The Performance Management cycle 

Figure 1 :The performance management cycle 

    Source : Michael and Stephen,2013,pp.337 

While there are many versions of the performance management cycle, the most popular is probably the one cited by Michael Armstrong in his Hand­book of Performance Management. First stage of this performance management cycle is ‘planning’, a phase which was traditionally carried out only once each year. During this planning phase, employees are set SMART objectives, which contribute to achieving one or more of the company’s goals. The planning phase also includes the formation of a personal development plan (what strengths and skills the employee should develop to achieve their goals) and a review of the employee’s job requirements. The idea is to ensure that the organization’s goals and values feed into this planning phase, there­by ensuring that individual performance is aligned with the overall strategy of the organisation.The next stages are ​‘Act’ and ​‘Track’, which occur through­out the year. Employees aim to achieve their objectives and carry out their role effectively, while line managers coach their employees, track progress, and provide feedback(Michael and Stephen,2013).

Further, historically, companies have placed a large emphasis on the final stage, ‘Review’, often combining it with employee performance ratings. The ‘Review’ phase traditionally encompasses an annual performance review, a meeting where employee and manager discuss and evaluate goal progression and completion, performance issues, training and development, and opportunities for advancement. This once a year meet­ing can be extremely stressful for both employee and manager, and ultimately unproductive. Attempting to discuss and achieve so much in one meeting is simply unfeasible and the review frequently becomes a tick-the-box exercise with little meaningful conversation (Michael and Stephen, 2013).

The Performance Management cycle in Delmege and Forsyth Company Ltd

When analyzing the performance management cycle in Delmege , the objective of this process is to enhance business results through continuous assessment and managing  of employee performance(HR form10 -Performance Evaluation Form P2, Delmege Forsyth and company).  Hence the exercise should be completed within the defined timeline with utmost care. It is mandatory to discuss with employees about their performance and agree on future performance. Performance feedback will help and guide employees to perform better. Performance appraisal should be conducted in a fair and equitable manner (HR form10 -Performance Evaluation Form P2, Delmege Forsyth and company)  . Performance evaluation year is from 1^st April to 31^st March of the succeeding year.  

Performance evaluation consist of following parts (HR form10 -Performance Evaluation Form P2,Delmege Forsyth and company).

·       Objective Setting-  by 30^th April every year

·       Mid-year Review of objectives - by 31^st October every year

·       Year-end Review of objectives - by 10^th April every year

·       Qualitative Factor Evaluation (Should be done at the year-end review)

·       Training Needs Identification

1.Performance planning and agreement    

In performance planning and agreement stage, appraiser, appraisee and appraisee’s superior should

Sign the Performance Evaluation Form at the end of objective setting, Mid-year review and Year-end

Review (HR form10 -Performance Evaluation Form P2,Delmege Forsyth and company).

Further, following areas should be completed in objective setting (HR form10 - 

Performance Evaluation Form P2,Delmege Forsyth and company).

·       KPIs/Quantitative Factors– Brief but clear description of the performance objective.

·       Target – Always should be quantified.

·       Weight – Weight is given to each objective. Total weight of four objectives should be equal to 100%.

·       Expected Achievement by Mid-Year – Percentage of achievement of the objective by the mid-year.

E.g. Objective is to introduce 50 new customers and at least 30 customers should be introduced by the mid-year. Hence the expected achievement by mid-year (30^th September) is 60%

·       Training needs identification (HR form10 -Performance Evaluation Form P2,Delmege Forsyth and company).

·       Select 3 general skills by putting a tick.

·       Name the training requirements specifically needed according to area of work

Duly completed forms should be submitted to the HR Division on or before 20th April every year.

2. Act Performance Activities

·         Carry out day to day job role

·         Carry out training programs on performance improvement and personal development

      3. Monitor /manage  and review performance throughout the year

Ø  Midyear review (HR form10 -Performance Evaluation Form P2,Delmege Forsyth and company).

·       Objective of the mid-year review is to track the progress of the performance objectives and identify corrective actions as and when required.

·       HR Division will distribute performance evaluation forms to relevant Heads of companies / SBUs / Divisions, during the month of September.

·       Tick the relevant cage according to the agreement percentage.

E.g. Achievement by mid-year is 25 customers. Hence the achievement percentage is 50% ((25/50)*100)

·        Duly completed forms should be re-submitted to the HR Division on or before  31^st October  every year .

      ·        

Ø  Yearend review (HR form10 -Performance Evaluation Form P2,Delmege Forsyth and company).

It is a joint analysis of performance .Following areas should be completed at Year End Review

 KPIs/Quantitative Factors Year-End Evaluation.

·       Quantify the achievement of the objective.

·       If any employee has achieved more than 100%, mark the achievement accordingly.

·       Discuss the achievement % with employees. If any employee does not agree with the score, clarify his/her doubts

·       Obtain the achievement score by multiplying the weight of the objective by the achievement percentage (Refer A*B remark in the form).

·       Obtain the total year end %.

·                 Qualitative Factor Evaluation

·       Refer Performance Factor Standards section for standardization of rankings.

·       Add the total score of six factors. Maximum should be 30 (6*5).

·       Divide the total score by 30 and multiply the answer by 100.

Performance Summary

·       Take Quantitative Factor Evaluation final score (X) and Qualitative Factor Evaluation final score (Y).

·       Multiply the score by respective weightings (80% and 20% respectively) and obtain the total. Add to totals together and obtain final score.

Further, duly completed forms should be re-submitted to the HR Division on or before 10th April every year. Subsequently performance review joint discussions should be conducted with each employee.

   Figure 2: Performance Evaluation Form – Delmege Group of Companies

       Video 1 : Performance management cycle

  

       Source :Athena professional ,2014

·        Michael,A. ,Stephen.T.,2013, Armstrong’s Handbook of Human Resource Management Practice,13^th ed. India, Michael Armstrong.