Summary hrm2604_complete_notes.

HRM Performance Management Handbook: Performance management, Aguinis, H. (2016 edition) These notes are for private use and comprises of summaries from the Performance Management required handbook and UNISA supplied study guide. Reviewing Flashcards for this subject is available on Q Flashcards Workbook 1 – 3 Workbook 4 – 6 Workbook 7 – 9 Workbook 1 Performance Management in Context Defining Performance Management Objective 1 Explain the concept of performance management (PM) A continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organisation. - Continuous Process - Alignment with Strategic Goals (Employee contributions are congruent to the organization’s goals) Performance Appraisal A method by which the job performance of an employee is documented and evaluated. Objective 2 Distinguish between performance management and performance appraisal. A. Performance Management A continuous process of improving the performance of individuals and teams and aligning performance with the strategic goals of the organisation. o Ongoing Process, throughout the year o Strategic Business Consideration o Ongoing feedback provided to improve performance o Driven by Line Manager o Emphasis on performance planning, analysis, review, development and improvement. B. Performance Appraisal (component of management) A method by which the job performance of an employee is documented and evaluated. o Once a year process o Assesses business Strengths and Weaknesses o Once-Off rating is given o Driven by HR o Emphasis on ratings and evaluation. The Performance Management Contribution Objective 3 Explain the contributions that a performance management system can make in the organisation. Advantages - Motivation to Perform is Increased - Increased Self-Esteem - Managers gain insight about subordinates - Definitions of job and criteria (expectations) are clarified. - Self-Insight and development are enhanced. (Improving upon weaknesses or faults) - Administrative actions are more fair and appropriate (rewards are given if certain criteria is met) - Organisational Goals are made clear. - Employees become more competent - Employee misconduct is minimised - Better Protection from lawsuits. (compliance with regulations) - Faster Identification between good and bad performance. - Supervisors’ views of performance are communicated more clearly. - Motivation, Commitment, and intentions to stay in the organisation are enhanced. - Voice behaviour is encouraged. (suggestions made towards innovation and efficiency) - Employee engagement is enhanced Disadvantages of Poorly Implemented Performance Management Systems Objective 4 Discuss how a poorly implemented performance management system affects both the organisation and the employee. Disadvantages - Increased Turnover - The use of false or misleading information. - Lowered Self-Esteem. - Wasted Time and Money - Damaged relationships (mistrustful) - Decreased motivation to perform. - Employee job burnout and job dissatisfaction - Increased risk of litigation (lawsuits for unfair appraisals) - Unjustified demands on managers’ and employee’s’ resources - Varying and unfair standards and ratings. - Emerging Biases - Unclear Rating System. (poor communication causes a lack of understanding of how rewards are presented) Aims & Role of Performance Management Systems Objective 5 Describe and identify the multiple purposes of a performance management system. Purposes