The Process of Performance Management

Performance
Management
Process
 Prerequisites

There are two important

prerequisites that are required
before a performance management
system is implemented:
(1) Knowledge of the organization’s
mission and strategic goals.
(2) Knowledge of the job in question.
 Prerequisites…continued
Knowledge of the organization’s mission and strategic goals
• Knowledge of the organization’s mission and strategic goals is a
result of strategic planning.
• Strategic planning allows an organization to clearly define its
purpose or reason for existing, where it wants to be in the
future, the goals it wants to achieve, and the strategies it will
use to attain these goals.
• Once the goals for the entire organization have been
established, similar goals cascade downward, with departments
setting objectives to support the organization’s overall mission
and objectives.
• The cascading continues downward until each employee has a
set of goals compatible with those of the organization.
 Prerequisites..…cont
Knowledge of the job in question
• This is done through job analysis.
• Job analysis is a process of determining the key components of a
particular job, including activities, tasks, products, services, and
processes.
• A job analysis is a fundamental prerequisite of any performance
management system.
• Without a job analysis, it is difficult to understand what constitutes
the required duties for a particular job. If we don’t know what an
employee is supposed to do on the job, we won’t know what needs
to be evaluated and how to do so.
• As a result of job analysis, we obtain information regarding the tasks
carried out and the knowledge, skills, and abilities (KSAs) required
of a particular job.

❖ Knowledge includes having the information needed to perform the

work, but not necessarily having done it.
❖ Skills refer to required attributes that are usually acquired by having
done the work in the past.
❖ Ability refers to having the physical, emotional, intellectual, and
psychological aptitude to perform the work, but neither having done
the job nor having been trained to do the work is required
 Performance planning

• At the beginning of each performance cycle,

the supervisor and the employee meet to
discuss and agree upon what needs to be
done and how it should be done.
• This performance planning discussion includes
a consideration of both results and behaviors
as well as a development plan.
 Results
• Results refer to what needs to be done or the
outcomes an employee must produce.
• Results need to include;
❖ -The key accountabilities, or broad areas of
a job for which the employee is responsible for
producing results. This information is
typically obtained from the job
description.
❖ -Specific objectives-are statements of
important and measurable outcomes.
❖ -Performance standards. A performance
standard is a yardstick used to evaluate how
well employees have achieved each objective
(e.g., quality, quantity, cost, and time).
 Performance of a University Professor
• Key accountability area: teaching (preparation and delivery
of instructional materials to students)
• An objective for teaching could be
• “to obtain a student evaluation of teaching performance of 3
on a 4-point scale.”
• Performance standard could be “to obtain a student
evaluation of teaching performance of at least 2 on a 4-point
scale”
 Behaviors
• Behaviour refers to how a job
• Although it is important to measure is done.
results, an exclusive emphasis on
results can give a skewed or • Consideration of behaviors
incomplete picture of employee includes discussing;
performance. -competencies- which are
• For example, for some jobs, it may be measurable clusters of KSAs
difficult to establish precise objectives that are critical in
and standards. determining how results will
• For other jobs, employees may have be achieved (Ex. customer
control over how they do their jobs but
service, written or oral
not over the results of their behaviors.
communication).
 Example for the
importance of behaviour

The sales figures of a salesperson could be

affected more by the assigned
• sales territory than by the
salesperson’s ability and performance.
• Thus, salespeople would like to be
appraised on such behavioral criteria
as communications skills and
• product knowledge in addition to sales
figures.
 An important step before the review
cycle begins is for the supervisor and
employee to agree on a development
plan.

Development plan should include

Development identifying areas that need
improvement and setting goals to be
Plan achieved in each area.

Development plans usually include

both results and behaviors.
• Once the prerequisites are met and the planning
phase has been completed, we are ready to begin the
implementation of the performance management
system.

• This includes performance execution, assessment,

review, renewal, and contracting.
 Once the review cycle begins,
the employee strives to
produce the results and
display the behaviors agreed
upon earlier as well as to work
on developmental needs.
Performance
execution
The employee has primary
responsibility and ownership
of this process.
 At the performance execution stage, the following factors
must be present
❖ Commitment to goal achievement.
The employee must be committed to the goals that were
set.
❖ Ongoing performance feedback and coaching.
The employee needs to take a proactive role in soliciting
Performance performance feedback and coaching from her
supervisor.
execution..cont ❖ Communication with supervisor.
❖ Collecting and sharing performance data.
The employee should provide the supervisor with
regular updates on progress toward goal achievement
❖ Preparing for performance reviews.
The usefulness of the self-appraisal process can be
enhanced by gathering informal performance
information from peers and customers
 Although the employee has primary responsibilities for
performance execution, the supervisor also needs to do his or
her share of the work.

Supervisors have primary responsibility over the following issues

1. Observation and documentation
Supervisors must observe and document performance on a daily basis.
2. Updates
As the organization’s goals may change, it is important to update and revise initial objectives,
standards, and key accountabilities, and competency areas.
3. Feedback
Feedback on progression toward goals and coaching to improve performance should be
provided on a regular basis.
 Performance execution..cont
4. Resources
• Supervisors have a responsibility to ensure that the employee has the
necessary supplies and funding to perform the job properly.
5. Reinforcement
• Supervisors must let employees know that their outstanding
performance is noticed by reinforcing effective behaviors and progress
toward goals. Also, supervisors should provide feedback regarding
negative performance and how to remedy the observed problem.
 Next Lesson

Performance assessment,
review, renewal, and
contracting.