Managing and Enhancing Performance: The Big Picture

14

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LEARNING OUTCOMES

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1 Describe the relationships among performance measured at different levels within an organization and discuss how training, development, and job redesign can help improve performance

2 Discuss the role of alternate work arrangements in motivating and enhancing performance

3 Describe the role of incentive pay and identify different programs for individual-based and team-based incentive plans

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LEARNING OUTCOMES (continued)

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4 Describe the best ways to deliver performance feedback and the issues involved with feedback and describe the basic operation of the ProMES system

5 Discuss how organizations evaluate performance-enhancement programs

6 Discuss how recent world events have affected the role of HR

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Enhancing Performance at Different Levels

• Performance exists at multiple levels• Basic performance is of an individual employee

• Firm-level performance: Indication of a firm’s chances of long term survival• Generates profits

• Determines company’s stock price

• Individual HR practices• Training and development

• Job redesign

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Training and Development

• Basic form of performance enhancement intervention

• Begins with a needs assessment• Provides information about gaps between

present and desired performance

• Gives an idea of what needs to change in order to improve performance

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Job Redesign

• Involves systematically moving employees from one job to other

Job rotation

• Developed to increase the total number of tasks workers perform based on the assumption that doing the same basic task repeatedly is the primary cause of worker dissatisfaction

Job enlargement

• Attempts to increase both the number of tasks a worker does and the control the worker has over the job

Job enrichment

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Job Redesign

• Alternative to the job specialization approach that takes into account the work system and employee preferences

Job characteristics approach

• Arrangement in which a group is given responsibility for designing the work system to be used in performing an interrelated set of jobs

Work team

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Figure

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14.1 The Job Characteristics Model of Job

Design

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Alternative Work Arrangements

• Alternate work schedules• Flexible work hour plans: Employees must work

40 hours per week and 5 days a week

- Control over the starting and ending times for work on each day

• Compressed workweeks: Arrangements in which the employee works the required number of hours

• Alternate work sites

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Incentives and Performance-Based Rewards

• Merit pay: Pay awarded to employees on the basis of the relative value of their contributions to the organization• Merit-pay plans: Compensation plans that

formally base at least some meaningful portion of compensation on merit

• Individual incentive pay plans: Reward individual performance on a real-time basis• Base salary

• Sales commission

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Team and Group Incentive Plans

• Gainsharing

• Scanlon plans

• Profit sharing

• Stock-option plan

• Stock-purchase plan

• Employee stock ownership plans (ESOPs)

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Performance Management and Feedback

• Performance-management techniques• Behavior modification

• Goal theory

• Performance feedback

• Productivity measurement and evaluation system(ProMES): Program developed to improve group or firm-level productivity

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Figure

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14.3 A Sample ProMES Curve

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Evaluating Performance-Enhancement

Programs

• Human resource indicators • Turnover rates

• Absenteeism

• Accident rates

• General labor costs

• Measures of profitability, productivity and controllable costs

• Financial and accounting indicators

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HR in the Headlines

• HR and the Arab spring

• Privacy and cybersecurity in the 21st century

• Toward a two-class benefits system

• HR in faith-based businesses

SUMMARY

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• In human resources, the focus should be on individual HR practices and alternate work arrangements

• In the end it is important to get the work done and achieve the desired goals

• Human resource indicators • Turnover rates• Absenteeism• Accident rates• General labor costs

KEY TERMS

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• Base salary (p. 310)• Compressed workweeks (p. 308)• Employee stock ownership plans (ESOPs[p. 313])• Firm-level performance (p. 303)• Flexible work plans (p. 306)• Gainsharing (p. 311)• Individual incentive plans (p. 310)• Job characteristics approach (p. 305)• Job enlargement (p. 304)• Job enrichment (p. 304)• Job rotation (p. 304)• Merit pay (p. 309)

KEY TERMS

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• Merit-pay plans (p. 310)• Productivity measurement and evaluation system

(ProMES [p. 316])• Profit sharing (p. 312)• Sales commission (p. 311)• Scanlon plan (p. 312)• Stock-option plan (p. 312)• Stock-purchase plan (p. 312)• Work team (p. 305)

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