Objectives of performance management:

1.​ Individual objectives:

○​ (1 employee)
○​ Clear performance goals
○​ Addressing areas of underperformance
○​ Powerful tool for employee engagement
○​ Catalyst for employee development
○​ Evidence on employee performance
○​ Additional performance support
2. Team Objectives:
●​ (2 or more employees)
●​ Promotes teamwork
3. Departmental/ Unit objectives
●​ (typically more than 10 employees)
●​ Improves relationships
●​ Clear guidelines of how performance can be managed
4. Organisational Objectives
●​ (all employees)
●​ Cascading overall business goals
●​ Contributes to the goals of the organisation
●​ Ensuring good communication and feedback
●​ Assists with change management
●​ High performance
●​ Monitoring and evaluation of performance

Difference between performance management and performance

appraisal
Performance management:
●​ Is a planned process of directing, developing and supporting,
aligning and improving individual and team performance in
enabling the achievement of organizational objectives
●​ The means through which managers ensure that employees’
activities and outcomes are congruent with organisational goals
●​ The role of the manager is to manage the overall process of
performance
●​ The role of the employee is to perform so that the employee
performance data can be infused into the overall performance
management process
 ●​ Performance management is a continuous process that includes
formal and informal performance-related interactions throughout
the year
●​ Emphasis on performance planning, performance standards,
developmental plans and reviews

Performance appraisal
●​ The systematic approach of consolidating measurements of actual
performance of individuals against performance expectations,
giving feedback to employees and reaching agreement on rating of
performance
●​ The process through which an organisation gets information on
how well an employee is doing his/her job
●​ The role of the manager is to support and observe employee
performance and to provide the necessary feedback
●​ The role of the employee is to keep records of his/her performance
outputs as evidence for performance appraisal
●​ Daily, monthly, weekly, quarterly, semi-annual or annual, formal
review sessions take place between an employee and her/his
supervisor
●​ Emphasis on performance ratings and rewards and recognition

Define the term performance management​

Performance management refers to the overall process and
methodology for managing performance in an organization. It includes
setting performance standards, measuring and assessing performance,
providing feedback, and supporting employee development to align with
organizational goals​.​

Indicate the objectives of performance management​

The objectives of performance management include:​

●​ Strategic: Aligning employee performance with the organization’s

goals.
●​ Administrative: Ensuring that performance data is used for
decision-making (e.g., promotions, rewards).
 ●​ Informational: Providing employees with feedback about their
work performance.
●​ Developmental: Identifying training needs and areas for
improvement.
●​ Organizational Maintenance: Maintaining overall productivity and
workforce stability.
●​ Tracking: Monitoring employee progress to ensure continuous
improvement​.

Discuss 3 areas of criticism of performance management​

●​ Irrelevance of Traditional Approaches: Many traditional

performance management systems are outdated and do not align
with modern work environments.
●​ Subjectivity in Performance Appraisals: Performance
evaluations can be biased and may not truly reflect employee
performance.
●​ Unjustified Link Between Pay and Performance: Many systems
link salary increases and bonuses to performance appraisals, but
research shows this connection is often not scientifically justified​.

Differentiate between performance management and performance

appraisal​

●​ Performance Management: A continuous process that involves

setting goals, monitoring progress, and developing employees to
improve performance.
●​ Performance Appraisal: A periodic assessment of an employee’s
performance, typically conducted annually or biannually, and used
to provide feedback and determine rewards or disciplinary actions​.

Explain the possible outcomes for the organization if the

performance system is not implemented correctly​

●​ Increased Employee Turnover: Employees may leave the

organization if they feel the system is unfair or ineffective.
 ●​ Inaccurate Performance Data: Poorly implemented systems may
lead to unreliable assessments, affecting decision-making.
●​ Low Employee Morale and Self-Esteem: Inconsistent or negative
feedback can demotivate employees, leading to resentment
toward management.
●​ Wasted Resources: A faulty system requires time and money,
which will be wasted if it fails to improve performance.
●​ Damaged Workplace Relationships: Poorly managed
performance reviews can lead to conflicts and a toxic work
environment

Chapter 1: Understanding Performance Management

Key Concepts:

●​ Performance Management (PM): A strategic process to improve

organizational effectiveness by aligning individual and team goals
with business objectives.
●​ Performance Appraisal: A component of PM focused on
evaluating employee performance and providing feedback.
●​ Objectives of PM:
○​ Strategic: Aligns individual and team performance with
organizational goals.
○​ Administrative: Used for salary adjustments, promotions,
and terminations.
○​ Informational: Provides data on employee performance.
○​ Developmental: Identifies training and development needs.
○​ Organizational Maintenance: Ensures succession planning
and workforce alignment.
○​ Tracking: Monitors progress toward business goals.
●​ Criticism Against PM:
○​ Traditional methods may be outdated.
○​ Appraisals can be subjective.
○​ Weak correlation between pay and performance.
○​ Fear of appraisals leads to dishonesty.
○​ Managers struggle with providing honest feedback.
○​ Digital PM tools reduce face-to-face engagement.
●​ Outcomes of Poorly Implemented PM Systems:
○​ High employee turnover.
 ○​ Misrepresented performance data.
○​ Low self-esteem and morale issues.
○​ Wasted organizational resources.
○​ Workplace conflicts.
●​ National Standards on PM (SABPP):
○​ Performance strategy, policy, standards, and improvement
measures.

Performance Management

●​ A continuous process of directing, developing, and aligning

individual and team performance with organizational goals.
●​ Ensures employees' activities and outcomes support company
objectives.
●​ Manager’s Role: Oversees and manages the performance
process.
●​ Employee’s Role: Performs duties, contributing data to
performance management.
●​ Includes formal and informal interactions throughout the year.
●​ Focuses on planning, standards, development, and reviews.

Performance Appraisal

●​ A structured evaluation comparing actual performance to

expectations, providing feedback, and rating performance.
●​ Assesses how well employees perform their roles.
●​ Manager’s Role: Observes, supports, and provides feedback.
●​ Employee’s Role: Keeps records of performance as evidence for
evaluation.
●​ Conducted at specific intervals (daily, monthly, quarterly, etc.).
●​ Focuses on ratings, rewards, and recognition.