HRM – Performance Management

Performance definition
accomplish, execute or carry out an ordered task or assignment
Two dimensions of performance
1. Task performance (cog, affect, beh)
2. Contextual performance (discretionary, capable of fulfilling sociopscyhological environment eg, volunteering
– motivated employees have much higher task performance
– can be conducted as a team or individual level
Performance management definition
Collective range of future-oriented activities conducted by an organization aimed at enhance performance
– comparison between actual performance and strategic org objectives and plans
+ individual performance + org performance
Characteristics of performance management (MVP)
– Process of continuous input and output
– multifaceted and multilevel agreement
– vertical integration
– horizontal integration
– holistic management process
Process of continuous input and output
Outputs: target level of productivity
Inputs: source materials & contextual (motivation, engagement, discretionary behaviours)
Multifaceted and multilevel agreement
Example: agreed target and time for each patient which leads to v and h integration
Vertical Integration
integration of individual, group, functional and organizational objectives (different target levels set or different stages filtering down)
Horizontal Integration
ensure HRM practices are congruent with org objectives
– Integration of HRM functions
Holistic Management process
– short and long term objectives, system as a whole and maintain open lines of communication with stakeholders
– double-loop learning
Double-loop learning
facilitates the rationale of the decision process and encourages employees to review, debate and modify current business objectives
Performance Management Process
1. Strategic planning (long term plans, internal and external analysis, thus vertical integration)
2. Performance criteria and measures (balanced scorecard translates bus strategy and goals into measurements)
3. Taking Action (knowing-doing gap)
4. Organizational Culture (PWE’s)
Performance Appraisal vs. performance management
PA: planning and reviewing of individual performance and is a subset of PM
PM: org performance improvement through HRM functions and procedures including PA
Performance Appraisal definition
A formal and mutually agreed upon system of planning and reviewing employee performance
Appraisal part of PM process:
1. How well job is being done
2. Communicate to employees
3. Establish plan and build on strengths and fill performance gaps
4. Implement plan
5. Training and development
PA Process
1. Define performance criteria (KPI’s)
2. Facilitate discussion regarding PR
3. Identify training and development needs
4. Reward good performance
Performance appraisal tips for success
– preparation data
– elicit input from employee
– strategically communicate feedback
– feedback/outcomes must be put in place
Performance appraisal methods
– grading
– customer appraisal
– team-based appraisal
– graphic rating scale
– management by objectives
– 360 feedback
Problems with performance appraisal
– resentment
– not link with objectives
– negative
– reward individuals only
Implications for performance appraisal
– Contextual performance attributes (non job specific behaviours that enhance the climate and effectiveness of orgs)
– Culturally appropriate appraisals (hofstede individual vs collectivistic)
– Technology-based appraisals (software packages)
Performance appraisal errors
Halo/Horn effect
Central tendency
Relationship effect
Recency effect
Disciplining emlpoyees
Not be a part of the PM process, as disciplinary procedures are to make clear to an employee when they have engaged in negative behaviours
Employee Assistance Programs
– experience difficulties in their lives that carry over and create problems in the workplace
– assist orgs with productivity and employees with issues

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