4. Performance Management Planning

Performance  Planning and agreement

Performance and development planning is carried out jointly by the manager and the individual. These discussions should lead to an agreement on what needs to be done by both parties (Michael Armstrong, 2006). During the performance planning process, managers should review and discuss behavioral standards with employees. It is important for the managers to make sure employees understand how the behavioral standards relate to their specific jobs (Elaine D. Pulakos, 2004).   

Torrington et al. describes that performance appraisal is integrated with performance planning where individual objectives are linked to the overall organizational objectives. The success of these objectives is supported through ongoing feedback and personal development plans and assessed in order to reward superior performance (Torrington et al., 2008).

Employees should understand where the organization is heading to and whether the commonly agreed goals are reached and whether their personal contribution to the company’s success was met. This can only be achieved in a meaningful target agreement process between the employee and the respective manager (Matthias Zeuch,2016).

Elaine D. Pulakos describes the best practices of performance planning as follows:

Figure 4.1 Best practices and Realities of Performance Planning

Source: Elaine D. Pulakos (2009), Performance Management Book

According to the above theories it is clear that organization should have some document in the form of an agreement between the employer and the employee.

Contract of employment - A contract of employment exists when one person engages another to perform a particular task as part of his or her business, in a manner that he or she dictates in return for payment (Shaun Tyson,2006).

Job Description - Identify the expectations of the role using role profiles, individual job descriptions, local business objectives (Armstrong, 2006).

According to Shaun Tyson the Job Description a document include Basic data Exact title and grade, Purpose, Objectives and relationship to the aim of the organization, Tasks ,  Competences, Responsibilities Position of job, Managers/supervisors to whom job holder is accountable, Subordinate staff, Training, Advancement opportunities.

According to Herman Aguinis job descriptions need to be congruent with the organization and unit mission, vision, goals, and strategies.

Figurer 4.2 The main source of contact with the employer's objectives and employee outcomes is the Job description.

 

Source Figurer 4.2 :  Herman Aguinis, 2009 

Performance and development planning

At the beginning of each performance cycle, the supervisor and the employee meet to discuss and agree upon what needs to be done and how it should be done. This performance planning discussion includes a consideration of both results and behaviors as well as a development plan (Herman Aguinis,2009).

Roger J. Plachy with Sandra J. Plachy  is  Stating  this as a  Four-Dimensional Performance criteria.

Figure 4.3 Stating of Four Dimensional Performance Criteria

Source: Roger J. Plachy with Sandra J. Plachy (1988), Performance Management Book

Results

Results refer to what needs to be done or the outcomes an employee must produce. A consideration of results needs to include the key accountabilities, or broad areas of a job for which the employee is responsible for producing results. Results also means discussing performance standards (Herman Aguinis,2009). According to John Shields the results are the most tangible and readily measurable of the horizontal dimensions of performance.  Roger J. Plachy with Sandra J. Plachy describe the job result, as shown in above figure 4.1 clarifies what the employee must accomplish.

Behaviors

According to Herman Behaviors are important criteria. In his view, some of the results depend on the behavior of the employee.  Thus constitute an important component of the planning phase.

The Performance Standard is the central element of the profile, a clear statement of the effect when the job result is accomplished the way management wants it to be accomplished. It is the purpose of performance, or the result of behavior (Roger J. Plachy with Sandra J. Plachy, 1988)

Development Plan

Development plan should include identifying areas that need improvement and setting goals to be achieved in each area. The overall objective of a developmental plan is to encourage continuous learning, performance improvement, and personal growth. In addition, developmental plans have other more specific objectives (Herman Aguinis,2013). Roger J. Plachy with Sandra J.Plachy well explained about developing consensus among managers on the meaning of Performance Standards. Organizations fail to develop consensus when they don't allow thorough discussion of the options, don't recognize that their managers have individual value systems, or don't communicate to new managers the values developed in the past by other managers.( Roger J. Plachy with Sandra J. Plachy)

Performance and personal development plans are derived from an analysis of role requirements and performance in meeting them (Michael Armstrong, 2006 p.56)

 The main areas are;

1. role profiles;
2. objective setting;
3. performance measures and assessment;
4. development planning;
5. Performance agreement.

According to the above theories, the most important part of performance management process is to establish realistic, challengeable, yet attainable performance expectations and standards. Employees with easily accomplished expectations may have their knowledge, skills and abilities overstated, whilst employees with very difficult or unattainable expectations and standards may have their knowledge, skills and abilities understated.

It is difficult; if not impossible for employees to accept or ‘buy into’ expectation and standards that they do not understand and / or do not agree with. With specific expectation and standards, employees can understand clearly what performance is expected of them, and what they are being paid to do or achieve. As a result, work activities can be precisely targeted and planned and performance is likely to improve. There are five important characteristics that all performance expectations should process. All performance expectations should be Specific, Measurable, Achievable, Relevant and Timely (SMART’ theory) 

List of References 

1. Elaine D. Pulakos (2004), Performance Management, SHRM Foundation, USA.
2. Elaine D. Pulakos (2009),Performance Management: A New Approach for Driving Business Results, John Wiley & Sons, UK. pp. 20-24.
3. Herman Aguinis (2013), Performance Management, 3rd Edition, Pearson Education, Inc, USA.
4. John Shields, (2007), Cambridge University, New York.
5. Matthias Zeuch - Editor, (2016), Handbook of Human Resources Management, Springer-Verlag Berlin Heidelberg.
6. Michael Armstrong (2006) Performance Management Key Strategies and Practical Guideline. 3rd edition,  London, Kogan Page Ltd.
7. Michael Armstrong (2009) Armstrong's Handbook of Performance Management. 4th edition, London, Kogan Page Ltd.
8. Roger J. Plachy with Sandra J. Plachy (1988), Performance Management Getting Results From Your Performance Planning and Appraisal System, AMACOM, New york.
9. Shaun Tyson (2006), 5th Edition, Essentials of Human Resource Management, Elsevier’s Science & Technology.
10. Torrington, D., Hall, L. and Taylor, S. (2008). Human Resource Management, 7th edition. Essex: Pearson Education Limited.