Performance Management 5
Performance Management 5
DEFINITION
Is a strategic and integrated approach to delivering sustained success to the organization by improving the contribution of the people who work in it and developing the capabilities of teams and individuals.
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Performance Management
The process by which executives, managers, and supervisors work to align employees performance with the firms goals The process has a precise definition of excellence, uses measures of performance and provides feedback to employees about their performance
PERFORMANCE MANAGEMENT
STRATEGIC: concern with broader issues facing the business and achievement of short term and long-term goals. INTEGRATED:
Vertical integration - aligning business, team and individual objectives. Functional integration linking functional strategies and activities. HR integration especially capacity development, productivity and reward. Integration of corporate and individual objectives.
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PERFORMANCE MANAGEMENT
Concern with: OUTCOMES, OUTPUT, PROCESS AND INPUTS- results, impact made on performance, how output is delivered and the competencies/resources needed to perform. PLANNING - defining expectations through business plans expressed as objectives at unit and individual employee levels. MEASUREMENT AND REVIEW - assessing results and reviewing progress. CONTINOUS DEVELOPMENT/LEARNING AND IMPROVEMENT organizational and individual learning from successes and challenges inherent in the work experiences. COMMUNICATION culture of dialogue between employees and their supervisors. STAKEHOLDERS the needs of owners, employees, management, customers, suppliers and other interest groups are satisfied.
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CONTINOUS MONITORING AND FEEDBACK FORMAL REVIEW, FEEDBACK AND JOINT ASSESSMENT RATING REWARDS
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PERFORMANCE APPRAISSAL
The process through which an organisation gets information on how well an employee is doing his/her job.
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Appraisal methods
Managers usually conduct appraisal using a predetermined and formal method . It is predetermined insofar as most firms do decide ahead of time what tools and processes they are going to use. Processes would include specific decisions like what time of the year the appraisals are done, and who will review the completed appraisals
Management by Objectives Computerized and Web-Based performance appraisal Mixing the methods
Instead of appraising generality factors (such a quality and quantity) that apply to all or most jobs, you may focus on the jobs actual duties (based on job description and annual performance targets)
Paired Comparison
The paired comparison helps make the ranking method more precise. For every trait (quality of work, quantity of work and so on), you pair and compare every subordinate with every other subordinate. Make a chart of all possible pairs of employees for each trait, indicate (with a + or - ) who is better employee of the pair Next add up the number of +s for each employee
The proportion in each category need not be symmetrical ( not necessarily a normal curve) Forced distribution means not everyone can get an A and ones performance is always rated relative to ones peers. White down each employees name on a separate index card for each trait Then for each trait, place employees card in the appropriate performance category
This method has several advantages: It provides actual examples of good and poor performance the supervisor can use to explain the persons rating It ensures that the mangers or supervisors think about the subordinates appraisal all during the ear The rating does not just reflect on the employees most recent performance
The rating hopefully provides examples of what specifically the subordinate can do to eliminate any deficiencies However, without some numerical rating, this method is not too useful for comparing employees or making salary decisions It is useful to accumulate incidents that are tied to the employees goals
Narrative Forms
The final appraisal is often in narrative form The supervisor is asked:
To rate the employees performance for each factor or skill And write down the examples And improvement plan
Developing a BARS typically requires five steps Generate critical incidents ask persons who know the job (job holders and/or supervisor) to describe specific illustration ( critical incidents) for effective and ineffective performance Develop performance dimensions have these people cluster the incidents into smaller set of (5 or 100 performance dimensions, and define each dimension such as conscientiousness
Reallocate incidents Another group of people who also know the job then reallocate the original critical incidents. They get the cluster definitions and the critical incidents, and must reassign each incident to the cluster they think it fits best Retain a critical incident if some percentage 9usually 50% to 80% ) of this second group assigns it to the same cluster as did the first group
Scale the incidents This second group then rates the behaviour described by the incident as to how effectively or ineffectively it represents performance dimension (7 to 9 point scales are typical) Develop a final instrument Choose about six or seven of the incidents as the dimensions behaviour anchors
advantages
While more time consuming than other appraisal tools, BARS may also have advantages: 1. A more accurate gauge. People who know the job and its requirements better than anyone develops the BARS. This should produce a good gauge of a job performance
2. clear standards. The critical incident along the scale make clear what to look for in terms of superior performance, average performance and so on 3. Feed back. The critical incidents make it easier to explain the rating to appraisees
4.. Independent dimensions. Systematically clustering the critical incidents into five or six performance dimensions (such as knowledge and judgment" should help to make the dimensions more independence of one another. For example, a rater should be less likely to rate an employee high on all dimensions simply because he or she was rated high in conscientiousness
5. Consistency BARS evaluations also seem to be relatively consistent and reliable, in that different raters appraisals of the same person tend to be similar
Performance objectives
Characteristics: Clarity simply, clear and easily understood Relevance drawn from the overall business objectives, department, unit and personal objectives Quantifiable quantity, quality, cost completion date
Competencies
Technical competencies: Possess the required skills Exercises the requisite skills
Appraisal cont
After review and discussions, appraiser and appraisee jointly set operational or performance objectives, target and standards for the succeeding period Annually, a written analysis of the appraisee s performance identifying areas for improvement is prepared
Specific Objectives and Targets Short-term levels of achievements which are specific, measurable and achievable.
LOW
APPRAISER INVOLVEMENT
HIGH
1. Communicate and give 1. Pile up comments just feedback often, not just at for the appraisal appraisal time to make the appraisal, less threatening. 2. Appraisee your own 2. Assume that all faults performance and how it may lie with the employee have affected that of the and that your employees performance has no impact