Definition of Performance Management According to Armstrong and Baron (1998), the term Performance Management is both a strategic and

an integrated approach to deliver successful results in an organisation by improving the performance of employees and developing the capabilities of individuals. Some of the actions included in the performance management system would be

Developing clear job descriptions Selecting appropriate people with an appropriate selection process Negotiating requirements and accomplishment-based performance standards, outcomes, and measures Providing effective orientation, education, and training Providing on-going coaching and feedback Conducting quarterly performance development discussions. Designing effective compensation and recognition systems that reward people for their contributions Providing promotional/career development opportunities for staff Assisting with exit interviews to understand why valued employees leave the organization

References http://www.managementstudyguide.com/performance-management.htm http://humanresources.about.com/od/glossaryp/g/perform_mgmt.htm

Importance of Performance Management in an organisation Working towards common goal - It is important for employees to know and understand the organisations mission, vision and goals. This allows employees to align themselves with the organisations goals thus working towards a common goal. A clear understanding of job expectations - When employees have a clear understanding of their roles and responsibilities in the organisation, they will tend to perform better thus contributing to the productivity and success level of the organisation.

Regular feedback about performance - Through feedbacks, employees are able to identify their strengths and weaknesses thus allowing them to tap on their strengths and improve their weaknesses. When employees are accessed on their performance, it allows them to grow as an individual as well, motivating them to perform better in the organisation. Advice and steps for improving performance - Performance management can aid employees by identifying ways in which they can improve their performance and provides employees with opportunities that expands their career prospects. An example of steps taken sending employees for training to upgrade themselves. Rewards for good performance - When employees are rewarded for good performance, they will feel that their effort put in is worthwhile. They will feel satisfied with their job thus motivating them to perform better in the near future. References http://www.fsa.usda.gov/Internet/FSA_File/perf_mgmt_09_email1.pdf

Issues faced in the organisation that is related to Performance Management 1. Sam thinks that performance management is irrelevant. Why? He felt that it was impractical and time consuming. There wasnt a need for annual reports on the performances of the employees as he knew who the good performers were and who werent. In his point of view, a good performer is someone who receives no complaints and met targets.

How to overcome the various issues? 1. How can Sam improve on his performance management strategies? Change his way of thinking Change the way he does things in the organisation (eg, how he differentiates the good and bad performer) Approach Sandy, an expert in performance management, for assistance Go for trainings and courses related to performance management

2. How should Sam go about revamping performance management at Money4U? Refer to Question 1.

3. When Penny Wise told Sam to come out with a plan tailored to all levels of the organisation what did she mean? Give examples of such plans. In order to evaluate employees performance, organisation should first list down the requirements that are needed of the employee, based on their roles and responsibilities in the organisation. Identify elements that are deemed unacceptable in the organisations (eg, punctuality) These should then be communicated to the employees so that they will know what is expected of them. Once employees do not adhere to the various elements stated or show any form of behavioural issues, the manager should communicate with the following employee. Detailed overview on How to Conduct an Employee Performance Evaluation http://www.ehow.com/how_5134332_do-employee-performance-evaluation.html Organisation level, group/department level, individual level Examples: Have monthly meetings, peer and individual evaluations