The document outlines the key steps in the performance management process: prerequisites of understanding organizational goals and job duties, performance planning involving objectives and standards, execution where supervisors provide feedback and employees work towards goals, assessment of performance, review meetings, and renewal of the process. The performance management cycle aims to align employee performance with organizational strategy through ongoing communication and evaluation.

1. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–1
Performance Management ProcessPerformance Management Process
Performance
Review
Performance
Renewal and
Recontracting
Performance
Assessment
Performance
Execution
Performance
Planning
Prerequisites

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

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

4. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–4
A.A. Knowledge of missionKnowledge of mission
and strategic goalsand strategic goals
• Strategic planning
– Purpose or reason for organization’s
existence
– Where organization is going
– Organizational goals
– Strategies for attaining goals

5. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–5
Mission and GoalsMission and Goals
Cascade effect throughout organization
Organization Unit Employee

6. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–6
B.B. Knowledge of the jobKnowledge of the job
• Job analysis of key components
– Activities, tasks, products, services, processes
• KSAs required to do the job
– Knowledge
– Skills
– Abilities

7. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–7
Job DescriptionJob Description
• Job duties
• KSAs
• Working conditions

8. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–8
Generic Job DescriptionsGeneric Job Descriptions
Occupational Informational Network (O*Net)
http://online.onetcenter.org/

9. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–9
Job analysisJob analysis
• Use a variety of tools
– Interviews
– Observation
– Questionnaires (available on Internet)

10. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–10
Job analysis follow-upJob analysis follow-up
• All incumbents should
– review information and
– provide feedback
– Task
• Frequency
• Criticality

11. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–11
Performance Planning:Performance Planning:
ResultsResults
Key accountabilities
Specific objectives
Performance standards
Outcomes an employee must produce.

12. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–12
Key AccountabilitiesKey Accountabilities
Broad areas of a job
for which
the employee is responsible
for producing results

13. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–13
Specific ObjectivesSpecific Objectives
Statements of outcomes
 Important
 Measurable

14. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–14
Performance StandardsPerformance Standards
• “Yardstick” to evaluate how well employees
have achieved each objective
• Information on acceptable and unacceptable
performance, such as
quality
quantity
cost
time

15. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–15
Performance Planning:Performance Planning:
BehaviorsBehaviors
How a job is done

16. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–16
Performance Planning:Performance Planning:
CompetenciesCompetencies
• Measurable clusters of KSAs
• Critical in determining how results will be
achieved

17. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–17
Performance Planning:Performance Planning:
Development PlanDevelopment Plan
 Areas for improvement
 Goals to be achieved in each area of
improvement

18. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–18
Performance Execution:Performance Execution:
Employee ResponsibilitiesEmployee Responsibilities
 Commitment to goal achievement
 Ongoing performance feedback and coaching
 Communication with supervisor
 Collecting and sharing performance data
 Preparing for performance reviews

19. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–19
Performance Execution:Performance Execution:
Supervisor ResponsibilitiesSupervisor Responsibilities
• Observation and documentation
• Updates
• Feedback
• Resources
• Reinforcement

20. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–20
Performance AssessmentPerformance Assessment
• Manager assessment
• Self-assessment
• Other sources (e.g., peers, customers, etc.)

21. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–21
Multiple Assessments Are NecessaryMultiple Assessments Are Necessary
Increase employee ownership
Increase commitment
Provide information
Ensure mutual understanding

22. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–22
Performance ReviewPerformance Review
Overview of Appraisal MeetingOverview of Appraisal Meeting
• Past
– Behaviors and results
• Present
– Compensation to be received
• Future
– New goals and development plans
The meeting between the employee and the manager to review assessment.

23. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–23
Six Steps for ConductingSix Steps for Conducting
Productive Performance ReviewsProductive Performance Reviews
1. Identify what the employee has done well and
poorly
2. Solicit feedback
3. Discuss the implications of changing behaviors

24. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–24
Six Steps for ConductingSix Steps for Conducting
Productive Performance ReviewsProductive Performance Reviews
4. Explain how skills used in past
achievements can help overcome any
performance problems
5. Agree on an action plan
6. Set a follow-up meeting and agree on
behaviors, actions, attitudes to be evaluated

25. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–25
Performance Renewal andPerformance Renewal and
RecontractingRecontracting
• Same as/different from Performance Planning
– Uses insights and information from previous
phases
– Cycle begins again

26. Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006 2–26
Performance Management ProcessPerformance Management Process
Summary: Key PointsSummary: Key Points
Ongoing process
Each component is important
If one is implemented poorly, whole system suffers
Links between components must be clear