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Step 4 
Manage performance continually throughout the year
, not just at appraisal interviews 
done to satisfy the personnel department. Managers can review actual performance, 
with more informal interim reviews at various times of the year. 
(a) 
High performance is reinforced by praise, recognition and increasing 
responsibility. Low performance results in coaching or counselling. 
(b) 
Work plans are updated as necessary. 
(c) 
Deal with performance problems, by identifying what they are, establish the 
reasons for the shortfall, take control action (with adequate resources) and 
provide feedback. 
Step 5 
Performance review
. At a defined period each year, success against the plan is 
reviewed, but the whole point is to assess what is going to happen in future. 
In order for learning and motivation to be effective, it is essential that 
people know exactly what their 
objectives are
. This enables them to do the following. 
(a) 
Plan and direct their effort towards the objectives 
(b) 
Monitor their performance against objectives and adjust (or learn) if required 
(c) 
Experience the reward of achievement once the objectives have been reached 
(d) 
Feel that their tasks have meaning and purpose, which is an important element in job satisfaction 
(e) 
Experience the motivation of a challenge: the need to expend energy and effort in a particular 
direction in order to achieve something 
(f) 
Avoid the demotivation of impossible or inadequately rewarded tasks. As we have discussed in 
the chapter on motivation, there is a calculation involved in motivated performance. If objectives 
are vague, unrealistic or unattainable, there may be little incentive to pursue them: hence the 
importance of SMART objectives. 
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