Page 40 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Unit 3: Performance Planning

(e) Evolving job objectives Notes

(f) Aligning individual goals with organizational strategy
8. Establishing performance management process:
(a) Designing a framework of performance management encompassing
(b) Performance planning
(c) Performance managing
(d) Performance appraisal

(e) Performance monitoring
9. Measuring effective of performance management:
(a) Identifying opportunities for performance development
(b) Providing performance counseling including 360 degree feedback

(c) Devising reward strategy and administering reward system
(d) Instituting performance management audit
(e) Improvement in competitive position of the organization

3.5 Process of Performance Planning

There are many advantages to both supervisors and employees in having an effective performance
planning and review process. The process should identify clearly what is expected of the
employee, which in turn provides the opportunity to recognize good performance and identify
areas that need corrective action or added training.

Four areas that must be identified in a performance plan are:
1. Job responsibility – What has to be done?
2. Performance measure – How will this be checked or measured?
3. Performance standard – How well must it be done?
4. Target date – When will it be checked?
When building a performance plan, you would obtain information in these areas from the job
description and you would also look to the organization needs to clarify which duties have
priority and the standard they must be performed to. An effective performance plan should
outline results expected, performance measures, standards to be achieved and target dates for
measurement.
The following are the key components of performance planning:

1. Preparation of Performance Plans: Performance plans are usually prepared at the beginning

of annual review period, or when an employee first starts their new job. Preparing for the
initial planning meeting should be undertaken by both the supervisor and the employee.
Both supervisor and employee should be reviewing the goals, objectives and needs of
the work unit and looking at the current job description. The supervisor should list the
things in the job that they intend to measure, and the standards you will measure to. The
employee could write down the ways they think each of their tasks could be measured and
how well each should be performed.
2. Identification of Key Success Factors: Performance objectives and results to be achieved

should be focused on results and set in order of priority. Measures should be specifi c to
each task, with clear standards which include dates and times when appropriate.

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