Defintion

 Performance management is a continuous process of identifying,

measuring, and developing the performance of individuals and teams
and aligning performance with the strategic goals of the organization.

 Continuous process: -
performance management is ongoing. It involves a never
ending process of setting goals and objectives, observing performance,
and giving and receiving ongoing coaching and feedback.
 Alignment with strategic goals:-
 Performance management requires that managers ensure
that employees’ activities and outputs are congruent with the
organization’s goals and, consequently, help the organization gain a
competitive advantage performance management.
Determinants of performance:
 
 What factors cause an employee to perform at a certain
level? Why do certain individuals perform better than
others? A combination of three factors allows some
people to perform at higher levels than others
 Declarative knowledge
 Procedural knowledge and
 Motivation
 Declarative knowledge is information about facts and
things include information regarding a given task’s
requirements, labels, principles, and goals.
 Procedural knowledge is a combination of knowing

what to do and how to do it and includes cognitive,

physical, perceptual, motor, and interpersonal skills.
 Motivation involves three type of choice behaviors.
 Choice to expand.
 Choice of level of effort.
 Choice to persist in the expenditure of that level of

effort.
  
 It summarizes the components of declarative
knowledge, procedural knowledge, and motivation. All
three determinants of performance must be present for
performance to reach high levels. In other words, the
three determinants have a multiplicative relationship,
such that
 Performance= declarative knowledge * procedural

knowledge * Motivation
 Approaches To Measuring Performance:
 There are three approaches that can be used to measure

performance: the trait, behavior, and result approaches.

 Trait approach:
 The trait approach emphasizes the
individual performer and ignores the specific situation,
behaviors and results.

 Behavior Approach:
 The behavior approach
emphasizes what employees do on the job
and does not consider employees’ traits or
the outcomes resulting from their behaviors.
This is basically a process-oriented approach
that emphasizes how an employee does the
job.
 Results Approach:
 The results approach emphasizes the
outcomes and results produced by the employees.
 Diagnosing cause of poor performance
 There are two main causes of performance problems
 Employee characteristics
 System characteristics
 Other causes:
 Employee characteristics:
 Employee skill levels
 Motivation
 Ability
 Training
 System characteristics:
 Managerial behavior
 Allocation of resources
 The effects of colleague behavior
 Other causes:
 Knowledge
 Attitude
 Competency and behavior
 Business goals