Performance Management – HRM3706
STUDY UNIT 2: Performance management process
2.3.1 Prerequisites stage
Knowledge of the organisation’s mission and strategic goals
The strategic planning process provides the knowledge of the organisation’s mission and strategic goals. Through this
proces...
,Performance Management – HRM3706
STUDY UNIT 2: Performance management process
2.3.1 Prerequisites stage
Knowledge of the organisation’s mission and strategic goals
The strategic planning process provides the knowledge of the organisation’s mission and strategic goals. Through this
process the organisation defines its purpose, where it wants to be in the future, the goals it wants to achieve and the
strategies it will use to attain these goals. These goals are then cascaded downwards to the departmental and unit
level, and the cascading continues downward until each employee has a set of goals that are compatible with the
goals of the organisation.
Knowledge of the job in question
Job analysis is a process of determining the key components of a particular job, including activities, tasks, products,
services, and processes. Without a job analysis, it is difficult to understand what constitutes the required duties for a
particular job. If we don’t know what an employee is supposed to do on the job, we won’t know what needs to be
evaluated and how to do so. As a result of a job analysis, we obtain information regarding the tasks carried out and
the knowledge, skills, and abilities (KSAs) required of a particular job. Knowledge includes having the Information
needed to perform the work, but not necessarily having done it. Skills refer to required attributes that are usually
acquired by having done the work in the past. Ability refers to having the physical, emotional, intellectual, and
psychological aptitude to perform the work, but neither having done the job nor having been trained to do the work
is required.
The tasks and KSAs needed for the various jobs are typically presented in the form of a job description, which
summarizes the job duties, needed KSAs, and working conditions for a particular job. Job analysis can be conducted
using observation, off-the-shelf questionnaires, or interviews. There are several biases that can affect the accuracy of
the information provided by individuals regarding KSAs needed for a job. Consider the following biasing factors:
, 1. Self-serving bias: This bias leads people to report that their own behaviours and personality traits are more
needed for successful job performance compared to behaviours and personality traits of others. This is
because people tend to attribute success to themselves and failure to external causes (i.e., factors outside of
their control).
2. Social projection and false consensus bias: Social projection bias leads people to believe that others behave
similarly to themselves and, hence, lead people to think about themselves when reporting KSAs for their job
instead of people in general. False consensus bias is similar in that it leads people to believe that others share
the same beliefs and attitudes as themselves.
The Web-based training program, which takes about 15 minutes to administer, provides a common frame of
reference for all raters and includes the following five steps:
1. provide raters with a definition of each rating dimension
2. define the scale anchors
3. describe what behaviours were indicative of each dimension
4. allow raters to practice their rating skills, and
5. provide feedback on the practice
2.3.2 Performance planning stage
Planning at this stage is different from planning at the strategic level of the organisation in that it is between the
manager and the employee. It is the stage where the manager provides employees with a thorough knowledge of
the performance management system. The manager and the employee meet to discuss and agree upon what needs
to be done and how it should be done. performance planning includes a consideration of results and behaviours, as
well as developmental plans.
Results:
Results refer to what is accomplished or the outcomes an employee must produce. To determine outcomes
or accomplishments, results criteria should be set. A consideration of results criteria needs to include three
things, namely:
1. The key accountabilities or broad areas of a job for which an employee is responsible for producing
results. This information is typically obtained from a job description.
2. A discussion on results also includes specific objectives that an employee will achieve as part of each
accountability.
3. Discussing results also means discussing performance standards.
Behaviours
Behaviours focus on how work is performed and constitute an important component of the planning stage.
To determine how work is performed, behavioural criteria should be set.
1. Task-related behaviours are specific to the job held by the employee as determined through a job
analysis. These behaviours are very important for jobs that involve interpersonal contact, such as
customer service jobs.
2. Organisation citizenship behaviours are behaviours that support the social and psychological
environment in which task performance takes place. Organisation citizenship is sometimes referred to
as contextual performance.
Development plans
Employee development can play an important role in helping to maintain and improve employee
effectiveness in an organisation. The required components of a development plan:
1. Description of developmental objectives.
2. Activities that will be conducted to reach these objectives.
3. The date of completion.
The manager and the employee need to agree on what development or new skills will help to enrich the
employee’s work experience, as well as help accomplish organisational goals now and in the near future.
Development plans should therefore be included in the performance appraisal form.
, 2.3.3 Performance execution stage
The employee has primary responsibility and ownership of this process. At the performance execution stage, the
following factors must be present:
1. Commitment to goal achievement. The employee must be committed to the goals that were set. One
way to enhance commitment is to allow the employee to be an active participant in the process of
setting the goals.
2. Ongoing performance feedback and coaching. The employee should not wait until the review cycle is
over to solicit performance feedback or a serious problem develops to ask for coaching. The employee
needs to take a proactive role in soliciting performance feedback and coaching from her supervisor.
3. Communication with supervisor. Supervisors are busy with multiple obligations. The burden is on the
employee to communicate openly and regularly with the supervisor.
4. Collecting and sharing performance data. The employee should provide the supervisor with regular
updates on progress toward goal achievement, in terms of both behaviours and results.
5. Preparing for performance reviews. The employee should not wait until the end of the review cycle
approaches to prepare for the review. The employee should engage in an ongoing and realistic self-
appraisal. The usefulness of the self-appraisal process can be enhanced by gathering informal
performance information from peers and customers (both internal and external).
Supervisors have primary responsibility over the following issues:
1. Observation and documentation. Supervisors must observe and document performance on a daily
basis, to keep track of examples of both good and poor performance.
2. Updates. Update and revise initial objectives, standards, and key accountabilities (in the case of results)
and competency areas (in the case of behaviours).
3. Feedback. Feedback on progression toward goals and coaching to improve performance should be
provided on a regular basis certainly before the review cycle is over.
4. Resources. Supervisors should provide employees with resources and opportunities to participate in
developmental activities. They should encourage participation in training, classes, and special
assignments. Overall, supervisors have a responsibility to ensure that the employee has the necessary
supplies and funding to perform the job properly.
5. Reinforcement. Supervisors must let employees know that their outstanding performance is noticed by
reinforcing effective behaviours and progress toward goals. Also, supervisors should provide feedback
regarding negative performance and how to remedy the observed problem.
2.3.4 Performance assessment stage
During this stage, the employee and the manager have the following responsibilities: They have to evaluate the
extent to which
the desired behaviours have been displayed
the desired results have been achieved
the goals stated in the development plan have been achieved
They are both accountable; therefore, both of them take ownership of the process.
2.3.5 Performance review stage
During the performance review stage, the employee and the manager meet to discuss and review their assessments,
which include all the information collected in the assessment stage. It is usually called the appraisal meeting and it is
held in a formal setting where the employee receives feedback on his or her performance. It provides a formal
setting in which the employee receives feedback on his or her performance. It is often the weak link in the process
because many managers are uncomfortable providing performance feedback, particularly when performance is
deficient. At this point, people are apprehensive about both receiving and giving performance information, and this
apprehension reinforces the importance of a formal performance review as part of any performance management
system. the appraisal discussion focuses on the past (what has been done and how), the present (what
compensation is received or denied as a result), and the future (goals to be attained before the upcoming review
session).
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