A manager is responsible for the application

and performance of knowledge.

—PETER F. DRUCKER
 Definition
of PM

Continuous
process Alignment
• Identify with
• Measuring strategic
goals
• Developing
performance
of individuals
and teams
Performance management (PM) ≠ Performance appraisal
(PA)

PM

PA
Definition of PM (continued)
PM PA
 Strategic business
 Driven by HR
considerations  Assesses employee
 Driven by line manager  Strengths

 Ongoing feedback  Weaknesses

 Once a year
 Lacks ongoing feedback
1-4
Contribution of PM

 Employee
 Manager
 Organization/HR function
Employees

Clarify definition of job and success

criteria
Increase motivation to perform
Increase self-esteem
Enhance self-insight and development
Managers

 Supervisorscommunicate views of performance

more clearly
 Managers gain insight about subordinates
 There is better, more timely, identification of
good and poor performance
 Employee performance improves
Organization/HR function

 Clarify organizational goals

 Facilitate organizational change
 Administrative actions are more fair and
appropriate
 There is better protection from lawsuits
 Disadvantages/Dangers of Poorly
Implemented PM Systems for
Employees

 Lowered self-esteem
 Employee burnout and job dissatisfaction
 Damaged relationships
 Use of false or misleading information

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 1-9

 Disadvantages/Dangers of Poorly
Implemented PM Systems for Managers

 Increased turnover
 Decreased motivation to perform
 Unjustified demands on managers’ resources
 Varying and unfair standards and ratings

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 1-10

 Disadvantages/Dangers of Poorly
Implemented PM Systems for
Organization/HR Function
 Wasted time and money
 Unclear ratings system
 Emerging biases
 Increased risk of litigation

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 1-11

 Integration with other Human
Resources and Development
Activities
 PM provides information for:
Development of training to meet
organizational needs
Workforce planning
Recruitment and hiring decisions
Development of compensation systems
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 1-12
Class activity

 Doyou think that final exam can determine

your learning outcome? Please discuss it?