To define performance management

To explain the leader/manager’s role in performance management

To explore the skills/principles underpinning performance reviews

“ …a systematic process for improving organizational performance by developing the performance of individuals and teams… a means of getting better results by understanding and managing performance within an agreed framework of planned goals, standards and competency requirements.’ Armstrong, M. (2006)

Strategic - concerned with broader issues facing the business and longer term goals

Integrated

vertical integration (business, team, individual objectives)

functional integration (different parts of the business) human resource integration (organisational

development, hr development, reward)

integration of individual needs (with those of the organisation)

To cascade organisational goals through to individual/team behaviours

To agree meaningful goals

To support a learning/development process

To co-create learning cultures and environments

To promote trusting relationships

To evaluate training/development needs Adapted from Parker Stone (2003)

To help to achieve sustainable improvements in organisational performance

To act as a lever for change in developing a more performance oriented culture

To increase the motivation and commitment of employees

To enable individuals to develop their abilities, increase their job satisfaction and achieve their full potential

To enhance team cohesion and performance

To develop constructive and open relationships between individuals and their managers in a process of continuing dialogue

To provide opportunities for individuals to express their aspirations and expectations about their work

Performance management should incorporate:

Performance improvement - throughout the organisation, for individual, team and organisational effectiveness

Development - unless there is continuous development of individuals and teams, performance will not improve

Managing behaviour - ensuring that individuals are encouraged to behave in a way that allows and fosters better working relationships.

Performance and development reviews Learning and development Coaching Objectives and performance standards Capabilities and competencies Measurement Pay Teams 360 degree feedback Performance problem solving

Who set the performance requirements?

Evidence form the CIPD survey (2005) suggests that performance requirements are:

•Predominantly set by the Senior Manager, and / or Team leader

•Team leaders are slightly more likely to set the requirements in the public sector

•The Line Manager and Personnel set the requirements in less than 10% of the cases

Based on

Performance

Management ,

CIPD Survey

report Sept

2005

“The five key elements of the performance appraisal are:

• Measurement – assessing performance against agreed targets and objectives.

• Feedback – providing information to the individual on their performance and progress.

• Positive reinforcement – emphasising what has been done well and making only constructive criticism about what might be improved.

How to conduct a performance appraisal

• Exchange of views – a frank exchange of views about what has happened, how appraisees can improve their performance, the support they need from their managers to achieve this and their aspirations for their future career.

• Agreement – jointly coming to an understanding by all parties about what needs to be done to improve performance generally and overcome any issues raised in the course of the discussion”.

CIPD (2011)

Manager’s views add own perspective

add perspectives other stakeholders

discuss differences Joint Problem Solving discuss how differences can be resolved

discuss development needs Goal Setting agree performance indicators

agree action plan

Cornelius, N (1999)

Descriptions of performance management

• Performance management is an integral part of the people management strategy

• Performance management is an integrated part of the employee-line manager relationship

• Performance management integrates the goals of individuals with those of the organisation

• Performance management is integrated with other people management processes

• Performance management motivated individuals

• Line managers own and operate the erformance management process

Based on

Performance

Management ,

CIPD Survey

report Sept

2005

Benefits of Rating ratings are needed for PRP schemes summarises judgement allows comparison lets individuals know their position can be motivating

Disadvantages of rating

oversimplifies a complex issue

consistency between raters is difficult

ratings are subjective

can be subject to bias

detracts from open discussion

development overshadowed by rating

can be demotivating

Armstrong, and Baron (2003)

S = Specific/stretching (clear unambiguous, understandable, challenging)

M = measurable (quantity, quality, time, money)

A = achievable (challenging but within reach)

R = relevant (to organization/individual)

T = time-framed (completed within a time-scale)

Highly effective - exceeds targets, performs proficiently beyond expectations

Effective - achieve agreed targets meets normal role expectations

Developing - stronger in some aspects, meets most objectives but further development is needed

Improvable - meets or almost meets standards but room for improvement in definable areas.

Armstrong (1999)

Measures should relate to results, not efforts

results must be within job holder’s control

measures should be objective and observable

data must be available for measurement

Finance - income, value added, shareholder, rates of return, costs

Output - units produced/processed, throughput, new accounts

Impact - attainment of standard, changes in behaviour (internal/external customers), completion of work, innovation

Reaction - judgement by others, colleagues, internal/external customers

Time - speed of response/turnaround, backlog, delivery times

Poor preparation Prejudice ‘Halo’ effect ‘Horns’ effect Reluctance to communicate Poor record keeping No follow-up or clear plan of action Cornelius (1999)

Forced Distribution Ranking Training Peer Review Monitoring Behaviourally Anchored Rating Scales (BARS)

Performance management is an integrated management activity

Focus is on improvement and development

Performance should be linked to organisational gaols

Processes should be regularly reviewed Performance management is a central line

manager activity that should add value to organisational performance

Armstrong, M (1999) HRM Practice, Kogan Page

Armstrong, M. (2006) A Handbook of HRM Practice, Kogan Page

Armstrong, M and Baron A 2003 Managing Performance: Performance in Action, CIPD

CIPD (2005) Performance Management, Survey report September 2005. CIPD CIPD (2011) Performance Appraisal Factsheet http://www.cipd.co.uk/hr-resources/factsheets/performance-appraisal.aspx Accessed 27/7/11

Cornelius, N (1999) HRM A Managerial Perspective, International Thomson Business Press, London

Parker, C and Stone, B (2003) Developing Management Skills for Leadership, FT Prentice-Hall: Harlow

References