Jeremiah
HRM3706 – PERFORMANCE MANAGEMENT - NOTES
MODULE SUMMARY INFORMATION
- Steps when answering questions about a case study
1. Identify the problem
2. Identify the causes of the problem
3. Develop alternative solutions
4. Select the best alternative
5. Develop a strategy (action plan)
- Modules outcomes
1. Demonstrate the ability to explore a shift from performanc e appraisals to performanc e
management
2. Demonstrate a comprehensive knowledge base of an insight into the dynamic s and
challenges related to designing and implementing an integrated performanc e
management system in organisations
3. Demonstrate the ability to explore performanc e management in the organisational
context
4. Design a performanc e management system that incorporates individuals and teams
5. Critically synthesise the strategic nature of performanc e management
TOPIC 1 (ONE)
,- 1-
, 4. design an employee developmental plan in accordance with a specific job
position
Study Unit 1 (ONE) – Performance Management in Context
- Learning Outcomes
After completing this Study Unit, you should be able to
1. explain the concept of performanc e management
2. distinguish between performanc e management and performanc e appraisal
3. illustrate by means of a diagram the performanc e management process
4. outline the aim and role of performanc e management in the organisation
5. explain the contributions a performanc e management system can make in the
organisation
*******************************
Learning outcome 1
Performanc e Management can be defined as:
“A continuous process of identifying, measuring and developing the performance of individuals and
teams, and aligning performance with the strategic goals of the organisation”
This definition is thus composed of 2 main components:
❖ Continuous Process: Performanc e Management is an ongoing. It involves a never ending
process of setting goals and objectives, observing performanc e and receiving ongoing
coaching and feedback. Once the end of the process is reached it starts all over again.
❖ Alignment with Strategic goals: Performanc e management requires managers to ensure
that employees’ activities and output are congruent with the organisation’s goals and
consequently help the organisation gain competitive advantage. Performanc e therefore
creates a direct link between employee performanc e and organisational goals and makes
the employee’s contribution to the organisation explicit. Performanc e management
systems that do not make explicit the employee’s contribution to the organisational goals
are not true performanc e management systems.
Performanc e Management is characterized with the following qualities:
❖ Performanc e management is an ongoing process.
❖ Organisational goals should be linked with individuals’ goals.
❖ Performanc e should be monitored and reviewed, and feedback provided.
❖ Employee development is crucial to ensure improveme nt in employee performanc e.
The Performanc e Management Process includes the following steps (Aguinis 2009 adaptation):
(refer to LO 3 – page 5 for full diagram)
❖ Prerequisites
❖ Performanc e Planning
❖ Performanc e Execution
❖ Performanc e Assessment
❖ Performanc e Review
- 2-
, ❖ Performanc e Renewal and Re-contracting
Learning outcome 2
Performance management is a forward-look ing process, taking frequent measures as work occurs and
responding to small steps forward, while performance appraisal is a back ward-look ing process of
performance, measuring what happened in the past.
According to Aguinis (2009:2), performanc e appraisal refers to a system that involves
employee evaluation once a year without any effort to provide feedback and coaching so that
performanc e can be improved. It is a systematic description of an employee’s strengths a nd
weaknesses. Performanc e management is more than just evaluating employee performanc e.
Performanc e management is an ongoing process rather than a one-off event taking place, for
instance, annually or biannually. It is a comprehensive, continuous and flexible approach to
the management of organisations, teams and individuals which involve the maximum amount
of dialogue between those concerned.
Comparisons between Performanc e Management and Performanc e Appraisal system:
- 3-
HRM3706 – PERFORMANCE MANAGEMENT - NOTES
MODULE SUMMARY INFORMATION
- Steps when answering questions about a case study
1. Identify the problem
2. Identify the causes of the problem
3. Develop alternative solutions
4. Select the best alternative
5. Develop a strategy (action plan)
- Modules outcomes
1. Demonstrate the ability to explore a shift from performanc e appraisals to performanc e
management
2. Demonstrate a comprehensive knowledge base of an insight into the dynamic s and
challenges related to designing and implementing an integrated performanc e
management system in organisations
3. Demonstrate the ability to explore performanc e management in the organisational
context
4. Design a performanc e management system that incorporates individuals and teams
5. Critically synthesise the strategic nature of performanc e management
TOPIC 1 (ONE)
,- 1-
, 4. design an employee developmental plan in accordance with a specific job
position
Study Unit 1 (ONE) – Performance Management in Context
- Learning Outcomes
After completing this Study Unit, you should be able to
1. explain the concept of performanc e management
2. distinguish between performanc e management and performanc e appraisal
3. illustrate by means of a diagram the performanc e management process
4. outline the aim and role of performanc e management in the organisation
5. explain the contributions a performanc e management system can make in the
organisation
*******************************
Learning outcome 1
Performanc e Management can be defined as:
“A continuous process of identifying, measuring and developing the performance of individuals and
teams, and aligning performance with the strategic goals of the organisation”
This definition is thus composed of 2 main components:
❖ Continuous Process: Performanc e Management is an ongoing. It involves a never ending
process of setting goals and objectives, observing performanc e and receiving ongoing
coaching and feedback. Once the end of the process is reached it starts all over again.
❖ Alignment with Strategic goals: Performanc e management requires managers to ensure
that employees’ activities and output are congruent with the organisation’s goals and
consequently help the organisation gain competitive advantage. Performanc e therefore
creates a direct link between employee performanc e and organisational goals and makes
the employee’s contribution to the organisation explicit. Performanc e management
systems that do not make explicit the employee’s contribution to the organisational goals
are not true performanc e management systems.
Performanc e Management is characterized with the following qualities:
❖ Performanc e management is an ongoing process.
❖ Organisational goals should be linked with individuals’ goals.
❖ Performanc e should be monitored and reviewed, and feedback provided.
❖ Employee development is crucial to ensure improveme nt in employee performanc e.
The Performanc e Management Process includes the following steps (Aguinis 2009 adaptation):
(refer to LO 3 – page 5 for full diagram)
❖ Prerequisites
❖ Performanc e Planning
❖ Performanc e Execution
❖ Performanc e Assessment
❖ Performanc e Review
- 2-
, ❖ Performanc e Renewal and Re-contracting
Learning outcome 2
Performance management is a forward-look ing process, taking frequent measures as work occurs and
responding to small steps forward, while performance appraisal is a back ward-look ing process of
performance, measuring what happened in the past.
According to Aguinis (2009:2), performanc e appraisal refers to a system that involves
employee evaluation once a year without any effort to provide feedback and coaching so that
performanc e can be improved. It is a systematic description of an employee’s strengths a nd
weaknesses. Performanc e management is more than just evaluating employee performanc e.
Performanc e management is an ongoing process rather than a one-off event taking place, for
instance, annually or biannually. It is a comprehensive, continuous and flexible approach to
the management of organisations, teams and individuals which involve the maximum amount
of dialogue between those concerned.
Comparisons between Performanc e Management and Performanc e Appraisal system:
- 3-
