Table of contents

Page
Topic name
No.

Performance management system

Definition
2
Performance management cycle
Parts of performance management system

Major determinants of individual performance

Individual behavior
Organizational strategy
2&3
Individual attributes
Situational constraints
Objective results

Environmental factors affect the performance

Internally 3

Externally

References 4

1
 Performance management system

Performance management system is the systematic approach to measure the performance. It is a

process through which the organization aligns their mission, goals and objectives with available
resources (e.g. Manpower, material etc.), systems and set the priorities.

It means through which managers ensure that employee’s activities and outputs are congruent with
the organization’s goals.

Performance management cycle:

Performance management cycle is based on

• Plan (prioritizing and planning for improvement)

• Do (helping people for achieving better performance)
• Review (understanding the impact of your actions)
• Revise (learning to change what you do)

Parts of performance management system:

1: Job Analysis

➢ Specifies which aspect of performance are relevant to the organization

2: Performance Appraisal:

➢ Measures aspect of performance how well an employee doing his job

3: Performance Feedback:

➢ Provide feedback to employee, trying rewards to performance through compensation

system
➢ Employees effectiveness

Major determinants of individual performance

1: Individual Behavior:

➢ It can be defined as how an individual behaves at work.

➢ A person’s behavior is influenced by the following factors Attitude, Perception and
Personality.
2
 2: Organizational Strategy:

➢ Long and short-term goals and values

➢ Mission guiding all strategic decisions
➢ Vision describes what the company will have achieved in fulfilling its mission
➢ Visions are our long-term goals

Organizational
Strategy

Individual Objective
Individual Behaviors
Attributes Results

Situational
Constraints

3
3: Individual Attributes:

➢ It is defined as a quality or characteristics of a person, place or thing.

➢ Skills and abilities

4: Situational Constraints:

➢ Organizational conditions (employees or workers requires certain supplies to perform their

job properly and efficiently)
➢ Cultural and economic conditions

5: Objective Results:

Five performance objectives

➢ Quality
➢ Speed
➢ Dependability
➢ Flexibility
➢ Cost

When these can be grouped together to play a pivotal role in business.

Environmental factors affect the performance internally and externally:

Internally Externally
▪ Service ▪ Labour union
▪ Rewarding ▪ Legislation
▪ Firm’s culture ▪ Transfer
▪ Company itself ▪ Competitors
▪ Internal public ▪ Financial public

4
References:
This study guide is collected by the following sites.

➢ Book (Human Resource Development) chapter 8 (Performance Management and

Appraisal)
➢ Ateneo de Manila University Graduate ppt slides of performance management
➢ Chron
➢ YourDictionary
➢ Tutorials point
➢ Smart turn around