Introduction to

performance management
Prepared by:
Dr. Karima Hosny Hassan
 Performance
Performance refers to
outcomes, results or
accomplishments.

2
 Components of Performance
Four components of performance
A performer
Behaviour
Situation
Results

3
 Performance
What an employee does and does not do.

Quantity of output Quality of output

Timeliness of output Presence at work

 Employee performance
Employee Performance =
Individual Characteristics X Environment
Employee performance isn't determined by the
employee's individual abilities or aptitudes, but
by the environment as it interacts with those
abilities. That has some profound implications
for how we manage and evaluate individual
performance.
Types of Performance Information
Relevance of Performance Criteria

Reliability Practicality

Performance
Appraisal

Fairness
Relevance of Performance Criteria

Deficiency Contamination

Performance
Criteria

Overemphasis
 Differences between Personnel Management and HRM
Factor Personnel management HRM
Time and planning Short term, reactive, ad hoc , Long term, proactive, strategic,
perspective marginal integrated
Psychological Compliance Commitment
contract
Employee relations Pluralist, collective, low trust Unitarist, individual, high trust
perspective

Preferred Bureaucratic/mechanistic, Organic, devolved, flexible roles

structure/system centralized, formal/defined roles
Roles Specialized/professional Largely integrated into line
management
Evaluation Cost minimization Maximum utilization (human
asset accounting)
 Introduction to Performance Management (PM)
Managing employee performance is an integral part of the
work that all managers and rating officials perform
throughout the year. It is as important as managing financial
resources and program outcomes because employee
performance or the lack thereof, has a profound effect on
both the financial and program components of any
organization.
A Brief History of Performance Management

Performance management is not a new concept.

But on the whole, the way companies conduct
appraisals has changed massively over the last
100 years so we thought you might like to see
a brief overview of Performance Management
over the years.
A Brief History of Performance Management
Early 1900s: The Performance Appraisals Informal Beginnings

1950s: Developing a Formal System

1960s: Measuring Objectives & Goals

1970s: Finding Flaws

1980s Early 2000s: Holistic Measures

Modern Day Performance Management
The term performance management
gained its popularity in early 1980s when
total quality management programs
received utmost importance for
achievement of superior standards and
quality performance.
 Performance Management
The term performance management gained its
importance from the times when the
competitive pressures in the market place
started rising and the organizations felt the need
of introducing a comprehensive performance
management process into their system for
improving the overall productivity and
performance effectiveness.
Performance Management
 Performance Management

Performance management is the current buzzword and is the

need in the current times of cut throat competition and the
organizational battle for leadership.
Performance management is a much broader and a
complicated function of HR, as it encompasses activities such
as joint goal setting, continuous progress review and
frequent communication, feedback and coaching for
improved performance, implementation of employee
development programs and rewarding achievements.
Performance
Management Linkage
A performance management process
A performance management process sets
the platform for rewarding excellence by
aligning individual employee
accomplishments with the organizations
mission and objectives and making the
employee and the organization understand
the importance of a specific job in realizing
outcomes.
 The performance management process evolved in five
phases.
1. First Phase: The origin of performance management can be traced in the early
1960s when the performance appraisal systems were in practice.
2. Second Phase: This phase continued from late 1960s till early 1970s, and the key
hallmark of this phase was that whatever adverse remarks were incorporated in the
performance reports were communicated to the employees so that they could take
corrective actions for overcoming such deficiencies
3. Third Phase: In this phase the term ACR (Annual Confidential Reports )was
replaced by performance appraisal.
4. Fourth Phase: This phase started in mid 1970s . The system focused on
performance planning, review and development of an employee. This phase was a
welcoming change in the area of performance management .
5. Fifth Phase: This phase was characterized by maturity in approach of handling
peoples issues. It was more performance driven and emphasis was on development,
planning and improvement.
 Conclusion
Performance management can be regarded as a
proactive system of managing employee
performance for driving the individuals and the
organizations towards desired performance and
results. Its about striking a harmonious
alignment between individual and organizational
objectives for accomplishment of excellence in
performance.