- Knowledge emerging from different theories including systems theory whereby
performance depends on how each of the components of production systems was
effectively managed. Human resources were seen as one of the key components of
the system, which had to be well managed. - The recognition of the importance of continuous improvement through learning and
adaptation as part of the qualities of excellent organisations. Therefore, the emphasis
shifted from performance appraisal, which is provide feedback on what could
already have gone wrong to creating enabling environment for better and better
performance as dictated by the business environment. - The increased stress on achieving commitment by integrating organisational and
individual goals and hence reducing the feeling of ‘us’ against ‘them’. - The recognition that academic qualifications and experiences were not main drivers
for excellent organisations’ talents and competencies, which should be explored,
nurtured and developed during the job performance process. - A realisation that managing performance was the concern of everyone in the
organisation, and not just managers. Total employees’ commitment to the
organisational tasks, activities, processes, targets and objectives through
performance agreements as part of partnerships between the line managers, staff
managers and employees became the way to remain competitive.
Theoretical and conceptual framework for performance management
Performance management as a system which constitute tools for effective management
of organisational performance is grounded in many theories but here the focus is on goal
setting and systems theories because they also provide a useful framework for managing
performance (Locke & Luthans 1990). Goal setting theory predicts that employees will
be motivated to work harder if:
- The organisation provides challenging but attainable goals.
- If goals and objectives are made specific enough for the employee to understand.
- If the employee participates in setting the goals and objectives.
- If the employee has a benchmark from previous performance objectives to compare
with expected performance. - Employees receive frequent feedback on their performance so they can improve.
Systems theory analyses employee performance in terms of a process that involves in-
puts, process, outputs and outcomes (Bacal 1999; Marchand & Raymond 2007; Arm-
strong 2008).
- Inputs: the skills, knowledge and expertise individuals bring to their jobs (their
attributes). - Process: how individuals carry out their work – the talents and behavioural
competencies they use in order to fulfil their responsibilities. - Outputs: the measurable results achieved by individuals according to the level of
performance they demonstrate in carrying out their tasks. - Outcomes: the impact of what has been achieved by the performance of individuals
on the results of their teams, departments, units or functions and ultimately the
organisation. This is their contribution, which is the ultimate measure of their
effectiveness in their jobs.