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Slide 9.1
PERFORMANCE MANAGEMENTAND PERFORMANCE
APPRAISAL
CHAPTER 8
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Slide 9.2 Defining Performance
••
Performance is:BehaviourWhat employees do
Slide 9.3 Defining Performance
••
Performance is NOT:Results or OutcomesWhat employees produce
Slide 9.4Behaviors are Not always
––
ObservableMeasurable
Slide 9.5
Results/Consequences may beused
––
To infer behaviourAs proxy for behaviouralmeasure
Slide 9.6Determinants of Performance
Performance =
Declarative Knowledge
X
Procedural Knowledge
X
Motivation
Slide 9.7A. Declarative Knowledge
•––––
•
Information aboutFactsLabelsPrinciplesGoals
Understanding of task requirements
Slide 9.8
B. Procedural Knowledge
•––
KnowingWhat to doHow to do it
and
Slide 9.9
Procedural Knowledge (continued)
•––––
SkillsCognitivePhysicalPerceptualInterpersonal
Slide 9.10 C. Motivation
•–––
ChoicesExpenditure of effortLevel of effortPersistence of effort
Slide 9.11
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Definition of PerformanceManagement
Armstrong and Baron (1998) define performance management tomean:
‘ a process which contributes to the effectivemanagement of individuals and teams byestablishing shared understanding aboutwhat is to be achieved and an approach todeveloping the people who will ensure it isachieved’. Armstrong, M. and Baron A.(1998)
Slide 9.12 Definition of PM
1.
Continuous Process ofIdentifyingMeasuringDeveloping
The performance of individuals and
teams
Slide 9.13Definition of PM (continued)
2.and
Aligning performance
with
Strategic Goals of theorganization
Slide 9.14
• According to Armstrong and Baron(1998), PM should be a tool to ensurethat managers manage effectively. Themanagers should ensure that thepeople or teams they manage:
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Slide 9.15
Know and understand what is expected of them Have skills necessary to deliver on theseexpectations Are supported by the organisation to develop thecapacity to meet these expectations Are given feedback on performance Have the opportunity to discuss and contributeto individual and team aims and objectives
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Slide 9.16
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Typical Features of PerformanceManagement for the Individual (1)
•
•••••
Objective performance appraisal andassessment360 degree appraisalPerformance and development reviewsClear links with job descriptionsMeasurementIndividual development plans
Slide 9.17
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Typical Features of PerformanceManagement for the Individual (2)
•••••
Performance-related pay (PRP)Competencies assessedLearning and developmentCoachingPerformance problem solving
Slide 9.18
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Typical Features of PerformanceManagement for the Team (1)
••
••
Objective and ongoing assessmentAnnual/6-monthly reviews with performanceindicatorsTeam buildingQuality circles
Slide 9.19
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Typical Features of PerformanceManagement for the Team (2)
••••
Team incentivesLearning and developmentCoachingPerformance problem solving
Slide 9.20
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Typical Features of PerformanceManagement for the Team (3)
•••
Learning and developmentCoachingPerformance problem solving
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Slide 9.21
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Typical Features of PerformanceManagement for the Organisation (1)
••••
•
MeasurementTotal quality managementOrganisation-wide incentivesOngoing assessment of organisation’sobjectivesQuality of working life
Slide 9.22
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Typical Features of PerformanceManagement for the Organisation (2)
••••
The learning organisationISO 9000 or other quality initiatives such asThe balanced scorecardWays to get line managers’ commitment
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uld beanisation’.
Slide 9.23
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
The Most Typical Tools Used inPerformance Management (1)
••••
According to the CIPD (2004) are:Objectives and performance standardsPerformance and development reviewsMeasurementPay
Slide 9.24
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
The Most Typical Tools Used inPerformance Management (2)
••••••
Learning and developmentCoachingCompetences and competencies360 degree feedbackTeamsPerformance problem solving
Slide 9.25
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
The Balanced Scorecard (BSC)
••••
Financial resultsCustomer relationsInternal business processesLearning and development
Kaplan, R.S. and Norton, D.P. The balanced scorecard -measures that drive performance. Harvard Business Review,Jan.-Feb., 1992, 71-9.
Organisational performance is measured on fourdimensions.
Slide 9.26
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Definition of PerformanceAppraisal (1)
According to ACAS (2003): ‘Appraisals regularly record an assessment of anemployee’s performance, potential and developmentneeds.
to look back on what has been achieved during thereporting period andagree objectives for the next.’
Advisory Conciliation and Arbitration Service, Employee Appraisal, ACAS, 2003.
Slide 9.27
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Definition of PerformanceAppraisal (2)
••
Fletcher and Williams (1985) say that there are twoconflicting roles involved in performance appraisal.
They are: Judge Helper
Performance appraisal also involves giving feedback
Fletcher, C. and Williams, 1985.
Slide 9.28
Performance Managementis NOT
performance appraisal
Slide 9.29 PM is NOT performance appraisal
•–––
•
Performance ManagementStrategic business considerationsDriven by line managerOngoing feedback
So employee can improve performance
Slide 9.30 PM is NOT performance appraisal
•––
••
––
Performance AppraisalDriven by HRAssesses employee
Strengths &Weaknesses
Once a yearLacks ongoing feedback (once in areporting period)
Slide 9.31
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
The Main Uses of PerformanceAppraisal Schemes (1)
••••••
To improve current performanceTo provide feedbackTo increase motivationTo identify training needsTo provide for rewardsTo award salary increases
Slide 9.32
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
The Main Uses of PerformanceAppraisal Schemes (2)
•••••
•
To solve joint problemsTo let individuals know what is expected of themTo clarify job objectivesTo aid in career planning and developmentTo provide information for human resourceplanningTo assess competencies
Slide 9.33
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
The Main Uses of Performance AppraisalSchemes (4)
•••
Performance reviewPotential and developmental reviewReward review
Randell, G.A., Packard, P.M.A., Shaw, R.L. and Slater, A.J.P. (1984)
According to Randell et al . (1984), most employers havethree main uses of appraisal schemes that are likely toconflict:
Slide 9.34 Assessment of Performance•
••
1.
2.
Performance can be assessed in two different waysby using either:
Objectives orCompetencies
Output – this uses objectives to set targets foremployees to work towards
Input – examine the inputs that employees make tothe organisation and determine the level ofcompetence that the employee must achieve in theirjob M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Slide 9.35
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Problems with Performance Appraisal
•
•
•
•
•
Lack of clarity of objectives of the appraisalsystem (by the organisation)
Links with pay preventing open discussion
Keeping information secret from the employee
The appraiser attacking the appraisee’s character
Using appraisal as part of the disciplinary process
Slide 9.36
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Pause for Thought 9.1
• How would you feel if one of your tutors saidthat you lacked integrity or that yourintelligence was inadequate?
Slide 9.37
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Activity 9.1
List the people who may be involved in theappraisal process, with the advantages anddisadvantages for each.
People whomay beinvolved
Advantages Disadvantages
Slide 9.38
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Types of Performance Appraisal
•
•
•
•
Management by objectives (MBO)
Rating scales
Behaviourally anchored rating scales (BARS)
Behavioural observation scales (BOS)
Slide 9.39
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Activity 9.2
•
•
•
The main duties for a receptionist are listed inFigure 9.2 (pages 280–281).For each of these duties, write a list ofstatements to indicate the possible degrees ofsuccess of someone working in this job.It is intended that these statements will form thebasic information with which the individual’sperformance in that job is compared by theappraiser.
Slide 9.40
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Activity 9.3
• Make a list of the advantages anddisadvantages of this system ofbehaviourally anchored rating scales.
Slide 9.41
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Discussion of Activity 9.3 (1)
•
•
••
AdvantagesObjective rating of each of duties in the jobdescriptionAgreement over suitable descriptions for eachcategory of behaviourEasy to useUseful if lots of people have the same jobdescriptions so that the amount of time involvedin designing the system will be repaid
Slide 9.42
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
Discussion of Activity 9.3 (2)
––
DisadvantagesTime consumingOnly takes account of existing job performance;does not allow for discussion of future potential
Slide 9.43
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006
The Appraisal Interview
•••
PreparationPrivacy and confidentialityGood questioning technique
There is a need for the following if an appraisalinterview is to be successful:
Slide 9.44
THE END
M. Foot & C. Hook, Introducing Human Resource Management , 4th Edition © Pearson Education Limited 2006