The Foundations of Performance Management

Transcription

1 Improving Organisational Performance The Foundations of Performance Management PREPARED BY: JILL BALDWIN MA, MCIPD, FHEA, PGCE SENIOR LECTURER WORK BASED LEARNING LORD ASHCROFT INTERNATIONAL BUSINESS SCHOOL

2 LEARNING OUTCOMES Understand the history of Performance Management Describe the main developments leading to Performance Management Merit rating Management by Objectives Assessment techniques Performance Appraisal State the differences between management by objectives, performance appraisal and performance management

3 BRIEF HISTORY OF PERFORMANCE MANAGEMENT Merit Rating: The process of assessing how well someone was regarded in terms of personality traits such as judgement or integrity and qualities such as leadership and cooperativeness (Armstrong, 2009) The term merit Recalled classroom judgements made by teachers Man to Man Comparison Scale W D Scott Scale Graphic Rating scale

4 THE MANAGEMENT BY OBJECTIVES CYCLE

5 PERFORMANCE APPRAISAL Results Orientated Appraisal Agreement of Objectives Assessment of results against objectives Ratings of overall individual performance 1980 s Performance Related Pay Financial reward based on performance ratings Self assessment in the ratings, possibly Appraisal was typically an annual event Property of the Personnel Department

6 ENTER PERFORMANCE MANAGEMENT The features: (Warren, 1972) Expectations a large group of employees being told what is expected of them Skill a large group of employees needing technical knowledge and skills to carry out tasks Feedback workers must be told in clear terms, without threats, how they are doing in terms of expectations Resources employees must have the time, money and equipment necessary to perform the expected tasks at optimal level Reinforcement positively for desire performance

7 DEFINITIONS OF PERFORMANCE MANAGEMENT A continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organisation (Aguinis, 2009) A systematic process for improving organisational performance by developing the performance of individuals and teams (Armstrong, 2009)

8 DEFINITION OF A PERFORMANCE MANAGEMENT SYSTEM (IPM, 1992) It communicates a vision of its objectives to all its employees It sets departmental and individual performance targets that are related to wider objectives It conducts a formal review of progress towards these targets It uses the review process to identify training, development and reward outcomes

9 DEFINITION OF A PERFORMANCE MANAGEMENT SYSTEM (IPM, 1992).CONTINUED It evaluates the whole process in order to improve effectiveness It expresses performance targets in terms of measurable outputs, accountabilities and training/learning targets It uses formal appraisal procedures as ways of communicating performance requirements that are set on a regular basis It links performance requirements to pay, especially for senior managers

10 Performance management : arose out of the need to link the requirements of business strategy to all employees.

11 PERFORMANCE MANAGEMENT CYCLE

12 COMPARISON OF DIFFERENT APPROACHES (ARMSTRONG, 2009) Management by Objectives Emphasis on individual integrating Objectives Emphasis on quantified requirements and performance measures Annual Appraisal No ratings Backward looking Focus on performance achievements Top-down system Monolithic system Packaged system Complex paper work May not be a direct link to pay Applied to managers Owned by line managers and personnel department Performance Appraisal Individual objectives may be included Some qualitative performance objectives may also be included Annual Appraisal Ratings Backward looking Focus on levels of performance and merit Top-down system Monolithic system Usually tailor made Complex paper work Often linked to performance pay Applied to all staff Owned by HR Department Performance Management Focus on organisational and individual objectives Covers both outputs (results) and inputs (competencies) All the year round May not have ratings Forward looking Focus on development as well as performance Joint process Flexible process Tailor made Paper work minimized May not be linked to performance pay Applied to all staff Owned by Line Managers