Performance Management

2397 Words Apr 15th, 2014 10 Pages
1. There are many purposes of a Performance Management System and its relation to business objectives which include:
(i) Strategic
(ii) Administrative
(iii) Informational
(iv) Developmental
(v) Organisational maintenance
(vi) Documentation

(i) Strategic purpose: linking individual goals with the organisations goals and communicating the most crucial business strategic initiatives. This increases employee loyalty and retention, thereby improving the overall performance of the organisation.
(ii) Administrative purpose: providing information for making decisions regarding: salary adjustments; promotions; retention or termination; recognition of individual performance (Management Study Guide, 2013). This provides information
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That is, positive reinforcement increases the likelihood of the behaviour being repeated and negative reinforcement motivates behaviour by leading to the avoidance of the undesired behaviour. One such example of a reinforcement theory is Herzberg’s motivational-hygiene theory. “Herzberg 's findings revealed that certain characteristics of a job are consistently related to job satisfaction, while different factors are associated with job dissatisfaction” (Mindtools.com, 2013):
Motivation factors – have positive reinforcement.
Hygiene factors - that if not handled well have a negative effect – see below:

Image from www.provenmodels.com
Needs theories suggest that people have needs that are satisfied (or not) by working. Some theorists suggest that individuals may have a preference towards particular needs, with the motivational impact varying from individual to individual. Others suggest that the needs occur at different levels and individuals move through these levels as lower-order needs are satisfied. An example of a needs based theory is Maslow’s “hierarchy of needs” – see diagram below:

Image from www.simplypsychology.org
The theory acknowledges that people don’t necessarily move in a continuous direction through the different levels of need, and may also be at different places in different aspects of their lives – at work and in their personal life.
Cognitive theories recognise individuals as
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