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MANAGING PERFORMANCE IMPROVEMENT TOVEY/UREN/SHELDON. OVERVIEW Part A: Planning Performance 1. Setting goals for the organisation 2. Key performance indicators 3. Operational plans Part B: Performance Management 4. What is performance standard?

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Managing performance improvement tovey uren sheldon

MANAGING PERFORMANCE IMPROVEMENTTOVEY/UREN/SHELDON

OVERVIEW

Part A: Planning Performance

1. Setting goals for the organisation

2. Key performance indicators

3. Operational plans

Part B: Performance Management

4. What is performance standard?

5. Principles of setting performance standards

6. Monitoring performance

7. Analysing performance

8. Preparing to appraise performance

9. Appraising performance

10.Improving performance

11.Unsatisfactory performance

12.Skills for managing performance


Part a planning performance

Part A – Planning Performance

How to manage individual performance so that organisation obtains max productivity from staff at low costs with quality, efficient & be competitive in the market.

Continuous learning and improvement important for organistions & its workers.

According to Karpin Report – job creation depends on better management skills, flexibility of organisation stems from management and its skills in managing people within diverse & highly competitive environment that are likely to be in constant change.

Managers must therefore focus on the performance of people as organisational asset, rely on output measure to assess staff and develop new techniques for improve performance.


What is a manager

What is a manager?

Managers manage other to achieve outcomes or results through others – use few technical skills and more interpersonal & conceptual skills.

Fig A.1 –Skills required at different levels of management

First Line management : conceptual/Interpersonal/technical related skills

Middle management : conceptual/Interpersonal/technical related skills

Senior management : conceptual/Interpersonal/technical related skills

Top Level management : conceptual/Interpersonal/technical related skills


Fig a 2 characteristics of the ideal manager

Fig A.2 Characteristics of the Ideal Manager

People skills

Strategic thinker

Visionary

Flexible and adaptable to change

Self management

Team Player

Ability to solve complex problems & make decisions

Ethical/high personal standards

According to the Report training of managers dropped by 0.3% to 29% - this shows lack of

urgency and implementing recommendations of the report. Without proper training,

managers will fail in their roles.


Management

MANAGEMENT

Gardner & Palmer propose 3 perspectives of management.

Fig A.3 – Three perspectives on management

Administrative – use of classical management systems like division of labour &

formal organisation structures

Political – process that resolves conflicts between stakeholders in & out of the

organisation. People within the organisation have different power bases & ways of acting

and compete with each other for resources and rewards. It accounts how people feel and

value their relationships that are formed.

Cultural – refers to purpose of beliefs and values within and how things are done in an

organisation.


Defining performance management performance appraisal

Defining performance management & performance appraisal

Performance management – powerful tools linking employees responsibilities with

that of the team and overall organisation.

Done by setting & monitoring objectives on an ongoing basis which provides a

snapshot towards strategic plans and objectives.

The Performance Management Institute of Australia (PMIA) defines:

Performance management – the process of setting and monitoring measures and

objectives for employees, managers and executives. It is a closed loop process

meaning that objectives are constantly reviewed and performance diaries are

maintained by the employee and manager, which detail ongoing successes and

challenge.

Performance appraisal – the process that identifies, evaluates and develops

employees performance to meet employee and organisational goals.


The global economy 1 3

The Global Economy – 1/3

In today’s global economy competition is forcing a link between employers and

employees making ways for flexible ways of developing people & managing

Performance.

Organisations are having flatter management compared to the older hierarchies.

Customers/Clients are becoming more demanding and in terms of quality and other

requirements.

Hence training forms an integral part of this process.

The global financial crisis 2008/9 – felt by many – forced to downsized – organisation

need to utilize performance management information to assist in the downsizing

operations has become more apparent.


The global economy 2 3

The Global Economy – 2/3

Karpin Report identified 6 critical areas to improve skills:

Increase levels of education & training

Use development processes rather than short courses to develop skills

Management development – focus on future skills required

Handle the transition from specialist to manager more effectively.

Specifically link management development to strategic business directions.

Evaluate the effectiveness of management development activities.


The global economy 3 3

The Global Economy – 3/3

Karpin identified new profile for 21st century manager: (known as leader or coach)

Flat structures with team leaders reporting to senior management directly.

Values of the role including performance management, facilitation, participation and empowerment of other team members.

Working environment emphasizing best practice, benchmarking, quality and customer service.

Most managers having at least TAFE (Technical And Further Education) level qualification or a degree.

100% managers having formal training for the position.

Regular in company training for further learning.

Other soft skills need to be developed: communication, negotiation, counselling, listening,

delegating and managing conflict.


Training development

Training & Development

Employees need different knowledge and skills to cope with 21st century. They have to

develop skills faster and be more flexible , adaptable and multi-skilled than before. The

considerable change in relation to work means the future is difficult especially where specific

skills will be needed.

Rubenson & Shutze identified 3 important factor influencing this significant change:

Introduction of new & sophisticated technologies

New forms of work organisation

New trends in organisational management

Problem solving is one way of learning and developing expertise.


Employment security 1 3

Employment security – 1/3

According to Baskett and Marsick, self delegating workers with multifunctional expertise are

most desirable employees. Employment security is the state of possessing the knowledge a

skills that ensure a worker is employable across a range of duties and types of job rather

than the single job provided by a single employer previously known as job security.

Fig A.4 - The move from job security to employment security.

Job Security  specific skills oriented towards one job in the organisation  skills and

knowledge development provided mainly by organisation after initial qualification gained.

Employment Security  many different skills oriented towards many jobs in many different

organisations  skills and knowledge development provided mainly by individual after

qualification gained.


Employment security 2 3

Employment security – 2/3

According to Kapin Report managers do not take responsibility for their own learning and

development. According to Kapin Report there are 5 areas from which this pressure stems.

Enterprises increasingly require enhanced management skills.

Enterprises are becoming more strongly committed to helping managers to improve their skills for a variety of future career possibilities.

Enterprises are making it clear that learning and self development is a partnership between the firm and the manager.

Individuals are no longer guaranteed a clear career path within one organisation.

Individuals are increasingly planning careers spanning organisation and industries.


Employment security 3 3

Employment security – 3/3

Rubenson and Schutze indicate that the types of abilities and skills required of employees

are:

Capability of analytical thinking applied to different processes of work.

Sense of quantitative appreciation of different processes.

Ability to conduct dialogue with equipment

Sense of responsibility and capacity for autonomous work

Ability to link technical, economic and social considerations in appreciation of equipment & working methods.

Planned & methodical approach to work

Willingness to take the initiative and perform independently.

Ability to cooperate and work in groups.

Competence in planning and evaluating one’s own work and that of others.

Understanding how to work with people from different cultures and backgrounds.

The ability to make decisions.


Learning performance management

Learning & performance management

Learning is related to individual performance and the development of expertise. It results

In new knowledge and skills so that individuals can perform their jobs in more capable way

increasing individual competence and developing skilled vocational practice towards

expertise.

To facilitate learning transfer to workplace, learning methods and activities need to link to

skills and knowledge development to work activities and the actual degree of competence

required by organisations.

Training is geared towards specific, measureable outcomes for the learner based on

descriptions of actual job performance. Competency based training allows for recognition

of skills and prior work experience in attaining national qualifications in a variety of subject

areas.


Chapter 1 selling goals for the organisation

CHAPTER 1 –SELLING GOALS FOR THE ORGANISATION

Objectives:

Why planning is necessary?

Why plans should be written?

The term of “planning”

Why planning is an important management function?

How better planning reduce mistakes

The components of plans

Why managers need to plan?

The benefits of planning

The purpose of vision & mission statement

Difference between strategic & operational planning

The term “strategic planning”, & “goal”

The process of goal setting


Introduction

INTRODUCTION

The old saying:

“If you don’t know where you are going, how are you going to get there?”

It is sensible to say that some form of planning needs to be done before acting on it.

Planning : formal or informal.

Planning cannot guarantee performance but should improve the probability of improved performance.

A plan is an objective reference point for employer & employee.


What is planning

What is Planning?

Defination:

…… examining the future and drawing up the plan of action.

…. Planning encompasses defining the organisation’s objectives or goals, establishing and overall strategy for achieving these goals, and developing a comprehensive hierarchy if plans to integrate and coordinate activities.

…. Plans are projected courses of action and aimed at achieving future objectivities.

In simplified terms it means:

Planning is an activity that looks the future and how you will get there.


Fig 1 1 components of plans

Fig 1.1 – Components of Plans

Planning

Goals

Objectivities

Strategies

Action


Why plan refer table 1 1 why managers should plan

Why Plan? Refer Table 1.1 Why managers should plan ?

To:

Coordinate individual efforts

Enable action planning

Enable management of change

Facilitate decision making and

reduce waste

Focus effort on results/goals

Give clear instructions to others

Identify resources required

Meet deadlines

Monitor and evaluate performance

Reduce delays & disruptions

Reduce duplication

Reduce uncertainty

Set priorities

Set parameters for monitoring


Learning organisations

Learning Organisations

Organisations must:

adapt to changing environment

aim at a learning organisation culture

Focus is on excelling customers, staff, owners through expanding the organisation’s capacity to ensure future success.

Total Quality Management (TQM) –

improvement process for betterment

Empowerment to employees

Best practice is applied

Enhances on people togetherness, honesty, two-way feedback, motivation for employees: professional & personal development

Organisations need to improve, review visions and objectives in response to changes.


Planning in a changing environment

Planning in a Changing Environment

The planning process cannot be abandoned when change occurs.

The process require time and effort. Goals & actions may be suspended due to

reasons beyond your control but the process of planning is not wasted. A skillful

developed plan will always incorporate elements of uncertainty, together with

appropriate contingency measures.

A proper plan will assist in understanding your nature of business in details which will

give your flexibility, and proper timeliness for responses.

A skilled manager must be able to cope with and manage change as an everyday

activity with the use of planning skills. A plan also is likely to reduce stress for all

workers.


Planning for performance

Planning for Performance

Planning starts at the highest level.

Vision must be decided – Statement of things that are important to an organisation.

2 components:

Direction – where it is going in the future

Identification of values that will influence the strategic decisions & behaviours within an organisation.

A vision statement sets the direction.


Managing performance improvement tovey uren sheldon

Refer to the following:

Figure 1.2 – Components of a vision statement

Figure 1.3 Mission statement – involves broad description about the organisation &

its purpose.

Figure 1.4 Combined vision and mission statement

The vision & mission statement leads to the strategic planning process which in

turns leads to the operational or business planning setting which forms the basis for

an individual’s performance objectives.

Figure 1.5 The planning process


Strategic planning

Strategic Planning

Strategic Planning – 3 to 5 years in the future

Operational or business Planning – 12 months or to 3 years.

This solely depends on the organisation and its effects of change.


Fig 1 6 differences between strategic operational planning

Fig 1.6 Differences between strategic & operational planning

Strategic planning

Ambiguity

Complexity

Non-routine

Organisation-wide

Fundamental

Significant change

Environment or expectations-driven

Operational planning

Routinised

Operationally specific

Small-scale cha

Resource-driven


Complexity of strategic management 1 5

Complexity of Strategic Management- 1/5

Strategic management is demanding & well structured plans effort can be seen

through implementation and motivation of the people working in the organisation.

Simply put:

…… aligning the organisation with the internal resources and the external

environment to ensure long-term survival.

Strategic management involves:

Identify where the organisation is currently

Access how external environment is likely to affect the environment

Decide what alternative actions possible in line with vision & mission

Choose an action or actions

Implement the choice


Complexity of strategic management 2 5

Complexity of Strategic Management- 2/5

Characteristic of Strategic decisions: (according to Johnson, Scholes & Whittington)

Concerned with long term direction of organisation

About the scope of an organisation’s activities

Trying to achieve some advantage over competition

Matches the organisation’s activities with the environment in which it operates

Matches the organisation’s activities to its resource capability

Decisions have major resource implications for an organisation

Organisation’s strategy will be effected by environmental forces, values and expectations of those who have power in and around the organisation


Complexity of strategic management 3 5

Complexity of Strategic Management- 3/5

To develop & implement a Strategic plan: (9 steps suggested by Robbins &

Mukerji)

Identify organisation’s mission, objectives & strategies

Analyse the environment in which organisation is operating

Identify opportunities & threats to organisation

Analyse the organisation’s resources

Identify the strengths & weakness of the organisation

Review the organisation’s Mission and Objectives

Formulate strategies to achieve desired goals

Implement strategies

Evaluate the results

The process is complex but the activity can be easily managed with the aid of

Succinct (brief) guidelines


Complexity of strategic management 4 5

Complexity of Strategic Management- 4/5

Strategic plans

Focused on the whole organisation, providing objectives, direction & its interaction with the environment.

Goal form the foundation of all plans and can range from broad to specific targets.


Complexity of strategic management 5 5

Complexity of Strategic Management- 5/5

Fig 1.7 – Relationship between goals and other planning activities


Goal setting 1 4

Goal Setting – 1/4

Definition: A direction, point you want to head towards, a destination or a purpose.

Goals can be interpreted as aims, objectives, targets or purposes.

Goal & aim – general descriptions of intent

Objective & target – more specific

Process of setting goals (based on Robbins & Hunsaker)

Specific

Challenging

Time Limits

Participation

Feedback


Goal setting 2 4

Goal Setting – 2/4

Research states that goals need to be future based and immediate.

Goals that reach too far in the future without supporting sub-goals remain

unachieved.

Sub-goals need to specific and measureable – essential for appropriate learning and

development to achieve the main goal.

It is a logical process & disciplined based on the 5 steps, be it strategic plans,

operational plans or individual performance objective, the process is the same but

the substance differs.


Goal setting 3 4

Goal Setting – 3/4

8 steps in setting up goals:

Broadly identify what you want to achieve

Narrow down to specific things (sub-goals) in order to reach the main goal

Identify how you will measure – sub-goals (known as objectives)

Identify specific level of achievement required for each sub-goal

Identify linkages between sub-goals

Set time limit for each sub-goal

Identify & rank each sub-goal from most important to least

Develop and action plan for each sub-goal.


Goal setting 4 4 fig 1 8 goals sub goals

Main Goal

Reduce the consumption of stationery in the organisation

Goal Setting – 4/4: Fig 1.8 – Goals & sub-goals

Actions

Actions

Actions


Conclusion

Conclusion

Skilled goal setting linked to many successful individuals.

It lays down foundation for success.

Plans built on goals. – 5 fundamental rules apply

Goals & plan can change – management must be prepared to adapt to make

changes. Plans made are not wasted – this makes you well prepared and develop

flexibility to meet up with new changes.

Planning and performance linked through process of goal setting. Strategic planning

is the 1st part of performance planning process. Sets up the direction & facilitates the

development of operational plans to individual objectives. Brings together lower level plans e.g.

operational & individual performance plans to be developed to the success of the overall

organisation’s plan.


Chapter 2 key performance indicators

Chapter 2 – Key Performance Indicators

Objectives:

Basis on which organisations are judged.

Key performance indicators (KPI) framework

Understand Critical success factor (CSF)

List four examples of CSF

State the class of managers that should be involved in setting CSFs

Explain a KPI

Explain the terms ”means” and “ends”

Describe relationship between CSPs and KPIs

Explain the role of performance indicators

How KPIs might be used

State most common reasons for development of KPIs

Use KPIs to monitor performance


Introduction1

Introduction

An organisation is judged by the results it achieves. Business operates for profits ,

returns on investments for shareholders. If no profits are made, shareholders take

action and the market react badly which gives a negative impact on the operation of

the company. In extreme cases bad results can force a company to close.

Performance Indicators (PIs) relate to the results the organisation wants to achieve.

Vital areas are identified by organisation to perform well in order to achieve its

strategic and operational plans for the period. Organisations may have problems like

Strong competition, voter dissatisfaction, poor financial results, introduction of new

Technologies, dollar fluctuations, and cyclical ups and downs. At this time, Key

Performance Indicators are vital if the company need to turnaround. KPIs and CSFs

can be developed and used in day to day activities of its operation to define and

Measure business objectives.


Key performance indicators kpi framework 1 2

Key Performance Indicators (KPI) framework – 1/2

Brief description:

Critical Success Factors (CSFs) – identify those aspects of the organisation that

are critical for its success.

Key Performance Indicators (KPIs) – indicators of performance that are of great

Importance to the success of the business. A KPI is quantifiable gauge used to

measure an organisation’s performance against its CSFs. KPIs can be financial or

non-financial and there may be more than one KPI per CSF.

Performance Indicators (PIs) are measures of different parts of the organisation’s

performance.


Key performance indicators kpi framework 2 2

Key Performance Indicators (KPI) framework – 2/2

Key Focus Areas (KFAs) use in place of Key Success Factors (CSFs).

Key Result Areas (KRAs) utilised at job level sometimes interchangeable with Key

Performance Areas (KPAs).

e.g. If OHS (Occupational Health Safety) was a key performance area of a job, related PIs could include the number of accidents per occupational group and lost time injuries expressed in days lost.


Managing performance improvement tovey uren sheldon

Refer to the following:

Fig 2.1 KPI frame work – Pgs 28 -29

Fig 2.2 Theory to Practice - Pgs 30 - 31

Fig 2.3 Examples of CSFs for different industries – Pg32

Fig 2.4 KPIs for a sample organisation – Pg 33

Fig 2.5 Relationship of performance indicators to KPIs – Pg 34

Fig 2.6 Means and ends – Pg 35

Fig 2.7 Sample performance indicators – Pg 36

Why are KPIs needed? Pgs 36 - 37

Steps in developing KPIs – Pgs 38 – 39


Conclusion1

CONCLUSION

KPI fundamental for a sound management system.

Provides focus for measurement throughout the organisation and forms the basis for

individual performance objectives.

Required for efficient operation and if skillfully developed contributes to the strategic

and operation plans of the organisation.

KPIs used with CSFs which are identified by organisation for its long term survival.

KPIs flow from operational plans and CSFs flow from strategic plans.

KPIs made of 2 components: specific performance and some sort of indicator for the

performance.

5 steps have been outlined to develop suitable CFSs and KPIs.


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