Definition of

Performance Management
(PM)
 Definition of PM

1. Continuous Process of
 Identifying
 Measuring
 Developing

The performance of individuals and

teams
 Definition of PM (continued)
and
2. Aligning performance

with

Strategic Goals of the organization

Performance Management
is NOT
performance appraisal
 PM is NOT performance appraisal

• Performance Management
– Strategic business considerations
– Driven by line manager
– Ongoing feedback
• So employee can improve performance
 PM is NOT performance appraisal

• Performance Appraisal
– Driven by HR
– Assesses employee
• Strengths &
• Weaknesses
– Once a year
– Lacks ongoing feedback
 Contributions of
Performance Management
 Contributions of Performance Management
For Employees
Clarify definitions of
job
success criteria
Increase motivation to perform
Increase self-esteem
Enhance self-insight and development
 Contributions of Performance Management
For Managers
Communicate supervisors’ views of
performance more clearly
Managers gain insight about subordinates
Better and more timely differentiation
between good and poor performers
Employees become more competent
 Contributions of Performance Management
For Organization/HR Function
Clarify organizational goals
Facilitate organizational change
Fairer, more appropriate administrative
actions
Better protection from lawsuits
Disadvantages/Dangers of
Poorly-implemented
PM Systems
Disadvantages/Dangers of Poorly-implemented
PM Systems

For Employees
• Lowered self-esteem
• Employee burnout and job dissatisfaction
• Damaged relationships
• Use of false or misleading information
 Disadvantages/Dangers of Poorly-implemented
PM Systems

For Managers
• Increased turnover
• Decreased motivation to perform
• Unjustified demands on managers’
resources
• Varying and unfair standards and ratings
 Disadvantages/Dangers of Poorly-implemented
PM Systems

For Organization
• Wasted time and money
• Unclear ratings system
• Emerging biases
• Increased risk of litigation