Introduction

MS (Management Science)
Performance Management
The Basic Concepts of Performance Management
Discussion 01
05-04-2013
By
Faseeh Ur Rehman
Institute of Southern Punjab
E-mail: ffaseeh@gmail.com
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Contents
Performance Management Defined
Basic Concepts
What Performance Management Is Not
Payoffs Of Using PM
Performance Management Research
Performance Planning
Performance Execution
Performance Assessment
Performance Review
Performance Measurement

Research Basics
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Origin of the term PM

Aubrey C. Daniels, a clinical psychologist by training, is
said to be the father of performance management, as he
was one of the first to make extensive use of the science of
behavior analysis in business.
The origin dates back to the World War-I; and more
specifically in the early Sixties. The term was used as a
source of income justification- to determine an employees
wage based on what he/she performs.

Origin of the term PM

Daniels developed a framework for performance
management the ABCs of Performance.
A, B, and C stand for antecedents, behavior, and
consequences. Antecedents are efforts to influence
behavior before it occurs. Consequences try to
change the probability that the behavior will recur in
the future.
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Origin of the term PM

Six most common types of antecedents:
1. Job aids,
2. Training,
3. Tools and materials,
4. Policies and procedures,
5. Work environment, and
6. Meetings.
Of these, training is used most frequently, although it is not
necessarily the most effective (Miyashiro, 1996).
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Origin of the term PM

Antecedents are designed to start behavior, whereas consequences
maintain behavior.
Managers must understand how employees perceive the
consequences of their behavior. Those consequences will affect
performance, whether they are managed or not.
Consequences can be categorized as positive or negative. However,
each individual experiences consequences differently, so
consequences must be analyzed on an individual basis:
what is motivating for one person may be demotivating for
another. The influence of a given consequence can be evaluated in
terms of its perception (as positive or negative), the timing of the
consequence (relative to the behavior), and the certainty of the
consequence (Miyashiro, 1996).
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Performance Management Defined

Performance
Performance is focused behavior or purposeful work (Rudman,
1998, p. 205).
Performance is the degree to which an employee contributes to the
goals of his or her work unit and company as a result of his or her
behavior and the application of skills, abilities, and knowledge
(Bacal, 2004, p. 39).

Performance Management Defined

Performance Appraisal
Performance appraisal is a formal management system that provides
for the evaluation of the quality of an individuals performance in
an organization.

Performance Management Defined

Performance Management
Performance management is a systematic process for improving
organizational performance by developing the performance of
individuals and teams.

Basic Concepts
Appraisal Vs Management

Performance
Management

Performance
Appraisal

Formal assessment

Rating of individuals
Managers are raters

Focus on the past

Continuous
Much wider
More comprehensive
Mutual expectations
Support role of
managers
Managers coach instead
of judging
Focuses on the future

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What Performance Management Is Not

Performance Improvement
Something a manager does to an employee
A club to force people to work better or harder
Used only in poor performance situations
About completing forms once a year
Just Performance appraisal

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Performance management is an ongoing communication

process, undertaken in partnership, between an employee and his
or her immediate supervisor that involves establishing clear
expectations and understanding about:
The essential job functions the employee is expected to do
how the employees job contributes to the goals of the
organization
what doing the job well means in concrete terms
how employee and supervisor will work together to sustain,
improve, or build on existing employee performance
how job performance will be measured
identifying barriers to performance and removing them
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It is a system, comprising a number of

parts, all of which need to be included if
the performance management system is
going to add value to the organization,
managers, and staff (Bacal, 2004, p. )

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What Performance Management Is Not

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Payoffs of Using PM
Payoffs
(Potential Benefits)

For

For

Managers

Employees

For
Organization

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Payoffs of Using PM Cont.

For Managers
Avoiding micromanagement
Letting the employees make decisions
Fixing Responsibilities and communicating
Reducing unknowability
Reducing mistakes and errors

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Payoffs of Using PM Cont.

For Employees
Knowing whether they are doing well or not
Knowing what level of authority they have
Getting recognition for a job well done
Having an opportunity to develop new skills
Finding out why boss has been dissatisfied
Being able to make routine decisions
Being managed
Having the resources they need to do their jobs
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Payoffs of Using PM Cont.

For Organization
Working more effectively
Legal compliance
Doing away with employees grievance
Documenting performance problems

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The Process of Performance Management

Performance management should be regarded as a flexible
process, and not as a system.
The use of the term system implies a rigid, standardized
and bureaucratic approach, which is inconsistent with the
concept of performance management as a flexible and
evolutionary, albeit coherent, process that is applied by
managers working with their teams in accordance with the
circumstances in which they operate.

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The Process of Performance Management

As such, PM involves managers and those whom they
manage acting as partners, but within a framework that sets
out how they can best work together.
This framework has to reduce the degree to which
performance management as a top-down affair and it has to
be congruent with the way in which the organization
functions.
Performance management has to fit process-based and
flexible organizations to replace the type of appraisal system
that only fits a hierarchical and bureaucratic organization.
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The Process of Performance Management

The processes of performance management consist of:
Planning: agreeing objectives and competence
requirements and producing performance agreements and
performance improvement and personal development
plans.
Acting: carrying out the activities required to achieve
objectives and plans.
Monitoring: checking on progress in achieving objectives.
Reviewing: assessing progress and achievements so that
action plans can be prepared and agreed.
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The Process of Performance Management

Phase 1
Performance
Planning

Phase 4

Phase 2

Performance
Review

Performance
Execution

Phase 3
Performance
Assessment
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Shields, J. (2007). Managing employee performance and reward: Concepts, practices, strategies. US, New York: Cambridge University Press.

References
Bacal, R. (2004). Managers guide to performance reviews. McGraw-Hill Companies
Inc.
Miyashiro, M. (1996). Perspectives Exploring the many faces of leadership. The TQM
Magazine. 8(2), 1719
Rudman, R. (1998). Performance planning and Review. Warriewood, Australia:
Business & professional Publishing.
Shields, J. (2007). Managing employee performance and reward: Concepts, practices,
strategies. US, New York: Cambridge University Press.

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