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HR Insights 

25th March 2013 
 
How does Performance Management Benefit Business? 
 
The way in which performance is managed, has changed in recent years and it is now widely acknowledged that the way in which individuals perform, will contribute to the overall performance of the Organisation and where relevant, to the ‘bottom-line’ results of the business. The shift in how performance is managed can be summarised as follows: - 
FROM 
TO 
An annual event 
A continuous process 
Assessment Only 
Assessment and Development 
Superficial evaluation of personality 
Specific evaluation of behaviour 
Loosely conducted around the business cycle 
Closely aligned to the business plan and planning cycle 
Superficial objectives 
Specific and measurable objectives 
If performance management is going to work within an Organisation, there needs to be a clear vision of where they want to get to and how they intend to get there. It is essential for Organisations to communicate with employees, their: - 
Adapted from “Mission Vision and Strategy Development” Campbell & Gould 
Financial Times Handbook of Management 1985 
 
Organisations who implement a balanced approach to performance management can benefit from this in the following ways:- 
having clarity on the organisation’s goals and vision 
a sound framework for linking strategies and priorities to individual roles 
clear understanding of the requirements in each individual’s roles 
support to employees 
recognition of successes 
fair and consistent structures for employees to progress through the Organisation 
framework for development and improvement 
 
What then are Performance Appraisals and how do these fit in? 
The Collins English Dictionary defines an Appraisal as being: - 
“An assessment of the worth or quality of a person or thing” 
Although an accurate definition, it is somewhat clinical in its description of an Appraisal. Appraisals are most commonly thought to be the meeting that takes place between an individual and their line manager to discuss their performance however; this is just one component of the process as illustrated in the Performance Appraisal Model below... 
Each of these stages will be reviewed in detail in future blogs... 
Our Blog archive can be accessed here... 
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