Definition Of Performance Management

In today's working environment, competition keeps on increasing. Many of the staff are well trained and therefore, they are simply entrusted higher tasks. Within the work place, all employees receive their part of work plus they must meet up with the requirements expected from them. As such, many work places have something called Performance Management System, which is actually a scheme to stimulate workers to offer their finest performance for they'll be evaluated and also be compensated for their effort. Moreover in public areas industries, such initiatives are well known to burst the performance of staffs. Therefore, the PMS lies at the heart of the Individuals Reference Management of general public sectors.

2. 2 Description of Performance Management

Performance Management (PM) contains activities that ensure that goals are constantly being found in a powerful manner. It can even be defined as a tool to apply strategy. It could be useful in connecting goal, objectives, strengthen specific responsibility to meet these goals. Performance Management is a systematic process where work place will involve its employees in increasing the work success by focusing them on reaching the organization mission and tactical goals.

Performance Management can even be defined as a continuing procedure for communicating and illustrate job obligations, priorities and performance prospects in order to ensure mutual understanding between higher-level management and employees. It promotes a development in the management which enables them to obtain responses and promote teamwork. It focus more on communication and adding value by endorsing better job performance and encouraging skill development. Performance Management requires clarifying the work duties, defining performance criteria and documenting, evaluating and talking about performance with each employee. (Indiana College or university, 24. 02. 05)

Figure 1: Performance Management Process

Source: (Indiana University, 2005)

"Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their expertise. Performance management is a whole work system that starts whenever a job is thought as needed. " (Susan M. Heathfield, 2012)

Another classification of Performance Management is "You can achieve performance levels once thought unattainable but only when managers and workers set up clear lines of communication and know how their jobs donate to the goals of both themselves and the task place. Performance Management is the complete guidebook how to establish a communication system to get top performance and value from each staff. It contributes to how to perform goals- concentrated performance, planning meetings and performance appraisals and foster a true dedication to success within each worker. Performance Management will benefit the worker, the supervisor ant the work place itself. (McGraw-Hill Professional, 1999)

2. 3 How can Performance Management System work?

Performance Management is the organized process where employees and member of the group work in increasing the governmental efficiency in the achievement of quest and goals. Consequently the staff Performance Management carries a working pattern as shown below:

2. 3. 1 Performance Management Cycle

Figure 2: PM cycle

Source: (OPM. gov)


In an effective work place, work is organized out in advance. Planning means establishing performance anticipations and goals for group and people to route their initiatives toward obtaining the organizational objectives. It is important to get employees involved in planning process as this help them to comprehend the goals and therefore what must be done, why it requires to be achieved and exactly how well it should be done.

The requirements for planning employees' performance include establishing the elements and expectations of their performance appraisal plans. It should be measurable, understandable, verifiable, equitable and possible. Employee performance ideas should be flexible to adapt to any changes in goals and work requirements.


Projects are monitored continually in an effective firm. Monitoring means regularly calculating performance and providing ongoing opinions to employees and team members on their improvement toward getting their goals. The regulatory requirements to keep an eye on performance include performing improvement reviews with the employees where in reality their performance is likened against their factor and standard. Continuing monitoring provides chance to check how well employees are meeting predetermined standards and also to make changes to unrealistic and problematic criteria. And having a continuous monitoring really helps to identify undesirable performance at any time during the appraisal period and also assist with address such performance.


Developing means increasing the capability to perform through training, giving assignments that introduce new skills or high levels of responsibility, bettering work operations or other methods. Thus, in an effective organization employee developmental needs are examined and tackled. Providing employees with training and developmental opportunities encourage good performance, strengthens job related skills and competencies and helps employees match changes at work.


From time to time, summarizing employee performance is important. This can help in taking a look at and evaluating performance more than a time period or among employees. This enables to learn who the best performer is.

Rating can hence be thought as evaluating worker or group performance against the elements and expectations in an employee's performance plan and assigning a summary rating record. The ranking of record has a bearing on many other personal actions such as granting within grade pay raises and determining additional retention service credit in a decrease in force.


Rewarding means recognizing employees, individually as a member of a group, because of their performance and acknowledging their efforts to the objective.

Good performances don't desire a nomination for formal awards to be solicited to be identified. It is an ongoing process. Award regulations provide a wide range of forms that more formal rewards may use, such as cash, tome off, and many nonmonetary items.

Managers and employees have been practicing good performance management, performing each key part process well. Goals are set and work is designed regularly. Improvement toward those goals is measured and employees get reviews. High criteria are arranged but treatment is also taken up to develop the skills needed to reach them. Formal and informal rewards are being used to identify the tendencies and results that attain the quest. All five components procedures working alongside one another and supporting each other achieve natural effective performance management. (OPM. gov)

2. 4 Great things about Performance Management

Enhance quality of work life:

Employees' work life change as they have new experiences and when analyzing their performance and their success being shown, they become more confident and also have a larger job satisfaction.

Increase staff responsibility:

There is new way to make employees accountable for their decision making and also actions taken by them and this is by conversing realistic and challenging work to them and therefore make them understand what is expected from them. That is their job expectation, that will hence, make them committed to the business as well.

Pulling jointly:

An effective performance management with a well defined objective can help employees to better understand how they can be contributing in the organization productivity and thus, boost their inspiration. Moreover, this will ensure that employees are working along toward the same goals.

Happy staff:

With a performance management system at work, this will allow employees to learn their value in the organization, as such improve their personal drive. Hence, personnel will surely answer well to praises and they are likely to increase their initiatives towards higher goal.


Performance management can also help to set up a good communication between employees and employers. Employees can feel free to discuss any concerns with professionals or supervisors and for that reason exchange opinions and discover way to the related things.

Feedback for employees:

When evaluation is performed on a regular basis, and reviews provided to employees, they could find it simpler to do their job, as they will be able to understand what is expected from them. This may also help them to acquire a better and clear targets and how they should improve. Consequently, they will feel encourage also to perform better. (Thales- Training & Consultancy, 2011)

2. 5 Performance Appraisal

Performance Appraisal (PA) can be defined as the process of studying employee's performance and keeping documents of the work. It really is an assessment of employee's designated responsibilities and jobs. Therefore, assessing employees' shows in terms of required prospects.

According to Newstrom (1992), PA "is the process of evaluating the performance of employees, sharing that information with them and searching for ways to boost their performance. "

"Performance appraisal is the organized description of the employee's job relevant talents and weaknesses. " (Wayne F. Cascio's, 1989)

"Performance appraisal should give attention to three goals: performance not personalities; valid, concrete relevant issues, somewhat than subjective thoughts and feelings; getting agreement on the particular employee is going to improve in his performance and what you will do. " (McKirchy, 1998)

2. 6 Reason for Performance Appraisal

Performance appraisal is performed mainly to judge performance of employees and as such see to it that the organizational targets are being found via the employee's commitment in work. The following are some example why PA is necessary in an organization:

Career Development

This help in an opportunity for career counselling and assist in succession planning of the business. Moreover, it offers the chance to discuss about job objectives and the way to assess in producing individual ability.


Feedback offers a two way communication between employees and supervisors or professionals. This can provide a constructive conversation how the employee's performance is seen as opinions can either fortify performance or encourage employees to work better or give the opportunity to discuss about performance deficiencies.

Organizational Goals

The reason for PA can even be a way o communicate and clarify organizational goals to its employees and provide opportunities to determine employees' shows with the organizational goals.

Administrative uses of PA

This enables to recognize the indegent performers and who are the better performers and therefore take action concerning whether promote the good performers, increase salaries or how to praise them and as for the poor performers see that they are given a development program to help them improve.

Performance history

Performance background is not reliant upon human recollection, rather it could b useful in personnel decisions including compensation decision making. In addition, provide the occasion to examine and compare past and present shows and analyzing durability and weakness of employees. (Hrvinet. com, 2010)

2. 7 Types of Performance Appraisal

Different PA methods vary in suitability and effectiveness. The methods mentioned herein are some of the countless methods used in worker performance appraisal.

2. 7. 1 360 Degree feedback:

360 degree reviews is one of the current topic and being taken into consideration in management analysis and evaluation and is known as to be an impressive methodology in PA.

This process involves assessing acquaintances that work around themselves. It really is an anonymous analysis, and this allows each employee to receive and provides their feedback on their colleagues.

2. 7. 2 Management by Objectives (MBO):

MBO is an activity by which both managers and employees set their targets that they have to meet and work toward this aim. Later they will examine their performance and based on the results obtained, they'll be rewarded.

As such, MBO is more worried on what things to achieve alternatively than the way the objectives have been fulfilled.

2. 7. 3 Critical Occurrence Method:

This type of PA is a method which describes situations of employees whether they did well in their job or need improvement during their performance period. Managers analyze the negative and positive behavior and performance of employees.

2. 7. 4 Image Rating Size:

This is one of the oldest methods of PA & most used one. Graphic rating scale is the simple way to rate the performance of employees. It assesses the performance of employees between your minimum and maximum number of the rating scale.

2. 7. 5 Behaviorally Anchored Score Scales (BARS):

BARS is a variety of rating size and critical occurrence ways of PA. As the name pointed out it, BARS essentially rates on the tendencies of the employees at work. The frame of mind and behaviors of employees are being evaluated. This also provides how effectively or ineffectively they performed in work.

2. 7. 6 Rating Methods:

This method rate staff using their highest to lowest performer. Moreover, managers compare an employee to another worker. Each worker will b evaluated compare to some other one over a scale of best to most severe performer.

2. 7. 8 Essay Evaluation:

Essay analysis is a qualitative strategy of obtaining information. Managers must explain the power and weaknesses of employees and present it in a written format in a paragraph.

2. 7. 9 Analysis Centers:

This method once was used to select employees and professionals. Now it has become a approach to PA. The individual is evaluated on different standards such as emotional tests, management game titles, oral display and other exercises. They may be then judged and choose their appraisal. (hrvinet. com, 2010)

2. 8 Performance Appraisal at a Civil Service

In Mauritius, the kind of performance appraisal used in the civil service is called Confidential Record (CR). It really is a descriptive survey that is prepared by the employee's supervisor and presented at the end of year. What the supervisor or director think of its worker is written in this CR. They identify the power and weaknesses of employees and present it in a written form and it is strictly confidential. The staff is not given any details about the report. And besides, they aren't published to any reviews.

In the government sector, performance appraisal should focus on a performance agreement predicated on pre-determined work plan, continuing with regular reviews and completed with a general review of performance, examination of development needs and recognition of performance.

PA at the individual level is an ongoing process between a worker and his supervisor. The PA process, covering a twelve months period consists of 3 phases:

Pre-appraisal: Planning and agreeing on performance

Mid-appraisal: managing performance

Final appraisal: appraising performance

All relevant information regarding the performance of employees is recorded on a PA form (annex A & A1; workmen group).

This is a record of officer's individual performance and contribution to the achievement of the Ministry/Department's tactical goals and objectives for confirmed period. The initial of the form should be stored by the Appraiser and paid to the Personnel Section after the final appraisal period. A backup of the proper execution is held by the Appraisee.

2. 9 Determination at Work

Motivation is a process that initiates that draw out the inner vitality within an individual to keep goals target behavior alive. Motivation is what can cause people to respond, to perform and achieve something. This is exactly what fortify someone ambition, give the willingness and course to meet someone's goal.

"When we suggest factors (or needs) that determine the determination of employees in the workplace, almost everyone would immediately think of a higher salary. This answer is appropriate for the reason that some employees will be motivated by money, but typically wrong for the reason that it generally does not meet others (to a enduring level). This supports the affirmation that human desire is an individual characteristic, and not a one works with all option. " (bizhelp24. com, 2010)

Motivation is a very important element in an organisation. Without having to be encouraged to work, employees won't succeed. Motivation is needed to reach goals that have been set. Additionally, motivation has a direct effect on the productivity of the company. Therefore, if these employees are not motivated, the company will fail to meet its goals and goals and also influence its creation.

Employees will be the greatest asset associated with an organisation, and no matter how efficient the technology and equipment may be, it is of no match to the efficiency and efficiency of the employees.

Motivation was thought as "the subconscious process that gives behavior goal and route. " (Kreitner, 1995)

According to Buford, Bedeian & Linder (1995) "Motivation is a predisposition to act in a purposive manner to attain specific, unmet needs"

2. 9. 1 Intrinsic and Extrinsic Motivation

There can be found many ideas of what motivates people, and consequently people are encouraged both by inner and external factors, as there's always a mixture of reasons why you decide to do, achieve, behave, learn and respond. Every action has a root cause, and understanding the cause of behavior and motivating factors is paramount to changing or enhancing effects. (Novella Thompson, 2011).

Intrinsic Motivation:

Intrinsic inspiration is defined as doing something for personal reason. It originates from inside of that individual. When someone is intrinsically encouraged, they'll find pleasure in what these are doing and revel in it because it is not at all something they are being pressurized to do.

In addition, when a person is intrinsically motivated, they will look for competency and skill development and become more concentrate on personal accomplishment.

Extrinsic Desire:

Extrinsic as the name can describe is exterior factors or tangible rewards that motivate people. It displays the desire to do something only to obtain another thing in return, such as money, praises or awards. These kinds of men and women, does not really enjoy what they are doing because they engaged to do something limited to some external goal.

2. 9. 2 Ideas of Motivation

Motivation theories make an effort to make clear why employees are encouraged by and satisfied with one type of work than another. It is important that professionals have a simple understanding of work inspiration because highly motivated employees will produce a superior quality product or service than staff who lack motivation.

At onetime, employees were considered just another insight in the production of goods and services. What perhaps modified this thought process about employees was research referred to as the Hawthorne Studies conducted by Elton Mayor (Dickson, 1973). This research found employees are not motivated exclusively by money and employee behavior is associated with their attitudes (Dickson, 1973). The Hawthorne Studies started the human relationships approach to management, whereby the needs and inspiration of employees become the primary concentrate of professionals (Bedeian, 1993)

There are many different ways as to what motivates employees. The mostly theories used are talked about below. And each theory has its own conclusion.

2. 9. 3 Mayo:

Contrary to Taylor, Mayo presumed that money is not what all issues to employees, there will be more than that. Workers are encouraged by interacting with their sociable needs. Mayo concentrates more on the actual fact that professionals should put more emphasis in getting together with their employees.

After doing some research, Mayo concluded that workers are motivated by:

Better communication; that is, there may be interaction between managers and workers and for that reason, any misunderstanding or any problems can be dealt between them.

Greater Management Involvement; managers should become more within employees working life.

Working in groupings or groups; employees feel more stimulated and encourage working when they are in group or clubs are working together in a friendly environment.

2. 9. 4 Maslow:

Abraham Maslow along with Frederick Herzberg centered more on the mental needs of employees. Maslow developed a theory where there are five degrees of individual needs which employees have to have fulfilled at the job.

Organization should therefore offer different bonuses in order to help the employees match their needs subsequently and progress up the hierarchy (see below).

http://userwebs. cth. com. au/~gcutts/Images/maslow. gif

Figure 3 Maslow Hierarchy of Need

2. 9. 5 Herzberg:

Frederick Herzberg had a two factors theory of drive. Both factors were Hygiene factors and Motivators.

According to Herzberg, motivators are more concerned with the real job itself, for example; extra responsibility, acknowledgement and advertising, whereas, the Hygiene factor is one factor that surround the job, such as realistic pay, safe working conditions.

2. 9. 6 Mc Gregor Theory X and Y:

Basic mother nature of employees that Mc Gregor has characterized in two type.

Theory X:

Employees who are very focused on their work. They always look for new problem, and admit any work given to them. They can be motivated workers and very dedicated. They allow responsibilities and can be quite creative throughout their work.

Theory Y:

Employees that are unlike Theory X. they are simply lazy staff that refuse obligations. They need to be supervised and threaten to do the work. They don't screen any ambition at work and tend to be punished.

2. 10 Motivation is the main element to Performance Improvement

There is an old saying "you may take a equine to the but you cannot force it to drink; it will drink only if it's thirsty"- so is it with people. People can do what they would like to do or what enthusiastic to do.

Performance is reported to be a function of potential and drive, and there's a formula that is manufactured out of that;

Job Performance = f (capacity) (inspiration)

Ability will depend on the training, experience and training provided to the employee. And its ability is a poor and long process. For motivation, it can be improved quickly.

There are 7 strategies for motivation:

Positive reinforcement

Effective discipline and punishment

Treating people fairly

Satisfying employees needs

Setting work related goals

Restructuring jobs

Base reward on job performance

Motivation, consequently is helpful information towards goals mentioned by motivator. The motivational system must be designed to the organization's situation.

2. 11 Job Satisfaction

"Job satisfaction is thought as "the level to which people like or dislike their careers. " (Spector, 1997). Job satisfaction is a general or global affective reaction that individuals keep about their job. While research workers and practitioners must often evaluate global job satisfaction, there is also interest in calculating different "facets", or "dimensions" of satisfaction. Study of these facets conditions is often useful for a more careful study of employee satisfaction with critical job factors. Traditional job satisfaction facets include co-workers, pay, job conditions, guidance, nature of the work and benefits. " (Williams, 2004)

Moreover, relating to Ilham (2009), staff satisfaction identifies the positive or negative aspects of employee's frame of mind towards works. Employee satisfaction is the expressions used to spell it out the feeling of employees, that is if they are happy and satisfying their needs at the job.

2. 11. 1 Herzberg's Theory on Job Satisfaction

"Frederick Herzberg (1950) is well known for his motivational theory. But after doing some research and examine them, he developed his theory in two proportions to job satisfaction.



Motivation as per Herzberg can create satisfaction by satisfying individual's needs and personal expansion. These are issues such as achievement, recognition, the work itself, responsibility and growth.

Hygiene on the other palm cannot motivate employees relating to Herzberg, but it can reduce dissatisfaction. Hygiene matters include company procedures, supervision, salary, interpersonal relationships and working conditions. They may be issues related to employee's environment.

Once health areas are attended to, the motivators will promote job satisfaction and encourage production. " (Fam Pract Manag, 1999)

Hygiene issues (dissatisfiers) Motivators (satisfiers)

Company regulations Achievement

Supervision Recognition

Salary Work itself

Interpersonal relationships Responsibility

Working conditions Advancement

2. 11. 2 5 Job Satisfaction Factors

According to a survey done in '09 2009 by the Culture for Human Source of information Management, there are top 5 job satisfaction factors. (Christiane, 2010)

Job security


Compensation/ pay

Opportunities to work with skills and abilities

Feeling safe in the work environment

2. 11. 3 Job Satisfaction WITH REGARDS TO Job Performance

The relationship between job satisfaction and employee's performance has always been part of organizational habit and human reference management. Corresponding to Rabins (1999), job satisfaction and performance can be summarized as "productivity of the happy staff member is higher". Job satisfaction lead to higher production, organizational responsibility, physical and mental health, so a person will work with better feeling and will find out more skills and lastly campaign in his performance (Comber. Barriball, 2007).

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