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Review Critical Success Factors for an effective Performance Management process Key Human Resource Linkages Base Pay Training Succession Planning/Promotions Career Planning Incentive Pay 100% 97% 95% 85% 80% Source: Watson Wyatt Best Practices in Performance Management HR Strategy Succession Planning Rewards Work Design Selection amp。 Coaching MidYear Review New Year Planning YearEnd Review Bad timing... “ I don’t want to ruin your day Herman, but tomorrow morning you’re scheduled to be in my office for your annual performance review...” Remember The Key Questions ? = Why does the pany exist? = Where is it going? ? Size ? Sales ? Markets ? Locations ? Products ? Competitive Challenges ? SBU Linkages = How will it get done? ? Values and Operating Principles ? Technology ? Resources = What must the pany be very good at doing? = How will progress and success be measured? ? Expectations of Stakeholders ? Company Performance Mission Vision of Future Strategic Organizational Goals Core Organizational Capabilities Balanced Scorecard Organization Alignment leads to Employee Engagement COMPANY MISSION VISION Strategic Objectives Core Capabilities Competencies ? Leadership ? Functional Department Scorecard Success Profiles Employee Performance Process Individual Goals Employee Development Plans Business Unit Scorecard Cascading: Critical Metrics and Competencies Change requires a balanced Value Exchange Employee Gives Employer Gives Energy Effort Commitment Learning Opportunity Career Benefits Compensation Job The Performance Process can provide the keys to development Base Pay Promotion Training Career development Succession planning 89% 77% 56% 51% 32% Reduction in force 26% Variable pay 34% Current Use of Performance Management Data Source: Watson Wyatt Best Practices in Performance Management Performance Management Evolution Traditional Recent Emerging Measures Traits/ Outes Behaviors/ Outes Time/Quality/ Value Evaluator Boss Self/Peers Customers Outes Merit Pay Development Organization Success Implementation Distribute Forms Train and Communicate Ongoing Education and involvement Ownership HRD Management Employees Compliance Voluntary Mandatory Motivation Factors That Influence Process effectiveness Organization Supervisor PM Culture Skills