Empfohlen
Empfohlen
Weitere ähnliche Inhalte
Was ist angesagt?
Was ist angesagt? (19)
Ähnlich wie Human Resource Management
Ähnlich wie Human Resource Management (20)
Kürzlich hochgeladen
Kürzlich hochgeladen (20)
Human Resource Management
- 1. HRM and Performance Management Muhammad Bilal Kayani
- 2. Introduction Performance management is the process through which managers ensure that employees’ activities and outputs are congruent with the organization's goals. Performance Appraisal is the process through which an organization gets information on how well an employee is doing his or her job. Performance Feedback is the process of providing employees information regarding their performance effectiveness. 8-2
- 3. An HRM Framework Understanding the jobs Pursuing human resources Evaluating human resources Retaining (useful) human resources Strengthening human resources Separating human resources
- 4. An HRM Framework Understanding the jobs Pursuing human resources Evaluating human resources Retaining (useful) human resources Strengthening human resources Separating human resources PERFOR -MANCE
- 5. Can HRM improve Firm Performance? Strategic HRM (SHRM): Yes! HRM practices can be useful strategically and can help the firm achieve a competitive advantage.
- 6. HRM Functions and Performance The more extensive recruitment and selection procedures the higher firm profits (Terpstra & Rozell, 1993) Link between adoption of training programs and financial performance (Russell et al., 1985) Using performance appraisal and incentive pay leads to higher profitability (Gerhart & Milkovich, 1992) Gerhart, B., & Milkovich, G.T. (1992), Employee compensation: Research and practice. In M.D. Dunnette & L.M. Hough (Eds.), Handbook of Industrial and Organizational Psychology, vol. 3: 481-569. Palo Alto, CA: Consulting Psychologists Press. Russell, J.S., Terborg, J.R., & Powers, M.L. (1985), Organizational performances and organizational level training and support. Personnel Psychology, 38: 849-863. Terpstra, D.E., & Rozell, E.J. (1993), The relationship of staffing practices to organizational level measures of performance. Personnel Psychology, 46: 27-48.
- 7. Instead of looking at people or the effectiveness of individual HR functions, the HPWS idea focuses on the SYSTEM of HR functions High-Performance Work Systems
- 8. Performance Management Model Individual Behaviors Situational Constraints culture & economic conditions Individual Attributes (skills, abilities) Organizational Strategy long & short term goals&values Objective Results 8-8
- 9. 3 Purposes of Performance Management Strategic DevelopmentalAdministrative 8-9
- 10. High-Performance Work Systems Interesting Jobs Satisfied Workers Low Turnover Low Absenteeism Lower Costs Higher Sales Higher Profits Greater Productivity Satisfied CustomersHigh Quality High Innovation Knowledge Sharing
- 11. Recommendations - Developing an Effective Performance Management System Mirror the corporate culture and values Have visible senior management support. Focus on the right company performance measures. Link job descriptions to the performance management system. Differentiate performance fairly and effectively. Train managers in performance management. Communicate the total rewards system. Require managers to search, offer and acquire regular performance feedback. Set clear expectations for employee development. Track effectiveness of the performance management system. Adjust the system as required. 8-11
- 12. Comparative Approach Ranking Simple ranking ranks employees from highest to lowest performer. Alternation ranking - crossing off the best and worst employees. Forced distribution Employees are ranked in groups. Paired comparison Managers compare every employee with every other employee in the work group. 8-12
- 13. Attribute Approach Graphic rating scales alist of traits is evaluated by a 5-point rating scale. legally questionable. Mixed-standard scales define relevant performance dimensions develop statements representing good, average, and poor performance along each dimension. 8-13
- 14. Behavioral Approach Critical incidents approach - requires managers to keep record of specific examples of effective and ineffective performance. Behavioral observation scales (BOS) Organizational behavior modification - a formal system of behavioral feedback and reinforcement. Assessment centers - multiple raters evaluate employees’ performance on a number of 8-14
- 15. Results Approach Management by Objectives top management passes down company’s strategic goals to managers to define the goals. Productivity Measurement and Evaluation System (ProMES) goal is to motivate employees to higher levels of productivity. Goals Hierarchy 8-15
- 16. Quality Approach A performance management system designed with a strong quality orientation can: 1. Assess both person and system factors in the measurement system. 2. Emphasize managers and employees work together to solve performance problems. 3. Involve both internal and external customers in setting standards and measuring performance. 4. Use multiple sources to evaluate person and system factors. 8-16
- 17. 5 Performance Information Sources Customers Peers Self Subordinates Managers 8-17
- 18. 5 Performance Measurement Rater Errors 1. Similar to Me 2. Contrast 3. Distributional Errors 4. Halo and Horns 5. Appraisal Politics 8-18
- 19. Reducing Rater Errors and Politics Approaches to Reducing Rater Error: Rater error training Rater accuracy training Calibration Meetings- attended by managers to discuss employee performance ratings. 8-19
- 20. Improve Performance Feedback 1. Give feedback frequently, not once a year. 2. Create the right context for discussion. 3. Ask employees to rate performance before thesession. 4. Encourage the employee to participate. 5. Recognize effective performance through praise. 6. Focus on solving problems. 7. Focus feedback on behavior or results, not on the person. 8. Minimize criticism. 9. Agree to specific goals and set progress review date. 8-20
- 21. Employee Characteristics Performance Standards/ Goals Feedback Consequences Input 5 Factors to Consider When Analyzing Poor Performance 8-21
- 22. Withstand Legal Scrutiny 1. Conduct a valid job analysis related to performance. 2. Base system on specific behaviors or results. 3. Train raters to use system correctly. 4. Review performance ratings and allow for employee appeal. 5. Provide guidance/support for poor performers. 6. Use multiple raters. 8-22
- 23. Thank you
Hinweis der Redaktion
- Chapter 8 examines a variety of approaches to performance management. The chapter begins with a model of the performance-management process that examines the system's purposes. Finally, the causes of performance problems are identified. A performance management system has three parts: defining performance, measuring performance, and feeding back performance information. First, a performance management system specifies which aspects of performance are relevant to the organization, primarily through job. Second, it measures those aspects of performance through performance appraisal, which is only one method for managing employee performance. Third, it provides feedback to employees through performance feedback sessions so they can adjust their performance to the organization’s goals. Performance feedback is also fulfilled through tying rewards to performance via the compensation system such as through merit increases or bonuses. Because companies are interested in continuous improvement and creating engaged employees—employees who know what to do and are motivated to do it—many companies are moving to more frequent, streamlined performance reviews.
- to understand the process of performance. This model depicts a process model of performance and shows, individuals’ attributes—their skills, abilities, and so on— are the raw materials of performance. The objective results are the measurable, tangible outputs of the work, and they are a consequence of the employee’s or the work group’s behavior. Another important component of the model is the organization's strategy.Performance planning and evaluation (PPE) systems seek to tie the formal performance appraisal process to the company’s strategies by specifying at the beginning of the evaluation period the types and level of performance that must be accomplished to achieve the strategy. Then at the end of the evaluation period, individuals and groups are evaluated based on how closely their actual performance met the performance plan. In an ideal world, performance management systems would ensure that all activities support the organization’s strategic goals. Situational constraints are always at work within the performance management system. an employee may have the necessary skills and yet not exhibit the necessary behaviors. Sometimes the organizational culture discourages the employee from doing effective things. Work group norms often dictate what the group’s members do and the results they produce. On the other hand, some people are simply not motivated to exhibit the right behaviors. This often occurs if the employees do not believe their behaviors will be rewarded with pay raises, promotions, and so forth. Finally, people may be performing effective behaviors, and yet the right results do not follow. Finally, our model notes that situational constraints are always at work within the performance management system. As discussed previously, an employee may have the necessary skills and yet not exhibit the necessary behaviors. Sometimes the organizational culture discourages the employee from doing effective things. Work group norms often dictate what the group’s members do and the results they produce. On the other hand, some people are simply not motivated to exhibit the right behaviors. This often occurs if the employees do not believe their behaviors will be rewarded with pay raises, promotions, and so forth. Finally, people may be performing effective behaviors, and yet the right results do not follow. employees must have certain attributes to perform a set of behaviors and achieve some results. To gain competitive advantage, the attributes, behaviors, and results must be tied to the company’s strategy. Regardless of the job or company, effective performance management systems measure performance criteria (such as behaviors or sales) as precisely as possible. Effective performance management systems also serve a strategic function by linking performance criteria to internal and external customer requirements. Effective performance management systems include a process for changing the system based on situational constraints. Besides serving a strategic purpose, performance management systems also have administrative and developmental purposes.
- First and foremost, a performance management system should link employee activities with the organization's goals.Performance management is critical for executing a talent management system and involves one-on-one contact with managers to ensure that proper training and development are taking place. Performance management is critical for companies to execute their talent management strategy. Performance‑management information is used for such administrative decisions. Organizations use performance management information (performance appraisals) in many administrative decisions: salary administration (pay raises), promotions, retention–termination, layoffs, and recognition of individual performance Performance management can be used to develop employees who are ineffective at their jobs.When employees are not performing as well as they should, performance management seeks to improve their performance. The feedback given during a performance evaluation process often pinpoints the employee’s weaknesses.
- To make a performance management system that can best meet strategic, administrative, and developmental goals there are several things that should occur. Table 8.2 provides recommendations for developing an effective performance management system that can meet strategic, administrative and developmental purposes.
- The comparative approach to performance requires the rater to compare an individual’s performance with that of others. 1. Ranking is one of the techniques that arrive at an overall assessment of the individual's performance. a. Simple ranking requires managers to rank employees within their departments from highest performer to poorest performer. Alternation ranking consists of a manager looking at a list of employees, deciding who is the best employee, and crossing that person’s name off the list. 2. Forced Distribution—The forced distribution methodrequires the managers to put certain percentages of employees into predetermined categories. 3. Paired Comparison—The paired comparison methodrequires managers to compare every employee with every other employee in the work group, giving an employee a score of one every time he or she is considered the higher performer. Employees are ranked by how many points they receive.
- The attribute approach to performance managementfocuses on the extent to which individuals have certain attributes 1.Graphic Rating Scales a. Graphic rating scalescan provide a number of different points (a discrete scale) or a continuum along which the rater simply places a check mark (a continuous scale). 2.Mixed Standard Scales a. Mixed standard scalesare developed by defining therelevant performance dimensions with statements representing good, average, and poor performance along each dimension.
- The behavioral approach to performance managementattempts to define the behaviors an employee must exhibit to be effective in the job.The various techniques define those behaviors and then require managers to assess the extent to which employees exhibit them. Critical Incidents—The critical incident approachrequires managers to keep a record of specific examples of effective and ineffective performance for each employee. 2. Behaviorally anchored rating scales (BARS) specifically define performance dimensions by developing behavioral anchors associated with different levels of performance Behavioral observation scales (BOS) is a variation of a BARS. They are developed from critical incidents but use a larger number of the behaviors that are necessary for effective performance. Rather than assessing which behavior best reflects an individual’s performance, a BOS requires managers to rate the frequency with which the employee has exhibited each behavior during the rating period. These ratings are then averaged to compute an overall performance rating Organizational behavior modification (OBM) entails managing the behavior of employees through a formal system of behavioral feedback and reinforcement. Assessment centers can be usedfor measuring managerial performance. During an assessment, individuals usually perform a number of simulated tasks, and assessors observe and evaluate the individual's skill or potential as a manager. The behavioral approach might be best suited to less complex jobs (where the best way to achieve results is somewhat clear) and least suited to complex jobs (where there are multiple ways, or behaviors, to achieve success).
- The results approach to performancemanagement focuses on managing the objective, measurable results of a job or work group. This approach assumes that subjectivity can be eliminated from the measurement process and that results are the closest indicator of one's contribution to organizational effectiveness. Management by objectives (MBO) is a joint goal‑setting process in which goals are agreed upon between the managers and each subordinate. These goals then become standards used to evaluate the individual's performance. This goal‑setting process cascades down the organization so that all managers are setting goals that help the company achieve its goals. These goals are used as the standards by which an individual’s performance is evaluated. MBO systems have three common components. They require specific, difficult, objective goals. Productivity measurement and evaluation system (ProMES)- Themain goal of ProMES is to motivate employees to higher levels of productivity. It consists of four steps: identify the objectives the products, or the set of activities or objectives, the organization expects to accomplish; (2) the staff defines indicators of the products; (3) the staff establishes the contingencies between the amount of the indicators and the level of evaluation associated with the amount; (4) a feedback system is developed that provides employees and work groups with information about their specific level of performance on each of the indicators .ProMES is a means of measuring and feeding back productivity information to personnel.
- Two fundamental characteristics of the quality approach are a customer orientation and a prevention approach to errors. Improving customer satisfaction is the primary goal of the quality approach. Customers can be internal or external to the organization. A performance management system designed with a strong quality orientation can be expected to • Emphasize an assessment of both person and system factors in the measurement system. • Emphasize that managers and employees work together to solve performance problems. • Involve both internal and external customers in setting standards and measuring performance. • Use multiple sources to evaluate person and system factors.
- Whatever approach to performance management is used, it is necessary to decide whom to use as the source of the performance measures. Each source has specific strengths and weaknesses. Five primary sources include managers, peers, subordinates, self, and customers. Managers are the most frequently used source. Peers, or coworkers, are excellent sources of information when the supervisor does not always observe the employee. Subordinates are a valuable source of performance information when managers are evaluated. They often have the best opportunity to evaluate how well a manager treats employees. Self‑ratings can be valuable but are not usually used as the sole source of performance information. In some instances, the customer is often the only person present to observe the employee's performance.
- Research consistently reveals that humans have tremendous limitations in processing information. Because we are so limited, we often use “heuristics,” or simplifying mechanisms, to make judgments, whether about investments or about people. These heuristics, which appear often in subjective measures of performance, can lead to rater errors. Performance evaluations may also be purposefully distorted to achieve personal on company goals (appraisal politics). Five rater errors in performance management include: “Similar to Me” is the error we make when we judge those who are similar to us more highly than those who are not. Contrast errors occur when we compare individuals with one another instead of with an objective standard. Distributional errors are the result of a rater’s tendency to use only one part of the rating scale. 4. Halo errors occur when one positive performance aspect causesthe rater to rate all other aspects of performance positively.Horns error works in the opposite direction: one negative aspect results in the rater assigning low ratings to all the other aspects. Halo and horns errors preclude making the necessary distinctions between strong and weak performance. Halo error leads to employees believing that no aspects of their performance need improvement. Horns error makes employees frustrated and defensive. 5. Appraisal politics refer to evaluators purposefully distorting a rating to achieve personal or company goals. Several factors inherent in the appraisal system and the company culture promote appraisal politics. Appraisal politics are most likely to occur when raters are accountable to the employee being rated, there are competing rating goals, a direct link exists between performance appraisal and highly desirable rewards, if top executives tolerate distortion or are complacent toward it, and if distortion strategies are part of “company folklore” and are passed down from senior employees to new employees.
- Rater error training attempts to make managers aware of rating errors and helps them develop strategies for minimizing those errors. These programs consist of having the participants view videotaped vignettes designed to elicit rating errors such as “contrast.” They then make their ratings and discuss how the error influenced the rating. Finally, they get tips to avoid committing those errors. This approach has been shown to be effective for reducing errors, but there is evidence that reducing rating errors can also reduce accuracy. Rater accuracy training, also called frame-of-reference training, attempts to emphasize the multidimensional nature of performance and thoroughly familiarize raters with the actual content of various performance dimensions. This involves providing examples of performance for each dimension and then discussing the actual or “correct” level of performance that the example represents. Accuracy training seems to increase accuracy, provided that in addition the raters are held accountable for ratings, job-related rating scales are used, and raters keep records of the behavior they observe Calibration Meetings- attended by managers to discuss employee performance ratings.Evidence supporting the ratings is provided to reduce the influence of rating errors andpolitics on performance appraisals.
- If employees are not made aware of how their performance is not meeting expectations, their performance will almost certainly not improve. In fact, it may get worse. Effective managers provide specific performance feedback to employees in a way that elicits positive behavioral responses. To provide effective performance feedback managers should consider the following recommendations. Performance Feedback is a process that is complex and provokes anxiety for both the manager and the employee. Feedback should be given frequently, not once a year. Create the right context for the discussion. Ask employee to rate his or her performance before the session. Encourage the employee to participate in the session. Focus on solving problems. Focus feedback on behavior or results, not on the person. Minimize criticism. Agree to specific goals and set progress review date.
- Many different reasons can cause an employee’s poor performance. The five categories to consider include input, employee characteristics, feedback, performance standards/goals, and consequences.
- In discrimination suits, the plaintiff often claims that the performance ratings were subjective and that the rater was biased and influenced by gender or racial stereotypes. Because of the potential costs of discrimination and unjust dismissal suits, an organization needs to determine exactly what the courts consider a legally defensible performance management system. Based on reviews of such court decisions, these are six characteristics of a system that will withstand legal scrutiny.