University of Minnesota - UMN Executive Leadership Insights
Performance Management
Book

Performance Management

Key Strategies and Practical Guidelines

Michael Armstrong
Kogan Page, 2006
First Edition: 1994
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Recommendation

If you've ever worked for a large corporation, you can probably recall feeling apprehensive as you walked into your boss's office for your annual review. You can probably also identify with your employees’ fears that they might leave your office after a review feeling disappointed and bewildered, their raises up in smoke and their confidence shaken. Thus you and your staff may think of employee evaluations as a necessary evil. Author Michael Armstrong suggests a more palatable alternative. Instead of traditional, yearly performance appraisals, Armstrong advocates performance management, a user-friendly system that emphasizes collaboration between manager and employee. If you plan and execute it properly, performance management can help you monitor and encourage employee development over the long term, and avoid the unpleasant, confrontational experience of an annual evaluation. Armstrong has a tendency to repeat himself, but that really doesn't detract from the wealth of practical advice he offers. He uses charts, subheadings and bullet points to make his ideas clear. getAbstract believes that if you're a human resource executive, a manager or an employee who would rather undergo a root canal than another yearly performance appraisal, this is the book for you.

Summary

Performance Management versus Performance Appraisal

Performance management is quite different from performance appraisal, even though some people believe the terms are interchangeable. Performance appraisal usually consists of a yearly review, during which the discussion tends to focus on those areas where the employee falls short. The manager does not provide much positive feedback. Performance appraisal traditionally is a function of the human resources department, which makes little sense, since line managers are usually in the best position to evaluate workers. Performance appraisals can cause resentment for several reasons:

  • Rating systems are often inflexible.
  • The process allows little give-and-take.
  • Pay raises frequently depend on positive evaluations.
  • Many managers consider performance appraisals a giant waste of time.

In contrast, performance management is an ongoing process, not an annual event. It takes into account an employee's human qualities, focuses on improving future efforts and uses flexible ratings. Employees can openly discuss and even challenge an evaluation without fear of reprisal. Moreover, salary increases...

About the Author

Michael Armstrong is an independent management consultant and author of six previous books on management. A fellow of the Chartered Institute of Personnel and Development, he has extensive experience in the aerospace and food industries.

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