What is Performance Management ?

 Introduction 

Performance management is a vital process that firms use to improve employee performance, promote productivity, and accomplish company goals. It entails a systematic approach to employee performance planning, monitoring, measuring, and assessing to ensure that it matches with company goals and expectations. Performance management involves a wide variety of activities, such as goal setting, performance evaluations, feedback, coaching, and development, and is critical for firms to foster a performance-driven culture. 



What is Performance 


Assessment of Performance entails the evaluation of inputs and outputs (Brumbach, 1988)

Performance management is a comprehensive process that involves several interconnected components, including performance planning, performance monitoring, performance assessment, and performance feedback (Aguinis, 2013). Performance planning entails setting clear expectations and goals for employees and aligning them with the organization's strategic objectives.


What are the theories under performance management 

Goal Theory: goals help employees to define priorities, consider what skills to apply and serve to motivate.
 (Latham and Locke, 1979)

Control Theory: feedback with shape behaviors, identify ‘discrepancies’ between desired and actual performance. 
(Armstrong, 2017)

Social Cognitive Theory: self-efficacy
(Bandura, 1986)



Performance management is a systematic process used by organizations to measure, manage, and improve employee performance to achieve organizational goals. It typically involves several key components, which may include:



Planning for performance

The manager must know the criteria for success or failure, in order to assess performance.
Specifically, the manager must be aware of the knowledge, skills and abilities (KSAs) needed to do the job competently.
The KSAs and criteria for job success should be explicit in the relevant job descriptions. 

Supporting performance

Maintaining continuous awareness of how the employee is performing, and giving feedback on this on a mainly informal basis. 
Revising initial objectives, standards, key accountabilities and competency areas if required without waiting for scheduled formal performance appraisal meetings.
Supporting Personal Development Plans. 


Assessing performance

A performance assessment involves applying and showing skills and knowledge through various performance tasks. 
The purpose of a performance assessment is to improve the student learning experience and evaluate the effectiveness of lesson plans.

Goal setting: 

This involves establishing clear and measurable performance objectives or goals for employees, aligned with the organization's overall objectives. These goals should be specific, achievable, relevant, and time-bound (SMART), and should provide a clear direction for employees to work towards


The following areas will be addressed and discussed in depth: fundamental performance management 

1. Goal setting: 

2. Performance measurement

3. Feedback and coaching

4. Development and training

5. Recognition and rewards

6. Performance improvement plans

7. Performance documentation

8. Performance-related decision-making

9. Continuous improvement


Conclusion

Performance management is a comprehensive process that involves several interconnected components, including performance planning, performance monitoring, performance assessment, and performance feedback (Aguinis, 2013). Performance planning entails setting clear expectations and goals for employees, and aligning them with the organization's strategic objectives. This includes defining key performance indicators (KPIs), setting performance targets, and establishing performance criteria that are specific, measurable, achievable, relevant, and time-bound (SMART). Performance monitoring involves tracking employee performance over time, providing regular feedback, and identifying areas for improvement. Performance assessment is the formal evaluation of an employee's performance against established performance criteria, typically conducted through performance reviews or appraisals. Performance feedback involves providing employees with information about their performance, recognizing their achievements, and addressing any performance gaps



Reference

 Duncan, C. Deskalerts.Managing Employee Performance [Online] Available at <https://www.alert-software.com/blog/employee-performance-management>. [Accessed 16th April 2023].


Herrity, J.(2022).Indeed. Career development.Guide on How To Write SMART Goals (With Examples).[Online] Available at <https://www.indeed.com/career-advice/career-development/how-to-write-smart-goals>. [Accessed 16th April 2023].


Sajwani,M.Linkedin.Effective Organisational Goal Setting: 5 Benefits

[Online] Available at <https://www.linkedin.com/pulse/effective-organisational-goal-setting-5-benefits-muhammad-sajwani/>. [Accessed 16th April 2023].


SharpenHRM for SME PDF[Online] Available at <https://sharpen.ef.tul.cz/upload/Chapter%206_Performance%20Management.pdf>. [Accessed 16th April 2023].

 

Valamis(2023)Knowledge Hub.Employee Performance.Performance Management[Online] Available at <https://www.valamis.com/hub/performance-management>. [Accessed 16th April 2023].





Comments

  1. Well explained article on performance management. Are there any similarities between performance management & performance evaluation? or are they different?

    ReplyDelete
    Replies
    1. Performance management and performance evaluation are similar ideas, yet they differ significantly.

      Performance management is a thorough process that involves goal formulation, feedback, coaching, and assisting people in achieving their goals. Performance management is a continuous process that requires managers and employees to communicate regularly to detect and handle any performance issues that develop.

      Performance review, on the other hand, is a one-time event that occurs once or twice a year. It is a structured procedure that evaluates an employee's performance against defined criteria and goals. The assessment process often consists of the employee completing a performance review form, meeting with their manager to discuss the review, and creating new goals and objectives.
      according to following sources
      Armstrong, M. (2012). Armstrong's Handbook of Performance Management: An Evidence-Based Guide to Delivering High Performance. Kogan Page Publishers.
      Bacal, R. (2017). Performance Management. McGraw-Hill Education

      Delete
  2. Interesting topic Ashkar!

    Infact,performance management is not just limited to individual performance, but it can also encompass team and organizational performance. According to a study by (Armstrong & Baron,2014), effective performance management should focus on both individual and collective goals to ensure alignment with the overall strategic objectives of the organization. Additionally, the study suggests that performance management should be an ongoing process that involves regular communication and feedback to foster continuous improvement.

    What are some common challenges that organizations face when implementing performance management processes, and how can they overcome these challenges?

    ReplyDelete
    Replies
    1. Thank you for your remark; I've included some easy steps to address your situation.
      There are several common challenges that organizations face when implementing performance management processes, including:
      Resistance to change
      Lack of clarity
      Inadequate training
      Inconsistent application
      Overemphasis on negative feedback

      To overcome these challenges, organizations can take the following steps

      Communicate effectively
      Set clear expectations
      Provide training
      Consistency
      Balanced feedback

      Delete

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