Performance Management

Shuaib Mohamed MIC-KDF-HRM122

KPI & Competence

Key performance indicators, also known as KPI or Key Success Indicators, help
managers and employees gauge the effectiveness of various functions and processes
important to achieving organizational goals.
Competence is the ability of an individual to do a job properly. A competency is a set of
defined behaviors that provide a structured guide enabling the identification, evaluation
and development of the behaviors in individual employees.
Performance Management

Process of creating a work environment or setting in which people are enabled to

perform to the best of their abilities.

Whole work system that begins when a job is defined as needed.

Performance management defines your interaction with an employee at every step of

the way in between these major life cycle occurrences.
Performance appraisal

An annual review of an employee's overall contributions to the company by his/her

manager.

Performance appraisals, also called annual reviews, evaluate an employee's skills,

achievements and growth, or lack thereof.

Every corporate sector uses performance appraisal as a tool for knowing about the
employee and take decisions about particular employee.
Employees performance management cycle

The performance management cycle shows the stages involved in the process of
planning, monitoring and evaluating employee performance.
The planning stage provides an opportunity for one-on-one goal setting between the
supervisor and employee based on work unit objectives that are aligned with
organizational goals.
. Methods of performance management

Graphic Rating Scales: Graphic rating scales are ideal for production-oriented work
environments, as well as for other workplaces that move at a fast pace, such as those
found in the food and beverage industry.
Management by Objectives: are useful for measuring the performance of employees
in supervisory or managerial positions. MBOs start with identifying employee goals,
and from that point the employee and her manager list the resources necessary to
achieve those goals.
The 360 Approach: The 360 Approach appraisal system is not just for employers,
but is used by and for all employees and managers of a firm.
Common errors and how can those be
eliminated
Performance appraisals that contain errors or are constructed from a supervisors biased
viewpoint can affect an employees working relationship.
Employees whose performance is ranked incorrectly or inaccurately may be on the
verge of losing their jobs.
Halo Effect is when a raters overall positive or negative impression of an individual
employee leads to rating him or her the same across all rating dimensions.
Central tendency error is the raters tendency to avoid making extreme judgments
ofemployee performance resulting in rating all employees in the middle part of a scale.
 References
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