Managing Employee
Performance (3)
HRMT650
Spring 2016
Managing Employee Performance
Dr. Arno Haslberger
Issues In Performance
Management
THE NATURE OF PERFORMANCE
MANAGEMENT
The m a n y - f a c e t e d n a t u r e of
performance management was
commented on as follows by Wayne
Cascio:
‘It is an exercise in observation and
judgement, it is a feedback process, it is
an organizational intervention. It is a
measurement process as well as an
intensely emotional process. Above all, it
is an inexact, human process.’
Cascio, W F (2010) Managing Human Resources:
Productivity, quality of work life, profits, 8th edn,
McGraw-Hill Irwin, New York
The problems of performance management
‘The problems [of performance management] are …
not of ambition or intent, but rather practice and
delivery. Low rates of coverage and even more
frequently low-quality conversations and nonexistent follow-up are commonplace, in the wake of
uncommitted directors, incompetent line managers,
uncomprehending employees and hectoring HR with
their still complex and bureaucratic HR processes.’
Duncan Brown
Performance management problems
As reported by respondents to the 2014 e-reward survey
The lack of line
managers with the
skills required to
carry out
performance
management
effectively.
Line managers
who were
reluctant to
conduct
performance
management
reviews.
Line managers
who don't
discriminate
sufficiently when
assessing
performance.
Basic design issues
1The extent to which the system should be forwardlooking.
2The extent to which the system should focus on
performance enhancement.
Design issues
1. The form and content of the performance
agreement.
2. The problem of aligning individual and
organizational goals.
3. Whether or not ratings should be used and if
so, in what form.
4. The link between performance management
and performance pay.
5. How performance management should be
documented.
Operational issues
Performance management can
be modelled convincingly as a
system but in practice the acts or
failures to act of fallible human
beings prejudice the
effectiveness of the system.
How to deal with performance management issues (1)
As recommended by a respondent to the 2014 e-reward survey
•Train, communicate;
•Evaluate performance management through
employee engagement surveys;
• Have HR business partners work with line
managers;
• Organize round tables (calibration);
•Provide details of expected competency levels per
job type/level;
• Clarify that good is acceptable (not everyone can be
a star);
•Encourage ongoing performance management, it's
more than just an annual administrative hoop – it's a
powerful management tool.
How to deal with performance management issues (2)
As recommended by a respondent to the 2014 e-reward survey
‘Keep it very, very simple, be able
to translate strategy to individual
goals and give people a clear line of
sight. Ensure all people managers
are capable to deliver performance
management, ie have a
performance dialogue (this is the
key!) at any time and not just at the
annual review.’
How to deal with performance management
issues (3)
As recommended by respondents to the 2014 e-reward survey
‘Focus on the
positives, create a
culture of continual
performance
management rather
than restricting it to
an annual appraisal.’
‘Ensure the system isn't
hampered by
bureaucracy and
tedious paperwork.’
‘It is the
conversation
between the
manager and
employee that is
most important.’
‘Managers
‘Make it about good
conversations, not just a
process.’
‘Clear line of sight
between
objective setting,
performance
review and
business goals.’
need to
be given the skills to
manage difficult
conversations and
all staff need to
know how to give
and receive
feedback.’