Employee Resourcing – LLC 4124
UNIT 7 PERFORMANCE MANAGEMENT
7.1 Learning Outcomes
7.4 Meaning of Performance
7.5 Performance Appraisal and Performance Management
7.7 Purpose of Performance Management
7.8 Approaches to Performance Management
7.8.1 The comparative Approach
7.8.2 The Attribute Approach
7.8.3 The Behavioural Approach
7.8.4 The Results Approach
7.8.5 The Quality Approach
7.8.6 The Multi-Rated Approach
184.108.40.206 Strengths of the 360-degree Feedback Approach
220.127.116.11 Weaknesses of the 360-degree Feedback Approach
Unit 7 1 Employee Resourcing – LLC 4124
In this Unit, we shall focus on the definitions of performance and performance management as
well as its purpose. The difference between performance appraisal and performance management
is explained. The approaches to performance management will be discussed.
7.1 LEARNING OUTCOMES
By the end of this Unit, you should be able to do the following:
1. Define performance and performance management.
2. Differentiate between performance “management” and “appraisal”.
3. Explain the purpose of performance management.
4. Discuss and explain the approaches to performance management.
Performance management is a topic that cuts across traditional HRM boundaries, as it also has
implications for employee development. Performance Management is seen as a dimension of
employee resourcing and performance monitoring and review as part of the appraisal process. In
many organisations, formal, systematic procedures are introduced to regularly assess employee
performance, usually involving, at a minimum, an interview between a manager and an
employee, with documentation of recorded performance.
One major reform being undertaken in the public service is the development of a performance
management system. Its primary aim is to improve performance by focusing on key areas of
activity of the Ministry/department, teams and individuals through on agreed framework of
planned goals, objectives and standards.
Unit 7 2 Employee Resourcing – LLC 4124
Noe et al. (2008) define performance management as “the process through which managers
ensure that employees’ activities and outputs are congruent with the organisation’s goals”.
(This definition emphasises the need for performance management to be aligned to the strategy
of the organisation).
Performance management can be defined as a strategic and integrated approach to delivering
sustained success to organisations by improving the performance of the people who work in
them and by developing the capabilities of teams and individual contributors (Armstrong and
7.4 MEANING OF PERFORMANCE
Bates & Holton (1995) pointed that “performance is a multi-dimensional construct, the
measurement of which varies depending on a variety of factors.”
They also state that it is important to determine whether the measurement objective is to assess
performance outcomes or behaviour.
Kane (1996) argues that performance is something that the person leaves behind and that exists
apart from the purpose.
Bernadin et al. (1995) are concerned that “performance should be defined as the outcomes of
work because they provide the strongest linkage to the strategic goals of the organisation,
customer satisfaction and economic contributions.”
The Oxford dictionary defines performance as “the accomplishment, execution, carrying out,
working out of anything ordered or undertaken.”
Performance is about doing the work as well as about the results achieved. Performance can
therefore be regarded as behaviour – the way in which organisations, teams and individuals, get
the work done.
Unit 7 3 Employee Resourcing – LLC 4124
Campbell (1990) believes that: “Performance is behaviour and should be distinguished from the
outcomes because they can be contaminated by system factors.”
For Brumbach (1988), performance means both behaviours and results. Behaviours emanate
from the performer and transform performance from abstraction to action. Not just the
instruments for results, behaviours are also outcomes in their own right – the product of mental
and physical effort applied to tasks – and can be judged apart from results.
From this definition, we can conclude that when managing the performance of teams, and
individuals, both inputs (behaviour) and outputs (results) need to be considered. This is the so-
called mixed model (Martle, 1995) of performance management which covers competency levels
and achievements as well as objective setting and review.
7.5 PERFORMANCE APPRAISAL AND PERFORMANCE
What, in your opinion, is the difference between Performance Appraisal and Performance
Noe et al (2008) emphasises that Performance Appraisal is only a component of Performance
Management as it involves the administrative and relatively isolated duty of measuring aspects
of an employee’s performance. Performance Management is a broader concept than Performance
Appraisal in that it provides not only for the measurement of performance, but the defining of
performance according to organisational goals as well as the provision of performance feedback.
Specification of Performance Appraisal Performance
Performance Criteria (Performance Measurement Feedback
Performance Management (Noe et al, 2008)
Unit 7 4 Employee Resourcing – LLC 4124
Feedback is a method of communication, usually face-to-face with another person where the
desired outcome is normally:
a) Improved work performance.
b) A maintenance of performance.
c) A change of behaviour.
d) To make another person aware of one’s behaviour upon others.
Performance Management is strategic in the sense that it is concerned with the broader issues
facing the business if it is to function effectively in its environment, and with the general
direction in which it intends to go to achieve longer terms goals.
It is integrated in four senses:
Vertical integration - linking or aligning business, team and individual objectives.
Functional integration - linking functional strategies in different parts of the business.
HR integration - linking different aspects of HRM, specially organisational development
HR development and reward.
The integration of individual needs with those of the organisation, as far as this is possible.
(i) Differentiate between Performance Appraisal and Performance Management as you see it in
the local context.
Unit 7 5 Employee Resourcing – LLC 4124
(ii) Discuss the importance of feedback in the management of performance.
7.7 PURPOSE OF PERFORMANCE MANAGEMENT
“Performance Management is a means of getting better results from the organisation, teams and
individuals by understanding and managing performance within an agreed framework of
planned goals, standards and competence requirements. It is a process for establishing shared
understanding about what is to be achieved, and an approach to managing and developing
Unit 7 6 Employee Resourcing – LLC 4124
people in a way that increases the probability that it will be achieved in the short and long term.
It is owned and driven by line management (Armstrong, 2001)”.
(i) Based on your experience of performance management within the organisation in which
you work, what do you think is the purpose of Performance Management?
Performance Management has three essential purposes:
1. Strategic purpose.
2. Administrative purpose.
3. Developmental purpose.
1. Strategic purpose
Unit 7 7 Employee Resourcing – LLC 4124
A Performance Management system serves to link employee performance to the overall