The Performance Management Process
Step 1: Defining Performance Expectation and Goals
•Performance expectations should be linked to current strategic objectives and implementation
•Some job descriptions might not clarify what employers want from the employees.
oSales associates all have the same job description but each sales manager may have
individual ideas about what he/she wants.
Step 2: providing ongoing feedback and Coaching
•Managers and employees should continue to discuss progress or ongoing performances
•Important to have open 2-way communication
•Both the employee and the manager need to check in frequently throughout the performance
management process to talk about the progression towards goals.
•In some organizations, strategies and objectives change quickly and managers and employees have
to match their goals to be consistent with the organization’s goals\
Step 3: Conducting Performance Appraisal and Evaluation Discussions
•Appraisal itself is generally conducted with the aid of a predetermined and formal method
•Formal Appraisal Methods :
1. Graphic Rating Scale:
A scale that lists a number of traits and a range of performance for each. The
employee is then rated by identifying the score that best describes his or her level
of performance for each trait.
Many firms specify the duties to be appraised
2. Alternation Ranking Method:
Ranking employees from best to worst on a particular trait
3. Paired Comparison Method:
Ranking employees by making a chart of all possible pairs of employees for each
trait and indicating the better employee of the pair
Helps make the ranking method more precise
4. Forced Distribution Method:
Predetermined precentages of rates are placed in various performance categories.
Very demotivating because it proportion is classified as below average for
5. Critical Incident Method:
Keeping a record of uncommonly good or undesirable examples of an employee’s
work-related behaviour and reviewing the list with the employee at predetermined
•Hard facts for explaining the appraisal