The performance management systems
Performance management is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization (Aguinis, p.2).
The main difference between performance management and performance appraisal The evaluation scope and time frame The evaluation approach The individual performance management covers performance appraisal.
Performance management systems Performance management systems that do not make explicit the employee contribution to the organizational goals are not true performance management systems.
Individual performance management approaches The business-focused ways The activity-focused ways The process-and customer-focused ways The person-focused ways
Contributions of performance management systems Motivation to perform is increased. Self-esteem is increased. Managers gain insight about subordinates. The definitions of job and criteria are clarified. Self-insight and development are enhanced. Administrative actions are more fair and appropriate. Organizational goals are made clearer. Employees become more competent. There is better protection from lawsuits. There is better and more timely differentation between good and poor performers. Supervisors’ views of performance are communicated more clearly. Motivation, commitment, and intentions to stay in the org are enhanced.
Disadvantages of poor performance management systems İncreased turnover. Use of misleading information. Lowered self-esteem. Wasted time and money. Damaged relationships. Decreased motivation to perform. Employee burnout and job dissatisfaction. İncreased risk of litigations. Varying and unfair standards and ratings. Emerging biases. Unclear ratings systems.
Aims and roles of performance management systems Strategic purpose Administrative purpose Informational purpose Developmental purpose Organizational maintenance purpose Documentational purpose
Characteristics of an ideal performance management systems Strategic congruence Thoroughness Practicality Meaningfulness Specificity Identification of effective and ineffective performance Reliability Validity Acceptability and fairness Inclusiveness Openness Correctability Standardization Ethicality
The Process of Performance Management
Prerequisites Knowledge of the organization’s mission and strategic goals, Knowledge of the job (job analysis and job descriptions).
Process flow Prerequisites Performance planning Performance execution Performance assessment Performance review Performance renewal & recontracting