Summary
LCR4802
Summarised
Study Notes
, HRM3706
EXAM PREP NOTES – PERFORMANCE MANAGEMENT
Study Unit 1
1. Origins of Performance Management
o 1950’s – personality-based appraisals
o 1960’s – goal setting and assessment of performance related
abilities (competencies)
o 1980’s – and whole of 1990’s – rapid and successive change –
Fletcher performance appraisals = central mechanism and more holistic
approach to managing people and business – manager does work by
getting people to do theirs. More performance orientated. More core
management process
2. Defining Performance management
o Aguinis = continuous process of identifying and developing
performance of individuals and teams – aligning with strategic goals of
organisation
o Two main components
Continuous process: ongoing – never ending process of
setting goals and objectives, observing performance and ongoing
coaching and feedback.
Alignment with strategic goals: managers to ensure that
activities by employees are congruent with organisation goals and help
to gain competitive advantage
3. Performance Mangement Process
3.1. Step 1: Prerequisite
3.1.1. 2 prerequisites
o Knowledge of the organisation mission and strategic goals
o Knowledge of the job
3.2. Step 2: Performance planning
o Meeting between supervisor and employee at beginning of PM cycle
o Process discussed and agreed upon
o What and how needs to be done
o Also results and behaviours and development plan
3.3. Step 3: Performance planning
o Meeting between supervisor and employee at beginning of PM cycle
o Process discussed and agreed upon
o What and how needs to be done
o Also results and behaviours and development plan
3.4. Step 4: Performance assessment
o Both employee and manager responsile to evaluate extent to which
behaviours displayed
o Was results achieved
o Includes evaluation of extent to which goal stated in developmental
plan achieved
3.5. Step 5: Performance Review
o Meeting between employee and manager to review assessment
Page 1 of 56
, o Called appraisal meeting
o Receives feedback on performance
3.6. Step 6: Performance renewal/recontracting
o Final stage
o Identical to performance planning stage
4. Distinction between performance management and appraisal
4.1. Aguinis: system that involves emplyhee evaluation once a year without any
effort so provide feedback and coaching to improve performance. Systematic
description of strengths and weaknesses
4.2. Ongoing process not once off event
4.3. Performamce management is a forward looking process with regular measures
to look at performance and take steps forward
4.4. Performance appraisal – backwards looking process to measure what is past
5. Aim and role of performance management in the organisation
5.1. Information used for salary administration, performance feedback and
identification of employee strengths and weaknesess.
5.2. According to Aguinis performance management PM serve six purposes:
5.2.1. Strategic purpose:
help achieve strategic business objectives
link org gaols with individual goals – system reinforce behaviour to
attain goals
serves as way to communicate what most crucial business strategic
initiatives are
5.2.2. Administrative purpose:
Furnish valid/useful information to make admin decisions on
employees
E.g. salary adjustments, promotions, retention/termination,
recognition of performance, id poor performers, layoffs, merits
Implementation of reward system – admin purpose
5.2.3. Informational purpose
Nb comm. Device
Informs employees how they doing and where improvement needed
Information on supervisor/organisation expectations and what is
most important
Serves as tool of communication between management end
subordinates
5.2.4. Developmental purpose
Use information to coach employees and improve performance
ongoing
Id strengths and weaknesses and causes for deficiencies
Discussed in stage 2 of process
5.2.5. Organisational maintenance purpose
Information to be used in workforce planning
Respond to needs arising from inside/outside the orginasion,
determine priorities, and allocate human resources
One nb aspect is talent inventory (info on current resources – skills,
abilities, potential and assignment history)
Primary system by which to get accurate talent inventories
Assessment of future training needs, evaluation of performance
achievements at org level and evaluation of effectiveness of HR
interventions
Try to keep what is currently in talent inventory
Page 2 of 56
, 5.2.6. Documentation purpose
Data used to validate newly proposed selection instruments
Documentation of important administrative decisions – useful in
court cases
Assist in applying consistency in decision making
6. Contribution of performance management to employees and
organisation
6.1. Motivation to perform increased – receive feedback increase motivation for
future performance
6.2. Self-esteem raised – feedback = need for recognition satisfied
6.3. Managers gain insight into subordinates – help manager build better
relationships
6.4. Definition of job and criteria clarified
6.5. Self-insight and development are enhanced
6.6. Administrative actions are more fair and appropriate
6.7. Organisational goals are made clear
6.8. Employees become more competent
6.9. Thrre is better protection from court cases
6.10. Better and more timely differentiation between good and poor performers
6.11. Managers view of performance is communicated more clearly
6.12. Organisational change is facilitated
6.13. Motivation, commitment and intention to stay in organisation are enhanced
7. Conditions for the successful implementation of performance
management
7.1. Convey reasons for such a system to all participants
7.2. Ensure top management commitment to system
7.3. All participants should take part in development of system
7.4. Org culture should be characterised by delivering outputs
7.5. All mangers should be properly trainined
7.6. Should not be implemented in isolation. Other HR systems should allow for PM
system (training and development, job evaluation, remuneration and provision
of staff)
8. PM Policy
8.1. Must be policy to ensure buy in by managers and personnel
8.2. Should provide clearer guidance on how to deal with performance and
capability
8.3. Does not relate to issues re ill-health
Page 3 of 56
LCR4802
Summarised
Study Notes
, HRM3706
EXAM PREP NOTES – PERFORMANCE MANAGEMENT
Study Unit 1
1. Origins of Performance Management
o 1950’s – personality-based appraisals
o 1960’s – goal setting and assessment of performance related
abilities (competencies)
o 1980’s – and whole of 1990’s – rapid and successive change –
Fletcher performance appraisals = central mechanism and more holistic
approach to managing people and business – manager does work by
getting people to do theirs. More performance orientated. More core
management process
2. Defining Performance management
o Aguinis = continuous process of identifying and developing
performance of individuals and teams – aligning with strategic goals of
organisation
o Two main components
Continuous process: ongoing – never ending process of
setting goals and objectives, observing performance and ongoing
coaching and feedback.
Alignment with strategic goals: managers to ensure that
activities by employees are congruent with organisation goals and help
to gain competitive advantage
3. Performance Mangement Process
3.1. Step 1: Prerequisite
3.1.1. 2 prerequisites
o Knowledge of the organisation mission and strategic goals
o Knowledge of the job
3.2. Step 2: Performance planning
o Meeting between supervisor and employee at beginning of PM cycle
o Process discussed and agreed upon
o What and how needs to be done
o Also results and behaviours and development plan
3.3. Step 3: Performance planning
o Meeting between supervisor and employee at beginning of PM cycle
o Process discussed and agreed upon
o What and how needs to be done
o Also results and behaviours and development plan
3.4. Step 4: Performance assessment
o Both employee and manager responsile to evaluate extent to which
behaviours displayed
o Was results achieved
o Includes evaluation of extent to which goal stated in developmental
plan achieved
3.5. Step 5: Performance Review
o Meeting between employee and manager to review assessment
Page 1 of 56
, o Called appraisal meeting
o Receives feedback on performance
3.6. Step 6: Performance renewal/recontracting
o Final stage
o Identical to performance planning stage
4. Distinction between performance management and appraisal
4.1. Aguinis: system that involves emplyhee evaluation once a year without any
effort so provide feedback and coaching to improve performance. Systematic
description of strengths and weaknesses
4.2. Ongoing process not once off event
4.3. Performamce management is a forward looking process with regular measures
to look at performance and take steps forward
4.4. Performance appraisal – backwards looking process to measure what is past
5. Aim and role of performance management in the organisation
5.1. Information used for salary administration, performance feedback and
identification of employee strengths and weaknesess.
5.2. According to Aguinis performance management PM serve six purposes:
5.2.1. Strategic purpose:
help achieve strategic business objectives
link org gaols with individual goals – system reinforce behaviour to
attain goals
serves as way to communicate what most crucial business strategic
initiatives are
5.2.2. Administrative purpose:
Furnish valid/useful information to make admin decisions on
employees
E.g. salary adjustments, promotions, retention/termination,
recognition of performance, id poor performers, layoffs, merits
Implementation of reward system – admin purpose
5.2.3. Informational purpose
Nb comm. Device
Informs employees how they doing and where improvement needed
Information on supervisor/organisation expectations and what is
most important
Serves as tool of communication between management end
subordinates
5.2.4. Developmental purpose
Use information to coach employees and improve performance
ongoing
Id strengths and weaknesses and causes for deficiencies
Discussed in stage 2 of process
5.2.5. Organisational maintenance purpose
Information to be used in workforce planning
Respond to needs arising from inside/outside the orginasion,
determine priorities, and allocate human resources
One nb aspect is talent inventory (info on current resources – skills,
abilities, potential and assignment history)
Primary system by which to get accurate talent inventories
Assessment of future training needs, evaluation of performance
achievements at org level and evaluation of effectiveness of HR
interventions
Try to keep what is currently in talent inventory
Page 2 of 56
, 5.2.6. Documentation purpose
Data used to validate newly proposed selection instruments
Documentation of important administrative decisions – useful in
court cases
Assist in applying consistency in decision making
6. Contribution of performance management to employees and
organisation
6.1. Motivation to perform increased – receive feedback increase motivation for
future performance
6.2. Self-esteem raised – feedback = need for recognition satisfied
6.3. Managers gain insight into subordinates – help manager build better
relationships
6.4. Definition of job and criteria clarified
6.5. Self-insight and development are enhanced
6.6. Administrative actions are more fair and appropriate
6.7. Organisational goals are made clear
6.8. Employees become more competent
6.9. Thrre is better protection from court cases
6.10. Better and more timely differentiation between good and poor performers
6.11. Managers view of performance is communicated more clearly
6.12. Organisational change is facilitated
6.13. Motivation, commitment and intention to stay in organisation are enhanced
7. Conditions for the successful implementation of performance
management
7.1. Convey reasons for such a system to all participants
7.2. Ensure top management commitment to system
7.3. All participants should take part in development of system
7.4. Org culture should be characterised by delivering outputs
7.5. All mangers should be properly trainined
7.6. Should not be implemented in isolation. Other HR systems should allow for PM
system (training and development, job evaluation, remuneration and provision
of staff)
8. PM Policy
8.1. Must be policy to ensure buy in by managers and personnel
8.2. Should provide clearer guidance on how to deal with performance and
capability
8.3. Does not relate to issues re ill-health
Page 3 of 56
