ManagingEmployeePerformance(3)

HRMT650 ManagingEmployeePerformanceSpring2016 Dr.ArnoHaslberger

IssuesInPerformanceManagement

3

THE NATURE OF PERFORMANCE MANAGEMENT

T h e m a n y - f a c e t e d n a t u r e o f performance management was commented on as follows by Wayne Cascio:

‘It is an exercise in observation and judgement, it is a feedback process, it is an organizational intervention. It is a measurement process as well as an intensely emotional process. Above all, it is an inexact, human process.’

Cascio, W F (2010) Managing Human Resources: Productivity, quality of work life, profits, 8th edn, McGraw-Hill Irwin, New York

‘Theproblems[ofperformancemanagement]are…notofambiGonorintent,butratherpracGceanddelivery.Lowratesofcoverageandevenmorefrequentlylow-qualityconversaGonsandnon-existentfollow-uparecommonplace,inthewakeofuncommiReddirectors,incompetentlinemanagers,uncomprehendingemployeesandhectoringHRwiththeirsGllcomplexandbureaucraGcHRprocesses.’

DuncanBrown

The problems of performance management

The lack of line managers with the skills required to

carry out performance management effectively.

Line managers

who don't discriminate

sufficiently when assessing

performance.

Line managers who were

reluctant to conduct

performance management

reviews.

Performance management problems As reported by respondents to the 2014 e-reward survey

1 The extent to which the system should be forward-looking. 2 The extent to which the system should focus on performance enhancement.

Basic design issues

1.  The form and content of the performance agreement.

2.  The problem of aligning individual and organizational goals.

3.  Whether or not ratings should be used and if so, in what form.

4.  The link between performance management and performance pay.

5.  How performance management should be documented.

Design issues

Performance management can be modelled convincingly as a

system but in practice the acts or failures to act of fallible human

beings prejudice the effectiveness of the system.

Operational issues

•  Train, communicate; •  Evaluate performance management through employee engagement surveys; •  Have HR business partners work with line managers; •  Organize round tables (calibration); •  Provide details of expected competency levels per job type/level; •  Clarify that good is acceptable (not everyone can be a star); •  Encourage ongoing performance management, it's more than just an annual administrative hoop – it's a powerful management tool.

How to deal with performance management issues (1) As recommended by a respondent to the 2014 e-reward survey

‘Keep it very, very simple, be able to translate strategy to individual

goals and give people a clear line of sight. Ensure all people managers are capable to deliver performance

management, ie have a performance dialogue (this is the

key!) at any time and not just at the annual review.’

How to deal with performance management issues (2) As recommended by a respondent to the 2014 e-reward survey

‘FocusontheposiGves,createacultureofconGnualperformancemanagementratherthanrestricGngittoanannualappraisal.’

‘ManagersneedtobegiventheskillstomanagedifficultconversaGonsandallstaffneedtoknowhowtogiveandreceivefeedback.’

‘Clear line of sight between objective setting, performance review and business goals.’

‘Ensure the system isn't hampered by bureaucracy and tedious paperwork.’

‘It is the conversation between the manager and employee that is most important.’

How to deal with performance management issues (3)

As recommended by respondents to the 2014 e-reward survey

‘Make it about good

conversations, not just a process.’