Summative Assessment: CIPD Reference Number F060L
Performance Management is a process aimed at improving performance in an effective and efficient manner. It involves following principles that ensure individuals 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.
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 and teams.
Performance management should incorporate:
Performance improvement - throughout the organisation, in respect of individual, team and 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.
Armstrong and Baron define performance management as ‘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.’
The components are important because they tie together organisational and individual objectives, achievements and expectations. An effective system should include: -
Planning involves both parties agreeing on set objectives to be achieved over a specific period. Clearly defined targets identify needs, wants and create opportunities for advancing within the