2H - Performance Management

Question 1

Management by objectives

Answer 1

Involves both managers and employees collaboratively setting individual employee goals that contribute to the achievement of broader business objectives.

Steps:
- define business objective
- manager and employees collaboratively set individual goals that align with the broader business objectives
- evaluate employee performance in terms of the achievement of each goal
- Provide feedback to employees to help them improve their performance and determine whether further training is required.

Add:
- Employees understand what they need to do and how they’re assessed
- Employee objectives aligned with business objectives
- Makes employees aware of overall objectives of business and their role in achieving those
- The periodic evaluation and feedback ensure employees know where they are and keep them on track

Diff:
- It can be time-consuming
- Some managers may not be skilled in helping set employee goals
- It may not be effective if corporate culture doesn’t support collaboration

Question 2

Performance appraisals

Answer 2

Involves a manager assessing the performance of an employee against a range of criteria, providing feedback, and establishing plans for future improvements.
Managers may use to identify any problems with employee performance and make decisions about training, promotions and dismissals

Add:
- Employees receive feedback on areas they’re doing well
- Employees receive feedback on areas for growth, helping improve employ and bus performance
- Provides information to managers

Diff:
- Can be time-consuming and resource heavy
- The feedback can sometimes be rather subjective rather than based on clear data
- Appraisals can be stressful and overwhelming for all

Question 3

Self-evaluation

Answer 3

Invloves an employee assessing their individual performance against a set of criteria.

Add:
- Allows employees to self-reflect their own work, encouraging self-developemnt and improved performance
- Provides managers an insight into how the employee views their performance and the support/training they require
- Allows the managers to understand strengths and weaknesses of the employee

Diff:
- Self-evaluation may not be a true reflection of an employee’s performance
It can be challenging for employees to remember all their achievements during the year if they aren’t written down

Question 4

Employee observation

Answer 4

Involves a range of employees from different levels of authority assessing another employee’s performance against a set of criteria

Add:
- If done well, there is evidence of employee performance, making the review fairer
- The potential to gather information from a range of sources that have viewed the employee helps get a full picture of how the employee has performed
- There may be more suggestions on how to improve performance as feedback may be coming from various stakeholders

Diff:
- If the observation is a one-off, it may not provide a complete picture of how the employee has performed over the review period
- If the employees know they’re being observed, they may be nervous and not perform their usual way