PERFORMANCE MANAGEMENT

What is Performance Management?

Performance Management is a means by which an organization will
enable its people to give their best

This means management ensuring that the staffs attain the highest
level of performance by doing what needs to be done.

Performance is therefore a way of planning with staff what they are

to achieve and by when, and then assessing how well they
perform against agreed goals/objectives in order to reward them
appropriately.

What does the Performance Management cover?

The Performance Management is an annual process, which comprises

of:

Setting objectives

Performance planning and tracking, with progress reviews as

needed

Assessment of achievement against objectives

Assessment of overall performance.

General principles
Openness, partnership and joint ownership between a staff and his/her
immediate manager/supervisor.
Personal objectives represent an individual’s planned contribution to the
organization’s business targets during the year.
Assessment of overall individual performance based on achievement against
objectives, in the context of how the objectives were developed, as well as overall
contribution in the job as a whole.
Overall performance has a direct link to bonus and salary review.
Corrective action against poor performance should be initiated as soon as it is
identified, within the relevant process.

Staff Responsibility
To prepare draft objectives for discussion and agreement with his/her manager
To self-assess his/her progress against the objectives regularly and to participate in
progress reviews and year-end assessment reviews with his/her manager.

Manager’
Manager’s Responsibility
To review draft objectives with his/her staff and formally set annual performance
objectives according to SMART criteria
To review progress against objectives regularly, taking into account self-assessment
and to participate in progress reviews and year-end assessment reviews with the
staff
To rate the staff’s overall performance formally at the end of each year
Benefits of setting objectives
staff will understand exactly what is required of him/her
Staff’s efforts will be focused on key business priorities
Staff will feel a greater sense of purpose, ownership and direction
Staff will be helped to recognise the challenges he/she faces, and to enable him/her
to plan how to meet them
Both the staff and his/her manager will have a benchmark against which to monitor
progress

Outline of Performance Initiative

How to develop personal objectives
Objectives are not intended to cover every aspect of an individual staff’s job. Their
purpose is to focus on the key priorities for the forthcoming year, linked to the
business strategy
Staff are encouraged to talk with their managers about the business targets or
service quality standards to establish what is required of them
Personal objectives must address the themes announced by the Executive Director
spelling out the direction the Bank is taking in the following year – ask your
manager about these
Where generic job descriptions include ‘Key Job Measurables’ or ‘Key Result Areas’,
set objectives against them
The Bank’s competency definitions provide useful source material for objective
setting.

How to make objectives SMART

Objectives are intended to be precise descriptions on what needs to be achieved in a
given period; they need to be SMART i.e.

S-stretching M-measurable A-agreed R-realistic T-time-bound

These should be stated in terms of outcome and results – not tasks or actions.

Include measurable success criteria that are explicit and unambiguous, in terms of
quality, quantity, time and money.

Questions to help frame SMART objectives:

objectives:

Stretching

How challenging will it be for you?

 How does it compare with your achievements last year?
What benchmarks could be used?

Measurable: quality

How can quality be measured?

What is best practice in this area?
What standards should apply?

Measurable: quantity

How many? How much?

What percentage? What improvement?

Measurable: time

How long will it take you?

What are the milestones along the way?
How much of your working day/ week/month/year will this take?

Measurable: money

How much income? How much profit?

What will it cost? What will it save?

Agreed

Do you have the skills, knowledge, and resources necessary to do this well?
How committed/interested/excited are you about this?
Do you have reservations about the objective – how can these be overcome?

Realistic

What could go wrong?

Were any of your objectives not achieved last year – why not and what can you
learn?
How will you manage your time and resources to meet this objective in the light
of other commitments?

Time-bound
What should the deadline be?
Does everybody involved commit to that deadline?
An example of a SMART objective is:

Introduce xyz product to 20 new customers and, by selling it to 10 of

them, produce new revenue of Ksh 2m by the end of June, 2006.”

Manager’
Manager’s agreement to annual objectives
Each manager is responsible for ensuring that objectives do address the key targets
and that they are comprehensive and SMART
He/she will ensure that they cover not only the ‘hard’ business targets, but also the
‘softer’ areas of the job, contributing to team and colleagues’ initiatives through
MEWASS, etc
The manager will indicate those ongoing job responsibilities that are of such
importance that they have the status of ‘permanent’ or ‘threshold’ objectives – for
example ensuring personal and team compliance, achieving acceptable audit
grades, maintaining good customer relationships, contribution to the team, and
completion of own Personal Development Plan; where necessary these may be
stated explicitly as objectives on the Performance Assessment Form.
Progress reviews
A progress review is an opportunity for manager and individual to track achievement
to date, against objectives, to re-focus performance, to consider resource and
logistical issues and constraints, and for the manager to coach and mentor the
individual to improve his/her performance. Progress reviews make it possible to add
to or amend agreed objectives in response to changing business realities.

A progress review may be initiated by manager or individual; they should take place
as required i.e. mid-year and annually
Progress reviews are informal, free-flowing, constructive dialogues
A Performance Planning and tracking Form may optionally be used to facilitate
progress reviews
The outcome of a progress review should be recorded in an appropriate manner

Tips for managers on performance assessment interviews

How to prepare
− Advance Notice.
Managers/supervisors initiate performance meetings by notifying staff in
advance. This allows them to think about their work performance and prepare to
discuss it.

− Allotment of time.
Good managers/supervisors give enough time to staff so that no staff feels
rushed in the process.

− Physical setting.
Make sure that the physical setting of the interview room is comfortable and not
disturbing. Do not allow interruptions during the interview sessions. Maintain
privacy, both to prevent distractions and to ensure a sense of confidentiality.

− General atmosphere.
Try to create an informal atmosphere set up. Get out your formal seating position
(behind the desk) and avoid speaking authoritatively. Let the discussion be as
informal as possible.

General conduct
− Primary Emphasis.
Good managers/supervisors during performance interviews places their emphasis
on learning about and developing workers. They take the responsibility to insure
constructive, cooperative, counselling, problem-solving environment. Avoid
implications that the session is or could be used for disciplinary purposes.
 − Open-mindedness.
Try as much as possible to remain open to the opinions and facts presented by
the employees. Managers need not to agree, but can listen willingly and accept
honest expressions of feelings.

− Establish rapport.
Establish rapport with the staff that puts them at ease with you. You are
expected to make workers involved participants in the performance interview and
not merely passive listeners. When staff participate fully in the interview they
tend to view the appraisal positively. They also tend to perform better after the
interview.

− Do not dominate.
Responsible managers/supervisors do listen:
● Attentively and politely
● To sift out the important points from details
● T separate facts from opinions
● Identify information
● To know when an employee intends to influence the
manager/supervisor.

Starting the interview

Attempt as much as possible to establish a relationship with the staff where both of
you feel reasonably at ease.
1. Relieve tension
● Show acceptance of the employees feelings
● Let the employees know their views are important
● Listen and discuss workers view points.

2. Explain the purpose

As a good manager/supervisor explain the purpose of the interview. Make
clear that you want to discuss their performances and where possible offer
help on how they can improve.
3. Allow employees talk
As soon as possible let the employee talk about how he/she perceives things at work
place.

Performance discussion
Every manager/supervisor want their workers to do well. Note that assaults upon the
personal integrity of an individual cut off discussions.

1. Get to specifics.
Throughout the interview obtain specific instances and examples. Let
every performance be substantiated with specific examples.

2. Get favourable facts.

Some managers/supervisors tend to point out positive atmosphere in the
beginning ending up with negative performance gaps. Avoid this trap and
just talk about points for improvement rather than deficiencies or what
was wrong.

3. Poor performance.
 Sometimes employees do not see the overall poor performance, as a
manager determine if the employee understands the job requirements. Let
the employee understand and accept their responsibility to meet
requirements.

Informing Employees about performances

Many a times managers/supervisors feel reluctant to critique the performance of

employees especially those who have been in the organization for long time. As a
manager/supervisor you have an important responsibilities in performance
appraisals. Remember that the employees have the right to know how they perform
and need to profit from performance appraisal.

Limits of competence
When you encounter individuals who appear to be under going some serious personal
problems or emotional disturbances which are outside the scope of the performance
appraisal, you need to refer them to appropriate sources of professional assistance.

Employee development
Managers/supervisors ask themselves the following questions before any kind of
employee development program:
● Do I want my employees to be independent, self motivated, and self
disciplined?
● Do I want individuals to take initiative in my absence?
● Do I need “Yes-men”?
● Do I want employees to be come dependent on me?

Note that managers/supervisors modify the behaviour of employees by the way they
treat them. If you trust employees to take responsibility, they will. If you don’t trust
them they will not. Use positive words such as “Look, you are an educated, intelligent
person”. Lets talk and I will assist you find your solutions for your issues at hand.
Employees tend to trust their supervisors and create confidence among themselves.
Managers/supervisors need to develop employees who will think for themselves.
They need to set up an enabling environment where they receive reinforcement for
thinking on their own.

Staff Performance Appraisal Summary

Objective:
The ultimate objective of staff appraisal is to stimulate growth and development of
employees.

Role and attitude of manager/supervisor:

Your role as a manager/supervisor is that of a helper and facilitator, display trust and
facilitate staff analysis and problem-solving.

Possible reactions of employees:

Make it easy for employees to feel free to analyze their performance. Let employees
be motivated to think in productive, rather than counter-productive ways. Let them
find solutions which are acceptable because they are theirs.

Probable results:
Creation of a two-way communication channel is the resultant. It helps in mutual
learning and communicating. Job satisfaction is improved with increase in growth and
responsibility. It is an easier way to reinforce appropriate behaviors and setting new
performance targets.

SAMPLE PERFORMANCE MANAGEMENT FORM

CONFIDENTIAL
 ANNUAL EMPLOYEE PERFORMANCE APPRAISAL
UNIONIZABLE STAFF

Period
………………………………………………………………………………………
Department
…………………………………………………………………………………
1. Employee’s Personal Details
Name: …………………………….. Age:
………………………………………...
Designation: ……………………… Job Grade:
………………………………….
Date joined the organization:
…………………………………………………………..
Section: …………………………… Location:
…………………………………...
Date of this report: ……………………………………………………….
…………….
Educational qualifications:
…………………………………………………………………………………………
………………………………………………………………………………………….
.
Professional/Technical qualifications:
…………………………………………………………………………………………
…………………………………………………………………………………………
Experience on the job (Years):
………………………………………………………...

2. Performance Rating by Supervisor

Rating Codes/Guide
1. Poor 2. Below Average 3. Average
4. Good 5. Very Good 6. Excellent
 RATING ITEMS RATING
1 2 3 4 5 6
i. Punctuality
ii. Attendance
iii. Quality of Work Performed
iv. Meeting deadlines at
specified time
v. Physical appearance –
tidiness,
acceptable clothing.
vi. Relationship with others
• Superiors
• Colleagues
• Subordinates
• Customers/Visitors
vii. Communication Skills
viii. Ability, willingness/keenness
to
learn new ideas and skills
ix. Willingness to take on
additional
tasks and/or
responsibilities
x. Personal qualities –
cooperation,
discipline, team member.
xi. Any warnings

3. Overall Rating
1. Poor Below 30
2. Below Average 31 – 40
3. Average 41 – 55
4. Good 56 – 70
5. Very good 71 – 85
6. Excellent 86 – 100
Using the appraisal code/guide give a percentage rating to encompass
overall performance of the jobholder ______________%.

4. Appraisal Interview with Job Holder

(i) Performance Rating
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_____

(ii) Agreed objectives and targets for the coming year

_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
____

(iii) Projected future training and development plans/programmes

_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
 _________________________________________________________________
_____

5. Comments by Job Holder

_________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_____
Signed:

Job Holder: _______________________ Date:

_________________________
Appraiser: ________________________ Date:
_________________________
6. Overall Assessment Comments
(i) Departmental/Section Manager (as appropriate)
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
____________________________

(ii) General Manager – Administration (increment, promotion,

discipline,
training, etc.)
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
 ______________________________________________________________
_____

(iii) a. Approved by Departmental Manager ____________ Date

__________
b. Approved by Managing Director ________________ Date
__________

SAMPLE PERFORMANCE MANAGEMENT APPRAISAL FORM

STAFF APPRAISAL FORM (SUPERVISORS & ABOVE)

NAME DEPT
TITLE BRANCH
PERIOD OF EVALUATION TO NEXT
FROM

PART 1 – DUTIES & RESPONSIBILITIES

(Please attach current Job Description with the Appraisal)

COMMENTS ON ACHIEVEMENT OF OBJECTIVES/TARGETS FOR

PERIOD/YEAR UNDER REVIEW
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
________________________________________

PART 2 – PERFORMANCE APPRAISAL AND RATING

1. Unsatisfactory – Results do not meet job requirements Below
40
2. Satisfactory – Results just meet job requirements 41 – 55
3. Good – Results fully meet job requirements 56 – 70
4. Very Good – Results exceed job requirements the 71 – 85
majority of the time
5. Outstanding - Results consistently exceed job 86 - 100
requirements

PART 3 A – PERFORMANCE APPRAISAL (Please tick ( ) appropriate

box for each appraisal item).

APPRAISAL ITEMS SCORING Ratin

g (%)
(i) KNOWLEDGE OF WORK 1 2 3 4 5
Assigned work, related duties, organizational
objectives,
departmental goals, quality of work, cost
consciousness.
(iii) WORK METHOD
Planning, Organizing, Analyzing, Accuracy and
Working under
pressure, Thorough follow-up, Meeting deadlines.
(iv) PERSONAL QUALITIES
Leadership, initiative, drive, discipline, vision,
dependability,
 Innovativeness, competence in decision-making and
time keeping.
(v) RELATIONSHIP WITH OTHERS
Within and outside his/her department and the public.
(vi) COMMUNICATION SKILLS
Clarity in instructing, directing, reporting, fluency
orally and in
writing, officer’s language, etc.
(vii) ABILITY TO UNDERTAKE RESPONSIBILITY
Drive and willingness to achieve more than what is
allocated in
order to improve areas of responsibility.
(viii) APPEARANCE
Personal cleanliness, presentation, agreeable,
smartness
(ix) MENTAL CAPACITY
General Intelligence, judgment, reasoning power and
soundness, etc.
(x) DEVELOPMENT POTENTIAL
Potential for further development, creativeness, etc
(xi) ABILITY TO DEVELOP OTHERS
Motive, Train, Counsel and Guide, etc.
OVERALL SCORING AND RATING

PART 4 – APPRAISAL INTERVIEW

Discuss the performance appraisal with the jobholder. Discuss the points
that affect/assist his performance and his achievements/areas of
improvement of the required (set) of standards.

i. Strengths of work in relation to Job description (What strengths to

overall performance)
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
____
ii. Areas requiring improvement/suggestions. (Inherent difficulties that
prevent optimum
performance e.g. lack of technical expertise of experience in relation to
job)
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
____

iii. Constraints (Factors that inhibit better performance e.g. personal

limitations, operational
problems, environment or job preferred).
_______________________________________________________________________
_
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
___

iv. Long-term interest. (Ascertain individual’s future training and

development interests)
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
____

v. Long-term plans/projections for personal growth and career

development relevant to the
organization.
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
 _______________________________________________________________________
____
vi. Record any significant points arising from the discussion of the
performance appraisal
with the appraisee.
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
____

vii. Agreed objectives and targets for the coming year.

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
____

viii. Projected future training and development plans/programmes

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
____

ix. Comments by Appraisee after the Appraisal Interview.

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
____

Signed:
Appraisee ______________________________________ Date
_____________________

Appraiser _______________________________________ Date

_____________________

PART 5 – OVERALL SUMMARY COMMENTS:

i. Departmental Manager:
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
______
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
___

ii. General Manager – Administration:

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_________
iii. Branch General Manager:
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_________________________________________________

COURSE EVALUATION FORM

VENUE: DATE FROM DATE TO

TRAINER [S] names [1]
[2] [3]
PLEASE LET US KNOW OUR PERFORMANCE IN DELIVERING THIS COURSE TOPIC
WHICH WILL ENABLE US TO LEARN HOW TO MAKE IT BETTER IN THE FUTURE
1 What were your
expectations FROM
THIS COURSE?
2 COURSE Tick HIG MED LOW
OVERVIEW H
1 How were your expectations met
2 How will you personally benefit
3 How will YOUR organization benefit
4 Quality of TRAINING methods used by the
Trainer[s]
5 Assess the course topics-relevance,
immediate applicability?
 6 Your determination to implement what you
have learnt
3 List down ideas
from this COURSE
which will help you
to improve your
work performance
4 Recall one
memorable
moment [magic
moment, enjoyable
thing] during the
COURSE which was
very valuable to
you
5 What do you think
about the style and
skills of the
trainers from ICS?
6 One statement to
express your
feelings about the
COURSE. What do
you think?
7 Please comment
on venue, food,
and the learning
environment
8 List down 2two TRAINING NEED, SKILLS YOU NEED Tick- H M, L
training needs you
wish your employer to
provide-rate the order
of importance-
[H] HIGH,[M]
MEDIUM,[L] LOW
9 Your action plan 1 What is the one behaviour or work practice you will correct &
arising from the make it better
skills you got from
the COURSE. 2 PERSONAL Action plan to improve Date
Please also PERFORMANCE
suggest what
management
should do to 3 WHAT MANAGEMENT SHOULD DO TO DATE
benefit from the BENEFIT FROM THIS COURSE
course

Your name [optional] Work section Job title

E-mail Address Tel. no.

THANK YOU FOR YOUR BUSINESS Date