Performance

management
 Performance management Performance appraisal looks at
looks at the present and future all of the past actions of the
of the employee and what can employee within a set amount
be done to help future of time and rates how well they
performance and meet future performed in their role and
goals. (Support) how many goals they met.
 Performance management Performance appraisal
Proactive Reactive

Forward looking Backwards looking

Led by supervisors and management Led by HR with some management input

Flexible Rigid

Strategic Operational

Ongoing Once a year

Does not use ratings or rankings Uses ratings and rankings

The central purpose of a performance
management system is to assess and ensure
that employees are carrying out their duties
which they are employed to do in an effective
and satisfactory manner, contributing to the
overall business objectives.
The performance management process

Performance Performance Performance

Performance
coaching and measurement feedback and
planning
mentoring and evaluation documentation
 Measuring performance: Relative or absolute
evaluation

Performance
Relative judgements require managers to
measurement compare an employee’s performance to the
and performance of other employees doing the
same job.
evaluation
Absolute judgements ask managers to make
judgements about an employee’s
performance based solely on performance
standards.
Rational and political approaches to performance evaluation

Rational approach Political approach

The main objective of the appraisal is The main objective of the appraisal is its
the precision with which an employee’s usefulness to the manager.
performance can be assessed.

The employee’s performance should be Results of assessments are unclear.

discussed in detail.

Neither management and employees participate in Both management and employees are
the process of evaluation and motivated to engage in the measurement
are seen as passive. process of performance.

The emphasis is purely on the effective The emphasis is on management and

measurement of performance. the role they play in the performance
measurement process.
Performance evaluation

Immediate
supervisor or Peers Subordinates Self-appraisal
manager

Customer Team
360° feedback
appraisals appraisals
 Advantages and disadvantages of
360° feedback

Advantages Disadvantages

Individuals benefit from a holistic Feedback is followed by lack of adequate

perspective of their performance. response from management.
Individual strengths and weaknesses are identified. Can be bureaucratic (decisions taken by the
organization) and cumbersome (difficult to carry).

Critical key performance areas are Intimidation of respondents.

re-emphasised.
The impact of individual’s behaviour on Lack of confidentiality leading to lack of
others is highlighted. honesty in providing feedback.
 Comparative methods (compare with other
workers) can be used to tease out differences
Comparative between employees by providing direct
methods of comparisons. They include the following
methods:
rating a • Ranking
performance • Forced distribution
• Paired comparison.
 Narrative methods use a description or ‘story’ about
an employee’s performance, or merely give an
indication if an employee met a specific requirement
of the job or not. They include the following methods:
• Essay method
Narrative • Critical incidents
methods of • Checklists and weighted checklists
rating a • Graphic weighted scales
• Behaviourally anchored rating scales (BARS)
performance • Management by objectives
• The balanced scorecard
• Web-enabled performance management.
 Providing performance feedback

Before the interview, the rater must: During the interview, the rater must: After the interview, the rater must:

Communicate frequently with employees about Encourage ‘ratee’ participation Communicate frequently with ratees about their
their performance Judge performance, not personality performance
Receive training in performance appraisal Be specific Periodically assess progress towards goals
interviewing Make organisational goals contingent on
Be an active listener
Plan to use a problem-solving approach performance
Set mutually agreeable goals for future
Encourage employees to prepare for the improvements
interview
Avoid destructive criticism
Problems in the performance
management interview

Actual Non-data-
Infrequent Lack of
performance is based
feedback accountability
not assessed assessment
Performance
Management
rating errors
Legal requirements
The Code of Good Practice: Dismissal (Schedule 8 of the Labour Relations
Act) enjoins any person determining whether a dismissal for poor work
performance is unfair, to consider the following:
• Whether or not the employee failed to meet a performance standard.
• If the employee did not meet a required performance standard, whether
or not:
– the employee was aware, or could reasonably have been expected
to have been aware, of the required performance standard
– the employee was given a fair opportunity to meet the required
performance standard
– dismissal was an appropriate sanction for not meeting the required
performance standard.
Guidelines for managing
poor performers
• Written appraisals must be conducted at all levels in the
organisation and must never be backdated or altered later. All raters,
whether supervisors, subordinates, peers, or customers, must be
trained in evaluation procedures.
• Standards must be job-related and must be consistent, explicit, and
objective.
• Rater errors must be guarded against.
• Problem areas must be identified.
• Timetables and specific goals for improvement must be established
when substandard performance is identified.
• Employees must be given clear opportunities to respond to negative
feedback.
• Written evidence must be provided that the employee received the
performance evaluation.
• Past performance evaluations must be checked for evidence of poor
performance, especially if there are grounds for dismissal.
Making appraisals enjoyable, productive and successful

Review
Preparation Assessment
documents

Appropriate Deliver the

Encouragement
setting feedback clearly
Knowledge management (KM) is a
discipline that promotes an integrated
approach to identifying, capturing,
evaluating, retrieving, and sharing all
of an organisation’s information assets.
Performance management during Covid-19
Companies need to redefine their goals and targets and consider what can be
achieved with limited manpower.

Performance goals will have to be re-evaluated and negotiated with each

employee.

Well-defined goals will bring transparency, dedication, and a sense of ownership

to the employees in a tough situation.

Managers should be in constant touch with their teams and keep them motivated
and updated about tasks and goals for functioning efficiently.
Discussion questions
• Compare and contrast performance management and performance appraisals.
• Amahle is the knowledge manager at a large financial institution. She is preparing
a presentation on the importance of knowledge management to performance
management and organizational performance. What are the key aspects she should
include in her presentation?
• Ebrahim has just had a performance feedback interview in which he felt he was
not allowed to participate. Outline the framework of activities that the interviewer
(rater) should ensure take place before, during, and after a performance feedback
interview, which will assist in the interview being both developmental and
evaluative.
• In the context of performance management and the 4IR, outline two ways
technology has evolved performance management and discuss the advantages of
these aspects.