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1、Executive Human Resource Program,The Promise of Performance Management Hay Group Boston,1,0109-9271-HAYG Lemaire,The Current Challenge of Performance Management,The HR process Is completely unrelated to other key business processes Is dreaded by managers and employees alike Does not result in any me
2、aningful feedback Does not differentiate performance or pay Is a focus for only one or two daysor hoursper year,2,0109-9271-HAYG Lemaire,The Promise of Performance Management,Imagine a system that could Increase the likelihood that your strategy is effectively executed Harness and direct the 1060 mi
3、nutes a day of discretionary effort that every one of your employees has Rationalize and focus the number of goals that anyone in your organization has Improve the decisive dialogue that occurs in your organization Reward performance in a way that it is motivating and engages people Differentiate pe
4、rformance in ways that make line managers feel good about their decisions,3,0109-9271-HAYG Lemaire,Performance,Number of Employees,Source: Hay/McBer,Optimizing the performance of your people will have a positive impact on business performance,Improving Performance Management Improves Business Result
5、s,4,0109-9271-HAYG Lemaire,Percentage of variation in change in company performance accounted for by managerial practices,Source: Sheffield Effectiveness Programme,Human Resource Management Practices Drive Profitability and Productivity,5,0109-9271-HAYG Lemaire,Highly Successful Companies are define
6、d as having 5-year sales growth = 17.5% per year 5-year profit growth = 10.8% per year Annual equity growth = 16.7% per year 5-year dividend growth = 13.4% per year,Source: D. Karvetz, The Human Resources Revolution,Clear Employee Goals,Participative Style,Attention to Development,Encourage Creativi
7、ty,Performance-Based Rewards,Highly SuccessfulCompanies,Less SuccessfulCompanies,80%,70%,67%,62%,86%,26%,4%,27%,10%,30%,High-performing companies are better at managing, motivating, and rewarding employees,Improving Performance Management Improves Business Results,6,0109-9271-HAYG Lemaire,Source: Ma
8、vrinac & Siesfield, Measuring Intangible Investment,Strategy Execution Matters to Shareholders,Thirty-five percent of an institutional investors valuation of a company is attributable to nonfinancial information that gauges the ability of the management team to deliver results: Strategy Execution: C
9、an management make tough decisions and seize opportunities quickly? Management Credibility: Does the company keep its commitments? Strategy Quality: Is managements vision of the future likely to optimize value creation in a volatile, globalized, and connected economy? Innovativeness: How readily doe
10、s this company adapt? Attracting and Retaining Talent: Is turnover higher or lower than key competitors? Do new hires surpass leavers in skills and experience? Management Experience: What skills and experiences does the management team bring to the table? Compensation: Do compensation policies suppo
11、rt the firms strategic intent?,7,0109-9271-HAYG Lemaire,35% improvement in human-capital systems resulted in 10%20% gain in shareholder value,Alignment and Integration of HR System,Source: Huselid and Baker, 1995,Human Capital Systems Increase Shareholder Value,8,0109-9271-HAYG Lemaire,Improving Per
12、formance Management Improves Business Results,High-performance companies define Performance Management in its broadest sense: it is critical to executing and implementing strategy Performance Management is now widely recognized as delivering more returns and delivering more competitive advantages th
13、an other HR investments Performance Management is the key to “raising the bar” in an organization, for all levels of performance Organizations with a high-performance orientation and strong management capability have higher revenue, profits, and market valuations,9,0109-9271-HAYG Lemaire,Performance
14、 Management,Performance Management is about improving business performance by improving team and individual performance, and ensuring that the companys strategy is executed and implemented. It is A process that ensures that people execute the strategy of the organization A process for establishing a
15、 shared understanding of what is to be achieved and how A process for ensuring that decisive and constructive dialogue occurs A process of managing self and others so that people do achieve A process for ensuring that people are doing the right things in the most effective ways, to the best of their
16、 ability,10,0109-9271-HAYG Lemaire,Performance Management Stages,Design Parameter,Performance Appraisal,Performance Management,Performance Ownership,Human Resources,“Check the box” compliance-oriented,Manage poor performers,Passive,Report card (retrospective),Managers and Human Resources,Evaluation reward emphasis,Manage the tails of bell curve,Joint ownership for goal-setting/review,Barometer of progress (periodic),Employees, managers, and leadership,Strategic
