Performance Management
Page
Subject
number
1 Introductory 1 - 13
2 14 – 29
Chapter 1 : Introduction To Performance Management
3 Chapter 2 : Performance Management transformation 30 – 34
4 Chapter 3 : Performance Elements 35 – 44
5 Chapter 4 : Measurable Standards 45 – 63
6 Chapter 5 : Evaluate Performance 64 -73
7 chapter 6 : Organizational performance 74 – 84
8 Case study + general review 85 – 154
9 References 155
Chapter One
Introduction To Performance
Management
Chapter Outlines :
• Introduction
• Performance Management What Is Happening In Sa?
• Performance Management Defined
• The Link To Training And Development
• Benefits Of Performance Management
• Selecting And Evaluating A Pms
• Performance Management And Coaching
• Performance Audits
• Performance And Reward
Introduction
• “Since my last report, this employee has reached rock
bottom and shows signs of starting to dig.”
• “I would not allow this employee to breed.”
• “Works well under constant supervision and cornered
like a rat in a trap.”
• “He sets low personal standards and then consistently
fails to achieve them.”
• “This associate is really not so much of a has-been,
but more of a definitely won’t be.”
• The above quotes are actual comments made by
managers on employees’ performance review forms –
although humorous, they illustrate what performance is
NOT!
PERFORMANCE MANAGEMENT DEFINED
• Performance Management is the process of
defining clear objectives and targets for
individuals and teams, and the regular review of
actual achievement and eventual rewarding for
target achievement.
Performance Management Model
• Planning Performance:
1. Setting objectives
2. Outlining development plans
3. Getting commitment
• Maintaining Performance:
1. Monitoring performance
2. Coaching
3. Feedback
• Reviewing Performance:
1. Formal reviews
2. Assess against objectives
• Reward Performance:
1. Link to pay
2. Results = performance
• PERFORMANCE
• MANAGEMENT
• PROCESS
Performance Management Model
Planning Performance:
Setting objectives
Reward Performance: Outlining development plans
Link to pay Getting commitment
Results = performance
PERFORMANCE
MANAGEMENT
PROCESS
Maintaining Performance:
Reviewing Performance:
Monitoring performance
Formal reviews Coaching
Assess against objectives
Feedback
Business strategy, stakeholders, key economic wealth drivers
BENEFITS OF PERFORMANCE
MANAGEMENT
• The advantages include:
1. Integration
2. Open Communication
3. Improved Performance
4. Training and Development
5. Clarity of Standards/Requirements
6. Placement of Individuals
7. Increased Objectivity
8. Equitable Remuneration
9. Structured Career Planning
SELECTING AND EVALUATING A PMS
• The following aspects should be considered when you evaluate a new
Performance Management System:
1. Level of employee participation and involvement?
2. Is it competency-based? (Competencies refer to the required
knowledge, skills and behaviours that are required to achieve objectives)
3. Is it form-driven or REAL Performance Management? Form-driven
performance focuses on the completion of the forms and not on the
daily feedback and monitoring
4. Is it linked to rewards AND development?
5. Does it focus on both the “what” and the “how” of result achievement?
6. Does the process incorporate training (both process and soft skills)?
7. Is it generic, and can it be customised to your organisation’s needs and
culture?
Success factors in implementing
Performance Management:
Relevance
Link to strategy, clear job goals, up-to-date job profiles
Reliability
Consistent measurement, rating errors
Discriminability
Ability to discriminate between good and poor performance
Freedom from contamination
External factors should not influence measurement (resources, line of sight)
Practicality
Easy to use, understandable, manageable administration
Acceptability
Perceived legitimacy, involvement
Legal compliance
Labour law compliance, Employment Equity Act, substantive and procedural
fairness
PERFORMANCE MANAGEMENT AND
COACHING
• We coach because of:
1. The amount of change that occurs in
organisation’s today
2. To insure that the organisation reaches its
performance targets
3. The fact that continuous learning is now a
way of life
PERFORMANCE AUDITS
• Key topics that should be included in an audit
1. Is there a formal Performance Management
Policy
2. Training of managers and staff
3. Clarity and relevance of objectives
4. Application of the process (consistency)
5. Understanding and buy-in of the staff
6. How is it linked to pay
7. The correlation between actual ratings and
corporate performance
PERFORMANCE AUDITS
• an audit can utilise any (or a combination) of the following
approaches/methodologies:
1. Focus groups (focus groups use a representative sample
of employees to determine and discuss perceptions,
attitudes, etc).
2. One-on-one interviews (usually with more senior
employees)
3. Questionnaires (paper-based evaluations, using specific
questions)
4. Document reviews (a formal review of all related
documents, i.e. policies, forms, procedure manuals and
training material)
