The stages of performance management system

Schneier et al, (1987) classified the performance management system into a development, planning, managing, reviewing and rewarding phase.

Source: Drawn according to interpretation-Original source: Schneier, Beatty and Baird, (1987:98)

According to Schneier et al, (1987) Phase 1 of the performance management system includes outlining development plans, setting objectives and getting commitment activities. Assessing against objectives, seeking feedback, coaching and document reviewing are the activities coming under phase 2 with managing and reviewing performance. In the last phase under rewarding performance, includes personal development, results of performance and link to pay activities.

Developing and planning performance

Planning is a continuous process in performance management and should be executed with great care & it helps to encourage commitment and understanding by linking the employees' work with the organization's goals and objectives (Schneier et al,1987).

Armstrong and Baron, (2004) clarifies the objectives or goals as something to be accomplished by individuals, departments and organizations over a period of time. Further they stated that objectives need to be defined and agreed on. Rogers and Hunter, (1991) claimed that goal setting is the fundamental aspect for an organization.

The development plan can also include long term development initiatives which are usually based on potential and good performance (Nyembezi, 2009). In this phase, supervisors and subordinates are involved in a joint process and set organizational goals as well as specific goals for an individual. 

Managing and reviewing performance

This is the second element of the performance management system. This step clarifies performance management as a process from performance appraisal as an activity(Schneier et al, 1987). According to him, every employee is responsible for managing his or her own work performance. This involves 

- Maintaining positive approach to work.

- Updating and revising initial objectives, performance standards and job competency areas as              conditions change.

- Requesting feedback from a supervisor.

- Providing feedback to supervisor.

- Suggesting career development experiences.

- Employees and supervisors working together, managing the performance management process.

Amrstrong and Baron (2004) found out that performance management is a resource at its finest to ensure effective management by managers. The performance management system should therefore ensure that employees or team managers know and understand what is expected of them. 

It includes the performance reviews in the second phase that can be considered learning events. Individuals might be encouraged to think about how they want to develop and how they want to.

feedback has strong positive effects on the performance of both individuals and groups, specifically through role clarification, improved self-efficacy, the establishment of behavior reward contingencies and increased self-regulatory control processes (Ashford & Cummings, 1983).

According to Armstrong and  13 Baron (2004), the actual performance could also be compared to the desired performance, therefore the outcome is evaluated and a development plan is set based on the weakness. 

Rewarding performance

Schneier et al, (1987) clarified this phase includes three activities; personal development, linking to pay and identifying the results or performance. 

Personnel development has some development principles. First one is personal involvement. All personnel development is basically self-development. Opportunity for development is valuable only if the individual capitalizes on it himself.

Rahdert, (1960) also points out that it is in the interests of staff development. For employees, if their individual skills or knowledge increase, they may create more value and, as a result, they may have a sense of satisfaction with the achievement of their personal goals and the achievement of professional recognition.

Development programs reflect the needs of succession plans and seek to foster leadership skills. In addition, there is a growing interest in pay-for-performance plans for small groups or teams. In this phase, pay-for-performance could be used together as a performance assessment tool. According to the view of Locke, (2004) the pay-for-performance principle involves providing monetary rewards through carefully designed compensation system that base pay on measured performance within the control participants.

  

Financial assessment is a useful tool to stimulate the passion of employees for their work. Rewarding motivates employees' positive emotions, such as satisfaction and commitment. As a result, pay-for-performance effectiveness has a direct impact on high productivity levels and desirable work attitudes.

Reference

Armstrong, M. and Baron, A. (2004). Managing performance: performance management in action. 1st edn. London: Charted Institute of Personal and Development 

Ashford, S. J. and Cummings, L. L. (1983). “Feedback as an individual resource: personnel

strategies of creating information”, Organizational Behavior and Human Performance, Vol. 32

Locke, E. A. (2004). Handbook of Principles of Organizational Behavior. 2nd edn.

Nyembezi, V. (2009). Development of a Performance Management System for the SABC. Nelson Mandela Metropolitan University Business School.

Rahdert, K. G. (1960). A philosophy of personnel development. Business Horizons, 3(4), pp.46-53.

Rogers, R. & Hunter, J. E. 1991. Impact of Management by Objectives on Organizational

Productivity. Journal of Applied Psychology

Schneier, C. E., Beatty, R. W. and Baird, L. S, (1987). Performance Appraisal Sourcebook. Human

Resources Development Press, Amberst.

Zhang Ying, Y. (2012) ‘The Impact of Performance Management System on Employee performance Analysis with WERS 2004’, Thèse de maitrise, pp. 1–57.