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PERFORMANCE MANAGEMENT: a strategic and integrated approach to delivering success to organizations by improving performance of the teams and individuals. based on the principle of management by agreement rather than management by command. concerned with the business issues in its environment. Principles of performance management improvement encouraging self-management of individual performance open management style and two-way communication continuous feedback measurement of all performance against agreed goals applying to all staff Objectives:
To increase effectiveness of a company management To identify present and future level of performance To increase the work quality - gather information which might be used in order to plan HR activities To identify strengths and weaknesses of employees To identify employees who would be promoted To identify training needs To motivate employees To replace subjective opinions by objective criteria of employees' evaluation Assumptions of effectiveness: Objectives adjusted - mission statement and strategic goals Utility - connection with HRM system Commonness - all employees Homogeneity - standardization and comparison of results Adequateness - procedures and criteria adjusted to firms' and positions specific Permanent - connection with previous periods Systematic - permanent process Simplicity - procedures must be clear and understandable Transparency - criteria, appeal procedures, results usage Flexibility - adjusted to a situation Confidentiality Core skills for performance management Objective setting - identifying success factors, prioritizing Performance assessment - summarizing, judging Coaching - instructing, providing feedback, facilitating Delegating - entrusting, guiding, monitoring Supporting - recognizing needs, interpersonal skills, advising Communication - listening, discussing, being accessible Motivation - communicating the process of PM, clarifying key results area, providing resource support if required Determinants of expat's effectiveness: Compensation structure; Objectives to realize; Headquarter support; Environment of international assignment; Expatriate and spouses acculturation. Strategies of performance review:
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