HR Practice For Payroll Practitioners

HR Practice for Payroll Practitioners

What’s involved in a performance management framework

There are four cornerstones to any performance management framework:

• Establishing clear and specific objectives, key performance indicators (or measures) and targets – “What the employee needs to achieve.”

• Identifying competencies or behaviours critical to success in the role – “How an employee can best achieve their objectives.”

• Providing all employees with regular and honest feedback and coaching on how they are performing.

• Recognising and rewarding performance through appropriate compensation and professional and personal development.

There are two distinct parts to a performance management framework. Performance management is the overall system and the appraisal process is the formal reporting of an employee’s performance. For a more detailed definition of them:

Performance Management

The process of identifying, evaluating and developing the work performance of employees in the organisation, so that the organisational goals and objectives are more effectively achieved, while at the same time benefiting employees in terms of recognition, receiving feedback, catering for work needs and offering career guidance. (Rudman)

Performance Appraisal

Performance appraisal refers to the assessment and evaluation of individual performance.

The performance management cycle

There are three stages in the performance management cycle:

• Establishing annual performance and development plans

• Supporting, monitoring and evaluating performance

Recognising performance

•

© New Zealand Payroll Practitioners Association, Sep 2024, Ver 12

100