Chapter Two

Performance
Management
Process
PERFORMANCE
MANAGEMENT PROCESS

• Performance
management is an
ongoing process. It
never ends. Once
established in an
organization, it
becomes part of an
organization’s
culture. The
performance
management process
1. Prerequisites
• The first component of the performance management process involves two
prerequisites.
• First, need to have good knowledge of the organization’s mission
and strategic goals. This knowledge, combined with knowledge
regarding the mission and strategic goals of one’s unit, allows employees
to make contributions that will have a positive impact on their units and on
the organization as a whole.
• Second, need to have good knowledge of the job in question. A job
analysis allows for the determination of the key components of a particular
job: what tasks need to be done, how they should be done, and what KSAs
(knowledge, Skills and Abilities) are needed. If we have good information
regarding a job, then it is easier to establish criteria for job success.
• Job descriptions
• Job descriptions are a key prerequisite for any performance
management system because they provide the criteria (i.e.,
yardsticks) that will be used in measuring performance. Such
criteria may concern behaviors (i.e., how to perform) or results
(i.e., what outcomes should result from performance).
• Regarding results, these criteria usually fall into one of the
following categories: (1) quality, (2) quantity, (3) cost-effectiveness,
and (4) timeliness. In the truck driver example, results-oriented
criteria can include number of accidents (i.e., quality).
• behaviors considered to be of top strategic importance for this
particular organization: (1) adaptability, (2) building customer
loyalty, (3) building trust, and (4) contributing to team success.
• Job analysis
• Job analysis is a process of determining the key components of a
particular job, including activities, tasks, products, services,
and processes.
• A good job analysis is rater training. there are several biases that can
affect the accuracy of the information provided by individuals
regarding KSAs needed for a job.
• Self-serving bias: This bias leads people to report that their own
behaviors and personality traits are success to themselves and failure
to external causes.
• Social projection and false consensus bias: Social projection bias
leads people to believe that others behave similarly to themselves.
False consensus bias is similar in that it leads people to believe that
others share the same beliefs and attitudes as themselves.
Job Description for Trailer Truck Driver:
Civilian Personnel Management Service, U.S. Department of
Defense
Operates gasoline- or diesel-powered truck or truck tractor equipped
with two or more driving wheels and with four or more forward speed
transmissions, which may include two or more gear ranges. These
vehicles are coupled to a trailer or semitrailer by use of a turntable
(fifth wheel) or pintle (pivot) hook. Drives over public roads to transport
materials, merchandise, or equipment. Performs difficult driving tasks
such as backing truck to loading platform, turning narrow corners,
negotiating narrow passageways, and keeping truck and trailer under
control, particularly on wet or icy highways. May assist in loading and
unloading truck. May also handle manifest, bills of lading, expense
accounts, and other papers pertinent to the shipment
• “Job Description for Trailer Truck Driver.”- This job description
includes information about what tasks are performed (e.g.,
operation of a specific type of truck). It also includes
information about the needed knowledge (e.g., manifests,
bills of lading), skills (e.g., keeping the truck and trailer under
control, particularly in difficult weather conditions), and
abilities (e.g., physical and spatial abilities needed to turn
narrow corners).
2. Performance planning
• The second component of the performance management process
involves performance planning.
• Performance planning includes the consideration of results and
behavior as well as a development plan.
• A discussion of results needs to include key accountabilities (i.e., broad
areas for which an employee is responsible), specific objectives for each
key accountability (i.e., goals to be reached), and performance standards
(i.e., what are acceptable and unacceptable levels of performance).
• For example: Consider the job of university professors. Two key
accountabilities are (1) teaching (preparation and delivery of
instructional materials to students) and (2) research (creation and
dissemination of new knowledge).
• A discussion of behaviors needs to include competencies (i.e.,
clusters of KSAs). For example, the sales figures of a
salesperson could be affected more by the assigned sales
territory than by the salesperson’s ability and performance.
• Finally, the development plan includes a description of areas
that need improvement and goals to be achieved in each area.
3. Performance execution
• The third component involves performance execution.
• Both the employee and the manager are responsible for performance
execution. For example, the employee needs to be committed to goal
achievement and should take a proactive role in seeking feedback from
his or her supervisor. The burden is on the employee to communicate
openly and regularly with the supervisor and Collecting and sharing
performance data. Also, the employee has a responsibility to be
prepared for the performance review by conducting regular and
realistic self appraisals.
• On the other hand, the supervisor also has important responsibilities. These
include observing and documenting performance, updating the
employee on any changes in the goals of the organization, and
providing resources and reinforcement so that the employee can
succeed and continue to be motivated.
4. Performance assessment
• The fourth component involves performance assessment.
• Both the employee and the supervisor must evaluate employee
performance.
• Involvement of the employee in the process increases his or her
ownership and commitment to the system.
• In addition, it provides important information to be discussed
during the performance review.
• In the absence of self-appraisals, it is often not clear to
supervisors if employees have a real understanding of what is
expected of them.
5. Performance review
• The fifth component involves performance review when the
employee and manager meet to discuss employee performance.
• This meeting is usually called the appraisal meeting.
• This meeting typically emphasizes the past: what the employee
has done and how it was done.
• An effective appraisal meeting also focuses on the present and
the future. The present involves the changes in
compensation that may result from the results obtained.
The future involves a discussion of goals and development
plans that the employee will be expected to achieve
during the period before the next review session
[Link] renewal and
recontracting.
• The final component involves performance renewal and
recontracting.
• Although this component is identical to the performance
planning stage, this component uses information gathered
during the review period to make adjustments as needed.
• For example, some new key accountabilities and competencies
may be included. Conversely, some goals may have to be
adjusted either upward or downward.