HRM323 Information Sheet 6 Performance Management

HUMAN RESOURCE
MANAGEMENT
BACHELOR OF SCIENE IN INFORMATION

Program :
SYSTEM
Course Code : HRM323
Course Title : HUMAN RESOURCE MANAGEMENT
Course Credit : 3 units/54 hours
BULACAN POLYTECHNIC COLLEGE

Bulihan, City of Malolos
Human Resource Management
MODULE MATERIALS
List of Modules
MODULE
No. MODULE TITLE
CODE
1 Human Resource Management: An Overview HRM323-1
The Environment of Human Resource Management
2 HRM323-2
in the Philippines
3 Human Resource Planning HRM323-3
4 The Recruitment Process HRM323-4
5 The Selection Process HRM323-5
6 PERFORMANCE MANAGEMENT HRM323-6
7 The Training Process HRM323-7
8 The Compensation Program and How to Manage It HRM323-8
9 Employee Benefits HRM323-9
10 Promoting Health and Safety HRM323-10
11 Employee Relations and Discipline HRM323-11
Bachelor of Science in Bulacan Date Developed:

Information System January 2024
Polytechnic Date Revised: Page 2 of 20
Human Resource College
Management Document No. Developed by:
Melannie Bautista Revision # 00
HRM323 c/o Admin
PERFORMANCE
MANAGEMENT

HRM323 c/o Admin
MODULE CONTENT
COURSE TITLE : HUMAN RESOURCE MANAGEMENT
MODULE TITLE : PERFORMANCE MANAGEMENT
NOMINAL DURATION : 3 Hours
SPECIFIC LEARNING OBJECTIVES:

At the end of this module, you MUST be able to:
1. Define performance management.
2. Describe the various uses of performance management.
3. Explain the performance management process.
4. Discuss what aspects of performance are evaluated.
5. Identify common problems in performance management.
TOPICS:
1. Definition of Performance Management
2. The Various Uses of Performance Management
3. The Performance Management Process
4. The Evaluation of Performance Aspects
5. The Common Problems in Performance Management
ASSESSMENT METHODS:
• Written examination
• Recitation
REFERENCE:
Supangco, V., Los Banos, J., & Ocampo, K. T. (2021). Human Resource
Management in the Philippine Context (1st ed.). University of the
Philippines Press. (Original work published 2021)

HRM323 c/o Admin
INFORMATION SHEET 323-6
Performance Management
Learning Objective/s:
At the end of this module, you SHOULD be able to:
1. Define performance management.
2. Describe the various uses of performance management.
3. Explain the performance management process.
4. Discuss what aspects of performance are evaluated.
5. Identify common problems in performance management.
Introduction
Since employees are part of the organization, they must be properly
placed and motivated to ensure they perform to their fullest potential. In this
chapter, the discussion focusses on the main process where employees’
performance is managed.
What Is Performance Management?

Performance management is a process by which organizations and
employees align with expected behaviors and outcomes, evaluate performance
against these expectations, and provide appropriate actions.
One of the pervading perceptions on performance management is that it

is limited to assessment and evaluation. This is only half true. Inasmuch as
this is a periodically scheduled event in an employee's life cycle, the heart of
performance management is in the everyday conversations between the
manager and his or her direct reports on the task at hand and their
partnership in delivering results. In these conversations the relationship
between the manager and direct report is also built and developed. Receiving
feedback in the last six months is one of the cornerstones of employee
engagement. Employees deem it fair when managers discuss their performance
with them (Wagner and Harter 2006). Feedback does not have to be formal. A
manager's simple act of regularly catching up with employees has positive
effects. Employees may feel properly compensated and plan on staying. They
may also recommend the organization as a great place to work in (Wagner and
Harter 2006). Business units which scored in the upper quartile of this

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statement in Gallup's Q12 tend to have 15 percent higher productivity than
those which scored lower (Wagner and Harter 2006).
Objectives of Performance Management

Performance management has evolved through the years, initially using
the process to document performance discussions to provide the organization
information necessary for personnel decisions (Wendt 2014). From a mere
administrative tool, performance management could be a powerful driver in
creating a high-performance culture. There are three main objectives of
performance management.
First, performance management aims to align the whole organization

with its strategies and objectives. For an organization to function in concert, its
strategies and objectives should be clearly translated into strategies and
objectives for each department or division, group or team, and individuals. The
performance management process facilitates communication and buy-in
through all these levels.
As the organization works toward these strategies and objectives, the

performance management process enables management to track employees'
progress. It provides the avenue for feedback and fine-tuning of plans and
actions to enable successful achievement of these strategies and objectives.
Aside from tracking results, the performance management process also

aids in promoting company values and desired behaviors. Some organizations
include values in their criteria as tools to assess performance, stressing the
point that organizations are concerned not only in what tasks were done but in
how these were done.
The second objective of performance management is to develop the

organization's capabilities. In setting and reviewing objectives and performance,
individual and group capabilities are brought to light and assessed whether the
current capabilities are enough to deliver the desired results and identify
further development activities to ensure successful achievement. Because of
this natural link, performance conversations pave the way for development
discussions and even career conversations.

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Lastly, performance management aims to facilitate the documentation of
group and individual performance in the organization. This flows into other HR
processes such as employee regularization or confirmation promotion or
demotion, rewards management, and employee discipline, among others.
Theoretical Bases of Performance Management

Successful management of performance lies in understanding not only
what makes individuals perform but also how they perform. At the core of
performance is motivation. Several motivation theories play vital roles in
performance management. Goal setting theory (Locke and Latham 1984)
argues that clear and challenging goals motivate individuals to perform. The
motivational effect of having clear and challenging goals can be explained by
several processes. Goals provide direction; a goal encourages individuals to
develop strategies and to direct their actions toward that goal. Also, having a
goal helps individuals determine the amount of time and effort to devote in
accomplishing such a goal and sustain efforts until that goal is reached (Locke
and Latham 1990). There are two kinds of goals: performance goals and
developmental goals. The former are specific goals on key results of the
organization, while the latter are goals that pertain to inputs, such as skills
and knowledge, to achieve these performance goals.
In addition to goal setting theory, expectancy theory on one hand

provides a theoretical foundation of performance management. Expectancy
theory claims that individuals will be motivated to work toward particular
outcomes that are of value to them if they expect that their effort will lead to
performance, and such performance leads to rewards (Vroom 1964). So, in
relation to goal setting, there must be a balance between challenging goals and
realistic and achievable goals. When goals are too difficult, the expectation of
achieving them reduced, thus, the process is broken.
Moreover, to ensure the performance of goals, feedback is necessary.

Feedback is the process of providing information to an employee about his or
her performance. Feedback allows the individual employee to adjust efforts to
ensure goal attainment; it can be positive or negative. Positive feedback tends
to build up a person's confidence and self-efficacy thus increasing the
disposition to achieve goals (Bandura and Cervone 1983). On the other hand,
negative feedback provides information on performance gaps that gives the
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person the opportunity to develop new strategies or increase effort to close
such gaps (Higgins 1987; Locke and Latham 1990).
Reinforcement theory argues that a behavior that is reinforced is

repeated (Skinner 1938). Hence, while feedback tells the employee what has
been done right or what else needs to be done, reinforcement ensures that
what is done correctly or positively is repeated. Consequences influence
behavior. They can be pleasant or unpleasant. A behavior may be intensified
when it is followed by a pleasant consequence such as a promotion or merit
increase. This is called positive reinforcement. A behavior may also be
reinforced when it is followed by a withdrawal of a negative consequence such
as a reprimand or dismissal. This is called negative reinforcement. On the
other hand, behavior may be weakened by punishment. One example is
presenting negative consequences like suspending an employee for a
wrongdoing in an organization or the removal of a positive consequence such
as deducting a specific amount of time from the allocated vacation leave for
every instance of tardiness. In addition to punishment, a behavior is also
weakened due to extinction. This occurs when a desirable behavior that has
been previously reinforced no longer gets any reinforcement, or when the
reinforcement has become unimportant or irrelevant to the employee. Hence, it
is important for the organization to determine what behavior or results are
important to the organization to be included in appraising performance and
choosing the appropriate rewards and punishment to enhance the behaviors
desired by the organization.
The abovementioned theories provide the general framework of

performance management: goal setting, performance reviews (feedback), and
rewards. The following section discusses the details of the performance
management process.
The Performance Management Process

Performance management is a yearlong cyclical process that is also
aligned with the organization's fiscal year cycle. The organization may opt to
conduct formal assessment more than once a year, but the feedback and
performance communication conducted are continuous.
• Step 1: Expectation Setting and Development Planning

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At the start of the performance management year, employees and
managers discuss expectations around objectives, competencies, values,
and behaviors. Discussions about development and succession are also
done during this time. This is a great touch point to understand
employees' career aspirations and the manager and employees jointly
Come up with a plan to support them. It also sets a motivating tone for
the year when employees have a clear idea of what is expected of them
and what support they could get to deliver on those.
• Step 2: Performance Reviews

To effectively support employees in delivering the objectives and the
desired results, a periodic review is needed. Some organizations do
reviews twice a year while other organizations do quarterly reviews.
During these review discussions, the employee and manage discuss if

they are on track achieving the expectations and what further support is
required. Discussion on development is also key.
During a review meeting, a conversation around performance takes

place, more than just providing rating for the achievement of the goals.
Results and measures are discussed in light of how they continue to be
on course, how to ensure that by year-end they would have achieved the
desired results, and what they need to do for these to happen.
Organizations at times dedicate a review period (midyear, for example) in

evaluating competencies. This evaluation feeds into the development
discussion rather than a performance discussion.
In addition to semiannual or quarterly reviews, there are the annual

reviews. Some organizations only conduct an annual review for
evaluating performance. During an annual review, the employees' final
results vis-à-vis objectives are discussed. This is also a good opportunity
for the employee and manager to review and reflect on what strategies
worked and which did not and to apply these learnings in the succeeding
year.

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Aside from reviewing the results, the employee and manager could
discuss the "how’s" or the behaviors and values displayed. Organizations
are bound by a code of ethics and have also outlined their organizational
values that govern their ways of doing things. One of the ways in which
values are ingrained in the culture and everyday behavior of employees is
by integrating the evaluation of this with the performance management
system.
• Step 3: Rewards
What normally differentiates the annual review from the midyear or
quarterly review is that results during the former period are rated and
the corresponding rating is translated into various consequences:
• Salary increment
• Bonus
• Incentives
• Promotion
• Succession plan
In many organizations, prior to finalizing the ratings, these go through a

calibration process to ensure alignment with standards and overall
organizational equity. Aside from the manager and employee, department or
division managers also get involved, including the human resource
management unit, and sometimes even the country head. In most
multinational corporations, even the regional leadership (regional geographical
groupings such as Asia Pacific or ASEAN) and global leadership review the
ratings and have the final stamp of approval.
During calibration meetings or reviews, the individual results are

compared with the group to check whether the ratings are fair. Norming, or
analyzing the organization's ratings within the normal curve, could also be
done. However, organizations should take into consideration the degree of
normalcy of the overall results and other relevant factors. If the organization's
results are more than the expected outcomes, then it could follow that
individual results would be positively skewed.

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What Is Evaluated?
Different organizations may choose to evaluate different dimensions as
part of an employee's performance. The dimensions chosen to reflect what
factors are important to the e organization. Normally, these are the following:
• Results in relation to objectives
• Competencies
• Value and behavior displayed
• Development plan
Results in Relation to Objectives

For organizations following a "management by objective" framework,
objectives are set at the start of the performance management year. Beginning
with key result areas (KRAs) such as revenue, market share, and the like,
specific objectives are set. Around these objectives, key performance indicators
(KPls) or specific measures of success are identified as well. At the end of the
year, the individual's results or outputs against these objectives are evaluated.
For example, how much revenue was achieved? Was this above or below the
target?
Competencies
Competencies are the skills, knowledge, and other related behaviors that
an individual needs to have in order to perform a task successfully. Some
organizations opt to include competencies in their performance management
evaluation. There are many ways of evaluating competencies such as the use of
a standardized tool, while some use narratives where an individual records
his/her own display of the competencies and compares this with a predefined
rating scale.
For example, when an organization wants to assess customer

orientation, it may use a scale, which consists of several questions presented to
the evaluator to determine customer orientation. A sample orientation question
is: The employee greets customers immediately upon entering the store. The
behavior that is assessed may be rated using the following Scale: 5 – Always; 3
– Sometimes; 0 – Never, Table 7.1 presents an example of assessment using
narratives.

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Employee Manager Final
Comments Comments
Rating Rating Rating
Competent I have received Below She has displayed Below
various Competent customer orientation Competent
commendations from although
the Annual Customer inconsistently.
orientation survey. Inconsistence come
up especially in
stressful situations
where she tended to
choose efficiency over
customer orientation.
Table 6.1. Customer Orientation Assessment
Scores on competencies may form part of the overall performance rating

of an employee. However, some organizations prefer to use competency
assessment as a feedback and training needs analysis tool, but scores are not
included in the overall performance rating.
Values and Behaviors Displayed

Organizations that are serious in integrating values and behaviors in
their organizational cultures make values and behaviors part of the
performance management evaluation. A narrative form can be used to evaluate
individuals who record exemplars and critical incidents on how they displayed
these values and behaviors. These are then evaluated against a set rating scale.
The ratings for values and behaviors normally add up to an overall rating for
the individual.
Development Plan
Development plans are normally discussed during year-end reviews and
are evaluated in terms of how both the individual and have achieved the plan.
This discussion feeds into the development planning for the year ahead and
does not normally add up to the overall rating of the individual. The
achievement of the development plan may be part of the objective to ensure
focus for both individual and manager.
Rating Scales
The evaluation of the different aspects of performance is standardized
using rating scales. Below is an example of a rating scale:
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• Not Achieved (1) - The individual was not able to achieve any of the
parameters of the objective (i.e., 49 percent and below).
• Substantially Achieved (2) - The individual was able achieve a substantial
amount of work but not enough to reach the goal (i.e., 50-99 percent).
• Achieved (3) - The individual was able to achieve the goal (i.e., 100
percent).
• Exceeded (4) - The individual was able to exceed the goal (i.e., 101
percent +).
Competencies and values rating s scales may be worded differently to

capture their essence. Competencies may be rated against a scale on level of
expertise while values may be rated against a scale on level of role modeling.
Example: Competency rating scale on leadership skills:
1 - Needs development
2 - Developing
3 - Competent
4 - Proficient
5 - Expert
Values rating scale

1 - Does not demonstrate
2 - Demonstrates
3 - Role model
The different aspects of the performance management evaluation are

then consolidated based on a mix the organization sets. For example, an
organization may require an 80 percent achievement of objectives + 20 percent
display of values. Some organizations may also have a more philosophical
outlook in that they give 100 percent to both achievement of objectives and
display of values. In a sense, the achievement of objectives has to be guided by
values at all times. A 100 percent achievement of objectives cannot be justified
by a poor display of values.
Who Evaluates?
Organizations have a different mix of evaluators. Most of the time, they
are called in to evaluate performance. Appraisers are chosen based on the
degree of their knowledge about the performance of the employee. In addition,
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individuals who know the context of the direction of the organization are also
called on to become part of the pool of evaluators. Thus, depending on the
thrust of the organization, the following may be asked to assess performance:
employees, direct supervisor, or the manager's one-up manager; other higher-
level managers Such as a division or department manager; the CEO; general
manager or country manager, or regional functional managers; and
stakeholders, customers, and peers.
Self-appraisal, or the appraisal by the employee of one's performance, is

an important component of the performance appraisal system. Although this is
not practiced by all organizations, self-appraisal is a good opportunity for the
employee to remind the manager of one's accomplishments and challenges
because the manager may not remember all accomplishments of all employees
under the unit, and the best source of information of employee performance is
the employee him/herself. The employee is the one who does the actual work
and knows the job intimately. The employee would know what helps or hinders
performance, and this could make for an enriching discussion not only of
his/her own individual performance but the performance of the team, division,
or even the organization. It also clarifies points of differences between self-
rating and how managers or supervisors perceive an employee's performance.
The performance management system and process support the manager

in efforts to bring out the best performance of direct reports. The direct
supervisor or manager is in charge of giving assignments and is responsible for
ensuring that the assignment is carried out. If the sole evaluator would be the
supervisor or direct manager, the performance management process will still
work.
Managers in higher level positions such as the one-up manager (or the
manager's manager), division or department manager, and even the CEO,
general manager, or country manager are also involved in the performance
management process. During annual reviews, the evaluation by these higher-
level managers is important to contextualize the individual's performance
within the organization. Their role is to provide a broader perspective, challenge
ratings, and align the individual evaluation with the organization's
performance.

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In multinational organizations or in large organizations or conglomerates,
an overall functional leadership exists, and some are also driven from this end.
It is then applicable to let them evaluate an individual's performance specific to
the objective that is relevant to this group. For example, a common objective of
a finance manager is specific to the country's needs. However, such a manager
is also part of a regional working group for a new financial reporting system.
For this particular project, the country finance manager will be evaluated by
the project manager who may be part of the regional functional leadership
group. The rest of the objectives will then be evaluated by the managers
immediate manager.
Organizations may seek the inputs of stakeholders, customers, and

peers. This is called a 360-degree robust appraisal system. These people
provide different perspectives on the performance of an individual. Thus,
feedback provided to the individual is valuable. Including these feedback in the
performance management evaluation will make it more substantial. However,
these stakeholders, customers, and peers also come into the picture with a
limited view of the individual's performance and will therefore not be able to
provide a holistic and objective view of the performance. The process is complex
and thus should be approached with great care.
Common Problems Associated with Performance Management

Performance management is not a foolproof system and is not foolproof
system and is not entirely black and white. There are several problems
associated with it. Problems can emanate from the performance, which
includes the instrument and the managers applying the instrument, and from
the process itself.
There are several problems associated with performance appraisal (Laird

and Clampitt 1985). One of the key problems is the level of truthfulness in the
assessment. Managers tend to skew the level of detail and the ratings
depending on the purpose of the appraisal. If it is purely for feedback purposes,
they would be very candid. If it impacts on promotion opportunities, etc., they
would be more general and careful not to jeopardize future promotion
opportunities and the like (Laird and Clampitt l985).

HRM323 c/o Admin
In addition, managers can be subjective in applying the ratings. The
rating scale may not be 100 percent objective. This is because raters rely on
shortcuts or simplify processes when evaluating people. Riggio (2008) compiled
judgment errors frequently associated with performance management. These
are judgment errors because they affect how one rates, thus ratings are not
reflective of true performance or are inaccurate.
Leniency, Severity, and Central Tendency Errors

These types of errors are determined when one looks at the ratings given
by a rater on several ratees. Leniency error occurs when the rater has the
tendency to give positive ratings on all ratees. On the other end is the severity
error where raters have the tendency to give negative ratings on all ratees. At
the middle ground is the central tendency error where raters give average
scores to all ratees.
Halo and Horn Effects

The halo effect occurs when one positive characteristic influences overall
performance rating toward being positive. For example, a ratee comes to the
office on time and leaves the office late. If punctuality is one of the dimensions
a ratee is assessed on and the manager is impressed by such behaviors and
rates the employee positively, the manager’s decision on the other aspects may
be affected by the employee's punctuality even if his/her performance in these
aspects may not necessarily be positive. On the other hand, the horn effect
occurs a negative characteristic influences overall performance rating toward
being negative. For example, a manager rates an employee negatively on
tardiness and such an assessment clouds other aspects of performance.
Recency Effect
Recency effect occurs when a manager bases ratings on performance
during the periods proximal to rating, or the performance during more recent
periods has greater weight compared to earlier performance in the overall
performance ratings. An example is an employee who did a great job in the
beginning of the year but encountered challenges in the end, thus resulting in
low performance. Overall, the performance should be average. However, a
manager affected by the recency effect could penalize the employee more than
necessary.

HRM323 c/o Admin
Similar-to-Me Effect
This pertains to the tendency of the raters to rate positively those who
are similar to them personally or professionally. Thus, employees who are
similar to the rater in terms of gender, race, attitude, and other facets the rater
finds useful in evaluating tend to be rated more positively.
In addition to errors in performance appraisal introduced by the rater,

the quality of the instrument also contributes to errors in rating. Rating scales
may have broad definitions, so managers find it difficult delineating what level
of performance constitutes specific ratings, such as in "Achieved" or
"Exceeded." Some organizations indicated numerical equivalent especially for
objectives that are measurable. For example, in assessing sales results, 101-
110 percent is "exceeded"; 100 percent is achieved, and 90-99 percent is
"substantially achieved." But for more complicated objectives that are n not
clearly measurable, applying the rating scale is subject to the manager's
standards.
Another source of error is ill-defined objectives, which are usually

encountered at the end of the performance management process. This becomes
a serious problem because by then, it is too late to change or clarify these
objectives. It is therefore imperative for employees and managers to thoroughly
take the time to discuss objectives. Objectives should be clear as well as the
bases of these objectives, and how these are to be rated. Some objectives also
change during the course of the year so there must be constant communication
on how these will be managed in terms of what the business requires and how
these can be captured in the performance management process. It is common
for organizations to align and tweak objectives with just cause as long as the
changes are thoroughly discussed.
In order to minimize the impact of these problems, organizations need to

pay attention to performance management. To avoid committing perceptual
errors in performance management, organizations can provide training to
identify these perceptual errors. Awareness of what they are and what they can
do to performance management will enable the manager to knowingly avoid
them. Aside from training to mitigate the effects of perceptual errors that are
focused on individual employees, managers are encouraged to take note of

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critical incidents to avoid errors such as halo, recency, and similar-to-me
effects.
Moreover, to minimize the impact of perceptual errors that affect the

whole department or unit, organizations also have calibration meetings to help
standardize ratings and temper biases. Calibration meetings put a check on
managers who tend to rate with leniency, severity, or lean on the average. This
should keep managers in check throughout the rating process.
Performance management is a competency to be developed. The strength

of the performance management system falls in the hands of the managers who
lead the process. They not only have to be trained to rate skillfully, being aware
of possible biases to watch out for, but they also need to be involved in the
development of the process and be familiar with the specific performance
appraisal instrument. They also have to be skilled in giving effective feedback,
especially in setting objectives, so that problems related to such will be
identified in the early stages of the performance management cycle. Feedback
and discussion are critical for employees to benefit from the performance
management process.
There are several problems associated with performance appraisal (Laird

and Clampitt 1985). One of the key problems is the level of truthfulness in the
assessment. Managers tend to skew the level of detail and the ratings
depending on the purpose of the appraisal. If it is purely for feedback purposes,
they would be very candid. If it impacts on promotion opportunities, etc., they
would be more general and careful not to jeopardize future promotion
opportunities and the like (Laird and Clampitt l985).
In addition, managers can be subjective in applying the ratings. The

rating scale may not be 100 percent objective. This is because raters rely on
shortcuts or simplify processes when evaluating people. Riggio (2008) compiled
judgment errors frequently associated with performance management. These
are judgment errors because they affect how one rates, thus ratings are not
reflective of true performance or are inaccurate.

HRM323 c/o Admin
Leniency, Severity, and Central Tendency Errors
These types of errors are determined when one looks at the ratings given
by a rater on several ratees. Leniency error occurs when the rater has the
tendency to give positive ratings on all ratees. On the other end is the severity
error where raters have the tendency to give negative ratings on all ratees. At
the middle ground is the central tendency error where raters give average
scores to all ratees.
Halo and Horn Effects

The halo effect occurs when one positive characteristic influences overall
performance rating toward being positive. For example, a ratee comes to the
office on time and leaves the office late. If punctuality is one of the dimensions
a ratee is assessed on and the manager is impressed by such behaviors and
rates the employee positively, the manager’s decision on the other aspects may
be affected by the employee's punctuality even if his/her performance in these
aspects may not necessarily be positive. On the other hand, the horn effect
occurs a negative characteristic influences overall performance rating toward
being negative. For example, a manager rates an employee negatively on
tardiness and such an assessment clouds other aspects of performance.
Recency Effect
Recency effect occurs when a manager bases ratings on performance
during the periods proximal to rating, or the performance during more recent
periods has greater weight compared to earlier performance in the overall
performance ratings. An example is an employee who did a great job in the
beginning of the year but encountered challenges in the end, thus resulting in
low performance. Overall, the performance should be average. However, a
manager affected by the recency effect could penalize the employee more than
necessary.
Experiencing HRM (Assignment)

1. Look for a performance appraisal instrument.
2. Describe its features.
3. Provide ways to improve the instrument.

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Issues for Resolution
The HR manager of an organization recently received complaints from certain
employees who felt that they were not being rated fairly through their
Performance Management System. According to these employees, one team was
rated poorly while another team was rated highly by different managers even if
their performance results were
quite similar.
a. What could be the problem?
b. What perspectives or frameworks can you use to identify solution to the
problem?
c. What could the organization do to address the issue?

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HUMAN RESOURCE

BACHELOR OF SCIENE IN INFORMATION

Course Code : HRM323

Course Title : HUMAN RESOURCE MANAGEMENT

Course Credit : 3 units/54 hours

BULACAN POLYTECHNIC COLLEGE

Bachelor of Science in Bulacan Date Developed:

Bachelor of Science in Bulacan Date Developed:

COURSE TITLE : HUMAN RESOURCE MANAGEMENT

MODULE TITLE : PERFORMANCE MANAGEMENT

NOMINAL DURATION : 3 Hours

SPECIFIC LEARNING OBJECTIVES:

Bachelor of Science in Bulacan Date Developed:

What Is Performance Management?

One of the pervading perceptions on performance management is that it

Bachelor of Science in Bulacan Date Developed:

Objectives of Performance Management

First, performance management aims to align the whole organization

As the organization works toward these strategies and objectives, the

Aside from tracking results, the performance management process also

The second objective of performance management is to develop the

Bachelor of Science in Bulacan Date Developed:

Theoretical Bases of Performance Management

In addition to goal setting theory, expectancy theory on one hand

Moreover, to ensure the performance of goals, feedback is necessary.

Reinforcement theory argues that a behavior that is reinforced is

The abovementioned theories provide the general framework of

The Performance Management Process

Bachelor of Science in Bulacan Date Developed:

• Step 2: Performance Reviews

During these review discussions, the employee and manage discuss if

During a review meeting, a conversation around performance takes

Organizations at times dedicate a review period (midyear, for example) in

In addition to semiannual or quarterly reviews, there are the annual

Bachelor of Science in Bulacan Date Developed:

In many organizations, prior to finalizing the ratings, these go through a

During calibration meetings or reviews, the individual results are

Bachelor of Science in Bulacan Date Developed:

Results in Relation to Objectives

For example, when an organization wants to assess customer

Bachelor of Science in Bulacan Date Developed:

Scores on competencies may form part of the overall performance rating

Values and Behaviors Displayed

Competencies and values rating s scales may be worded differently to

Values rating scale

The different aspects of the performance management evaluation are

Self-appraisal, or the appraisal by the employee of one's performance, is

The performance management system and process support the manager

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Organizations may seek the inputs of stakeholders, customers, and

Common Problems Associated with Performance Management

There are several problems associated with performance appraisal (Laird

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Leniency, Severity, and Central Tendency Errors

Halo and Horn Effects

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In addition to errors in performance appraisal introduced by the rater,

Another source of error is ill-defined objectives, which are usually

In order to minimize the impact of these problems, organizations need to

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Moreover, to minimize the impact of perceptual errors that affect the

Performance management is a competency to be developed. The strength

There are several problems associated with performance appraisal (Laird

In addition, managers can be subjective in applying the ratings. The