Downloaded 71 times
More Related Content
Similar to Overview of Performance Management
Overview of Performance Management
- 1. HRM751 OVERVIEW OF PERFORMANCE MANAGEMENT NUR SYAZANA BINTI HAJI AZMAN HISHAM 2012423038 ASSOC. PROF. DR ROSHIDI BIN HASSAN
- 2.
- 3.
- 4. Definition of PM 1. ContinuousProcess of Identifying Measuring Developing The performance of individuals and teams and 2. Aligning performance with Strategic Goals of the organization
- 5. Definition of PM (continued) „…theprocess 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).
- 6. Definition of PM (continued) Performancemanagement 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).
- 7. Definition of PM (continued) Effectiveperformance management-involving 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).
- 8. Definition of PM (continued) PMis “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).
- 9.
- 10.
- 11. Performance Management Philosophy Belief ofemployee performance need to be managed, to ensure that organizational goal will be achieved
- 12.
- 13. Contributions of Performance Management ForEmployees 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
- 14. Contributions of PerformanceManagement For Managers 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
- 15. Contributions of PerformanceManagement For Organization/HR Function Organizational goals are made clear Fairer and more appropriate administrative actions Better protection from lawsuits Facilitate organizational change
- 16.
- 17. Disadvantages/Dangers of Poorly-implemented PMSystems For Employees • - Lowered self-esteem • - Employee burnout and job dissatisfaction • - Damaged relationships • - Use of false or misleading information
- 18. Disadvantages/Dangers of Poorly-implemented PMSystems For Managers Increased turnover Decreased motivation to perform Unjustified demands on managers‟ resources Varying and unfair standards and ratings
- 19. Disadvantages/Dangers of Poorly-implemented PMSystems For Organization Wasted time and money Unclear ratings system Emerging biases Increased risk of litigation
- 20.
- 21. Reward Systems Motivation toobtain 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)
- 22. Reward Systems Definition Set ofmechanisms for distributing Tangible returns and Intangible or relational returns As part of an employment relationship
- 23. Reward Systems Tangible returns Cashcompensation Base pay Cost-of-Living & Contingent Pay Incentives (short- and long-term)
- 24. Reward Systems Tangible returns(continued) Benefits, such as Income Protection Allowances Work/life focus
- 25. Reward Systems Intangible returns Relationalreturns, such as Recognition and status Employment security Challenging work Learning opportunities
- 26. Types of Returnsin Performance Management System
- 27. Types of Returnsin Performance Management System Base Pay Cost of Living Adjustment and Contingent Pay Short-term Incentives Long-term Incentives Income Protection Work/Life Focus Allowances Relational Returns
- 28. Purposes of PMSystems
- 29. Purposes of PMSystems: Overview Strategic Administrative Informational Developmental Organizational maintenance Documentational
- 30. Strategic Purpose Linkindividual goals with organization‟s goals Communicate most crucial business strategic initiatives
- 31. Administrative Purpose Provideinformation for making decisions: i. Salary adjustments ii. Promotions iii. Retention or termination iv. Recognition of individual performance v. Layoffs
- 32. Informational Purpose Communicate toEmployees: Expectations What is important How they are doing How to improve
- 33. Developmental Purpose Performancefeedback/coaching Identification of individual strengths and weaknesses Causes of performance deficiencies Tailor development of individual career path
- 34. Organizational Maintenance Purpose Planeffective workforce Assess future training needs Evaluate performance at organizational level Evaluate effectiveness of HR interventions
- 35. Documentational Purpose Validateselection instruments Document administrative decisions Help meet legal requirements
- 36. Characteristics Of An IdealPM System
- 37. An Ideal PMSystem: 14 Characteristics Congruent with organizational strategy Meaningful Thorough Practical Specific Identifies effective/ ineffective performance Reliable
- 38. An Ideal PMSystem: 14 Characteristics (continued) Valid Acceptable and Fair Inclusive Open (No Secrets) Correctable Standardized Ethical
- 39. Congruent with organizational strategy -Consistent with organization‟s strategy - Aligned with unit and organizational goals
- 40. Thorough All employees areevaluated All major job responsibilities are evaluated Evaluations cover performance for entire review period Feedback is given on both positive and negative performance
- 41. Practical Available Easy to use Acceptableto decision makers Benefits outweigh costs
- 42. Meaningful Standards are importantand 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
- 43. Specific Concrete and detailedguidance to employees • What‟s expected • How to meet the expectations
- 44. Identifies effective and ineffective performance Distinguishbetween effective and ineffective Behaviors Results Provide ability to identify employees with various levels of performance
- 45.
- 46. Valid - Relevant (measureswhat is important) - Not deficient (doesn‟t measure unimportant facets of job) - Not contaminated (only measures what the employee can control)
- 47. Acceptable and Fair Perceptionof Distributive Justice Work performed Evaluation received Reward Perception of Procedural Justice Fairness of procedures used to: Determine ratings Link ratings to rewards
- 48. Inclusive Represents concerns ofall 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
- 49. Open (No Secrets) Frequent,ongoing evaluations and feedback 2-way communications in appraisal meeting Clear standards, ongoing communication Communications are factual, open, honest
- 50. Correctable Recognizes that humanjudgment is fallible Appeals process provided
- 51. Standardized Ongoing training ofmanagers to provide Consistent evaluations across People Time
- 52. Ethical Supervisor suppresses self-interest Supervisorrates only where she has sufficient information about the performance dimension Supervisor respects employee privacy
- 53. Integration with other HumanResources and Development Activities
- 54.
- 55. Issues on Performance ManagementSystem 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).
- 56. 1. Abuse againstOthers Types of CWB Incivility Workplace Aggression/Violence Sexual Harassment 2. Production Deviance Passive Production Deviance Sabotage and Theft Withdrawal
- 57. Dealing with Counterproductive WorkBehavior 1. Non - Punitive Approaches Alignment Corrective Feedback 2. Self - Management Training for Improving Job Performance 3. Punishment 4. Termination
- 58. Punishment 1. Determine whetherthere 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.