Prepared by:

Burato, Antoinette
Manuel, Lei Rheza
WHAT IS PERFORMANCE
MANAGEMENT?
Performance Management is
a continuous process of

Identifying
The
Measuring Performance of
Developing individuals and
an teams Strategic
With goals of the
Aligning d
the Organizatio
performance
n
Other Definitions are:
Performance management is:
“The development of individuals
with competence and
commitment, working towards the
achievement of shared
meaningful objectives within an
organisation which supports and
encourages their achievement”
(Lockett, J. ).
Other Definitions are:
Performance management is: the
process of “Directing and supporting
employees to work as effectively and
efficiently as possible in line with the
needs of the organisation” (Walters)

“Performance management is 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
 Evolution of Performance
Management
MANAGEMENT
BY
OBJECTIVIED
MERIT PM
RATING
PERFORMANC
E
MANAGEMENT

1960’ NOW
1920’ 1960’ 1970’ 1980’
s–
s s s s
1970’
s
PERFORMANCE
APPRAISAL
RESULTS
BASED
PERFORMANC
E APPRAISAL
The term performance
management gained its
popularity in early 1980’s when
total quality management
programs received utmost
importance for achievement of
superior standards and quality
performance.
 WHAT IS THE
PURPOSE OF
PERFORMANCE
MANAGEMENT
Identify high performers and drive
quality performance
Manage and improveSYSTEM?
the workplace
Reward employees financially (Merit)
Protect the Organization through the
Performance Management documentation
process
Succession planning
Locate and “weed out” sub-par and
underperforming employees
 MAJOR PURPOSES OF
PERFORMANCE
MANAGEMENT

Strategic
Strategic Administrative
Administrative Developmental
Developmental
Purpose
Purpose Purpose
Purpose Purpose
Purpose
 FIVE CRITERIA FOR
EFFECTIVE
PERFORMANCE
MANAGEMENT
STRATEGI
C RELIABILI ACCEPTA SPECIFICI
VALIDITY TY BILITY TY
CONGRUE
NCE
 MAJOR DETERMINANTS OF INDIVIDUAL
PERFORMANCE
ORGANIZATIONAL
STRATEGY
(Long and Short term
goals and values)

INDIVIDUAL OBJECTIVE
ATTRIBUTES INDIVIDUAL RESULTS
(Skills, abilities) BEHAVIORS

SITUATIOANL
CONSTRAINTS
(Culture and economic
conditions)
PARTS OF PERFORMANCE
MANAGEMENT SYSTEM

JOB
ANALYSIS
PERFORM
ANCE
APPRAISA
PERFORM
L ANCE
FEEDBACK
 What is Job Analysis?

“the process of determining ,by

observation and reporting  pertinent
information relating to the nature of
specific job. It is the determination of
tasks which comprise the job and of
the skills, knowledge , abilities and
responsibilities required of the
worker of the successful performance
and which differentiate one job from
all others” - U.S.  Department of
 Concepts of
Job Analysis
1.Job
2.Position
3.Occupation
4.Duty
5.Task
6.Job Family
7.Job Classification
8.Job Evaluation
 Purpose of
Job Analysis
1.Job redesign
2.Work Standards
3.Miscellaneous
Uses of Job Analysis
1)Organizational design
2)Human resource planning      
3) Recruitment and selection
4) Placement and orientation
5) Training  and development    
6) Performance appraisal
7) Career path planning  
8) Job design
9) Job evaluation
10) Labour relations
11) Employ counseling
 Process of Job Analysis

 Collection of  background
information
 Selection of representative position
to be analyzed
 Collection of job analysis data
 Developing a job description
 Developing a job specification
 Developing employee specification
Benefits of Job Analysis
 Organization & human resource
planning
 Selection, induction, & training
 Performance appraisal
 Job evaluation
 Wages & salary administration
 Internal mobility
 Preventing dissatisfaction
 Discipline
 Health safety
 Industrial relations
PARTS OF PERFORMANCE
MANAGEMENT SYSTEM

JOB
ANALYSIS
PERFORM
ANCE
APPRAISA
L
What is Performance Appraisal?
A performance appraisal is a balancing
act. It should balance the need to look
backwards (the review), with the need to
look forwards (the plan). It should also
balance the need to address weaknesses,
whilst at the same time building on
strengths. 
 Why use performance appraisals?

to give employees feedback on their

performance;
to identify employee training needs;
to obtain information which can be used
to assist in the allocation of
organizational rewards;
 to obtain information which can be used
for organizational diagnosis and
development.
 Why are
appraisals
important?
 Definition of Performance
appraisal
Procedure that involves the following:
Setting work standards;
 Assessing the employees’ actual
performance related to standards;
providing feedback to the employee
with the aim of motivating that
person to eliminate performance
deficiencies or to continue to perform
above par.
Systematic evaluation of the performance
of employees and to understand the
abilities of a person for further growth and
development.
The Supervisors measure the pay of
employees and compare it with targets
and plans.
The supervisor analyses the factors
behind work performances of
employees.
The employers are in position to guide
the employees for a better performance.
Other Definitions are:
• “Performance appraisal involves identification,
measurement and management of human performance in
organization”. (Balkin and Cardy)

• “Performance appraisal is a systematic and formal process

by means of which the job relevant strength and weakness of
employees are identified, observed, measured recorded and
developed”.(Swanepole)

• “Performance appraisal is the process of systematically

evaluating performance and providing feedback upon which
performance adjustments can be made”. ( Schermerhorn,
Hunt and Osborn)
Basic purpose of
performance
appraisal
evaluation
system

feedback
system
bjectives of Performance Apprais
 To maintain records in order to determine
compensation packages, wage structure,
salaries raises, etc.
 To identify the strengths and weaknesses
of employees to place right men on right
job.
 To maintain and assess the potential
present in a person for further growth and
development.
 To provide a feedback to employees
regarding their performance and related
status.
 It serves as a basis for influencing working
habits of the employees.
 Essential of Good Performance
Appraisal System

Clear objectives
Mutual Trust Standardization

Job
Relatedness
Training Documentation

Individual
differences
Feedback and Post appraisal
participation Interview
Review and
appeal
ADVANTAGES OF PERFORMANCE
APPRAISAL

Promotion
Compensation
Employees development
Selection validation
Communication
Motivation
 O F P E R F O R MA N CE
DISADVANTAGES
APPRAISAL l) p praisa
n o f P erf o rm anc e A
itatio
(Problems and/or Lim

1.      Errors in Rating  
2.      Halo effect 
3.      Stereotyping 
4.      Central Tendency  
5.      Constant error
6.      Personal Bias  
7.      Spill over effect  

8.      Lack of Reliability
9.      Incompetence
 METHODS OF PERFORMANCE
APPRAISAL

 Critical incident method

 Weighted checklist method 
 Graphic rating scales method
 Essay Evaluation method
 Behaviorally anchored rating scales method
 Management By Objectives (MBO) method
 Performance ranking method
 360 degree performance appraisal 
 Forced ranking (forced distribution)
 Behavioral Observation Scales
PARTS OF PERFORMANCE
MANAGEMENT SYSTEM

JOB
ANALYSIS
PERFORM
ANCE
APPRAISA
PERFORM
L ANCE
FEEDBACK
What Is Performance Feedback?
The performance 
feedback process is
ongoing between
managers and
employees. The 
exchange of information
involves both 
performance expected
and performance
exhibited. 
 Types of Performance
Feedback

1. Positive/ Affirming
2. Constructive/ Developmental 
3. Negative/ Critical 
Positive/ Affirming Feedback
Make someone aware of a 
specific behaviour or action 
that they have taken

Is a tool to:  Understand specifically the 
positive nature of the impacts 
of that behaviour or action

Increase the chances of 
further examples of that 
behaviour or action in the 
future
Constructive/Developmental Feedback
Is information-specific, issue-focused, and based 
on observation 

Praise Criticism 
(Favorable  (Unfavorable 
Judgement) Judgement)
Situations which require giving
Constructive feedback
• Ongoing performance discussions
• Providing specific performance pointers 
• Following up on coaching discussions
• Giving corrective guidance 
• Letting someone know the consequences 
of their behavior
Some clues that constructive feedback is
needed are when:

• Someone asks for your opinion about 
how they are doing 
• Unresolved problems persist 
• Errors occur again and again 
• An employee's performance doesn't 
meet expectations 
• A peer's work habits disturb you
 SIX WAYS TO MAKE FEEDBACK
CONSTRUCTIVE
1. If  you  can't  think  of  a  constructive  purpose 
for giving feedback, don't give it at all
2. Focus on description rather than judgement
3. Focus on observation rather than inference
4. Focus on behavior rather than the person
5. Provide  a  balance  of  positive  and  negative 
feedback 
6. Be aware of feedback overload. 
 THE SIX STEP METHOD FOR
GIVING CONSTRUCTIVE FEEDBACK
1. State the constructive purpose of your
feedback.
2. Describe specifically what you have
observed.
3. Describe specifically what you have
observed.
4. Describe your reactions.
5. Give the other person an opportunity to
respond.
6. Offer specific suggestions.
Giving negative feedback: correcting poor performance
 Note poor performance immediately upon observing it.
 Specify what does not meet expectations.
 Refer to performance standards.
 Note the effect of observed performance on work 
group/organization.
 Model or restate appropriate performance.
 Describe negative consequences.
 Obtain agreement on the problem.
 Mutually seek solutions.
 Agree on action plan.
 Encourage improvement.
 Set date for check (if appropriate).
 Don't belabor a point.
 Move forward after the discussion.
 Avoid giving correction in public.
 Giving positive feedback:
praising good performance

Praise  immediately  on  observing  good 

performance.
Be  specific  about  what  was  good  about 
performance; refer to performance standards.
Note  how  meeting  (or  exceeding)  standards 
helps  work  group/organization  meet  strategic 
objectives.
Encourage  maintaining  this  level  of 
performance.
CYCLE OF PERFORMANCE MANAGEMENT

Alignin
Model
g
&
Objecti
Mentor
Setting ves Giving
Objecti Feedba
ves ck

Positive
Reinforcement