Chapter 7

Performance Management

Learning Objectives

• Understand the difference between performance management and performance appraisal

• Understand the factors that impact performance from a holistic perspective

• Outline a model of the performance management process• Understand the benefits that may be achieved through effective

performance management• Explain potential sources of conflict in performance management at

both a systemic and individual level• Describe different performance appraisal methods and procedures• Understand good practice in relation to performance appraisal

methods

Performance management and appraisal

• performance management - work design, reward structures, selection, training and development and assessment and policies for rewarding and improving performance

• Performance appraisal - the formal system that operates to set goals, monitor performance and establish consequences and improvement actions

Performance Management provides a basis for:

• aligning behaviour to organisation’s strategic vision and mission

• establishing clear behavioural norms for employees and volunteers

• fair and objective basis for rewarding the relative contributions of different staff

• discussing career development • evaluating the effectiveness of HR processes • a system of employee information

The Performance Management ProcessStage 1

Prepare/Revise individual job goals, accountabilities and relationshipsAgree with staff member on measures of performance for each accountability area e.g. Key Performance Indicators. Clarify values related to the job and behavioural

dimensions of performance. Clarify reward expectationsStage 2

Remove barriers to job performance Stage 3

Ongoing assessment of job performance; provision of feedbackStage 4

Formal review of action on previous appraisal recommendations; appraisal of performance against goals

Stage 5Establish new goals; identify performance improvement action

Stage 6Assess future career potential; plan next career steps and individual training and

development needsImplement performance improvement and career development strategies

Stage 7Recommend merit based adjustments to remuneration

Stage 1

• define and agree on performance standards • clear and well communicated goals provide

direction, encourage above the norm levels of effort and serve as a basis for appraisal feedback later in the process

• developing criteria for performance appraisal and determining which aspects of a job are the most appropriate to use in measuring performance can be approached in numerous of ways

Measuring coaching performance

Behavioural product factors

Team or athlete outcome measures

Personal outcome measures

Number of competitions won

Receipt of coaching awards

Improvement in placing over previous attempt

Upgrading of coaching qualifications

Improvement in skill levels Advice sought by other coaches

Behavioural process factors –task related

Direct task Indirect task

Application of strategies to enhance performance

Recruiting talented players

Applying coaching knowledge

Maintaining and applying relevant statistics

Effective communication

Behavioural process factors – maintenance related

Administrative Public relations

Adherence to policies and procedures

Relationship with stakeholders

Effective financial management

Liaison with community groups

(Adapted from MacLean & Chelladurai, 1995 and MacLean, 2001)  

Stage 2

• remove barriers that may inhibit performance

• provide appropriate levels of resources for a position or simply providing adequate tools

Stage 3

• revisit performance on a regular basis and provide corrective feedback as required

• giving feedback is an important managerial competency

• important factors influencing receptivity are: comfort with feedback; propensity to seek feedback; mindfulness with which feedback is processed and sense of accountability to act on feedback

Stage 4

• involves a formal review of the performance during the interval since the goal setting meeting

• use a style of interview that encourages joint problem solving

• encourage staff members to evaluate their own performance

• focus on factual data wherever possible and use specific examples to illustrate optimal and sub-optimal performance

• use inclusive language wherever possible • hold the interviews in a private and neutral setting and

allow enough time to properly deal with all the issues

Stages 5 and 6

• Stage 5 - reaching consensus on any performance improvement actions that result from the review and setting new goals for the next performance period

• Stage 6 - a discussion about career planning and training stemming from Stage 5

• together these stages consist of the formal developmental component of the performance management process

Stage 7

• determine and provide appropriate merit pay, financial bonuses, or nonfinancial rewards, based on the formal review of performance

• rewards may be provided on a continuous (e.g., commission) or graduated (levels) scale, for individual performance, or unit or organizational results

Performance appraisal – common problems

• attempts to achieve too much • managers have been found to often experience

guilt about making negative judgements • employees may not be completely open about

their need for development • poor integration between organisational strategy

and the appraisal system• systems are not fully integrated into other HR

systems

To minimise bias:

• Relate performance dimensions to a single activity (not groups of activities)

• Avoid overall ratings• Observe job behaviour regularly• Avoid ambiguous terms which can different

individual interpretations e.g. average• Train assessors to share a common frame of

reference

Performance Appraisal Methods

1. staff may be compared with each other or compared to some absolute standard.

2. performance can be measured on staff member attributes, behaviours or results.

3. staff may be measured by managers, themselves or a wider group of respondents

Sample performance ratings scale combing attributes and behaviours

Using the items in the rating scale, indicate your assessment of performance for each dimension by circling the appropriate rating

PerformanceItem

Rating Outstanding5

Above Standard4

At standard3

BelowStandard2

Poor1

Knowledge

Communication

Management Skill

Teamwork

Initiative

InterpersonalSkill

Creativity

Problem Solving

Willingness to Accept Responsibility

Management by Objectives

4 steps

1. Goal Setting,

2. Delegating,

3. Ongoing Feedback

4. Overall Evaluation

Effective performance management

• Top management commitment to performance management

• Use of multiple raters to reduce subjectivity• A self assessment component to increase employee

engagement• Compatibility between job design and appraisal method• A system tailored to organisational strategies, culture,

tasks and workforce• A structured process of performance appraisal to assist

managers• Clear performance measures• Ongoing feedback during the performance cycle• Recognition of organisational obstacles to effective

performance

Summary

• Performance appraisal is a component of performance management that deals with the formal system of goal setting, review and consequent action to influence behaviour

• There are many benefits of effective performance management but there are also many common systemic and operational problems

• A stage model of performance management can be used to ensure effective management of both paid staff and volunteers in sport