(Solution) CIPD 5HR03different approaches to performance management. (AC 3.1)


Performance management is a process of managing employee performance and improving work within the organisation (Kumar et al., 2022). It involves HR professional and employees sitting together to plan, monitor a review individual’s work objectives and their contribution to the company.

Planning phase – Employees and managers work collaboratively to review individual’s job description, review the link between job description and organisational goals and set a plan outlining deliverables to be completed. SMART performance objectives are also agreed.

Coaching phase – Employees are coached to address performance issues and concerns, feedback is given to areas for improvement

Review phase – Employee’s performance is reviewed, summarised and rewarded

360-degree  feedback

This approach involves collecting performance data in the form of feedback from several stakeholders such as colleagues, supervisor and managers who rate an individual’s performance based on some behaviours or variables (Sardi et al., 2021). The participants’ opinions are then used to create development reports to support performance improvement. Its advantage is creating self-awareness about strengths and weaknesses which in turn motivates employees toward their journey to self-improvement. Another advantage is improving work relationships. Feedback from peers help people to build trust and good relationships. Its disadvantage is side lining positive feedback when managers put their focus on negative side and forget positive side. It may also garner dishonest reviews when people give feedback about what the manager want to hear (Gifford, 2022).

Performance review meetings

Review meetings are formal conversations aiming to produce outcomes that can help employees to improve their performance and help organisation achieve goals and objectives (Aguinis and Burgi-Tian, 2021). These meetings review the objectives set prior during the planning stage of performance management. Managers assess whether objectives have been achieved and the give constructive feedback. Its advantage is positive relationship between manager and employees. There is direct lines of communication which boost relationship. Its disadvantage is that it is time-consuming. Holding review meetings can consume a lot of time and delay organisation projects.

Continuous professional development (CPD)

This is a continuous learning through formal and informal activities, reflecting and documenting learning in a personal development plan (Walker, 2021). It can be used to manage performance by encouraging employees to engage in formal and informal learning to enhance skill and knowledge development. Its advantage is improving individual performance when they apply what they learnt in the workplace. It also enhances skill sets which makes people to stay relevant and innovative. Its disadvantage is lacking enough time and motivation to learn while still working. High costs, especially for formal learning is a challenge in CPDs.

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