The Role of Performance Management

Seminar in Human Resource Management

How to Create a
Performance Management System

Remember!
Performance Management is NOT

Performance Appraisal

Relationship of the 2

Performance Management

Performance

Appraisal

Conceptual Difference
Performance Management

Performance Appraisal

systematic process
performance of
individual and teams
shared understanding
of what is to be
achieve
future oriented
continuous & flexible

formal assessment
rating of individuals
by their managers
top-down and largely
bureaucratic
retrospective
annually and
structured

Learning Objective
To define performance management
To explain the leader/manager's role in
performance management
To explore the skills/principles underpinning
performance reviews

Performance Management Definition

" ... a systematic process of improving
organizational performance by developing
the performance of individuals and
teams... a means of getting better results
by understanding and managing
performance within an agreed framework
of planned goals, standards and
competency requirements."
Armstrong, M. (2006)

Characteristics of Performance Management

agreement - jointly coming to an understanding
measurement - assessing performance against agreed
targets
feedback- providing information to the individual on their
performance and targets
positive reinforcement - emphasizing what has been
done well and making only constructive criticism about
what might be improved
dialogue - exchange of views, how appraises can
improve on their performance (CIPD, 2011)
" ... something that is done for people and in partnership with them."
Buchner (2007)

Leader/Manager's Role in Performance Management

To cascade organizational goals through to

individual/team behaviors
To agree to meaning goals
To support a learning/development process
To co-create learning cultures and environments
To promote trusting relationships
To evaluate trainning/development needs
Adapted from Parker Stone (2003)

And here are the things you shouldn't do...

What is RACI?

Underpinning Theories
Goal Theory (Latham &
Locke, 1979) - emphasis
on setting and agreeing
objectives
Control Theory feedback as a means of
shaping behavior
Social Cognitive Theory
(Bandura, 1986) developing and
strengthening positive
self-belief

Setting Objectives
S = specific/stretching
(clear, unambigous,
understandable,
challenging)
M = measurable
(quantity, quality, time,
money)
A = achievable
(challenging but within
reach)
R = relevant (to
organization/individual)
T = time-framed
(completed within a timescale

Rating Performance (BENEFITS)

ratings are needed for PRP
(performance related pay) schemes
summarizes judgement
allows comparison
lets individual know their position
can be motivating

Rating Performance (DISADVANTAGES)

oversimplifies a complex issue

consistency between raters is difficult
ratings are subjective
can be subject to bias
detracts from open discussion
development overshadowed by rating
can be demotivating
Armstrong and Baron (2003)

Conducting a performance review meeting

1. Be Prepared
2. Work to a clear structure
3. Create the right atmosphere
4. Provide good feedback
5. Use time productively
6. Use praise
7. Let individuals do most of the talking
8. Invite self-assessment
9. Discuss performance not personality
10.Encourage analysis of performance
11.Don't deliver unexpected criticisms
12.Agree measurable objectives and a plan of action

Potential Problems

Poor preparation
Prejudice
"Halo" effect
"Horns" effect
Reluctance to communicate
Poor record keeping
No follow-up or clear plan of action
Cornelius (1999)

Consistency

Forced Distribution
Ranking
Training
Peer Review
Monitoring
Behaviorally Anchored Rating Scales (BARS)

Conclusion
Performance management is an integrated
management activity
Focus is on improvement and development
Performance should be linked to organizational
goals
Procesess should be regularly reviewed
Performance management is a central line
manager activity that should add value to
organizational performance

Do you make a difference?

References
Armstrong, Michael. Armstrong's Handbook of Human
Resource Management Practice 11th ed. London: Kogan
Page, 2009.
"Championing Better Work and Working Lives." CIPD.
Web. 13 Nov. 2014. <http://www.cipd.co.uk/>.
Mennens, Jan. "How to Create a Performance
Management System." YouTube. YouTube, 27 Mar.
2014. Web. 13 Nov. 2014.
<http://www.youtube.com/watch?v=8ijBfprUNuQ>.
"Performance Management." YouTube. Web. 13 Nov.
2014. <http://www.youtube.com/watch?v=6GufMa-J8cI>.
http://www.youtube.com/watch?v=_p8cxmZLgsA