Chapter#7

Performance Management
Performance Management

“Performance management can be defined as a

process by which managers ensure that employs
that activities and outputs are congruent with the
organizations goal. Performance management is
central to gaining competitive advantage.”
 An Organizational Model of
Performance Management
Organizational
strategy

Individual Individual Objective

Attributes behaviors Results

Situational
Constraints
1.Orgaizational
culture
2.Economic
conditions
Purposes of Performance
Management

Administrative Strategic
Purpose Purpose

Developmental
Purpose
Sources of Performance
Information
Managers Peers

Subordinates Self

Customers
 Manager's Role in Effective
Feedback Performance
• Feedback should be given frequently.
• Create the right Context for discussion.
• Ask employee to rate his performance.
• Minimize criticism.
• Focus on problem solving.