Performance management: key points

1
Performance management key points

• PM aims encourage, support, sustain high
  performance of individual, team and organisation
• Is strategic and emphasises vertical and
  horizontal integration of HRM
• Should be flexible and continuous process not
  one-off event
• AMO theory helpful in explaining how to manage
  individual performance
• Is line manager owned and driven

2
Performance management cycle key points

• At operational level performance management can
  be seen as a continuous process or cycle with
  sequential activities
• These activities typically include
• Induction
• Observing and monitoring
• Performance appraisal
• Identifying training and development needs
• Reward and recognition
• Counselling and support

3
Performance managementappraisal key points

• Focuses on reviewing past performance, assessing
  future objectives and development needs
• Most common form downward appraisal conducted by
  line manager
• Other types self-appraisal, upward appraisal,
  peer appraisal, customer appraisal and 360-degree
  appraisal
• Appraisals can be problematic prone to bias,
  time consuming, bureaucratic, difficulties in
  linking with pay

4
Performance management measuring key points

• There are two broad approaches to performance
  measurement objective-based and competency-based
  assessment
• Measurements should be valid, meaningful and
  fair. The SMART acronym is often used to describe
  the key requirements of good target setting
• Performance ratings are often used to grade and
  rank employees performance

5
Performance managementunderperformance key
points

• Performance management provides the opportunity
  to identify and address underperformance
• Formal action includes training, learning and
  development, counselling and support, adjusting
  work duties and redeployment
• Disciplinary procedures should only be used when
  performance has not improved over a period of
  time

6
Performance managementkey roles key points

• Line managers should own and deliver PM at
  operational level
• Line managers need support to overcome problems
  of lack of skills and experience, work overload,
  lack of time, subjectivity
• HR managers have role to play in designing
  policies and supporting line managers
• Senior managers also play key role in setting
  culture and being positive role models

7
Learning summary

• By the end of this chapter you should know
• Meaning and importance of PM
• Role and different types of appraisal
• Different methods of measuring
• Approaches (formal and informal) to managing
  underperformers
• Potential problems in operationalising PM
• Critical role of line managers
• Role of HR and senior managers