Performance Management
Herman Aguinis Kelley School of Business Indiana University
Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto
De...
Performance Management
Herman Aguinis
Kelley School of Business
Indiana University
Boston Columbus Indianapolis New York San Francisco Upper Saddle River
Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto
Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
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Library of Congress Cataloging-in-Publication Data
Aguinis, Herman
Performance management / Herman Aguinis. — 3rd ed.
p. cm.
ISBN-13: 978-0-13-255638-5 (alk. paper)
ISBN-10: 0-13-255638-3 (alk. paper)
1. Employees—Rating of. 2. Performance—Management. I. Title.
HF5549.5.R3A38 2013
658.3'125—dc23
2011037274
10 9 8 7 6 5 4 3 2 1
ISBN 10: 0-13-255638-3
ISBN 13: 978-0-13-255638-5
, CONTENTS
Preface viii
Acknowledgments xiii
Dedication xiv
About the Author xiv
PART I Strategic and General Considerations 1
Chapter 1 Performance Management and Reward Systems in Context 1
1.1 Definition of Performance Management (PM) 2
1.2 The Performance Management Contribution 4
1.3 Disadvantages/Dangers of Poorly Implemented PM Systems 8
1.4 Definition of Reward Systems 10
1.4.1 Base Pay 10
1.4.2 Cost-of-Living Adjustments and Contingent Pay 11
1.4.3 Short-Term Incentives 11
1.4.4 Long-Term Incentives 11
1.4.5 Income Protection 12
1.4.6 Work/Life Focus 13
1.4.7 Allowances 13
1.4.8 Relational Returns 13
1.5 Aims and Role of PM Systems 14
1.5.1 Strategic Purpose 15
1.5.2 Administrative Purpose 16
1.5.3 Informational Purpose 16
1.5.4 Developmental Purpose 16
1.5.5 Organizational Maintenance Purpose 16
1.5.6 Documentational Purpose 17
1.6 Characteristics of an Ideal PM System 18
1.7 Integration with Other Human Resources and Development
Activities 23
1.8 Performance Management Around the World 24
! CASE STUDY 1-1: Reality Check: Ideal Versus Actual Performance
Management System 28
! CASE STUDY 1-2: Performance Management at Network Solutions, Inc. 31
! CASE STUDY 1-3: Distinguishing Performance Management Systems from
Performance Appraisal Systems 32
Chapter 2 Performance Management Process 37
2.1 Prerequisites 38
2.2 Performance Planning 46
2.2.1 Results 46
2.2.2 Behaviors 46
2.2.3 Development Plan 47 iii
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