Chapter 1: Overview of Performance Management

• 1. HRM751 OVERVIEW OF PERFORMANCE MANAGEMENT NUR SYAZANA BINTI HAJI AZMAN HISHAM 2012423038 ASSOC. PROF. DR ROSHIDI BIN HASSAN

2. Continuous Process of1. Identifying Measuring DevelopingThe performance of individuals and teams and 2.Aligning performance withStrategic Goals of the organization 3. theprocess where steering of the organization takes place through the systematic definition of mission, strategy and objectives of the organization, making these measurable through critical success factors and key performance indicators, in order to be able to take corrective actions to keep the organization on track (Waal, Goedegebuure, &Geradts, 2011). 4. Performancemanagement can be regarded as a systematic process by which the overall performance of an organization can be improved by improving the performance of individuals within a team framework (Singh, 2012). 5. Effectiveperformance managementinvolving a complete system of goal setting, training, communication, and ongoing feedback-is a practice on which research often has important implications (Helm, Courtney L, Frank R, & Christine, 2007). 6. PMis something that people actually do and can be observed . . . Performance is what the organization hires one to do, and do well. Performance is not the consequence or result of action, it is the action itself (W. Smither& London, 2009). 7. Performance Management is NOT Performance Appraisal 8. Value-based approach to evaluate the performance of employees, (Bhattacharyya, 2011) 9. Increase motivation to perform Increase self-esteem Clarify definitions of job success criteriaEnhance self-insight and development Motivation, commitment and intentions to stay in the organization are enhanced 10. Managersgain insight about subordinates Employees become more competent Better and more timely differentiation between good and poor performers Communicate supervisors views of performance more clearly 11. Organizationalgoals are made clear Fairer and more appropriate administrative actions Better protection from lawsuits Facilitate organizational change 12. - Lowered self-esteem - Employee burnout and job dissatisfaction - Damaged relationships - Use of false or misleading information 13. Increasedturnover Decreased motivation to perform Unjustified demands on managers resources Varying and unfair standards and ratings 14. Wastedtime and money Unclear ratings system Emerging biases Increased risk of litigation 15. Motivation to obtain rewards is one of the fundamental drives underlying much of both human and non-human animal behavior (Christian & Ian, 2008).Reward systems can shape the behavior of employees within the organization (Suliyanto, 2011) 16. Set of mechanisms for distributing Tangible returns and Intangibleor relational returnsAs part of an employment relationship 17. Cashcompensation Base payCost-of-Living & Contingent Pay Incentives (short- and long-term) 18. Benefits,such asIncome Protection Allowances Work/life focus 19. Relationalreturns, such asRecognition and status Employment security Challenging work Learning opportunities 20. Base PayCost of Living Adjustment and Contingent PayShort-term IncentivesLong-term IncentivesIncome ProtectionWork/Life FocusAllowancesRelational Returns 21. StrategicAdministrativeInformationalDevelopmentalOrganizational maintenanceDocumentational 22. Linkindividual goals with organizations goals Communicate most crucial business strategic initiatives 23. Provideinformation for making decisions: i.Salary adjustments ii. Promotions iii. Retention or termination iv. Recognition of individual performance v. Layoffs 24. Communicate to Employees: Expectations What is important How they are doing How to improve 25. Performancefeedback/coaching Identification of individual strengths and weaknesses Causes of performance deficiencies Tailor development of individual career path 26. Planeffective workforce Assess future training needs Evaluate performance at organizational level Evaluate effectiveness of HR interventions 27. Validateselection instruments Document administrative decisions Help meet legal requirements 28. Congruent with organizational strategyMeaningfulThoroughPracticalSpecificIdentifies effective/ ineffective performanceReliable 29. ValidAcceptable and FairInclusiveOpen (No Secrets)CorrectableStandardizedEthical 30. Consistent with organizations strategy - Aligned with unit and organizational goals - 31. Allemployees are evaluated All major job responsibilities are evaluated Evaluations cover performance for entire review period Feedback is given on both positive and negative performance 32. Available Easyto use Acceptable to decision makers Benefits outweigh costs 33. Standardsare important and relevant System measures ONLY what employee can control Results have consequences Evaluations occur regularly and at appropriate times System provides for continuing skill development of evaluators 34. Concrete and detailed guidance to employees Whats expected How to meet the expectations 35. Distinguishbetween effective and ineffective Behaviors Results Provideability to identify employees with various levels of performance 36. Consistent Freeof error Inter-rater reliability 37. -Relevant (measures what is important) - Not deficient (doesnt measure unimportant facets of job) - Not contaminated (only measures what the employee can control) 38. Perceptionof Distributive Justice Work performed Evaluation received Reward Perceptionof Procedural Justice Fairness of procedures used to: Determine ratings Link ratings to rewards 39. Representsconcerns of all involved When system is created,employees should help with deciding What should be measured How it should be measured Employee should provide input onperformance prior to evaluation meeting 40. Frequent,ongoing evaluations and feedback 2-way communications in appraisal meeting Clear standards, ongoing communication Communications are factual, open, honest 41. Recognizesthat human judgment is fallible Appeals process provided 42. Ongoingtraining of managers to provide Consistent evaluations across People Time 43. Supervisorsuppresses self-interest Supervisor rates only where she has sufficient information about the performance dimension Supervisor respects employee privacy 44. PMprovides information for:PM + TRAININGPM + WORKFORCE PLANNINGPM + TALENT MANAGEMENTPM + COMPENSATION SYSTEM 45. Counterproductivework behavior(CWB) has been defined as volitional acts that harm or intend to harm organizations and their stakeholders (for example, clients, co-workers, customers, and supervisors) (Atwater & Elkins, 2009). 46. 1. Abuse against Others Incivility Workplace Aggression/Violence Sexual Harassment 2. Production Deviance Passive Production Deviance Sabotage and Theft Withdrawal 47. 1. 2.Non - Punitive Approaches Alignment Corrective FeedbackSelf - Management Training for Improving Job Performance 3.Punishment 4.Termination 48. 1. Determine whether there are legal issues that should be taken into account. 2. Consider only work - related factors. 3. Apply policies and decision - making rules consistently. 4. Allow employees a voice in the discipline process. 5. Make the punishment consistent with the severity of the offense. 6. Communicate clear performance expectations. 7. Provide employees with sufficient time to improve their performance or change their behavior.