Performance Management Strategies

What is Performance Management & What is it used for (6)?

the process used to evaluate and improve both individual and business performance. used to make decisions about employee performance such as remuneration, promotion, transfers, disciplinary procedures, training/ development needs, termination

What is Management by Objectives?

where the managers and employees agree on a set of goals for the employee and performance is assessed based on how well these goals are achieved

What are the steps of Management by Objectives? (5)

individual and employee goals are negotiated, regular monitoring of progress, performance feedback, performance appraisal on achievement of goals, business objectives are clearly defined

Advantages (3) and Disadvantages (3) of Management by Objectives

committed employees, expectations are clear, objectives are aligned. time consuming, goal setting can be challenging, failing to meet objectives harms self-esteem

What is Performance Appraisal and what does it involved (4)?

a formal evaluation of how well an employee is performing in their role. involves reviewing goals, providing feedback, developing plan for improvement, setting new goals

Advantages (3) and Disadvantages (3) of Performance Appraisal

employees receive feedback, identify areas for growth, may identify employees in line for a promotion. can be time consuming, evaluation can be subjective, causes stress

What is the Essay Method?

where managers keep a journal on each employee, detailing job performance aspects such as customer service, sales and personal presentation

What is the Critical Incident Method?

manager only records exceptionally good or bad aspects of performance

What is the Comparison Method?

each employee is ranked

What is Employee Self-Evaluation?

where employees assess their own performance against pre-determined goals

Advantages (2) and Disadvantages (3) of Self-Evaluation

employees feel sense of ownership, provides a base for more meaningful feedback from managers. evaluation may be objective, requires ongoing documentation

What is Employee Observations?

where managers view the employee while they work

Advantages (3) and Disadvantages (3) of Employee Observation

more objective information, using 360 degree feedback, identify strengths and weaknesses. stressful for employees, inaccurate if one-off, time-consuming