CHAPTER 11

Management of performance

Session objectives Discuss the relationship between performance management and other HRM processes Describe the various objectives of performance management programs Identify the basic considerations in selecting standards for performance review Discuss the primary performance review methods

Describe the types of errors that arise in the use of rating methods Identify the different approaches to performance review interviewing

Session objectives (cont.)

Benefits:– Organisational

– Personal

Performance appraisal programs

Developing a performance review program

HR oversees and coordinates

Managers establish objectives

Employee ownership

Performance appraisal objectives

Assessment of past performance Assessment of promotion potential Training and development Feedback Workplace planning $ Grievance communication Identification of obstacles/problems

Establish standards

Standards for performance evaluation should be clearly defined and communicated

Based on job-related requirements – job analysis, personal development etc.

Competency based

Management by objectivesManagement by objectives

Department-specific goals

Joint agreement

Interim review

Subordinategoals

Supervisor goals

New input

Inappropriate goals eliminated

Review organisational performance

Final review

Common goals

Trait methodsTrait methods

Graphic rating scale

Mixed standard scale

Essay

Forced choice

Common trait methods of appraisal

Common trait methods of appraisal

Behavioural methodsBehavioural methods

Critical incidents Behavioural checklist

Behaviourally anchored rating

scale (BARS)

Behaviour observation

scales

Common behavioural

appraisal methods

Common behavioural

appraisal methods

Training appraisersTraining appraisers

Leniency or strictness error

Similar-to-me error

Contrast error

Error of central tendency Recency error

Common appraisal errors to

address in training

Common appraisal errors to

address in training

Appraisal interviews

Emphasise strengths

Avoid personal traits – emphasise more acceptable ways of performing

Opportunities for growth

Three types of appraisal interviews

Tell and sell

Tell and listen

Problem-solving

Why they fail Lack of management support Lack of job-related standards Rater bias Too many appraisal forms Conflicting purposes – combining salary review with motivation for work improvement Managers not comfortable with face-to-face confrontation

Improving performance Sources of ineffective performance:

– Organisational policies and practices

– Personal problems

– Job concerns

– External factors

Counselling occurs when one person endeavours to help another to

understand and resolve a problem

Caution should be exercised when counselling employees

Employee counselling

Employee discipline

A genuine attempt to ensure that expected employee behaviour and

performance is maintained to required organisational standards

Recognises and corrects unacceptable work practices Consistent infringements may result in the dismissal of the employee