Supporting performance

Performance Management compared to a Performance Management System

What do you understand by ‘Performance Management’ (PM)?

Performance Management is the systematic process by which an organisation involves all its employees in improving the organisation’s effectiveness through

· regular review of achievement of goals

· measurement of level of ‘value added’ activity

· regular review of ongoing development targets

Employee surveys often show that effective performance management is an area for improvement in organisations, and that staff want it.

‘Performance Management’ is a core, continuous management responsibility

· a regular activity

· a shared process in which both main stakeholders take part – both the ‘manager’ and the ‘direct report’ (meaning a person who reports to the manager)

· a dynamic, continuous process

· part of a manager’s responsibility

A Performance Management System (PMS)

A PMS is a tangible, visible system that is just a part of performance management – a process that supports PM. PM and PMS are not synonymous.

A PMS is the process of recording performance formally, by way of paper or virtual documents. There are other potential formal components – links to reward, to talent management for which the coordination or ownership lies with Human Resources.

The principles of Performance Management will be the same for any organisation whereas a PMS will look or feel very different across organisations as each chooses the most useful design and delivery method for its needs. However, most PM Systems share similar steps.

A performance management cycle

This cycle illustrates the main steps that a line manager is involved with to manage performance. The typical steps in an organisation’s Performance Management System are added in italics:

· Performance planning (steps 1 to 3)

· Performance and development discussions (step 5)

· Annual review (steps 6 and 7)