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HRM3706 – PERFORMANCE MANAGEMENT
MODULE SUMMARY INFORMATION
Notes Compiled by Prof Tackura Mudyano
078-717-3916/ 061-711-7169
proftmudyano.hrm@gmail.com
- Steps when answering questions about a case study
1. Identify the problem
2. Identify the causes of the problem
3. Develop alternative solutions
4. Select the best alternative
5. Develop a strategy (action plan)
- Modules outcomes
1. Demonstrate the ability to explore a shift from performance appraisals to
performance management
2. Demonstrate a comprehensive knowledge base of an insight into the dynamics and
challenges related to designing and implementing an integrated performance
management system in organisations
3. Demonstrate the ability to explore performance management in the organisational
context
4. Design a performance management system that incorporates individuals and teams
5. Critically synthesise the strategic nature of performance management
-1-
,TOPIC 1 (ONE)
- Learning Outcomes
After completing this topic, you should be able to
1. either justify or criticise a shift from performance appraisal to performance
management in managing employee performance
2. recognise the difference between an individual and team performance
management in the organisational context
3. interpret a link between performance management and the reward system
4. design an employee developmental plan in accordance with a specific job
position
Study Unit 1 (ONE) – Performance Management in Context
- Learning Outcomes
After completing this Study Unit, you should be able to
1. explain the concept of performance management
2. distinguish between performance management and performance appraisal
3. illustrate by means of a diagram the performance management process
4. outline the aim and role of performance management in the organisation
5. explain the contributions a performance management system can make in the
organisation
Performance Management can be defined as:
“A continuous process of identifying, measuring and developing the performance of individuals and
teams, and aligning performance with the strategic goals of the organisation”
This definition is thus composed of 2 main components:
Continuous Process: Performance Management is an ongoing. It involves a never
ending process of setting goals and objectives, observing performance and receiving
ongoing coaching and feedback. Once the end of the process is reached it starts all
over again.
Alignment with Strategic goals: Performance management requires managers to
ensure that employees’ activities and output are congruent with the organisation’s
goals and consequently help the organisation gain competitive advantage.
Performance therefore creates a direct link between employee performance and
organisational goals and makes the employee’s contribution to the organisation
explicit. Performance management systems that do not make explicit the employee’s
contribution to the organisational goals are not true performance management
systems.
Performance Management is characterized with the following qualities:
Performance management is an ongoing process.
Organisational goals should be linked with individuals’ goals.
Performance should be monitored and reviewed, and feedback provided.
Employee development is crucial to ensure improvement in employee performance.
The Performance Management Process includes the following steps (Aguinis 2009
adaptation): (refer to LO 3 – page 5 for full diagram)
Performance management is a forward-looking process, taking frequent measures as work occurs and
responding to small steps forward, while performance appraisal is a backward-looking process of
performance, measuring what happened in the past.
According to Aguinis (2009:2), performance appraisal refers to a system that involves
employee evaluation once a year without any effort to provide feedback and coaching so
that performance can be improved. It is a systematic description of an employee’s strengths
and weaknesses. Performance management is more than just evaluating employee
performance. Performance management is an ongoing process rather than a one-off event
taking place, for instance, annually or biannually. It is a comprehensive, continuous and
flexible approach to the management of organisations, teams and individuals which involve
the maximum amount of dialogue between those concerned.
Comparisons between Performance Management and Performance Appraisal system:
-3-
, -4-
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