Performance Management 

The systematic process of gathering, analysing and evaluating data and information on employee performance. 

Required in order to determine the relative value for money that each employee represents to the firm. 

Usually disliked by employees; usually poorly undertaken by firms and process interpreted as punitive (finger-pointing and blaming). 

HR must ensure equity in performance management, unbiased criteria for measurement and clear communication of expectations of performance.

Depending upon the role, data and information on performance will vary. Broader considerations of employee circumstances must be accounted for.

Developmental:

• Focused upon using data to identify areas for future development

• Improve effectiveness of firm through targeting weaknesses

• Annual feedback and shared discussion of career trajectory

Administrative:

• The use of performance management data in allocating pay, rewards, bonuses, promotions.

• Data collection rand record keeping systems required to manage more effectively (know what’s actually happening)

When to apply this strategy:

• When a firm is unaware of actual performance of employees; 

• When new rewards program is being introduced; 

• When a firm desires to understand the weaknesses and future direction for training and development.  

Care MUST be taken on implementation to avoid employee stress, tension and conflict (poor culture if feel targeted…)