PERFORMANCE MANAGEMENT & AWARED STRATEGIES

Learning Log Questions:

 What are 2 concepts you learned from this lecture?
 How does this lesson relate to something you have already learned outside the
class?
 Why do you think the content of this lesson is important to strategic human
resource management?
 How does this lesson align with the course objectives?
 Any suggestion for employer?
 What idea did you get?

1. Concepts in Performance Management

Performance Management Definition:

“Continuous process of identifying, measuring, and developing the performance of
individuals and aligning performance with the strategic goals of the organization”.
(Aguinis, p. 2)

Connotation of concept:
“In an organization with a high commitment strategy the value of programme
structures to performance management would lie less in their power to fix people
than in the encouragement they give to questioning the value and contribution of
particular activities.” CH7 p.196

In my opinion, Performance management should have two components, one is

quantifiable like accounting, and the other is more important, which is value based on
marginal contribution, although it may not be quantified.
The weight of quantifiable and non-quantifiable components should depend on the
current stage of development of the enterprise, or factors such as culture, business
model, and personnel composition. The simple criterion is that the quantifiable is
more important than the unquantifiable at a time of low productivity.

Competency frameworks：
“Competency frameworks have been developed to assist this process by providing a
'map' or inventory of the competences (including knowledge, skills and behaviors)
that are needed in a job role.” CH7 p.206

In my opinion, as for competency identification, key event interview belongs to an

expert mode, while Functional analysis belongs to a structured third party observation
mode. Both methods rely on knowledge and experience level, so it should be possible
to simulate the reasoning process of subjects by exhausting decision points. This
makes it easier to carry out analyses and more accessible to key factors.
2. Concepts in Reward strategies

Strategic approach for contribution

“A major debate in reward management is to what extent employers have, in
reality, moved away from an 'essentially reactive and ad hoc approach to rewards
to one that can be described as strategic in character' (Taylor, 2000: 12).”

Performance-related payment
“Performance-related pay is a generic term used to describe a variety of variable
payment systems which rewards employees on the basis of performance
(Milkovich and Newman, 1987). It can be applied to individual, team based,
departmental, site level or company wide bonus payments which are to he
distinguished from financial participation schemes, such as share incentive
schemes intended to encourage employees to invest in the business.”(CH8 p.227)

Competence/skills-related pay
“An alternative to performance pay based on measured outputs has been
competence and skills-related pay which Armstrong (2002) defines as a method of
rewarding people wholly or partly by reference to the level of competence or skill
they demonstrate in carrying out their roles.”(CH8 p.228)

This is determined by the development stage of the enterprise:

“Variable pay has operated alongside graded pay structures, 'broadbanding'
(described by Armstrong and Brown (2001) as 'the process of compressing a
hierarchy of pay grades or salary ranges into a number of broad pay bands'),
individual job ranges and pay curves, which provide for different rates of
individual progression.” (CH8 p.233)

In my opinion, Variable wages and weights are different in different stages of

enterprise development. In addition to considering post attributes, competency and
split goals, individual motivation level should also be considered, which is of
great practical significance.

Based on the hypothesis of motivation theory, performance pay is deduced, to

infer PRP based on the hypothesis of motivation theory, as mentioned in the
textbook, hierarchy of needs theory (Y), X theory, and even theory Z outside the
textbook, can be used to make a hypothesis to improve management skills.
However, since this is a hypothesis, rather than a quantifiable and fully verified
theory, it is not suitable to make PRP based on the only consideration factor of this
hypothesis. In the practice of PRP, I think more consideration should be given to
the positive factors of employees, such as the need for growth, rather than the
compensation effect at a lower level, which is also conducive to building a
learning organization.
3. Any suggestion for employer?

PERFORMANCE MANAGEMENT
3.1 High or low performance.
Functional analysis is the form of job analysis that was used to develop the
occupational standards. When the performance score is generally high or low,
the competency analysis of a certain position is invalid.
3.2 Performance breakdown is not the way to save organization performance.
The sum of all people's performance does not equal the performance of the
organization, so never expect to be able to calculate annual goals on a
calculator.
3.3 Participation in performance policies
Employees(representatives)actively participate in the whole process of
performance management, which helps to improve the sense of identity and
organizational support.
3.4 Two-way is more important than one-way.
While not all organizations have perfect 360-degree performance plans, try
asking employees to rate their managers or employers. This at least ensures
that there is mutual trust and that both parties are treated with respect.

AWARED STRATEGIES
3.5 Focus on individual motivation, especially for knowledge jobs.
All HRM knows the average salary in the industry, and how to maintain the
loyalty and sense of identity of employees is a very important issue within the
average salary. It reflects the manager's ability to identify motivation.
3.6 A culture of fairness and transparency is the foundation of good PRP.
“There is less transparency in how pay progression is arrived at and it may
hide discrimination and inconsistencies in managerial decision-making.” (CH8
p.235)
In my opinion, even HRM can make perfect plans to achieve perfect PRP, if
the management does not have a fair and transparent culture, HRM will
 eventually become the target of public criticism.

4. New Ideas for lesson

From the study of this chapter, I believe that PERFORMANCE MANAGEMENT and
AWARED STRATEGIES can not only help enterprises build strategic performance
management, but also improve other management skills of enterprises:
4.1 Team cohesion: there is a great correlation with performance, especially in
high-tech enterprises, the cohesion index of top management team is
positively correlated with the company's financial performance index;
4.2 Familiarity of team members: the improvement of team decision-making
efficiency depends on the familiarity of team members;
4.3 Team leadership: team atmosphere has a great impact on team performance,
and leadership style has a direct impact on team atmosphere;
4.4 Team objectives: Team performance objectives can take many forms, such as
quantity, speed, quality, cost, customer satisfaction and so on;
4.5 Team motivation: not only to the collective level, but also to the individual
level of team members;
4.6 Diversity of team members: Differences in personality, gender, attitude,
knowledge background or experience affect team performance;
4.7 Quality of team members: The core quality of the team should be defined from
the aspects of knowledge, skills and attitude

5. Different from other similar lesson

Drucker said that "management is a real liberal art ", six schools of thought,
different performance management programs are also very much. Different from
other training courses, this Lesson clearly explains the core of performance
management, and also explains how to support strategic human resources. At the
same time, it also brings some cutting-edge practices, such as the invalidation of
balance scorecard.

6. Why do you think the content of this lesson is important to strategic human
resource management?
As an organization, it is important to implement performance management, which
not only affects the operation of the organization, but also contributes to its
sustainable development. The importance of performance management is as
follows:
 First, sound performance management helps to better achieve the mission and
goals of the organization. Performance management can help organizations
more accurately evaluate their methods of measuring performance. It can help
organizations identify trends and improvement opportunities, find problems
in time, and take countermeasures quickly, so as to better achieve the mission
and goals of the organization.
 Second, performance management helps to enhance employee motivation and
 effectiveness. Performance management can provide employees with clear
feedback and evaluation, help to better motivate and manage the behavior of
employees, promote their career development and quality improvement, and
improve the effectiveness of the organization.
 Third, sound performance management can help organizations improve
management efficiency and quality. Performance management can effectively
reduce unreasonable management behaviors and operations, and then reduce
costs, improve the efficiency of enterprises, ensure the quality of products
and services, establish a good corporate image, and make contributions to
improving the influence and competitiveness of enterprises.
 In addition, sound performance management can build a safe and harmonious
working environment. Because performance management can ensure that the
rights and interests of employees are fully protected, but also can promote the
cooperation between employees, establish a safe and harmonious working
environment, so as to maintain the stable development of the organization.
Overall, performance management is of great significance to the development of
organizations and is an essential tool for organizational management. Performance
management requires the organization to establish an effective incentive
mechanism, provide a good office environment, formulate scientific and
reasonable policies to promote and improve performance, and maintain certain
motivation, so as to keep the vitality of the constantly developing organization.

7. What idea did you get?

Adhering to the idea that "management is neither good nor bad, and suitability is
truth", I began to analyze Chinese and Western culture and management process.
Modern management originated from the United States, attaching importance to
equality, contract and law; Japanese management emphasizes "the process of
living together and prospering together", and the team spirit is above all else.
Chinese management lays particular stress on ethics, morality and common sense.
Most of China's private enterprises have not been established for a long time, are
not strong, management is arbitrary, lack of systematic management, enterprise
development goals are not clear, with the following characteristics:
7.1 Enterprise founders and leaders are "big stewards", who have all the power in
one body. Their behavior and leadership style basically determine the style of
the enterprise. While most bosses are more personal color, do everything by
themselves, the concept of the system is weak, and the evaluation of
employees' work is subjective and arbitrary.
7.2 The core of enterprise strategy is the acquisition of enterprise survival and
operating benefits. Management must be centered on business volume or sales
volume, so the enterprise has no clear development goals and is often in the
period of adjustment and change.
7.3 The enterprise management is flat, the system and process are not perfect, and
the enterprise candidates focus on the identity and loyalty to the corporate
culture, professional ethics and the ability to learn and improve themselves are
 ignored. Therefore, most of the backbone employees of the enterprise are
related by blood, hometown and learning, and they are often negligent in
observing the enterprise system and process.

As a direct management responsibility for people, things and things in the

enterprise, we often ignore the above characteristics of the enterprise, blindly to
carry out the latest, the most comprehensive, the most complex assessment way
as its own responsibility, and strive to achieve performance management in one
step, thus causing mistakes in the performance assessment, management
operation process.