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6 Cards in this Set

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Performance Management

The system used to improve organisational, functional and individual performance through linking the objectives of each; it assesses all phases of the employment cycle.

Management By Objectives

Managers and employees need to be clear about their objectives before they can pursue any activity.

Two Stages in MBO

1. Determine the business objectives collaboratively with the employee so that they understand how their activities relate to the achievement of their team, business unit and the overall goals of the business


- Use SMART principleswhen setting the objectives of the individual employee


2. Plan how to achieve the objectives efficiently and effectively

Performance Appraisal

Measures how well an employee has performed their job, provides feedback to employees and establishes plans to improve performance.

Self-Evaluation

An employee self-assesses both their performance related to their predetermined objectives and their contribution to their business team or unit.

Employee Observation

One way to determine the performance of employees is for managers or peers to observe their performance