Unit 2: Managing Performance
Managing Performance
Performance management must be tailored to different levels in an organization to ensure effectiveness. Here’s how it can be managed across:
1. Top-Level Management (Executives, CEOs, Directors)
2. Middle-Level Management (Managers, Department Heads)
3. Lower-Level Management (Supervisors, Line Managers)
4. Labor/Workers (Skilled, Unskilled Employees)
Performance management should be customized to each level in the organization:
- Strategic tools for top-level,
- Operational goals for middle managers,
- Task-oriented methods for lower levels and labor, ensuring alignment, motivation, and productivity across the board.
360-Degree Performance Appraisal
360-degree performance appraisal is a comprehensive feedback system where
an employee’s performance is evaluated by multiple sources — not just the
manager. These sources include peers, subordinates, supervisors,
customers, and even the employee themselves.
🎯 Key Features
Sources of 360-Degree Feedback
- Supervisor / Manager
- Peers / Colleagues
- Subordinates / Team Members
- Customers / Clients (if applicable)
- Self-Appraisal
📋 Process of 360-Degree Appraisal
- Select participants (feedback providers)
- Distribute questionnaires or online forms
- Collect responses anonymously
- Analyze feedback data
- Conduct review meeting with employee
- Create development plan based on feedback
👍 Advantages
- Offers complete and unbiased feedback
- Identifies strengths and weaknesses from multiple angles
- Encourages personal development
- Improves teamwork and communication
- Helps in leadership development
👎 Disadvantages
- Can be time-consuming and costly
- Risk of biased or inaccurate feedback
- May create conflict or mistrust if not handled properly
- Needs a mature and open culture
📌 Conclusion
360-Degree Appraisal is a powerful tool for developing well-rounded
employees by incorporating feedback from everyone they interact with. It's
best used for developmental rather than evaluation purposes.
Performance Feedback & Counseling Methods
- Performance feedback is the process of communicating an employee’s strengths, weaknesses, and improvement areas after evaluating their work. It aims to motivate, guide, and develop the employee.
- Counseling is a supportive method used to address emotional, behavioral, or performance-related issues, helping employees deal with stress, conflicts, or low productivity.
Methods of Performance Feedback
Key Principles for Effective Feedback & Counseling
- Be specific, not vague
- Keep it timely and regular
- Focus on behaviors, not personal traits
- Use a two-way communication process
- End with a clear action plan
📌 Conclusion
Effective performance feedback and counseling help in building a
motivated, skilled, and productive workforce. They are essential tools for
continuous improvement and employee development.
Performance Analysis for Individual and Organizational Development
Performance analysis is the systematic process of collecting, measuring, and
evaluating data related to employee or organizational performance to
identify strengths, weaknesses, and areas for improvement.
🎯 Performance Analysis for Individual Development
Performance Analysis for Organizational Development
How Performance Analysis Supports Development
Performance analysis is a vital tool for both individual growth and organizational success. By identifying gaps and opportunities, it helps create focused development plans that improve overall effectiveness.