Performance management

 Introduction

This section considers how employee performance can be evaluated and fostered. Assessment and reward strategies are related to concepts of effective working behaviour.

 The environmental context

The business environment exercises both a direct and an indirect influence on the conduct of performance assessment. Whereas legislation has specific consequences, particularly in the USA, most environmental factors have a diffuse and often unrealized effect on assessment and pay structures. More

 Business culture

Cultural norms dictate 'acceptable' standards of performance and the management methods by which they are assured.  More

Legislation

Performance measurement has become a sensitive legal issue in the USA because of possible consequences on equal opportunities. More

 General economic conditions

At times of high unemployment, workers are thought to be concerned about losing their jobs and hence more conscientious and tolerant of strict management. When suitable employees are scarce, managers must be cautious - unflattering assessments can trigger an employee's move to another organization.  More

 Industry sector

Considerable variation is found between industry sectors due to the nature of work involved, tradition and fashion. In some cases objectives are particularly difficult to measure. More

 Technological change

Developments in IT are leading to significant changes in the measurement of performance. Extensive statistics can be generated but how meaningful are they? More

 Flexibility and diversification

In the 1980s and early 90s, the nature of employment relationships in capitalist countries changed, moving the balance of power firmly in favour of employers. Performance assessment became the crucial means of monitoring this relationship. Job descriptions disappeared or were diluted, so that employees could be asked to do virtually anything required by the organisation. Conversely, performance criteria were more tightly defined, typically expressed in the form of demanding objectives: forever-moving goalposts. Job descriptions are becoming looser but performance objectives are expected to be specific and demanding. What are the consequences? More

 Employee relations

Performance-related pay schemes emphasise the individual (or possibly teams), reducing the role and influence of trade unions. More

 Workforce composition

What happens when white, male supervisors assess the performance of women or members of ethnic minorities? More

 

Back to Performance Management Topics Page

  Next Page