Performance Management Flashcards
What is performance management?
s a continuous process involving various activities designed to measure, guide, and improve organisational performance. It aligns employee performance with the strategic goals of the organisation. Two key definitions of performance management include:
-A continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization.
-The wide variety of activities, policies, procedures, and interventions designed to help employees improve their performance. These programs begin with performance appraisals but also include feedback, goal setting, training, and reward systems.
What is the Performance Management Process Model?
Murphy and DeNisi (2008) present a model that illustrates the performance management process. This model outlines how performance management is built on organisational goals and strategies and then translated into individual performance objectives and interventions.
Alignment with Organisational Strategy and Goals: The process begins by ensuring that individual goals are directly aligned with the broader organisational strategies. This alignment is essential to ensure that individual efforts contribute effectively to the organisation’s overall performance. For example, in educational settings, organisational objectives might include targets for student exam pass rates, broken down into specific teacher performance goals.
Performance Standards and Measurement: Performance standards are derived from these goals, serving as benchmarks for individual and team performance. Performance measurement, typically through appraisals, assesses employee performance at a given point. This appraisal compares the observed performance against the desired performance standard.
Feedback and Development: Feedback is provided to employees after performance is measured. If a gap exists between observed and desired performance (i.e., where performance does not meet the required standard), the next step involves introducing performance management interventions. These interventions, such as training, coaching, or goal setting, are designed to improve performance.
Cyclical and Continuous Process: Performance management is not a one-off activity. The process is cyclical, with continuous performance assessment, feedback, and goal setting aimed at ongoing improvement. Goals are adjusted based on organisational needs and progress, ensuring a consistent alignment between individual performance and organisational objectives.
What is the Performance Management Process?
Organisational Strategy: Drives the overall goals and objectives for the organisation.
Individual and Team Goals: Derived from the broader strategy and set measurable employee objectives.
Performance Measurement: Assess current performance levels through appraisals and comparisons against set standards.
Feedback and Development: Provides insight into performance gaps and introduces interventions for improvement.
Continuous Improvement: Reinforces the idea that performance management is a never-ending process of goal-setting, measuring, and developing.
What is Goal-setting?
Goal-setting is a fundamental aspect of performance management and is a theory extensively supported by research. Developed primarily by Locke and Latham, goal-setting theory emphasizes the use of specific and challenging goals to enhance performance. In organisational contexts, setting goals ensures that individual performance aligns with the organisation’s broader objectives, serving both strategic and operational functions.
What are the key findings of goal-setting research?
Goal-Setting Enhances Performance:
Research shows that setting specific goals leads to significantly higher performance than having no goals or setting vague goals (Locke & Latham, 1980).
More difficult goals tend to result in greater effort and improved performance, but only when individuals possess the necessary skills and abilities to achieve those goals.
Specific and Measurable Goals:
Specific and measurable goals are more effective than general “do-your-best” goals. Locke and Latham (2002) found that individuals perform better when the expected standards are clear.
Goals should focus not just on results but may also incorporate behavioural changes or improvements in specific job-related skills or performance areas.
What are the mechanisms through which goals affect performance?
Direction of Behaviour:
Goals channel behaviour toward activities relevant to achieving the goal and away from distractions.
Energizing of Behaviour:
Setting challenging goals leads individuals to exert greater effort toward reaching those objectives.
Persistence:
More difficult goals tend to increase persistence as individuals prolong their efforts to succeed. However, this persistence cannot be maintained indefinitely without breaks or proper pacing, especially with tight deadlines.
Development of Strategies:
Goals stimulate individuals to develop strategies and skills to meet performance expectations, promoting learning and adaptation in work settings.
What are the factors that influence the relationship between goals and performance?
Goal Commitment: How committed individuals are to achieving their goals plays a critical role in determining goal-setting effectiveness.
Feedback: Providing continuous feedback helps individuals adjust their efforts and strategies toward goal achievement.
Task Complexity: Goal-setting more directly influences simple tasks. Other variables, such as training and problem-solving, play important roles for more complex tasks.
What is the Goal orientation theory?
Goal orientation theory differentiates between two types of goals that individuals might pursue in the workplace:
Learning Goal Orientation (LGO):
-Individuals with a learning goal orientation focus on developing new skills, gaining knowledge, and improving competence over time.
-LGO fosters adaptive learning and continuous improvement, making it particularly effective in roles that require problem-solving and skill development.
Performance Goal Orientation (PGO):
-Those with a performance goal orientation are focused on demonstrating their competence and achieving high-performance outcomes.
-PGO is linked to achieving measurable performance targets but can lead to avoidance of challenges if individuals fear failure.
How do you implement goal-setting in Performance Management?
Balance Between Challenge and Ability: Goals should be sufficiently challenging to motivate employees but not so difficult that they become discouraging. Ensuring employees have the skills and resources to achieve their goals is essential for success.
Clear Communication and Measurement: Goals should be communicated clearly and must be measurable so that progress can be tracked effectively.
Provide Regular Feedback: Ongoing feedback helps employees adjust their strategies, stay motivated, and focus on their goals. Feedback also strengthens goal commitment.
Adjust for Task Complexity: It is important to break goals into smaller, manageable milestones and provide training or learning opportunities for complex tasks.
Incorporate Learning and Performance Goals: Managers should recognize the value of learning goals (LGO) for roles requiring continuous development and performance goals (PGO) with clear, measurable outcomes. A balanced approach can promote both personal growth and organizational success.
