Performance management
Allows human resource managers to determine if employees are
completing tasks to the business’s desired standards and identify
areas for improvement
Employees are a vital component of a business; therefore, it is
important to monitor their performance
Management by objectives
Involves both managers and employees collaboratively setting
individual employee goals that contribute to the achievement of
broader business objectives
When implementing management by objectives, managers will
work with employees to create specific goals
1. Define business objectives
2. Manager and employee collaboratively set individual goals that align with
the broader business objectives
3. Evaluate employee performance in terms of the achievement of the
achievement of each goal
4. Provide feedback to employees to help them improve their performance,
and determine whether further training is required
Advantages
- Aligning employee objectives with the business’s overall
objectives means that employees are always working towards
business goals, leading to improvements in business
performance
- Employees may gain a sense of achievement if they reach their
individual goals, improving motivation
- Reviewing the performance of employees may be done quickly,
as success is determined by the extent to which objectives have
been met
, Disadvantages
- Employees may take harmful shorts in their work in order to
achieve their objectives, which can negatively impact progress
towards overall business objectives
- Failure to achieve personal objectives may be demoralising
- Developing objectives that benefit bother the business and
employees can take time
- Employees that achieve objectives may desire monetary
rewards or promotions, increasing the business’s expenses
Performance appraisals
Involve a manager assessing the performance of an employee
against a range of criteria, providing feedback, and establishing
plans for future improvements
Advantages
- Communication between managers and employees during one-
on-one reviews can improve workplace relationships
- Increased communication between employees and managers
can provide employees with clear direction on how to improve
their performance
Disadvantages
- Employees may lose motivation if they receive multiple poor
performance appraisals
- This process can be time consuming as managers individually
review each employees’ performance
- Staff who perform well may desire a promotion or financial
reward, increasing the business’s expenses
Self-evaluation
Involves an employee assessing their individual performance
against a set of criteria
As a performance management strategy, self-evaluation enables
a manager to gain insight into an employee’s perception of their
own ability
Allows human resource managers to determine if employees are
completing tasks to the business’s desired standards and identify
areas for improvement
Employees are a vital component of a business; therefore, it is
important to monitor their performance
Management by objectives
Involves both managers and employees collaboratively setting
individual employee goals that contribute to the achievement of
broader business objectives
When implementing management by objectives, managers will
work with employees to create specific goals
1. Define business objectives
2. Manager and employee collaboratively set individual goals that align with
the broader business objectives
3. Evaluate employee performance in terms of the achievement of the
achievement of each goal
4. Provide feedback to employees to help them improve their performance,
and determine whether further training is required
Advantages
- Aligning employee objectives with the business’s overall
objectives means that employees are always working towards
business goals, leading to improvements in business
performance
- Employees may gain a sense of achievement if they reach their
individual goals, improving motivation
- Reviewing the performance of employees may be done quickly,
as success is determined by the extent to which objectives have
been met
, Disadvantages
- Employees may take harmful shorts in their work in order to
achieve their objectives, which can negatively impact progress
towards overall business objectives
- Failure to achieve personal objectives may be demoralising
- Developing objectives that benefit bother the business and
employees can take time
- Employees that achieve objectives may desire monetary
rewards or promotions, increasing the business’s expenses
Performance appraisals
Involve a manager assessing the performance of an employee
against a range of criteria, providing feedback, and establishing
plans for future improvements
Advantages
- Communication between managers and employees during one-
on-one reviews can improve workplace relationships
- Increased communication between employees and managers
can provide employees with clear direction on how to improve
their performance
Disadvantages
- Employees may lose motivation if they receive multiple poor
performance appraisals
- This process can be time consuming as managers individually
review each employees’ performance
- Staff who perform well may desire a promotion or financial
reward, increasing the business’s expenses
Self-evaluation
Involves an employee assessing their individual performance
against a set of criteria
As a performance management strategy, self-evaluation enables
a manager to gain insight into an employee’s perception of their
own ability
