Introduction to Performance Management
Introduction to Performance Management
Performance management is an important HRM process that
provides the basis for improving and developing performance and is part of the
reward system in its most general sense (Armstrong and Baron 2005). Performance
management is a continuous process of ‘‘identifying, measuring, and developing
the performance of individuals and teams and aligning performance with the
strategic goals of the organization’’ (Aguinis, 2013).
Performance
management processes have come to the fore in recent years as means of
providing a more integrated and continuous approach to the management of
performance than was provided by previous isolated and often inadequate merit
rating or performance appraisal schemes (Claus & Hand, 2009). Performance
management is based on the principle of management by agreement or contract rather
than management by command. It emphasizes development, the initiation of self-managed learning plans, and the integration of individual and
corporate objectives. It can, in fact, play a major role in providing an
integrated and coherent range of human resource management processes that are
mutually supportive and contribute as a whole to improving organizational
effectiveness (Scott & Tiessen, 1999). A stronger emphasis on employee
development is reflected in the extent to which appraisees have increased
responsibility for steering performance appraisal and employers are also
placing more emphasis on values, using performance appraisal to highlight the
behaviours expected of staff (Armstrong and Baron 2005)
Performance appraisal can be defined as the formal assessment and rating of individuals by their managers at or after a review meeting. It has been discredited because too often it has been operated as a top-down and largely bureaucratic (C Fletcher 2001)
Performance Management Defined
As Weiss
and Hartle (1997) commented, performance management is: “A process for
establishing a shared understanding about what is to be achieved and how it is
to be achieved and an approach to managing people that increases the
probability of achieving success”.
Managers give employees feedback regarding what progress has been made toward the goals and how personal development plans are faring. In addition, an end-of-the-year review incorporates feedback from several sources, evaluates progress toward objectives, and identifies areas that need improvement. This feedback also includes information on the relationship between employee performance and its alignment with the strategic goals of his or her unit (Nickols, F 2007)
Providing feedback about performance is an important universal because it allows employees to improve performance in the future. In particular, it is better to use a strengths-based approach to delivering feedback. The strengths-based approach involves identifying employees’ strengths, delivering positive feedback on how employees are using their strengths to achieve successful performance, and asking them to maintain or further improve their performance by focusing on their strengths (Aguinis, Gottfredson, and Joo 2012)
Armstrong and Baron (2005) suggest the main value of performance management is to:
- Communicate a shared vision of the purpose and values of the organization.
- Define expectations of what must be delivered and how it should be delivered.
- Ensure that people are aware of what constitutes high performance and how they need to achieve it.
- Enhance motivation, engagement and commitment by providing a means of recognizing endeavour and achievement through feedback.
- Enable people to monitor their own performance and encourage dialogue about what needs to be done to improve performance.
As job roles evolve constantly within organizations, the person rather than the job becomes the key focus of performance management systems. Employers are therefore placing more emphasis on measuring behaviours associated with so-called ‘emotional intelligence because of the assumption that managers who exhibit characteristics such as enthusiasm, honesty, empathy and self-assurance are more effective (Finem 2004). Employer expectations about performance requirements have increased greatly and employees are required to meet specified objectives and to demonstrate required organizational behaviours and values in achieving their targets. In these circumstances, performance appraisals become far more than just an annual ritual and are viewed as a key lever to enhance organizational performance (Gill, D. 1977)
References
- Aguinis, H 2013, Performance management (3rd ed.). “Upper Saddle River” NJ: Pearson Prentice Hall
- Aguinis, H., Gottfredson, R. K., & Joo, H, 2012, “Delivering effective performance feedback”. The strengths-based approach. Business Horizons 55(2), p. 105—11
- Armstrong, M. and Baron, A. 2005: (First edition): “Managing Performance”. Performance Management in Action, London. Chartered Institute of Personnel and Development
- Claus, L., & Hand, M. L. 2009. “Customization decisions regarding performance management systems of multinational companies”. An empirical view of Eastern European firms. International Journal of Cross Cultural Management, p. 237-58
- Fineman, S 2004, “Getting the measure of emotion and the cautionary tale of emotional intelligence, Human Relations”, p. 719-40
- Fletcher, C. 2001, “Performance appraisal and management”. The developing research agenda, Journal of Occupational and Organizational Psychology, p. 474-87
- Gill, D. 1977, “Appraising Performance” Present Trends and the Next Decade, London: Institute of Personnel Management
- Nickols, F. 2007, “Performance Appraisal Weighed and Found Wanting in the Balance”. The Journal for Quality & Participation, Spring, p. 13-16
- Scott, T. W., & Tiessen, P. 1999, “Performance measurement and managerial teams. Accounting, Organizations, and Society, 24(2), p. 107—25
- Weiss, T B and Hartle, F. 1997, “Re-engineering Performance Management, Breakthroughs in achieving strategy through people”, St Luice Press, Boca Raton
According to the Armstrong (1998) performance management is a process which is designed to improve organizational team and individual performance and which is owned and driven by line managers
ReplyDeleteperformance management research shows that a significant number of employees tend to have the desire to perform their jobs well as part of their individual goals as well as a demonstration of loyalty towards the organization (Wright & Cheung, 2007). Arguably, the key to ensuring that employees perform well lies in the ability to provide them with the right working environment. Such an environment generally includes fair treatment, offering of support, effective communication and collaboration. According to Maley (2013)
DeleteGreat article Derrick, according to Armstrong & Taylor, (2014), Performance management is a method of improving results by enabling people to perform well within an agreed framework of planned goals, standards, and competency requirements. It entails developing a shared understanding of what is to be accomplished and how it is to be accomplished.
ReplyDeleteSaratun (2016) recommends that the future research and practice should start considering the objective of an effective performance management process by including engagement, which has not received its due attention in the past. He further indicates that a specific concept of “self” constructed PM and psychological capital proves interesting and provides useful opportunities for both.
DeleteHey Derrick, Furthermore, The process of measuring and subsequently actively managing organizational and employee performance in order to improve organizational effectiveness is currently seen as critical to the development and survival of organizations. Different terms refer to performance management initiatives in organizations, for examples: performance-based budgeting, management-by-objectives, planning, programming and budgeting, and pay-for-performance (Heinrich, 2002)
ReplyDeleteHi Rayan, Performance base budgeting implementation can help organizations to achieve better performance (Crain & O’Roark, 2004; Jongbloed & Vossensteyn, 2001; Lorenz, 2012). The advantage of performance base budgeting implementation is that the mechanism is oriented towards the results or outcomes accomplished (Andrews, 2002). Performance base budgeting is able to concretely specify the relationship between organizational goals, targets, programs, activities, and key performance indicators (KPIs). As such, KPI achievement will lead to the realization of the organization’s goals. (Rahman et al., 2019; Robinson & Last, 2009).
DeleteGreat Derrick, in addition, employee performance management (EPM) is widely acknowledged by experts in human resource management (HRM) as one of the most crucial HR activities (DeNisi and Murphy, 2017), which can direct workers' performance and have a hugely favorable impact on a company's success (Den Hartog et al, 2004).
ReplyDeletePerformance management is not just a top-down process in which managers tell their subordinates what they think about them, set objectives and institute performance improvement plans. It is not something that is done to people. As Buchner (2007) emphasizes, performance management should be something that is done for people and in partnership with them.
DeleteFurthermore, Performance management, in particular, is concerned with aligning individual objectives with organizational objectives and ensuring that individuals uphold corporate core values. It calls for expectations to be defined and agreed upon in terms of role responsibilities and accountabilities (what is expected to be done), skills (what is expected to be possessed), and behaviors (expected to be). The goal is to develop people's capacity to meet and exceed expectations and to realize their full potential for the benefit of both them and the organization. Importantly, performance management is concerned with ensuring that people have access to the support and guidance they require to develop and improve (Armstrong, 2014)
ReplyDeleteThank you for the shared content. Performance management is concerned with: (Armstrong 209)
Delete• Aligning individual objectives to organizational objectives and encouraging individuals to uphold corporate core values
• Enabling expectations to be defined and agreed in terms of role responsibilities and accountabilities (expected to do), skills (expected to have) and behaviours (expected to be)
• Providing opportunities for individuals to identify their own goals and develop their skills and competencies
Good introduction Derrick. Addition to that, the overall objective of performance management is to develop the capacity of people to meet and exceed expectations and to achieve their full potential to the benefit of themselves and the organization. Performance management provides the basis for self-development but importantly, it is also about ensuring that the support and guidance people need to develop and improve is readily available (Armstrong, 2009).
ReplyDeletePerformance management is a systematic process for improving organizational performance by developing the performance of individuals and teams. It is a means of getting better results by understanding and managing performance within an agreed framework of planned goals, standards and competency requirements. As Weiss and Hartle (1997) commented, performance management is: ‘A process for establishing a shared understanding about what is to be achieved and how it is to be achieved and an approach to managing people that increases the probability of achieving success.
DeleteI agree with your content and I would like to add that performance management deals with the challenge organisations face in defining, measuring, and stimulating employee performance with the ultimate goal of improving organisational performance. Thus, performance management involves multiple levels of analysis and is clearly linked to the topics studied in strategic human resource management (HRM) as well as performance appraisal (Hartog, 2004).
ReplyDeleteThe research conducted by Armstrong and Baron (1998, 2004) identified the following 10 principles of performance management as stated by practitioners:
Delete• 1. It’s about how we manage people – it’s not a system.
• 2. Performance management is what managers do: a natural process of management.
• 3. A management tool that helps managers to manage.
• 4. Driven by corporate purpose and values.
• 5. To obtain solutions that work.
• 6. Only interested in things you can do something about and get a visible improvement.
• 7. Focus on changing behaviour rather than paperwork.
• 8. Based on accepted principle but operates flexibly.
• 9. Focus on development not pay.
• 10. Success depends on what the organization is and needs to be in its performance culture.
Good post and agreed to the content. Additionally, according to Jackson & Schuler (2005), performance management is a collection of actions that involves motivating employees through training and goal-setting, as well as evaluating their performance and providing feedback.
ReplyDeleteIt is sometimes assumed that performance appraisal is the same thing as performance management. But there are significant differences. Performance appraisal can be defined as the formal assessment and rating of individuals by their managers at or after a review meeting. It has been discredited because too often it has been operated as a top-down and largely bureaucratic system owned by the HR department rather than by line managers. As Armstrong and Murlis (1998) asserted, performance appraisal too often degenerated into ‘a dishonest annual ritual’. In contrast, performance management is a continuous and much wider, more comprehensive and more natural process of management that clarifies mutual expectations, emphasizes the support role of managers who are expected to act as coaches rather than judges and focuses on the future.
DeleteNice Work Derrick. Den Hartog et al., (2004) explains that performance management deals with the challenge organisations face in defining, measuring, and stimulating employee performance with the ultimate goal of improving organisational performance. They also go on to add that performance management involves multiple levels of analysis and is clearly linked to the topics of strategic human resource management (SHRM) as well as elements of performance appraisal.
ReplyDeletePerformance management is not just a top-down process in which managers tell their subordinates what they think about them, set objectives and institute performance improvement plans. It is not something that is done to people. As Buchner (2007) emphasizes, performance management should be something that is done for people and in partnership with them.
DeleteGreat post Derrick, Performance management now encompasses more than just a collection of distinct methods for assessing and improving employee performance. Instead, it is viewed as an integrated process where managers collaborate with their staff to establish expectations, evaluate and reward performance, and monitor and assess results in order to enhance employee performance with the ultimate goal of enhancing organizational success. Mondy, Noe & Premeaux, (2002).
ReplyDeleteThank you for your comments. Cappelli (2008) wrote that: ‘When employees fail in their jobs, part of the organization also fails.’ Performance management aims to eliminate or at least significantly reduce this possibility. Pulakos (2009) emphasized that: ‘Performance management is the key process through which work gets done. It’s how organizations communicate expectations and drive behaviour to achieve important goals; it’s also about how organizations identify ineffective performers for development programmes or other personnel actions.’
DeleteAgreed. According to Armstrong & Taylor, (2014), Performance management is a method of improving results by enabling people to perform well within an agreed framework of planned goals, standards, and competency requirements. It entails developing a shared understanding of what is to be accomplished and how it is to be accomplished.
ReplyDeletePerformance management is a means of getting better results by providing the means for individuals to perform well within an agreed framework of planned goals, standards and competency requirements. It involves developing a shared understanding about what is to be achieved and how it is to be achieved. The aim is to develop the capacity of people to meet and exceed expectations and to achieve their full potential to the benefit of themselves and the organization (Armstrong 2009).
Delete