MZUMBE UVERSITYMZUMBE UNIVERSITY

PUB 324: Performance Management Core Subject for BHRM III, BPA III, BPA (RAM) III

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Introduction to Performance Management

Definition and rationale for performance management

Background and scope of performance management

Factors that influence performance

Performance management process

Ack Michael Armstrong

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What is performance management?

A strategic and integrated approach to bring success to an organisation by improving the performance of people and by developing capabilities of teams and individuals

Strategic / integrated / performance improvement / development

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Rationale for Performance Mgt.

1. Creates a link between organizational goals/objectives and the staff responsible for implementing them. Information cascades down.

2. Demonstrates commitment by the organization and managers to staff in terms of interest and time.

3. Enhances staff communication/morale

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Rationale cont…..

4. Encourages staff feedback on situations and concerns; provides an opportunity to highlight problems in advance.

5. Obtains more objective information on performance results for use in business planning, promotion and remuneration decisions.

6. Creates a climate for greater individual and managerial effectiveness, usually reflected in the bottom line.

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Scope of Performance Management

Performance Management is about managing the organisation.

It is also about managing within the context of the business(its internal & external environment).This will affect how it is developed, what it sets out to do and how it operates.

Performance management concerns everyone in the business- not just managers.

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Scope of PM cont…

It rejects the cultural assumption that only managers are accountable for the performance of their teams and replaces it with the belief that responsibility is shared between managers and team members.

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Scope of PM cont…

The Holistic Approach to PMThe holistic covers every aspect and concerns

the organisation wholistically.It takes a comphrehensive view of the constituents of performance, how those contribute to desired outcomes at the organisational, departmental, team and individual levels, and what needs to be done to

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improve these outcomes.

PM is based on the belief that everything that people do at work at any level contributes to achieving the overall purpose of the organisation. It is therefore concerned with what people do(their work), how they do it (their behaviours) and what they achieve(their results).

MZUMBE UVERSITYScope of PM cont…

PM as an Integrating Force.

(a) Vertical integration.

Integration is achieved vertically with the business strategy and business plans and goals.

Team and individual objectives that support the achievement of corporate goals are agreed.These take the form of interlocking objectives from the corporate to functional or business unit level and down to teams and individual level.

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Steps need to be taken so that the goals are in alignment.This can be a cascading process, i.e. objectives flow from top to bottom. But it should also be a bottom-up process, individuals and teams being given the opportunity to formulate their own goals within the framework provided by the overall purpose and values of the organisation.

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PERFORMANCE MGT CASCADE

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(b)Horizontal Integration

Horizontal integration means aligning PM strategies with other HR strategies concerned with valuing, paying, involving and developing people. It can act as a powerful force in integrating these activities.

MZUMBE UVERSITYBackground to PMThe concept of PM has been one of the most important

positive developments in the sphere of HRM in recent years.

The phrase was first coined by Beer and Ruh in 1976 but it did not become recognised as a distinctive approach untill the mid 1980s, growing out of realisation that a more continuous and integrated approach was needed to manage and reward performance.

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All too often, crudely developed and hastily implemented Performance Related Pay (PRP) and appraisal systems were not delivering results people expected.

PM has risen from the old-established but somewhat discredited systems of merit rating and MBO.

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Factors Affecting performance

PERSONAL MOTIVATION

WORK ENVIRONMENT

Knowledge and skills

PERFORMANCE

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Working at the factors

Personal motivation and ambition

Knowledge and skills

Work environment

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Working at the factors

Personal motivation and ambition

Knowledge and skills

Work environment

Reward systems

Assessment Clear goals Fair appraisal

Development Training Needs analysis

Resources

Culture Systems Leadership Teamwork

MZUMBE UVERSITYThe PM ProcessThe basic components of the PM process

are goal setting,performance feedback,coaching,development,appraisal and recognition. These components build on each other.

Goal setting is the basis for the ongoing evaluation of performance,performance feedback,coaching, development and recognition provided to enhance employee performance.

Ultimately, the application of the formal performance appraisal is to evaluate goal achievement

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PM is not a fixed sequence of events but a continuous process that is constantly renewing itself as performance unfolds.

The elements of the PM process are not stand-alone HR programmes.They are part of an integrated system that is aligned with organisational objectives.

MZUMBE UVERSITYThe PM Process cont…The components of PM are also integrally linked. For

instance, consider the following relationships btn goal-setting,feedback,coaching and appraisal:

Goals provide the standard for feedback and performance appraisal;

Feedback leads to setting goals for development and performance improvement;

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Coaching helps to process feedback, set meaningful goals, practice new behaviours and track changes in performance;

Performance appraisal evaluates goal attainment and is a basis for feedback;

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Furthermore, ongoing feedback and coaching focus attention on behaviours that contribute to goal accomplishment and performance improvement.

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Concerns of performance management

Measurement and review

Outputs, outcomes, inputs, processes

Planning for future success

Continuous improvement

Communication

Stakeholders

Ethics - respect and fairness

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General Principles of the programme

Human Resources are the most important determinant of organisational success

All managers and all organisations should be concerned to get the best from their staff

This programme considers some of the problems and many of the possible solutions

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General principles of the programme

Management should look at how they Define what qualities are needed by their

staffAcquire and retain staff who have or will

develop those qualities Encourage those qualities to be shown and

developed in the workplace