Chapter 7
Performance Management
Learning Objectives
• Understand the difference between performance management and
performance appraisal
• Understand the factors that impact performance from a holistic
perspective
• Outline a model of the performance management process
• Understand the benefits that may be achieved through effective
performance management
• Explain potential sources of conflict in performance management at
both a systemic and individual level
• Describe different performance appraisal methods and procedures
• Understand good practice in relation to performance appraisal
methods
Performance management and
appraisal
• performance management - work design,
reward structures, selection, training and
development and assessment and policies
for rewarding and improving performance
• Performance appraisal - the formal system
that operates to set goals, monitor
performance and establish consequences
and improvement actions
Performance Management
provides a basis for:
• aligning behaviour to organisation’s strategic
vision and mission
• establishing clear behavioural norms for
employees and volunteers
• fair and objective basis for rewarding the relative
contributions of different staff
• discussing career development
• evaluating the effectiveness of HR processes
• a system of employee information
The Performance Management Process
Stage 1
Prepare/Revise individual job goals, accountabilities and relationships
Agree with staff member on measures of performance for each accountability
area e.g. Key Performance Indicators. Clarify values related to the job and
behavioural dimensions of performance. Clarify reward expectations
Stage 2
Remove barriers to job performance
Stage 3
Ongoing assessment of job performance; provision of feedback
Stage 4
Formal review of action on previous appraisal recommendations; appraisal of
performance against goals
Stage 5
Establish new goals; identify performance improvement action
Stage 6
Assess future career potential; plan next career steps and individual training and
development needs
Implement performance improvement and career development strategies
Stage 7
Recommend merit based adjustments to remuneration
Stage 1
• define and agree on performance standards
• clear and well communicated goals provide
direction, encourage above the norm levels of
effort and serve as a basis for appraisal
feedback later in the process
• developing criteria for performance appraisal
and determining which aspects of a job are the
most appropriate to use in measuring
performance can be approached in numerous of
ways
Measuring coaching performance
Behavioural product
factors
Behavioural process
factors –task related
Team or athlete outcome
measures
Personal outcome
measures
Number of competitions
won
Receipt of coaching
awards
Improvement in placing
over previous attempt
Upgrading of coaching
qualifications
Improvement in skill levels
Advice sought by other
coaches
Direct task
Indirect task
Application of strategies to
enhance performance
Recruiting talented
players
Applying coaching
knowledge
Maintaining and
applying relevant
statistics
Effective communication
Behavioural process
factors – maintenance
related
Administrative
Public relations
Adherence to policies and
procedures
Relationship with
stakeholders
Effective financial
management
Liaison with
community groups
(Adapted from
MacLean &
Chelladurai, 1995 and
MacLean, 2001)
Stage 2
• remove barriers that may inhibit
performance
• provide appropriate levels of resources for
a position or simply providing adequate
tools
Stage 3
• revisit performance on a regular basis and
provide corrective feedback as required
• giving feedback is an important
managerial competency
• important factors influencing receptivity
are: comfort with feedback; propensity to
seek feedback; mindfulness with which
feedback is processed and sense of
accountability to act on feedback
Stage 4
• involves a formal review of the performance during the
interval since the goal setting meeting
• use a style of interview that encourages joint problem
solving
• encourage staff members to evaluate their own
performance
• focus on factual data wherever possible and use specific
examples to illustrate optimal and sub-optimal
performance
• use inclusive language wherever possible
• hold the interviews in a private and neutral setting and
allow enough time to properly deal with all the issues
Stages 5 and 6
• Stage 5 - reaching consensus on any
performance improvement actions that result
from the review and setting new goals for the
next performance period
• Stage 6 - a discussion about career planning
and training stemming from Stage 5
• together these stages consist of the formal
developmental component of the performance
management process
Stage 7
• determine and provide appropriate merit
pay, financial bonuses, or nonfinancial
rewards, based on the formal review of
performance
• rewards may be provided on a continuous
(e.g., commission) or graduated (levels)
scale, for individual performance, or unit or
organizational results
Performance appraisal – common
problems
• attempts to achieve too much
• managers have been found to often experience
guilt about making negative judgements
• employees may not be completely open about
their need for development
• poor integration between organisational strategy
and the appraisal system
• systems are not fully integrated into other HR
systems
To minimise bias:
• Relate performance dimensions to a single
activity (not groups of activities)
• Avoid overall ratings
• Observe job behaviour regularly
• Avoid ambiguous terms which can different
individual interpretations e.g. average
• Train assessors to share a common frame of
reference
Performance Appraisal Methods
1. staff may be compared with each other
or compared to some absolute standard.
2. performance can be measured on staff
member attributes, behaviours or results.
3. staff may be measured by managers,
themselves or a wider group of
respondents
Sample performance ratings scale combing attributes and behaviours
Using the items in the rating scale, indicate your assessment of performance for each dimension by circling the appropriate
rating
Performance
Item
Knowledge
Communicatio
n
Management
Skill
Teamwork
Initiative
Interpersonal
Skill
Creativity
Problem
Solving
Willingness to
Accept
Responsibility
Rating
Outstandin
g
5
Above
Standard
4
At
standard
3
Below
Standard
2
Poor
1
Management by Objectives
4 steps
1. Goal Setting,
2. Delegating,
3. Ongoing Feedback
4. Overall Evaluation
Effective performance management
• Top management commitment to performance
management
• Use of multiple raters to reduce subjectivity
• A self assessment component to increase employee
engagement
• Compatibility between job design and appraisal method
• A system tailored to organisational strategies, culture,
tasks and workforce
• A structured process of performance appraisal to assist
managers
• Clear performance measures
• Ongoing feedback during the performance cycle
• Recognition of organisational obstacles to effective
performance
Summary
• Performance appraisal is a component of
performance management that deals with the
formal system of goal setting, review and
consequent action to influence behaviour
• There are many benefits of effective
performance management but there are also
many common systemic and operational
problems
• A stage model of performance management can
be used to ensure effective management of both
paid staff and volunteers in sport