IS PERFORMANCE MANAGEMENT
Performance management refers to the
procedures and systems designed to improve
employee outputs and performance, often through
the use of economic incentive system.
Apart from economic incentives, the other means
used to improve employee performance are;
Streamlined organizational structure
New arrangement of working schedules
High involvement of employees
Better motivation of employees
refers to the HR planning, acquisition, and
development aimed at providing the talent
necessary for organizational success.
The staffing process consist of the following:
A technical procedures used to definite the
duties, responsibilities, and accountabilities of a
The result of job analysis are very useful in:
Preparing job descriptions
Evaluating and classifying jobs
Training and career development
Other HR aspects
May be defined as a human resource
management practice designed to locate and
attract job applicants for particular positions.
Recruitments involves the following
Advertisement of a position vacancy
Preliminary contact with potential job
Preliminary screening to obtain a pool of
are of two types
Internal recruitment. It is a process for attracting job
applicants from those currently working for the firm.
Advantages or internal recruitment:
It is good public relations.
It builds morale.
It encourages good individuals who are ambitious.
It improves the probability of good selection, since
information on the individual’s performance is readily
It is less costly than external recruitment.
Those chosen internally already know the
When carefully planned, promoting from within can
also act as training device for developing middle and
Disadvantages of internal recruitment:
It can be dysfunctional to the organization to utilize
inferior internal sources only because they are there,
when excellent candidates are available on the
It may generate infighting among the rival
candidates for promotion.
It may decrease the moral levels of those not selected.
It may promote “inbreeding”.
Methods of internal recruitment:
Computerized career progression system
Career development system
External recruitment. it is a process of
attracting job applicants from outside the
organization. It is undertaken when no suitable
candidates are available from within the
organization. This recruitment source tends to
bring in “new blood” and fresh ideas to the
Methods of external recruitment:
Private employment agencies and executives
This involves assessing and choosing among job
The selection process involves the following steps:
1. Completing the application form;
2. Conducting an interview;
3. Completing any necessary tests;
4. Background investigation;
5. Physical and medical examination; and
6. A decision to hire or not.
Final step in the staffing process. It involves
orienting new employees to the organization and
its work units, especially the work units where
the newly hired employee will be working. The
purpose of socialization is to enable new
employees to quickly become productive
members of the organization.
In socialization, the new employees are provided
with information about the following:
Key organization factors
Department and job-related issues
TRAINING AND CAREER PLANNING
Process of changing employee behavior, attitudes,
or opinions through some type of guided
There are many ways to conduct training
programs and they may be classified as follows:
On-the-job Training. Training method is
conducted which employees perform job-related
tasks. It is the most direct approach training.
The common forms of on-the-job training are:
Off-the-job Training. Type of training deals with
work skill in settings away from ordinary
The various off-the-job training techniques are:
Videos and films
Career Planning and
Career . The pattern of work-related
experiences that span the course of a person’s
Career Stages. Refers to the distinct stages that
individuals go through in their careers, typically
including establishment, advancement,
maintenance, and retirement.
Establishment stage. One of apprenticeship
where the young employee enters an
organization who may be technically able but
often without an understanding of the
organization’s demands and expectations.
Advancement stage. The employee seeks
growth and increased responsibility through the
continued development and utilization of his
3. Maintenance stage. The employee may
experience continued growth of performance and
accomplishment, or he may encounter career
4. Retirement stage. The individual learns to accept
a reduced role and less responsibility. Depending
on the individual this can be either a very positive
or a highly upsetting stage of one’s career.
Is a key aspect of performance management.
The process of evaluating the performance of
employees, sharing that information with them,
and searching for ways to improve their
FUNCTIONS OF PERFORMANCE
To give employees feedback on performance;
To identify the employee’s development needs;
To make promotion and reward decisions;
To develop information about the organization’s
selection and placement decisions.
CRITERIA FOR PERFORMANCE
The three most popular sets of criteria are:
Individual task outcomes;
Individual Task Outcomes. One way of
appraising performance is evaluating the
employee’s task outcomes.
Behavior. There are instances when it is
difficult to measure an individual’s task
outcomes. This is so on advisory jobs or support
positions and those who are assigned to work in a
Traits. It is weak because it has little connection
with the actual performance of the job.
The traits commonly used as basis for
performance appraisal include:
Possessing a wealth of experience
The Process of Performance Appraisal
Establishment of performance standards
Mutually set measurable goals
Measure actual performance
Compare actual performance with standards
Discuss the appraisal with the employee
If necessary, initiate corrective action
To determine what actual performance is, it is
necessary to acquire information about it.
Information may be derived from the
Absolute Standards. The subjects of appraisal are
not compared with other persons. This approach
consists of the following methods:
The essay appraisal
A performance appraisal method whereby an appraiser
writes a narrative about the employee.
The critical incident appraisal
A performance appraisal method which requires
effective or ineffective performance for each employee
A performance appraisal method wherein the evaluator
uses a list of behavioral descriptions and checks off
those behaviors that apply to the employee.
The adjective rating scale
Also known as graphic rating scale, a
performance appraisal method that lists a
number of traits and a range of performance
A type of performance appraisal in which the
rater must choose between two or more specific
statements about an employee’s work
Behaviorally anchored rating scales (BARS)
A rating instrument comprised of traits
anchored by job behaviors.
Relative Standards. This category of appraisal
methods compare individuals against other
individuals. The most popular in this category
Group order ranking is a relative standard of
performance characterized as placing
employees into a particular classification such
as top “one-fifth”.
The individual ranking method requires the
evaluator merely to list the employees in order
from highest to lowest.
Paired comparison is an appraisal method
whereby subordinates are placed in all possible
pair and the supervisor must choose which of
the two in each pair is the better performer.
Objectives. Also known as management by
objectives (MBO), is a process of joint goal setting
between a supervisor and a subordinate. MBO
consist of four steps: goal setting, action
planning, self control, and periodic reviews.
In goal setting, the individual objectives are set
based on the organization’s overall objectives.
In action planning, realistic plans are developed to
attain the objectives.
Self control refers to the systematic monitoring and
measuring of performance.
Periodic reviews are the means used to determine
whether there is a need for corrective action.
THE ADVANTAGES OF MBO ARE
It improves job performance by monitoring and
It is practical and inexpensive; and
It fosters better communication between
employees and supervisors.
THE DISADVANTAGES OF MBO ARE
It does not specify the behavior required to
It tends to focus on short-term goals;
The successful achievement of MBO goals may
be partly a function of factors outside the
MBO does not provide a common basis for
comparison of performance standard; and
It often fails to gain acceptance.
ERRORS IN PERFORMANCE
The following are brief descriptions of errors in
Halo Error. This is a rating error that
occurs when a rate assigns rating on the basis of
an overall impression (positive or negative) of
the person being rated.
Leniency Error. This is a rater’s tendency to
give relatively high ratings to virtually
everyone. The opposite of this is strictness error
where the raters tend to give everyone a low
Central Tendency Error. This occurs when
a rater lump everyone together around the
average, or middle, category. The idea is that
there are no very good or very poor performers
on the dimension being rated.
Recency Error. This is a biased rating
that develops by allowing the individual’s most
recent behavior to speak for his or her overall
performance on a particular dimension.
Personal Bias Error. This occurs when a
rater allows specific biases, such as racial, age,
and gender, to enter into performance
A final requirement is
necessary to ensure effective
performance. The requirement
refers to the design and
implementation of reward
TYPES OF ORGANIZATIONAL
Intrinsic or extrinsic
Financial or nonfinancial
Performance-based or membershipbased
Intrinsic rewards are those that the
worker receives from the job itself, such as pride
in one’s work, a feeling of accomplishment, or
being part of a team.
Extrinsic rewards are those that the
workers get from the employer, usually money,
a promotion, or benefit.
Financial rewards are those that
enhance an employee’s financial well-being
directly through wages, bonuses, profit sharing,
and the like.
Nonfinancial rewards are indirect
enhancement of an employee’s financial well-being.
This is done through supportive benefits like pension
plans, paid vacations, paid sick leaves, and purchase
Performance-based rewards are those given
using performance as basis. These rewards take the
form of commissions, piecework pay plans, incentive
systems, group bonuses, or other forms of merit pay.
Membership-based rewards refer to those that
are given to all employees regardless of performance.
This type includes cost-of-living increases; benefits;
and salary increases attributable to labor-market
conditions, seniority or time in rank, credentials such
as a college degree, or future potential such as a new
MBA degree from a prestigious university.