Managing People: Structuring Individual Performance Targets

This presentation discusses the importance of performance management in structuring individual performance targets, improving employee development and communication, integrating performance management system with other HR processes, and linking performance to financial rewards. It also highlights the key areas that need to be considered while setting performance targets on an individual basis and the role of performance management in improving employee engagement, focused approach, and foundation knowledge of talent. The presentation concludes with references.

Managing People

Structuring individual performance
targets
 Performance management refers to process of achieving
performance targets through management of employees and
environment wherein employees work. It consists of elements
like performance improvement, development and management
of behaviour.
 Business adviser can suggest divisional director to have good
structure of individual performance target.
 Hierarchy will be followed in setting goals or team and targets of
individual. However, work should not be heavily target based
because this kind of culture tend to demotivate employees.

Continued...
 It will be core responsibility of team leader to set
achievable targets on the basis of SMART approach.
 Interaction between employees and managers is also the
crucial aspect in setting targets.
 Employees can be asked to give their preferences in
context of interested work, working hours, resources and
training as well as learning.

Continued...
Following are the key area needs that to be considered while
setting performance targets on an individual basis-
Targets should have direct link with purpose rather than activities
Individual targets need to be align with team so as to ensure team
based working
Targets must be communicated and agreed by individual whose
performance is to be measured against them
There must be consistency with individual/target with
organizational goals

Role of performance management in
improving employee development and
communications
 Employee engagement-This is the most imperative
aspect which can be ensured through performance
management in Steel Co. Under this, divisional manager
can ensure regular meeting with team leader and make
them understand regarding objectives of corporation. It
leads to carry out all business activities in right manner
and enhances overall rate of return of Steel Co. On the
other hand, during meeting employees will be provided
chances to incorporate their views in decision making
process. This in turn they get motivation to perform better
and create competitive edge of company in marketplace.

Continued...
 Focused approach-Divisional manager will start providing
training to employees for achieving their targets. This in turn
personnel get in-depth knowledge regarding their work related
areas. However, training is provided to accomplish target which
are directly linked to mission of Steel Co.
 Foundation knowledge of talent- On the basis of structured
process of performance management of Steel Co. come to
know about areas of improvement where employees be
improved. It facilitates to implement development activities so
as to increase their competencies. It shows that performance
management system is the key to develop workforce and
improve communication among each department

Need of integrated performance management
system with other HR processes
 The performance management system of Steel Co. should be
integrated with existing HR process. In this regard processes
like talent and learning management suites as electronic mode
can be integrated with performance management system. It
shows that technological up gradation must be there in Steel Co.
in order to improve its overall progress.
 Main requirement of divisional manager is to use performance
management as tool for cultural change and to enhance the
focus on performance. Owing to this, HR department of Steel
Co. consider working condition, pay scale and need of
employees. Similarly, focus will be laid on training and learning
through which motivation level of employees will be increased to
a great extent .

Continued...
 Top to bottom flow of communication will be ensured in
organization. This smooth flow of information contribute
towards collaboration in each department so that they all
work with integration.
 Integration of performance management system with other
process of human resources leads to achieve organization
success. It is the effective tool to managing change in
corporate culture.

Effectiveness of linking performance to
financial reward
 The performance of individual or employees links to
financial rewards. This is because management set criteria
on the basis of abilities, qualities as well as competencies
so that accordingly workforce put their efforts to
accomplish set targets.
 For getting good rewards, management provided time to
time training. This is because with the help of training
employees will come to know that how work can be
completed in less time span.

Continued...
 Generally performance management system is associated with
both monetary and non-monetary rewards which in turn
organization and employees get benefited. However, it would
not be enough to link performance to financial rewards because
all employees have different needs and expectations.
 Steel Co. adopts effective performance management system
then it will have competent and highly skilled workforce who can
contribute towards long run growth of the same.

References
Berman, E. M. and et. al., 2012. Human resource management in public service:
Paradoxes, processes, and problems. Sage.
Bloom, M., 2004. The ethics of compensation systems. Journal of Business Ethics.
52(2). pp.149-152.
Collier, J. and Esteban, R., 2007. Corporate social responsibility and employee
commitment. Business ethics: A European review. 16(1). pp.19-33.
Fujioka, T. and et. al., 2006. One year of musical training affects development of
auditory cortical-evoked fields in young children. Brain. 129(10). pp.2593-2608.
Kimmel, A. J., 2009 . Ethical issues in behavioral research: Basic and applied
perspectives. John Wiley & Sons.
O’Sullivan, S. L., 2010. International human resource management challenges in
Canadian development INGOs. European Management Journal. 28 (6). pp. 421-440.

Thank you