HRM2604 2017
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 Quizlet.com
Flashcards
Workbook 1 – 3 https://quizlet.com/_3isv0n
Workbook 4 – 6 https://quizlet.com/_3iw6xt
Workbook 7 – 9 https://quizlet.com/_3jhr8e
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
, o Strategic Purpose
Reinforces behaviour consistent with the attainment of organisational goals.
To help top management achieve strategic objectives
o Administrative Purpose
Implementation of reward Systems through information.
To furnish valid and useful information for making administrative
decisions about employees.
o Informational Purpose
Provides Information on where to improve and what is expected.
To inform employees about how they are doing and about the
organisation’s and supervisor’s expectations.
o Developmental Purpose
Using feedback to improve long and short term performance.
To allow managers to provide coaching to their employees.
o Organisational Maintenance Purpose
Provides information used in workforce planning. (Anticipating and responding to
changes)
To improve information to be used in workplace planning and allocation
of human resources.
o Documentational Purpose
Collects relevant information
To collect useful information that can be used for various purposes.
Characteristics of an ideal Performance Management System
Objective 6
Describe and explain the key features of an ideal performance management system.
o Strategic Congruence
Individual goals must be aligned with organisational goals.
o Context Congruence
The organization’s culture should be congruent with that of their
country or region.
o Thoroughness
Everyone should be evaluated.
o Practicality
Readily available to use.
o Meaningfulness
Evaluations take place at regular intervals at appropriate moments.
o Specificity
Provide detailed concrete guidance on expectations and meeting them.
o Identification of Effective and Ineffective Performance
System should allow for distinguishing between effective and ineffective
behaviour.
o Reliability
Measures of performance that are consistent and error-free.
o Validity
Measures include all relevant performance facets and exclude irrelevant
performance facets as well as factor outside f employee’s control.
o Acceptability and Fairness
Systems is perceived as fair and acceptable.
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 Quizlet.com
Flashcards
Workbook 1 – 3 https://quizlet.com/_3isv0n
Workbook 4 – 6 https://quizlet.com/_3iw6xt
Workbook 7 – 9 https://quizlet.com/_3jhr8e
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
, o Strategic Purpose
Reinforces behaviour consistent with the attainment of organisational goals.
To help top management achieve strategic objectives
o Administrative Purpose
Implementation of reward Systems through information.
To furnish valid and useful information for making administrative
decisions about employees.
o Informational Purpose
Provides Information on where to improve and what is expected.
To inform employees about how they are doing and about the
organisation’s and supervisor’s expectations.
o Developmental Purpose
Using feedback to improve long and short term performance.
To allow managers to provide coaching to their employees.
o Organisational Maintenance Purpose
Provides information used in workforce planning. (Anticipating and responding to
changes)
To improve information to be used in workplace planning and allocation
of human resources.
o Documentational Purpose
Collects relevant information
To collect useful information that can be used for various purposes.
Characteristics of an ideal Performance Management System
Objective 6
Describe and explain the key features of an ideal performance management system.
o Strategic Congruence
Individual goals must be aligned with organisational goals.
o Context Congruence
The organization’s culture should be congruent with that of their
country or region.
o Thoroughness
Everyone should be evaluated.
o Practicality
Readily available to use.
o Meaningfulness
Evaluations take place at regular intervals at appropriate moments.
o Specificity
Provide detailed concrete guidance on expectations and meeting them.
o Identification of Effective and Ineffective Performance
System should allow for distinguishing between effective and ineffective
behaviour.
o Reliability
Measures of performance that are consistent and error-free.
o Validity
Measures include all relevant performance facets and exclude irrelevant
performance facets as well as factor outside f employee’s control.
o Acceptability and Fairness
Systems is perceived as fair and acceptable.
