Southwood School – A Case Study

Performance Management Systems

By Fiona Robson
Areas covered in this presentation

• What is performance management (PM)?

• The differences between PM and performance
appraisal.
• The benefits of PM:
> To the organization.
> To managers.
> To employees.
• An introduction to the case study organization.
• Best practices in PM.
• Practical issues surrounding PM

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Differences between performance management
and performance appraisal

Armstrong (2006) defines performance

management as:
“the formal assessment and rating of individuals by their
managers”

The same author defines performance appraisal

as:
“a continuous and much wider, more comprehensive
process… which clarifies mutual expectations and
emphasizes the support role of managers”

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Overview of differences

Performance Appraisal Performance Management

Top down-assessment Joint process through dialogue

Annual appraisal meeting Continuous review with one or more

formal reviews
Use of ratings Ratings less common

Monolithic system Flexible process

Focus on quantified objectives Focus on values and behaviors as

well as objectives
Often linked to pay Less likely to be directly linked to pay

Owned by the HR department Owned by line managers

Source: Armstrong and Baron (2005)

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Benefits to the organization

• Demonstrates the organization’s commitment

to the development of its staff.

• Contributes to meeting accreditations

standards, such as Investors in People in the
UK.

• Provides the opportunity to ensure all

employees are aware of the goals and
objectives of the organization and the role that
they have to play in this process.

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Benefits to managers

• Facilitates a two-way dialogue with their staff.

• Identifies any potential issues.
• Enables managers to gain a greater
understanding of the motivation and future
plans of their staff.
• Provides an opportunity to disseminate goals
and objectives to employees.
• May lead to a more motivated and
communicative workforce.

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Benefits to employees

• Clarifies their expectations.

• Enhances their understanding of the
contribution they make to the organization.
• Provides an opportunity to have a discussion
with their manager and talk about any issues: a
two-way process.
• Provides recognition of strengths and
achievements.
• Helps identify development opportunities.

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Southwood School: Contextual information

• High School in the UK (state school)

• Established nearly 40 years ago
• 800 students aged 13-18
• 120 staff
> 80 teachers
> 40 support staff (nonteaching staff)
• Average staff retention rate: 72%
• Average length of service: 5+ years

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Southwood School:
History of performance management

• The teachers are required by law to follow the

government-mandated performance
management process.
• In the past, the support staff have used the
same process.
• Support staff are unhappy at taking part in a
process, which is largely inappropriate.
• Performance management is perceived quite
negatively by the majority of support staff.

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Best practices for PM

• Both parties should be prepared for meetings

and dedicate their time.
• Appraisers must show their commitment to the
process to engage appraisees.
• It should be a two-way process where issues
are discussed.
• Effective training must be provided to meet the
needs of appraisers and appraisees.
• There should be no surprises at the review
meetings; any prior incidents should have been
dealt with after the event.

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Practical issues: An overview

• Who should carry out performance

management interviews?
• How often should they be carried out?
• When should they be reviewed?
• What is the focus and purpose?
• How structured should they be?
• How can they be monitored?

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Terminology used in this case study

Appraiser—the manager who is taking part in the

performance management process by reviewing
past performance and looking to the future with
the appraisee (employee).

Appraisee—the employee who is the ‘subject’ of

the performance management process. He or she
will take part in the discussions with the appraiser
(usually the line manager).

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Now you are ready to read the Southwood
School Case Study

• When you have read the case study, there are

a number of activities to help develop your
understanding of performance management.

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References

Armstrong, M., & Baron, A. (2005). Managing

Performance: Performance Management in
Action. London: CIPD

Armstrong, M. (2006). A Handbook of Human

Resource Management Practice. 10th edition.
London: Kogan Page.

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