Beruflich Dokumente
Kultur Dokumente
Introduction to
Performance
Management
Process of performance
management
The process Of performance management was defined
by Latham, Sulsky and Macdonald, 2007 as follows:
The process Of performance management consists Of the
following four Steps:
1. Desired job performance is defined.
2. Specific challenging goals are set as to What the person
or team should Start doing, stop doing or do differently.
3. The individual's performance on the job is observed.
4. Feedback is provided and a decision is made about,
training, transferring,
promoting, demoting or terminating the contract of an
individual.
Performance management
defined
Performance management is a systematic process for
improving organizational performance by developing the
performance of individuals and teams.
It is a means of getting better results by understanding and
managing performance within an agreed framework of planned
goals, standards and competency requirements.
Processes exist for establishing shared understanding about
What is to be achieved, and for managing and developing
people in a way that increases the probability that it Will be
achieved in the short and longer term.
It is owned and driven by line management.
Performance management
defined
As an operational process, performance
management can be defined as follows:
Performance management (Briscoe and
Claus, 2008) :
Performance management is the system
through which organizations set work goals,
determine performance standards, assign
and evaluate work, provide performance
feedback, determine training and
development needs and distribute rewards.
Performance management
defined
Performance management as practiced today
incorporates processes such as management by
objectives and performance appraisal that were
first developed some time ago.
But its overall approach is significantly different.
As Mohrman and Mohrman ( 1995) emphasize:
' Performance management is managing the
business.
It is what line managers do continuously, not an
HR-directed annual procedure.
It is a natural process of management.
Performance management
Use of ratings
Monolithic system
Flexible process
Owned by HR department
Performance management
defined
Performance management is much
more than appraising individuals.
It contributes to the achievement of
culture change and it is integrated with
other key HR activities, especially
human capital management, talent
management, learning and
development and reward management.
How performance
management evolved
Early times
Wei Dynasty
AD 221-65
16 th
century
Formal monitoring system by Frederick Taylor
US armed service rating
1920s
before WWI
end of 1970s
Merit Rating
Process of assessment how well someone was
regarded in terms of Personality traits(integrity),
qualities( leadership, cooperativeness).
It often involved quantification of judgments
against each factor ,presumably with the belief
that the quantification of subjective judgments
made them more objective.
W D Scott introduced rating of the abilities of
workers prior to world war 1.
Merit Rating
Man to man comparison:
W D scott invented man to man comparison scale.
Under this method certain key personnel are
selected for each factor (which may include initiative,
leadership, dependability, safety etc.) Other
employees will be compared with these key
personnel by considering one factor at a time.
The scale was then modified and used to rate the
efficiency of US army officers .
It replaced the seniority system of promotion in the
army and initiated an era of promotion on basis of
merit.
Merit Rating
Graphic rating scale:
Efforts of SCOTT were developed and termed as graphic rating
scale.
Under this method, performance of an employee is evaluated
against certain specific factors.
Five degrees or scales are established for each factor and each
degree is defined.
The Factors to be Selected are of Two Types:
(1) Characteristics of employee e.g. initiative, ability to learn,
dependability, etc., and
(2) Contributions of employees e.g. quality and quantity of output,
safety record, etc.
For example, four factors selected for merit rating may be a)
Quality of output. (b) Quantity of output (c) Dependability (d)
Attitudes toward associates and superiors.
Merit Rating
The scales or degrees may be constructed as follows:
Quality of Work Poor Fair Good Very good Excellent:
For each factor we can name five degrees as explained
above. The crucial part of this method is, therefore, the
determination of factors and their degrees. The following
definitions may be given for these degrees:
PoorLazy, not interested in his work.
Fairdoes his job without any interest in his work.
Gooddoes his job with interest.
It was used for reports on workers and for rating managers
and supervisors.
Merit Rating
Justification made for this kind of
scale was that ratings were
educational
Employees were analyzed in terms of
traits essential for success in their
work
Management by
Objectives
MBO claimed that it overcame the
problems of trait rating
Peter Drucker (1955) first introduced
the term Management by Objectives
Drucker emphasized that an effective
management must direct the vision
and efforts of all managers towards a
common goal
Management by
Objectives
McGregor (1960) also contributed
through his theory Y concept
He emphasized that Principle of
management by integration and self
control should be regarded as a
strategy a way of managing people
Management by
Objectives
McGregor's (1960) contribution arose from his
Theory Y concept.
He wrote: 'The central principle that derives from
Theory Y is that of integration: the creation of
conditions such that members of the organization
can achieve their own goals best by directing their
efforts towards the success Of the organization'.
This is McGregor's principle Of 'management by
integration and self-control', which he insisted
should be regarded as a strategy a way of
managing people.
Criticism of Management by
Objectives
Levinson (1970) attacked MBO in the Harvard
Business Review:
A person may fail as a partner, superior, subordinate or
colleague while meeting the objective standards.
The greater the emphasis on measurement and
quantification, the more likely it is that the subtle, nonmeasurable elements of the task will be sacrificed.
Quality of performance frequently loses out to
quantification.
It leaves out the individual's personal needs and
Objectives, bearing in mind that the most powerful
driving force for individuals comprises their needs,
wishes and personal objectives
Criticism of Management by
Objectives
Critique by R H Schaffer:
R H Schaffer also criticized on
managements by objectives:
Too much emphasis being placed on
the quantification of objectives
It tended to concentrate on managers
and their individual goals without
linking them to corporate goals
Criticism of Management by
Objectives
Critique by Fowler:
Criticism of Management by
Objectives
It became a formal once-a-year exercise
bearing little relationship to managers'
day-to- day activities.
There was an overemphasis on
quantifiable objectives to the detriment Of
important qualitative factors.
The system was administratively topheavy form filling became an end in
itself.
Developments in assessment
techniques
With the emergence of management by
objectives, consideration was being given to
avoiding the misguided use of traits in
performance assessment.
The critical incidence approach was
developed and changed the focus to
observation of behavior.
Thereon BARS and BOS were established.
Features of Performance
Management as defined by Malcolm
Warren (1972)-early days
Expectations a large group of employees
preferably all must be told clearly,
objectively and in their own language what
is specifically expected of them.
Skill a large group of employees must
have the technical knowledge and skill to
carry out the tasks.
Feedback workers must be told in clear
terms, without threats, how they are doing
in terms of expectations.
Features of Performance
Management as defined by
Malcolm Warren (1972)
Resources employees must have
the time, money and equipment
necessary to perform the expected
tasks at optimal level.
Reinforcement employees must be
positively reinforced for desired
performance.
Performance Management by
Plachy and Plachy (1988)
Performance management is
communication: a manager and an
employee arrive together at an
understanding of what work is to be
accomplished, how it will be accomplished,
how work is progressing towards desired
results, and finally, after effort is expended
to accomplish the work, whether the
performance has achieved the agreedupon plan. The process recycles when the
manager and employee begin planning
what work is to be accomplished for the
Performance management
established
Performance management
established
Full recognition Of the existence Of
performance management was
provided by the research project
conducted by the Institute of
Personnel Management (1992).
The following definition of
performance management was
produced as a result of this research