Employee Performance Management

  Theories underpin performance Management Performance Management concepts explain its theoretical basis and how it ought to work in practice. Those theories provide framework within which performance processes can be developed, operated and evaluated.  (Michael, 2009) Goal theory, Control theory and social cognitive theory underpinning performance management have need identified by Buchner (2007). Figure 1: Performance Management Theories Source: Armstrong & Taylor (2014) GOAL THEORY Goal theory as developed by Latham and Locke in 1979. He highlights four mechanisms that connect goals to performance outcome. 1.      Direct attention to priorities 2.      Stimulate effort 3.      Challenge people to bring their knowledge and skills to bear to increase their chances of success 4.      More challenging the goal, the more people will draw on their full repertoire of skills. Thi...

Principles and Importance of Performance Management System Well designed and effective appraisal has two important functions. Firstly, it creates clear basis for the ongoing relationship between a team member and their manager. Secondly, it creates as effective performance management system that clarifies the relationship between the individual and organization (FME, 2013) . It can be regarded as a systematic process by which the overall performance of an organization can be improved by improving the performance of individuals within a team framework (Drumm, 2005). The research conducted by Armstrong and Baron (1998,2004) identifies the following principles of performance management system. 1.       It is about the approach of manage people – it’s not a system 2.       Performance Management is natural processes of management and emphasize management job role 3.       Performance management is a management tool t...

  Performance Management System ‘In currant dynamic business world humans are considered as a resource, due to its capability to generate positive or negative influence towards the business success’ (Qureshi & Hassan, 2013) Due to these reasons performance management and address training requirements of employees critically important in any organization. ‘ Performance management is a systematic process for improving organizational performance  by developing the performance of individuals and teams. It is a means of getting better results  by understanding and managing performance within an agreed framework of planned goals,  standards and competency requirements ’ (Armstrong, 2009) . As Mohran & Mohrman, (1995) emphasize: ‘Performance management is managing the business’ As an operational processes ‘Performance management is the system through which organizations set work goals, determine performance standards, assign and evaluate work, provide perform...