Summary BUS2022S Exam Notes: Performance Section (Chapters 1-8)

Content Overview: Section B Performance
Content
 Chapters 1,2,3,4,5,6,7,8
 Locke & Lathams goal setting theory

, Chapter 1:
Performance
Management & Rewards
Systems in Context

Study Locke & Latham notes with this. Found at end of this
chapter summary

,Introduction
General PM
Definition
 A continuous process of
o Identifying
o Measuring
o Developing
 The performance of
o Individuals
o teams
 And then
o Aligning performance
o with the strategic goals of the organisation

Continuous Process
 Ongoing, never ending process
 What it involves
o Setting goals and objectives
o Observing performance
o Coaching and feedback
 Giving and receiving

Alignment with Strategic Goals
 Requires managers to ensure that
o Employee’s activities and outputs
o Are congruent with
 The organisations goals
 If it achieves this
o Creates link between
 Employee performance
 Organisational goals
o Helps org gain a competitive advantage

Aim
 Transform a person’s
o Talents
o Motivation
 Into a strategic business advantage

Usage
 Few companies have aligned the strategic organisational priorities with
employee performance

,Effect of a PM System
Well implemented PM System
Who benefits
 Employees
 Managers
 Organization

What are the benefits
Increase in motivation to perform
 Caused by receiving feedback about one’s performance

Increased self esteem
 Feedback fulfills the need to be recognized
 This then increased self esteem

Manager gain insight about subordinates
 Supervisors and managers in charge of appraisal
o Are the ones who gain insight
o Gain insight on employees being appraised
 Importance of knowing your employees
o Help build a better relationship with the employee
o Manager will have better understanding of employee’s
contribution

Job definitions and criteria are clarified
 Job of person appraised
o Is more clearly defined
 Employees gain better understanding of what is required
o Specific behaviours
o Specific results

Enhanced self insight and development
 Participants likely to develop better understanding of
o Themselves, helping to guide their career path
 Strengths
 Weaknesses
o The kind of development activities
 That are of value to them
 As they progress through the org

,Fair and appropriate administrative actions
 Provide valid info
o That can be used to make administrative decisions
 Examples of decisions
o Merit increases
o Bonuses
o Promotions
o Transfer
o Termination
 Decisions based on this sound info lead to
o Improved interpersonal relationships
o Enhanced supervisor-subordinate trust

Organisational goals are made clear
 Employee now understands link between
o What she does
o Organisational success
 Improves acceptance of orgs wider goals

Employees become more competent
 Employee performance is improved
 Creates solid foundation for success
o With developmental plans

Minimizes employee misconduct
 Clearly defines and labels misconduct
o Allows it to be identified early on
 Preventing it from leading to irreversible consequences
 Some people still more likely to engage in misconduct
o Personality
o Personal attributes
 Examples of misconduct
o Irregularities
o Churning customer accounts
o Abusing overtime policies
o Giving inappropriate gifts
o Using company resources for personal use

Better protection from law suits
 Helps document compliance with regulations
o Through data collection
 Rather than arbitrary PM
o More likely to result in
 Litigation
 Law suits

,Better & timelier differentiation between good and poor performance
 Quicker identification of the level of performance
o Good performance
o Bad performance
 Forces supervisors to address performance problems timeously
o Before it becomes entrenched and cant be easily remedied

Supervisor’s views of performance are more clearly communicated
 Managers can communicate their performance judgement
o More easily
 Result
o Greater accountability in how managers
 Discuss performance expectations
 Provide feedback

Facilitates organisational change
 Can help drive the organization
o Towards the changes
 How it does this
o Changes PM systems to consider the new skills needed
 This motivates employees to make these changes
 Want a good performance review
 Result
o Employees change performance
o This in turn changes the organisational culture

Decreases employee turnover
Applies to
 Employees who are satisfied with their performance management system
Effect
 More likely to
o Be motivated
 To perform well
o Be committed to the org
o Not try leave the org

Encourages voice behaviour
 Allows employees to engage in voice behaviour
o Leads to improved organisational process
 What voice behaviour involves
o Constructive communication
o Making innovative suggestions
 For improvements
o Challenging the status quo

,Enhances employee engagement
 Employee engagement leads to grater
o Involvement
o Commitment
o Passion
o Empowerment
 Result in behaviours that
o Are innovative
o Demonstrate good organisational citizenship
o Take action in support of the org

, Poorly implemented PM systems
Situation
 When you feel that your performance in a course is not
o going well
o being measured fairly

Result
Increased turnover
 If process is unfair
o Employees become upset
o Leave the organization
 Ways employees leave the org
o Leave physically
 Quit
o Withdraw psychologically
 Minimize effort
 Until able to find job elsewhere

Misleading information
 If standardized system not in place
o Multiple opportunities
o To fabricate information
o About employee’s performance

Lowered self esteem
 Lowered if feedback is
o Provided in an inappropriate way
o Inaccurate
 This then can result in
o Employee resentment

Wasted time and money
 PM systems cost
o Time
o Money
 If poorly designed and implemented
o The resources spent are wasted

Damaged relationships
 Consequence of a deficient PM system
 Can lead to
o Permanent damage
o Temporary damage
 That can be fixed


Decreased motivation to perform