Performance Management

Performance Management Definition:

Helps to contribute to the effectiveness of the management of individuals and teams in an organisation, as to to help with the performance of the organisation. To achieve this it needs to be made that everyone shares the same understanding of objectives and targets.

The ‘Big Idea’ (Purcell, 2003)

From some research which was carried out at the University of Bath, Purcell et al found that organisations who shared a common goal, as in all of the individuals shared the same beliefs, then the company would do better.

This was known as the ‘Big Idea’. This could be anything, from believing that customers were the most important aspect, to believing that quality was the key, for example Toyota set out with the intention of providing cars which were not only high quality, but were good value for money, and over the course of their life, they have generally kept to that ‘Big Idea’.

This section of Performance Management can be linked quite nicely into Diversity, as that section of an organisation also looks into the affect people have on the effectiveness of a business. You can have a very diverse workforce, but this may mean that people do not think alike and therefore common goals, and the ‘Big Idea’ are not built upon.

AMO (Purcell, 2007)

  • AMO
  • A – Ability
  • M – Motivation
  • O – Opportunity

This theory described by Purcell shows us that people have the ability to learn and will want to work in organisation where their abilities are seen, built upon and used in a way which benefits both them and the organisation.

It also states that people are motivated by the organisation, in a way which will make them want to work for the organisation and use their abilities for the good of the organisation.

Opportunity states that people will look to the opportunity to do high standards of work and involves themselves in the organisation, both with the other individuals and the business itself.

When taking part in an appraisal, the organisation should try and identify the AMO in each individual and use this in the review meeting to work upon and get that person even more involved with the objectives and targets.

Managers and Performance Management

To be effective in Performance Management managers should work together with individuals, and vis-versa, so that objectives can be set and then worked towards in an efficient manager. Everyone in the organisation, who is working towards those objectives, needs to have a complete understanding of what is going on. The manager should also ensure that individuals;

  • Have the correct skills
  • Are supported by the organisation and management
  • Receive regular feedback to have continuous improvement.

Having the above will allow managers to work well with individuals.

  • The Tools for Performance Management

Cannell 2007

The following are tools which are commonly used in performance management, according to Cannell.

  • Performance and development reviews
  • Learning and development
  • Coaching
  • Objectives and performance standards
  • Competences and competencies
  • Pay
  • Teams
  • 360 Feedback
  • Performance problem solving


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