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Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
Chapter 10   dessler 12-ce_ppt_ch10
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Chapter 10 dessler 12-ce_ppt_ch10

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  • 1. Chapter 10: Performance Management Performance Management | 10-1 Copyright © 2014 Pearson Canada Inc. All rights reserved. Dessler, Chhinzer, Cole Human Resources Management in Canada Canadian Twelfth Edition
  • 2. Learning Outcomes • DESCRIBE five performance appraisal methods and the pros and cons of each. • DISCUSS the major problems inhibiting effective performance appraisals. Performance Management | 10-2 Copyright © 2014 Pearson Canada Inc. All rights reserved. • EXPLAIN the five steps in the performance management process.
  • 3. Learning Outcomes • DESCRIBE the three types of appraisal interviews. • DISCUSS the future of performance management. Performance Management | 10-3 Copyright © 2014 Pearson Canada Inc. All rights reserved. • DISCUSS 360-degree appraisal from multiple sources.
  • 4. Performance Management • includes goal setting, pay for performance, training and development, career management, and disciplinary action Performance Management | 10-4 Copyright © 2014 Pearson Canada Inc. All rights reserved. The process encompassing all activities related to improving employee performance, productivity, and effectiveness.
  • 5. Performance Management Process Step 5: Conduct development and career opportunity discussions Step 3: Conduct performance appraisal and evaluation discussions Step 2: Provide ongoing feedback and coaching Step 1: Define performance expectations Performance Management | 10-5 reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Step 4: Determine performance rewards/consequences
  • 6. Step 1: Defining Performance Expectations Task performance • direct contribution to job-related processes • indirect contribution to the organization’s social responsibility values Legal considerations • correlate performance expectations to job activities Performance Management | 10-6 Copyright © 2014 Pearson Canada Inc. All rights reserved. Contextual performance
  • 7. Step 2: Providing Ongoing Coaching and Feedback • employee responsible for monitoring own performance, and asking for help • manager responsible for communicating changing strategies and objectives if applicable Performance Management | 10-7 Copyright © 2014 Pearson Canada Inc. All rights reserved. • important to have open two-way communication
  • 8. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Performance Improvement Plan (PIP) Performance Management | 10-8 continued
  • 9. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Performance Improvement Plan (PIP) Performance Management | 10-9
  • 10. Step 3: Performance Appraisal and Evaluation Discussion Formal appraisal methods: • graphic rating scale • alternation ranking • forced distribution • critical incident • narrative forms • behaviourally anchored rating scales (BARS) • management by objectives (MBO) Performance Management | 10-10 Copyright © 2014 Pearson Canada Inc. All rights reserved. • paired comparison
  • 11. Graphic Rating Scale • the employee is given a rating that best describes the level of performance for each trait Performance Management | 10-11 Copyright © 2014 Pearson Canada Inc. All rights reserved. • a scale that lists a number of traits and a range of performance for each
  • 12. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Graphic Rating Scale - Sample continued Performance Management | 10-12
  • 13. continued Performance Management | 10-13 reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Graphic Rating Scale - Sample
  • 14. continued Performance Management | 10-14 reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Graphic Rating Scale - Sample
  • 15. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Graphic Rating Scale - Sample Performance Management | 10-15
  • 16. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Alternation Ranking Method Performance Management | 10-16
  • 17. Paired Comparison Method • for each pair, indicate “+” for the higher ranked employee, “-” for the lower ranked • rank employees by trait based on number of “+” scores Performance Management | 10-17 Copyright © 2014 Pearson Canada Inc. All rights reserved. • for each trait, list all possible pairs of employees
  • 18. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Paired Comparison Sample Performance Management | 10-18
  • 19. Forced Distribution Method • predetermined percentages of ratees are placed in various performance categories • • • • • 15 20 30 20 15 percent percent percent percent percent Performance Management | 10-19 high performers high-average performers average performers low-average performers low performers Copyright © 2014 Pearson Canada Inc. All rights reserved. • example:
  • 20. Keeping a record of uncommonly good or undesirable examples of an employee’s work-related behaviour and reviewing the list with the employee at predetermined times. Performance Management | 10-20 Copyright © 2014 Pearson Canada Inc. All rights reserved. Critical Incident Method
  • 21. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Critical Incident Sample Performance Management | 10-21
  • 22. Narrative Forms • free form report of performance Copyright © 2014 Pearson Canada Inc. All rights reserved. • may take form of performance improvement plan Performance Management | 10-22
  • 23. An appraisal method that aims to combine the benefits of narratives, critical incidents, and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance. Performance Management | 10-23 Copyright © 2014 Pearson Canada Inc. All rights reserved. Behaviourally Anchored Rating Scales (BARS)
  • 24. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Behaviourally Anchored Rating Scales Sample Performance Management | 10-24
  • 25. Behaviourally Anchored Rating Scales (BARS) Advantages • a more accurate measure • Assists in providing feedback • independent dimensions • Consistency Disadvantage • time-consuming Performance Management | 10-25 Copyright © 2014 Pearson Canada Inc. All rights reserved. • clearer standards
  • 26. Management by Objectives (MBO) Step 6: Provide feedback Step 4: Define expected results (individual goals) Step 3: Discuss departmental goals Step 2: Set departmental goals Step 1: Set the organization’s goals Performance Management | 10-26 reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Step 5: Performance reviews: measure results
  • 27. Use of Technology in Performance Appraisals • provides overall performance management process • provides employees with clear development path • advanced reporting capabilities • electronic performance monitoring (EPM) Performance Management | 10-27 Copyright © 2014 Pearson Canada Inc. All rights reserved. • enables managers to automate record keeping and report writing
  • 28. Performance Appraisal Problems • validity and reliability • unclear performance standards • halo effect • central tendency Performance Management | 10-28 • • • • leniency or strictness appraisal bias recency effect similar-to-me bias Copyright © 2014 Pearson Canada Inc. All rights reserved. • rating scale problems
  • 29. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Example of Unclear Standards Performance Management | 10-29
  • 30. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved Advantages and Disadvantages of Appraisal Methods Performance Management | 10-30
  • 31. Who Should Do the Appraising? • supervisors • self • committees • subordinates • 360-degree appraisal (all of the above) Performance Management | 10-31 Copyright © 2014 Pearson Canada Inc. All rights reserved. • peers
  • 32. reserved. Copyright © 2014 Pearson Canada Inc. All rights reserved 360-Degree Appraisal Performance Management | 10-32
  • 33. 360-Degree Appraisal Advice • have performance criteria developed by people familiar with the job • provide training for all participants • ensure confidentiality • evaluate 360-degree system for fine-tuning Performance Management | 10-33 Copyright © 2014 Pearson Canada Inc. All rights reserved. • be clear about who will have access to reports
  • 34. Formal Appraisal Discussions • supervisor and employee: • review appraisal, and plan to remedy deficiencies and reinforce strengths • satisfactory—promotable: development plans • satisfactory—not promotable: maintain performance • unsatisfactory—correctable: action plan to correct performance Performance Management | 10-34 Copyright © 2014 Pearson Canada Inc. All rights reserved. • types of interviews:
  • 35. How to Conduct the Interview 1. Be direct and specific • use objective work data • compare against standard 3. Encourage the person to talk • use open-ended questions, listen 4. Develop an action plan • agree on future steps Performance Management | 10-35 Copyright © 2014 Pearson Canada Inc. All rights reserved. 2. Do not get personal
  • 36. How to Handle Criticism and Defensive Employees 1. Recognize that defensive behaviour is normal 3. Postpone action 4. Recognize human limitations Performance Management | 10-36 Copyright © 2014 Pearson Canada Inc. All rights reserved. 2. Never attack a person’s defenses
  • 37. Ensuring the Discussion Leads to Improved Performance 1. Notify of unacceptable performance, explain minimum expectations 3. Explain role of warnings in the process of establishing just cause 4. Take prompt corrective measures 5. Avoid sending mixed messages 6. Provide a reasonable amount of time for improvement 7. Provide support to facilitate improvement Performance Management | 10-37 Copyright © 2014 Pearson Canada Inc. All rights reserved. 2. Ensure that expectations are reasonable
  • 38. Step 4: Determine Performance Rewards/Consequences • important aspects used to determine the appropriate reward/consequence: • • achievement of goals how the employee meets the defined standards Performance Management | 10-38 Copyright © 2014 Pearson Canada Inc. All rights reserved. • provide performance awards: merit pay, extra pay
  • 39. Step 5: Career Development Discussion • based on current job requirements or future development • business needs must be balanced with the employee’s preferences Performance Management | 10-39 Copyright © 2014 Pearson Canada Inc. All rights reserved. • manager and employee discuss opportunities for development
  • 40. Legal and Ethical Issues • determine required characteristics through job analysis • ensure ratees and raters know performance standards • use clearly defined dimensions of performance • avoid abstract trait names • use subjective ratings as only one component Performance Management | 10-40 Copyright © 2014 Pearson Canada Inc. All rights reserved. • use characteristics in rating system
  • 41. Legal and Ethical Issues • train supervisors • allow raters regular contact with ratee • use formal appeal mechanism • document evaluations and reasons for termination • provide corrective guidance to lower performers Performance Management | 10-41 Copyright © 2014 Pearson Canada Inc. All rights reserved. • have more than one rater, if possible
  • 42. The Future of Performance Management • linking individual goals and business strategy • showing leadership and accountability • ensuring close ties among appraisal results, rewards, and recognition outcomes • investing in employee development planning • having an administratively efficient system with sufficient communication support Performance Management | 10-42 Copyright © 2014 Pearson Canada Inc. All rights reserved. • Effective performance management involves:

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