Human Resource Management in Business

► Hand out date: 1st June

► Hand in date: 15th June

P5 explain how employee performance is measured and managed

M3 explain how the results from measuring and managing performance inform employee development

D2 assess the importance of measuring and managing employee performance at work.

For your final task in your new role as recruitment consultant of ‘Dave’s Management’ you have been asked to investigate and write a report on how different organisations measures and manages the performance of their employees.

They would also like you to explain how the results from measuring and measuring performance help with employee development. To conclude the report they would like you to assess the importance of measuring and managing employee performance at work Further Guidance:

Measuring performance:
►Performance indicators (achievement against targets);
►Goal theory;
►SMART (specific, measurable, achievable, realistic, time-bound)
►Targets eg sales targets, growth targets, financial targets, waiting times, pass rates, punctuality, attendance

Managing performance:
►supporting employees eg mentoring, monitoring, buddying;
►occupational health;
►managing workloads;
►delegating authority;
►capacity; competence;
►linking rewards to performance;
►employee development (training, learning, job rotation, accelerated promotion, personal, professional)

To achieve a PASS:
You will need to appreciate that the maximum contribution is required from each employee at work.

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Jobs often have specific performance criteria associated with them, so sales staff may have to generate £50,000 of sales per month. This may be because there is a business objective showing a sales target of £6 million for a sales team of 10 people.

Individuals need to be monitored to ensure they are working effectively and meeting targets and standards set for them.

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Both above par and below par performance must be managed.

To achieve a MERIT:
You must be able to identify suitable performance indicators to use with individual employees and show how the individual’s performance can be improved through the use of performance management.

Experienced teachers may be judged on examination pass rates and might be used for them passing through a pay threshold may be the reward.

Chefs may be judged on good reviews, gaining Michelin stars or the gross profit margin of dishes and maybe used as a way of deciding whether they will gain a pay rise.

Not all employees are judged in the same ways as, so different performance indicators are used to manage them.

Attending a course maybe needed to remedy poor performance.

Employees may have good punctuality and attendance monitored as these are basic requisites for working satisfactorily for a majority of occupations.

To achieve a DISTINCTION:
You must make judgements about the value of monitoring and managing employees. The benefits of performance management should be contrasted with the consequences of failing to manage performance.

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Human Resource Management in Business. (2016, Sep 25). Retrieved from

Human Resource Management in Business

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