CHAPTER 1: OVERVIEW OF PERFORMANCE MANAGEMENT

1. HRM751
OVERVIEW OF PERFORMANCE
MANAGEMENT


NUR SYAZANA BINTI HAJI AZMAN HISHAM
 2012423038
ASSOC. PROF. DR ROSHIDI BIN HASSAN

5. Continuous Process of
1.



Identifying
Measuring
Developing
The performance of individuals and teams and
2.
Aligning performance
with
Strategic Goals of the organization

6.  „…the
process where steering of the
organization takes place through the
systematic definition of mission, strategy
and objectives of the organization, making
these measurable through critical success
factors and key performance indicators, in
order to be able to take corrective actions
to keep the organization on track‟ (Waal,
Goedegebuure, &Geradts, 2011).

7.  Performance
management can be
regarded as a systematic process by
which the overall performance of an
organization can be improved by improving
the performance of individuals within a
team framework (Singh, 2012).

8.  Effective
performance managementinvolving a complete system of goal
setting, training, communication, and
ongoing feedback-is a practice on which
research often has important implications
(Helm, Courtney L, Frank R, & Christine,
2007).

9.  PM
is “something that people actually do
and can be observed . . . Performance is
what the organization hires one to do, and
do well. Performance is not the
consequence or result of action, it is the
action itself” (W. Smither& London, 2009).

10. Performance
Management
is NOT
Performance
Appraisal

12. Value-based approach to
evaluate the performance of
employees, (Bhattacharyya,
2011)

14. 
Increase motivation to perform
 Increase self-esteem
 Clarify definitions of
 job
 success criteria
Enhance self-insight and development
 Motivation, commitment and intentions to
stay in the organization are enhanced


15.  Managers
gain insight about
subordinates
 Employees become more competent
 Better and more timely differentiation
between good and poor performers
 Communicate supervisors’ views of
performance more clearly

16.  Organizational
goals are made clear
 Fairer and more appropriate
administrative actions
 Better protection from lawsuits
 Facilitate organizational change

18. - Lowered self-esteem
- Employee burnout and job
dissatisfaction
• - Damaged relationships
- Use of false or misleading
information
•
•
•

19.  Increased
turnover
 Decreased motivation to perform
 Unjustified demands on managers’
resources
 Varying and unfair standards and
ratings

20.  Wasted
time and money
 Unclear ratings system
 Emerging biases
 Increased risk of litigation

22. Motivation to obtain
rewards is one of the
fundamental drives
underlying much of both
human and non-human
animal behavior
(Christian & Ian, 2008).
Reward systems can
shape the behavior of
employees within the
organization (Suliyanto,
2011)

23. Set of mechanisms for distributing
 Tangible returns
and
 Intangible
or relational returns
As part of an employment relationship

24.  Cash
compensation
Base pay
Cost-of-Living & Contingent Pay
Incentives (short- and long-term)

25.  Benefits,
such as
Income Protection
Allowances
Work/life focus

26.  Relational
returns, such as
Recognition and status
Employment security
Challenging work
Learning opportunities

28. Base Pay
Cost of Living
Adjustment
and Contingent
Pay
Short-term
Incentives
Long-term
Incentives
Income
Protection
Work/Life
Focus
Allowances
Relational
Returns

30. Strategic
Administrative
Informational
Developmental
Organizational
maintenance
Documentational

31.  Link
individual goals with
organization’s goals
 Communicate most crucial
business strategic initiatives

32.  Provide
information for making
decisions:
i.
Salary adjustments
ii.
Promotions
iii.
Retention or termination
iv.
Recognition of individual
performance
v.
Layoffs

33. Communicate to Employees:
 Expectations
 What is important
 How they are doing
 How to improve

34.  Performance
feedback/coaching
 Identification of individual
strengths and weaknesses
 Causes of performance deficiencies
 Tailor development of individual
career path

35.  Plan
effective workforce
 Assess future training needs
 Evaluate performance at
organizational level
 Evaluate effectiveness of HR
interventions

36.  Validate
selection instruments
 Document administrative decisions
 Help meet legal requirements

38. Congruent with
organizational
strategy
Meaningful
Thorough
Practical
Specific
Identifies
effective/
ineffective
performance
Reliable

39. Valid
Acceptable
and Fair
Inclusive
Open (No
Secrets)
Correctable
Standardized
Ethical

40. Consistent with organization’s
strategy
 - Aligned with unit and organizational
goals
-

41.  All
employees are evaluated
 All major job responsibilities are
evaluated
 Evaluations cover performance for
entire review period
 Feedback is given on both positive
and negative performance

42.  Available
 Easy
to use
 Acceptable to decision makers
 Benefits outweigh costs

43.  Standards
are important and relevant
 System measures ONLY what employee
can control
 Results have consequences
 Evaluations occur regularly and at
appropriate times
 System provides for continuing skill
development of evaluators

44. Concrete and detailed guidance to
employees
• What’s expected
• How to meet the expectations

45.  Distinguish
between effective and
ineffective
• Behaviors
• Results
 Provide
ability to identify employees
with various levels of performance

46.  Consistent
 Free
of error
 Inter-rater reliability

47. -
Relevant (measures what is
important)
 - Not deficient (doesn’t measure
unimportant facets of job)
 - Not contaminated (only measures
what the employee can control)

48.  Perception
of Distributive Justice
• Work performed  Evaluation received 
Reward
 Perception
of Procedural Justice
• Fairness of procedures used to:
 Determine ratings
 Link ratings to rewards

49. Represents
concerns of all
involved
• When system is created,
employees should help with
deciding
 What should be measured
 How it should be measured
• Employee should provide input on
performance prior to evaluation
meeting

50.  Frequent,
ongoing evaluations and
feedback
 2-way communications in appraisal
meeting
 Clear standards, ongoing
communication
 Communications are factual, open,
honest

51.  Recognizes
that human judgment is
fallible
 Appeals process provided

52.  Ongoing
training of managers to
provide
 Consistent evaluations across
• People
• Time

53.  Supervisor
suppresses self-interest
 Supervisor rates only where she has
sufficient information about the
performance dimension
 Supervisor respects employee
privacy

55. PM
provides information for:
PM + TRAINING
PM +
WORKFORCE
PLANNING
PM + TALENT
MANAGEMENT
PM +
COMPENSATION
SYSTEM

56. Counterproductive
work behavior
(CWB) has been defined as “volitional
acts that harm or intend to harm
organizations and their stakeholders (for
example, clients, co-workers, customers,
and supervisors)” (Atwater & Elkins, 2009).

57. 1. Abuse against Others
 Incivility
 Workplace Aggression/Violence
 Sexual Harassment
2. Production Deviance
 Passive Production Deviance
 Sabotage and Theft
 Withdrawal

58.  1.
 2.
Non - Punitive Approaches
 Alignment
 Corrective Feedback
Self - Management Training for
Improving Job Performance
 3.
Punishment
 4.
Termination

59. 1. Determine whether there are legal issues that
should be taken into account.
 2. Consider only work - related factors.
 3. Apply policies and decision - making rules
consistently.
 4. Allow employees a voice in the discipline
process.
 5. Make the punishment consistent with the
severity of the offense.
 6. Communicate clear performance expectations.
 7. Provide employees with sufficient time to
improve their performance or change their
behavior.
