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Nankervis_9e_08_Managementofperformannce.ppt
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Week 8

CQU HRMT20024

Management of Performance

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Objectives

Explain the relationship between performance management and other human resource management (HRM) processes

Describe the general objectives of performance management systems

Discuss the primary performance measurement methods

Describe the types of errors that arise in performance measurement

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Objectives (cont.)

Identify the different approaches to performance review meetings

Evaluate the role of workplace counselling programs

Recognise the complexities of the disciplinary process and potential implications relating to this process

Evaluate the particular performance management issues pertaining to international HRM

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Introduction

  • Performance management is a continuous cycle.
  • Establishing an effective performance review program that is valid, reliable and accepted at all levels is one of the many challenges facing HR professionals.
  • Vital strategic link between HRM and the organisational bottom line.
  • Long history.
  • The design and administration of the performance management system (PMS) is also one of the key points of tension between HR managers and supervisors.

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Stategically-aligned performance management

  • Performance review is a three-step process:
  • effective design
  • implementation
  • measurement and feedback.
  • Gathering information is the first step.
  • Information needs to be evaluated in the context of organisational strategies and needs.
  • Outcomes need to be communicated.

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A strategic model of management of performance

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Performance reviews and the performance management cycle

  • Individual level:
  • essential feedback for focused and sustained performance
  • can include training as well as growth
  • managers to help improve, not simply evaluate past performance.

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Developing a performance Management System

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Performance review methods

  • Relative judgement methods (for example, individual behavioural rating scales).
  • Comparison methods, or results-oriented approaches (for example, goal-setting and the Balanced Scorecard).
  • Behavioural rating scales continue to be used despite their inherent subjectivity.

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Behaviourally-based methods

  • Two key dimensions:
  • the source of behavioural information
  • the type of behavioural rating system used.

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Peer review

  • Conducted by persons other than a supervisor.
  • Weaknesses:
  • peer ratings are simply a popularity contest
  • managers are reluctant to give up control of the review process
  • those receiving low ratings might retaliate against their peers
  • peers rely on stereotypes in ratings.

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Self-review

  • Employees being asked to evaluate themselves on a self-assessment basis.
  • Work well when the supervisor and the employee jointly establish future performance goals or employee development plans.
  • Inappropriate where the performance assessment is linked directly to a pay outcome.

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Upward review

  • Used in some instances to give team leaders and other managers feedback on how their people view them.
  • Less likely to be accepted in countries with national and organisational cultures in which there is a big power difference.

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360-degree feedback

  • Also called ‘multi-source feedback’.
  • Attempt to gather work performance data about an employee from as many sources as possible.
  • Attractive because involving more than one person leads to a feedback process that is likely to be more meaningful for both the supervisor and the employee.
  • The organisation’s culture must be supportive of this type of strategy.

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Graphic rating scales

  • Each trait or characteristic to be rated is represented by a scale on which a rater indicates the degree to which an employee possesses that trait or characteristic.

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Behaviourally anchored rating scale (BARS)

  • Descriptions of behaviour placed along a scale or continuum.
  • Identification of dimensions of performance in terms of specific behaviours.
  • Five to 10 vertical scales.
  • Critical incidents.

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Results-based methods - Goal setting

  • Specific
  • Measurable
  • Attainable
  • Relevant
  • Time-bound

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Balanced scorecard

  • Translates mission and strategy into performance measures as framework for a strategic measurement and management system.
  • Four balanced perspectives: financial, customers, internal business processes, and learning and innovation.

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Why performance review programs fail

  • Lack of top management support.
  • Lack of job-relatedness standards.
  • Rater bias.
  • Excessive paperwork.
  • Use of the program for conflicting purposes.

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Typical rating errors

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Requirements for system effectiveness

In establishing valid performance criteria, there are three considerations:

– validity

– freedom from contamination

– reliability.

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Reviewer accountability and training

  • Reviewed by immediate supervisor.
  • Review of these assessments by the supervisor’s superior.
  • Growing trend towards 360-degree and 180-degree feedback systems.

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Reviewer accountability and training (cont.)

  • Explanation of appraisal objectives
  • Mechanics of the rating system
  • Frequency of appraisal
  • Who conducts?
  • Standards of performance
  • Benefits
  • Avoiding weaknesses and problems (subjectivity)
  • Planning and checklists

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Providing feedback: performance review interviews

  • Emphasise strengths
  • Avoid suggestions about personal traits to change
  • Concentrate on opportunities for growth
  • Limit plans for growth to a few important items

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Improving performance

  • Reasons for ineffective performance
  • job-relevant knowledge and skills
  • personality traits, work values and work attitudes
  • work environment, the external environment and personal problems.
  • Managing ineffective performance:
  • identify likely main cause
  • negative feedback
  • action planning.

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Employee counselling

  • In counselling, a relationship is established where one person endeavours to help another to understand and to resolve a problem, whether it be work-related or personal.

– p. 363 of the textbook

  • Who should counsel?
  • Who is the ‘troubled’ employee?

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Employee assistance programs

  • Can extend beyond work performance
  • Principle of the total person
  • Confidential
  • Reactive and proactive
  • Professional counselling

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Simple model of EAP

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Who needs an EAP?

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Who needs an EAP? (cont.)

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Employee discipline

  • ‘a genuine attempt to ensure that expected employee behaviour and performance are maintained to required organisational standards’.

– p. 371 of the textbook

  • Employee rights
  • Disciplinary policies and procedures

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The disciplinary model

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Undertaking disciplinary action

  • Four basic steps of action:

documentation of employee misconduct

the investigative interview

progressive discipline

correction or dismissal.

  • Appealing disciplinary actions.
  • Legal aspects of disciplinary processes.

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Summary

  • Need to determine individual contribution.
  • Clearly defined performance standards that are relevant and reliable.
  • Need for training
  • EAPs
  • When a performance gap is not addressed by coaching or counselling, disciplinary action may be necessary.

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