Human resource management practice I also available by michael armstrong

Succession planning

Following the evaluation and rating stage, the line man-

ager’s immediate superior reviews the results and, in the 

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Chapter 

25

  Performance Management

353

light of them, considers, among other things, succession 

and  career  planning.  By  using  the  overall  results,  senior 

managers  can  determine  where  there  are  skills  gaps  or 

other  deficiencies.  In  addition,  it  enables  them  to  take  a 

closer  look  at  individual  employees  to  consider  whether 

they might be more suited to be employed elsewhere in the 

organization.  Similarly,  managers  can  examine  strengths 

and weaknesses, which might flag up a shortage of certain 

abilities, such as commercial acumen, for example. Such 

issues  can  therefore  be  addressed  and  recruitment  can 

be  directed  appropriately.  Moreover,  it  also  helps  when 

employees leave the organization, making it simple to deter-

mine the corresponding skills and behaviours that go from 

the organization with that individual. To aid with this task, 

managers are also able to draw on an additional rating for 

certain senior staff, termed ‘potential for job’. This gauges 

potential for the future and helps by feeding into future 

decisions on promotion and succession planning.

Performance management defined

Performance management is a systematic process 

for improving organizational performance by 

developing the performance of individuals and teams.

The meaning of performance

Performance is defined as behaviour that  

accomplishes results.

Underpinning theories

 

●

goal theory;

 

●

control theory;

 

●

social cognitive theory.

Aims of performance management

Performance management is a means of getting better 

results by providing the means for individuals to 

perform well within an agreed framework of planned 

goals, standards and competency requirements.

The performance management cycle

The key processes involved during the cycle are 

concluding performance and development 

agreements, performance planning, personal 

development planning, managing performance 

throughout the year, conducting performance 

reviews and assessing performance.

Key learning points: Performance management

Performance management issues

As a human process, performance management can 

promise more than it achieves. However well 

designed a performance management system is, its 

effectiveness mainly depends on the commitment 

and skills of line managers.

Impact of performance management

Performance management is expected to improve 

organizational performance, generally by creating 

a performance culture in which the achievement of 

high performance is a way of life.

The results of research studies on the impact  

of performance management are mixed. But it is still 

possible to believe in the benefits of performance 

management to organizations on the assumption  

that people are more likely to respond positively and 

are more likely to work to improve their performance 

and develop their capabilities if they share in the 

processes of defining expectations and reviewing 

performance and competency against those 

expectations, and are involved in creating and 

implementing plans for developing their skills and 

competences.

Performance management and reward

Performance management, if carried out properly, 

can reward people by recognition through feedback, 

the provision of opportunities to achieve, the scope 

to develop skills, and guidance on career paths.

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