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Performance Management

In: Business and Management

Submitted By conor03
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A PMM system is a balanced and dynamic system that is able to support the decision-making process by gathering, elaborating and analysing information (Neely et al., 2002)

“To improve performance you have to know what current performance is” (Armstrong and Baron, 2005: 29)

Performance management is a process which:

‘Contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance’

‘Establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure it is achieved’
Armstrong and Baron (2005: 2)

Top management need to focus on creating a high-performance culture (Armstrong, 2006)

Features and Concerns of Performance Management (Armstrong, 2006)

 Aims – performance improvement and personal development
 Strategic – concerned with how well the business functions in the longer term and with the creation of a culture of performance and continuous development
 Integrated – aligns individual goals and values with corporate goals and values
 Focus – on outcomes (results) and inputs (competencies)
 Management of expectations – helps individuals to understand their roles and what they are expected to achieve in terms of both outcomes and competency levels
 Measurement, feedback and review – concerned with measuring performance (‘if you can’t measure it you can’t manage it’), feedback to individuals (self-generated or provided by their manager) and the review of outcomes as a basis for planning action
 Dialogue – concerned with creating a climate in which a dialogue takes place between managers and individuals to define expectations, discuss outcomes, and agree development plans in order to achieve mutual understanding of what is to be achieved and developing people to ensure that it will be achieved.
 Continuous –...

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