Supporting Good Practice in Performance and Reward Management ASSIGNMENT Activity1
1. Two Purposes of Performance Management and its relationships to business objectives. Performance management is a repetitive process, established by organisations to help them in accomplishing their objectives (goals, as listed in the organisation’s vision) by maximizing the performance of an individual, team or whole organisation and ensure that the objectives are achieved. 1 The Performance Management Process is a key component of organisation’s overall approach to the management of its people. As part of the performance management system, Performance Management Process aims to achieve the following: To enable an individual employee to know exactly what is expected both in terms of outputs (the delivery of agreed objectives) and the relevant, appropriate behavioural style (role-related competency models), which will underpin the delivery of the agreed objectives. • To enable individual and team effort to be focused on the delivery of the departmental business plan. • To enable an individual to identify and meet personal development needs which will facilitate the delivery of agreed objectives. • To enable individual employees to feel motivated and valued for their contribution to the on-going success of organisation. • To enable individuals to identify and achieve realistic career goals over time. • To enable the organisation to reward individuals fairly based on an objective assessment of their contribution. • To enable the organisation to audit the capability of its staff. • To enable the organisation to plan for its own staff succession. • An honest and constructive working relationship between a manager and member of staff.2 The purpose of performance management is to ensure accomplishment of business objectives and to increase the strength of the employees. 1
Daniels, Aubrey (4th edition, July 2004). Performance Management: Changing Behavior that Drives Organizational Effectiveness.
Chartered Institute for Personnel and Development 2009 - Discussion Paper on Performance Management, Issued on 2009; Reference: 4741
3PRM 12 February 2012 Accomplishment of business objectives is an essential survival goal for an organisation. In order to accomplish the business objectives these has to be established by the upper management and than communicated to its own employees. After the objectives have been communicated to the employees it has to be measured, appraised, action planned and monitored. However, the performance management process incorporates the entire business objectives evolution since its inception until its end. In order to increase the strength of the employees you have to measure it. The performance management process sets specific goals to be accomplished in certain time. The strength of the employees is increased by motivation and reward. To motivate and retain high performance by providing career development programs including motivational and reward strategies, challenging work assignments and other on-the –job learning initiatives that will lad to career development and ongoing job satisfaction. The performance management process is usually designed to help employees understand what they need to learn and how they need to learn it. Employees are expected to be in a constant growth and learning mode, demonstrating organization and/or role-specific competencies; the bundles of skills, behaviours and knowledge that are critical to the organisation’s ability to execute its business strategy. Coaching and mentoring programs are used on a formal basis to provide employees with ongoing support as they develop and apply new competencies. 2. What are the 4 components of performance management system? An effective performance management system should include the following components: • • • • Setting up objectives: a clear understanding of job expectations Discuss results; determine...