Chapter 1: Overview of Performance Management

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CHAPTER 1: OVERVIEW OF PERFORMANCE MANAGEMENT

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Chapter 1: Overview of Performance Management

  1. 1. HRM751 OVERVIEW OF PERFORMANCE MANAGEMENT   NUR SYAZANA BINTI HAJI AZMAN HISHAM  2012423038 ASSOC. PROF. DR ROSHIDI BIN HASSAN
  2. 2. Continuous Process of 1.    Identifying Measuring Developing The performance of individuals and teams and 2. Aligning performance with Strategic Goals of the organization
  3. 3.  „…the process where steering of the organization takes place through the systematic definition of mission, strategy and objectives of the organization, making these measurable through critical success factors and key performance indicators, in order to be able to take corrective actions to keep the organization on track‟ (Waal, Goedegebuure, &Geradts, 2011).
  4. 4.  Performance management can be regarded as a systematic process by which the overall performance of an organization can be improved by improving the performance of individuals within a team framework (Singh, 2012).
  5. 5.  Effective performance managementinvolving a complete system of goal setting, training, communication, and ongoing feedback-is a practice on which research often has important implications (Helm, Courtney L, Frank R, & Christine, 2007).
  6. 6.  PM is “something that people actually do and can be observed . . . Performance is what the organization hires one to do, and do well. Performance is not the consequence or result of action, it is the action itself” (W. Smither& London, 2009).
  7. 7. Performance Management is NOT Performance Appraisal
  8. 8. Value-based approach to evaluate the performance of employees, (Bhattacharyya, 2011)
  9. 9.  Increase motivation to perform  Increase self-esteem  Clarify definitions of  job  success criteria Enhance self-insight and development  Motivation, commitment and intentions to stay in the organization are enhanced 
  10. 10.  Managers gain insight about subordinates  Employees become more competent  Better and more timely differentiation between good and poor performers  Communicate supervisors’ views of performance more clearly
  11. 11.  Organizational goals are made clear  Fairer and more appropriate administrative actions  Better protection from lawsuits  Facilitate organizational change
  12. 12. - Lowered self-esteem - Employee burnout and job dissatisfaction • - Damaged relationships - Use of false or misleading information • • •
  13. 13.  Increased turnover  Decreased motivation to perform  Unjustified demands on managers’ resources  Varying and unfair standards and ratings
  14. 14.  Wasted time and money  Unclear ratings system  Emerging biases  Increased risk of litigation
  15. 15. Motivation to obtain rewards is one of the fundamental drives underlying much of both human and non-human animal behavior (Christian & Ian, 2008). Reward systems can shape the behavior of employees within the organization (Suliyanto, 2011)
  16. 16. Set of mechanisms for distributing  Tangible returns and  Intangible or relational returns As part of an employment relationship
  17. 17.  Cash compensation Base pay Cost-of-Living & Contingent Pay Incentives (short- and long-term)
  18. 18.  Benefits, such as Income Protection Allowances Work/life focus
  19. 19.  Relational returns, such as Recognition and status Employment security Challenging work Learning opportunities
  20. 20. Base Pay Cost of Living Adjustment and Contingent Pay Short-term Incentives Long-term Incentives Income Protection Work/Life Focus Allowances Relational Returns
  21. 21. Strategic Administrative Informational Developmental Organizational maintenance Documentational
  22. 22.  Link individual goals with organization’s goals  Communicate most crucial business strategic initiatives
  23. 23.  Provide information for making decisions: i. Salary adjustments ii. Promotions iii. Retention or termination iv. Recognition of individual performance v. Layoffs
  24. 24. Communicate to Employees:  Expectations  What is important  How they are doing  How to improve
  25. 25.  Performance feedback/coaching  Identification of individual strengths and weaknesses  Causes of performance deficiencies  Tailor development of individual career path
  26. 26.  Plan effective workforce  Assess future training needs  Evaluate performance at organizational level  Evaluate effectiveness of HR interventions
  27. 27.  Validate selection instruments  Document administrative decisions  Help meet legal requirements
  28. 28. Congruent with organizational strategy Meaningful Thorough Practical Specific Identifies effective/ ineffective performance Reliable
  29. 29. Valid Acceptable and Fair Inclusive Open (No Secrets) Correctable Standardized Ethical
  30. 30. Consistent with organization’s strategy  - Aligned with unit and organizational goals -
  31. 31.  All employees are evaluated  All major job responsibilities are evaluated  Evaluations cover performance for entire review period  Feedback is given on both positive and negative performance
  32. 32.  Available  Easy to use  Acceptable to decision makers  Benefits outweigh costs
  33. 33.  Standards are important and relevant  System measures ONLY what employee can control  Results have consequences  Evaluations occur regularly and at appropriate times  System provides for continuing skill development of evaluators
  34. 34. Concrete and detailed guidance to employees • What’s expected • How to meet the expectations
  35. 35.  Distinguish between effective and ineffective • Behaviors • Results  Provide ability to identify employees with various levels of performance
  36. 36.  Consistent  Free of error  Inter-rater reliability
  37. 37. - Relevant (measures what is important)  - Not deficient (doesn’t measure unimportant facets of job)  - Not contaminated (only measures what the employee can control)
  38. 38.  Perception of Distributive Justice • Work performed  Evaluation received  Reward  Perception of Procedural Justice • Fairness of procedures used to:  Determine ratings  Link ratings to rewards
  39. 39. Represents concerns of all involved • When system is created, employees should help with deciding  What should be measured  How it should be measured • Employee should provide input on performance prior to evaluation meeting
  40. 40.  Frequent, ongoing evaluations and feedback  2-way communications in appraisal meeting  Clear standards, ongoing communication  Communications are factual, open, honest
  41. 41.  Recognizes that human judgment is fallible  Appeals process provided
  42. 42.  Ongoing training of managers to provide  Consistent evaluations across • People • Time
  43. 43.  Supervisor suppresses self-interest  Supervisor rates only where she has sufficient information about the performance dimension  Supervisor respects employee privacy
  44. 44. PM provides information for: PM + TRAINING PM + WORKFORCE PLANNING PM + TALENT MANAGEMENT PM + COMPENSATION SYSTEM
  45. 45. Counterproductive work behavior (CWB) has been defined as “volitional acts that harm or intend to harm organizations and their stakeholders (for example, clients, co-workers, customers, and supervisors)” (Atwater & Elkins, 2009).
  46. 46. 1. Abuse against Others  Incivility  Workplace Aggression/Violence  Sexual Harassment 2. Production Deviance  Passive Production Deviance  Sabotage and Theft  Withdrawal
  47. 47.  1.  2. Non - Punitive Approaches  Alignment  Corrective Feedback Self - Management Training for Improving Job Performance  3. Punishment  4. Termination
  48. 48. 1. Determine whether there are legal issues that should be taken into account.  2. Consider only work - related factors.  3. Apply policies and decision - making rules consistently.  4. Allow employees a voice in the discipline process.  5. Make the punishment consistent with the severity of the offense.  6. Communicate clear performance expectations.  7. Provide employees with sufficient time to improve their performance or change their behavior. 

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