SMC BBA Performance Management Systems.docx - Module 5...

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Module 5: Performance Management and Measurement Performance Management Systems Performance Management Systems: Purpose of Performance Management; Let's Diagnose the Problem's of Human Capital Performance the difference between performance management and performance appraisal. To effectively manage human capital, you must know the difference between the two. In short, performance management (PM) is a system designed to integrate with the strategy of a firm; it must be valid and universal. The performance appraisal (PA) is the actual, real-time review of an individual within the firm . Consider it metaphorically: the PM system is like an interstate highway while the appraisal is just one car on the highway. That car needs the right signs, speed limits, and proper road quality to have a successful trip. After viewing the video, try to write a brief paragraph that summarizes the differences between performance management and performance appraisal. A Seven Factor Model (Affecting Performance) Factor 1: Aptitude Aptitude refers to a person's native ability to perform the task or tasks. Each of us has strengths and weaknesses that determine if we can learn or perform a task. Poor aptitude for a task could mean that the person could never learn how to do it, even with all the supports in the world. Assessing aptitude is very difficult. Factor 2: Skill Level Even the simplest responsibilities require skills. Skills differ from aptitudes in that they can be learned, up to the limits imposed by aptitude. To assess whether a performance deficit is a result of lack of skill, ask the questions, "If his/her life depended on it, could the person do the task?" If the answer is no, then it could be a skill problem. Factor 3: Understanding of Task A person must understand the nature of the task, and what is expected. If this clear communication is lacking, no amount of skill or motivation will bring about effective performance. Performance management is the common means for conveying understanding of the task. The best way to assess an employee's understanding is to ask questions within a coaching environment Factor 4: Choice to Expend Effort This, and the next factor are motivational factors. If a person has the aptitude, skills and understanding of the task required, it may be that there are factors causing the person to "not make the effort". These may be
personal or related to the work environment. Assessing whether there is a motivational problem is difficult, and can best be done by examining other indicator behaviours (absenteeism, lack of participation in meetings, or other factors that suggest a motivational problem. Factor 5: Choice of Degree of EffortTo Expend Sometimes effort is not an on/off thing. An employee may be putting in a limited amount of effort and therefore producing inferior results.

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