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STUDY UNIT 2

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Study Unit 2: Performance Management Process

Learning outcomes:
1. Apply the stages of the performance management process step by step in the organisational
context

1. Prerequisites Stage
 Two important prerequisites for the implementation of the performance management
system are;
 Knowledge of the organisation’s mission and strategic goals
o To ensure that these strategic goals cascade down the organisation and lead to
concrete actions, a conscious effort must be made to link them with individual
performance.
o A link should cascade from the organisation’s strategic plans, unit strategic plans,
job descriptions and individual and team performance.
o There is widely documented evidence that performance management systems have
a critical role in translating strategy into action.
o Organisation’s mission statement = refers to a statement of what the organisation
is all about
o Organisation’s vision statement = refers to the statement of where the organisation
intends to be in the long run (10 years)
o Organisational goals = refer to a statement of what the organisation hopes to
achieve in the medium-to-long-range period (i.e. in the next 3 years or so)
o Organisation’s strategies = refer to the description of game plans or the how-to
procedures in an endeavour to fulfil the mission and vision statements, as well as
how to achieve the stated goals.

 Knowledge of the job in question
o Done due to the process of job analysis.
o Job analysis = refers to a process of determining the key component of a particular
job, including activities and processes. Without it, it is difficult to understand what
constitutes the required duties for a particular job.
o As a result of a job analysis we obtain information on the task to be carried out and
the knowledge, skills and abilities required for a particular job.
o The two products of job analysis are the job description and job specification.
o Common methods for conducting job analysis. Observation, interview &
questionnaire.

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