PERFORMANCE

MANAGEMENT
Module 3
Performance Management
Process
LEARNING OBJECTIVES

At the end of this module, the learner is expected to:

• Identify the process of performance management.

• Explain the important prerequisites needed before a performance
management system is implemented, including job descriptions,
knowledge of the organization’s mission and strategic goals and
knowledge of the job in question.
• Conduct a job analysis to determine the job duties, knowledge, skills
and abilities (KSAs), and working conditions of a particular job.
PERFORMANCE MANAGEMENT
PROCESS
Prerequisites

Figure 2-1 Performance

Performance Planning
Management Process

Performance Execution

Performance Assessment

Performance Review

Performance Renewal &

Recontracting
PREREQUISITES
 There are two important prerequisites that are required before a performance
management system is implemented:
1. Knowledge of the organization’s mission and strategic goals
- It is a result of strategic planning (the strategic planning process may take place after
the mission and vision statements are created; thus, there is a constant interplay
between mission and vision and strategic planning).
2. Knowledge of the job in question.
- This is done through job analysis. Job analysis is a process of determining the key
components of a particular job, including activities, tasks, products, services, and
processes.
Knowledge. It includes having the information needed to perform the work, but not
necessarily having done it.
Skills. Refer to required attributes that are usually acquired by having done the work in
the past.
Abilities. Refers to having the physical, emotional, intellectual, and psychological
aptitude to perform the work
PERFORMANCE PLANNING
 Performance planning discussion includes a consideration of
both results and behaviors as well as a development plan.
1. Result
- Refers to what needs to be done or the outcomes an employee
must produce. A consideration of results needs to include the key
accountabilities, or broad areas of a job for which the employee is
responsible for producing results.
2. Behaviors
- These are responses to things that are happening. It serves as a
function to help meet a need and access an item or activity.
Examples of competencies are customer service, written or oral
communication, creative thinking, and dependability
3. Development Plan
- It should include identifying areas that need improvement and
setting goals to be achieved in each area. Development plans
usually include both results and behaviors.
Performance Execution
 Once the review cycle begins, the employee strives to produce the results and
display the behaviors agreed upon earlier as well as to work on developmental
needs. The employee has primary responsibility and ownership of this process.
 At the performance execution stage, the following factors must be present:
1. Commitment to goal achievement
- The employee must be committed to the goals that were set. One way to enhance
commitment is to allow the employee to be an active participant in the process of
setting the goals.
2. Ongoing performance feedback and coaching
- The employee should not wait until the review cycle is over to solicit performance
feedback. Also, the employee should not wait until a serious problem develops to
ask for coaching.
Performance Execution
3. Communication with supervisor
- Supervisors are busy with multiple obligations. The burden is on the employee to
communicate openly and regularly with the supervisor.
4. Collecting and sharing performance data
- The employee should provide the supervisor with regular updates on progress
toward goal achievement, in terms of both behaviors and results.
5. Preparing for performance reviews
- The employee should not wait until the end of the review cycle approaches to
prepare for the review. On the contrary, the employee should engage in an ongoing
and realistic self-appraisal so that immediate corrective action can be taken if
necessary. The usefulness of the self-appraisal process can be enhanced by
gathering informal performance information from peers and customers (both internal
and external).
Performance Execution

 The following are the primary responsibilities of supervisors over the

following issues:
1. Observation and documentation
2. Updates
3. Feedback
4. Resources
5. Reinforcement
 PERFORMANCE ASSESSMENT

 In the assessment phase, both the employee

and the manager are responsible for
evaluating the extent to which the desired
behaviors have been displayed, and whether
the desired results have been achieved.
 It is important that both the employee and the
manager take ownership of the assessment
process. The manager fills out her appraisal
form, and the employee should also fill out
his form. The fact that both parties are
involved in the assessment provides good
information to be used in the review phase.
PERFORMANCE REVIEW
 It involves the meeting between the employee
and the manager to review their assessments.
This meeting is usually called the appraisal
meeting or discussion.
 The appraisal meeting is important because it
provides a formal setting in which the employee
receives feedback on his or her performance.
 Six Recommended Steps for Conducting
Productive Performance Reviews:
1. Identify what the employee has done well and
poorly by citing specific positive and negative
behaviors.
2. Solicit feedback from your employee about these
behaviors. Listen for reactions and explanations.
PERFORMANCE REVIEW
3. Discuss the implications of changing, or not changing, the behaviors. Positive
feedback is best, but an employee must be made aware of what will happen if any
poor performance continues.
4. Explain to the employee how skills used in past achievements can help him
overcome any current performance problems.
5. Agree on an action plan. Encourage the employee to invest in improving his
performance by asking questions such as “What ideas do you have for ______?”
and “What suggestions do you have for ______?”
6. Set up a meeting to follow up and agree on the behaviors, actions, and attitudes
to be evaluated.
PERFORMANCE RENEWAL
AND RECONTRACTING
 This is the final stage in performance process. It uses the insights and
information gained from the other phases.
 For example, some of the goals may have been set unrealistically high
given an unexpected economic downturn. This would lead to setting
less ambitious goals for the upcoming review period.
Resources

 Aguinis, H. (2009). Performance management. Pearson Prentice Hall.