Performance management

Performance management
12/7/20151

Class experience
12/7/20152
Define:
 performance &
 Performance management
 Why performance management ?
 The role of goal setting, feedback and positive
self –belief in performance management

Issues for discussion
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What is performance(the meaning)
What is performance management
performance management system
Dimension and approach of PM in health care
organizations
Prerequisite for PM in health care
organizations

Introduction ….
 The meaning of performance:
“If you can’t define performance you can’t
measure or manage it”.
 Latham, Sulsky and Macdonald (2007)
emphasize that an appropriate definition of
performance is a prerequisite for feedback
and goal setting processes.
12/7/20154

The meaning of performance…
There are different views on what
performance is:
 It can be regarded as simply the record of
outcomes achieved.
 On an individual basis, it can be a record of the
person’s accomplishments
 Kane (1996) argues that performance “is
something that the person leaves behind and
that exists apart from the purpose”
12/7/20155

 Bernardin et al (1995),are concerned that:
‘Performance should be defined as the outcomes
of work because they provide the strongest
linkage to the strategic goals of the
organization, customer satisfaction, and
economic contributions.’
 Guest (1996) also believes that performance is
about outcomes but that the concept should be
linked to the idea of a balanced scorecard.
12/7/20156

 Borman and Motowidlo (1993) considered the
notion of contextual performance that covers
non-job-specific behaviors such as:
 cooperation,
 dedication,
 enthusiasm and persistence
 and is differentiated from task performance
covering job-specific behaviors
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 Fletcher (2001) mentions that, contextual
performance deals with attributes that go
beyond task competence and that foster
behaviours that enhance the climate and
effectiveness of the organization.
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12/7/20159
The Oxford English Dictionary;
The accomplishment, execution, carrying
out, working out of anything ordered or
undertaken
This refers to outputs/outcomes
(accomplishment)
Performance could therefore be regarded as
behaviour – the way in which organizations,
teams and individuals get work done.

Campbell (1990), believes that:
 ‘Performance is behaviour and should be
distinguished from the outcomes because they
can be contaminated by systems factors.’
 Brumbach (1988), a more comprehensive
view of performance is achieved if it is
defined as embracing both behaviour and
outcomes.
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 According to Brumbach:
 Performance means both behaviours and results.
 Behaviours emanate from the performer and
transform performance from abstraction to
action.
 Not just the instruments for results, behaviours
are also outcomes in their own right – the
product of mental and physical effort applied to
tasks – and can be judged apart from results.
12/7/201511

 Therefore this definition of performance leads to
the conclusion that when managing the
performance of teams and individuals both inputs
(behaviour) and outputs (results) need to be
considered.
 This is the mixed model of performance
management that covers competency levels and
achievements as well as objective setting and
review.
 And it is this model that research (eg Armstrong
and Baron, 2004) has shown to be the one that is
interesting many organizations.
12/7/201512

 Campbell et al (1993) are more concerned with
measuring performance.
 They define it as behaviour or action relevant to
the attainment of the organization’s goals that
can be scaled, that is, measured.
 This theory states that performance is
multidimensional and that each dimension is
characterized by a category of similar behaviour
or actions.
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12/7/201514
performance is multidimensional-
The components consist of:
1) job-specific task Proficiency;
2) non-job-specific proficiency
3) written and oral communication proficiency;
4) demonstration of effort;

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5) maintenance of personal discipline;
6) facilitation of personal and team
performance;
7) supervision/leadership; and
8) management/administration (Campbell et al (1993)

12/7/201516
 People need both ability and
motivation to perform well, and if either
ability or motivation is zero there will
be no effective performance (Vroom (1964)
Performance = individual attributes ×
work effort × organizational
support(Blumberg and Pringle (1982).

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performance is a function of Ability +
Motivation + Opportunity to
Participate(Boxall and Purcell 2003)
these formulas focus on individual
performance but they neglect the effect of
systems.

12/7/201518
Individual performance is inﬂuenced by
systems factors as well as person
factors (Cardy and Dobbins, 1994).
These will include the support they get
from the organization and other factors
outside the control of individuals.

12/7/201519
Therefore ,the role of management is to
focuses on:-
• clear, coherent support for employees:-
 by providing information about organization
goals,
 resources, technology, structure, and policy,
 thus creating a context that has multiplicative
impact on the employees, their individual
attributes (competency to perform),
 and their work effort (willingness to perform).

12/7/201520
differences in performance are largely
due to systems variations(Deming (1986).
success isn’t primarily down to the
individual, but to his or her context
( Gladwell (2008).

12/7/201521
 systems impact includes:
the organization’s methods, structure,
support, materials,
equipment, customers, work culture,
internal and external environments (such
as markets, the community,
governments),
and the interaction of these
components(Coens and Jenkins (2002)

12/7/201522
Because of the interdependency of the
parts, improvement strategies aimed at
the parts, such as appraisal, do little or
nothing to improve the system
Individual performance is mostly
determined by the system in which the
work is done rather than by the
individual’s initiative, abilities and
efforts…

12/7/201523
 However, ‘We do not advocate abandoning
all strategies aimed at individual
improvement, personal development and
goal attainment.
‘When combined with serious efforts toward
improving the system and work
environment, such initiatives can
signiﬁcantly boost organizational
transformation.’ (Coens and Jenkins)

Performance Management( PM)
12/7/201524

Performance mgt….
12/7/201525
 The following definitions inform us to view
the change that concept of performance
management has undergone during 1990s
 1 “…organization of work to achieve the
best possible result.”.Fowler(1990)=this only
shows it is totality of day -to- day activities of all
managers =no system factors

Performance mgt….
12/7/201526
 2. The institute of personnel
management (1992):
“strategy which relates to every activity
of the organization set in the context of
its human resource policies, culture,
style and communication systems”.
The nature of the strategy depends on the
organizational context and can vary from
organization to organization”.

Performance mgt….
12/7/201527
3.Storey & Sisson (1993):
“ An interlocks set of policies and practices
which have as their focus the enhanced
achievement of organizational objectives
through a concentration on individual
performance”

Performance mgt….
12/7/201528
 4.Fletcher(1992):
 “an approach to creating a shared vision
of the purpose and aims of organization
,helping each individual employee
understand and recognize their part in
contributing to them,
 and in so doing manage and enhance
performance of both individuals and
organization” .

Performance mgt….
12/7/201529
 PM is a means of getting better results
from the organization, teams and
individuals within an agreed framework
of planned goals, objectives and
standards (Armstrong and Murlis, 1994).

Performance mgt….
12/7/201530
 Performance management is about
‘directing and supporting employees to
work as effectively and efficiently as
possible in line with the needs of the
organization’ (Walters,1995).

Performance mgt….
12/7/201531
While the earliest forms of staff PM
focused on performance management
tools, modern approaches have
emphasized the need to combine various
tools in order to achieve an integrated
and coherent PM system .
in the public sector ,the most popular
approach to PM has been the use of staff
appraisal.

Performance mgt….
12/7/201532
• Efficiency drives in the public sector of
many countries during 80s and 90s
further contributed to the notion that
emphasize:
the performance of individual should not
be taken for granted (Flynn,1993) and the
higher productivity
a dimension of performance could only be
attained through people(Peters 1992).
• This led to the principle that good
performance should be rewarded and bad
performance should not be tolerated.

Performance mgt….
12/7/201533
This required the setting up of means to
measure performance ,and the
subsequent development of performance
indicator .
Therefore the concept of performance
management have been evolved
overtime.

Performance mgt….
 In the health sector, PM is defined as set of
managerial instruments designed to secure
optimal performance of the health care
system over time, in line with policy
objectives
 Health system performances management
 Includes both the instrument and processes to
improve health system performance
12/7/201534

why performance management?
12/7/201535
 The impact of coordinated efforts of
performance management strategies in an
organizations includes :
1. better return on dollars invested
2. greater accountability for funding and
increases in the public’s trust;
3. reduced duplication of efforts;
4. better understanding of
accomplishments and priorities among
employees, partners, and the public;

Why performance management?---
12/7/201536
5.increased sense of cooperation and
teamwork;
6.increased emphasis on quality, rather
than quantity; and
7.improved problem solving

components of performance management
12/7/201537
 There are four components of PM
1. Performance standards; establishing
organizational or system performance
standards ,targets and goals to improve
organizational practices.
2. Performance measures: developing, applying
and using performance measures to assess
achievement of such standards

components of performance management
12/7/201538
3. Reporting of progress: documentation and
reporting of progress in meeting standards and
targets and sharing of such information through
feedback.
4. Quality improvement; establishment of a
program or process to manage change and
achieve quality improvement in programs or
infrastructure based on performance standards,
measurements, and reports

Components ….
12/7/201539
These Four Components of PM Can be
Applied to;
1. Human Resource Development
2. Data and Information Systems
3. Customer Focus and Satisfaction
4. Financial Systems
5. Management Practices
6. Public Health Capacity
7. Health Status

Performance standards
12/7/201540
 Performance standards are objective
standards or guidelines that are used to
assess an organization’s performance .
(e.g., two health extension workers per 2500 population
served,
100 % of all clients who rate health department services as
“good” or “excellent”).

Performance standards ..
12/7/201541
performance standards can be set;
 based on national, state, or scientific
guidelines;
 by benchmarking against similar
organizations;
 based on the public’s or leaders’
expectations (e.g., 100% access, zero
disparities);
 or other methods.

Performance indicators
12/7/201542
Performance indicators summarize:
 the focus (e.g., workforce capacity,
customer service) of performance
goals and measures.

Performance targets
12/7/201543
Performance targets:
 set specific and measurable goals related
to agency or systems performance.

in Summary;
12/7/201544
 PM is the process that involves:
1.setting strategic objectives and targets for
the organization and for its different units
before attempting to establish individual
staff performance targets.
2.identifying and implementing tasks to
achieve those objectives and aligning
individuals targets to the fulfillment of
those tasks .
3.monitoring performance of those tasks at
organizational, unit and individual level.
4. Reviewing objectives and targets in the
light of the outcomes

PM systems
12/7/201545
a PM system is a set of interrelated
activities and processes that are treated
holistically as an integrated and key
component of an organization’s approach to
managing performance through people and
developing the skills and capabilities of its
human capital, thus enhancing
organizational capability and the
achievement of sustained competitive
advantage.

PM system….
12/7/201546
Characteristics of performance
management systems by Armstrong &
Baron:
 It communicates a vision of it’s objectives to
all it’s employees.
 It sets departmental ,unit ,team and
individual performance targets that are
related to wider objectives
 It conducts a formal review of progress to
wards this targets.
 It uses the review process to identify
training, development and reward outcomes

PM system….….
12/7/201547
 It evaluates the whole process in order to
improve effectiveness .
 It defines a marginal structure to look after
all the characteristics above so that
individual staff and managers are assigned
specific responsibility to manage the
performance management system .

Setting up PM system
12/7/201548
 There is no single agreed, acceptable model
of performance management
Fletcher( 1992) suggest that :
1.developing the organization mission
statement and objective;
2.Enhancing communication within the
organization to that employees are not only
aware of objectives and business plan ,but in
a position to contribute to their formulation;
3.Clarifying individual responsibility and
accountability lines ;

Setting up PM system…
12/7/201549
4.Defining and measuring individual
performance:
-what is meant by performance in a particular
organization, and how do PM process will
enhance performance;
5.Implementing appropriate reward strategies;
6.Developing staff to improve performance and
career progression in the future

What PM systems exist to do? (Lee, 2005)
12/7/201550
 The real goals of any performance
management system are threefold –
 to correct poor performance, to sustain good
performance and to improve performance.
 All performance management systems should be
designed to generate information and data
exchange;
so that the individuals involved can properly
dissect performance, discuss it, understand
it, and agree on its character and quality.

A PM system operates as a continuous and self-
renewing cycle .
12/7/201551
plan act
review Monitor
• Figure 1

Formal performance reviews
12/7/201553
 Although performance management is a
continuous process it is still useful to have a
formal review once or twice yearly.
 This provides a focal point for the consideration
of key performance and development issues.

Formal performance reviews..
12/7/201554
 The performance review meeting is the
means through which the primary
performance management elements of
agreement, measurement, feedback,
positive reinforcement and dialogue can be
put to good use.
 It leads to the completion of the
performance management cycle by
informing performance and development
agreements. It involves some form of
assessment.

ethical dimension of PM
12/7/201555
 PM should operate in accordance with
agreed and understood ethical principles.
• These have been deﬁned by Winstanley
and Stuart-Smith (1996) as follows:
1.respect for individual
2.mutual respect
3.procedural fairness
4.transparency

Dimensions and approaches to
performance management in health care
12/7/201556
1. business planning- developing a plan that maps
out how various organizational and services
target will be achieved overtime
2.quality assurance and bench marking –defining
quality indicators for services and for units in the
context of nationally defined & agreed criteria.
 QA is a planned and systematic approach to
monitoring and implementing the quality of health
services on a continuous bases within the
existing resource (LSTM 2000).

Dimensions and approaches to performance
management in health care…
12/7/201557
3. competence based education and training :-
Ensuring support to all staffs in order that they
show /attain the level of competence required
to undertake service tasks .
this is crucial in changing service scenario
where staff adopt an increasing multipurpose
orientation that require them to undertake
new tasks in different ways.

Dimensions and approaches to
performance management in health
care…
12/7/201558
4.clinical audit –including Pt based diagnostic
& treatment protocol.
5. performance indicators –eg. staff, unit or
service in all cases.
 in all cases they must be rooted in prior
assessment of problems and gaps

Dimensions and approaches to performance
management in health care…
12/7/201559
6. use of assessment technique and
development centers;
 Eg. in the form of appraisal , PM require a
periodic review of achievements against
target set as well as a practical means to
address staff development needs in staff
development center

Prerequisites for introducing PM in
health care organizations
12/7/201560
A. organizational (internal) prerequisites :
1.Adequate pay level
2. Equipments ,tools and skills to do job
3.The right balance of incentives for staff to perform
well
4.Local autonomy & decision making
5.Familiarity with planning methods

internal prerequisites…
12/7/201561
6.Effective communications
7.Leadership and effective management
systems
8.A culture of accountability and openness
9.Gender issues

Prerequisites for introducing PM in
health care organizations…
12/7/201562
B. External pressures and triggers facilitating PM
1.political pressure and health care reforms
2.Financial pressure
3.Decentralization
4.Pressure from service users

Summary
 The process of performance management
consists of four steps:
1. Desired job performance is defined.
2. Specific challenging goals are set as to what the
person or team should start doing, stop doing or do
differently.
3. The individual’s performance on the job is observed.
4. Feedback is provided and a decision is made about,
training, transferring, promoting, demoting or
terminating the contract of an individual
12/7/201563

Summary
12/7/201564
The overall goal of PM is to ensure that an
organization and its subsystems (processes,
departments, teams, etc.), are optimally
working together to achieve the results
desired by the organization.
PM has a wide variety of applications, such
as, staff performance, business
performance, or in health care, health
outcome performance measures.

Assignments out of 10%
12/7/201565
 360-degree feedback and its application
 Develop Human Resource Development
plan of your organization using the four
components of PM

Performance management

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