Performance management is defined as a continuous process of identifying, measuring, and developing employee performance and aligning it with organizational goals. It differs from performance appraisal which is typically done once a year without ongoing feedback. Performance management contributes to employees through clearer expectations and feedback, increased motivation and self-esteem, and development opportunities. It contributes to managers through better communication and insight into employee performance. For organizations, it clarifies goals and facilitates change. Performance is determined by declarative knowledge, procedural knowledge, and motivation. It has both task-related and contextual dimensions. Performance can be measured through trait, behavior, and results approaches. The behavior approach assesses how work is done while results assess outcomes produced.

1. PERFORMANCE MANAGEMENT AND
PERFORMANCE
Lecture 001
By: Dr. Ghulam Dastgeer

2. PERFORMANCE MANAGEMENT: DEFINITION
 Performance management is a continuous process of identifying,
measuring, and developing the performance of individuals and teams and
aligning performance with the strategic goals of the organization.
 Performance management (Briscoe and Claus, 2008)
Performance management is the system through which organizations set work
goals, determine performance standards, assign and evaluate work, provide
performance feedback, determine training and development needs and distribute
rewards.
Continuous Process of
 Identifying performance of individuals and teams
 Measuring performance of individuals and teams
 Developing performance of individuals and teams
and
 Aligning performance with the strategic goals of the organization

3. PERFORMANCE MANAGEMENT VS
PERFORMANCE APPRAISAL
 Performance Appraisal:
 Performance appraisal is the system that
involves employees evaluations once a year
without an ongoing efforts to provide feedback
and coaching so that performance can be
improved.
 Performance appraisal is the systematic
description of an employee’s strengths and
weakness.
 So performance appraisal is an important
component of performance management

4. PM IS NOT PERFORMANCE APPRAISAL
 PM
 Strategic business
considerations
 Ongoing feedback
 So employee can
improve performance
 Driven by line manager
 Performance appraisal
 Assesses employee
 Strengths &
 Weaknesses
 Once a year
 Lacks ongoing
feedback
 Driven by HR

5. CONTRIBUTIONS OF PM
FOR EMPLOYEES
 The definitions of job and success are clarified
 Motivation to perform is increased
 Self-esteem is increased
 Self-insight and development and enhanced

6. CONTRIBUTIONS OF PM
FOR MANAGERS
 Supervisors’ views of performance are
communicated more clearly
 Managers gain insight about subordinates
 There is better and more timely differentiation
between good and poor performers
 Employees become more competent

7. CONTRIBUTIONS OF PM
FOR ORGANIZATION/HR FUNCTION
 Organizational goals are made clear
 Organizational change is facilitated
 Administrative actions are more fair and appropriate
 There is better protection from lawsuits

8. UNDERPINNING THEORIES
 Goal theory
 Goal theory highlights four mechanisms that
connect goals to performance outcomes:
 1) they direct attention to priorities;
 2) they stimulate effort;
 3) they challenge people to bring their knowledge
and skills to bear to increase their chances of
success; and
 4) the more challenging the goal, the more people
will draw on their full repertoire of skills.

9.  Control theory
 Control theory focuses attention on feedback as a
means of shaping behaviour. As people receive
feedback on their behaviour they appreciate the
discrepancy between what they are doing and what
they are expected to do and take corrective action
to overcome it.

10.  Social cognitive theory
 Social cognitive theory is based on central concept
of self-efficacy. This suggests that what people
believe that they can or cannot do powerfully
impacts on their performance.
 Developing and strengthening positive self-belief in
employees is therefore an important performance
management objective.

11. PERFORMANCE

12. DEFINING PERFORMANCE
PM systems usually include measures of
both behaviors (what an employee
does) and results (the outcomes of an
employee’s behavior).
Performance is about behavior or what
employees do, and not what employees
produce or the outcomes of their work.

13.  Q: why do certain individuals perform better than
others?
or
What factors cause an employee to perform at a
certain level?

14. DETERMINANTS OF PERFORMANCE
Performance =
Declarative Knowledge
X
Procedural Knowledge
X
Motivation
In any of the determinants has a value of 0, then performance
also has a value of 0.

15. A. DECLARATIVE KNOWLEDGE
 Declarative knowledge is information about facts
an things, including information regarding a given
task’s requirements, labels, principles, and goals.

16. B. PROCEDURAL KNOWLEDGE
• Procedural knowledge is combination
of knowing what to do and how to do it
and include cognitive and physical
skills

17. C. MOTIVATION
 Motivation involves three types of Choices
 Expenditure of effort (I will go to work today)
 Level of effort (I will put in my best efforts at work)
 Persistence of effort (I will persist no matter what)

18. PERFORMANCE DIMENSIONS:
TYPES OF MULTI-DIMENSIONAL BEHAVIORS:
Two types of behaviors or
performance facts stand out:
Task performance
Contextual performance

19. TASK PERFORMANCE
T.P is defined as activities that
 From the perspective of managers: performance
on the job often consist of outcomes.
 Goals/actions, not the activities, that are important.
 transform raw materials into the goods and
services.
 How many sales were made?
 How much was waste reduces?
 How many were made?

20. CONTEXTUAL PERFORMANCE
 From the perspective of Employees: it is what
workers do day in and day out on the job (activities
on various tasks).
 From this perspective performance consists of
behaviors, and how well those behaviors are
executed.
 Behaviors that contribute to organization’s
effectiveness and provide a good environment in
which task performance can occur

21.  Contextual performance examples:
 Being punctual
 Expending extra efforts on the job
 Suggesting organizational improvements,
 Assisting and helping coworkers and customers
 Following orders and regulations
 Showing respect for authority
 Complying with organizational values and policies
 Organizational loyalty
 Representing the organization favorably to
outsiders.

22.  Q; why both task and contextual performance are
important dimensions to take into account in
performance management systems???

23. WHY INCLUDE TASK & CONTEXTUAL
PERFORMANCE DIMENSIONS IN PM SYSTEM?
1. Global competition
2. Teamwork
3. Customer service
4. Supervisor views

24. Approaches to Measuring
Performance

25. JOB PERFORMANCE IN CONTEXT
A performer
(individual or
team)
In a given
situation
Engages in
certain
behaviors
That
produce
various
results
TRAIT BEHAVIOR RESULTS

26. APPROACHES TO MEASURING PERFORMANCE
 Trait Approach
 Emphasizes individual traits of employees
 Behavior Approach
 Emphasizes how employees do the job
 Results Approach
 Emphasizes what employees produce

27. TRAIT APPROACH
Emphasis on individual
• Evaluate stable traits
Cognitive abilities
Personality
• Based on relationship between traits & performance
Example: performance management may consist of
assessing an employee’s intelligence and
thoroughness at the end of each review period.

28. TRAIT APPROACH (CONTINUED)
Appropriate if
• Structural changes planned for
organization
Disadvantages
• Improvement not under individual’s
control
• Trait may not lead to
Desired behaviors or
Desired results

29. BEHAVIOR APPROACH
This approach describe job performance in
terms of behaviors that the worker should and
should not do.
Simply emphasize the process of how the work
should be done (means)
Appropriate if
• Link between behaviors and results is not obvious
 Good behavior BUT poor results (i.e economy downturn)
 Poor behavior BUT good results (pilot land safely without
checking all the items in the preflight checklist)
• Outcomes occur in the distant future
• Poor results are due to causes beyond the performer’s
control
Not appropriate if
 above conditions are not present

30. RESULTS APPROACH
Results approach emphasizes the
outcomes and results/outcome
produced by the employees. Such as
amount of sales, number of new
clients, and so on.
Simply emphasize what should be
accomplished (ends)
Advantages:
• Less time
• Lower cost
• Data appear objective

31. RESULTS APPROACH (CONTINUED)
Most appropriate when:
• Workers skilled in necessary behaviors
• Behaviors and results obviously related
 i.e the case of job involving repetitive tasks such as assembly-line
worker or newspaper delivery.
• Consistent improvement in results over
time
• Many ways to do the job right