Chapter 1
INTRODUCTION TO
PERFORMANCE MANAGEMENT
BHS3043
Performance Management
• Define performance management.
Learning • Explain the difference between performance
Objective management and performance appraisal.
• Discuss the purpose of performance
management
What is
Performance Management?
Performance management is the process of continuous
feedback and communication between managers and their
employees to ensure the achievement of the strategic
objectives of the organization.
Performance Management?
Performance management is a set of
processes and systems aimed at
developing employees, so they
perform their job to the best of their
ability.
The goal is to help employees build on skills that enable them
to perform better in their roles, reach their potential, and
boost their success while also accomplishing the strategic
goals of the organization.
Basic Concepts in Performance
Management and Appraisal
Performance
Performance Management
Appraisal
Setting work standards, An integrated approach to
assessing performance, and ensuring that an employee’s
providing feedback to performance supports and
employees to motivate, contributes to the
correct, and continue their organization’s strategic
performance. aims.
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Purposes of Performance Management
Strategic - Link individual goals with organization’s goals.
Administrative - Provide information for making decisions;
salary adjustments, promotions, retention or termination,
recognition, and layoffs
Informational - Communicate to employees about expectations,
importance, improvement, and current performance
Developmental Purpose
o Performance feedback/coaching
o Identification of individual strengths and weaknesses
o Causes of performance inadequacy
o Tailor development of individual career path
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Purposes of Performance Management... Cont
Organizational Maintenance Purpose
Plan effective workforce
Assess future training needs
Evaluate performance at organizational level
Evaluate effectiveness of HR involvements
Documentational Purpose
Validate selection instruments
Document administrative decisions
Help meet legal requirements
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Who’s Involved? What Are Their Needs?
• Organization:
> Information - gathers and updates current employee data to maintain the human
resource information system (HRIS)
> Documentation - Employees’ data documented
• Supervisor:
> Documentation - The assessment and review part of the process provides the
opportunity for documentation and formal communication.
> Motivation - appraisal process as a motivation tool to improve employee
performance.
• Employee:
> Feedback - obtain feedback from the supervisor on his or her work performance
> Support for career growth - Employees and the supervisor should identify areas for
improvement and set goals for training and skill development
> Increased compensation -most employees will expect a raise as a result of a positive
review.
AQIDAH AKHLAQ ADAB AMANAH AMALAN
Linkage
Between
Strategy,
Outcomes,
and
Organizational
Results
Defining & Measuring Performance
Objectives and key performance indicators (KPIs) are usually clear at an
organizational level, but it is often less clear what good performance constitutes
for individuals or teams.
It is vital to identify how organizational KPIs cascade and what the expectations
are for employees and teams.
Three main types of performance:
•Task performance: how well someone carries out the core activities included
in their job. E.g. the number of products manufactured, service quality or their
impact on the people in their team.
•Contextual performance or ‘organizational citizenship behaviour’: a
voluntary activity that benefits the organization but sits outside one’s core role –
for example, helping other teams reach their targets, or contributing to ad hoc
initiatives.
•Adaptive performance: how well employees respond to changing job
demands or support innovation.
Discussion
You have noticed that one of the Finance Officers who reports to you seems to have been
late
regularly over the past few months. You have checked the records and found that this
individual has been over 10 minutes late on six occasions in the past three months, and on
one of these occasions was more than an hour late. This is beginning to present a problem
as the finance department is not 'covered' first thing in the morning, which is always a
busy time. On a couple of occasions you have had a passing word with this employee
about their lateness and received various excuses and a promise that it wouldn’t happen
again. The employee is a hard worker, who has worked for you for three years and has an
excellent disciplinary record. Because of this you had been reluctant to take matters
further until now, but you feel that it is time to address the issue in a more formal way.
Questions
1) Discuss the issues in the case study above
2) Suggest FIVE (5) recommendations to solve the issues above.