1. THE CONCEPTUAL FRAMEWORK

2. DIFFERENT VIEWS ON WHAT PERFORMANCE IS
PERFORMANCE AS OUTCOMES
Results obtained
Something that a person leaves behind as part of a purpose
Outcome of work done
Work done is linked to goals, customer satisfaction and economic contributions
PERFORMANCE AS BEHAVIOUR
It is a behviour or a action relevant to attain goals
Behaviour of what employees do (not what produce)
Behaviour of employees that can be measured
Job-specific tasks proficiency
Non-job specific behvaiours/proficiency (OCB)
Oral and written communication proficiency
Demonstration of effort
Maintenance of personal discipline
Supervision/leadership/management/administration
PERFORMANCE AS BOTH
Performance means both behaviours and results (outcomes)
Mental and physical effort applied to tasks to get results
When people perform well, it also covers results they deliver
Carrying out work (behaviour) and accomplish outputs/outcomes

3. FACTORS AFFECTING PERFORMANCE
THE LEARNER
Needs the right level of competence, motivation, support, incentives to perform effectively
THE LEARNER’S WORK GROUP
Members can exercise strong positive or negative influence on the attitudes, behaviour and performance of learner
THE LEARNER’S MANAGER
Must provide continuous support and act as a role model, coach and stimulator
THE ORGANISATION
May produce barriers to effective performance if there is no vision, ineffective structure, culture or work systems
Unsupportive employee relations policies and systems
Inappropriate leadership and management style

4. FACTORS AFFECTING INDIVIDUAL PERFORMANCE
DECLARATIVE KNOWLEDGE
Facts concerning task requirements and goals
PROCEDURAL KNOWLEDGE
Combination of knowing what to do and how to do it
MOTIVATION
Level and persistence of effort

5. SYSTEMS FACTORS AFFECTING INDIVIDUAL PERFORMANCE
Organisations should be treated as open systems which transform inputs into outputs
Systems theory is the basis of input-process-output-outcome model of managing performance, which assess the entire contribution that an individual makes within the system in carrying out allocated job
Inputs: skills and knowledge that an individual brings to a job
Process: how people actually performs their jobs
Outputs: results of performance expressed in quantified terms such as sales volume
Outcomes: a visible effect which is the result of effort, but not measured in quantified terms
This model is important becuase it:
Provides a basis for measuring performance
All the factors that influence performance are taken into account when assessing it

6. Perspectives & the “Cause-and-Effect” Principle
Outcomes
Inputs
Transformation
Outputs
Organizations run on 7% of the data that they collect (according to a recent IBM study). The idea is not to invent new measures but rather how to use the data that we are already collecting.
Edward de Bono “The same data in a new context creates new information.”
Think of any SO as an “system” with inputs, transformation and outputs.
ALWAYS use this tool to facilitate the discussion on indicators – it is the only way to get great indicators that everyone buys into.
REMEMBER – the monthly trend of the indicator is far more important then the absolute value at any point-in-time.
Organisational Learning Perspective
Internal Process Perspective
Financial Perspective
Customer Perspective
Public Sector Value Creation Process

7. CONTEXTUAL FACTORS Systems operate within the context of organisation
Managers needs to understand patterns of behaviour observed and predict in which direction behaviour will move
Use his knowledge to control behaviour
Manager be able to diagnose the situation he is working in
People should know the situation they work in
The context includes organisational culture, employee relations climate, people involved and the internal environment, organisational structure, and technology and working practices, size, and external environment.

8. CONTEXTUAL FACTORS Organisational culture:
shared beliefs, norms and values – can shape the way people act and interact
Influence the way things gets done, how managers behave in managing people
Employee relations climate:
Perception of relationship between managers and employees
Trust one another, fair treatment, open and honest management
Harmonious relationship, employees commitment
People: Composition of workforce (knowledge levels, abilities etc vary)
Organisation structure: structure supporting the objectives setting
functional, process, flat structures
Technology and working practices:
High technology requires innovation
Extent to how computer/machine is controlled
Size: PM of small firms cannot be scaled down to large companies
External environment: turbulence in competitive, business, economic and political environment must be response or adapted to quickly

9. THEORIES UNDERPINING PERFORMANCE MANAGEMENT
GOAL THEORY
Four mechanisms that connect goals to performance outcomes:
Direct attention to priorities & stimulation of effort
Knowledge and skills to increase chances of success
People use their skills more, if goals are challenging
EXPECTANCY THEORY
People expect rewards will follow effort & it will motivate them
PM must influence behaviour to achieve better results
Relationship between effort, achievement and reward is motivating people and provide them with sense of direction
People want needs satisfaction, develop abilities, foster self-belief
Positive feedback provide rewards in the form of recognition
People use energy to actions to maximise needs satisfaction
Evaluations and outcomes must be structured for employees to focus their actions in the ways desired by organisation
CONTROL THEORY
Focus on feedback as a means to shape behaviour
Discrepancy between what people are doing and what is expected
Hence, take a corrective action to overcome discrepancy
Feedback is a crucial part of PM process

10. THEORIES UNDERPINING PERFORMANCE MANAGEMENT
REINFORCEMENT THEORY
Success in achieving goals and rewards are positive incentives and reinforce successful behaviour
Positive feedback provides for positive reinforcement
Constructive feedback reinforce behaviour which seek alternative means to achieve goals
SOCIAL LEARNING THEORY
It combines aspects of reinforcement and expectancy theory
Emphasise importance of internal psychological factors, expectations about values/goals and ability of individuals to reach them
SELF-EFFICACY THEORY
Self motivation will be liked to self-belief of individuals that they will be able to accomplish certain tasks or learn certain things
Give opportunity to employees to discuss with their managers how they can do more
Managers must encourage self-belief when discussing performance and development

11. PERFORMANCE MANAGEMENT VALUES Belief that:
Management has responsibility to create conditions in which high performance is achievable
Everyone is concerned with improvement of performance (joint responsibility)
People should be valued for what they are and what they achieve
Individuals be given opportunity to express their views about objectives the are expected to achieve
Individual needs and organisation needs be recognised and respected
Individuals to understand and agree to measures used to monitor their performance and be able to track their own performance against measures
Individuals have right to obtain feedback on their performance and to comment on feedback
Know why decisions affecting them (emerging from performance reviews) have been made and should have the right to appeal
Focus should be developing performance rather than merely managing it
Priority be given to developmental aspects of performance management