+ Welcome

CIPD

Performance Management and Reward

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Supporting good practice in performance & reward
management

 Unit outcomes:
 To be able to explain the link between organisational success, performance management
and motivation.

 To be able to explain the relationship between performance management and reward.

 To be able to contribute to effective performance and reward management in the

workplace.

 To be able to conduct and reflect upon a performance review.

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Recap session 1

A description of the purpose of performance management and its

relationship to business objectives. (1.1)

 An explanation of how performance management processes can

affect staff motivation. (1.3)
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Tonight….

 Explain the components of performance management systems

(1.2)
 Identify and explain the factors that need to be considered when
managing performance. (3.1)
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In the news…
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What factors influence performance? (3.1)

 Consider the environment, sector and culture

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Factors affecting performance at work (3.1)

 Individual can possess the skills and knowledge to do a job, however

 This does not guarantee that the individual will use them to the organisation’s advantage
 People have to be motivated
 People only ever do what they are motivated to do.

 Remember: ‘Recruit for attitude, train for skill’

 Once appointed we need to ensure staff are motivated to perform, and

 Have the opportunity and support needed to perform well.
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What organisational factors influence
performance? (3.1)
Managerial Implications

 Organisational climates that encouraged trust, participativeness, and

entrepreneurial behavior.

 Organisations with relatively flexible, externally oriented corporate cultures

perform better

 Organisations are not polar in terms of organizational culture. All organizations in

the study see themselves as mixtures of four types of organizational cultures:
market, adhocracy, hierarchy, and clan. Various combinations may produce good
results; for example, successful Japanese firms, while generally hierarchical and
clan oriented, also tended to develop relatively strong market cultures.
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What organisational factors influence
performance?
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What organisational factors influence
performance?

Mission

Vision

Competencies Values

Financial Processes Customer Employee

s s

Objectives
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Why is Performance Management not always
successful?
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BREAK
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Common components of a performance
management process/system (1.2)
 Performance Appraisal Meetings

 Assessment of competence

 Performance Planning - Objective setting and review

 Learning and development activities

 Performance-related pay

 Performance Diagnosis - Coaching and mentoring

 Succession planning

 Personal development planning

 Ongoing Performance Communication.

 Data Gathering, Observation and Documentation

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Common components of a performance
management process/system (1.2)
 Target setting

 Job Descriptions

 Competencies

 Policies and Procedures

 Reviews/Feedback

 Performance Development/Coaching/Mentoring

 Succession planning
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At its best, performance management (3.1)

 is a tool to ensure that managers manage effectively - as part of which they ensure
that the people or teams they manage:
 know and understand what is expected of them
 have the skills and ability to deliver on these expectations
 are supported by the organisation in developing the capacity to meet these expectations
 are given feedback on their performance
 have the opportunity to discuss and contribute to individual and team aims and
objectives.
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Performance management

 should be:

 Strategic – it is about broad issues and long-term goals.

 Integrated – it should link various aspects of the business, people management,

individuals and teams.
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Performance management

 Should incorporate:

 Performance improvement - throughout the organisation, in respect of individual, team

and organisational effectiveness

 Development - unless there is continuous development of individuals and teams,

performance will not improve

 Managing behaviour - ensuring that individuals are encouraged to behave in a way that
allows and fosters better working relationships
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At its best, performance management (3.1)

 is a tool to ensure that managers manage

effectively - as part of which they ensure that the
people or teams they manage:
 know and understand what is expected of them
 have the skills and ability to deliver on these
expectations
 are supported by the organisation in developing the
capacity to meet these expectations
 are given feedback on their performance
 have the opportunity to discuss and contribute to
individual and team aims and objectives.
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Factsheets – CIPD Website

 Performance Management: an overview

 Competence and Competency frameworks

 Performance-related pay

 Performance appraisal

 Feedback – 360 degree

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Assignment workshop

 Reminder of report layout

 Onto computer room to layout your report and continue working on the following
criteria:
1.1 Describe the purpose of performance management and its relationship to
business objectives
1.2 Explain the components of performance management systems

1.3 Explain the relationship between motivation and performance management

3.1 An identification and explanation of at least five factors that need to be

considered when managing performance.
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Homework continue to work on your report
………….
1.1 Describe the purpose of
performance management and its
relationship to business objectives
1.2 Explain the components of
performance management
systems

1.3 Explain the relationship between

motivation and performance
management

3.1 An identification and explanation of

at least five factors that need to be
considered when managing
performance.