AOS 2A: Performance Management Strategies

Question 1

What is performance management?

Answer 1

Performance management is the process used to evaluate and improve individual and business performance.

Individual objectives should be aligned with business objectives and performance is then continually evaluated against these objectives

Performance related strategies (SAME)
- Self-evaluation
- Appraisals
- Management by objectives
- Employee observation

Question 2

What is self evaluation?

Answer 2

Self-evaluation is where an employee assesses their own performance related to predetermined objectives

Self-evaluation can:
- Create an open dialogue with the manager where the performance is discussed (chance to align business and employee objectives)
- Can highlight needs for training the employee feels would be helpful (employee objective)
- Ongoing documentation is important

Question 3

What is performance appraisals?

Answer 3

Performance appraisals measure an employees performance, provides feedback and develops new objectives for the employee.

Appraisals can:
- Provide feedback on performance
- Set new goals for employees
- Determine promotions/demotions or termination
- Determine training needs for the employee

Question 4

What is management by objectives?

Answer 4

Management by objectives is a program where the manager and the employee collaboratively set clear objectives

Management by objectives can:
- The objectives are set for the employee and are in line with the business objectives (helps to ensure business objectives are met)
- The employee is then evaluated against the set objectives and provide feedback on their performance (helps evaluates performance of employees on the business objectives)

Question 5

What is employee observation?

Answer 5

Employee observation is where an employee’s performance is evaluated by watching them in action.

Employee observation can:
- Be performed regularly
- 360 feedback is a common type of observation
- Uses feedback from different stakeholders that have direct contact with the employee
- Feedback is then used to improve employee and business objectives

Question 6

What is the criteria to have successful performance management?

Answer 6

• It is important that all performance management strategies are conducted fairly
• Employees should be clear about their objectives (business and employees)
• Evaluations should be conducted regularly
• Feedback should be based on performance

Question 7

What are disadvantages of performance management?

Answer 7

• Performance management can be time consuming
• Can lead to negative relationship if not completed properly (biased or lead to discouragement)