What is performance management?

1
What is performance management?

• A strategic and integrated approach to
  delivering sustained success to organisations by
  improving the performance of people who work in
  them and by developing the capabilities of teams
  and individual contributors
• Armstrong and Baron 1998
• Formal performance management of the holistic,
  comprehensive, integrated kind that is advocated
  in the literature is rare. The dominant approach
  to managing employee performance still rests on
  objective-setting and annual appraisal
• 
  Williams 2002

2
Designing and implementing appraisal systems

• Select the right people
• Decide on a process to guide your design
• Assess the current organisational situation
• Establish the systems purpose and objectives
• Design the performance appraisal system
• Experiment with implementation
• 
  Mohrman et al 1989

3
Types of appraisal systems

• Objective-setting
• Behaviourally-anchored rating scales (BARSs)
• Simple rating systems (eg merit rating)
• Critical incidents
• Blank sheet

4
Who could be involved in appraisal?

• The manager/supervisor
• The appraisee, via self-assessment
• Peers
• Subordinates
• External parties (ie customers, clients,
  suppliers, etc)

5
Essential skills for effectiveappraisal
interviewing

• Active listening
• Providing motivation and constructive criticism
• Seeking agreement
• Persuading and negotiating
• Giving praise
• Formulating objectives
• Comparing and ranking performance
• Identifying training needs

6
Contrasting appraisal interview styles

• Autocratic
• I will tell you what I think about
  your performance,
• so please listen
• Participative
• Lets discuss both our views of
  your
• performance together
• Joint learning
• Lets discuss both our views of your
  performance,
• and please let me know how you think
  I have
• contributed

7
Key issues in determining the suitability of
development methods

• Likely effectiveness in meeting the need
• Direct and indirect costs involved
• Ease of access to the development method
• Learning preferences of the individual
• Motivational effects of the method
• Consequences in terms of time spent away from the
  job
• 
  Lamb
  2006

8
Individual differences and rewards

• Different people react to different incentives
  in different ways People differ in personality,
  ability, values, and needs, and these differences
  manifest themselves in different desires and
  different reactions.
• 
  Dessler
  2005
• We have noted that employees are motivated in
  different ways. The reasons for this are complex
  and hard to pin down Moreover, employee needs
  and motivators do not remain static and are
  likely to change throughout a persons life.
• 
  Lamb
  2006

9
Expectancy theory and performance

• The reward must be
• valued by the employee (and valued above
  alternative rewards)
• seen as attainable via effort
• clear to the employee in terms of what is
  expected of him or her
• within the skill and knowledge capabilities of
  the employee
• 
  Porter and Lawler 1968

10
Factors influencing the success of IPRP

• The context in which it is introduced
• The values and attitudes of employees
• The ease or difficulty with which performance can
  be measured
• Perceptions as to fairness in assessments
• The difference to lifestyle that awards for good
  performance will make
• Lamb 2006