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Armstrongs Handbook of Human Resource Management Practice 1

FIgure 

25.1

 

The performance management cycle



PLAN

Performance planning –

performance agreement

• Role definition

• Objectives

• Competencies

• Performance improvement

• Personal development



ACT

Performance activities

• Carry out role

• Implement performance

  improvement plan

• Implement personal

  development plan



REVIEW

Joint analysis of performance

• Dialogue and feedback

• Performance assessment

• Agree strengths

• Build on strengths

• Agree areas for improvement



MONITOR

 Manage performance

throughout the year

• Monitor performance

• Provide continuous feedback

• Provide coaching

• Deal with under-performers



Part 

6

  Performance and Reward

338

Managing performance 

throughout the year

Perhaps  one  of  the  most  important  features  of 

performance management is that it is a continuous 

process  that  reflects  normal  good  management 

practices of setting direction, monitoring and meas-

uring  performance  and  taking  action  accordingly. 

Performance  management  should  not  be  imposed 

on managers as something ‘special’ they have to do. 

It  should  instead  be  treated  as  a  natural  function 

that all good managers carry out.

This approach contrasts with that used in con-

ventional performance appraisal systems, which were 

usually built around an annual event – the formal 

review – which tended to dwell on the past. This was 

carried out at the behest of the personnel department, 

often  perfunctorily,  and  then  forgotten.  Managers 

proceeded to manage without any further reference 

to  the  outcome  of  the  review,  and  the  appraisal 

form  was  buried  in  the  personnel  records  system. 

However,  formal  reviews  that  include  assessments 

of  performance,  as  described  below,  are  essential 

parts of the performance management cycle.




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