The document summarizes the six components of the performance management process: 1. Prerequisites including understanding the organization's mission and job analysis. 2. Performance planning involving setting objectives, standards, competencies and development goals. 3. Performance execution where both employees and managers are responsible for regular feedback, collecting performance data, and preparing for reviews. 4. Performance assessment involving self-appraisals and evaluations from supervisors. 5. Performance review meeting to discuss performance and set compensation and future goals. 6. Performance renewal and recontracting to adjust goals and standards based on review period results.

1. MD. AL-AMIN (SAJIB)
Lecturer
Dept. of Human Resource Management
Jatiya Kabi Kazi Nazrul Islam University
Trishal, Mymensingh-2224, Bangladesh
Email: alaminsajibhrm@gmail.com
Conduct: 01309-027320
Course Name: Performance Management
Course Code: HRM-511

2. Chapter - 02
Performance Management Process
Chapter outline:
1. Components of Performance Management
Process.

3. 01. Components of PM Process
Performance Management is an ongoing process.
It never ends. Once established in an organization,
it becomes part of an organization’s culture. The
performance management process includes six
closely related components.
Each of the six components of the performance
management process plays an important role. If
any of these components is implemented poorly,
then the entire performance management system
suffers.

4. 01. Components of PM Process
1. Prerequisites,
2. Performance planning,
3. Performance execution,
4. Performance assessment,
5. Performance review, and
6. Performance renewal and re contracting

5. 01. Components of PM Process
1.1 Prerequisites:
The first component of the performance
management process involves two prerequisites.
First, there is a need to have good knowledge of
the organization’s mission and strategic goals.
Second, there is a need to have good knowledge of
the job in question or job analysis.

6. 01. Components of PM Process
1.2 Performance Planning.
Performance planning includes the consideration of
results and behavior as well as a development plan. A
discussion of results needs to include key
accountabilities (i.e., broad areas for which an employee
is responsible), specific objectives for each key
accountability (i.e., goals to be reached), and
performance standards (i.e., what are acceptable and
unacceptable levels of performance). A discussion of
behaviors needs to include competencies (i.e., clusters of
KSAs). Finally, the development plan includes a
description of areas that need improvement and goals to
be achieved in each area.

7. 01. Components of PM Process
1.3 Performance execution.
Both the employee and the manager are responsible for
performance execution. The employee has a responsibility to
be prepared for the performance review by conducting regular
and realistic self appraisals. At this stage, the following
factors must be present in the mind of employees-
 Commitment to goal achievement
 Ongoing performance feedback and coaching
 Communication with supervisor
 Collecting and sharing performance data
 Preparing for performance reviews

8. 01. Components of PM Process
On the other hand, the supervisor also has important
responsibilities over the following issues
 Observing and documenting of performance,
 Updating the employee on any changes in the
goals of the organization,
 Provide feedback on a regular basis before the
review cycle is over, and
 Providing resources and reinforcement so that the
employee can succeed and continue to be
motivated.

9. 01. Components of PM Process
1.4 Performance assessment:
Both the employee and the supervisor must evaluate
employee performance. Involvement of the
employee in the process increases his or her
ownership and commitment to the system. In
addition, it provides important information to be
discussed during the performance review. In the
absence of self-appraisals, it is often not clear to
supervisors if employees have a real understanding
of what is expected of them.

10. 01. Components of PM Process
1.5 Performance review:
When the employee and manager meet to discuss
employee performance. This meeting is usually called
the appraisal meeting. This meeting emphasizes the past:
what the employee has done and how it was done. An
effective appraisal meeting also focuses on the present
and the future. The present involves the changes in
compensation that may result from the results obtained.
The future involves a discussion of goals and
development plans that the employee will be expected to
achieve during the period before the next review session.

11. 01. Components of PM Process
1.6 Performance Renewal and Recontracting:
Although this component is identical to the
performance planning stage, this component uses
information gathered during the review period to
make adjustments as needed. For example, some
new key accountabilities and competencies may be
included. Conversely, some goals may have to be
adjusted either upward or downward.

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