Performance Management

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3PRM 12 February 2012

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.
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Daniels, Aubrey (4th edition, July 2004). Performance Management: Changing Behavior that



Bibliography: 1. DANIELS, A. (4th edition, July 2004). Performance Management: Changing Behavior that Drives Organizational Effectiveness. 2. Chartered Institute for Personnel and Development 2009 - Discussion Paper on Performance Management, Issued on 2009; Reference: 4741 3. MARTIN, M., WHITING, F. and JAKSON, T. (5th edition). Human Resource Practice: page 168, Fig 6.3 4. RICHARD, L.; DAFT, PATRICIA G. LANE (2007). The leadership experience, 234-235 5. GARY, P. LATHAM (2007), Work motivation: history, theory, research and practice, page 60-70 9

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