Performance management

Question 1

What is the definition of performance management? (Armstrong and Taylor, 2020)

Answer 1

Continuous process of improving performance through setting individual and team goals, aligned with the organisational strategy

Question 2

According to CIPD, what are the formal and informal performance management processes? (3)

Answer 2

1. Goal setting and performance measurement
2. Appraisal and feedback
3. Learning and development of the individual and organisation

Question 3

According to CIPD, why do individual goals have to align with organisational strategy?

Answer 3

1. Objectives of individuals support achievement of the organisational goal
2. This is because improvement of an agent = improvement of the team

Question 4

What are the criteria for performance management to be successful? (think of the criteria of the goal itself, the link to the individual and the aftermath)

Answer 4

1. Simple to understand and implement
2. Measurable
3. Clearly aligned with organisational goals
4. Created with employee participation
5. Links to role clarity and efficiency improvement
6. Transparent connection to award
7. Reviewed against success criteria

Question 5

What questions should performance reviewers ask themselves? (think performance, problems, enhancement)

Answer 5

1. What do we mean by performance? How do we distinguish between good and bad performance?
2. How do we deal with under-performers? How do we find out the root cause?
3. How do we motivate people? How do we establish fair and robust process? How do we get managers to buy in?

Question 6

What are the 4 steps in the cyclical performance management? (PAMR)

Answer 6

1. Plan = define role and competencies, create PDP
2. Act = engage in the role and implement PDP
3. Monitor = measure performance, give feedback, deal with under-performance
4. Review = evolve strengths, handle areas for improvement

Question 7

What are the limitations of PAMR? (5)

Answer 7

1. Normative but not necessarily descriptive
2. Efficiency depends on context
3. Might be met with reluctance
4. The link between organisational goals and individual goals might not be easy to identify and implement
5. Linear progression might prove challenging and unrealistic to achieve

Question 8

What are the 7 steps of performance management in practise which allow for the link with values, beliefs and vision? (OAFRTP)

Answer 8

1. Objective
2. Appraisal
3. Feedback
4. Reward
5. Training
6. PDP

Question 9

What are the 5 performance measurement assessment methods?

Answer 9

Narrative, visual matrix, rating, 360 and balanced scorecard

Question 10

What are the elements of the balanced scorecard? Give exampled of two sub-elements

Answer 10

1. Customer perspective = satisfaction, retention, brand strength
2. Financial perspective = profit, expenses, net profit, cash flow, assets
3. Internal perspective = inventory, orders, resource allocation, quality control
4. Learning and growth = employee satisfaction, retention, skills and training

Question 11

What are some pros and cons of 360 degrees feedback?

Answer 11

Pros: holistic perspective, unbiased and objective
Cons: bureaucratically difficult, time and resource consuming, under pressure individuals might not give honest feedback, not accepted by organisations with top-down communication

Question 12

What are the 4 steps in managing underperformance?

Answer 12

Communication of expectations –> ensuring knowledge and capabilities –> ensuring resources are provided –> ensuring motivation

Question 13

What are some problems with old-school performance management? (3)

Answer 13

1. Idea of annual performance review and forced review
2. Issued with rating systems
3. Challenged with objective evaluations