Managing Performance Flashcards
What is the definition of Performance Management?
Focused on improving results achieved by organisations through effective management of performance of individuals that work within the organisation.
Internal control systems consist of two key elements:
1.) Control environment is embodiment of senior management’s approach to business, style and organisational policies.
2.) Control procedures are mechanisms used by organisations to ensure control is maintained. Includes segregation of duties, authorisation limits etc.
Name 5 key features of performance management?
- Agreed framework of goals, standards, competence requirements.
- Performance management is a process
- Shared understanding
- Approach to managing and developing people
- Achievement
Name the 5 steps of performance management:
1.) Identify requirements and competences required to carry it out
2.) Draw up performance agreement, defining expectations of individual or team, covering standards of performance, performance indicators and skills and competences people need.
3.) Draw up a performance and development plan with the individual.
4.) Manage performance continually throughout year.
5.) Performance review - at defined period each year, success against plan is reviewed but whole point is to assess what is going to happen in future.
What are Child’s 4 control strategies commonly found in organisations?
1.) Output control
2.) Bureaucratic control
3.) Clan control
4.) Personal centralised control
What are the risks of adopting an overly formal type of control?
- Motivational issues to arise, as workers are restricted from using their initiative, which may increase staff turnover.
- Quality issues may occur as workers are less likely to ‘buy-in’ to the work they perform if they have limited input over how they conduct their work.
- Organisations do not understand their workers. People in workplace do not necessary act as expected. Offering higher levels of pay does not guarantee that people will work harder.
Name principles of measuring performance(what they should be) :
1.) Job-related- should be related to actual job and key tasks outlined.
2.) Controllable - people should not be assessed on things they cannot control
3.) Objective and observable - this is contentious. Certain aspects of performance can be measured and targets set.
4.) Data must be available - no use setting performance targets if data needed to measure them cannot actually be collected.
What is MBO (Management by objectives)?
Is a process whereby the individual’s objectives are integrated with corporate plan, as part of on ongoing programme of goal setting and performance review involving all levels of management. MBO focuses on output produced by workers.
What are the 7 stages in developing MBO programme?
1.) Clarify organisational goals and objectives
2.) Collaboratively defining each individual’s major areas of responsibility and their purpose within corporate plan.
3.) Jointly defining and agreeing key tasks that are directly related to achievement of objectives and in which any performances shortfall would negatively impact organisation’s effectiveness.
4.) Agreeing key results that must be achieved for key tasks to be successfully performed, objectives met, setting out methods of monitoring and measuring performance in areas.
5.) Agreeing individual performance improvement plans for a defined planning period. Specific improvement objectives for each task and formulating action plan to achieve those objectives. Measures taken by jobholder, resources provide to superiors and dates for review.
6.) Monitoring, self-evaluation and review of performance at agreed intervals, revision of objectives, targets and action plans as required.
7.) Periodic review of performance against individual improvement objectives and key results.
What 2 aspects does empowerment include?
1.) Allowing workers to have freedom to decide how to do necessary work, usings skills they possess and acquiring new skills as necessary to be an effective team member.
2.) Making workers responsible for achieving production targets and for quality control.
Empowerment goes hand in hand with which three things?
1.) Delayering
2.) Flexibility
3.) New Technology
Promoting empowerment may involve the following:
- Managers leading by example
- Communicating with employees on a regular basis about performance matters and providing feedback
- Supporting employee efforts to develop their skills and careers
How can organisations overcome problems of workers not engaging (needed for empowerment)?
1.) Establish talent management programmes - Performance targets for ‘key’ individuals can be set which integrate future career development options into them.
2.) Set realistic targets and allow genuine involvement
3.) Change organisation’s culture - more open and transparent culture, reinforces aim of greater employee-manager collaboration.
4.) Adopt appropriate management and leadership style - employee engagement may be enhanced by embracing disruptive leadership where teams do not have to work with appointed leader.
What is the definition of performance appraisal?
Systematic review and assessment of an employee’s performance, potential and development for improvement needs.
Performance appraisal can be remembered using the TARA acronym:
T - Targets - Organisations must set targets which employees support and ‘buy into’.
A - Actual results must be monitored - Managers should monitor actual performance of employees during review period and provide subordinate with relevant feedback.
R - Review - Once review period has ended manager and employee should have a formal appraisal to evaluate employee’s performance against pre-determined targets.
A- Action plan - new targets should be agreed between manager and employee for next review period.
