hrm3 - performance management1 performance management
Post on 22-Dec-2015
241 Views
Preview:
TRANSCRIPT
HRM3 - Performance Management 1
Performance Management
HRM3 - Performance Management 2
Performance Management – Learning By the end of this unit you should be able to:1. Explain what is meant by performance management2. Describe the process of performance management3. Critically evaluate the appraisal process4. Explain what is meant by an appraisal interview and describe it’s
benefits and drawbacks to the organisation, the manager and the employee
5. Describe 3 performance appraisal techniques6. Evaluate the 360 degree feedback method of appraisal7. Describe three interview styles associated with appraisal8. Describe the key actions required to conduct an effective appraisal
interview9. Discuss the ethical dilemmas associated with performance appraisal10. Describe 5 key errors associated with the appraisal process
Summary of Key Headings
• Performance Management
• Performance Appraisal
• The Appraisal Interview
• 360 degree feedback
• Ethical Dilemmas in appraisal
HRM3 - Performance Management 3
HRM3 - Performance Management 4
Factor influencing performance According to Sparrow & Hiltrop (1994) the use of PMS is on
the increase because of the following changes in the workplace
• Delayering• Devolution of accountability & responsibility• Changing career & job expectations• Flexible working arrangements• Individuation• Competitive pressures
HRM3 - Performance Management 5
Performance AppraisalMeasuring a person’s job performance against
predetermined work standards
versusPerformance Management
A strategic management technique that links business objectives & strategies to individual
goals, actions, performance appraisal & rewards thru a defined process. Incorporates
appraisal, training & development, rewards, employee relations, individualism
(Sparrow & Hiltrop 1994)
HRM3 - Performance Management 6
Objectives of Performance Management Systems
• Motivating performance
• Helping individuals develop their skills
• Building a performance culture
• Determining who should be promoted
• Eliminating individuals who are poor performers
• Helping implement business strategies
Performance Management
• Performance management is a management process of linking individual, group and organisation performance with the main strategic mission and values
• It is an organisation-wide activity concerned with the continuous assessment and review of performance against pre-determined strategic objectives
HRM3 - Performance Management 9
Principles of Performance Management:
• Owned and driven by line managers
• Emphasis on shared goals and values
• Something that is developed specifically and individually for the particular company
• It should apply to all staff
HRM3 - Performance Management 10
HRM3 - Performance Management 11
Read CIPD Factsheet: Performance Management
1. What does the article mean when it says that performance management should be
• Strategic
• Integrated
• About improvement
• About development
2. What is the difference between an objective & a performance standard? Give an example of each from your own experience.
3. Explain what is meant by 360-degree feedback.
HRM3 - Performance Management 12
Characteristics of GOOD P. Mgt System
• Tailored to the organisation• Support the culture• Support the mission• Defines the critical success factors• Clarifies the principal accountabilities• Enables systematic review of performance• Effective PRP system• Integrated approachPhilpott & Sheppard (1993)
HRM3 - Performance Management 13
Characteristics of BAD P. Mgt System
• No clear objective• Departmental rivalry• Failure to meet objectives• Lack of clear accountabilities• Role ambiguity• Absence & turnover• Lack of training, development or career plans• Resistance• Loss of credibilityPhilpott & Sheppard (1993)
HRM3 - Performance Management 14
Criticisms of Performance Management systems
• Form filling exercise• Company goals only• Means to set pay levels• Does not identify future potential in employees• Does not improve organisational performance• A HR thing!!• Dependent on your boss• The 3 objectives conflicting objectives• Subjective & unfair ratings
HRM3 - Performance Management 15
How to overcome these criticisms
• Training
• Involvement in design
• ‘Open’ system
• Visibly owned by senior management
• Ease administration
• Follow up on appraisal actions
HRM3 - Performance Management 16
Review Questions
1. Explain what performance management is both in writing and diagrammatic format
2. What makes a good performance management system?
3. What are the criticisms normally levelled at Performance Management Systems?
4. How might you minimise these criticisms?
HRM3 - Performance Management 17
Performance Appraisal
Systematic approach to evaluating employee’s
performance, characteristics or potential with a view to
assisting with decisions in a wide range of areas such as pay, promotion, employee
development, and motivation.
(Gunnigle and Flood 1990)
HRM3 - Performance Management 18
Performance v’s Performance Appraisal
Management
• Imposed on managers
• Individual focus on individual performance
• A beginning and an end
• Just one part of the performance management process
• Owned and driven by line managers (Armstrong 1995)
• Organisation focus• Links individual , group
and organisational performance
• Tied to the organisations strategy
• Continuous and integrated process
Appraisal –
As an employee……….As a manager …………As the organisation…….
HRM3 - Performance Management 19
HRM3 - Performance Management 20
Why Appraise??Employer• Assess the performance of
individuals
• Set individual objectives
• Assess how well objectives are being attained
• Confirm what jobs/tasks are actually being done
• Determine who should be promoted/transferred
• Determine who needs training
• Assess who should be considered for advancement
Employee
• A career development exercise
• A way of assessing needs and if organisation can meet them
• To clarify job, duties etc.
• To identify own potential and how to fulfill it
(Hunt 1992)
HRM3 - Performance Management 21
Perceived Benefits of P.A. MANAGER• Learn about employee now &
future• Goal clarification• Measuring work performance• Motivate employee• Clarification
COMPANY• Succession planning• Facilitate HRP• Link business and individual
objectives• Improve communications
overall• Improve performance both
individual and organisational
Evenden & Anderson (1992)
HRM3 - Performance Management 22
Perceived benefits for employee
• Receive feedback
• Communicate views
• Career options
• Recognition
• Training & development needs
Evenden & Anderson (1992)
HRM3 - Performance Management 23
Performance Appraisal3 principal objectives
1. To motivate staff and improve performance thru objective & target setting
2. To assess employee performance and distributing pay
3. To identify training & development needs as well as career aspirations
Fletcher (1993)
HRM3 - Performance Management 24
Methods (techniques) of Appraisal1. *Rating
2. Ranking
3. Paired comparison
4. Critical incident
5. *Free form
6. *Performance or objective oriented systems
7. Assessment centre
8. Self-assessment
9. *360º feedback
HRM3 - Performance Management 25
Rating
• Appraiser of appraise
• Against predetermined scale
• Uses a series of relatively standard headings
• Often part of a results oriented schemes /objectives based scheme
• Armstrong (1995)convenient but ignore the complex set of variables that deter. Work performance. Very subjective
HRM3 - Performance Management 26
Rating continued
• Problems with consistency across managers
• Error of central tendency
• Forced distribution using the normal distribution curve
• Or
• Forced choice technique
• BARS – Behaviourally anchored rating scales
HRM3 - Performance Management 27
Free form
• Completely unstructured
• Allows for discretion
• Can create many inconsistencies
• Does not allow for effective comparisons
• Some managers like structure
HRM3 - Performance Management 28
Performance/Results/Objective Oriented• MBO• Measured against previously agreed KRA’s• Jointly set• Manager must understand the employee’s job• Manager must be committed to observation,
feedback, target setting etc.• Difficult in a job that is subject to a lot of variation• Dificult in a job where you are very dependent on
other jobs• Quantity versus quality issue
HRM3 - Performance Management 29
360 º Feedback/Multi Rater Assessment
• Relatively new
• To give a multi dimensional overview of an employee’s performance
• Structured questionnaires completed anonymously
• Can be done on computer
• May require more training
HRM3 - Performance Management 30
Article: Its time to appraise our methods of appraisal
Questions
What are some of the criticisms of appraisal interviews?
What does the article say about how to improve appraisal?
HRM3 - Performance Management 31
Difficulties with Appraisal9 Common appraisal errors -Grote (1996)1. Contrast effect2. First impression3. Halo/Horns4. Similar to me5. Central tendency6. Negative & Positive skew7. Attribution bias8. Recency Effect9. Stereotyping
HRM3 - Performance Management 32
Difficulties with AppraisalHunt (1992)
• Poorly designed
• Over-ambitious
• Inadequately resourced
• No training
• No guidelines
HRM3 - Performance Management 33
Difficulties with Appraisal
• Torrington & Hall (1995), Fletcher (1993) conflicting purposes of PA
• Line manager sees it as a HR thing (Grint,, 1993, Torrington & Hall 1995)
HRM3 - Performance Management 34
How to minimise these difficulties
4 Core Obligations of Management -Longenecker & Ludwig (1990)
1. Sound procedure
2. Training
3. Top level support
4. Audit
HRM3 - Performance Management 35
Types of Appraisal Interview
1. Tell and sell
2. Tell and listen
3. Problem solve
4. Contingency approach(Norman Maier 1958)
HRM3 - Performance Management 36
TASK
When would it be appropriate to use the different types of approach to the appraisal interview?
(Tips: think about the type of appraiser/appraisee, nature of the business/organisation, availability of resources/time, what the appraisal will be used for)
HRM3 - Performance Management 37
Interview Format:Introduction
General discussion, present level of success
The body• Self-criticism
• Self-help
Conclusion
– Confirm decisions, commitments, agreements, recommendations
HRM3 - Performance Management 38
Effective Appraisal Interviews• Start with purpose• Establish rapport• Main tasks and responsibility discussion• Focus on work targets and standards• Encourage self analysis• Career aspirations, training needs discussion• Manage expectations• Summary• Notes• Follow upEvenden & Anderson (1992)
HRM3 - Performance Management 39
Guidelines for the Appraisal Interview• Emphasize positive aspects• Emphasize improvement• Privacy/Confidentiality• Regular basis• Criticisms: specific & constructive• Stay calm• Identify specific actions which need to be taken• Emphasize assistance• End by stressing the positive aspects of performance
HRM3 - Performance Management 40
Read article: A lovely audience
1. Pick out key points from the article, about how to conduct the appraisal interview that have not been discussed on the previous slides.
Extra Reading – all in Moodle!
• Chapter 8 in core text book• CIPD Factsheets:
– Performance Management– Performance Appraisal– 360 degree feedback
• Class handouts/articles
Human Resource Management 41
HRM3 - Performance Management 42
Typical Exam Questions1. Discuss the characteristics of good and bad
performance management systems.2. Outline the steps to be taken to ensure a successful
appraisal interview3. “Performance management is the same as
performance appraisal.” Discuss.4. Describe any three methods of appraisal.5. Why is it important to manage & appraise
performance? Discuss this from the employer, employee & company perspective.
6. Evaluate the effectiveness of the appraisal interview in the context of performance appraisal.
HRM3 - Performance Management 43
Autumn Paper 04/05• Discuss the characteristics of good and bad
performance management systems. (20 marks)• Describe THREE key errors associated with
appraisal interviewing. (10 marks)
Summer Paper 04/05• Explain what a performance management system
is. (10 marks)• Discuss the criticisms of performance
management systems and what an organization can do to overcome them. (20 marks)
top related