koen dewettinck
DESCRIPTION
Performance Management SystemsTRANSCRIPT
Prof. dr. Koen Dewettinck 1
Performance Management
Challenges in motivating and steering
employees to improve performance
Prof. dr. Koen DewettinckHRM Centre
Vlerick Leuven Gent Management School
5th International Conference, AthensHRM in Europe: trends and challenges
Prof. dr. Koen Dewettinck 2
Employeeenergy
Companyobjectives
Prof. dr. Koen Dewettinck 3
Performance management ?
Prof. dr. Koen Dewettinck 4
Research Background
• Study 1: HR perspective
• PM-practices in Belgian organisations
• N = 319
• Study 2: Employee perspective
• Experience with PM-practices and quality of leadership
• N = 5778 (Belgium, 96 % white-collars)
Prof. dr. Koen Dewettinck 5
Biggest PM challenges …
• Autonomy – Control dilemma
• Objective setting
• Link with pay
• Line management involvement
Prof. dr. Koen Dewettinck 6
Biggest PM challenges …
• Autonomy – Control dilemma
• Objective setting
• Link with pay
• Line management involvement
Prof. dr. Koen Dewettinck 7
Dimension 3: AutonomyA
uto
nom
y -
C
on
trol
≠ Everyone does as one pleases
= Stimulate initiative taking
within clear boundaries
= Enable people to make an
informed choice
Prof. dr. Koen Dewettinck 8
Focus during conversations ?P
erfo
rman
ce Im
pro
vem
ent
What ? Balance How ?
%
%
% %
%
Prof. dr. Koen Dewettinck 9
Biggest PM challenges …
• Autonomy – Control dilemma
• Objective setting
• Link with pay
• Line management involvement
Prof. dr. Koen Dewettinck 10
Objective setting
• SMART objectives for non-SMART jobs …
• Strategic relevance or relevance for the individual ?
• A “healthy” amount of challenge ?
Many questions, but what we know is ….
– Non accepted targets do not generate motivation
– Participation in target setting fosters acceptance
– When top-down cascading: timing crucial
– Balance between what and how
– Measuring ?
Prof. dr. Koen Dewettinck 11
Not everything that can be counted
counts, and not everything that
counts can be counted…
A. Einstein
Prof. dr. Koen Dewettinck 12
Biggest PM challenges …
• Autonomy – Control dilemma
• Objective setting
• Link with pay
• Line management involvement
Prof. dr. Koen Dewettinck 13
Link with pay
• Pro: importance and credibility of PM
• Contra:
– PM conversation ≈ negotiation
– Real motivation ?
Prof. dr. Koen Dewettinck 14
Variable pay & PM effectiveness
No Yes
Variable payNo Yes
Variable pay
Mot
ivat
ing
impa
ct P
M-c
onve
rsat
ions
Per
form
ance
impr
ovem
ent
thro
ugh
PM
Prof. dr. Koen Dewettinck 15
Critical questions …
• High performance ?
• Individual or team critical for succes ?
• How solid is the PM-system currently ?
• Line management maturity ?
Prof. dr. Koen Dewettinck 16
Biggest PM challenges …
• Autonomy – Control dilemma
• Objective setting
• Link with pay
• Line management involvement
Prof. dr. Koen Dewettinck 17
Average:
….. per year
Source: Re©ipe’s Bos study 2007; n = 5778
PM
eff
ecti
ven
ess
# formal conversations
Prof. dr. Koen Dewettinck 18Source: Re©ipe’s Bos study 2007; n = 5778
0 10 20 30 40 50
Strongly not agree
Not agree
Neutral
Agree
Strongly agree
Through PM conversations, I have been able to improve my performance
Duration conversation (minutes)
Prof. dr. Koen Dewettinck 19
Source: Re©ipe’s Bos study 2007; n = 5778
Em
plo
yee
emp
ow
erem
nt
# informal conversations
Yearly Half-Yearly Monthly Weekly Daily
Prof. dr. Koen Dewettinck 20
PM training PM training coverage
Top Mgt 69.5% 82.8%
Line Mgt 73.3% 82.2%
Supervisor 73.6% 80.5%
Employee 74.0% 60.2%
PM related Training
Prof. dr. Koen Dewettinck 21
Conclusion
• Balance between hard and soft side of PM
• PM is much more than just a “system”
• Link with pay: powerful but sensitive
• Feedback and quality of conversations is key