Unit 1
Learning Outcomes
• Explain the concept of performance management
• Dis6nguish between performance management and performance appraisal
• Illustrate by means of a diagram the performance management process
• Outline the aim and role of performance management in the organisa6on
• Explain the contribu6ons a performance management system can make in the
organisa6on
, Learning outcome 1
Explain the concept of performance management
Performance Management can be defined as:
“A con2nuous process of iden2fying, measuring & developing the performance of
individuals & teams, & aligning performance with the strategic goals of the organisa2on”
This defini6on is thus composed of 2 main components:
• Con2nuous Process:
It involves a never ending process of seGng goals and objec6ves, observing performance
and receiving ongoing coaching and feedback. Once the end of the process is reached it
starts all over again.
• Alignment with Strategic goals:
Requires managers to ensure that employees’ ac6vi6es and output are congruent with
the organisa6on’s goals and consequently help the organisa6on gain compe66ve
advantage. Creates a direct link between employee performance and organisa6onal goals
and makes the employee’s contribu6on to the organisa6on explicit. Performance
management systems that do not make explicit the employee’s contribu6on to the
organisa6onal goals are not true performance management systems.
Learning Outcomes
• Explain the concept of performance management
• Dis6nguish between performance management and performance appraisal
• Illustrate by means of a diagram the performance management process
• Outline the aim and role of performance management in the organisa6on
• Explain the contribu6ons a performance management system can make in the
organisa6on
, Learning outcome 1
Explain the concept of performance management
Performance Management can be defined as:
“A con2nuous process of iden2fying, measuring & developing the performance of
individuals & teams, & aligning performance with the strategic goals of the organisa2on”
This defini6on is thus composed of 2 main components:
• Con2nuous Process:
It involves a never ending process of seGng goals and objec6ves, observing performance
and receiving ongoing coaching and feedback. Once the end of the process is reached it
starts all over again.
• Alignment with Strategic goals:
Requires managers to ensure that employees’ ac6vi6es and output are congruent with
the organisa6on’s goals and consequently help the organisa6on gain compe66ve
advantage. Creates a direct link between employee performance and organisa6onal goals
and makes the employee’s contribu6on to the organisa6on explicit. Performance
management systems that do not make explicit the employee’s contribu6on to the
organisa6onal goals are not true performance management systems.
