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Performance Management

The introduction of a performance management system in any organisation requires an understanding of the particular systemic, process, and training and development issues which research has demonstrated determine the success of the project.  A piecemeal approach, which does not concentrate on a carefully planned and phased introduction, continuous improvement or does not adequately integrate with the policy, processes and culture of the whole organisation, will not succeed because of a lack of acceptance by staff as a legitimate methodology for professional development and organisational improvement.  The literature across the world is clear: neither managers nor employees see the benefits of performance appraisal especially as a tool for training and development and performance improvement.[i]  Yet this is its very reason for being.  There is a major difference between the more traditional approach of performance appraisals and the more recent emphasis on performance management systems.[ii] Excelier have experienced Performance Management Consultants who are able to draw on a wealth of experiences, training and education to help you define a problem and to generate usable solutions for your business – helping you to achieve more. Furthermore, Michael D. Tovey is the world's leading expert and renowned author on Performance Management and its related issues.

Performance management has great potential for achieving organisational outcomes,[iii] where individual performance objectives are integrated with the business strategy of the organisation[iv] and the objectives are focused on individual personal development, communication and teamwork.[v]  To reach the potential which systematic performance management offers managers, staff and organisations, the following must occur:

  • great care must be taken in describing and measuring performance.[vi]
  • managers must be assisted with appraisal tools, policy and procedural advice, and industrial matters in relation to performance[vii]
  • the skills of managers in applying performance management must be at an appropriately high level[viii]

Research demonstrates that those organisations that excel are more likely to have formal performance management systems in place:

  • There is a correlation between more specific and objective performance standards and better overall organisational performance [ix]

  • Human effort is the most important factor in determining organisational performance[x]

  • By linking individual performance to the performance of the organisation, individuals are able to clearly identify what is expected of them, how their performance will be measured and how they are progressing towards their performance goals.[xi] 

While managers manage the performance of equipment, products, and services, managers do not manage the performance of people.[xii]

Talk to us about understanding your need to improve performance and achieve more, contact Excelier or email on excel@excelierconsulting.com and/or michael.tovey@excelierconsulting.com.

[i] Rudman, R. 1995. Performance planning and review: Making employee appraisals work. p viii. Pitman: South Melbourne

Lawson,  P. 1995. Performance management: An overview. In M Walters The performance management handbook. Institute of Personnel Management: London. p. 1.

[ii] Armstrong, M. 1994. Performance Management. Kogan Page. p. 15.

[iii] Bernardin, H; Hagan, C; Kane, J; & Villanova, P. 1998. Effective Performance Management: A Focus on Precision, Customers, and Situational Constraints.  In J. W. Smither. (Ed). Performance Appraisal: State of the Art in Practice. Jossey Bass: San Francisco. p 5, 7.

Rudman, R. 1995. Performance planning and review: Making employee appraisals work.  Pitman: South Melbourne. p. 1.

Armstrong, M. 1994. Performance Management. Kogan Page. p. 13.

Schaffer, R. 1998. Demand better results and get them. In D. Shaw, C Schneier, R. Beatty & L Baird. (Eds). 1995. Performance measurement, management and appraisal sourcebook. HRD Press: Amherst, Massachusetts. p. 22.

[iv] Armstrong, M. 1994. Performance Management. Kogan Page. p. 15.

Weiss, T & Hartle, F. 1997.  Performance management. St Lucie Press: Boca Raton Florida. p. 4, 6.

Rudman, R. 1995. Performance planning and review: Making employee appraisals work.  Pitman: South Melbourne. p. 5.

Fletcher, C. & Williams, R. 1992. Organisational experience in Institute of Personal Management. Performance management: An analysis of issues.  Institute of Personnel Management: London.  Cited in J. Storey & K. Sission. Managing human resources and industrial relations. Open University Press: Buckingham. UK. p.136.

[v] Weiss, T & Hartle, F. 1997.  Performance management. St Lucie Press: Boca Raton Florida. p. 3.

[vi] Bernardin, H; Hagan, C; Kane, J; & Villanova, P. 1998. Effective Performance Management: A Focus on Precision, Customers, and Situational Constraints.  In J. W. Smither. (Ed). Performance Appraisal: State of the Art in Practice. Jossey Bass: San Francisco. p 7.

[vii] Tovey, M. D. (In Press) Managing Performance Improvement. Prentice Hall: Sydney.

[viii] Nankervis, A, Compton, R, & McCarthy, T. 1993. Strategic Human Resource Management. Thomas Nelson Australia: South Melbourne. p.310.

[ix] Bernardin, H; Hagan, C; Kane, J; & Villanova, P. 1998. Effective Performance Management: A Focus on Precision, Customers, and Situational Constraints.  In J. W. Smither. (Ed). Performance Appraisal: State of the Art in Practice. Jossey Bass: San Francisco. p 9, 17.

[x] Philp, T. 1990. (2 Ed). Appraising performance for results. McGraw Hill: Berkshire. UK. p. 7.

[xi] Philp, T. 1990. (2 Ed). Appraising performance for results. McGraw Hill: Berkshire. UK. p. 1.

[xii] Philp, T. 1990. (2 Ed). Appraising performance for results. McGraw Hill: Berkshire. UK. pp. 2-6.