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QUESTIONS
1
Performance management is an ongoing communication process that involves the manager and
the employee in:
Identifying and describing essential job functions
Developing appropriate performance standards and objectives
Linking them to the University's mission and goals
Giving and receiving feedback about performance
Undertaking effective performance appraisals
Planning education and development opportunities to sustain improve or build on
employee work performance. (McAdam , & Casey , 2005 ).
Performance management needs to take account of both under-performance and high
performance. The employee management effectiveness is one of the most important factors in
the achieving company success and its competitive advantage. Therefore, performance
management is the continuous process of the planning, monitoring and reviewing employees
work objectives and their overall contribution to the company.
1.2 Performance Management as Cycle
Performance management is an ongoing process of communication between a supervisor and an
employee that occurs throughout the year, in support of accomplishing the strategic objectives of
the organization. The communication process includes clarifying expectations, setting objectives,
identifying goals, providing feedback, and reviewing results.
Managing Employee Performance:The Cycle
Overseeing performance and providing feedback is not an isolated event, focused in an annual
performance review. It is an ongoing process that takes place throughout the year. The
Performance Management process is a cycle, with discussions varying year-to-year based on
changing objectives. (Aguinis , 2009)
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Goals and objectives are discussed throughout the year, during check-in meetings. This provides
a framework to ensure employees achieve results through coaching and mutual feedback.
(Aguinis, 2009)
3
and work plan and the company's goals and objectives, and strategic plan. (Salas , Burke , &
Fowlkes , 2006)
1.2.2 Performance Management Monitoring
The employee performance and progress should be continuously monitored. "Continuous
monitoring" doesn't mean watching every aspect of how the employee fulfills assigned tasks and
activities. Managers should focus their attention on the achieved results, individual and team
dynamics affecting the work environment.
So, on the second stage of the performance management cycle, the employee and manager track
the employees development and performance. If it is necessary, the employees performance
plan is corrected to meet the changed circumstances. (Cheng et al, 2005)
4
results in a change of responsibilities or termination, as appropriate. (Nankervis & Compton,
2006 )
Job Analysis; Performance information may lead to redesign of jobs. Also accurate information
about jobs is key to develop criteria for performance appraisal. (Nankervis & Compton, 2006 )
Recruitment and Selection; Performance information lets managers know about the
effectiveness of alternative sources of recruitment and the effectiveness of their selection criteria
and procedures. Then ability to recruit and select employees may affect the types of criteria and
standards developed for performance appraisal. (Nankervis & Compton, 2006 )
Training and Development; Performance management systems provide information on
employees training and development needs; information on the performance appraisal systems
assesses the effectiveness of training. Performance appraisal tools may be designed to assess the
impact of training programs. (FMI Corporation, 2000)
Compensation; Compensation systems may be designed such that performance appraisal
information has an impact on employee compensation. A fair and equitable compensation system
may lead to higher levels of employee performance. (FMI Corporation, 2000)
Conclusion
An important aspect of performance management is the development of relevant appraisal
criteria for the employees position and the expectations of the organization. Appraisal data may
be gathered through a variety of mechanisms, including self, subordinate, team members, and
multisource or 360-degree feedback. Methods for organizing these data may involve a graphic
rating scale, ranking, a behavioral anchored rating scale, a behavioral observation scale, a critical
incidents record, and achievement of outcomes or objectives. The choice of approach is
dependent on the job; the organizational goals; and, perhaps most important, the culture of the
organization, particularly its readiness to confront performance issues honestly and openly.
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References
Aguinis , H. ( 2009 ). Performance management ( 2nd ed .). Upper Saddle River, NJ : Pearson
Prentice Hall .
Bennett , W. , Lance , C. E. , & Woehr , D. J. (Eds.) ( 2006 ). Performance measurement: Current
perspectives and future challenges . Mahwah, NJ : Lawrence Erlbaum Associates .
Salas , E. , Burke , C. S. , & Fowlkes , J. E. ( 2006 ). Measuring team performance in the wild:
Challenges and tips . In W. Bennett , C. E. Lance, and D. J. Woehr (Eds.), Performance
measurement: Current perspectives and future challenges (pp. 245 272 ). Mahwah, NJ :
Lawrence Erlbaum Associates