Last Updated 30 Jun 2021

The Process of Performance Management

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“Performance Management can be defined as a systematic process for improving organizational performance by developing the performance of individuals and team.”


Performance Management may be defined by as a feedback mechanism for the evaluation of employee s past performance. This may be a five-minute informational discussion between employees and their supervisors’ or more elaborate, several week processes involving many specific steps:

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  • Employees generally see any such evaluation as having some direct effect on their work lives.
  • Performance Management led to increased pay, a promotion development areas for which the employees need some training.
  • As a result, any evaluation of emotionally charged event.
  • Performance Management is no longer a simple process. It is now more difficult to perform one while simultaneously focusing on key job activities.
  • Performance evaluation conveys to employees how well they have performance on established goals.
  • It also desirable to have these goals and performance measures mutually set between the employ and the supervisor.

“Without proper two way feedback about an employee’s effort and its effect on performance, we run the risk of decreasing his or her motivation”

Links Between Individual, Team and Organizational Objectives

Individual and Team

Individuals are the constituting body of a team. The team is more than a group. It has common objectives and accountability and may be setup by the organization under the supervision or coaching of a team leader.

“A team leader is a small number of people with complementary skills who are committed to a common purpose, performance, goals and approach, for which they hold themselves mutually accountable.”

(Katzenbach and Smith)

Team working may be used for:

Individuals, Team and Organizational Objectives

Meeting team objectives can be more difficult than meeting individual objectives, as more people need to be involved in the process. More people mean more ideas, more skills, more knowledge, and more experience collective efforts to see the organizational objectives as a success. These potential benefits needs careful management of the process agreeing team objectives in a worth.

Organizational objectives should be SMART

  • S Short
  • M Measurable
  • A Accurate
  • R Reliable
  • T Time Manageable

In that situation individuals and team will put their best efforts to meet the SMART goals.

Evaluating Teams

  • Team effectiveness includes:
  • Task Performance:
  • Fulfillment of task and organizational goals.
  • Team Functioning:
  • Constructive maintained of team working managing the demands of team, roles and process.
  • Team Member Satisfaction:
  • Fulfillment of individual development and relationship needs.

Selecting and Agreeing Individual and Team Objectives

It can be more difficult to agree team objectives than individual objectives, as more people desire to be involved in the process. However, more people also means more ideas; more experience, skills and knowledge tremendous support within the team; and a combined determination to have objectives through successfully. All these benefits make the useful management of the process of agreeing team objectives worthwhile. Training activity gives the team leader to a method of agreeing on team objectives that is based on to get maximum input and commitment. The team leader can utilize the training activity to agree real-life team objectives by replacing the examples provided with their own material.

I am introducing the training process by telling the participants that they are ready to spend some time focusing on SMART objectives in the context of setting team objectives then I put pressure on the importance of agreeing rather than imposing objectives. Next, I conversant about how difficulties in agreeing individuals objectives. I set a step by step method that can be used when agreeing team objectives, than run either or both of two exercises where objectives are made for a particular area.

Individual and Team Responsibility in Achieving Objectives

We can define a team as a group of people who are all focused to achieve a common objective. In the team, every member may know his/her value within the team, and they can work towards the individual objective they have been given when all the smaller objectives get together, they become a greater common objective.A team can work well with great efficiency when the team is efficient. It’s not important to provide for a team where every single person has the essential team spirit is more necessary for the team to be a real team in every possible way. Individual members should be fully committed to their personal objective the greater common objective of the team can be achieved if the members of the team concentrate on their “bit” and deny the rest to those who are a salary commensurate with such responsibilities.Team members should know to appreciate how the pooling of individuals talents and to the skills and the recourses can strengthen the team and achieve better results. There should be importance of individuals’ members and importance should be accepted by the team leaders and managers. If a team worker feels that he is a valued person of his team, he has the right team spirit, and they will be much more easily persuaded of its importance.

  • They are agreed to work interdependently towards both personal and team goals with mutual support.
  • Members of the team collaborate together.
  • They are agreed to use their talent and experience for organizational objectives.
  • They respect and listen to every person’s point of view.
  • They participant equally in decision making.

Creating an Environment of Trust and Support With Others

Environment of Trust and Support

Different skills are used in interactions and relationships between two or more people which are as follows:

  • Building a rapport

Being in tune with the other people, which draws them into a relationship.

  • Building trust and respect

So that relationship is maintained and cooperation facilitated.

  • Managing conflict

Managing conflict in the relationship to preserve it.

  • Persuading or influencing another person

Persuading or influencing another person, to do what you want them to do or to share your beliefs

  • Negotiating

It means to compromise or a mutually acceptable solutions to problem.

  • Communicating assertively

It includes to uphold your rights and get your needs met.

  • Communicating informatively

Through this you give timely and relevant information

  • Communicating supportively

It is usedto encourage others and get their commitment.

Why Trust and Support are important?

Understand and manage the roles, relationships, attitudes and perceptions.
Communicate clearly with the other people.
Achieve your aims.

Importance of Trust and support in an organization

In business context, trust and support are important for processes such as:

  • Motivation

It means persuading and inspiring for committee performance.

  • Team working and Team Building

It helps in building trust, encouraging communications and managing conflict.

  • Customer Care

We can win trust, exchanging information and managing conflict.

  • Human Resource Management

We can use it for negotiating, interviewing conducting approvals and managing disciplinary and grievance procedures.

  • Negotiation

It means maintaining relationships by acceptable solutions.

  • Workload management

It has being able to delegate effectively, negotiating assistance and saying “no” assertively flexibility.

  • Career Development

It provides demonstrating networking, communication and leadership skills, essential for management roles.

Evaluating and Assessing Individual and Team Performance Against Objective

Following points explain the individual and team performance against objectives:

Written Essays

In a written essay, an evaluator appraises an employee’s performances through a written description of an employee’s strength and weaknesses, past performance, and potential. In addition, the evaluators make suggestions for improvement.

Critical Incidents

Using critical incidents, an evaluator appraises an employee’s performances by focusing on critical behaviors that separate effective from ineffective job performance. The appraisers writes down anecdotes that describe what an employee did that was especially effective or ineffective. The key here is that only specific behaviors not vaguely define personality traits, are cited.

Graphic Rating Scales

One of the most popular performance appraisal methods is graphical rating scales. This method list a set of performance factors such as quantity and quality of work, job knowledge, cooperation, loyalty, attendance, honesty and initiative. The evaluator goes down the list and rates the employee on each factor using an incremental scale. For instance, a factor such as job knowledge might be rated from 1 to 5.
Behaviorally Anchored Rating Scales:

Another popular approach is behaviorally anchored rating scales, which combine elements from the critical incident and graphing rating scale approaches. The appraiser rates an employee according to items along a numerical scale, but the items are the examples of actual job behaviors rather than general descriptions or traits.

Methods of Providing Feedback to Individuals and Teams on Performance

Providing Feedback to Individuals and Team

Feedback gives information to others about their performance, behaviors and results against goals.

Types of Feedback

Motivational Feedback

Rewards reinforce positive behaviors by praise and recognition. The purpose is to motivate them.

Developmental Feedback

Informing what to be improved and how to improve Its purpose is to develop learning.

Constructive Feedback

Supports development. This is not giving only positive feedback but negative feedback as well when there are shortcomings.

Constructive Feedback Requires


Assertivance is preparing to face difficult situation.

Respect for others

While developing the individuals, they should be managing respectfully.


Effective feedback is a complex interpersonal skill

Tips for Constructive Feedback

Choose the right time

It is necessary that choose the right time close to the event. Appropriate time should be chosen for sensitive matters e.g. conflict handing situation.

Start with positives

People accept criticism if balanced with positive aspects

Focus on the behavior

Rather than personality

Be accurate

Avoid exaggeration for instance instance instead of saying that you are always late, it is better to say you were late on two occasions.

Balance negative with positive

Close your discussion with positive encouragement.

Benefits of Feedback

  • Positive feedback is motivational.
  • Negative feedback is developmental.
  • Feedback helps employees to understand and adjust their performance.
  • Feedback enables us to plan and direct our efforts.
  • Feedback enables us to understand the purpose.

Causes of Conflict and Strategies to Minimize or Prevent Conflict

When I am using the term Conflict, I am referring to perceived incompatible differences resulting in some form of interference or opposition. Whether the differences are real is irrelevant. If people in a group perceive that differences exit, then there is conflict.

Conflict is a natural outcome in any group and need not be negative but rather has potential to be a positive force in contributing to a group’s performance.

The very major proposes that not only can conflict be a positive forced in a group but also that some conflict is necessary for a group to perform effectively.

It is also necessary that all conflicts are good and best. Some conflicts are seen as supporting te goals of the work group and improving its performance.

Types of Conflict

There are mainly three types of conflict which are as follows:

Task Conflict

Task Conflict relates to the content and goals of the work.

Relationship Conflict

Relationship conflict focuses on interpersonal relationships.

Process Conflict

Process Conflict refers to how the work gets done.

Systems for Performance Assessment for Individuals or Teams

A performance evaluation system would be remiss if it did not concern itself with the legal aspects of employee performance. Suppose a supervisor has decided to terminate an employee. Although the supervisor cites performance matters as the reason for the discharge, a review of the employee’s recent performance appraisals indicates that performance was evaluated as satisfactory for the past two review periods. Accordingly, unless this employee’s performance significantly decreased, personal records do not support the supervisor’s decision.

Performance Improvement Cycle

The performance improvement cycle can be explained below:

The performance improvement cycle is given below:

In this diagram, the first circle shows following terms:

  • Use Behavior-Based Measures:
  • Combine Absolute and Relative Standards
  • Providing Ongoing Feedback
  • Use Multiple Raters
  • Rate Selectively
  • Train appraisers

Indicators of poor performance

  • Bad Result
  • Less effectiveness:
  • Not able to meet the organizational objectives
  • Employees absentees
  • Dissatisfaction of the employee
  • Not able to work in team

Supporting performance improvement

Probability one of the most complex function of performance management is the design and implementation. International compensation packages in the United States generally used the “balanced _sheet approach, ’’ which considers four factors: base pay, differentials, incentives and assistance programs.


Ideally, this equals the pay of employees in comparable jobs at home, but the range of pay scales in most countries is far narrower than in the United States. Thus, whereas a middle manager in a U.S. factory might earn $75,000 a year, the same manager in Germany might earn the equivalent of $110,000. However, the U.S higher_ level executive might earn $500,000 and her counterpart in Germany only the equivalent of $150,000. How can human resource managers satisfy the middle manager who earns a third less than the counterpart where he works, while also satisfying the German executive who earns less than her U.S. counterpart In addition to fairness among overseas employees, foreign currencies and laws must be considered. Should expatriates be paid in U.S. dollars or the local currency values_ or a combination of the two

  • How does the organization deal with changes in currency values
  • Do restrictions apply to either bringing in or taking out dollars or the local currency
  • If so, how are savings handledShould salaries increases follow the same standards as those established for the domestic employees or local standards
  • Does the expatriate pay U.S. or foreign income taxes

The U.S. State Department has negotiated agreements with every country to determine where income will be taxed, but the protection of foreign tax rates creates new administration for the organization.


The cost of living fluctuates around the world, and the value of the dollar to foreign currencies affects prices. For example, if a gallon of regular unleaded gasoline in the United States where $1.25; in England is might be equivalent to $4.83; and in Hong Kong, 5.24, to publishes a regular updates by most multinational corporations for providing differentials to maintain the standards of living the expatriate would enjoy if he or she were home.


Not all employees are willing to leave family, friends and the comfort of home support system for long periods of time. Thus, mobility inducement to go on foreign assignment is regularly offered. These may include monetary payments or services, such as housing, car, chauffeur, and other incentives. But companies must decide how a hardship premium should be paid. As a person of salary In a lump sum paymentIn home or foreign currency In forgiven housing is provided, what happens to the vacant home back in the US or to the family housing situation when they eventually returnIncentives required carefully planning before, during, and after the overseas assignment.

Assistance Programs

As with any relation, the overseas transfer requires much expenditure for the employee’s family. Some assistance programs commonly offered by multinational corporations includes household goods , shipping and storage , major appliances; legal clearance for pets and their shipment; home sale protection living expensive ,travel and annual home leaves, special return leaves . Club membership and security.

Disciplinary and grievance procedures


Condition of orderliness, in which members behave sensibly according to the standards of acceptable behavior and goals of the organization.

(i) Positive Discipline.

Procedures designers so that employees have no option than to act in desired manner.

(ii) Negative Discipline.

Sanctions designed to make people behave in desirable way. Action can be Punitive (punishment)Deterrent (warning not to do) Reformative (it will not happen again)

STRICT DICSIPLINE. Types of disciplinary situations that managers have to face are as follows:

  • Sleeping on duty
  • Threatening co-workers
  • Disobeying
  • Take drugs
  • Guilty
  • Destroy company’s image
  • Embezzlement
  • Lying
  • Safety procedures ignored

Disciplinary Action

  • The informal talk minor problem, the employee has clear records. Friendly talk at this level to inform about standards
  • Oral warning employees repeated violation, emphasizes the undesirability and warning for the formal, written warning
  • Written warning becomes permanent record of the employee.
  • Lay off or suspension repeated violations lead to this can go for days or weeks.
  • Dismissal drastic step on serious offence. Expensive for the organization

Managing disclipnary Situation


Disciplary actions should be taken speedily. Avoid haste and on the spot decisions.

Advance Warning:

Employee should be informed in advanced about rules and regulations


Each time it occurs, action should be taken. Inconsistency lowers the morale.


Action should not be based on personality.


Action should be taken in private to avoid conflict and humiliation.


Actions to be based on investigated facts. Opportunities should be given to defend him or her.

The role of the manager in both a disciplinary and a grievance procedure

Describing what managers do is not easy or simple. Just as no two organizations are alike, no two manager’s jobs are alike. Despite this fact, management researchers have, after many years of study, developed three specific categorization schemes to describe what managers do: functions, roles and skills. In this section, we will examine each of these approaches and take a look at how manager’s job is changing

Management Functions

According to the functions approach, managers perform certain activities as they efficiently and effectively coordinate the work of others. What are these activities or function?

All managers perform five functions:

Let’s briefly look at each function.

1. Planning:

If you have no particular destination in mind, then you take any road. However, if you have someplace in particular you want to go, you have got to plan the best way to get there. Because organizations exist to achieve some particular purpose, someone must clearly define that purpose and the means for its achievement. Management is that someone. As managers engage in planning , they define goals, established strategies for achieving those goals and develop plans to integrate and coordinate activities.

2. Organizing

Managers are responsible for arranging and structuring work to accomplish the organizational goals. We call this function organizing. When manager organize, they determine what task are to be done. Who is to do them, how the task are to be grouped, who reports to whom, and where decisions are to be made;

3. Leading

Every organization includes people, and a manager’s job is to work with an through people to accomplish organizational goals. This is the leading function. When managers motivate subordinates, help resolve work group conflicts, influence, individuals or teams as they work, select the most effective communication channel, or deal in any way with employee behavior issues, they are leading.

4. Controlling

The final management function is controlling. After the goals and plans are set, the task and structural arrangement determine d, and the people hired, trained and motivated, there has to be some evaluation of whether things are going on planned. To ensure that goals are being met and tat work is being completed as it should be, managers must monitor and evaluate performance. Actual performance must be compared with the previously set goals. If there are significant deviations. It’s management’s job to get work performance back on track. This process of monitoring, comparing and correcting is what we mean by the controlling function.

The Key Aspects of Legislation That Applies to an Organization’s Disciplinary and Grievance Procedure

Drive Leaders exhibit a high effort level. They have a relatively high resire for achievement; they are ambitious; they have a lot of energy; they are tirelessly persistent in their activities; and they show initiative.

Desire to lead

Leaders have a strong desire to influence and lead others. They demonstrate the willingness to take responsibility.

Honesty and integrity

Leaders built trusting relationships between themselves and follower by being truthful or no deceitful and by showing high consistency between word and deed.


Followers look to leaders for an absence of self-doubt. Leaders, therefore, need to show self-confidence in order to convince follower of the rightness of their goals and decisions.


Leader need to be intelligent enough together, synthesize and interpret large amounts of information, and they need to be able to create visions, solve problems and make correct decisions.

Job Relevant Knowledge

Effect leaders have degree of knowledge about the company, industry and technical matters. In depth knowledge allows leaders to make well-informed decisions and to understand the implications of those decisions

Leaders Are Energetic

Leaders are energetic lively people. They are sociable, assertive and rarely withdrawn.

Reflective Statement

Simply I can say that Performance management systems involve different activities, far more than simply reviewing what has employee has done. These systems must fulfill several purposes. Moreover, they are often constrained by difficulties in how they operate.


  1. By (Michael Armstrong) Book name: Performance Management, 3rd Edition
    Katzenbach and Smith
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