Performance-management-HR-strategy

HumanResourceManagementChapterNinePerformanceManagementFrameworkfortheStrategicManagementofEmployeesWhyPerformanceManagementIsImportantHowwellemployeesperformisafunctionoftheefforttheyexpendManager’sgoalistomotivateemployeestoworkhardandcontinuallyimproveThisinvolvesevaluatingperformanceofemployeesagainstthestandardsandhelpingthemdevelopactionplanstoimprovePurposesofPerformanceManagementAdministrativePurposes-“Documentation”Performancemanagementisatoolforadministrativedecisionssuchas:compensation,promotions,retention-termination,layoffs,andrecognition.DevelopmentalPurposes-“Develop”Performancemanagementisatooltohelpemployeesimprovetheirweaknessesandrealizetheirlong-termgoalsandcareerobjectives.StrategicPurposes-“Align”PerformanceManagementisatooltotrackandprovidefeedbackonthoseemployeeresults,behaviors,andcharacteristicsthatarenecessarytoimplementthestrategy.Alsocommunicatesstrategicgoalsbyemphasizingwhatisevaluated.StepsinthePerformanceManagementProcess1.Identifyperformancedimensions2.Developperformancemeasures3.Evaluateemployeeperformance4.Providefeedback5.DevelopactionplanstoimproveperformanceStep1:IdentifyingPerformanceDimensionsGlobalperformancemeasureisasinglescoretoreflectoverallperformancePerformancedimensionsaredifferentareasthatarebeingevaluated—shouldreflectthereasonsthejobexists(tasks,duties,responsibilities)Step2:DevelopingPerformanceMeasuresValidMeasures-Reliabilityreferstohowwellameasureyieldsconsistentresultsovertimeoracrossraters.Validityistheextenttowhichyouaremeasuringwhatyouwanttomeasureandhowwellthatisdone•ValidversuscontaminatedanddeficientPerformanceMeasureStandards–levelsofperformancethatrelatetolevelsoftaskorjobeffectivenessSpecificity-theclarityoftheperformancestandardsValidityMeasuresshouldbeReliablereferstohowwellameasureyieldsconsistentresultsovertimeandacrossratersAndnot…Deficientmeasuresleaveoutimportantaspectsofanindividual’sperformanceContaminatedmeasurescaptureinformationirrelevanttoanindividual’sjobperformanceValidityinperformancemanagementJobPerformanceMeasureActual,or“true”JobPerformanceContaminationDeficiencyValidityStep2:DevelopingPerformanceMeasures(cont’d)PerformanceMeasurementStandards:Performancestandardssetalevelofexpectedperformance,abenchmarkCanbequantitativeorqualitativeSpecificity:ShouldbeclearandreflecttheentireperformancespectrumStep3:EvaluatingEmployeePerformance(1)IndividualComparisonsRankingapproach—comparingemployeestoeachother(e.g.besttoworst)Pairedcomparison—eachemployeeiscomparedtoeveryotheremployeeandpointsareassignedtothe“better”individual,pointsaretotaledandcomparedForceddistribution—managersareforcedtodistributeemployeesintopredeterminedcategoriesandpreventedfromratingeveryoneasoutstanding,oraveragePairedComparisonsExampleEmployeeBeingRatedEmployeeforPairedComparisonBobSueJohnAnilMagniKarenBob---Sue---John---Anil---Magni---Karen---PointTotal321432PairedComparisonForcedDistributionPerformanceEvaluationAveragePoorGoodVeryGoodVeryPoorPercentageofEmployees40%20%10%ProblemswithForcedDistributionsStep3:EvaluatingEmployeePerformance(cont’d)(2)AbsoluteApproaches:MeasuringTraitsandBehaviorComparingemployeesagainstcertain“absolute”standardsratherthanagainsteachotherEachemployee’sevaluationisindependentofothersandincludestraits,attributes,andbehaviorsAbsoluteApproachestoPerformanceManagementEmployeesarecomparedtoastandard,theirevaluationisindependentofanyotheremployeeinaworkgroup.Attribute-Designedtomeasuretheextenttowhichanemployeepossesscertaincharacteristics--suchasloyalty,dependability,creativity,initiative,andleadership–thatareviewedasimportantforthejobandtheorganizationingeneral.ExamplesofTechnique:GraphicRatingScaleForcedChoiceCopyright©2010PearsonEducation,Inc.PublishingasPrenticeHall9-17Step3:EvaluatingEmployeePerformance(cont’d)Attribute-basedapproaches–usinggraphicratingscales,ratersevaluateemployeesbasedonvarioustraitsrelevanttotheperformanceCirclethemostappropriateratingtoreflecttheemployee’sperformanceoneachdimensionPerformanceDimensionRatingPoorBelowAveAverageAboveAveOutstandingCourteous12345Cooperative12345Knowledge12345Qualityofwork12345Qualityofknowledge12345Productknowledge12345Creativity12345Example:ForcedChoiceRequirestheratertochoosefromstatements,ofteninpairs,thatappearequallyfavorableorequallyunfavorable.Thestatements,however,aredesignedtodistinguishbetweensuccessfulandunsuccessfulperformance.1a.Workhard1b.Worksquickly2a.Isresponsivetocustomers2b.Showsinitiative3a.Producespoorquality3b.LacksgoodworkinghabitsAbsoluteApproachestoPerformanceManagementEmployeesarecomparedtoastandard,theirevaluationisindependentofanyotheremployeeinaworkgroup.Behavioral-attemptstodefinethebehaviorsanemployeemustexhibittobeeffectiveinthejob.ExamplesofTechnique:CriticalIncidents,BehaviorObservationScales,BehaviorallyAnchoredRatingScalesTextBox9.3BehavioralObservationScaleExamplePerformanceDimensionsPreparedforClass:Theextenttowhichprofessoriswellpreparedtoleadclassdiscussiononparticulartopicandaddressstudentsconcerns.AlmostNe