Performance Management. An Introduction

1.

Performance
Management
An Introduction

2.

What is performance management?
Performance management is a holistic process by
which managers and employees work together to
plan, monitor and review an employee's work
objectives and overall contribution to the
organization.
Performance management is the continuous
process of setting objectives, assessing progress and
providing on-going feedback to ensure that
employees are meeting their objectives and career
goals.

3.

Why should we manage
performance?
By managing the performance of the individual
and team, departmental and organisational
performance will follow and by raising individual
and team levels of performance, organisational
performance will also improve.
When performance of individuals is not
managed, this can lead to frustration and
discontent amongst team members.

4.

Why is it important?
Performance management establishes shared
understanding of what is to be achieved and
provides an approach to leading and
developing people that will ensure it is achieved
it is an essential element of any managerial role
and will support a manager’s/ supervisors
relationship with individuals in a team.

5.

Performance Management in Practice
It helps managers and employees:
Work towards common goals
Gain a clear understanding of job expectations
Receive regular feedback about performance
Receive advice and learn steps for improving
performance
Get rewarded for good performance

6.

The role of line managers
Line managers ensure that the people or teams they
manage:
know and understand what is expected of them
have the skills and ability to deliver on these
expectations
are supported by the organisation in developing the
capacity to meet these expectations
are given feedback on their performance
have the opportunity to discuss and contribute to
individual and team aims and objectives.

7.

Benefits of performance management
Luecke (2006), identifies three reasons to explain why
performance management matters:
Shareholders (those with a vested interest in the
organization) observe better results, because the human
assets of the organization are top-notch and working in
unison toward key goals
Managers are more successful, because their
subordinates are doing the right things correctly
Employees experience greater job security, career
advancement, and better paychecks, thanks to
outstanding performance

8.

Challenges of Performance
Management
If performed incorrectly, an unsuccessful performance
management system can have negative consequences
on the organization. Aguinis (2007, 9) identifies the
following dangers of a poorly executed system:
Increased turnover
Use of misleading information (if performed improperly,
an employee’s performance appraisal can be
incorrect)
Lowered self-esteem
Wasted time and money
Damaged relationships

9.

Challenges of Performance
Management…continued
Decreased motivation to perform
Employee burnout and job dissatisfaction
Increased risk of litigation
Unjustified demands on managers’ resources
Varying and unfair standards and ratings
Emerging biases
Unclear ratings systems