Performance Management -- An Introdution

Performance management

1. Performance Management An Introduction

2. What is performance management? Performance management is a holistic process by which managers and employees work together to plan, monitor and review an employee's work objectives and overall contribution to the organization. P erformance management is the continuous process of setting objectives, assessing progress and providing on-going feedback to ensure that employees are meeting their objectives and career goals.

3. Why should we manage performance? B y managing the performance of the individual and team, departmental and organisational performance will follow and by raising individual and team levels of performance, organisational performance will also improve. W hen performance of individuals is not managed, this can lead to frustration and discontent amongst team members.

4. Why is it important? Performance management establishes shared understanding of what is to be achieved and provides an approach to leading and developing people that will ensure it is achieved it is an essential element of any managerial role and will support a manager’s/ supervisors relationship with individuals in a team.

5. Performance Management in Practice I t helps managers and employees: Work towards common goals Gain a clear understanding of job expectations Receive regular feedback about performance Receive advice and learn steps for improving performance Get rewarded for good performance

6. The role of line managers Line managers ensure that the people or teams they manage: know and understand what is expected of them have the skills and ability to deliver on these expectations are supported by the organisation in developing the capacity to meet these expectations are given feedback on their performance have the opportunity to discuss and contribute to individual and team aims and objectives.

7. Benefits of performance management Luecke (2006), identifies three reasons to explain why performance management matters: Shareholders (those with a vested interest in the organization) observe better results, because the human assets of the organization are top-notch and working in unison toward key goals Managers are more successful, because their subordinates are doing the right things correctly Employees experience greater job security, career advancement, and better paychecks, thanks to outstanding performance

8. Challenges of Performance Management If performed incorrectly, an unsuccessful performance management system can have negative consequences on the organization. Aguinis (2007, 9) identifies the following dangers of a poorly executed system: Increased turnover Use of misleading information (if performed improperly, an employee’s performance appraisal can be incorrect) Lowered self-esteem Wasted time and money Damaged relationships

9. Challenges of Performance Management…continued Decreased motivation to perform Employee burnout and job dissatisfaction Increased risk of litigation Unjustified demands on managers ’ resources Varying and unfair standards and ratings Emerging biases Unclear ratings systems