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Performance mgmt

Performance mgmt






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    Performance mgmt Performance mgmt Presentation Transcript

    • Performance Management
    • The meaning of “Performance ”
      • “ It’s a multi-dimensional construct, the measurement of which varies, depending on a variety of factors.”
    • Integration of performance management
      • Vertical integration
      • Functional integration
      • HR integration
      • Integration of individual needs with that of the organization.
    • Purpose of Performance Management
      • Better results from organization, teams & individuals -> by understanding and managing performance within an agreed framework of planned goals, standards & competence requirements.
      • Process of shared understanding of what needs to be achieved -> an approach to managing & developing people in a way that increases the profitability that will be achieved in the short & long term.
    • Concerns of performance management
      • Performance improvement
      • Employee development
      • Satisfying the expectations of the organization’s stakeholders
      • Communication and involvement
      • The Appraisal Process
    • Performance Appraisal
      • Performance appraisal involves the identification , measurement , and management of human performance in organizations.
      • Identification means determining what areas of work the manager should be examining when measuring performance.
      • Measurement , the centerpiece of the appraisal system,
      • entails making managerial judgments of how good or bad
      • employee performance was.
      • Management is the overriding goal of any appraisal system.
      • Appraisal should be more than a past-oriented activity that criticizes or praises workers for their performance in the preceding year. Rather, appraisal must take a future oriented view of what workers can do to achieve their potential in the organization. This means that managers must provide workers with feedback and coach them to higher levels of performance.
    • Performance Appraisal Process
      • Performance management is concerned with improving individual and team performance
      • The process
      • Performance appraisal is planned, developed and implemented through a series of steps:
      • Establish performance standards.
      • Communicate the standards.
      • Measure actual performance.
      • Compare actual performance with standards and discuss the appraisal.
      • Taking corrective action, if necessary.
      • “ The Supervisor’s Role”
    • Who Conducts Performance Appraisal
      • The appraiser may be any person who has thorough knowledge about the job content, contents to be appraised, standards of contents and who observes the
      • employee while performing the job. The appraiser
      • should be capable of determining what is more important and what is relatively less important. He should prepare reports and make judgments without bias.
      • Supervisors
      • Peers
      • Sub-ordinates
      • Self-appraisal
      • Users of services
      • Consultants
      • Performance appraisal is a means of getting better results from the organization, teams and individuals by understanding and managing performance within an agreed framework of planned goals, standards and competence requirements . It is a process for establishing shared understanding about what is to be achieved, and an approach to managing and developing people in a way that increases the probability that it will be achieved in the short and longer term.
      • Employer perspective
      • Employee perspective
      The Uses Or Benefits Of Performance Appraisal
    • Problems with performance appraisal The problems inherent in performance appraisal may be listed thus: Judgment errors poor appraisal forms Lack of rater preparedness Ineffective organizational policies and practices
      • Judgment errors: people commit mistakes while evaluating people and their performance. Biases and judgment errors of various kinds may spoil the show. Bias here refers to inaccurate distortion of a measurement. A few of them are:
        • first impressions (primary effect)
        • halo
        • horn effect
        • leniency
        • central tendency
        • stereotyping
        • recency effect
      • Lack of rater preparedness: the raters may not be adequately trained to carry out performance management activities. This becomes a serious limitation when the technical competence of a ratee is going to be evaluated by a rater who has limited functional specialization in that area.
      • Ineffective organizational policies and practices: if the sincere appraisal effort put in by a rater is not suitably rewarded, the motivation to do the job thoroughly finishes off. Sometimes, no rating given by raters are viewed negatively by management-as a sign of failure on the part of rater or as an indication of employee discontent
      • poor appraisal forms: the appraisal process might also be influenced by the following factors relating to the forms that are used by raters
        • The rating scale may be quite vague and unclear.
        • The rating firm may ignore important aspects of job performance.
        • The rating firm may contain additional, irrelevant performance dimensions.
        • the forms may be too long and complex
    • Essential Characteristics Of An Effective Appraisal System
      • Performance appraisal system should be effective as a number of crucial decisions are made on the basis of score or rating given by the appraiser, which in turn, is heavily based on the appraisal system. Appraisal system, to be effective, should possess the following characteristics:
      • Reliability and validity
      • Job relatedness
      • Standardization
      • Practical viability
      • Legal sanction
      • Training to appraisers
      • Open communication
      • Employee access to results
      • Due process
      • Performance appraisal should be used primarily to develop employees as valuable resources. Only then it would show promising results. When management uses it as a whip or fails to understand its limitations, it fails. The key is not which form or which method is used
    • Appraisal Methods
    • Performance appraisals are used for many purposes, including:
      • deciding promotions
      • determining transfers
      • making termination decisions
      • identifying training needs
      • identifying skill and competency deficits
      • providing employee feedback
      • determining reward allocations
    • Key factor of Appraisal System
      • The performance appraisal system should:
      • be correlated with the organizational mission, philosophies and value system;
      • cover assessment of performance as well as potential for development;
      • take care of organizational as well as individual needs; and
      • help in creating a clean environment by
      • - linking rewards with achievements, - generating information for the growth of the employee as well as of the organization, and
      • - suggesting appropriate person-task matching and career plans.
    • Classification
      • Performance Appraisal methods can
      • be broadly classified as :-
        • Measuring Traits
        • Behaviors
        • Results
    • Contd.
      • Trait Method- It is a more popular system despite its inherent subjectivity.
      • Behavioral Approach- It provides more action oriented information to employees & therefore may be best for development.
      • Results-oriented Approach- Its gaining popularity because it focuses on the measurable contribution that employees make to the organisation.
    • Graphic rating – scale method
      • A trait approach to performance appraisal whereby each employee is related according to a scale of characteristics.
      • Space should be provided for comments which improves the accuracy of the appraisal.
    • Appraise employee’s performance in present assignment Knowledge of work: Understanding of all phases of work & related matters REMARKS: Needs instruction or guidance Has required knowledge of own & related work Has exceptional knowledge Initiative: Ability to originate or develop ideas & to get things started REMARKS: Lacks imagination Meets necessary requirements Unusually resourceful Application: Attention & application to work REMARKS: Wastes time. Needs improvement Steady & willing worker Exceptionally industrious Quality of work: Thoroughness, neatness & accuracy of work REMARKS: Needs improvement Regularly Meets Standard Consistently maintains Highest quality Volume of work: Quantity of acceptable work REMARKS: Should be increased Regularly meets recognized standards Unusually High output
    • Mixed – Standard Scale Method
      • A trait approach to performance appraisal
      • similar to other scale methods.
      • Based on comparison with (better than,
      • equal to, or worse than) a standard.
    • Example of a mixed – standard scale
      • DIRECTIONS: Please indicate whether the individual’s performance is above(+), equal to (0), or lower (-) than each of the following standards.
      • ( ) Employee uses good judgement when addressing problems & provides workable alternatives; however at times does not take actions to prevent problems.( medium PROBLEM SOLVING)
      • ( ) Employee lacks supervisory skills; frequently handles employees poorly & is at times argumentative. (low LEADERSHIP)
      • ( ) Employee is extremely cooperative; can be expected to take the lead in developing cooperation among employees ; completes job tasks with a positive attitude. (high COOPERATION)
      • ( ) Employee has effective supervision skills; encourages productivity, quality & employee development. (medium LEADERSHIP)
    • Contd…
      • 5. ( ) Employee normally displays an argumentative or defensive attitude toward fellow employees & job assignments. ( low COOPERATION)
      • ( ) Employee is generally agreeable but becomes argumentative at times when given job assignments; cooperates with other employees as expected. (medium COOPERATION)
      • ( ) Employee is not good at solving problems; uses poor judgement & does not anticipate potential difficulties. ( low PROBLEM SOLVING)
      • ( ) Employee anticipates potential problems & provides creative, proactive solutions; has good attention to follow up. (high PROBLEM SOLVING)
      • ( ) Employee displays skilled direction; effectively coordinates unit activities; is generally a dynamic leader & motivates employees to high performance. (high LEADERSHIP)
    • Forced – Choice Method
      • A trait approach to performance appraisal that requires the rater to choose from statements.
      • The statements are designed to distinguish between successful & unsuccessful performance.
      • The statements may be equally favorable or equally unfavorable .
    • E.g: forced – choice pairs might include the following:
      • ( ) a- Works hard
      ( ) b- Works quickly 2. ( ) a- Shows initiative ( ) b- Is responsive to customers 3. ( ) a- Produces poor quality ( ) b- Lacks good work habits
    • Essay Method
      • “ A trait approach to performance appraisal that requires the rater to compose a statement describing employee behavior.”
    • Behavioral Methods
      • Behavioral methods have been developed to specifically describe which actions should (or should not) be exhibited on the job.
      • Useful for providing employees with developmental feedback.
    • Contd….
      • For many jobs, performance is so broadly defined or so conceptual in nature
      • — such as ensuring public safety in the police de partment—that it is hard to come up with reliable performance measures.
      • In such cases, desirable behaviors can be identified and assessed in the belief that such behaviors lead to successful performance.
      • Such behavior-focused assessment encourages employees to adopt desirable behavioral patterns in the workplace
    • Critical Incident Method
      • Unusual event that denotes superior or inferior employee performance in some part of the job.
      • A critical incident occurs when employee behavior results in unusual success or unusual failure in some part of the job.
      • As behavioral incidents are specific they can facilitate employee feedback & development.
    • Behavioral Checklist Method
      • One of the oldest appraisal techniques.
      • The rater checks those statements on a list that he/she believes are characteristics of the employee’s performance or behavior.
    • A checklist developed for computer sales persons might include a number of statements like the following
      • ( ) Is able to explain equipment clearly.
      • ( ) Keeps updates of new
      • developments in technology.
      • ( ) Tends to be a steady worker.
      • ( ) Reacts quickly to customer needs.
      • ( ) Processes orders correctly.
    • Behaviorally Anchored Rating Scale (BARS)
      • Behaviorally Anchored Rating Scales (BARS) is a performance appraisal technique developed by Smith and Kendall for assessing the performance of an employee as part of an appraisal process.
      • It consists of a series of vertical scales.
      • One for each important dimension of job performance .
    • Steps
      • The technique consist out of 4 steps:
      • Break down the job into its key performance dimensions (tasks).
      • Identify a range of possible behaviors that can be displayed by an employee when he is undertaking the
      • task.
      • Place these behaviors on a scale ranging from ineffective
      • to excellent performance. The approach uses ratings to communicate different levels of proficiency requirements. Planning and organizing requirements might be rated a "4" on a five point scale for a manager and rated a "2" for the administrative assistant. Behaviorally anchored rating scales are constructed that give typical examples of the types of activities or behaviors performed at each rating point.
      • Assess the employee against these scales for each of the task.
    • Behavior Observation Scale (BOS)
      • A behavioral approach to performance appraisal that measures the frequency of observed behavior.
      • Companies such as AT&T, Dayton – Hudson prefers BOS over BARS for:
      • Maintaining objectivity
      • Distinguishing good from poor performers
      • Providing feedback
      • Identifying training needs
    • Sample Items from BOS
      • For each behavior observed , use the following scale:
      • 5 represents almost always 95-100%
      • 4 represents frequently 85-94%
      • 3 represents sometimes 75-84%
      • 2 represents seldom 65-74%
      • 1 represents almost never 0-64%
    • Sales Productivity
      • Reviews individual productivity results with manager
      1 2 3 4 5 2. Suggests to peers ways of building scales 1 2 3 4 5
      • Formulates specific objectives for
      • each for each contact
      1 2 3 4 5 4. Focuses on product rather than customer problem 1 2 3 4 5 5. Keeps account plans updated 1 2 3 4 5
      • Keeps customer waiting for
      • service
      1 2 3 4 5
    • Results method
      • It is a method used by organizations which evaluate employee accomplishments – the results they achieve through their work.
      • E.g – sales figures, production output
      • Results appraisal gives employees responsibility for their outcomes.
      • It is empowerment in action .
    • Productivity measures
      • Sales people – sales volume
      • Production workers – no. of units produced, scrap rate, no. of defects detected
      • Executives – company profits, growth rate
      • Thus helps in aligning employee & organization goals
    • Management by objectives (MBO)
      • This philosophy was proposed by Peter Drucker in 1954
      • Philosophy of management that rates performance on the basis of employee achievement of goals
      • These goals are set by mutual agreement of employee & manager
    • Performance Appraisal under an MBO Program
      • Step 1: Organization goals & metrics
      • Step 2: Department goals & metrics
      • Step 3A: Superior lists goals for subordinates
      • Step 3B: Subordinate proposes goals
      • Step 4: Mutual agreement of goals
      • Step 5A: Inappropriate goals deleted
      • Step 5B: New inputs are then provided (interim review)
      • Step 6: Final review
      • Step 7: Review of organization performance
    • Appraisal Performance (Problems & Solutions)
    • Problem areas
      • Recent performance most influential
      • Focus on outstanding events
      • Personal feelings - halo effect
      • Lack of yardsticks
      • Rater attitudes
      • Leniency/stringency error
      • Similar-to-me error
    • Problem Areas (Continued )
      • Central tendency error
      • First impression error
      • Racial bias
      • Focus on longevity
      • Complacency of managers
    • Avoiding Appraisal Problems
        • Evaluating individual job performance as a basis for making objective personnel decisions.
      • Making Performance Appraisals Legally Defensible
        • Use job analysis to develop the appraisal system.
        • Check that the appraisal system is behavior-oriented, not trait-oriented.
        • Have evaluators follow specific written instructions when conducting appraisals.
        • Have evaluators review results with the ratees.
    • Performance Appraisal (cont’d)
      • Alternative Performance Appraisal Techniques
        • Goal setting (MBO)
        • Written essays
        • Critical incidents
        • Graphic rating scales
          • Behaviorally anchored rating scales (BARS)
        • Weighted checklists
        • Rankings and comparisons
        • Multirater appraisals
        • 360-degree review
    • 360 Degree Performance Reviews Supervisor Subordinates Self Potential sources Of performance appraisals Customers Or client Peers