisal methods, including general appraisal, 360-degree feedback, and self-evaluation, emphasizing their role in setting goals and measuring achievements. Josh also addresses the importance of performance management in identifying employee strengths and weaknesses, and how it aids in making informed managerial decisions. The video concludes by highlighting the benefits and potential drawbacks of performance management systems, encouraging viewers to subscribe for more HR insights.

Takeaways

• 📈 Performance management is a systematic approach to evaluating and enhancing employee performance in the workplace.
• 🎯 It involves setting clear goals for employees, tracking their progress, and providing rewards based on performance.
• 🤝 The process includes various types of appraisals such as general appraisal, 360-degree feedback, and self-evaluation.
• 🛠️ Technological performance appraisal focuses on an employee's technical knowledge and expertise, emphasizing the need for ongoing training.
• 🔍 Employee self-evaluation allows individuals to assess their own performance against set standards, identifying areas for improvement.
• 👨‍💼 Manager performance appraisal is distinct, focusing on the manager's effectiveness rather than the team's performance.
• 📊 Project evaluation reviews assess employees' contributions to projects, influencing future project assignments.
• 📈 Sales performance appraisal is crucial for sales teams, with emphasis on realistic targets and understanding customer needs.
• 🏆 Performance management aims to increase employee accountability and provide a sense of ownership over their work.
• 🤔 It also helps managers identify and address issues causing subpar performance, aligning individual goals with organizational objectives.

Q & A

What is the primary purpose of performance management in the workplace?

The primary purpose of performance management is to help employees improve their performance by setting clear goals, tracking performance, and providing rewards, which in turn can enhance their sense of achievement and contribute to the organization's effectiveness.

How does a performance management system benefit an organization?

A performance management system benefits an organization by enabling it to manage resources more effectively, measure team performance, and provide valuable information for making sound decisions about employee utilization and development.

What are the seven types of performance management mentioned in the script?

The seven types of performance management mentioned are: 1) General appraisal, 2) 360-degree appraisal, 3) Technological performance appraisal, 4) Employee self-evaluation, 5) Manager performance appraisal, 6) Project evaluation, and 7) Sales performance appraisal.

How does the 360-degree appraisal process work?

In a 360-degree appraisal, feedback about an employee's performance and behavior is provided by peers, supervisors, and possibly other members of the business. This comprehensive feedback helps in understanding the employee's performance from multiple perspectives.

What is the significance of technological performance appraisal?

Technological performance appraisal focuses on an employee's technical knowledge and expertise. It involves assessing the employee's capabilities in their technical field and ensuring they are kept up-to-date with periodic training and new technological trends.

Why is employee self-evaluation important in performance management?

Employee self-evaluation is important as it allows employees to assess their own performance against set standards, identify their strengths and weaknesses, and provides a basis for future performance improvement.

How does manager performance appraisal differ from other performance reviews?

Manager performance appraisal differs as it evaluates the manager's performance rather than the team's. It focuses on the manager's ability to lead and the quality of work produced by their team.

What is the role of project evaluation in performance management?

Project evaluation in performance management involves supervisors and managers reviewing each employee's performance on specific projects. This review helps in assigning new projects and setting performance expectations.

Why is setting a realistic sales target important in sales performance appraisal?

Setting a realistic sales target is crucial in sales performance appraisal because it ensures that salespeople have achievable goals, which can motivate them and help in measuring their performance effectively.

What are the four elements of the performance management system?

The four elements of the performance management system are: 1) Performance appraisal, 2) Job analysis, 3) Coaching or supervision, and 4) Development training.

What are some advantages of the performance management system?

Some advantages include documentation of employee performance, creation of a structured feedback system, and setting clear expectations for both managers and employees.

What are the potential drawbacks of the performance management system?

Potential drawbacks include the possibility of creating a negative employee experience, time-consuming processes, and the presence of natural biases from managers.

Outlines

00:00

📈 Introduction to Performance Management

Josh, the founder of HR University and a Certified HR Professional, introduces the concept of performance management in the workplace. He emphasizes the importance of understanding how to improve employee performance through a system that tracks performance, sets clear goals, and rewards achievements. The video aims to cover all critical aspects of performance management, its significance for companies, and different types of performance management in HR, including general appraisal, 360-degree feedback, technological performance appraisal, self-evaluation, manager appraisal, project evaluation, and sales performance appraisal. The process is designed to make employees more accountable and to help managers identify areas for improvement.

05:02

🔍 Deep Dive into Performance Management Systems

This paragraph delves into the performance management system as a framework for evaluating employee performance to identify strengths, weaknesses, and opportunities for improvement. It outlines the four elements of the system: performance appraisal, job analysis, coaching or supervision, and development training. Performance appraisals provide feedback on specific tasks and behaviors, job analysis examines job requirements, coaching and supervision help improve performance, and development planning is a continuous process. The paragraph also discusses the advantages and disadvantages of the performance management system, such as documentation, structured feedback, potential negative experiences, time consumption, and natural biases. The video concludes by encouraging viewers to like and subscribe for more HR-related content.

Keywords

💡Performance Management

Performance management refers to the process of evaluating an organization or a specific job function. It involves setting goals, monitoring and assessing performance, rewarding achievements, and taking corrective actions when necessary. In the video, it is presented as a critical aspect of human resources management, aiming to improve employee performance and align it with organizational objectives. The script emphasizes its importance in tracking performance and providing employees with clear goals to strive for.

💡Goals

Goals in the context of performance management are the targets set for employees to achieve in their work. These are used to guide and measure employee performance. The script mentions that by setting clear goals, employees can strive for them, which in turn can lead to higher performance and rewards. This concept is central to the video's theme of enhancing employee productivity and motivation.

💡Appraisal

Appraisal is the act of evaluating an employee's performance, often through a systematic review process. The video discusses various types of appraisals, including general appraisal, 360-degree appraisal, and self-evaluation. These methods are used to assess employee performance against set standards and to provide feedback for improvement.

💡Human Resources Management (HRM)

HRM is the strategic and comprehensive approach to managing an organization's most valuable assets—its employees. The video script highlights that performance management is a part of HRM, focusing on different types of performance evaluations that can be determined based on the factors included in the appraisal system. HRM is essential for aligning employee performance with business goals.

💡Feedback

Feedback in performance management is the provision of information regarding an employee's performance, often with the intent to improve future performance. The video mentions that feedback can come from peers, supervisors, colleagues, and even customers and investors. It is a crucial part of the performance management process, as it helps employees understand their strengths and areas for improvement.

💡Rewards

Rewards in the context of the video are incentives given to employees for achieving their performance goals. The script suggests that the higher the performance, the more rewards an employee will receive. Rewards are part of the performance management system's strategy to motivate employees and reinforce positive behaviors.

💡Corrective Actions

Corrective actions are steps taken to address performance issues when an employee deviates from the set performance targets. The video script explains that the performance management process includes taking necessary corrective actions, which helps organizations to realign employee performance with organizational goals and standards.

💡Self-Evaluation

Self-evaluation is a process where employees assess their own performance against set standards. The video script describes it as a type of performance management where employees identify their strengths and weaknesses, which can then be used as a basis for future performance improvement. This concept is integral to the video's theme of empowering employees to take ownership of their performance.

💡Manager Performance Appraisal

Manager performance appraisal is a specific type of evaluation that focuses on assessing the performance of managers rather than their teams. The video script explains that this evaluation is distinct because it looks at the manager's ability to lead and the quality of work produced by their team. This is important for ensuring that managers are also held accountable for their performance and contribution to the organization.

💡Development Training

Development training refers to the process of providing employees with the necessary skills and knowledge to improve their performance. The video script mentions that this is a part of the performance management system, where employees are trained with new trends and technologies to keep their knowledge and skills up to date. This is crucial for maintaining a high-performing workforce.

💡Coaching and Supervision

Coaching and supervision are methods used by supervisors to help employees improve their performance. The video script describes these as part of the performance management system, where supervisors provide feedback and guidance to employees to enhance the quality of their work and to learn new skills. This is an essential aspect of supporting employee growth and development within the organization.

Highlights

Performance management is essential for improving employee performance and aligning it with organizational goals.

A performance management system tracks performance, sets clear goals, and measures achievements to reward employees.

The process includes defining goals, monitoring performance, rewarding achievements, and taking corrective actions.

Seven different types of performance management in HR are identified, based on various feedback sources.

General appraisal involves continuous communication between managers and employees about performance throughout the year.

360-degree appraisal provides feedback from peers, managers, and sometimes customers and investors.

Technological performance appraisal focuses on an employee's technical knowledge and expertise.

Employee self-evaluation allows employees to assess their own performance against set standards.

Manager performance appraisal evaluates a manager's leadership and team management skills.

Project evaluation reviews assess employee performance on specific projects and assign new projects based on performance.

Sales performance appraisal is crucial for setting realistic sales targets and providing sales training.

Performance management makes employees more accountable and gives them a say in their job.

It helps managers identify areas where employees are not meeting organizational goals and correct these issues.

Performance management is important for employee development and providing organizations with valuable performance data.

The performance management system is a framework for evaluating employee performance to identify strengths and weaknesses.

The system consists of performance appraisal, job analysis, coaching, and development training.

Performance appraisals provide feedback on specific tasks, skills, abilities, knowledge, or behaviors.

Job analysis examines job requirements to help supervisors and employees understand their responsibilities.

Coaching and supervision help improve work quality and teach new skills.

Development planning is a continuous process that runs alongside other performance management steps.

The performance management system offers benefits like documentation, structured feedback, and clear expectations.

Drawbacks include potential negative employee experiences, time consumption, and natural biases in the evaluation process.

Transcripts

Hey friends, Josh here, founder of HR University and Certified HR Professional,

and in this video we'll be covering performance management to give you a

clear understanding of what it is and how it relates to the workplace Today.

If you want to get more out of your employees, you need to know how to

help them improve their performance.

A performance management system allows you to manage your.

By tracking performance and giving employees clear goals that they

can strive for in their work.

The more the employees strive for their goals, the higher their

performance will be and the more rewards that they'll receive.

This allows you to measure the performance of your team and give

your employees a sense of achievement.

And in this video we'll be covering all the critical aspects about

performance management and why it's important for companies and businesses.

In the meantime, don't forget to subscribe to a channel so you

can keep up to date with everyth.

Hr now let's go ahead and jump in.

So what is performance management?

Well, performance management is the process of evaluating an organization

or a specific job function.

It is a process to define set goals and objectives, monitor and assess

performance, reward performance, and take necessary corrective

actions when there is a devi.

From the performance target, the performance management process

provides information and tools that enable organizations to be more

effective in managing their resources.

It focuses on the performance of employees and organizations, and

there are seven different types of performance management in hrm.

Or human resources management and the types of performances are determined

based on the furnaces included in the appraisal or review system.

It can range from an employee's self-evaluation to feedback from

other members of the business, such as supervisors and colleagues, and can even

include customer and investor feedback.

The first type is general appraisal.

This kind of performance management involves constant

communication between the.

And the employee throughout the year about the performance.

They communicate about the predetermined goals, objectives, and performance

reviews, as well as setting new targets.

The second type is 360 degree appraisal.

In this type of performance management, the feedback about the performance and

behavior of the employee is provided by peers and the manager of the.

It is possible that the manager also provides some additional information about

the behavior of the employee, but is not the same as feedback from the peer group.

The peer group gives opinion to the employee based on observation

of the behavior of the employee during a certain period of time.

And the third type is technological performance appraisal.

This appraisal.

Totally based on the technical knowledge of the employee, the technical expertise

and capabilities of the employee are throughput and identified by the manager.

Technical knowledge should be maintained by the manager through periodic training,

and the employee should be trained with new trends and technologies to

keep their knowledge and skills at par.

And the fourth type is employee self evaluat.

Employees evaluate their own performance by comparing their

performance with standard set for them.

The evaluation is used to identify strengths and weaknesses in the employee's

performance and to provide a basis for future performance improvement.

And the fifth type is manager performance appraisal.

This evaluation process is different.

From the performance reviews because it evaluates the manager's performance,

not the team's performance, and the performance of a team is evaluated by

the quality of the work that is produced.

And the six type of performance management is project evaluation

review and the project evaluation.

Review process.

Supervisors and managers evaluate employees.

Each employee's performance is then reviewed by supervisor and manager, and

based on this review, new projects are assigned to the employee, and the last

type is sales performance appraisal.

In this system, it's important to set a realistic sales target for the employee.

A salesperson should be given proper training.

In order to understand the product line and customer requirements, they

should be provided with appropriate sales aids like brochures and catalogs.

The salesperson needs to make effective use of sales aids during

the presentation of the product to the customer, and the process of performance

management is designed to make.

Employees more accountable to the company, which in turn allows employees to feel

like they have a say in their job.

It also helps managers find ways to improve employee performance

and performance management includes analyzing performance and

identifying problems that may cause unsatisfactory employee performance.

For example, the valuation process helps identify areas in which employees

are not meeting organizational goals and provides guidelines on

how these problems can be corrected.

Performance management is important for two reasons.

First, it provides employees with an opportunity to learn about

their own strengths and weaknesses and develop the skills necessary

to become better employees.

Second, it provides organizations with valuable information.

About how their employees are performing.

This helps managers make sound decisions about how to use an employee's time

and money and performance management can be used by organizations to

evaluate employees based on a variety of criteria, including individual job

performance organizational objectives.

And the performance management system is a framework for evaluating

the employee performance in order to identify strengths, weaknesses,

and opportunities for improvement.

The performance management system is a set of procedures and tools

that are designed to help managers determine an employees performance.

The four elements of the performance management system

are performance, appraisal, job analysis, coaching, or supervision.

And the last one is development training.

Performance appraisals provide feedback about an employee's

performance on specific tasks, skills, abilities, knowledge or behaviors.

Job analysis consists of an examination of the job and an

analysis of the requirements of the.

This enables supervisors and employees to understand their own responsibilities

and those of others in the workplace coaching and supervision help employees

perform better by providing them with feedback on their performance.

Supervisors must coach their employees to improve the quality of

their work and to learn new skills.

And development planning is a continuous process that's continued

along with other steps of the process.

Now let's talk about some of the significant advantages and disadvantages

of the performance management system.

The first major benefit is a documentation of everything related

to performance of an employee.

It can generate a performance graph in the future to make better.

Another significant benefit is that it creates a proper structure and feedback

system between manager and employee.

We can all set clear expectations and plan ahead using performance management system.

Now let's talk about some of the most significant drawbacks of this system.

The performance management system can create a negative employee experience.

The feedback is not conveyed in a proper manner.

The process is also time consuming and can take a lot of energy and time of the.

Another drawback is natural biases.

Managers are responsible for multiple steps in the performance management

system, so there's a natural bias on their part, and there we have it.

We just want over what is performance management and why it matters.

If you learn from this video and you feel like you have a better idea

of what performance management is, then make sure to go ahead and light

this video and subscribe to our channel so you can keep up to date.

All the different HR topics that we cover, and I'll go ahead and see

you on some of our following videos.

Cheers.