Unit 1 - Unisa Study Notesgimmenotes.co.za/wp-content/uploads/2016/12/HRM3706-unit...Learning...
Transcript of Unit 1 - Unisa Study Notesgimmenotes.co.za/wp-content/uploads/2016/12/HRM3706-unit...Learning...
Unit1
LearningOutcomes• Explaintheconceptofperformancemanagement• Dis6nguishbetweenperformancemanagementandperformanceappraisal
• Illustratebymeansofadiagramtheperformancemanagementprocess
• Outlinetheaimandroleofperformancemanagementintheorganisa6on
• Explainthecontribu6onsaperformancemanagementsystemcanmakeinthe
organisa6on
Learningoutcome1Explaintheconceptofperformancemanagement
PerformanceManagementcanbedefinedas:“A con2nuous process of iden2fying, measuring & developing the performance ofindividuals&teams,&aligningperformancewiththestrategicgoalsoftheorganisa2on”Thisdefini6onisthuscomposedof2maincomponents:• Con2nuousProcess:ItinvolvesaneverendingprocessofseGnggoalsandobjec6ves,observingperformanceandreceivingongoingcoachingandfeedback. Oncetheendoftheprocessisreacheditstartsalloveragain.• AlignmentwithStrategicgoals:Requiresmanagers toensure thatemployees’ac6vi6esandoutputarecongruentwiththe organisa6on’s goals and consequently help the organisa6on gain compe66veadvantage.Createsadirectlinkbetweenemployeeperformanceandorganisa6onalgoalsand makes the employee’s contribu6on to the organisa6on explicit. Performancemanagement systems that do not make explicit the employee’s contribu6on to theorganisa6onalgoalsarenottrueperformancemanagementsystems.
PerformanceManagementischaracterized
withthefollowingquali6es:
Performancemanagementisanongoingprocess
Organisa6onalgoalsshouldbelinkedwithindividuals’goals
Performanceshouldbemonitoredandreviewed,and
feedbackprovided
Employeedevelopmentiscrucialtoensure
improvementinemployeeperformance
Learningoutcome1Explaintheconceptofperformancemanagement
ThePerformanceManagementProcessincludesthefollowingsteps
Prerequisites
PerformancePlanning
PerformanceExecu6on
PerformanceAssessment
PerformanceReview
PerformanceRenewalandRe‐contrac6ng
Learningoutcome1Explaintheconceptofperformancemanagement
Performancemanagementisaforward‐lookingprocess,takingfrequentmeasuresasworkoccursandrespondingtosmallstepsforward,whileperformanceappraisalisabackward‐lookingprocessofperformance,measuringwhathappenedinthepast.
• Performanceappraisalreferstoasystemthatinvolvesemployeeevalua6ononceayearwithoutanyefforttoprovidefeedbackandcoachingsothatperformancecanbeimproved.
• Itisasystema6cdescrip6onofanemployee’sstrengthsandweaknesses.• Performancemanagementismorethanjustevalua6ngemployeeperformance.• Performancemanagementisanongoingprocessratherthanaone‐offeventtaking
place,forinstance,annuallyorbiannually.Itisacomprehensive,con6nuousandflexibleapproachtothemanagementoforganisa6ons,teamsandindividualswhichinvolvethemaximumamountofdialoguebetweenthoseconcerned.
ComparisonsbetweenPerformanceManagementandPerformanceAppraisalsystem:
Learningoutcome2
Dis6nguishbetweenperformancemanagementandperformanceappraisal
Comparison
sbetweenPe
rformanceM
anagem
enta
ndPerform
anceApp
raisa
lsystem:
Learningoutcome2
Dis6nguishbetweenpe
rformancem
anagem
enta
ndperform
anceapp
raisa
l
Learningoutcome3
Illustratebymeansofadiagramtheperformancemanagementprocess
5 - Performance Review
6 - Performance Renewal
& recontracting
Meeting to review assessment (appraisal), employee
received feedback on performance
Final stage and identical to Performance Planning
(Stage 1)
Employee strives to produce the results and display
the behaiviour agreed upon and to work on the
developmental needs
Both employee and manager evaluate the extent oto
which the desired behaiviour, development plan &
results have been displayed and achieved
3 - Performance
Execution
4 - Performance
Assessment
1 - Prerequisites
2 - Performance Planning
Knowledge of org's mission & strategic goals
Knowledge of the job in question
Meeting between supervisor and employee at the
beginning of PM cycle to discuss & agree process and
what needs to be done & how + results & behaviours
and developmental plan
Learningoutcome4
Outlinetheaimandroleofperformancemanagementintheorganisa6on
PerformanceManagementismostfrequentlyusedfor:
SalaryAdministra6on
PerformanceFeedback
Iden6fica6onofEmployeesStrengthsandWeaknesses
Learningoutcome4
Outlinetheaimandroleofperformancemanagementintheorganisa6on
PerformanceManagementcanservethefollowing6purposes:
StrategicPurpose
Administra2vePurpose
Informa2onalPurpose
DevelopmentalPurpose
Organisa2onalMaintenance
Purpose
Documenta2onalpurpose
Learningoutcome4
Outlinetheaimandroleofperformancemanagementintheorganisa6on
PerformanceManagementcanservethefollowing6purposes:
StrategicPurpose:• Thefirstpurposeoftheperformancemanagementsystemistohelptopmanagementachievestrategicbusinessobjec6ves.Bylinkingtheorganisa6onalgoalswithindividualgoals,theperformancemanagementsystemreinforcesbehaviourconsistentwiththea\ainmentoforganisa6onalgoals.Moreover,evenifforsomereasonindividualgoalsarenotachieved,linkingindividualgoalswithorganisa6onalgoalsservesasawaytocommunicatewhatthemostcrucialbusinessstrategicini6a6vesare.
Administra2vePurpose:• Asecondfunc6onoftheperformancemanagementsystemistofurnishvalidandusefulinforma6onformakingadministra6vedecisionsaboutemployees.Theseadministra6vedecisionsincludesalaryadjustments,promo6ons,employeereten6onortermina6onofservice,recogni6onofsuperiorindividualperformance,iden6fica6onofpoorperformers,layoffsandmeritincreases.Therefore,theimplementa6onofrewardsystemsbasedoninforma6onprovidedbytheperformancemanagementsystemfallswithintheadministra6vepurpose.
Informa2onalPurpose:• Performancemanagementservesasanimportantcommunica6ondevice.First,itinformsemployeesabouthowtheyaredoingandprovidesthemwithinforma6ononspecificareaswheretheymayneedimprovement.Secondly,relatedtothestrategicpurpose,itprovidesinforma6onontheorganisa6on’sandsupervisor’sexpecta6onsandwhataspectsofworkthesupervisorbelievesaremostimportant.
DevelopmentalPurpose:• Managerscanuseinforma6ongatheredduringtheperformancemanagementsystem,feedbackspecifically,tocoachemployeesandimproveperformanceonanongoingbasis.Thisfeedbackallowsfortheiden6fica6onofstrengthsandweaknessesaswellasthecausesforperformancedeficiencies(whichcouldbeduetoindividual,group,orcontextualfactors)
Organisa2onalMaintenancePurpose:• ThePMSprovidesinfotobeusedinworkforceplanning(setofsystemsthatalloworganisa6onstoan6cipate&respondtoneedsemergingwithinandoutsidetheorganisa6on,todeterminepriori6esandtoallocateHRmosteffec6vely).Importantcomponentofanyworkforceplanningeffortistalentinventory,infooncurrentresources(egskills,abili6es,promo6onalpoten6alandassignmenthistoryofcurrentemployees).PMSPrimarymeansthroughwhichaccuratetalentinventoriescanbeassembled,Assessingfuturetrainingneeds,evalua6ngperformanceachievementsatorganisa6onallevel&evalua6ngeffec6venessofHRinterven6ons(egwhetheremployeesperformathigherlevelsaaerpar6cipa6nginatrainingprogramme).Bymanagingperformancetheorganisa6oncantrackdownthetalentithasandtheonesits6llhastosearchfor.Reten6oninthemean6me.
Documenta2onalpurpose:• Finally,performancemanagementsystemsalloworganisa6onstocollectusefulinforma6onthatcanbeusedforseveraldocumenta6onpurposes.Firstly,performancedatacanbeusedtovalidatenewlyproposedselec6oninstruments.Forexample,anewlydevelopedtestofcomputerliteracycanbeadministeredtoalladministra6vepersonnel.Scoresonthetestcanbepairedwithscorescollectedthroughtheperformancemanagementsystem.Ifscoresonthetestandontheperformancemeasurearecorrelated,thetestcanbeusedwithfutureapplicantsfortheadministra6veposi6ons.Secondly,theperformancemanagementsystemallowsforthedocumenta6onofimportantadministra6vedecisions.Thisinforma6oncanbeespeciallyusefulincourtcases.Thisdocumentwillalsoassistorganisa6onsinapplyingconsistencytoitsdecisionmaking.
Learningoutcome5
Explainthecontribu6onsaperformancemanagementsystemcanmakeintheorganisa6on
Theadvantagesassociatedwiththeimplementa2onofaPerformanceManagementsystemareasfollows:
Mo2va2ontoperformisincreased: Self‐esteemisraised Managersgaininsight
intosubordinates
Self‐insightanddevelopmentare
enhanced
Administra2veac2onsaremorefairand
appropriateOrganisa2onalgoals
aremadeclearEmployeesbecomemorecompetent
AnThereisbeMerprotec2onfromcourt
cases
BeMerand2melierdifferen2a2on
betweengoodandpoorPerformers
Manager’sviewofperformanceis
communicatedmoreclearly
Organisa2onalchangeisfacilitated
Mo2va2on,commitmentand
inten2ontostayintheorganisa2onare
enhanced
Learningoutcome5
Explainthecontribu6onsaperformancemanagementsystemcanmakeintheorganisa6on
Theadvantagesassociatedwiththeimplementa2onofaPerformanceManagementsystemareasfollows:
• Receivingfeedbackaboutyourperformanceincreasesmo6va6onforfutureperformance.Knowledgeabouthowyouaredoingandrecogni6onaboutyourpastsuccessesprovidesthefuelforfutureaccomplishments.
Mo6va6ontoperformisincreased:
• Receivingfeedbackaboutyourperformancefulfilsabasicneedtoberecognisedandvaluedatwork.Thisislikelytoraiseyourself‐esteem.Self‐esteemisraised:
• Gainingnewinsightsintoperson’sperformance&personalitywillhelpmanagerbuildbe\errela6onship.Supervisorsgainbe\erunderstandingofeachindividual’scontribu6on.Usefulfordirectsupervisors&supervisorsonceremoved.Thejobofthepersonbeingappraisedmaybeclarified/definedmoreclearly:Employeesgainbe\erunderstandingofbehaviour&resultsrequiredintheirspecificposi6ons.
Managersgaininsightintosubordinates:
• Thepar6cipantsinthesystemarelikelytodevelopabe\erunderstandingofthemselvesandofthekindofdevelopmentac6vi6esthatareofvaluetothemastheyprogressthroughtheorganisa6on.Self‐insightanddevelopment
areenhanced:• Performancemanagementsystemsprovidevalidinforma6onaboutperformancethatcanbeusedforadministra6veac6onssuchasmeritincreases,promo6ons,transfersandtermina6ons.Ingeneral,aperformancemanagementsystemhelpsensurethatrewardsaredistributedonafairandcrediblebasis.
Administra6veac6onsaremorefairandappropriate:
• Thegoalsoftheunitandtheorganisa6onaremadeclear,andtheemployeesunderstandthelinkbetweenwhattheydoandtheorganisa6onalsuccess.Organisa6onalgoalsaremade
clear:
Learningoutcome5
Explainthecontribu6onsaperformancemanagementsystemcanmakeintheorganisa6on
Theadvantagesassociatedwiththeimplementa2onofaPerformanceManagementsystemareasfollows:
• Anobviouscontribu6onisthatemployeeperformanceisimproved.Inaddi6on,thereisasolidfounda6onforhelpingemployeesbecomemoresuccessfulbyestablishingdevelopmentalplans.Employeesbecomemorecompetent:
• 4Datacollectedthroughtheperformancemanagementsystemcanhelpdocumentcompliancewithregula6ons(egequaltreatmentofallemployeesregardlessofgender,race,ethnicgroup).Thereisbe\erprotec6onfromcourt
cases:
• Theperformancemanagementsystemallowsforaquickeriden6fica6onofgoodandpoorperformers.Italsoforcesmanagerstofaceuptoperformanceproblemsingood6me(i.e.beforetheproblembecomessoentrenchedthatitcannotberemediedeasily).
Be\erand6melierdifferen6a6onbetweengoodandpoorPerformers:
• Theperformancemanagementsystemallowsmanagerstocommunicatetotheirsubordinatestheirjudgmentsregardingperformance.Manager’sviewofperformanceis
communicatedmoreclearly:
• Incaseswhereanorganisa6onwantstochangetheorganisa6onalculture,thisini6a6vecanbeaddedtotheemployees’listofresponsibili6esandbesubjectedtoreview,togetherwithotherperformanceareas.Organisa6onalchangeisfacilitated:
• Whenemployeesaresa6sfiedwiththeirorganisa6on’sperformancemanagementsystem,theyaremorelikelytobemo6vatedtoperformwell,tobecommi\edtotheirorganisa6onandnottrytoleavetheorganisa6on.
Mo6va6on,commitmentandinten6ontostayintheorganisa6onareenhanced:
Learningoutcome5
Explainthecontribu6onsaperformancemanagementsystemcanmakeintheorganisa6on
Condi6onsforthesuccessfulimplementa6onPM:
Conveyreasonsforsuchasystemtoall
par6cipants
Ensuretopmanagement’s
commitmenttothesystem
Allpar6cipantsshouldtakepartinthedevelopmentandimplementa6on
Organisa6onalcultureshouldhaveafocuson
deliveryoutputs
AllmanagersshouldbeproperlytrainedinapplyingthePM
system
PMshouldnotbeimplementedin
isola6on,otherHRsystemsshouldallowforthePMsystem