Page 12 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Unit 1: Introduction to Performance Management

10. The supervisor should be evaluated on the successful administration of the plan and Notes
ongoing performance management responsibilities.
11. Training for supervisors and employees is encouraged and will be provided by University
Human Resource Services.

Note Ten Top Performance Management Tips
1. Talk to your people often in order to head-start performance management of your
people
2. Keep formal discussions friendly and simple
3. Be very positive and do not spend extended time on the weaknesses of employees
4. Help employees achieve their needs
5. Build feedback in as a natural activity
6. Be honest in a working relationship for everyone’s benefi t
7. Remember that performance management is not an instrument to manage
indiscipline
8. Notice great performance and celebrate successes
9. Have a uncomplicated and time-bound system of performance management
10. Learn from mistakes
Source: Mitu Maheshwari, May 2007, Business Manager.

1.6 Performance Appraisal to Performance Management

The contemporary organizations are undergoing a transformation for coping against the changing
needs of the environment and excelling in the business by building up their adaptive capabilities
for managing change proactively. The traditional performance appraisal system did not suffi ce
the needs of the changing scenario as it was mainly used as a tool for employee evaluation in
which the managers were impelled to make subjective judgments about the performance and
behavior of the employees against the predetermined job standards.

Note Performance Appraisal vs. Performance Management
Performance Appraisal Performance Management
Focus is on top down assessment Stresses on mutual objective setting through a process of joint
dialogue
Performed annually Continuous reviews are performed
Usage of ratings is very common Usage of ratings is less common

Focus is on traits Focus is on quantifiable objectives, values and behaviors
Monolithic system Flexible system
Are very much linked with pay Is not directly linked with pay

Performance appraisal is a systematic evaluation of present potential capabilities of personnel
and employees by their superiors, superior’s or a professional form outside. It is a process of
estimating or judging the value, excellent qualities or status of a person or thing. It is a process
of collecting, analyzing, and evaluating data relative to job behavior and results of individuals.

LOVELY PROFESSIONAL UNIVERSITY 7