HRM3706 EXAM
PACK 2023
UPDATED REVISION
PACK
,HRM 3706 Exam Preperations
,Prerequisite stage {1 mark)
This is where the mission and strategic goals of the organisation, as well as the details of the job in
question are clarified. (1 mark)
Therefore, the omission of this stage will result in employees and departmental managers not knowing
exactly how they can contribute to the achievement of the goals of the organisation as a whole. In other
words, they will not know what is expected of them. (2 marks)
Planning stage (1 mark)
This is the stage in which the manager clarifies to the employees the results and behaviour expected
from them, and collectively reaches an agreement on the developmental plan for the employee. (1 mark)
The omission of this stage will therefore imply that employees may not be performing according to the
required standards since they are not aware of the standard expected of them. Managers will not be
able to measure the performance of employees if no standards in terms of results and behaviours have
been set. (2 marks)
Performance execution (1 mark)
This is the stage in which employees are striving to achieve the goals they agreed upon, as per
, developmental plans. In other words, employees should at this stage monitor themselves to see if they
are on the right track; that is, if they are likely to achieve what they agreed upon in the planning stage.
{1 mark)
The omission of this stage would therefore result in employees waiting until serious problems develop
since they would be not sure whether they were on the right track. This could lead to many problems for
both the employee and the organisation. Employees should be proactive in their approach to their work.
(2 marks)
Performance assessment (1 mark)
This is the evaluation stage, whereby the employer and the manager are responsible for assessing the
extent to which the desired behaviour has been displayed and whether the desired results have been
achieved, as well as the extent to which the goals stated in the developmental plan have been
accomplished. {2 marks)
Therefore, the omission of this stage would result in the same underperformance as the previous cycle
(if this was the case) on the side of employees. This is because there would not be any attempt to
identity problem areas, so employees would merely continue performing in the same way. For instance,
it would be not known whether the goals of,.the developmental plans were being achieved, or whether
the results were achieved, or what actions are to be taken to improve employee performance. (2 marks)
Performance review (1 mark)
This stage involves meetings between the employee and the manager in which employees receive
feedback on their performance. Based on the outcomes of this meeting, employees are rewarded or are
required to revisit their developmental plans and make the necessary adjustments to ensure improvements in
the future. (1 mark)
The omission of this stage would deny employees the opportunity to be rewarded for their outstanding
performances; as well as the opportunity to improve their future performance. (2 marks)
Performance renewal and recontracting (1 mark)
This is the stage where the information gathered from other stages is analysed so that the correct action
can be taken in the next cycle. (1 mark)
The omission of this stage would result in managers having no idea as to what actions are to be taken in
order to improve future performance. In other words, they would not have a clue as to what is wrong with
the current situation, how it went wrong and how to rectify it since no effort was made to analyse the
system. {2 marks}
Consequences of poorly implemented PMS
1. Increased turnover. If the process is not seen as fair, employees may become upset and leave
the organization. They can leave physically (i.e., quit) or withdraw psychologically (i.e., minimize
their effort until they are able to find a job elsewhere).
2. Use of misleading information. If a standardized system is not in place, there are multiple
opportunities for fabricating information about an employee’s performance.
3. Lowered self-esteem. Self-esteem may be lowered if feedback is provided in an inappropriate
and inaccurate way. This, in turn, can create employee resentment.
4. Wasted time and money. Performance management systems cost money and quite a bit of
time. These resources are wasted when systems are poorly designed and implemented.
5. Damaged relationships. As a consequence of a deficient system, the relationship among the
individuals involved may be damaged, often permanently.
6. Decreased motivation to perform. Motivation may be lowered for many reasons, including the
feeling that superior performance is not translated into meaningful tangible (e.g., pay increase) or
intangible (e.g., personal recognition) rewards.
7. Employee burnout and job dissatisfaction. When the performance assessment instrument is
not seen as valid and the system is not perceived as fair, employees are likely to feel increased
levels of job burnout and job dissatisfaction. As a consequence, employees are likely to become
increasingly irritated.
PACK 2023
UPDATED REVISION
PACK
,HRM 3706 Exam Preperations
,Prerequisite stage {1 mark)
This is where the mission and strategic goals of the organisation, as well as the details of the job in
question are clarified. (1 mark)
Therefore, the omission of this stage will result in employees and departmental managers not knowing
exactly how they can contribute to the achievement of the goals of the organisation as a whole. In other
words, they will not know what is expected of them. (2 marks)
Planning stage (1 mark)
This is the stage in which the manager clarifies to the employees the results and behaviour expected
from them, and collectively reaches an agreement on the developmental plan for the employee. (1 mark)
The omission of this stage will therefore imply that employees may not be performing according to the
required standards since they are not aware of the standard expected of them. Managers will not be
able to measure the performance of employees if no standards in terms of results and behaviours have
been set. (2 marks)
Performance execution (1 mark)
This is the stage in which employees are striving to achieve the goals they agreed upon, as per
, developmental plans. In other words, employees should at this stage monitor themselves to see if they
are on the right track; that is, if they are likely to achieve what they agreed upon in the planning stage.
{1 mark)
The omission of this stage would therefore result in employees waiting until serious problems develop
since they would be not sure whether they were on the right track. This could lead to many problems for
both the employee and the organisation. Employees should be proactive in their approach to their work.
(2 marks)
Performance assessment (1 mark)
This is the evaluation stage, whereby the employer and the manager are responsible for assessing the
extent to which the desired behaviour has been displayed and whether the desired results have been
achieved, as well as the extent to which the goals stated in the developmental plan have been
accomplished. {2 marks)
Therefore, the omission of this stage would result in the same underperformance as the previous cycle
(if this was the case) on the side of employees. This is because there would not be any attempt to
identity problem areas, so employees would merely continue performing in the same way. For instance,
it would be not known whether the goals of,.the developmental plans were being achieved, or whether
the results were achieved, or what actions are to be taken to improve employee performance. (2 marks)
Performance review (1 mark)
This stage involves meetings between the employee and the manager in which employees receive
feedback on their performance. Based on the outcomes of this meeting, employees are rewarded or are
required to revisit their developmental plans and make the necessary adjustments to ensure improvements in
the future. (1 mark)
The omission of this stage would deny employees the opportunity to be rewarded for their outstanding
performances; as well as the opportunity to improve their future performance. (2 marks)
Performance renewal and recontracting (1 mark)
This is the stage where the information gathered from other stages is analysed so that the correct action
can be taken in the next cycle. (1 mark)
The omission of this stage would result in managers having no idea as to what actions are to be taken in
order to improve future performance. In other words, they would not have a clue as to what is wrong with
the current situation, how it went wrong and how to rectify it since no effort was made to analyse the
system. {2 marks}
Consequences of poorly implemented PMS
1. Increased turnover. If the process is not seen as fair, employees may become upset and leave
the organization. They can leave physically (i.e., quit) or withdraw psychologically (i.e., minimize
their effort until they are able to find a job elsewhere).
2. Use of misleading information. If a standardized system is not in place, there are multiple
opportunities for fabricating information about an employee’s performance.
3. Lowered self-esteem. Self-esteem may be lowered if feedback is provided in an inappropriate
and inaccurate way. This, in turn, can create employee resentment.
4. Wasted time and money. Performance management systems cost money and quite a bit of
time. These resources are wasted when systems are poorly designed and implemented.
5. Damaged relationships. As a consequence of a deficient system, the relationship among the
individuals involved may be damaged, often permanently.
6. Decreased motivation to perform. Motivation may be lowered for many reasons, including the
feeling that superior performance is not translated into meaningful tangible (e.g., pay increase) or
intangible (e.g., personal recognition) rewards.
7. Employee burnout and job dissatisfaction. When the performance assessment instrument is
not seen as valid and the system is not perceived as fair, employees are likely to feel increased
levels of job burnout and job dissatisfaction. As a consequence, employees are likely to become
increasingly irritated.
