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Activity 1 1.1 Explain at least 2 purposes of Performance Management and its relationship to Business Objectives: - * Performance Management is a holistic procedure which collectively brings various types of elements that constitute towards the flourishing exercise of people management including, above all, learning and development. The purpose of performance management is to develop the ability of individuals to meet and often exceed expectations to achieve their full potential in the individuals given field of expertise, therefore benefitting themselves and the organisation. Performance Management provides an origin for self-development and it helps ensure that the support and direction these individuals require to improve is readily available. Perhaps the most significant purpose of performance management is the consistent communication of strategic goals with operational workers and the resulting performance achievements of associated people and processes. This aids motivating employees to become high performers because they feel valued within the organisation and because they can relate their performance towards organisational success through performance management.

1.2 Identify 3 components of Performance Management systems: - * Have clear easily defined job descriptions for each and every specific position in the company and ensure that employees’ goals are aligned with those of the organisation. * Involve collaboration between managers and employees: two way communication is essential to good and effective practice. An organisation that has a successful performance management system in place will foster an open environment that allows for freedom and discussion. * Recognise employees’ accomplishments, even those that may be difficult to quantify.

1.3 Explain the relationship between motivation and

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