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performance management

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Human Resource Management (HRM) focuses on effectively managing people within an organization to achieve both individual and organizational goals. Key HRM functions include recruitment and selection, training and development, performance management, compensation, and employee relations. By fostering a positive work environment and aligning HR strategies with business objectives, HRM plays a vital role in enhancing employee motivation, productivity, and retention. Ultimately, successful HRM contributes to a more engaged workforce and supports long-term organizational success.

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Lecture 9

Performance management

Learning outcomes:

1. EXPLAIN: PERFORMANCE MANAGEMENT PROCESS AND PERFORMANCE APPRAISAL

2. THE ORIGIN AND THEORIES

3. PERFORMANCE APPRAISAL METHODS: ADVANTAGES AND DISADVANTAGES

4. POSITIVE AND NEGATIVE SIDE OF 360 DEGREE SYSTEM

5. THE COMMON APPRAISAL PROBLEMS

6. HOW TO CONDUCT AN EFFECTIVE APPRAISAL FEEDBACK INTERVIEW


Definition of performance management:
1. Continuous process of
o Identifying
o Measuring
o Developing …
 The performance of individuals and team
2. Aligning performance with the strategic goals of the organisation

An ongoing process – throughout the year – it never stops

- About motivation individuals and the orgs to make a contribution to the company’s
strategy
- Not about managing somebody out of the organisation

Performance management:
administrative = A way for
an org to use performance
system to get info on a day-
to-day business to make
decisions about employee
salaries/ benefits etc.

Strategic = helping the
business to achieve its
objectives – linking
employees’ behaviour with
the org goals

, Developmental = to develop employees’ knowledge and schemes and to help employees
meet expectations so they become more valuable – can get feedback f their performance


Performance management process:




Theoretical basis for performance management:
- Originated in the US – motivation theory
- Goal setting theory (Locke and Latham 1984)
- Expectancy theory (Vroom 1964)

RE LISTEN TO THE KECTURE AND WRITE DOWN WHAT THESE TWO THEORUES ARE

Performance appraisal:
- “Appraisals regularly record an assessment of an employee’s performance, potential
and development needs. The appraisal is an opportunity to take an overall view of
work content, loads and volume, to look back on what has been achieved during the
reporting period and agreed objectives for the next”
 ACAS (2008 cited in Foot and Hook, 2011: 259

What does the performance appraisal help the company with?
- A way to give employees feedback on their performance at work
- To investigate how the employee is feeling within his role
- To provide further training for training needs of employees – a way to measure
whether training Is needed
- To help in their career development
- To clarify the objectives of the job for the employee to make it more clear
- To help employees know what is expected of them
- Used in HR planning for the future

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November 2, 2025
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2023/2024
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