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1. Herman Aguinis, University of Colorado at Denver
Prentice Hall, Inc. © 2006 2–1
Performance Management Process:
Overview

2. Herman Aguinis, University of Colorado at Denver
Prentice Hall, Inc. © 2006 2–2
Performance Management Process
Performance
Review
Performance
Renewal and
Recontracting
Performance
Assessment
Performance
Execution
Performance
Planning
Prerequisites

3. Herman Aguinis, University of Colorado at Denver
Prentice Hall, Inc. © 2006 2–3
Prerequisites
A. Knowledge of the organization’s
mission and strategic goals
B. Knowledge of the job in question

4. Herman Aguinis, University of Colorado at Denver
Prentice Hall, Inc. © 2006 2–4
First prerequisite: Knowledge of mission
and strategic goals
Knowledge of the organization's mission and
strategic goals is a result of strategic planning.
• Strategic planning allows an organization to
clearly define:
– Purpose or reason for organization’s existence
– Where organization is going
– Where it wants to be in future
– The goals it wants to achieve
– Strategies for attaining goals

5. Herman Aguinis, University of Colorado at Denver
Prentice Hall, Inc. © 2006 2–5
Mission and Goals
Cascade effect throughout organization
Organization Unit Employee
(Recall: An important objective of any performance
management system is to enhance each employee’s
contribution to the goals of the organization)

6. Herman Aguinis, University of Colorado at Denver
Prentice Hall, Inc. © 2006 2–6
Second Prerequisite : Knowledge of the job
• Knowledge of the job (understand the job in
question) is done through job analysis
• Job analysis:
– A process of determining the key components of a
particular job, including activities, tasks, products,
services, and process.
– If there is no J.A, then???

7. Herman Aguinis, University of Colorado at Denver
Prentice Hall, Inc. © 2006 2–7
Performance Planning
Performance Planning includes:
Results
Behavior
Development Plan

8. Herman Aguinis, University of Colorado at Denver
Prentice Hall, Inc. © 2006 2–8
Performance Planning:
Results and Behaviors
– Results refer to what needs to be done or the outcomes an
employee must produce.
• Behavior in this context means:
How a job is done
• A consideration of behavior includes discussing
competencies:
Example: a sales manager working in a specific sales
territory.

9. Herman Aguinis, University of Colorado at Denver
Prentice Hall, Inc. © 2006 2–9
Performance Planning:
Development Plan
 Areas for improvement
 Goals to be achieved in each area of
improvement

10. Herman Aguinis, University of Colorado at Denver
Prentice Hall, Inc. © 2006 2–10
Performance Execution:
Employee Responsibilities
The employee has primary responsibility and
ownership of this stage.
 Commitment to goal achievement
 Ongoing requests for feedback and coaching
 Communication with supervisor
 Collecting and sharing performance data
 Preparing for performance reviews

11. Herman Aguinis, University of Colorado at Denver
Prentice Hall, Inc. © 2006 2–11
Performance Execution:
Manager Responsibilities
• Observation and documentation on daily basis
• Updates (regarding current organizational goals, objectives, standards.)
• Feedback (on progress towards goals and coaching)
• Resources (opportunities to participate in developmental acctivities,
training, special assignments)
• Reinforcement

12. Herman Aguinis, University of Colorado at Denver
Prentice Hall, Inc. © 2006 2–12
Performance Assessment
• Both the employee and the manager are
responsible for evaluating the extent to which
the desired behaviors have been displayed,
and whether the desired results have been
achieved.
• This also includes an evaluation of the extent
to which the goals stated in the development
plan have been achieved.

13. Herman Aguinis, University of Colorado at Denver
• Supervisors assessment
• Peers and team assessment
• Subordinates assessment
• Self-assessment
• Customers assessment
Prentice Hall, Inc. © 2006 2–13

14. Herman Aguinis, University of Colorado at Denver
Prentice Hall, Inc. © 2006 2–14
Multiple Assessments Are Necessary
Increase employee ownership
Increase commitment
Provide information
Ensure mutual understanding

15. Herman Aguinis, University of Colorado at Denver
Prentice Hall, Inc. © 2006 2–15
Performance Review
Overview of Appraisal Meeting
The performance review stage involves the
meeting between the employee and the
manager to review their assessments. This
meeting is usually called the appraisal
meeting or discussion.

16. Herman Aguinis, University of Colorado at Denver
• Appraisal meeting provides for formal setting in which the
employee receives feedback on his/her performance.
• Many managers are uncomfortable providing performance
feedback, particularly when performance is deficient.
Prentice Hall, Inc. © 2006 2–16

17. Herman Aguinis, University of Colorado at Denver
Appraisal meeting is seen as a review of the
• Past
– What has been done (results) and how (behaviors).
• Present
– What new compensation employee may be receiving as a
result of his/her performance.
• Future
– Goals to be attained before the upcoming review session.
Prentice Hall, Inc. © 2006 2–17

18. Herman Aguinis, University of Colorado at Denver
Prentice Hall, Inc. © 2006 2–18
Performance Renewal and
Recontracting
• Same as/different from Performance Planning
– Uses insights and information from previous
phases
– Cycle begins again