-SQA-SCOTTISH QUALIFICATIONS AUTHORITY HIGHER NATIONAL UNIT SPECIFICATION GENERAL INFORMATION

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1 -SQA-SCOTTISH QUALIFICATIONS AUTHORITY HIGHER NATIONAL UNIT SPECIFICATION GENERAL INFORMATION -Unit Number Superclass- -Title- AJ PERFORMANCE MANAGEMENT DESCRIPTION- GENERAL COMPETENCE FOR UNIT: Describing the main components of a performance management system as an aid to improving organisational effectiveness. OUTCOMES 1. describe the objectives, operation, monitoring and evaluation of performance management systems; 2. evaluate the contribution of performance review and appraisal to a performance management system. 3. explain how reward strategies may contribute to a performance management system. CREDIT VALUE: 1 HN Credit ACCESS STATEMENT: Access to this unit is at the discretion of the centre. However, some prior understanding of theories of motivation would be advantageous For further information contact: Committee and Administration Unit, SQA, Hanover House, 24 Douglas Street, Glasgow G2 7NQ. Additional copies of this unit may be purchased from SQA (Sales and Despatch section). At the time of publication, the cost is 1.50 (minimum order 5.00).

2 HIGHER NATIONAL UNIT SPECIFICATION STATEMENT OF STANDARDS UNIT NUMBER: UNIT TITLE: PERFORMANCE MANAGEMENT Acceptable performance in this unit will be the satisfactory achievement of the standards set out in this part of the specification. All sections of the statement of standards are mandatory and cannot be altered without reference to SQA. OUTCOME 1. DESCRIBE THE OBJECTIVES, OPERATION, MONITORING AND EVALUATION OF PERFORMANCE MANAGEMENT SYSTEMS PERFORMANCE CRITERIA (a) (b) (c) (d) The objectives of a performance management system are clearly defined. The component parts of a performance management systems are accurately identified. The importance of maintaining performance management systems in line with organisational strategic change is accurately described. The measures used to monitor and evaluate performance management systems are clearly described. RANGE STATEMENT Component parts: measurement of performance; performance appraisal; reward systems. Measures: profitability; productivity; employee attitude surveys; labour turnover; cost benefit analysis. EVIDENCE REQUIREMENTS Written and/or oral evidence which satisfies the performance criteria and the range statement. 2

3 OUTCOME 2. EVALUATE THE CONTRIBUTION OF PERFORMANCE REVIEW AND APPRAISAL TO A PERFORMANCE MANAGEMENT SYSTEM PERFORMANCE CRITERIA (a) The principal systems of performance appraisal are accurately described. (b) The use of appraisal systems as a tool for measuring and improving performance and identifying development needs is critically evaluated. (c) The link between corporate objectives, departmental/team objectives and individual objectives within a performance management system is clearly explained. (d) The need for performance targets to be set in such a way as to have measurable performance indicators is clearly explained. (e) The importance of constructive feedback on performance is clearly described. RANGE STATEMENT The range statement for this outcome is fully expressed within the performance criteria. EVIDENCE REQUIREMENTS Written and/or oral evidence which satisfies the performance criteria and the range statement. OUTCOME 3. EXPLAIN HOW REWARD STRATEGIES MAY CONTRIBUTE TO A PERFORMANCE MANAGEMENT SYSTEM PERFORMANCE CRITERIA (a) (b) (c) (d) The objectives of and constraints on an organisation s reward strategy are clearly analysed. The need for the reward system to reflect the individual s motivational needs is clearly explained. The principal systems whereby pay may be linked to performance are critically evaluated. The potential for use of non-financial rewards is accurately explained 3

4 RANGE STATEMENT The range is fully expressed within the performance criteria. EVIDENCE REQUIREMENTS Written and/or oral evidence which satisfies the performance criteria and the range statement. MERIT A candidate who achieves all performance criteria for all outcomes will be awarded a pass. A pass with merit may be awarded to a candidate who demonstrates superior performance in some or all of the following: (a) evidence of further reading or additional research; (b) demonstration of the capacity to be innovative in assessing organisational issues ASSESSMENT In order to achieve this unit, candidates are required to present sufficient evidence that they have met all the performance criteria for each outcome within the range specified. Details of these requirements are given for each outcome. The assessment instruments used should follow the general guidance offered by the SQA assessment model and an integrative approach to assessment is encouraged. (See references at the end of support notes). Accurate records should be made of the assessment instruments used showing how evidence is generated for each outcome and giving marking schemes and/or checklists, etc. Records of candidates achievements should be kept. These records will be available for external verification. SPECIAL NEEDS Proposals to modify outcomes, range statements or agreed assessment arrangements should be discussed in the first place with the external verifier. Copyright SQA 1997 Please note that this publication may be reproduced in whole or in part for educational purposes provided that: (i) (ii) no profit is derived from the reproduction; if reproduced in part, the source is acknowledged. 4

5 HIGHER NATIONAL UNIT SPECIFICATION SUPPORT NOTES UNIT NUMBER: UNIT TITLE: PERFORMANCE MANAGEMENT SUPPORT NOTES: This part of the unit specification is offered as guidance. None of the sections of the support notes is mandatory. NOTIONAL DESIGN LENGTH: SQA allocates a notional design length to a unit on the basis of time estimated for achievement of the stated standards by a candidate whose starting point is as described in the access statement. The notional design length for this unit is 40 hours. The use of notional design length for programme design and timetabling is advisory only. PURPOSE The purpose of this unit is to enable candidates to demonstrate their knowledge and understanding of the key components of a performance management system, and of the importance of monitoring and evaluating such a system. It is aimed at candidates who have some previous knowledge of organisational behaviour, in particular theories of motivation. CONTENT/CONTEXT Corresponding to outcomes: Outcome 1: Strategic change: eg. organisational structure, priorities, core values, processes, technologies. Outcomes 2: Purpose and benefits of, and problems with, appraisal systems. open v. closed systems. Appraisal by manager, grandfather, peers, subordinated, self - 360º. Preparation/documentation. Rating methods. SMART objectives. Corresponding to Outcome 3 Individual motivational needs to reflect content, process, expectancy, equity and goal-setting theories of motivation. Non-financial rewards to include recognition, feedback, opportunities for selfdevelopment. Systems of performance related pay: merit pay liked to performance appraisal; individual bonuses; team bonuses; profit sharing; share options. 5

6 APPROACHES TO GENERATING EVIDENCE Outcome 1 - A candidatecentred learning approach should be used where possible, making use of group discussions around case studies describing a variety of different organisational contexts. Outcome 2 would lend itself to the use of role plays to allow candidates to gain experience of performance appraisal interviewing, objective setting and giving feedback on performance. For Outcome 3, candidates should be encouraged to reflect on their own experience of what motivates them, and share their conclusions with other candidates in group discussion. ASSESSMENT PROCEDURES Evidence is required to show that the candidate can define the objectives and identify the component parts of a performance management system as stated in PC s (a), (b); and can describe the importance of maintaining performance management systems and measures used to monitor and evaluate such systems as stated on PCs (c), (d). Evidence is required to show that the candidate can critically evaluate the use of performance appraisal systems, can describe systems of performance appraisal and can explain the link between organisational and individual objectives as stated in PC s (a), (b), (c). Written or oral evidence of the candidate s ability to explain the setting of performance targets and describe the importance of constructive feedback as stated in PC s (d), (e). Evidence is required to show the candidate can analyse the objectives and constraints of a reward strategy; can explain the need for the reward systems to reflect individual motivational needs; critically evaluate principal systems of linking pay to performance; and analyse the potential for use of non-financial rewards, as stated in PCs (a), (b), (c), (d). REFERENCES 1. Guide to unit writing. 2. For a fuller discussion on assessment issues, please refer to SQA s Guide to Assessment. 3. Information for centres on SQA s operating procedures is contained in SQA s Guide to Procedures. 4. For details of other SQA publications, please consult SQA s publications list. Copyright SQA 1997 Please note that this publication may be reproduced in whole or in part for educational purposes provided that: (i) (ii) no profit is derived from the reproduction; if reproduced in part, the source is acknowledged. 6