Chapter 11
Performance Management
The performance management
process
Individual
Strategic
Performance performance
Business
monitoring review
Objectives
Organization
structure
performance
agreement
Job design and
profiling
HR Consequences
Staffing • Rewards
Individual • T&D
Job performance • Succession Planning
requirements planning • Counselling &
Discipline
Organisational level performance
management approaches
• An objectives-setting approach
• A benchmarking approach
• The balanced scorecard
The objectives-setting approach
• Typified by Management By Objectives (MBO)
• Seeks to link strategic intent with day to day
organisational activity
• Process
• Set a clear purpose and vision
• Break it down into supporting goals, objectives, and
strategy
• These goals and objectives are cascaded down to the
various divisions, sections, or departments of the
organisation
• MBO relies on the manager and the employee
collaborating in the setting of objectives, allowing the
employee to be involved in, and to manage, his or her
own performance
Benchmarking
• Emphasises the identification of best
practise standards that the organisation
tries to emulate through continuous
improvement
The balanced scorecard
• Combines the measurements of four
perspectives of performance:
• Financial
• How do shareholders define financial success?
• Customer
• How do our customers see us and what must we do to
keep them satisfied?
• Internal business processes
• What internal business processes should the
organisation be excellent in, to keep both customers
and shareholders satisfied?
• Learning and growth
• How does the organisation sustain its ability to develop
and improve in key areas?
The performance management
process
Step 1: Strategic business objectives
Step 2: Meeting to agree on personal
objectives
Step 3: Assessing performance
Step 4: Meeting to review
performance
• “what you measure is what you get –
what you reward is what you get. By not
aligning measurements and rewards,
you often get what you’re not looking
for”
• Jack Welch, 2001
Step 3: Assessing performance
• Continuous feedback
• Formal reviews
• Methods of appraisal
• Objective setting (SMART)
• Critical incident technique
• Comparative rankings
• Ranking
• Paired comparison ranking
• Forced distribution
• Behavioural approaches
• Behavioural checklists
• Behaviourally anchored rating scales (Bars)
• 360-degree feedback
Key characteristics of objectives
• specific: something to aim towards
• measurable: to permit objectivity
• acceptable: not imposed upon someone
• realistic and reasonable: within reach
• time bound or deadlined: with completion
dates and interim targets
• clear: to avoid misinterpretation
• flexible: revisable along the route
• prioritised: arranged in order of importance
• several: more than one but not too many
A forced-distribution method of
appraisal
360-degree feedback to an
employee
Step 4: Meeting to review
performance
• Preparation and set up
• Starting the discussion
• Giving effective feedback during the meeting
• Specific rather than general
• Focuses on behaviour rather than on the person
• Takes the needs of the receiver of the feedback into
account
• Aimed at behaviour about which the receiver can do
something
• More effective when it is requested than when it is forced
on a person
• Sharing of information rather than giving advice
• Timing
• Contains only the amount of information the receiver can
use, rather than the amount the evaluator can impart
• Involves what was said or done and how, but not why
• Is checked to ensure clear communication
Managing poor performance
Step 1: Agree that there is a problem
and what the problem is
Step 2: Explore and identify reasons
Step 3: Agree on corrective action
Step 4: Implement corrective action
Step 5: Monitor Progress
Counselling employees for
performance
Stage 1: Identifying and exploring the
problem
Stage 2: Understanding the problem
Stage 3: Action planning
Stage 4: Managing the problem
Managing absenteeism, alcoholism
& HIV/AIDS in the workplace
• Some issues related to poor performance need to be
sensitively managed such as excessive absenteeism,
alcoholism or drug addiction and HIV/AIDS
• Absenteeism is unauthorised leave and for it to
constitute misconduct the employee must be at fault
• When dealing with absenteeism that results from ill
health or injury the employer should have regard for the
Code of Good Practice on Dismissal as set out in
Chapter 14
• Similarly, the employer must determine whether an
employee under the influence of alcohol or drugs
represents misconduct or incapacity as the employer
has a duty to assist employees who are unable to
perform their duties due to incapacity
Managing absenteeism, alcoholism
& HIV/AIDS in the workplace cont
• A Code of Good Practice on key aspects of HIV/AIDS has
been published and provides guidelines for employers,
employees and trade unions on how to manage
HIV/AIDS in the workplace
• The Code provides guidelines for ensuring a non-
discriminatory working environment as well as ways to
try and support a person affected by HIV/AIDS to work
productively for as long as possible