Improving Organisational

Performance

Performance
Management
Processes
JILL BALDWIN MA, MCIPD, FHEA, PGCE
SENIOR LECTURER WORK BASED LEARNING
LORD ASHCROFT INTERNATIONAL BUSINESS SCHOOL
PREPARED BY:

PERFORMANCE MANAGEMENT SHOULD

BE
Strategic - it is about broader issues and longerterm goals
Integrated - it should link various aspects of the
business, people management, and individuals and
teams.

It should incorporate:
Performance improvement - throughout the
organisation, for individual, team and
organisational effectiveness
Development - unless there is continuous
development of individuals and teams, performance
will not improve
Managing behaviour - ensuring that individuals
are encouraged to behave in a way that allows and
fosters better working relationships.
(Armstrong & Baron, 2004)

THE EVOLUTION OF PM
Management by Objectives and

Appraisal

Performance Management
FROM.
System
Appraisal
Outputs
PRP driven
Ratings common
Top Down
Directive
Monolithic
Owned by HR

TO..
Process
Joint Review
Inputs
Development driven
Ratings less common
360 degree feedback
Supportive
Flexible
Owned bu Users

PERFORMANCE MANAGEMENT IS TYPICALLY

CHARACTERISED AS A CYCLE

(TORRINGTON & HALL, 2010) ...

Determine Performance
Expectations

Manage
Performance
Standards

Support
Performance

Review and Appraise Performance

PRINCIPAL COMPONENTS OF THE PERFORMANCE

MANAGEMENT CYCLE (TORRINGTON & HALL, 2010) ...

Determine performance
expectations
Ensure staff are aware of the
performance standards
expected of them
Ensure managers are aware of
the impact of their behaviour
on others
Organisational, departmental
and individual

Often synonymous with

performance management
The formal part of the cycle
An appropriate, equitable
process (more in HRM)

Supporting performance

From informal interaction

between managers & staff to
the provision of resources &
systems which facilitate
achievement of organisational,
departmental individual
targets

Review & appraisal

Management of performance
standards

Actions taken to address issues

which are highlighted during
reviews linked to
Targets/productivity
Skills/competences
Career development
Pay/recognition

PERFORMANCE MANAGEMENT CYCLE

HOULDSWORTH, 2004

Review/Reward

Planning

Performance

Managing/Coaching

PRINCIPAL COMPONENTS OF THE PERFORMANCE

MANAGEMENT CYCLE (HOULDSWORTH, 2004) ...

Stage 1: Planning
Definition of job
responsibilities
Setting performance
expectations
Goal or objective setting at
the beginning of the period

Stage 2: Managing
Monitoring performance
and achievement towards
objectives
Feedback and coaching
Competency review
Development planning

Stage 3: Reviewing
Formal performance
appraisal, resulting in a
rating, if used
Links to reward, if deployed
within the organisation
Possible 360 degree feedback
around competencies or
other feedback tools

MANAGEMENT BY OBJECTIVES IN
ACTION (MBO)

In addition, John Humble (1970)

identified five needs that all staff
require from their managers:
1.
2.
3.

4.
5.

Clarify my job and the results Im expected

to achieve
Give me the resources & opportunity to
perform
Let me know how Im getting on.
Give me guidance & training when I need it
Reward me according to my contribution

CLARIFY MY JOB AND THE RESULTS

IM EXPECTED TO ACHIEVE
Job analysis
Job design
Job description
Person specification
Clear direction
Links to bigger
picture & strategy
Agreed standards and
targets

SMART OBJECTIVES
Specific what will be
done & by whom
Measurable contain a
standard by which
performance can be
measured
Achievable create a
challenge, but realistic
Resourced staff, time,
money, equipment, skills
Time-limited objectives
must include a clearly
defined time limit

LOCKES THEORY OF GOAL SETTING

GIVE ME THE RESOURCES AND

OPPORTUNITY TO PERFORM.

Staff
Time
Money
Equipment
Training & skills
Space

COACHING & MENTORING

Coaching
Current performance
improvement
relationship between subordinate
and line manager

Mentoring
Longer term development of an
individual
Wider territory
Someone outside the line
relationship who also gains
developmental outcomes

Mentoring & Coaching are elements of an organisations approach to

human resource development (HRD)McBain, (2012)

LET ME KNOW HOW IM GETTING

ON..
All

managers have a responsibility to

assess the performance of their staff. As
well as any formal appraisal this will
include

.Feedback:

The carrying back of some of the effects of a

process to its source or to a preceding stage so
as to strengthen or modify it.
(Concise Oxford Dictionary)

TWO TYPES OF FEEDBACK

Internal:

occurs when an individual

takes stock of their own performance &
behaviour linked to the learning cycle
(ref. Kolb/Honey & Mumford, 1992)

External:

occurs where individuals need

help to understand how they can change,
develop or improve.

REWARD ME ACCORDING TO MY
CONTRIBUTION

Extrinsic Motivation Tangible rewards

Pay & benefits, security and promotion are
the obvious method & performance related pay
(PRP), payment by results (PBR), bonuses etc all
have their place. Often determined at the
organisational level.
Intrinsic Motivation Psychological
rewards Satisfaction, sense of achievement,
challenge, recognition and a job well done
non financial rewards, however, can be as
effective. Usually influenced by the actions and
behaviours of other people in the organisation.

FINALLY.
When

people at work are clear about what

is expected of them
and are involved in the process of
deciding these expectations
If they are given regular, constructive
feedback and
are provided with the support &
resources needed to meet the required
standards
then most will do their best to perform
at the very highest level.