Slide 9.1

PERFORMANCE MANAGEMENTAND PERFORMANCE

APPRAISAL

CHAPTER 8

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Slide 9.2 Defining Performance

••

Performance is:BehaviourWhat employees do

Slide 9.3 Defining Performance

••

Performance is NOT:Results or OutcomesWhat employees produce

Slide 9.4Behaviors are Not always

––

ObservableMeasurable

Slide 9.5

Results/Consequences may beused

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To infer behaviourAs proxy for behaviouralmeasure

Slide 9.6Determinants of Performance

Performance =

Declarative Knowledge

X

Procedural Knowledge

X

Motivation

Slide 9.7A. Declarative Knowledge

•––––

•

Information aboutFactsLabelsPrinciplesGoals

Understanding of task requirements

Slide 9.8

B. Procedural Knowledge

•––

KnowingWhat to doHow to do it

and

Slide 9.9

Procedural Knowledge (continued)

•––––

SkillsCognitivePhysicalPerceptualInterpersonal

Slide 9.10 C. Motivation

•–––

ChoicesExpenditure of effortLevel of effortPersistence of effort

Slide 9.11

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Definition of PerformanceManagement

Armstrong and Baron (1998) define performance management tomean:

‘ a process which contributes to the effectivemanagement of individuals and teams byestablishing shared understanding aboutwhat is to be achieved and an approach todeveloping the people who will ensure it isachieved’. Armstrong, M. and Baron A.(1998)

Slide 9.12 Definition of PM

1.

Continuous Process ofIdentifyingMeasuringDeveloping

The performance of individuals and

teams

Slide 9.13Definition of PM (continued)

2.and

Aligning performance

with

Strategic Goals of theorganization

Slide 9.14

• According to Armstrong and Baron(1998), PM should be a tool to ensurethat managers manage effectively. Themanagers should ensure that thepeople or teams they manage:

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Slide 9.15

Know and understand what is expected of them Have skills necessary to deliver on theseexpectations Are supported by the organisation to develop thecapacity to meet these expectations Are given feedback on performance Have the opportunity to discuss and contributeto individual and team aims and objectives

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Slide 9.16

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Typical Features of PerformanceManagement for the Individual (1)

•

•••••

Objective performance appraisal andassessment360 degree appraisalPerformance and development reviewsClear links with job descriptionsMeasurementIndividual development plans

Slide 9.17

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Typical Features of PerformanceManagement for the Individual (2)

•••••

Performance-related pay (PRP)Competencies assessedLearning and developmentCoachingPerformance problem solving

Slide 9.18

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Typical Features of PerformanceManagement for the Team (1)

••

••

Objective and ongoing assessmentAnnual/6-monthly reviews with performanceindicatorsTeam buildingQuality circles

Slide 9.19

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Typical Features of PerformanceManagement for the Team (2)

••••

Team incentivesLearning and developmentCoachingPerformance problem solving

Slide 9.20

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Typical Features of PerformanceManagement for the Team (3)

•••

Learning and developmentCoachingPerformance problem solving

editor: Pleasey if ‘Team’d benisation’.

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Slide 9.21

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Typical Features of PerformanceManagement for the Organisation (1)

••••

•

MeasurementTotal quality managementOrganisation-wide incentivesOngoing assessment of organisation’sobjectivesQuality of working life

Slide 9.22

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Typical Features of PerformanceManagement for the Organisation (2)

••••

The learning organisationISO 9000 or other quality initiatives such asThe balanced scorecardWays to get line managers’ commitment

yeditor: Pleasefy if ‘Team’

uld beanisation’.

Slide 9.23

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

The Most Typical Tools Used inPerformance Management (1)

••••

According to the CIPD (2004) are:Objectives and performance standardsPerformance and development reviewsMeasurementPay

Slide 9.24

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

The Most Typical Tools Used inPerformance Management (2)

••••••

Learning and developmentCoachingCompetences and competencies360 degree feedbackTeamsPerformance problem solving

Slide 9.25

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

The Balanced Scorecard (BSC)

••••

Financial resultsCustomer relationsInternal business processesLearning and development

Kaplan, R.S. and Norton, D.P. The balanced scorecard -measures that drive performance. Harvard Business Review,Jan.-Feb., 1992, 71-9.

Organisational performance is measured on fourdimensions.

Slide 9.26

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Definition of PerformanceAppraisal (1)

According to ACAS (2003): ‘Appraisals regularly record an assessment of anemployee’s performance, potential and developmentneeds.

to look back on what has been achieved during thereporting period andagree objectives for the next.’

Advisory Conciliation and Arbitration Service, Employee Appraisal, ACAS, 2003.

Slide 9.27

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Definition of PerformanceAppraisal (2)

••

Fletcher and Williams (1985) say that there are twoconflicting roles involved in performance appraisal.

They are: Judge Helper

Performance appraisal also involves giving feedback

Fletcher, C. and Williams, 1985.

Slide 9.28

Performance Managementis NOT

performance appraisal

Slide 9.29 PM is NOT performance appraisal

•–––

•

Performance ManagementStrategic business considerationsDriven by line managerOngoing feedback

So employee can improve performance

Slide 9.30 PM is NOT performance appraisal

•––

••

––

Performance AppraisalDriven by HRAssesses employee

Strengths &Weaknesses

Once a yearLacks ongoing feedback (once in areporting period)

Slide 9.31

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

The Main Uses of PerformanceAppraisal Schemes (1)

••••••

To improve current performanceTo provide feedbackTo increase motivationTo identify training needsTo provide for rewardsTo award salary increases

Slide 9.32

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

The Main Uses of PerformanceAppraisal Schemes (2)

•••••

•

To solve joint problemsTo let individuals know what is expected of themTo clarify job objectivesTo aid in career planning and developmentTo provide information for human resourceplanningTo assess competencies

Slide 9.33

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

The Main Uses of Performance AppraisalSchemes (4)

•••

Performance reviewPotential and developmental reviewReward review

Randell, G.A., Packard, P.M.A., Shaw, R.L. and Slater, A.J.P. (1984)

According to Randell et al . (1984), most employers havethree main uses of appraisal schemes that are likely toconflict:

Slide 9.34 Assessment of Performance•

••

1.

2.

Performance can be assessed in two different waysby using either:

Objectives orCompetencies

Output – this uses objectives to set targets foremployees to work towards

Input – examine the inputs that employees make tothe organisation and determine the level ofcompetence that the employee must achieve in theirjob M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Slide 9.35

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Problems with Performance Appraisal

•

•

•

•

•

Lack of clarity of objectives of the appraisalsystem (by the organisation)

Links with pay preventing open discussion

Keeping information secret from the employee

The appraiser attacking the appraisee’s character

Using appraisal as part of the disciplinary process

Slide 9.36

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Pause for Thought 9.1

• How would you feel if one of your tutors saidthat you lacked integrity or that yourintelligence was inadequate?

Slide 9.37

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Activity 9.1

List the people who may be involved in theappraisal process, with the advantages anddisadvantages for each.

People whomay beinvolved

Advantages Disadvantages

Slide 9.38

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Types of Performance Appraisal

•

•

•

•

Management by objectives (MBO)

Rating scales

Behaviourally anchored rating scales (BARS)

Behavioural observation scales (BOS)

Slide 9.39

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Activity 9.2

•

•

•

The main duties for a receptionist are listed inFigure 9.2 (pages 280–281).For each of these duties, write a list ofstatements to indicate the possible degrees ofsuccess of someone working in this job.It is intended that these statements will form thebasic information with which the individual’sperformance in that job is compared by theappraiser.

Slide 9.40

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Activity 9.3

• Make a list of the advantages anddisadvantages of this system ofbehaviourally anchored rating scales.

Slide 9.41

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Discussion of Activity 9.3 (1)

•

•

••

AdvantagesObjective rating of each of duties in the jobdescriptionAgreement over suitable descriptions for eachcategory of behaviourEasy to useUseful if lots of people have the same jobdescriptions so that the amount of time involvedin designing the system will be repaid

Slide 9.42

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

Discussion of Activity 9.3 (2)

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DisadvantagesTime consumingOnly takes account of existing job performance;does not allow for discussion of future potential

Slide 9.43

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006

The Appraisal Interview

•••

PreparationPrivacy and confidentialityGood questioning technique

There is a need for the following if an appraisalinterview is to be successful:

Slide 9.44

THE END

M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006