1. Performance Management
Chapter 7
Performance Management

2. Learning Objectives
Understand the difference between performance management and performance appraisal
Understand the factors that impact performance from a holistic perspective
Outline a model of the performance management process
Understand the benefits that may be achieved through effective performance management
Explain potential sources of conflict in performance management at both a systemic and individual level
Describe different performance appraisal methods and procedures
Understand good practice in relation to performance appraisal methods

3. Performance management and appraisal
performance management - work design, reward structures, selection, training and development and assessment and policies for rewarding and improving performance
Performance appraisal - the formal system that operates to set goals, monitor performance and establish consequences and improvement actions

4. Performance Management provides a basis for:
aligning behaviour to organisation’s strategic vision and mission
establishing clear behavioural norms for employees and volunteers
fair and objective basis for rewarding the relative contributions of different staff
discussing career development
evaluating the effectiveness of HR processes
a system of employee information

5. The Performance Management Process Stage 1
Prepare/Revise individual job goals, accountabilities and relationships
Agree with staff member on measures of performance for each accountability area e.g. Key Performance Indicators. Clarify values related to the job and behavioural dimensions of performance. Clarify reward expectations
Stage 2
Remove barriers to job performance
Stage 3
Ongoing assessment of job performance; provision of feedback
Stage 4
Formal review of action on previous appraisal recommendations; appraisal of performance against goals
Stage 5
Establish new goals; identify performance improvement action
Stage 6
Assess future career potential; plan next career steps and individual training and development needs
Implement performance improvement and career development strategies
Stage 7
Recommend merit based adjustments to remuneration

6. Stage 1 define and agree on performance standards
clear and well communicated goals provide direction, encourage above the norm levels of effort and serve as a basis for appraisal feedback later in the process
developing criteria for performance appraisal and determining which aspects of a job are the most appropriate to use in measuring performance can be approached in numerous of ways

7. Measuring coaching performance
Behavioural product factors
Team or athlete outcome measures
Personal outcome measures
Number of competitions won
Receipt of coaching awards
Improvement in placing over previous attempt
Upgrading of coaching qualifications
Improvement in skill levels
Advice sought by other coaches
Behavioural process factors –task related
Direct task
Indirect task
Application of strategies to enhance performance
Recruiting talented players
Applying coaching knowledge
Maintaining and applying relevant statistics
Effective communication
Behavioural process factors – maintenance related
Administrative
Public relations
Adherence to policies and procedures
Relationship with stakeholders
Effective financial management
Liaison with community groups
(Adapted from MacLean & Chelladurai, 1995 and MacLean, 2001)  

8. Stage 2 remove barriers that may inhibit performance
provide appropriate levels of resources for a position or simply providing adequate tools

9. Stage 3
revisit performance on a regular basis and provide corrective feedback as required
giving feedback is an important managerial competency
important factors influencing receptivity are: comfort with feedback; propensity to seek feedback; mindfulness with which feedback is processed and sense of accountability to act on feedback

10. Stage 4
involves a formal review of the performance during the interval since the goal setting meeting
use a style of interview that encourages joint problem solving
encourage staff members to evaluate their own performance
focus on factual data wherever possible and use specific examples to illustrate optimal and sub-optimal performance
use inclusive language wherever possible
hold the interviews in a private and neutral setting and allow enough time to properly deal with all the issues

11. Stages 5 and 6
Stage 5 - reaching consensus on any performance improvement actions that result from the review and setting new goals for the next performance period
Stage 6 - a discussion about career planning and training stemming from Stage 5
together these stages consist of the formal developmental component of the performance management process

12. Stage 7
determine and provide appropriate merit pay, financial bonuses, or nonfinancial rewards, based on the formal review of performance
rewards may be provided on a continuous (e.g., commission) or graduated (levels) scale, for individual performance, or unit or organizational results

13. Performance appraisal – common problems
attempts to achieve too much
managers have been found to often experience guilt about making negative judgements
employees may not be completely open about their need for development
poor integration between organisational strategy and the appraisal system
systems are not fully integrated into other HR systems

14. To minimise bias:
Relate performance dimensions to a single activity (not groups of activities)
Avoid overall ratings
Observe job behaviour regularly
Avoid ambiguous terms which can different individual interpretations e.g. average
Train assessors to share a common frame of reference

15. Performance Appraisal Methods
staff may be compared with each other or compared to some absolute standard.
performance can be measured on staff member attributes, behaviours or results.
staff may be measured by managers, themselves or a wider group of respondents

16. Sample performance ratings scale combing attributes and behaviours
Using the items in the rating scale, indicate your assessment of performance for each dimension by circling the appropriate rating
Performance
Item
Rating
Outstanding 5
Above
Standard 4
At standard 3
Below 2
Poor 1
Knowledge
Communication
Management
Skill
Teamwork
Initiative
Interpersonal
Creativity
Problem Solving
Willingness to
Accept
Responsibility

17. Management by Objectives
4 steps
Goal Setting,
Delegating,
Ongoing Feedback
Overall Evaluation

18. Effective performance management
Top management commitment to performance management
Use of multiple raters to reduce subjectivity
A self assessment component to increase employee engagement
Compatibility between job design and appraisal method
A system tailored to organisational strategies, culture, tasks and workforce
A structured process of performance appraisal to assist managers
Clear performance measures
Ongoing feedback during the performance cycle
Recognition of organisational obstacles to effective performance

19. Summary
Performance appraisal is a component of performance management that deals with the formal system of goal setting, review and consequent action to influence behaviour
There are many benefits of effective performance management but there are also many common systemic and operational problems
A stage model of performance management can be used to ensure effective management of both paid staff and volunteers in sport