Performance Management & Reward
Unit 1 – Performance Management
1. DEFINING PERFORMANCE MANAGEMENT
Performance management is a process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved.
It is also a strategy which relates to every activity of the organisation set in the context of its human resource policies, culture, style and communications systems. The nature of the strategy depends on the organisational context and can vary from organisation to organisation (Armstrong and Baron, 2004).
In other words performance management should be:
* Strategic – it is about broad issues and long-term goals. * Integrated – it should link various aspects of the business, people management, individuals & teams.
Performance management should incorporate:
* Performance improvement – throughout the organisation, in respect of individual, team & organisational effectiveness. * Development – unless there is continuous development of individuals and teams, performance will not improve. * Managing behaviour – ensuring that individuals are encouraged to behave in a way that allows and fosters better working relationships.
At its best, performance management is a tool to ensure that managers manage effectively - as part of which they ensure that the people or teams they manage: * know and understand what is expected of them
* have the skills and ability to deliver on these expectations * are supported by the organisation in developing the capacity to meet these expectations * are given feedback on their performance
* have the opportunity to discuss and contribute to individual and team aims and objectives.
Therefore, performance management is about:
* Ensuring that...
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