BACC106 - HRM

• Performance management


  A strategic and integrated approach to increasing the effectiveness of organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors
• Performance management isn't an easy field to navigate. It's constantly evolving, hence the need for an effective performance management system
• New performance management trends emerge every year and, unfortunately, all too often, human resource departments get it completely wrong
• This leads to employees left feeling deflated, unmotivated and unengaged. Managers are frustrated at the poor levels of team and individual employee performance
• More and more companies are now waking up to the importance (and resulting benefits) of effective performance management systems
• Performance management


  The continuous process of improving performance by setting individual and team goals which are aligned to the strategic goals of the organization, planning performance to achieve the goals, reviewing and assessing progress, and developing the knowledge, skills, and abilities of people
• Performance management cycle


  • Planning
  • Act
  • Track
  • Review
• Planning phase


  1. Agreeing on SMART objectives

  2. A personal development plan

  3. Actions to be taken in the coming months

  4. A review of the employee's job requirements, updating the role profile where necessary
• Historically, organizations tended to carry out this planning stage once a year. However, with the business environment becoming increasingly agile and fast-moving, many organizations are adapting their processes to set "near-term" objectives every three months
• The organization's goals and values should feed into performance planning to ensure that individual performance aligns with the overall strategy of the organization
• Personal development planning should consider what behaviors, skills or knowledge the individual needs to develop to successfully achieve their objectives and uphold the organization's values
• The "Act" and "Track" stages are the most important, as this is where performance is actually delivered and results achieved
• Individuals need to be encouraged to schedule in regular time to work on achieving their objectives and personal development plans
• Managers need to be checking in with their staff regularly, giving frequent, effective feedback and using coaching skills to help their team members overcome challenges and identify opportunities for learning and performance improvement
• The stages of the performance management cycle do not flow one after the other. Act and Track should be continuous throughout the year. Reviews may take place at any point, and planning may take place several times during the year and be re-visited as the needs of the business change
• Since 2015, leading organizations such as Deloitte, Adobe and General Electric have ditched the traditional once-a-year performance appraisals in favor of regular "check-ins" and frequent (or real-time) feedback
• These regular performance discussions are typically developmental and future-focused, providing team members with an opportunity throughout the year to explore what has gone well and how success can be replicated, any challenges faced and how they may be overcome, and to agree on actions both the individual and manager need to take to develop the individual and further improve their performance
• Basic elements of effective performance management

  • Setting goals
  • Transparent communication and collaboration
  • Employee recognition
  • Employee development
• Having all of the elements of the performance management cycle in place is very important, but this will not necessarily lead to effective performance management for your organization. There are many other factors in play, such as buy-in from leadership, using performance management software, and the skills and willingness of managers
• Types of performance management


  • General appraisal
  • 360-degree appraisal
  • Technological performance appraisal
  • Employee self-assessment
  • Manager performance appraisal
  • Project evaluation review
  • Sales performance appraisal
• Objectives of the performance management system

  • Enables employees to achieve set performance standards
  • Helps identify skills and knowledge required for the job
  • Motivates employees and boosts empowerment
  • Provides a communication channel between team and supervisor
  • Identifies and resolves issues leading to low performance
  • Provides data for important decisions
• Purposes of the performance management system

  • Feedback mechanism
  • Development concern
  • Documentation concern
  • Diagnoses of organizational problems
  • Employment decisions