HRM Performance Mngt[1].

8/9/2019 HRM Performance Mngt[1].

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PERFORMANCE

MANAGEMENT

A Process that consolidatesGOAL SETTING

PERFORMANCE APPRAISALand DEVELOPMENTinto a Single, Common System.


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Comparing Performance Management

with Performance Appraisal

PERFORMANCE APPRAISAL:It means EVALUATING an employees Currentor Past Performance

relative to

his or herPerformance Standards. PERFORMANCE MANAGEMENT:

A process which consolidates1. Goal Setting2. Performance Appraisal

3. Developmentin to a single common system, the AIM

ofwhich is to ensure that the employeesPerformance is SUPPORTING the

companys STRATEGIC AIMS.


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PERFORMANCE

MANAGEMENT Performance Management includes thepractices through which the manager(a) DEFINES the Employees

GOALS and WORK(b) DEVELOPS the EmployeeCAPABILITIES

(C) EVALUATE and REWARDS theEmployees

EFFORTall within the framework of

How the employees performance shouldbe Contributing to Achieving the

Companys GOALS.


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PERFORMANCE

MANAGEMENT

DEFINING THE EMPLOYEES

GOALS AND WORK EFFORTS

Guidelines for Effective Goal

Setting:

Assign Specific Goals

Assign Measurable Goals

Assign Challenging but Doable

Goals


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PERFORMANCE MANAGEMENT:

Appraising Performance

REASONS TO APPRAISESUBORDINATES PERFORMANCE:

1. It does little good to Translate the

Employers Strategic Goals intoEmployees Goals, If you Dontperiodically Review Your employeesPerformance

2. Develop a plan forCorrecting any

Deficiencies

3. Provide the Opportunity to Employee toReview Career Plan in the light of his/herExhibited Strengths and Weaknesses

4. It almost always Affect the employersSalary and Promotional Decisions.


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PERFORMANCE

MANAGEMENT It is an approach to creating a

-Shared Vision of the

Purpose and Aims of theOrganization,

-Helping each employee Understand andRecognize their Part in Contributing tothem(Purpose and Aims of the Organization),

and in so doing,

-Manage and Enhance the Performance ofboth Individuals and the Organization.


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PERFORMANCE

MANAGEMENT: SCOPE PM Concerns everyone in the

business- not just the

managers.Responsibility is shared bt.

Managers and the Team

members.Managers should regard the

people who report to them as

CUSTOMERS for the managerial

contribution and services the


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General Considerations Affecting

the Management and

Improvement of Performance

Another important Feature of anEFFECTIVE Organization is the

Pursuit of High Performance byDEVELOPING COMPETENCIES.

Competency is the Key thatUnlock the door to individuals in

Realizing their MaximumPotential andProviding Maximum GrowthOpportunities for Personnel.


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PERFORMANCE

Record of Outcomes Achieved

Record of Persons

Accomplishments

The Outcome of work because

they provide the strongest

Linkage to the Strategic Goalsof the Organization

Customer Satisfaction

Economic Contributions


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PERFORMANCE

Performance is Behavior and

should be Distinguished from

the OUTCOMES because theycan be Contaminated by System

Factors.

Comprehensive View ofPerformance;

Performance means both

Behavior and Results.


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PERFORMANCE

MIXED MODEL of PM

It is concluded that when managing

the Performance of Teams andIndividuals,

both INPUTS (BEHAVIOR)

and OUTPUTS( RESULTS)

should be Considered.

It is about How Things are Done and

What is Done?


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FACTORS AFFECTING

PERFORMANCE PERSONAL FACTORS

LEADERSHIP FACTORS

TEAM FACTORS

SYSTEMS FACTORS

CONTEXTUAL( SITUATIONAL)FACTORS


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PERFORMANCE

MANAGEMENT A Process of Aligning or

Integrating individual

Objectives to AchieveOrganizational Effectiveness

Development is the Prime

Purpose of PM It needs Encouraging,

Developing, Supporting and

Sustaining.


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PERFORMANCE

MANAGEMENTFoundation upon which PM is built:

People Know and Understand What isExpected of them.

Have taken part in Forming thoseExpectations.

The Capacity to meet Expectationsdepends on;

1. level of Capabilities of People2. Level of Support they are given byManagement

3. Process, Systems, Resources madeAvailable to them by the Organization


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PERFORMANCE

MANAGEMENT Considering the above the basic

Aims of PM is:

-To Share Understanding aboutWhat is to be Achieved

-To Develop the Capacity of

people and the Organization toAchieve it

-To Provide Support andGuidance


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Performance

Management SEQUENCE1. Corporate Mission and

Strategic

Goals

2. Business and Departmental

Plans and Goals

3. Performance and DevelopmentAgreement

4. Performance and Development

Plan


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Performance

Management SEQUENCE5. Action- Work and Development

6. Continuous Monitoring and

Feedback7. Formal Review, Feedback, and

Joint

Assessment8. Rating

9. Financial Reward


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Performance

Management SEQUENCE 1.Corporate Mission and Strategic

Goals:

Starting point of PM Process.All the Activities in the sequencemust be aligned to them andcontribute to their Achievement.

2. Business and Departmental Plansand

Goals:


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Performance

Management SEQUENCE3. Performance and Development

Agreement: Agreement on Objectives and

Accountabilities reached by individuals withtheir Managers.

Performance Agreement defines:the Work to be Done,the Results to be Attained

the Performance Standards to be Achievedthe Competence Levels Required

Formal Review Meeting.

Pre-Review Meeting Questionnaire(Agenda for the Review).


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Performance

Management SEQUENCEThe Agreement should be based onan OPEN, TWO WAY, andUNAMBIGIOUS discussion.

This covers following Areas: What the person is DOING NOW.

What the person might have to Do inFUTURE due to Changing

Environment How the WORK should be done.

(Competence or ProcessRequirements)


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Performance

Management SEQUENCEThe Agreement should be based onan OPEN, TWO WAY, andUNAMBIGIOUS discussion.

This covers following Areas: What the person is DOING NOW.

What the person might have to Do inFUTURE due to Changing

Environment How the WORK should be done.

(Competence or ProcessRequirements)


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Performance

Management SEQUENCE What the Expected Performance

Requirements (Outputs) and

Standards are. What KSAs are Required to do thework ( Input Requirements)

Core Values the individual would be

Expected to Uphold such as;Quality, Teamwork, Care forEnvironmental Issues, Responsibilityto the Community, CustomerService.


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Performance

Management SEQUENCE-the Discussion will Define the Expectations

on how the persons Behaviorshould Supportthese Values.

-Values may be expressed in a List ofCompetencies

What Support the person Requires fromthe Manager,

Co-Workers,

Resources,Information.

Agreement should be concluded on Process Goals(How the work is done)as well as Output Goals (What has to be Achieved)


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Performance

Management SEQUENCE 4. PERFORMANCE and

DEVELOPMENT PLAN:

Joint Exploration of whatindividuals Need to Do and

Know to Improve their

Performance and Develop theirSkills and Competencies and

How their Managers can Provide

the Support and Guidance they

need.


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Performance

Management SEQUENCE Agreement is also made on the basis

upon which Performance will beMEASURED.

These Measures should be ClearlyIdentified and fully Agreed becausethese will be used to MONITORProgress and demonstrate

Achievements. On the part of Individual it includesPreparation and Agreement ofPersonal Development Plan.


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Performance

Management SEQUENCE 5. Action- Work and

Development:

It focuses on What has to beDone?

How it is Done?What is Achieved?

Developing People-Helping them to Learn,Providing them with the

support they need to do well


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Performance

Management SEQUENCE 6. Continuous Monitoring and

Feedback:

It is not a once in a given periodTask for Employees and Managers

but it is a Continuous process of

Direction-setting,

Monitoring andMeasuring Performance,

Providing Feedback and

Taking Action Accordingly.


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Performance

Management SEQUENCE 7. Formal Review, Feedback, and

Joint Assessment:

-Summarize and Draw Conclusionsfrom what has been happeningsincethe last review-to give opportunity to individuals tocomment on the Leadership, Supportand Guidance they get from theManagers-Managers are there to Coach, not toCriticize.


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Performance

Management SEQUENCE 7. OVERALL PERFORMANCE

RATING:

Levels of Rating;- ODD Numbers- 3, 5, or 7.- EVEN Numbers- 4, 6, or 8.- Negative Descriptions of Levels ina

Rating Scale should be Avoided.Instead it must serve as PositiveReinforcement at each level.Examples;


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Performance

Management SEQUENCELevels of Rating;

Examples;

Highly Effective

Effective

Developing

Improvable


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Performance

Management SEQUENCEACHIEVING CONSITENCY IN

RATING

FORCED DISTRIBUTION

RANKING

TRAINING

PEER REVIEW

MONITORING


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Performance

Management SEQUENCEPERFORMANCE-RELATED PAY

Organization are concentrating

more on the Development than

the Reward Aspect of

Performance Management.


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Performance

Management SEQUENCEDOCUMENTATION

Pre-meeting Documentation;Review of Job ContentsIndividuals AchievementsDevelopment Needs and PotentialPossible Objectives for the nextperiod

What Objectives individuals wouldlike to

set for themselves

Review Meeting Documentation;


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Performance Appraisal

ToolsGRAPHIC RATING SCALE METHOD

Simplest- Most Popular Lists Traits e.g., Reliability and

Range ofPerformance Values e.g.,Outstanding,..Unsatisfactory

forEach Trait

Supervisor Rates each subordinate on the

basis of these Traits and Perf. Values


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Tools: GRSWHAT TO MEASURE?

Jobs Actual Duties- Admin. Sec.(Fig. 9.4)--Five main sets of dutiese.g., Maintaining Records

---Here we Assess How Well shedid in exercising her job duties


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Tools: GRS Competency-based

Appraisal

-Competencies which theemployer Values for this Job.

-the extent to which theEmployee is meeting herStandards


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Tools: Tools that measure Several Things:

1. Competencies to be developedby the employee e.g.,

Identifies and Analyze Problems

Maintains Harmonious andEffective Work Relationship


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Tools: Tools that measure Several

Things:

2. Objectives:

Employee and Supervisor Fill

in the Objectives at the Startof the year


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Performance Appraisal Tools:

Alternation Ranking

Method Ranking employees from Best to

Worst on particular TRAIT,

Choosing Highest then Lowestuntil All are Ranked.

Here it easier to Distinguish

betweenthe Worst and Best Employees


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Performance Appraisal Tools:

Paired Comparison Method

For every TRAIT

(Quality or Quantity of Work)

Every Subordinate is PAIRED andCompared with every Other

Subordinate.

A Chart is made of all possible pairsof employees for each Trait (Fig. 9-7

page 321).


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Tools: Forced DistributionPercentages for DifferentPerformance Categories arePredetermined.

This method means two things(i) Not every one can get A(ii) Ones Performance is alwaysrated

Relative to ones Peers

General Electric:Top 20%, Middle 70%, Bottom 10%


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Tools: Forced Distribution Sun Microsystems

-the Bottom 10% of each group of 30

employees Get 90 days to Improve

With Forced Distribution grading

system one either is in Top 5 to 10%

and gets an A on he/she does nt.No Questions are asked.


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Tools: Forced Distribution To protect against Bias Claims,

employers should;

i. Appoint a Review Committeeto Review any employees

Low Ranking take several

ii. Train Raters to be Objectiveiii. Consider using Multiple

raters

HRM Performance Mngt[1].

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