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Lectures Performance ManagementHOORCOLLEGE 1
HRM and PM
What is the overlap and difference between PM and HRM. Different opinions.
- Performance management: that part of HRM that is directed at management of human
performance in an organization. PM is not only a tool/practice within HRM, but a
perspective/starting point/focus point of HRM. This is an important focus point in practice.
For example, well being is not a mean for performance, but it is a goal in itself.
In practice, HRM seems to be predominantly performance management. In big companies PM officer
or a whole section for PM.
(Within this course) focus on:
- PM systems & practices: how you organize within your organization.
- PM processes: PM only works if all people are involved and aiming at the same direction.
Compensation and benefit will not be included in this course, there is a special course for that.
What is performance management?
Performance is about doing meaningful work in effective and efficient ways.
PM assumes managerial responsibility to:
- Assure that where the organization is headed, what it does, and how it does it – are
appropriate considering the impact on society, the community, investors, customers,
employees and the market
- Provide people with the direction, information, tools, materials, equipment, and appropriate
rewards required for their efforts to produce the desired results
Gives a lot; provide direction, information tools, etc.
What is performance management about? (two questions!)
- Are we doing the things right? are we doing needed to get to our goals?
o Are we doing the best we can or can we improve what we do?
Within PM there is always a behaviour assessment or diagnose. The assessment, that
is whether performance is up to a given standard can be ascertained by monitoring
and reporting behaviour and processes.
- Are we doing the right things? when we know where we headed to, are we doing it the
right way?
o Are we doing what we intend to do and is it in alignment with the organizational
strategy. This can be stimulated by formulating clear targets and creating conditions
for learning.
Course set-up:
First part: content, exam.
Second part: applying it, group assignment.
The learning goals for the course are:
- To be able to explain the goals, systems, and practices of Performance management (PM).
- To be able to critically reflect on different theoretical perspectives, systems, processes, and
practices of the following PM aspects:
, o (1) PM & general perspectives on PM
o (2) Individual assessment & performance appraisal
o (3) Individuals differences in Motivation
o (4) Sustainable PM Systems & Processes
- To be able to analyze PM issues and problems.
- To explore which PM dilemmas/strategic choices could arise and how these are dealt with in
practice.
- To be able to design evidence-based interventions for PM issues in real life work cases.
Four introductory lectures:
Prerecorded lectures for the next three lectures!
- Introduction PM/General Perspectives on PM
o Management Control Theory
- Individual Assessment Perspective & Performance Appraisal
- Individual Differences & motivation perspective
- Sustainable PM systems & processes
Guest lectures: (on campus!)
- Evaluating different strategic PM choices.
Fifth lecture: exam training lecture to prepare you for the exam, it is in the schedule/syllabus.
Discussion Seminars:
- Review and discussion of the literature of topic 1 to 4
- Preparing dilemmas for guest lecture
- Only well prepared students are welcome in the discussion seminars!
- Not obligatory, but the discussion questions are an example for questions on the exam.
Assignment meetings:
- Feedback round the progress of the PM intervention paper.
- Explain more about the assignment.
- Consultant rounds; online (or real live if you really want it).
Group assignment: strategic choices/dilemmas
- 2/3 persons (randomly)
- Seminar is obligatory
- Based on literature of topic 5
- Content:
o Introduction of PM topic & strategic choice for HRM
o Statement with a strategic PM choice
o Pros and cons of the strategic PM choice
- Min. 500 and max. 700 words (1-2 pages)
Short introduction about PM topic for a strategic choice of HR. Form a statement; what direction you
want to confront the guest lecture (it is good/it is not good); writ down pros and cons for this
statement. The best/original is chosen; you can gain one extra point for your grade.
Group assignment: PM intervention
- 3 persons (you can choose by your own)
- Design of PM intervention
- Reported in a paper
, - Consulting round/peer supervision (= upload paper and someone else have to review your
paper)/review letter (= respond to this reviews, agree/not agree).
- Use evidence based performance management (EBPM)
- Graded on review letter and paper!
Evidence based PM:
Practical performance issue (1):
- Problem based, real live cases
- Formulate a focused question
- E.g. newspaper, internet it has to be within the company.
Best available evidence (2):
- Studies with the highest internal validity (does it work?)
- Studies with the highest external validity (does it work for this context: kind of
organization/employees, etc.)
Midterm exam
- On campus!
- Week 5: Monday November 22, 2021
- 8 open ended questions
- On the lectures and literature of the first 4 topics of the course
- For each topic: 2 questions
- 50% of the total grade
- Exam tests your comprehension, analysis and application of the content of the 4 first topics
- Marked on a 10-point scale
Strategic choices/dilemmas: 10% of the grade (seminar 30 november and lectures start of December)
PM intervention paper: 40% of the grade
- First version own paper: December 6
- Review of other paper: December 10
- Hand in on December 17
The first week: 2 seminars
Seminar 1: Introduction & Assignment Seminar (26 October)
Seminar 2: Discussion Seminar (27 October)
, Performance management (PM)
Definition of Performance management: ‘’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
Performance management is NOT performance appraisal (= measuring performance)
Three important messages from this definition:
1. It is a continuous process which means it is dynamic
2. Can be at different levels: individual and team and organizational
3. There must be an alignment between performance and the strategic goals of the
organization = key.
Difference between performance management and performance appraisal
Performance management
Performance management:
- Strategic business considerations: not only individual level
- Driven by managers
- Ongoing feedback (is the alignment between performance and the strategic goals still there?)
So employee can improve performance
Performance appraisal:
- Driven by HR
- Assesses employees: strengths/weaknesses
- Once a year
- Lacks ongoing feedback
Recent developments:
- From performance appraisal to performance management. Integration with other HR
practices, the continuous process, the alignment.
- From performance rating to performance improvement. Rating errors, rating accuracy, raters
motivation etc. how to improve performance of the employee and the organization.
- From individual performance to team-level and firm-level performance
- You need to have valid and reliable measures. Employees need to be motivated to perform.
Purpose for performance management
- Strategic: links individual goals with organizational and team goals and thereby give
opportunity to reinforce behaviour that is consistent with the attainment of organizational
goals. Alignment with organizational objectives.
- Administrative: valid and useful information about making decisions about employees. E.g.
salary adjustment, promotion, employee retention and termination, pool performance.
When you know how well your employees perform, you know what kind of administrative
decisions you have to make e.g. promote/extra training, etc. Get to know your employees.
- Communication: it allows employees to learn about the organizations and the supervisors
expectation and what aspect of the work the supervisor beliefs is most important. System to
communicate with your employees: what should you do and what not; expectations.
- Developmental: Way to give personal feedback, make sure that employees can develop and
improve themselves. It informs employees how well they are doing to receive information on
a specific area that needs improvement. It allows managers to coach employees and help
them improve performance on an ongoing basis.
- Data collection
Organizational maintenance: yields information about skills, ability emotional
potential, assignment history to be used in workforce planning, assessing future
training needs, evaluating performance achievement at the organizational level,
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