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Chapter 5 Performance Management.pptx
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- 3. • “All organizationsare perfectly designed to get the results they are now getting. If we want different results, we must change the way we do things”. -Tom Northup
- 4. At the endof this chapter, students are expected to… • Define the elements included in the evaluation of employee performance. • Differentiate between objective and subjective performance measure.
- 5. Performance Management Definition ContinuousProcess of • Identifying performance of individuals and teams • Measuring performance of individuals and teams • Developing performance of individuals and teams • Aligning performance with the strategic goals of the organization
- 6. PM is notperformance appraisal PM – Strategic business considerations – Ongoing feedback – So employee can improve performance – Driven by line manager Performance Appraisal – Assesses employee • Strengths • Weaknesses – Once a year – Lacks ongoing feedback – Driven by HR
- 7. Contribution of Performance Management •The definitions of job and success are clarified • Motivation to perform is increased • Self-esteem is increased • Self-insight and development and enhanced
- 8. Contribution of PMto Managers • Supervisors’ views of performance are communicated more clearly • Managers gain insight about subordinates • There is better and more timely differentiation between good and poor performers • Employees become more competent
- 9. Contribution of PMfor Organizations/HR Functions • Organizational goals are made clear • Organizational change is facilitated • Administrative actions are more fair and appropriate • There is better protection from lawsuits
- 10. Disadvantages/Dangers of Poorly- ImplementedPM Systems for Employees • Lowered self-esteem • Employee burnout and job dissatisfaction • Damaged relationships • Use of false or misleading information
- 11. Disadvantages/Dangers of Poorly- ImplementedPM Systems for Managers • Increased turnover • Decreased motivation to perform • Unjustified demands on managers’ resources • Varying and unfair standards and ratings
- 12. Components • Performance Planning •Managing Performance • Reviewing Performance • Rewarding Performance
- 13. When is PerformanceAppraisal Conducted? • Annually • Semi-annually • others.
- 14. Reward Systems: Definition •Set of mechanisms for distributing • Tangible returns • Intangible or relational returns • As part of an employment relationship
- 15. Tangible Returns • Cashcompensation • Base pay • Cost-of-Living & Contingent Pay • Incentives (short- and long-term) • Benefits, such as • Income Protection • Allowances • Work/life focus
- 16. Intangible Returns • Relationalreturns, such as • Recognition and status • Employment security • Challenging work • Learning opportunities
- 17. Purposes of PMSystems: Overview • Strategic • Administrative • Informational • Developmental • Organizational maintenance • Documentation
- 18. Strategic Purpose • Linkemployee behavior with organization’s goals • Communicate most crucial business strategic initiatives
- 19. Administrative Purpose • Provideinformation for making decisions re: • Salary adjustments • Promotions • Retention or termination • Recognition of individual performance • Layoffs
- 20. Informational Purpose • Communicateto Employees: • Expectations • What is important • How they are doing • How to improve
- 21. Disadvantages/Dangers of Poorly-implemented PMSystems for Organization • Wasted time and money • Unclear ratings system • Emerging biases • Increased risk of litigation
- 22. Developmental Purpose • Performancefeedback/coaching • Identification of individual strengths and weaknesses • Causes of performance deficiencies • Tailor development of individual career path
- 23. Organizational Maintenance Purpose •Plan effective workforce • Assess future training needs • Evaluate performance at organizational level • Evaluate effectiveness of HR interventions
- 24. Documentational Purpose • Validateselection instruments • Document administrative decisions • Help meet legal requirements
- 25. Characteristics of anIdeal PM System • Congruent with organizational strategy. • Thorough • Practical • Meaningful • Specific • Identifies effective and ineffective performance • Reliable • Valid • Acceptable and Fair • Open (No Secrets) • Correctable • Standardized • Ethical
- 26. Performance Interview • Itis a formal process of evaluating employee performance. (Levy 2000) • Potentially important part of any organization’s performance appraisal system that function in several ways. (Cederblon 1982) • It is the formal meeting for the specific purposes of discussing the various aspects of performance and the performance management system. (Aguinis 2009)
- 27. Main purposes ofPerformance Interview • Counseling and development • Evaluation and discussion
- 28. Importance of PerformanceInterview • It provides feedback to the central office • Feedback also eliminates surprises as staff members have a continuous discussion between staff and management.
- 29. Sample of typicalquestions • Which tasks were not performed in a satisfactory manner? What could be the reason for this? • How satisfied are you in terms of the cooperation given by your manager? • Which of the areas of cooperation is positive? Which are can still be improved? • Which qualifications and training measures are necessary and should be provided for you to achieve your career goal?
- 31. Types of PerformanceAppraisal Method • Traditional Approach • Studying the personal qualities of the employees such as: • Knowledge • Initiative • Loyalty • Leadership • Decision making characteristics • New Approach • Performance appraisal is used for developmental and motivational purposes in the organization
- 33. Performance Appraisal Measurement Methods •Ranking Method • Graphic Rating Scales • BARS Form • Narrative Method • MBO Method • Critical Incident Method • Comparative Method • Ranking method • Paired comparison • Forced distribution
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- 39. The 360 DegreeFeedback Mechanism • This is known by a variety of names to include multisource assessment. • It covers… • 360 degree feedback • Multi-rater assessment • Three dimensional or full-circle appraisal • It relies on the inputs of an employee’s superior, colleague, subordinates, customers, suppliers and sometimes spouse. • The information collected and feedback received are provided in full circular way from top down and bottom up.
- 40. Limitations of 360degree feedback • It is not a way to measure employee’s performance objectives (MBO) • It is not a way to determine whether an employee is meeting the basic job requirements. • It is not focused on basic technical and job-specific skills. • It should not used to measure objective things like attendance and sales quotas.
- 42. Types of Appraisers •Supervisor • Peer • Subordinates • Self-Appraisal • Customers
- 43. Advantages of PerformanceAppraisal • It provides documentation and records of employee’s performance. • This process creates a structure where a manager can meet and discuss performance with an individual employee. • Employees crave for feedbacks on how they are doing in their jobs. • Clarifies expectation on the side of the employee as managers can discuss clearly • It also provides an annual planning venue and for the employee to think through the goals for the incoming year. • It can motivate employees as rewards can be forthcoming depending on the results of appraisal.
- 44. Disadvantages of Performance Appraisal •It creates negative experience when not done right. • Time consuming and both parties have to relegate much efforts to do the process especially when there are hundreds of employees. • It opens possibility that there will be natural biases. • Other consider this process a waste of time. • Process can make the workplace stressful.
- 45. In a Nutshell •The company is the sum total of what all its manpower will achieve-either individually, as a term or as an organization. • Employees must perform as their peak and ensure that corporate goals are reached. • Performance is the key. • It is very essential to business – both through its informal and formal process. • It helps align the employees, resources, and systems to meet strategic objectives.
- 46. • It shouldemphasized however, that performance reviews and evaluation is not about unloading a long list of criticisms but rather an honest evaluation. • Provide an important avenue and a way for employees to quantify their performance and you give them something to work toward for the achievement of mutual goals.
- 47. Citations • Bernardin, H.J., & Wiatrowski, M. (2013). Performance appraisal. Psychology and policing, 257. • Prowse, P., & Prowse, J. (2009). The dilemma of performance appraisal. Measuring business excellence, 13(4), 69-77. • Bratton, J., Gold, J., Bratton, A., & Steele, L. (2021). Human resource management. Bloomsbury Publishing. • Stone, R. J., Cox, A., & Gavin, M. (2020). Human resource management. John Wiley & Sons. • Stewart, G. L., & Brown, K. G. (2019). Human resource management. John Wiley & Sons.
Editor's Notes
- #4 None of the organization is perfectly designed to get desired result. Only the way to get continuous desire result is to keep on improving weaknesses in your process. If you need different result in same domain then you've to first think out of the box and then you've to make sure that your thought will be in action. But, in both you've to be prudent and wise enough to take into consideration of market scenario.
- #13 It is a formal process of discussing, identifying and planning the organization as well as individual goals which an employee can and would achieve in a given time frame. It is an on going process which is designed to ensure that an individual’s performance contributes to the aims and objectives of the organization. This is a key component of employee development. It is intended to be fair and balanced. This is just as important as motivating and monitoring performance. Rewards can go beyond just the financial aspects-other incentives can be given.
- #26 Consistent with organization’s strategy. Aligned with unit and organizational goals 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. Available • Easy to use • Acceptable to decision makers • Benefits outweigh costs 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. Concrete and detailed guidance to employees • what’s expected • how to meet the expectations Distinguish between effective and ineffective – Behaviors – Results • Provide ability to identify employees with various levels of performance. Consistent • Free of error • Inter-rater reliability • Relevant (measures what is important) • Not deficient (doesn’t measure unimportant facets of job) • Not contaminated (only measures what the employee can control) Perception of Distributive Justice – Work performed - evaluation received - reward • Perception of Procedural Justice – Fairness of procedures used to: • Determine ratings • Link ratings to rewards Frequent, ongoing evaluations and feedback • 2-way communications in appraisal meeting • Clear standards, ongoing communication • Communications are factual, open, honest Recognizes that human judgment is fallible • Appeals process provided Ongoing training of managers to provide Consistent evaluations across – People – Time Supervisor suppresses self-interest • Supervisor rates only where he/she has sufficient information about the performance dimension • Supervisor respects employee privacy
- #28 It is about employees performance which allow employees to improve their performances by identifying performance problem encountered and to look for solution to overcome the problem.
- #29 1. It can be the basis for the coaching, accountability-based performance appraisals, designing a human resource plan
- #34 Simplest method as jobs are arranged from highest to lowest. In order to establish value of such job to the organization. It can be arranged according to the level of difficulties in performing it. It is a scale that lists a number of traits and a range of performance for each of the employee. They are then rated identifying scores that best describes the employee’s performance. Combines the elements from the critical incident report and graphic rating scale approaches. The supervisor rates the employees according to the items on a numerical scale Evaluator writes an explanation about the employees strength and weaknesses, his previous performance and recommended areas of improvement Employees are evaluated on how well they are accomplished a specific set of objectives. It is keeping a record of uncommonly good or bad and undesirable examples of an employees work related to behavior and reviewing it with the employee Identify one worker’s level or standing compared to another worker. Employees from best to the worst are ranked on a particular trait, choosing the highest then the lowest until all concerned employees are ranked Each person is directly compared with all the other being rated A set of percentage of all those being rated into a pre-determined performance category
- #40 This feedback process gives opportunity for anonymous feedback to a co-worker and they might be uncomfortable giving directly. It also gain insights on how others perceived them and therefore, have a chance to adjust behaviors and develop skills that will give them avenues to excel in their jobs.
- #43 They are in the best position to evaluate employee’s performance especially those directly under them. They are interact with the one being evaluated, they know the level of performance of the person being evaluated. They are very valuable as source of information regarding particular aspects of a supervisor or leader’s performance to include delegation. This is to be used for developmental purposes. They also can assist in terms of giving feedbacks for as long as we are careful in watching for built in biases.