Activity 1 – 3PRM – Performance Management
1. Explain at least 2 purposes of performance management and its relationship to business objectives.
• Performance management, particularly all staff hitting their targets in terms of productivity, enables the business to hit it’s KPI’s
• Enables the company to forecast and set targets for the coming year.
2. Identify 3 components of performance management systems.
• Clear and concise job descriptions
• Establish priorities for both the employee and the employer
• Allow for frequent, continuous feedback, including informal feedback, that is both positive and constructive; this could include 360° feedback that includes comments from peers, customers and supervisors
3. Explain the relationship between motivation and performance management, referring to at least 2 motivational theories.
• The ideas of Abraham Maslow, a humanistic psychologist, have had a considerable influence on management thinking since the late 1940s. Maslow had a positive view of human nature, a belief in the individual’s potential for personal growth –what they called self-actualisation. Maslow suggested that needs only motivate people when they are unsatisfied. When applied to his hierarchy lower-order needs (basic physical needs, comfort, safety and security) have to be satisfied before higher-order needs (self-esteem and personal growth) assert themselves.
4. Identify 2 purposes of reward within a performance management system.
5. Describe at least 3 components of a total reward system, 1 of which should be non financial.
6. Explain the factors that should be considered when managing good and poor performance.
7. Describe at least 2 items of data, including 1 external to the organisation.
8. Explain the frequency, purpose and process of performance review.