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Unit 7.doc

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Concordia University
MANA 298

Employee Resourcing – LLC 4124 UNIT 7 PERFORMANCE MANAGEMENT Unit Structure 7.0 Overview 7.1 Learning Outcomes 7.2 Introduction 7.3 Definitions 7.4 Meaning of Performance 7.5 Performance Appraisal and Performance Management 7.6 Feedback 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 Strengths of the 360-degree Feedback Approach Weaknesses of the 360-degree Feedback Approach 7.9 Summary Unit 7 1 Employee Resourcing – LLC 4124 7.0 OVERVIEW 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. 7.2 INTRODUCTION 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 7.3 DEFINITIONS 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 Baron, 1998). 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 MANAGEMENT What, in your opinion, is the difference between Performance Appraisal and Performance Management? 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 7.6 FEEDBACK 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. Activity 1 (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)”. Activity 2 (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 or
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