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Performance Management System and Performance Appraisal (Guidelines on…
Performance Management System and Performance Appraisal
Definitions
Performance management
the continuous process of improving performance by setting individual and team goals which are aligned to the strategic goals of the organisation
Performance management system
a set of inter-related activities and processes which are treated as an integrated and key component of an organisation’s approach to managing performance through people and developing the skills and capabilities of its human capital
Performance appraisal
the procedure where line managers set work standards, assess actual performance against standards and provide feedback to the employee with the aim of encouraging the employee to improve poor performance or to continue good performance
Objectives of performance management systems
Informational
To inform employees about how they are doing and their areas for improvement
Developmental
To provide employees with feedback that can help them identify their strengths and weaknesses, and the causes of their performance deficiencies
Administrative
To provide information needed to implement reward systems and make administrative decisions
Organisational maintenance
To provide information for workforce planning, assessing future training needs, evaluating performance achievements and evaluating the effectiveness of HR interventions
Strategic
To help top management achieve strategic business objectives
Documentation
To allow for the documentation of important administrative decisions
Division of roles in performance management
HR Manager
Identify and remove any barriers to diversity
Ensure that performance management supports strategic goals and values
Ensure that the employees’ voice is heard
Ensure that there is a focus on the development of skills, knowledge and attitudes within performance management
Advise line managers on policies and procedures
Supervisor
Give and receive feedback
Conduct review meetings
Identify performance measures
Define performance goals
Diagnose and solve performance problems
Prepare role profiles
Coaching
The performance management process
Act - Performance activities
Monitor - Ongoing performance management
Plan - Performance agreement
Review - Joint analysis of performance
Performance appraisal vs performance management
Performance appraisal
c. Focus is on traits
d. Monolithic system
b. Usage of ratings is very common
e. Very much linked to pay
a. Performed annually
Performance management
c. Focus is on quantifiable objectives, values and behaviors
d. Flexible system
b. Usage of ratings is less common
e. Is not directly linked to pay
a. Continuous reviews are performed
Benefits of performance management
Employee
Enhanced self-insight and development
Administrative actions are more fair and appropriate
Increased self-esteem
Supervisors’ view of performance are communicated more clearly
Increased motivation to perform
Organisation
Employee misconduct is minimized
Increased protection from lawsuits
Employees become more competent
Facilitate organisational objectives
Organisational goals are made clear
Motivation and loyalty to the organisation is enhanced
Characteristics of an ideal performance management system
Reliability
Acceptability and fairness
Specificity
Inclusiveness
Practicality
Openness
Thoroughness
Correctability
Ethicality
Guidelines on giving effective performance feedback
Emphasize the ‘how’ and not the ‘what’
Ask questions
Refer to and define specific behaviours
Select the key issues
Describe, don’t judge
Focus
Provide feedback on actual events
Provide positive and constructive feedback
Build feedback into the job
Ensure feedback leads to action