koen dewettinck

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Prof. dr. Koen Dewettinck 1 Performance Management Challenges in motivating and steering employees to improve performance Prof. dr. Koen Dewettinck HRM Centre Vlerick Leuven Gent Management School 5 th International Conference, Athens HRM in Europe: trends and challenges

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Page 1: Koen dewettinck

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

Page 2: Koen dewettinck

Prof. dr. Koen Dewettinck 2

Employeeenergy

Companyobjectives

Page 3: Koen dewettinck

Prof. dr. Koen Dewettinck 3

Performance management ?

Page 4: Koen dewettinck

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)

Page 5: Koen dewettinck

Prof. dr. Koen Dewettinck 5

Biggest PM challenges …

• Autonomy – Control dilemma

• Objective setting

• Link with pay

• Line management involvement

Page 6: Koen dewettinck

Prof. dr. Koen Dewettinck 6

Biggest PM challenges …

• Autonomy – Control dilemma

• Objective setting

• Link with pay

• Line management involvement

Page 7: Koen dewettinck

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

Page 8: Koen dewettinck

Prof. dr. Koen Dewettinck 8

Focus during conversations ?P

erfo

rman

ce Im

pro

vem

ent

What ? Balance How ?

%

%

% %

%

Page 9: Koen dewettinck

Prof. dr. Koen Dewettinck 9

Biggest PM challenges …

• Autonomy – Control dilemma

• Objective setting

• Link with pay

• Line management involvement

Page 10: Koen dewettinck

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 ?

Page 11: Koen dewettinck

Prof. dr. Koen Dewettinck 11

Not everything that can be counted

counts, and not everything that

counts can be counted…

A. Einstein

Page 12: Koen dewettinck

Prof. dr. Koen Dewettinck 12

Biggest PM challenges …

• Autonomy – Control dilemma

• Objective setting

• Link with pay

• Line management involvement

Page 13: Koen dewettinck

Prof. dr. Koen Dewettinck 13

Link with pay

• Pro: importance and credibility of PM

• Contra:

– PM conversation ≈ negotiation

– Real motivation ?

Page 14: Koen dewettinck

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

Page 15: Koen dewettinck

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 ?

Page 16: Koen dewettinck

Prof. dr. Koen Dewettinck 16

Biggest PM challenges …

• Autonomy – Control dilemma

• Objective setting

• Link with pay

• Line management involvement

Page 17: Koen dewettinck

Prof. dr. Koen Dewettinck 17

Average:

….. per year

Source: Re©ipe’s Bos study 2007; n = 5778

PM

eff

ecti

ven

ess

# formal conversations

Page 18: Koen dewettinck

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)

Page 19: Koen dewettinck

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

Page 20: Koen dewettinck

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

Page 21: Koen dewettinck

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