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MANAGING AND APPRAISING PERFORMANCE
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OVERVIEW

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Managing employee performance in any organisation is clearly a key variable in
organisational effectiveness and growth
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Performance management is an essential tool in both the formulation & implementation of
strategy
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Part of any performance management system involves undertaking a performance appraisal
with each employee
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(This is because the employees believe they are being incorrectly evaluated by the wrong
person i
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the person evaluating them lacks objectivity & is not fair or that the feedback is
not timely or constructive)
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Performance management is a management process of linking individual group and
organisation performance with the main strategic mission and values of the business
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“A performance management system can only be truly effective where it is perceived to be
fair by all of those involved in the process” (Gunnigle Heraty Morley 2006)
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With a planned & direct correlation to contingent pay & reward systems performance
management can be seen as a bridge between HRM & the achievement of strategic goals of
organisations
...
In certain cases it may involve finetuning existing performance; in other cases it may involve fundamental changes to policy,
market positioning, objectives, structures, sourcing materials, human resources & even
organisational structure
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e
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These
approaches include:
1
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3
...


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Performance related pay
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Empowerment &
Various forms of management by objectives (MbO)
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1 performance management loop
The objectives set out should be agreed between staff and manager but also should be
1
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Measurable quantity
3
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Relevant – relevant to organisations objectives
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Time-framed be completed within an agreed time scale
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Fig
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Performance Management Loop
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It’s a means of getting better results by understanding & managing
performance within an agreed framework of planned goals, standards & competency
requirements
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It is owned
& driven by line management
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Characteristics of a performance management system
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Agreement
2
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Feedback
4
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Dialogue
(b) Concerned with measuring outputs in the shape of delivered performance compared
with expectations expressed as objectives
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(d) It is based on agreement of role requirements, objectives & performance improvement
& personal development plans
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(f) It is a continuous & flexible process, involving managers & those they manage acting as
partners within a framework that sets out how they can best work together to achieve
the required results
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It functions as a continuous and evolutionary
process in which performance improves over time
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(j) Mainly applied to individual performance but can also apply to teams
...
e
...
)
Process of Performance Management
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A participative approach to designing the performance required i
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all members of the
organisation involved in its design
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This is based on the idea that all work
performance is driven by a range of corporate strategies and objectives, which are broken
down & translated into key functional or departmental objectives
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Built into this is a
continuous feedback requirement plus one annual formal review
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It is
specifically about aligning individual objectives to organisational objectives
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1
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2
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It should be a function of all good managers
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4
...
)
5
...

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-

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The real concept of a PMS is associated with an approach to creating a shared vision of the
purpose & aims of the organisation, helping each individual employee understand &
recognise their part in contributing to them & in so doing manage & enhance the
performance of both individuals & the organisation
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The system should have the full support of top management
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The meaning of performance – simply defined in terms of output, standards, achievements,
results
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The significance of values – upholding the core values of the organisation e
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quality,
concern for people, concern for equal opportunity, operating ethically
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The meaning of alignment – aligning individual & organisational objectives
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4
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5
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e
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Designing performance management system involves the following stages:
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Standards of performance for manager/departments are established
Standards of performance for individuals & groups are established
Policies, objectives, targets & plans are communicated to appropriate people
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Appropriate human resources should be made available
Resources & support are made available to support the achievement of the policies,
objectives, targets & plans
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Individual & group training & development needs that match the employers, individuals &
groups objectives are established
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Opportunities for groups and individuals to participate in their own performance reviews are
provided self - evaluation to 360’ evaluation
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Causes of conflict & instances of actual conflict are identified & procedures are developed
for their resolution
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Dealing with under-performers
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There are 5 basic steps required to manage underperformers, namely
1
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2
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3
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Whatever action is agreed both parties must understand how they
will know that it has succeeded
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4
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Provide the coaching, training, guidance, experience or facilities
required to enable agreed actions to happen
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Monitor and provide feedback
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Performance evaluation and target setting
Establishment of work standards
Identification of skills gaps
Facilitation of communications and motivation

The CIPD reported that performance appraisals are a definitive motivating factor…
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Inefficiency is due to:
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An unclear definition of the appraisee’s job
Unclear objectives
One or both parties being unaware of the format and aims of the appraisal interview
Untrained appraisers and/or appraisee’s
A high degree of subjectivity within the process
Collection of incomplete data
Motivational & developmental aspects are given little consideration
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Where the “pull” of future events desired by employees is seen as the main influence on
work behaviour
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Critical incident technique – results based on positive & negative behaviour in an employees
performance
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Relatively new appraisal technique designed to provide complete feedback on employees
performance
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MbO = management by objectives
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Increasing use of 360° feedback due to:
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Need for cost-effective alternatives to assessment centres
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Need for continuous measurement in continuous improvement efforts
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or leadership development
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Tell-and-sell approach
Directive and authoritative in nature, top-down
Manager telling employee
Attempting to convince employee of the fairness of the assessment
Little opportunity for the employee to participate
Little commitment to follow-up action
Not recommended as good HR practice
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Tell-and-listen approach
- Similar to above but some attempt made to involve the employee
- Manager communicates his/her evaluation of performance to employee & actively
encourages employees response
- Still ineffective
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Problem – solving approach
- Appraisal process is jointly conducted by the manager and the employee
- Manager asks the employee to discuss this performance against agreed targets & to express
any problems that may be affecting work behaviour
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Ethical dilemmas of the appraisal process
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Problematic use of trait – oriented and subjective evaluation criteria
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Organisational obligations
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Organisation must provide sound procedure for managers to use in conducting performance
appraisal
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Organisations must provide leadership from above
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