lOMoARcPSD|48680473
- 1-
Downloaded by Vincent kyalo ()
, lOMoARcPSD|48680473
TOPIC 1 (ONE)
- Learning Outcomes
After completing this topic, you should be able to
1. either justify or criticise a shift from performance appraisal to
performance management in managing employee performance
2. recognise the difference between an individual and team
performance management in the organisational context
3. interpret a link between performance management and the
reward system
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 performance management
2. distinguish between performance management and performance
appraisal
3. illustrate by means of a diagram the performance management
process
4. outline the aim and role of performance management in the
organisation
5. explain the contributions a performance management system can
make in the organisation
*******************************
Learning outcome 1
Performance Management can be defined as:
-2-
Downloaded by Vincent kyalo ()
, lOMoARcPSD|48680473
“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: Performance Management is an ongoing. It
involves a never ending process of setting goals and objectives,
observing performance and receiving ongoing coaching and
feedback. Once the end of the process is reached it starts all over
again.
❖ Alignment with Strategic goals: Performance 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. Performance therefore
creates a direct link between employee performance and
organisational goals and makes the employee’s contribution to the
organisation explicit. Performance management systems that do not
make explicit the employee’s contribution to the organisational
goals are not true performance management systems.
Performance Management is characterized with the following qualities:
❖ Performance management is an ongoing process.
❖ Organisational goals should be linked with individuals’ goals.
❖ Performance should be monitored and reviewed, and feedback
provided.
❖ Employee development is crucial to ensure improvement in
employee performance.
The Performance Management Process includes the following steps
(Aguinis 2009 adaptation): (refer to LO 3 – page 5 for full diagram)
❖ Prerequisites
❖ Performance Planning
❖ Performance Execution
❖ Performance Assessment
❖ Performance Review
- 1-
Downloaded by Vincent kyalo ()
, lOMoARcPSD|48680473
❖ Performance Renewal and Re-contracting
Learning outcome 2
Performance management is a forward-looking process, taking frequent
measures as work occurs and responding to small steps forward, while
performance appraisal is a backward-looking process of performance,
measuring what happened in the past.
According to Aguinis (2009:2), performance appraisal refers to a system
that involves employee evaluation once a year without any effort to
provide feedback and coaching so that performance can be improved. It
is a systematic description of an employee’s strengths and weaknesses.
Performance management is more than just evaluating employee
performance. Performance 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 Performance Management and Performance
Appraisal system:
PTO…
-4-
Downloaded by Vincent kyalo ()
- 1-
Downloaded by Vincent kyalo ()
, lOMoARcPSD|48680473
TOPIC 1 (ONE)
- Learning Outcomes
After completing this topic, you should be able to
1. either justify or criticise a shift from performance appraisal to
performance management in managing employee performance
2. recognise the difference between an individual and team
performance management in the organisational context
3. interpret a link between performance management and the
reward system
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 performance management
2. distinguish between performance management and performance
appraisal
3. illustrate by means of a diagram the performance management
process
4. outline the aim and role of performance management in the
organisation
5. explain the contributions a performance management system can
make in the organisation
*******************************
Learning outcome 1
Performance Management can be defined as:
-2-
Downloaded by Vincent kyalo ()
, lOMoARcPSD|48680473
“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: Performance Management is an ongoing. It
involves a never ending process of setting goals and objectives,
observing performance and receiving ongoing coaching and
feedback. Once the end of the process is reached it starts all over
again.
❖ Alignment with Strategic goals: Performance 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. Performance therefore
creates a direct link between employee performance and
organisational goals and makes the employee’s contribution to the
organisation explicit. Performance management systems that do not
make explicit the employee’s contribution to the organisational
goals are not true performance management systems.
Performance Management is characterized with the following qualities:
❖ Performance management is an ongoing process.
❖ Organisational goals should be linked with individuals’ goals.
❖ Performance should be monitored and reviewed, and feedback
provided.
❖ Employee development is crucial to ensure improvement in
employee performance.
The Performance Management Process includes the following steps
(Aguinis 2009 adaptation): (refer to LO 3 – page 5 for full diagram)
❖ Prerequisites
❖ Performance Planning
❖ Performance Execution
❖ Performance Assessment
❖ Performance Review
- 1-
Downloaded by Vincent kyalo ()
, lOMoARcPSD|48680473
❖ Performance Renewal and Re-contracting
Learning outcome 2
Performance management is a forward-looking process, taking frequent
measures as work occurs and responding to small steps forward, while
performance appraisal is a backward-looking process of performance,
measuring what happened in the past.
According to Aguinis (2009:2), performance appraisal refers to a system
that involves employee evaluation once a year without any effort to
provide feedback and coaching so that performance can be improved. It
is a systematic description of an employee’s strengths and weaknesses.
Performance management is more than just evaluating employee
performance. Performance 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 Performance Management and Performance
Appraisal system:
PTO…
-4-
Downloaded by Vincent kyalo ()
