Performance Management and the Organization

Based on Human Resource Management, 4th edition, by Alan Price

 The organization and effective performance

How do organizations decide which performance criteria should be measured? How do they differentiate between a good, average or indifferent employee? This section of Human Resource Management, 4th edition discusses psychological and organizational factors which influence employees' and raters' expectations of 'good performance'.

The 'right' image

It is clear that any performance assessment system is vulnerable to the cloning process. Without thought, performance management can drive out diversity. It is also open to manipulation by employees who can identify the qualities necessary to 'get on' in a particular organization.

Impression management

The most significant quality required for selection to top jobs is the ability to create a good impression. This section of Human Resource Management 4th edtion considers issues such as self-awareness, self-monitoring and cultural role models.

Influencers

Performance assessments tend to value image qualities: apparent self-confidence, the ability to talk charismatically, etc. The so-called 'smile-factor' is related to the halo effect.

 Assessment and organizational change

Delayering and downsizing have had the effect of increasing the ratio of staff to managers throughout the western business world. As a consequence, managers have a greater number of assessments to conduct on people they know less about.

 Performance strategies

Performance management strategies are particularly concerned with workforce motivation or, more accurately, management belief in the factors which lead to employee effort and commitment.

Motivation and performance

There is a considerable body of literature on the relationship between motivation and work performance. Theories range from the simplistic 'economic man' variety, typical of 'scientific management',  to complex expectancy models.

 Achievers and non-achievers

Several researchers have attempted to identify the important factors leading to successful performance by comparing recognized high achievers with average performers. Furnham reviewed much of this and found consistent themes such as: perseverance, ability, contacts (through networking), self-reliance, thinking big and good time management.

Locus of control

Performance management implies that employees can be influenced or controlled to perform effectively. However, people vary in their reactions to the persuasion or coercion of others. This section of Human Resource Management 4th edition discusses the issue in terms of internal and external locus of control.

 Performance management systems

The strategic aspects of performance-related pay processes are exemplified in the integration of appraisal and performance-related pay processes within performance management systems. These links have information about rating scales of various kinds (including trait, competency and behaviourally-anchored systems:

Many modern systems are based on 360-degree assessment.

Management by objectives (MBO)

The origins of strategic performance management can be traced to the concept of management by objectives. This is a technique to establish individual performance objectives which are tangible, mesaurable and verifiable. Individual objectives are derived or cascaded from organizational goals.

 Prescriptions for performance management systems

A number of authors have set out to create templates or rules for performance management systems.

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