Three Components of Performance management

Well designed performance management system typically consists of three important components that together form a coherent and effective body. These components are the focus in each of the three phases of the performance management cycle.

Objectives

• Identifying and evaluating employees’ major work objectives – this is a Key of results Area.

• A set of major work assignments identified to be achieved in a specified time frame, which are aligned with the corporate and departmental goals.

• It can be derived from the Job Description of the individual.

• It is the what of the job- what is to be done and achieved.

• It is what can be measured and assessed.

• Hence, objectives set must be

SMART, specific, measurable, achievable, relevant and within time frame

Writing Job Objective

What are the ingredients of a well-defined objectives?

A well-developed objective is written in four sequential steps:

1.Action Verb

Begin with action verbs preceded by the word “to”. For example, to sell, to create, to build, to accomplish, to increase…(To complete)

2.Key Result Area (KRA)

Identify a relevant Key Result Area that is the target of performance accomplishment: Customer service, Reports, Orders, Attendance. The list of examples is endless.(My weekly Report)

3.Indicator

State of Performance indicators or measurement standards that indicates the planned degree of quantity/quality to be achieved. The indicators can be
stated in monetary units, Average time per task, resource units consumed, percentage of an ideal or change,

•Performance standards may be expressed quantitate and measurable or they may be expressed in qualitative terms subject to evaluation judgements(By Thursday Noon)

4.Time frame

Provide time frame by o during which the key result will be
produced. By specific date and time and frequency (Daily, weekly, Monthly, Quarterly, Bimonthly, Annual…….(For the next 2 Months)

(To complete My weekly Report By Thursday Noon For the next 2 Months)

Management By Objective (MBO)

MBO is essentially a four-step process:

1.Setting goals or objectives

2.Action planning to work on objectives

3.Self-control and corrective actions

4.Periodic reviews and performance appraisal