1. Employee Performance Management
Chapter 12
Employee Performance Management
Stages in a performance management system (pp )
• The nature of 360-degree feedback
(pp.279- mid 281)

2. Performance Management Systems
Increasingly seen as a way to manage employee performance
Incorporates appraisal/review process
Establishing a framework in which performance by human resources can be directed, monitored, motivated and refined, and that the links in the cycle can be audited (Clark 2005)

3. Advantages of Performance Management Systems
Being tied closely to the objectives of the organisation
Represent a more holistic view of performance
Appraisal or review is integrated with performance planning
Performance is assessed and successful performance rewarded and reinforced
(Bevan and Thompson 1992)

4. Stages of a Typical PMS
Figure Stages of a typical performance management system

5. An Objective Setting Cascade
Figure An objective-setting cascade

6. A Shared View of Expected Performance
Individual objectives derived from team objectives
An agreed job description jointly devised
Objectives are outcome or results oriented
Objectives are tightly defined and include measures to be assessed
Objectives designed to stretch individuals and offer potential for development

7. SMART Objectives
Specific
Measurable
Appropriate
Relevant
Timed

8. Role of Objectives
Allow the development of a shared understanding of what is expected, allowing for the employee’s contribution
Allow employees to decide on an appropriate approach by using a ‘what’ rather than a ‘how’ statement
Generate greater degree of ownership and thus commitment to achieving the objective

9. Problems with Objectives
May be inappropriate ways of achieving a ‘what’ objective
Appropriate levels of resource and support may not be available
Employees may not always be able to control their outputs, so it is important to have some ‘how’ objectives

10. Delivering and Monitoring Performance
The manager’s role
Enabling role while staff are working to achieve the performance agreed
Organising resources
Organising off-job training
Being accessible
Providing ongoing coaching
Providing support and guidance

11. Reviews Normally informal Need not be part of any formal system
Can take place as needed
Provide a forum for employee reward in terms of recognition of progress

12. Formal Performance Review and Assessment
Need to concentrate on development issues to motivate
Assess the extent to which objectives have been met – may affect pay
Employee may be invited to draft initial assessment of performance
May lead to a rating of performance although this is often unpopular with employees

13. Reward Some systems still include link to money
May be unpopular and the amount may be too small to motivate
Promotion and development often used as a reward

14. 360-Degree Feedback
Whole range of feedback sought from a range of people and sources, e.g.:
Peers
Subordinates More senior managers
Internal customers External customers
Individuals themselves

15. Reasons for 360-Degree Feedback
Greater breadth than relying just on the line manager
Captures the complexities of performance
Argued to be more compelling and valid to those receiving the feedback
Powerful information for the development of self- awareness

16. Formal Process of 360-Degree Feedback
It is based on feedback Survey approach using questionnaire, contributor score on a given scale.
May be off the self or organisation specific but should focus on behavioural competencies
Contributors mark a score on a scale the extent to which an employee displays these behaviours
Individual chooses contributors and gets aggregated anonymous feedback
Feedback should be used to plan behaviour change and improve performance

17. Benefits of 360-Degree Feedback
Stronger ownership of development goals
Climate of constructive feedback
Improved communication
An organisation that is more open to change

18. Difficulties and Dilemmas
Tension between using to drive development and to drive pay
Rater confidentiality can be difficult to maintain
Evaluation may be biased and there is a danger of collusion
Demotivating without the resource to support identified development needs
May not motivate individuals to act
May lead to negative outcomes, e.g. reduced effort
Requires appropriate organisational climate

19. Summary (1 of 2)
Performance management systems include more than appraisals, and are linked to the strategic objectives of organisations
There is conflict in many appraisal and performance management systems
Measurement and rating systems can be problematical
Objective setting is a fundamental part of performance management
Current trends include greater employee ownership and involvement
360-degree feedback is becoming more widely use