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Tutorial:
Performance Management (cont. 3)
The PERFORMANCE REVIEW INTERVIEW consists of two stages:
(1) REVIEWING
PERFORMANCE: A "backwards" look at how well previously
set objectives were achieved, and the factors that affected their
achievement.
(2) PLANNING PERFORMANCE: A "forwards" look at new objectives
to be achieved during the next performance cycle.
In the following
sections we will investigate how each of the four stages of Performance
Management is handled, starting with the Planning of Performance.
It
is important to note that Performance Management is not an additional
responsibility that managers now get. Rather, it should be seen
as an effective WAY of managing. In fact, managing employee performance
is the essence of a manager's job, along with business planning,
controlling the budget, and managing the production or client service
process
The MOST
IMPORTANT OBJECTIVES of Performance Management are:
- To serve
as a vehicle for implementing organisational goals and strategies
- To facilitate
continuous performance improvement, organisation development and
culture change
- To achieve
quality and efficiency, i.e. to meet the customer's needs as precisely,
quickly and cheaply as possible
- To ensure
clarity regarding work expectations and standards, reducing resource
wastage and conflict
To continually enhance employee competence through the identification
of output-related training and development needs and strategies
- To facilitate
performance-based remuneration and reward
- To serve
as a legal basis in addressing persistent poor performance
BENEFITS
OF PERFORMANCE MANAGEMENT
A. Benefits
to the Organisation
- Facilitates
the achievement of corporate goals and strategies
- Facilitates
the management of change
- Leads to
continuous improvement of performance, systems, processes, structures,
and management practices
- Leads to
improved productivity and work standards
- Provides
a basis for enhanced teamwork
- Limits resource
wastage
- Ensures optimal
utilisation of personnel
- Helps build
a climate of openness and trust
- Creates a
participative work culture
- Establishes
a performance culture - of quality, efficiency and achievement
- Provides
useful information for HR decisions (T&D, Manpower & Succession
Planning, Career Management)
- Leads to
a competent work-force
- Serves as
a legal basis to address persistent poor performance
- Provides
the basis for fair remuneration based on actual performance
B. Benefits
to Employees
- Ensures clarity
regarding work expectations and standards
- Provides
a clear basis/yardstick for discussing performance in a fair way
- Energises
and motivates; enhances job satisfaction
- Is a tool
for assessing employees' competencies (or lack thereof), leading
to targeted training and development; helping them to realise
their potential
- Facilitates
career development
- Provides
a basis for improved relationships with line managers and co-workers
- Facilitates
regular feedback on performance
- Provides
a forum to share new ideas and to air views
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