logo image

Performance

Reward systems…
1. Motivates employees to perform well
2. Rewards employees who do perform well
3. Coaches employees who do not perform well
4. Encourages employees to contribute to strategic goals of the organization
Performance management system is the continuous process…
1. Identifying performance of individuals and teams
2. Measuring performance of individuals and teams
3. Developing performance of individuals and teams
4. Aligning performance with the strategic goals of the organization
Performance Management
Strategic business considerations
Ongoing feedback
So employee can improve performance
Driven by line manager
Performance Appraisal
Assesses employee strengths and weaknesses
Once a year
Lacks ongoing feedback
Driven by HR
A reward system includes tangible (cash, benefits, bonuses) and intangible (recognition, development) rewards that…
1. Are appropriate (equitable) for each person’s job responsibilities, experience, and rank
2. Are market competitive
3. Recognize outstanding performers
4. Encourage employees to engage in desirable behaviors and produce specific results that are aligned with organizational goals
Purposes of Performance Management Systems
1. Strategic – align individual and organizational goals
2. Administrative – salary, promotion, termination decisions
3. Informational and communication – clarify job duties, standards and resource adequacy
4. Developmental – ongoing coaching
5. Organizational maintenance – training needs and workforce planning
6. Documentation – validate selection and training
Benefits of PM for Employees
1. The definitions of job and success are clarified
2. Motivation to perform is increase
3. Self-esteem is increase
4. Self-insight and development are enhanced
Benefits of PM for Managers
1. Supervisors views of performance are communicated more clearly
2. Managers gain insight about subordinated
3. There is better and more timely differentiation between good and poor performers
4. Employees become more competent
Benefits of PM for Organization/HR function
1. Organizational goals are clear
2. Organizational change is facilitated
3. Administrative actions are more fair and appropriate
4. There is better protection from lawsuits
Dangers of poorly implemented PM systems
1. For employees and managers
a. Lowered self esteem
b. Employee burnout and job dissatisfaction
c. Damaged relationships
d. Decreased motivation to perform
e. Unjustified demands on managers’ resources
f. Varying and unfair standards and ratings
2. For organization
a. Increased turnover
b. Wasted time and money
c. Increased risk of litigation
Characteristics of an ideal performance management system
1. Strategic congruence
2. Thoroughness
a. All employees are evaluated
b. All major responsibilities are evaluated
c. Evaluations cover performance for entire review period
d. Feedback is given on both positive and negative performance
3. Practicality
4. Meaningful
5. Specificity
6. Differentiated effective and ineffective performance
7. Reliable and valid
a. Reliability: the measures of performance produce consistent results across supervisors and time
b. Validity: performance criteria are relevant to job, not deficient to job, not contaminated by factors outside of employees control
8. Acceptable and fair
a. Perception of distributive justice (work performed – evaluation received – reward)
b. Perception of procedural justice (fairness of procedures used to determine ratings and link ratings to rewards)
9. Inclusive
10. Open
11. Correct ability
12. Standardized (within job families)
13. Ethical
Performance Management Process
1. Prerequisites
a. Knowledge of the in question
i. Job analysis: is the procedure to determine the duties and tasks performed by a job holder (frequency and criticality of tasks should be considered)
ii. Job description: the outcome of a job analysis and includes list of job duties and tasks, KSAOs, working conditions, reporting relationships
1. Provides key criteria for measuring performance and should be linked to corporate/unit vision and mission
b. Knowledge of the organization’s missions and strategic goals
2. Performance planning
a. Supervisor and employee meet to discuss
i. Key accountabilities = broad areas of responsibilities
ii. Specific objectives = desired level of performance (measurable outcomes)
iii. Performance standards = minimum level of acceptable performance
iv. Desired competencies to do job
v. Set goals and develop plans to achieve goals
3. Performance execution
a. Employees responsibilities
i. Commitment to goal achievement
ii. Ongoing requests for feedback and coaching from supervisor
iii. Collecting and sharing performance data with manager
b. Managers responsibilities
i. Observe and document employee’s performance
ii. Give feedback on progression towards goals
iii. Provide resources to do job
iv. Reinforce good performance
4. Performance assessment
a. Managers assessment, self-assessment, other sources (peers, customers)
5. Performance review
a. Appraisal meeting or discussion
b. Review past behavior and develop future goals and plans
c. Managers discomfort with giving feedback is biggest impediment to effective performance reviews
6. Performance renewal and recontracting
a. Same as/different from performance planning
i. Uses insights and information from previous phases
ii. Cycle begins again
Performance Management Process
1. prerequisites
2. performance planning
3. performance execution
4. performance assessment
5. performance review
6. performance renewal and recontracting
Purpose of strategic planning
1. Helps define the organization’s identity
2. Helps organization prepare for the future
3. Enhance ability to adapt to environmental change
4. Provide focus and allow for better allocation of resources
5. Produces cooperation among employees
6. Generates new options and opportunities
7. Directs employee’s daily activities
1. Environmental analysis
a. Identifies external (threats and opportunities) and internal (strengths and weaknesses) trends in order to understand broad industry issues and the big picture
i. External factors: economy, political, legal, social and demographic trends, technological trends, competitors strategies and dominance, supplier relationships
ii. Internal factors: organizational structure, organizational culture, politics of organization, manufacturing or customer service process, human resources, size of organization
b. A gap analysis asses the internal trends vis a vis the external trends to determine where the company should be heading and potential problems
i. Opportunity + strength = leverage
ii. Opportunity + weakness = constraint
iii. Threat + strength = vulnerability
iv. Threat + weakness = problem
Strategic planning overview
1. Environmental analysis
a. Identifies external (threats and opportunities) and internal (strengths and weaknesses) trends in order to understand broad industry issues and the big picture
i. External factors: economy, political, legal, social and demographic trends, technological trends, competitors strategies and dominance, supplier relationships
ii. Internal factors: organizational structure, organizational culture, politics of organization, manufacturing or customer service process, human resources, size of organization
b. A gap analysis asses the internal trends vis a vis the external trends to determine where the company should be heading and potential problems
i. Opportunity + strength = leverage
ii. Opportunity + weakness = constraint
iii. Threat + strength = vulnerability
iv. Threat + weakness = problem
2. Mission
a. Answers why the organization exists, scope of activities, customers served, products/services offered, organizations values and beliefs
3. Vision
a. Statement of future aspirations
b. Focuses attention on what is important
c. Provides context for evaluation opportunities and threats
d. Statement should be brief, focused, time bound, understandable, inspiring, and a stretch
4. Goals
a. Goals provide specific objectives regarding how the mission/vision will be achieved in the intermediate term (3-5 years)
5. Strategies
a. Strategies describe how each goal will be achieved (action)
How the HR function contributes to strategic planning
1. Communicates knowledge of strategic plan to employees
2. Advises on the KSAs of the employees needed for strategy implementation
3. Proposes and develops appropriate performance management and reward systems
Alignment of Strategic Plan with Performance – involve all levels of management and all employees
1. Organizations strategic plan (missions, vision, goals, strategies)
2. Unit’s strategic plan (missions, vision, goals, strategies)
3. Job description (Tasks, KSAs)
4. Individual and Team Performance (results, behaviors, development plan
performance
behaviors, evaluative, multidimensional, should facilitate, not hinder organizational goals, not always observable and measurable, thus results or outcomes are often times used to infer behavior and used as a proxy to measure behaviors
Performance dimensions
1. Task performance
a. Transform raw materials into goods and services
b. Help with the transformation process by replenishing, distributing, and or supporting transformation
c. Defined by the job description
d. Vary across jobs
2. Contextual performance
a. Contribute to organizations effectiveness
b. Provide a good environment in which task performance can occur
c. Fairly similar across jobs
d. Examples
i. Interpersonal citizenship – helping coworkers and supervisors, cooperating with others
ii. Organizational citizenship – following org rules, objectives, representing to outsiders
iii. Initiative – putting in extra effort
Individual determinants of performance
Performance = declarative knowledge x procedural knowledge x motivation
Declarative knowledge: information about facts, labels, principles, goals, understanding of task requirements
Procedural knowledge: knowing what to do and how to do it and having skills to do it including cognitive skills, physical skills, perceptual skills, motor skills, and interpersonal skills
Motivation: choices – expenditure of effort, level of effort, persistence of effort
Factors influencing determinants of performance
1. Individual characteristics
2. HR practices
3. Work environment
Approaches to measuring performance
1. Trait approach: emphasizes how employees do the job
a. Disadvantages
i. Improvements not under individuals controls(many traits stable over time)
ii. Trait may not lead to desired behaviors or results
iii. Rarely considered appropriate
2. Behavior approach: emphasizes how employees do the job
a. Appropriate if
i. Employees take a long time to achieve desired outcomes
ii. Link between behaviors and results is not obvious
iii. Outcomes occur in the distant future
iv. Poor results are due to causes beyond performers control
b. Not appropriate
i. Above conditions not present
3. Results approach: emphasizes what employees produce
a. Advantages
i. Less time
ii. Lower cost
iii. Data appear objective
b. Appropriate if
i. Workers skilled in necessary behaviors
ii. Behaviors and results obviously related
iii. Consistent improvement in results over time
iv. Many ways to do the job right
Measuring results through…
1. (IDENTIFY) Accountabilities: broad areas of a job for which employee is responsible for producing results
a. Collect information about job (job description)
b. Determine importance of task or cluster of tasks (% of employees time spent performing task, impact on units mission if performed inadequately, consequences of error)
2. (SET) Objectives: statements if important and measurable outcomes
a. Identify outcomes and when outcomes are achieved
b. Good objectives are: specific and clear, challenging, agreed upon, significant, prioritized, bound by time, achievable, fully communicated, flexible, limited in number
3. Performance standards: yardstick used to evaluate how well employees have achieved objective – (PROVIDE ONGOING FEEDBACK)
Measuring behaviors through…
1. Competencies: the capabilities of employees which contribute to organizational capabilities that provide competitive advantage
a. Measurable clusters of KSAs that are critical in determining how results will be achieved
b. Should distinguish among low, average, and exceptional performance
c. Common types (IDENTIFY COMPETENCIES)
i. Teamwork competences
ii. Personal development
iii. Customer service
iv. Technical or task specific
v. Organizational, bottom line goals
d. Where do they come from (IDENITFY BEHAVIORAL INDICATORS)
i. Top managements desired organizational culture, vision, strategies
ii. Job analysis of specific jobs
iii. Expert judgments on which competencies are important to specific jobs – qualitative approach
e. Measurement system (CHOOSE MEASUREMENT SYSTEM)
i. Absolute system: compares employees with pre-specified performance standard
1. Essays, behavior checklists, critical incidents, graphic rating scales or BARS
a. Graphing rating scaled: interval scale (1-5) shared understanding of rating by supervisor and employee, consistent interpretation
b. BAR – Behaviorally Anchored Rating Scales
i. Use critical incidents as anchors
ii. Involves multiple groups of employees in development
iii. Identify important job elements
iv. Describe critical incidents at various levels of performance
v. Assign scores to different levels
ii. Comparative system: compares employees with each other
1. Simple rank order
2. Alternation rank order
3. Paired comparisons
4. Forced distribution
a. Advantages
i. Easy to explain and understand
ii. Better control for biases and errors found i.e. Leniencym severity, central tendency
b. Disadvantages
i. Practicality: time and effort
ii. Usefulness for administrative purposes
iii. Usefulness for providing feedback to employee
iv. Trade of between practicality and usefulness
Problems with force distribution
1. 70% of employees are classified in the same performance category
2. Can create a lack of distributive justice (unfairly rated in middle category)
3. As individual performance is influenced by division performance, those in underperforming divisions will have harder time meeting standards to achieve top performance rating
4. People in “support function” tend to be less valued
5. May lead to unethical actions to fit curve
6. Difficult to implement with employees less than 100
7. Recruiting practices are designed to select best employees
8. Creates competition amongst employees
9. Difficult to sustain a required percentage in the bottom category if the company is not experiencing growth
2 prerequisites before evaluating employee
1. Knowledge of job (job description
2. Strategic goals/organization mission and goals

Need essay sample on "Performance"? We will write a custom essay sample specifically for you for only .90/page

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
×
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register
Signup & Access Essays

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
|
Complete Buyer Protection
|
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy