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Module 4 in Major 7- Introduction to Personnel Management

The document outlines a module on Performance Management as part of the Introduction to Personnel Management course at the University of Eastern Philippines. It details the learning outcomes, key components, importance, and processes involved in effective performance management, emphasizing continuous feedback and alignment with organizational goals. Additionally, it highlights the roles of human resources and the benefits of performance management for both employees and organizations.

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Jamaica Mendoza
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0% found this document useful (0 votes)
2 views

Module 4 in Major 7- Introduction to Personnel Management

The document outlines a module on Performance Management as part of the Introduction to Personnel Management course at the University of Eastern Philippines. It details the learning outcomes, key components, importance, and processes involved in effective performance management, emphasizing continuous feedback and alignment with organizational goals. Additionally, it highlights the roles of human resources and the benefits of performance management for both employees and organizations.

Uploaded by

Jamaica Mendoza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1

Republic of the Philippines


UNIVERSITY OF EASTERN PHILIPPINES
University Town, Northern Samar
Web: http://uep.edu.ph; Email: uepnsofficial@gmail.com

College of Agriculture, Fisheries, and Natural Resources (CAFNR)

AGRIBUSINESS DEPARTMENT

MAJOR 7

2nd Semester, SY 2024 – 2025

________________________________________________________________________________________________________________
Major 7 – Introduction to Personnel Management
2nd semester, SY 2024 – 2025
4sh’25
2

Module 4
PERFORMANCE MANAGEMENT

MODULE DESCRIPTION:
This module provides clear insights into what performance management entails,
the performance management cycle and best practices, the key features of an effective
performance management, and the future of performance management.
This module focuses on the performance management, performance appraisals
and feedback mechanisms.

LEARNING OUTCOME/S:
Upon the completion of this module, you can:
LO1: define performance management;
LO2: discuss some important takeaways of performance management;
LO3: determine the importance of performance management;
LO4: discover the human resource’s roles in performance management;
LO5: discuss the performance management process or cycle;
LO6: discuss the steps to effective human resource performance management;
LO7: explain how performance management works;
LO8: explain how can manager successfully carry out the performance management
process;
LO9: discuss the benefits of performance management;
LO10: determine the differences between performance management and performance
appraisal;
LO11: define performance appraisal;
LO12: differentiate the types of performance appraisals;
LO13: discuss how performance appraisal works;
LO14: determine the methods of performance appraisal;
LO15: discuss the aims of performance appraisals;
LO16: discuss the uses of performance appraisals;
LO17: discuss the benefits of performance appraisals;
LO18: discuss some suggested tips and techniques for performance appraisals;
LO19: determine when should a performance appraisal take place;
LO20: differentiate performance metrics from key performance indicators;
LO21: define feedback mechanisms;
LO22: discuss the purposes of feedback mechanism;
LO23: discover some examples of feedback mechanism; and
LO24: discuss the benefits of effective feedback mechanism.

LEARNING PLAN:

Introduction:
Performance management has been a forward-looking solution based entirely on
hindsight. But organizational culture is evolving to one of continuous feedback powered
by technology, where managers can foresee problems based on current employee

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Major 7 – Introduction to Personnel Management
2nd semester, SY 2024 – 2025
4sh’25
3

performance and initiate any form of course correction to bring the employee back on
track.
An effective performance management process sets the foundation aligning the
individual's efforts with the university's goals:
☻By linking individual employee work efforts with the organization’s mission and
objectives, the employee and the organization understand how that job contributes to
the organization.
☻By focusing attention on setting clear performance expectations (results + actions &
behaviors), it helps the employee know what needs to be done to be successful on the
job.
☻Through the use of objectives, standards, performance dimensions, and other
measures it focuses effort. This helps the department get done what needs to be done
and provides a solid rationale for eliminating work that is no longer useful.
☻Through regular check-in discussions, which include status updates, coaching, and
feedback, it promotes flexibility, allowing you and the employee to identify problems
early and change the course of a project or work assignment.
An effective performance management process, while requiring time to plan and
implement, can save you and the employee time and energy. Most importantly, it can
be a very effective motivator, since it can help you and the employee achieve
organizational success.

Discussion:

I. Performance Management

Performance management
→is a systematic process that focuses on improving employee performance and aligning it
with organizational objectives. It's not just about evaluating performance, but also about
coaching, development, and providing opportunities for growth.
→is defined as the process of continuous communication and feedback between a manager
and employee towards the achievement of organizational objectives.

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Major 7 – Introduction to Personnel Management
2nd semester, SY 2024 – 2025
4sh’25
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→is an ongoing process of communication between a supervisor and an employee that


occurs throughout the year, in support of accomplishing the strategic objectives of the
organization. The communication process includes clarifying expectations, setting
objectives, identifying goals, providing feedback, and reviewing results.
→is a tool that helps managers monitor and evaluate employees' work. The goal of
performance management is to create an environment where people can perform to the best
of their abilities and in alignment with the organization's overall goals. Performance
management is widely used in both the private and public sectors.
→is the continuing process of communication between managers and employees, with the
mutual goal of accomplishing the strategic goals of the company. It is the foundation for
employee performance and engagement in any organization that wants its employees to reach
their maximum potential and boost their productivity and success. The process- often
combining both oral and written components, is happening throughout the year and
usually results in an annual performance evaluation. This entire communication process
involves defining clear specific expectations, setting objectives, establishing goals, providing
ongoing feedback and examining results.

Key Components of Performance Management:


☻Goal Setting: Establishing clear, measurable, achievable, relevant, and time-bound
(SMART) goals for employees.
☻Performance Planning: Identifying the skills and competencies needed to achieve goals
and developing plans to address any gaps.
☻Performance Monitoring: Regularly tracking progress towards goals and providing
ongoing feedback.
☻Performance Feedback: Providing constructive and timely feedback to employees on
their performance, both positive and areas for improvement.
☻Performance Review: Conducting formal reviews to assess overall performance and
discuss development plans.
☻Performance Development: Creating opportunities for employees to develop their skills
and competencies to improve performance.

Key Takeaways of Performance Management:


1. Performance management is intended to help people perform to the best of their abilities in
alignment with the organization's goals.
2. Performance management views individuals in the context of the broader workplace system
and encourages their input in goal-setting.
3. Performance management focuses on accountability and transparency and fosters a clear
understanding of expectations.
4. Rather than just annual performance reviews, performance management provides ongoing
feedback to employees.

Importance of Performance Management


1. Improved Employee Performance:
→By providing clear expectations, regular feedback, and opportunities for development,
performance management can lead to improved employee performance and productivity.
2. Enhanced Employee Engagement:
→When employees feel valued and supported, they are more likely to be engaged and
motivated.
3. Better Alignment with Organizational Goals:
→Performance management ensures that individual efforts are aligned with the overall strategic
goals of the organization.
4. Facilitates Succession Planning:
→Performance management data can be used to identify high-potential employees and develop
them for future leadership roles.
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Major 7 – Introduction to Personnel Management
2nd semester, SY 2024 – 2025
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5. Data-Driven Decisions:
→Performance data can be used to make informed decisions about compensation, training, and
other HR initiatives.

Human Resource’s Role in Performance Management


1. Design and Implementation: HR professionals play a crucial role in designing and
implementing performance management systems that are
effective and aligned with organizational needs.
2. Training and Support: HR provides training and support to managers on how to effectively
manage employee performance.
3. Data Analysis: HR analyzes performance data to identify trends and areas for improvement.
4. Policy Development: HR develops and maintains performance management policies and
procedures.
5. Facilitating Communication: HR ensures that performance management is communicated
effectively to all employees.

The Performance Management Process or Cycle


The performance management process or cycle is a series of five key steps. These steps
are imperative, regardless of how often you review employee performance.
1. Planning
→This stage entails setting employees’ goals and communicating these goals with them.
While these goals should be disclosed in the job description to attract quality candidates, they
should be communicated once again when the candidate becomes a new hire. Depending
on the performance management process in your organization, you may want to assign a
percentage to each of these goals to be able to evaluate their achievement.
2. Monitoring
→In this phase, managers are required to monitor the employee’s performance on the
goal.
→This is where continuous performance management comes into the picture.
→With the right performance management software, you can track your team’s
performance in real-time and modify and correct course whenever required.
3. Developing
→This phase includes using the data obtained during the monitoring phase to improve the
performance of employees.
→It may require suggesting refresher courses, providing an assignment that helps them improve
their knowledge and performance on the job, or altering the course of employee development
to enhance performance or sustain excellence.
4. Rating
→Each employees performance must be rated periodically and then at the time of the
performance appraisal.
→Ratings are essential to identify the state of employee performance and implement changes
accordingly.
→Both peers and managers can provide these ratings for 360-degree feedback.
5. Rewarding
→Recognizing and rewarding good performance is essential to the performance
management process, as well as an important part of employee engagement.
→You can do this with a simple thank you, social recognition, or a full-scale employee
rewards program that regularly recognizes and rewards excellent performance in
organization.

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Major 7 – Introduction to Personnel Management
2nd semester, SY 2024 – 2025
4sh’25
6

Steps to Effective HR Performance Management


In general, the concept of performance management is a cycle consisting of three major
elements:
1. Performance Planning
→Preparing in advance is crucial.
→The first step is establishing goals and objectives, which will be the target employees
want to reach and will mark the desired state they wish to arrive to.
→Each individual’s goal should support and be aligned with organizational goals, and
the more detailed the performance planning is, the better chances are for the goals
to be achieved. This helps employees understand how and what to spend their time on,
and how to allocate their efforts between special assignments and on-job duties.
→After this step is performed successfully, both staff members and managers should be fully
aware of the timeframes, what is the expected outcome and how success will be measured.
2. Performance Coaching
→The core purpose of this step is to provide regular feedback on performance during
the whole year, and at the same time provide direction and support, and coach
employees to modify performance and increase proficiency, and increase skill where
necessary.

→Every employee is different– they may be working on different tasks, proficient in other
skills, and needs support in other areas. Therefore, managers need to be aware of the
different necessities of employees and coach them in a way that meets their personal
needs.
→This step is extremely important for empowering employees, maintaining an
encouraging dialogue with employees, and leveraging their success.
3. Performance Review
→Part of performance management is giving feedback.
→This should include both recognition of the employee’s strengths and discussion
about the challenges that require improvement and more coaching. After that is done,
new plans for further development can be built. Those plans should be clear and
measurable; they in fact represent the beginning of the whole process again.

Note that next-gen systems focus on real-time feedback on performance. Rather than
tie the performance discussion to the compensation discussion and do it annually (missing on
the opportunity to let employees reflect on performance in real time, course-correct and check
on a daily basis what is required of them) next-gen systems give real-time feedback.

How Performance Management Works?


►A formal performance management program helps managers and employees see
eye-to-eye about expectations, goals, and career progress, including how an individual's work
aligns with the company's overall vision.
►Performance management helps direct the funds allocated as a part of the company's
performance budget. Generally speaking, performance management views individuals in the
context of the broader workplace system. In theory, companies seek the absolute performance
standard, even though that is considered to be unattainable.
►Performance management programs use traditional tools such as setting and measuring
goals, objectives, and milestones. They also aim to define what effective individual
performance looks like and develop processes to measure it. However, instead of using the
traditional paradigm of year-end reviews, performance management turns every interaction with
an employee into an occasion to learn.
►Managers can use performance management tools to adjust workflow, recommend new
courses of action, and make other decisions that will help employees achieve their objectives.
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Major 7 – Introduction to Personnel Management
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In turn, this helps the company reach its goals and perform optimally. For example, the
manager of a sales department can give staff members target revenue volumes that they must
reach within a set time period. In a performance management system, along with the
numbers, the manager would offer guidance gauged to help the salespeople succeed.
►Focusing on continuous accountability creates a healthier, more transparent work
environment, and emphasis on regular meetings can improve overall communications.
Because performance management establishes concrete rules, everyone has a clearer
understanding of the expectations.
►When expectations are clear, the workplace is less stressful. Employees are not trying to
impress a manager by doing some random tasks, and managers aren't worried about
how to tell employees that they are not performing well. If the system is working, they
probably know it already.

How Can Managers Successfully Carry Out the Performance Management Process?
As you can tell, the process of performance management is rather long and has many
elements that need to be addressed. Furthermore, it needs to be done with every single
employee in the organization simultaneously, while each employee has different individual goals
and characteristics. Hence this process, in large organizations especially, might require using a
platform that supports the process and helps managers handle and operate it from beginning to
end.
HR Performance Management systems enable managers to track and monitor the
performance of individual employees as well as departments and the overall organization.

Benefits of Performance Management


Performance management offers numerous benefits for both employees and organizations.
A. For Organizations:
1. Goal Alignment:
→Performance management helps ensure that individual employee goals and efforts are
aligned with broader organizational objectives, increasing the likelihood of achieving
strategic milestones.
2. Increased Productivity:
→By clarifying expectations and providing regular feedback, performance management can
lead to more focused and productive work.
3. Data-Driven Decision Making:
→Performance data collected through the process can be used to make informed decisions
about resource allocation, training needs, and overall strategy.
4. Talent Retention:
→Recognizing and rewarding high performers, and providing opportunities for
development, can significantly reduce turnover and improve talent retention.
5. Competitive Advantage:
→A well-managed, high-performing workforce can give a company a significant edge in the
marketplace.
6. Improved Managerial Skills:
→Performance management provides managers with the tools and skills they need to
effectively lead, coach, and develop their teams.
B. For Employees:
1. Enhanced Engagement:
→Regular feedback, coaching, and opportunities for growth can boost employee
engagement and motivation.
2. Career Development:
→Performance management can help employees identify areas for improvement and
development, leading to a more fulfilling career path.

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Major 7 – Introduction to Personnel Management
2nd semester, SY 2024 – 2025
4sh’25
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3. Increased Confidence and Focus:


→When employees understand their expectations and receive proper support, they are
more likely to be confident, focused, and resilient.
4. Improved Work-Life Balance:
→By identifying ways to work smarter and more efficiently, performance management can
contribute to a better work-life balance.
5. Recognition and Appreciation:
→Recognizing and rewarding high performance can boost employee morale and
motivation.
6. Open Communication and Transparency:
→Performance management fosters a culture of open communication and transparency,
where employees feel comfortable providing feedback and discussing their goals.

Differences between Performance Management and Performance Appraisal


Performance management is a broader, ongoing process focused on aligning employee
performance with organizational goals through continuous feedback, coaching, and development,
while performance appraisal is a specific, periodic evaluation of past performance used to make
decisions like compensation and promotions.
Key Differences Summarized:
Feature Performance Management Performance Appraisal
Focus Ongoing improvement, future Past performance, specific evaluation
performance

Continuous improvement, aligning Assessing past performance against


individual goals with organizational established criteria and goals, providing
objectives, and fostering a culture feedback, and making decisions based
of feedback and development. on performance.
Timing Continuous Periodic

Occurs throughout the year, Typically occurs at the end of a


not just at the end of a period. defined period (e.g., annually
or bi-annually).
Activities Goal setting, feedback, coaching, Evaluation, rating, feedback
development
Includes goal setting, regular Includes formal evaluations, rating
feedback, coaching, development scales, and feedback sessions.
planning, and ongoing monitoring
of performance.
Purpose Align performance with Make decisions based on past
organizational goals, drive performance, provide feedback
continuous improvement

To improve employee performance, To determine how well an employee


enhance engagement, and drive has met expectations, identify strengths
organizational success. and areas for improvement, and make
decisions about compensation,
promotions, and training.
Example A manager regularly checks in with A manager conducts a formal
an employee, provides feedback on performance review with an employee
their progress, and helps them at the end of the year, discussing their
develop new skills to meet their accomplishments, areas for
goals. improvement, and setting goals for the
next year

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Major 7 – Introduction to Personnel Management
2nd semester, SY 2024 – 2025
4sh’25
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II. Performance Appraisal


→“performance appraisal” refers to a structured and regular review of an employee's job
performance, assessing how well their work aligns with the set job criteria. This process
identifies strengths, areas for improvement, and the employee's overall value to the
organization, while also planning for future growth and development.
→ is the systematic process organizations use to evaluate and assess employee job
performance.
→are also called performance evaluations, performance reviews, development
discussions, or employee appraisals.

If you conduct a successful performance appraisal, you can get a handle on what the
employee does best and identify areas that require improvement. Appraisals also come in
handy for deciding how to fill new positions in the company structure with existing
employees.

Types of Performance Appraisals


Performance appraisals can be broken down into four distinct significant types:
1. 360-Degree Appraisal
→The manager gathers information on the employee’s performance, typically by
questionnaire, from supervisors, co-workers, group members, and self-assessment.
2. Negotiated Appraisal
→This type of appraisal uses a mediator to help evaluate the employee’s performance, with
a
greater emphasis on the better parts of the employee’s performance.
3. Peer Assessment
→The team members, workgroup, and co-workers are responsible for rating the
employee’s
performance.
4. Self-Assessment
→The employees rate themselves in categories such as work behavior, attitude, and job
performance.

Note that some organizations use several appraisal types during the same review. For
instance, a manager could consult with the employee’s peers and assign a self-
assessment to the employee. It doesn’t have to be a case of either/or.

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Major 7 – Introduction to Personnel Management
2nd semester, SY 2024 – 2025
4sh’25
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How Performance Appraisals Work?


Human resources (HR) departments typically create performance appraisals as a tool for
employees to advance in their careers. They give people feedback on how well they are doing in
their jobs, ensuring that they are managing and achieving the goals set for them and assisting
them if they fall short.
Performance evaluations assist in determining how to distribute a company's limited budget for
giving out incentives, such as raises and bonuses. In addition, they give businesses a tool to
identify the workers who have made the most contributions to their expansion so that they may
appropriately reward their top performers.
Performance reviews also assist employees and their managers in identifying areas for
improvement and career advancement, as well as in developing a strategy for the employee's
development through extra training and more responsibility.

Methods of Performance Appraisals


→Performance appraisals come in many forms.
→Managers and human resources staff responsible for these appraisals need to choose the best
methods based on the size of their organization and what sorts of responsibilities the employees
fulfill.
1. 720-Degree Feedback
→You could say that this method doubles what you would get from the 360-degree feedback!
→The 720-degree feedback method collects information not only from within the
organization but also from the outside, from customers, investors, suppliers, and
other financial-related groups.
2. The Assessment Center Method
→This method consists of exercises conducted at the company's designated
assessment center, including computer simulations, discussions, role-playing, and other
methods.
→Employees are evaluated based on communication skills, confidence, emotional
intelligence, mental alertness, and administrative abilities. The rater observes the
proceedings and then evaluates the employee's performance at the end.
3. Behaviorally Anchored Rating Scale (BARS)
→This appraisal measures the employee’s performance by comparing it with specific
established behavior examples. Each example has a rating to help collect the data.
4. Checklist Method
→This simple method consists of a checklist with a series of questions that have yes/no
answers for different traits.
5. Critical Incidents Method
→Critical incidents could be good or bad. In either case, the supervisor takes the
employee’s critical behavior into account.
6. Customer/Client Reviews
→This method fits best for employees who offer goods and services to customers.
→The manager asks clients and customers for feedback, especially how they perceive the
employee and, by extension, the business.
7. Field Review Method
→An HR department or corporate office representative conducts the employee's performance
evaluation.
8. Forced Choice Method
→This method is usually a series of prepared True/False questions.
9. General Performance Appraisal
→This method involves continuous interaction between the manager and the employee,
including setting goals and seeing how they are met.
10. Human Resource Accounting Method
→Alternately called the “accounting method” or “cost accounting method,” this method
looks at the monetary value the employee brings to the company. It also includes the
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Major 7 – Introduction to Personnel Management
2nd semester, SY 2024 – 2025
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company’s cost to retain the employee.


11. Management By Objective (MBO)
→This process involves the employee and manager working as a team to identify goals
for the former to work on. Once the goals are established, both parties discuss the
progress the employee is making to meet those goals.
→This process concludes with the manager evaluating whether the employee achieved
the goal.
12. Performance Tests and Observations
→This method consists of an oral test that measures employees' skills and knowledge in their
respective fields. Sometimes, the tester poses a challenge to the employee and has them
demonstrate their skills in solving the problem.
13. Project Evaluation Review
→This method involves appraising team members at the end of every project, not the
end of the business year.
14. Rating Scales
→These ratings measure dependability, initiative, attitude, etc., ranging from Excellent
to Poor or some similar scale. These results are used to calculate the employee's overall
performance.

Aims of Performance Appraisal


☻Provide helpful information to help make decisions regarding transfers, promotions,
terminations, etc.
☻Supply the necessary data to identify employee training and development program
requirements.
☻Help make confirmation/acceptance decisions regarding employees who have completed a
probationary period.
☻Help make decisions regarding raising an employee's salary, offering incentives, or changing
variable pay.
☻Clarify expectations and facilitate communication between managers and subordinates.
☻Help employees realize their whole potential performance level.
☻Collect relevant employee data and keep the records for various future organizational
purposes.

Uses of Performance Appraisals


A performance appraisal has two purposes:
1. to aid the organization's assessment of the value and productivity that different
employees bring and
2. to aid the company’s employees in growing in their respective jobs.
A. Company Benefit (Organization Benefit)
→Employee evaluations can influence an organization's performance.
→They enable firms to:
☻Identify areas where management may enhance working circumstances in order to raise
productivity and work quality.
☻They give insight into how people are contributing.
☻Deal with behavioral problems before they affect the efficiency of your department.
☻Assist employees in their skills and career development.
☻Enhance strategic decision-making in scenarios that call for layoffs, succession planning,
or internally filling available posts.
☻Motivate employees to contribute more by recognizing their talents and skills.
B. Employee Benefit
→Performance reviews should benefit the employees who get them.
→The knowledge obtained by evaluating and debating an employee's performance can help
you:
☻Acknowledge and thank an employee for their accomplishments and contributions.
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Major 7 – Introduction to Personnel Management
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☻Be aware of the chance for a promotion or bonus.


☻Recognize and advocate for the need for extra education or training to advance one's
profession.
☻Identify the precise areas where skills might be strengthened.
☻Encourage an employee to feel invested in and active in their professional development.
☻A candid discussion of a worker's long-term objectives.

Benefits of Performance Appraisals


→Here is a list of advantages that performance appraisals bring to the table:
☻They help supervisors plan promotions for solid, performing employees and dismiss
inefficient workers.
☻They help the organization decide how to compensate the employees best. Also,
companies can use performance appraisal records to help determine extra benefits and
allowances.
☻They can call attention to employee weaknesses and help set up training programs
in-house.
☻The performance appraisals can help make changes in the selection process which
inevitably help hire better employees.
☻Performance reviews effectively communicate the employee's performance status and
provide a great way to give feedback on how the employee is doing at their job.
☻Performance evaluations are a great motivational tool, providing a snapshot of the
employee's efficiency. This snapshot, in turn, can incentivize the individual to improve their
performance.

Suggested Tips and Techniques For Performance Appraisals


→Here are three valuable tips and techniques to maximize the effectiveness of your
performance appeals.
1. Document your appraisal sessions:
►Document your employee performance appraisal meetings and store the notes in your
go-to database system. By documenting and keeping these notes, you will have easy
access when you need them to make decisions about an employee or conduct follow-up
meetings.
2. Use outlines:
►Create an outline template to be used for all your company’s performance appraisals.
►This practice promotes a consistent company-wide review structure and helps employees
better prepare for the appraisal meeting.
3. Check in with your employees more frequently:
►Nothing is more dispiriting and frustrating for an employee who performs their jobs in a
particular way, only to be told at the end of the year that they’ve been doing it all wrong
and it will affect their performance reviews.
►Teams need to know if they’re doing well and on the right track, so consider conducting
performance appraisals at shorter intervals.

When Should a Performance Appraisal Take Place?


►The process of performance management always continues.
►Managers are urged to meet staff members to set goals, track development, and offer yearly
feedback.
►Although they can be carried out at any time, they usually happen annually, bi-annually, or
quarterly.

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Major 7 – Introduction to Personnel Management
2nd semester, SY 2024 – 2025
4sh’25
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Performance Metrics and KPIs


►Performance metrics provide broad data on business activities.
►KPIs (Key Performance Indicators) are specific, strategic metrics that measure progress
towards key business goals.
Key Differences:
Features Performance Metrics Key Performance Indicators (KPIs)
Definition Performance metrics are KPIs are specific, strategic metrics
quantifiable measures that assess that track progress towards
the success of a business or a achieving key business objectives.
specific element of a business.
Focus They provide insights into the They are the measures that have
overall performance of an the most impact on moving an
organization, its processes, and its organization towards its vision.
activities.

Broad, encompassing various Specific, focused on key business


aspects of business performance objectives
Scope Operational or tactical Strategic
Purpose To measure performance or progress To
for measure progress towards
specific activities achieving key business goals

KPIs help organizations track


progress, identify areas for
improvement, and make data-driven
decisions.
Examples Customer retention rate Increase in sales revenue
Employee efficiency Improvement in customer satisfaction
Inventory turnover Reduction in customer churn
Net Promoter Score (NPS) Increase in market share
Improvement in employee engagement
Overtime rate
Increase in website traffic
Capacity utilization Improvement in manufacturing efficiency
Cash conversion cycle Reduction in operational costs
Click-through rate (CTR) Increase in new customer acquisition
Cost-per-click (CPC)
Profit per employee
Asset turnover

In Human Resource Management (HRM), feedback mechanisms are structured


processes that facilitate the exchange of information about performance, behaviors, and
workplace experiences, aiming to improve individual and organizational performance, foster
open communication, and address issues proactively.

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Major 7 – Introduction to Personnel Management
2nd semester, SY 2024 – 2025
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III. Feedback Mechanisms

Feedback Mechanism
→is a system or process used to gather, analyze, and respond to feedback from employees.

Purpose:
1. To improve individual and organizational performance.
2. To foster open communication and a positive work environment.
3. To address issues proactively and ensure continuous improvement.
4. To help employees and managers understand what's working well and what needs
improvement.

Examples:
1. Performance Reviews:
→Regular evaluations of employee performance, including strengths, weaknesses, and areas
for development.
2. One-on-One Meetings:
→Regular check-ins between managers and employees to discuss performance, goals, and
concerns.
3. Surveys:
→Anonymous or confidential surveys to gather employee feedback on various aspects of the
workplace.
4. Suggestion Boxes:
→A platform for employees to anonymously share ideas and suggestions for improvement.
5. Real-time Feedback Tools:
→Tools that allow for immediate feedback and recognition of employee performance.
6. 360-Degree Feedback:
→Gathering feedback from multiple sources (managers, peers, subordinates) to provide a
comprehensive view of an employee's performance.
7. Employee Engagement Surveys:
→Surveys designed to assess employee satisfaction, engagement, and morale.
8. Training Needs Assessments:
→Gathering feedback to identify training needs and improve employee skills and knowledge.
9. Town Hall Meetings:
→Open forums where employees can share their thoughts and concerns with senior
management.

________________________________________________________________________________________________________________
Major 7 – Introduction to Personnel Management
2nd semester, SY 2024 – 2025
4sh’25
15

Benefits of Effective Feedback Mechanisms:


1. Improved Performance:
→By providing constructive feedback, employees can identify areas for improvement and
develop their skills.
2. Enhanced Communication:
→Feedback mechanisms promote open and honest communication between employees and
managers.
3. Increased Employee Engagement:
→When employees feel heard and valued, they are more likely to be engaged and motivated.
4. Better Decision-Making:
→Feedback provides valuable insights that can inform decision-making and improve
organizational outcomes.
5. Continuous Improvement:
→Feedback mechanisms help organizations identify areas for improvement and implement
changes to enhance performance.
6. Stronger Employee Relationships:
→Regular and constructive feedback can strengthen relationships between employees and
managers.
7. Reduced Turnover:
→When employees feel supported and valued, they are more likely to stay with the organization.

ANALYSIS:
Answer the following:
1. Why there is a need to conduct regular performance appraisals in an organization?
2. Who must conduct the performance appraisals and why?
3. How important is the feedback mechanism in an organization?

ASSESSMENT:
Answer the following questions:
1. Define performance management.
2. Discuss some important takeaways of performance management.
3. Determine the importance of performance management.
4. Discover the human resource’s roles in performance management.
5. Discuss the performance management process or cycle.
6. Discuss the steps to effective human resource performance management.
7. Explain how performance management works.
8. Explain how can manager successfully carry out the performance management
process;
9. Discuss the benefits of performance management.
10. Determine the differences between performance management and performance
appraisal.
11. Define performance appraisal.
12. Differentiate the types of performance appraisals.
13. Discuss how performance appraisal works.
14. Determine the methods of performance appraisal.
15. Discuss the aims of performance appraisals.
16. Discuss the uses of performance appraisals.
17. Discuss the benefits of performance appraisals.
18. Discuss some suggested tips and techniques for performance appraisals.
19. Determine when should a performance appraisal take place.
20. Differentiate performance metrics from key performance indicators.
________________________________________________________________________________________________________________
Major 7 – Introduction to Personnel Management
2nd semester, SY 2024 – 2025
4sh’25
16

21. Define feedback mechanisms.


22. Discuss the purposes of feedback mechanism.
23. Discover some examples of feedback mechanism.
24. Discuss the benefits of effective feedback mechanism.

☺CONCLUSION:
Effective performance management is crucial for both organizational success and
individual employee development within human resource management. By implementing
a structured and continuous performance management system, organizations can
enhance employee engagement, improve productivity, and drive innovation. This
includes setting clear goals, providing regular feedback, recognizing achievements, and
offering opportunities for growth. Ultimately, a well-executed performance management
process empowers employees to reach their full potential, leading to a more motivated
and productive workforce.

REFERENCES:
The First – Time Manager. Jim McCormick.2018
The Hiring Process. Amanda J. Painter.2022
Human Resource Management. Global Edition. Joseph Martocchio.2018
Fundamentals of Human Resource Management. Robert N. Lassier. 2019
Job & Work Analysis. Methods, Research, & Application for Human Resource
Management. Frederick P.p. Morgeson. 2019
Keeping the Human in Human Resources. Vaso Perimenis. 2020

ONLINE SOURCES:
https://www.spiceworks.com/hr/workforce-management/articles/what-is-performance-
management/

https://www.investopedia.com/terms/p/performance-management.asp

https://hr.berkeley.edu/hr-network/central-guide-managing-hr/managing-hr/managing-
successfully/performance-management/introduction

https://centrical.com/resources/hr-performance-management/

https://www.simplilearn.com/what-is-performance-appraisal-methods-process-article

________________________________________________________________________________________________________________
Major 7 – Introduction to Personnel Management
2nd semester, SY 2024 – 2025
4sh’25
17

________________________________________________________________________________________________________________
Major 7 – Introduction to Personnel Management
2nd semester, SY 2024 – 2025
4sh’25
18

________________________________________________________________________________________________________________
Major 7 – Introduction to Personnel Management
2nd semester, SY 2024 – 2025
4sh’25

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