Performance Management (Michael Armstrong , 2006)

1. The basis of performance management P.1 - 13

• P.1 Performance management can be defined as a systematic process for improving organizational performance by developing the performance of individuals and teams. It is a means of getting better results from the organization, teams and individuals by understanding and managing performance within an agreed framework of planned goals, standards and competence requirements.

• P.4 Performance management should emphasis on front-end planning rather than back-end review.

P.6 5 issues that need to be considered to obtain a full understanding of performance management:

1. P.7 the meaning of performance: Performance is often defined simply in output terms - the achievement of quantified objectives. But performance is a matter not only of what people achieve but how they achieve it.
2. the significance of values: Performance is about upholding the values of the organization - 'living the values'.
3. the meaning of alignment: One of the most fundamental purposes of performance management is to align individual and organizational objectives. This means that everything people do at work leads to outcomes that further the achievement of organizational goals.
4. P.8 managing expectations: Performance management is essentially about the management of expectations. It creates a shared understanding of what is required to improve performance and how this will be achieved by clarifying and agreeing what people are expected to do and how they are expected to behave and uses these agreements as the basis for measurement, review and the preparation of plans for performance improvement and development.
5. the significance of discretionary behaviour: 'Discretionary behaviour refers to the choices that people make about how they carry out their work and the amount of effort, care, innovation and productive behaviour they display. It is the difference between people just doing a job and people doing a great job.' [Purcell, J et al (2003) Understanding the People and Performance Link: Unlocking the black box, CIPD, London. ]

P.12 The process of performance management

1. Planning: agreeing objectives and competence requirements and producing performance agreements and performance improvement and personal development plans.
2. Acting: carrying out the activities required to achieve objectives and plans.
3. Monitoring: checking on progress in achieving objectives.
4. Reviewing: assessing progress and achievements so that action plans can be prepared and agreed.

Armstrong, Michael (2006). Performance Management: Key Strategies and Practical Guidelines. London: Kogan Page.