managing performance.pptx

8/17/2019 Managing Performance.pptx

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Human Resource Management

Managing Performance

Aradhna Malik (PhD)

Assistant Professor

VGSoM, II !harag"ur


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Sources#riscoe, D$R$, Schuler, R$ S$ % &laus, '$ (*)$ International human resource

management: Policies and practices for multinational enterprises$ +-Routledge$

&ascio, .$ /$ (0)$ Managing human resources: Productivity, quality of work

life, profits$ +e1 Delhi- ata McGra1 Hill$

&le2eland, 3$ +$, Mur"h4, !$ R$ % .illiams, R$ 5$ (6*7*)$ Multi"le uses of

"erformance a""raisal- Pre2alence % correlates$ Journal of Applied

Psychology, 7(6), 608609$

Dessler, G$ (9)$ !uman resources management "#$ th %d&'$ +e1 Delhi-

Pearson$

Dessler, G$ % Varkke4, #$ (66)$ !uman (esource Management "#$ th %d&'& +e1

Delhi- Pearson$

Gilmore, S$ % .illiams, S$ (5ds$) (*)$ !uman (esources Management "Indian%dition'& +e1 Delhi- :;ford$

Gome


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ManagingPerformance


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Definitions of "erformance management(Hall, in Gilmore % .illiams, *)

◻ Managing the @usiness> (Mohrman % Mohrman, 6**9, in Hall, *)5ffecti2e management is managing "erformance and is the

res"onsi@ilit4 of all managers$◻ erm first used in the 6*?s @4 #eer and Ruh (6*?B, in Hall, *)-

5m"hasi


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Performance management in "ractice(Hall, in Gilmore and .illiams, *)

■ Performance management s4stem- :rgani


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Performance A""raisal


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Aims of a""raisal (Hall, in Gilmore % .illiams, *)■ &ommunication

◻o "ro2ide an o""ortunit4 for o"en t1o E 1a4 dialogue (feed@ack) a@out allas"ects of indi2idual "erformance

◻ o discuss % clarif4 e;"ectations, roles, as"irations, % an4 issues affecting

"erformance◻ o focus on ho1 the indi2idual 1ith the su""ort of the organis

role and career as"irations◻ o "ro2ide training, learning, and de2elo"ment o""ortunities to ena@le em"lo4ees

to contri@ute to the "erformance of their organi


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Identif4ing "erformance dimensions(Gome


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Identif4ing "erformance dimensions

(&ontd$)(Gome


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Defining em"lo4ee>s goals % efforts(Dessler, 9)

■ Assign s"ecific goals

■ Assign measura@le goals

■ Assign challenging @ut doa@le goals

■ 5ncourage "artici"ation


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Assessment of o@=ecti2es (Hall, in Gilmore % .illiams, *)

■

S- S"ecific, significant, stretching

■ M- Measura@le, meaningful, moti2ational

■ A- Attaina@le, agreed u"on, achie2a@le,acce"ta@le, action oriented

■ R- Realistic, rele2ant, reasona@le, re1arding,results oriented

■ - ime @ased, timel4, tangi@le


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A""raising "erformance(&ascio, 0, Dessler, 9)

Ste"s-■ Defining the =o@ and "erformance and setting achie2a@le goals■ /acilitating "erformance■ 5ncouraging "erformance

◻ Voice of em"lo4ees◻ &onsistenc4 of treatment of em"lo4ees◻ Rele2ance of re1ards◻ &ommunication a@out re1ards "rocess

■

A""raising "erformance■ /eed@ack to the em"lo4ee regarding a""raisal and directions

for the future

&hallenges-■ .hat to measure■ Ho1 to measure


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Reuirements of effecti2e a""raisal

s4stems (&ascio, *)■ Rele2ance-

◻ &lear links @et1een the "erformance standards for a "articular =o@and an organis goals

◻

&lear links @et1een the critical =o@ elements identified through a =o@ anal4sis and the dimensions to @e rated on an a""raisal form■ Performance standards- ranslation of =o@ reuirements into

le2els of acce"ta@le or unacce"ta@le■ Sensiti2it4- &a"a@ilit4 of a "erformance a""raisal s4stem to

distinguish effecti2e from ineffecti2e "erformers■ Relia@ilit4- &onsistenc4 of =udgment■ Acce"ta@ilit4 @4 em"lo4ees■ Practicalit4- 5ase of understanda@ilit4 and use of a""raisal

instruments


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Designing and o"erating

"erformance managements4stems


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Performance measurement(Hall, in Gilmore % .illiams, *)

■ Results oriented- :ut"uts> a""roach using metrics, e$g$◻ /inancial E Sales turno2er "er em"lo4ee, "re8ta; "rofit "er

em"lo4ee, return on in2estments etc$◻ Peo"le E Value added "er em"lo4ee, total lea2ersF total em"lo4ees

(), earl4 lea2ersF total em"lo4ees (), da4s lost to a@senteeism"er em"lo4ee, etc$

◻ &ustomer E &om"laints "er customer (), orders not deli2ered ontime (), satisfied customers (), marketing e;"enditureF turno2er(), etc$

◻ Inno2ation, learning, and de2elo"ment E R%D e;"enditureFturno2er (), training e;"enditureF turno2er (), training

e;"enditure "er em"lo4ee, etc$■ Grading methods or ranking methods E "seudo8uantitati2e E

used for assessing attitude and @eha2ioral as"ects of"erformance, 1here ranking or rating methods such as@eha2iorall4 anchored rating scales (#ARS) are commonl4

em"lo4ed


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Gra"hic Rating Scale Method (Dessler, 9)

■ 'ists traits (such as ualit4 % relia@ilit4) and a rangeof "erformance 2alues (from unsatisfactor4 tooutstanding) for each trait

■ Su"er2isor rates each su@ordinate @4 circling or

checking the score that @est descri@es his or her"erformance for each trait$ Assigned 2alues arethen totalled

■ .hat can @e measured

◻ Generic dimensions such as ualit4 % uantit4◻ 3o@>s actual duties, e$g$ maintenance of records◻ &om"etenc4 @ased a""raisals E focus on the

em"lo4ees a@ilit4 to e;hi@it the com"etencies that theem"lo4er 2alues for his =o@


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Alternation ranking method (Dessler, 9)

■ Ranks em"lo4ees from @est to 1orst on a traitor grou" of traits

■ 'ist all su@ordinates to @e rated

■ &ross out names of an4 not kno1n 1ell enoughto rank

■ Indicate the em"lo4ee 1ho is highest on thecharacteristic @eing measured and also the one1ho is lo1est

■ &hoose the ne;t highest and ne;t lo1est, andalternate @et1een highest and lo1est until all

em"lo4ees ha2e @een ranked


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:ther methods (Dessler, 9)

■ Paired com"arison method- /or e2er4 trait (ualit4 of 1ork,uantit4 of 1ork, etc$) e2er4 em"lo4ee is "aired andcom"ared 1ith e2er4 other

■ /orced distri@ution method- Similar to grading on a cur2e$Place "redetermined "ercentages of ratees into "erformance

categories e$g$ 69 high "erformers, high a2erage"erformers, 0 a2erage "erformers, lo1 a2erage"erformers, 69 lo1 "erformers◻ Pro@lems-

■ Possi@ilit4 of @ias■ High "ossi@ilit4 of intra8office "olitics affecting ratings

■ &ritical incident method- Su"er2isor kee"s a log of "ositi2eand negati2e e;am"les (critical incidents) of a su@ordinate>s1ork related @eha2ior$ 52er4 si; months or so, su"er2isor andsu@ordinate meet to discuss the latter>s "erformance, usingthe incidents as e;am"les

■ +arrati2e forms- /inal 1ritten a""raisal


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#eha2iorall4 Anchored Rating Scales

(#ARS)(Dessler, 9)

■ Generate critical incidents■ De2elo" "erformance dimensions■ Reallocate incidents

■ Scale the incidents■ De2elo" a final instrument■ Ad2antages-

◻ A more accurate gauge

◻ &learer standards◻ /eed@ack◻ Inde"endent dimensions

◻ &onsistenc4


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Management @4 :@=ecti2es (Hall, in Gilmore % .illiams, *)■ Introduced @4 Peter Drucker in 6*99■

/irst s4stematic a""roach that attem"ted to align organi


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#enefits of M#: (Hall, in Gilmore % .illiams, *)

■ It communicates organi


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#alanced Scorecard (Hall, in Gilmore % .illiams, *)■ !a"lan and +orton (6**B)- Performance measurement s4stem to

Performance management s4stem■ Pers"ecti2es to managing "erformance-

◻ &ustomer- &ustomer 2alue "ro"osition

◻ #usiness "rocesses (o"erational)- he internal "rocesses % s4stems

◻ Inno2ation % learning ("eo"le)- he human contri@ution through

kno1ledge % skills

■ Goals- Strategic goals at the to" le2el of an organi into a""ro"riate goals at lo1er le2els such as @usiness units,

teams, % indi2iduals

■ Process of translating and cascading> strategic aims into goals at e2er4

le2el throughout an organi


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#alanced Scorecard (Hall, in Gilmore % .illiams, *)Financial

perspectiveHo1 1e

satisf4 our

shareholders

Customer

perspective

Vision and

strategyHo1 1e e;cel

at 1hat 1e do

Ho1 our

em"lo4ees

contri@ute

Ho1 our

customers

2ie1 us

People

perspective

Operationalperspective


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5;am"le of a #alanced Scorecard(Hall, in Gilmore % .illiams, *)

Goal(Broadobjective )

Measureor‘metr ic’

Objective /target

Developmentactions

Achi eve‘ec ellent’cust omersatis!acti on

" o!cust omer slostover#$mont hs

%essthan#&"losso!cust omer s in'mont hstime

Develop‘lostcust omer s’report

" o! More ,se


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&riticisms of #alanced Scorecard(Hall, in Gilmore % .illiams, *)

■ Issues related to its inter"retation and

im"lementation

■ Issues related to timeF le2el of im"lementation◻ Indi2idual

◻ Re"orting tool

■ Distraction from @usiness acti2ities

■ 'ack of o1nershi" and accounta@ilit4

■ Difficult to esta@lish cause % effect>


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5uro"ean /oundation for ualit4 Management

(5/M) 5;cellence Model (Hall, in Gilmore % .illiams, *)■ Introduced in 6** (efm$com)■ #ased on-

◻ 5na@lers-■ 'eadershi"■ Peo"le■

Strateg4 % "olic4■ Partnershi" % resources■ Processes

◻ Results-■ Peo"le■ &ustomers■ Societ4■ !e4 "erformance indicators

■ &riticisms-◻ Relies on self E assessment◻ Heritage in ualit4 management E de2elo"ed as auditing frame1orks 1ith

a focus on com"liance 1ith e;isting standards, rather than managing"erformance 1ith a 2ie1 to the future


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Ad2antages % disad2antages of a""raisal tools(Dessler, 9, Hall, in Gilmore % .illiams, *)

3o

ol

Advantag

es

Disadvan

tages

Gr aphicrati ngscale

imple touse4 providesa1uantitati ve rating!or eachemplo*ee

tandard s ma* beunclear4haloe!!ect4centraltendenc* 4lenienc*4bias canbe

problems

BA5

6rovidesbehavior al‘anchors’

7 Accurac

Di!!iculttodevelop


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/eed@ack on "erformance(Hall, in Gilmore % .illiams, *)

■ Pur"ose- o "ro2ide an o""ortunit4 forcommunication @et1een managers and

em"lo4ees that s"ecificall4 addresses

"erformance issues$■ Methods-

◻ o" do1n feed@ack % u"1ard feed@ack E

unidirectional and hence fla1ed

◻ 0B degree is @est- feed@ack from su""liers,

customers, "eers, su@ordinates, su"er2isors

◻ Self a""raisal


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Managing "oor "erformance(Hall, in Gilmore % .illiams, *)

5m"lo4ee fails to "erform effecti2el4

In2estigation of reason for "oor "erformance

Address shortcomings E actions ma4 include-J&larif4 roleJSet o@=ecti2esJ5sta@lish monitoring meetings

Record issues discussed and action taken

If still no im"ro2ement

Procedures 1ithin disci"linar4 "olic4 1ill a""l4

Alternati2e courses of actionJ Address issues 2ia

Performance re2ie1J&onsider alternati2e

em"lo4ment


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5ffecti2eness of "erformance a""raisals(Hall, in Gilmore % .illiams, *)

■ &oncerns regarding◻ Cnintended conseuences @ecause of ina""ro"riate (and

undesira@le) em"lo4ee @eha2ior in attem"ting to achie2eo@=ecti2es

◻ Past reasons for current @eha2ior

◻ Duration @et1een a""raisals E annualF semi E annual, uarterl4 E1hat is too soon

◻ /eed@ack 2s$ Real encouragement and su""ort for good"erformance

■ Potential rating scale a""raisal "ro@lems (Dessler, 9)-

◻ Cnclear standards◻ Halo effect- Influence of the rater>s general im"ression a@out ratee◻ &entral tendenc4- endenc4 of su"er2isors to rate all su@ordinates

in the middle of the rating scale◻ 'enienc4 or strictness◻

#ias


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A""raising "erformance (Dessler, 9)■ Make sure 4ou kno1 1hat 4ou mean @4 successful "erformance>$

&onduct =o@ anal4sis to esta@lish the criteria and standards■ Incor"orate these criteria and standards into a rating instrument

(#ARS, gra"hic rating scale, etc$■ &ommunicate "erformance standards to em"lo4ees and to those

rating them, in 1riting

■ .hen using gra"hic rating scales, a2oid a@stract trait names suchas lo4alt4> or honest4> unless 4ou can define them in terms ofo@ser2a@le @eha2iors

■ Cse su@=ecti2e su"er2isor4 ratings (e$g$ essa4s) as onl4 onecom"onent of the o2erall a""raisal "rocess

■ rain su"er2isors to use the rating instrument "ro"erl4$ Gi2einstructions on ho1 to a""l4 "erformance a""raisal standards1hen making =udgments % "ro2ide 1ritten instructions for usingthe rating scales$

■ Allo1 a""raisers su@stantial dail4 contact 1ith the em"lo4ees the4are e2aluating


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A""raising "erformance (&ontd$) (Dessler, 9)■

#ase 4our a""raisals on se"arate ratings for each dimensionof the =o@ "erformance instead of using a single o2erall ratingof =o@ "erformance

■ .hene2er "ossi@le, ha2e more than one a""raiser conductthe a""raisal, and conduct all such a""raisals inde"endentl4

■ :ne a""raiser should ne2er ha2e a@solute authorit4 todetermine a "ersonnel action■ 5m"lo4ees should ha2e the o""ortunit4 to re2ie1 and make

comments, 1ritten or 2irtual a@out their a""raisals @eforethe4 @ecome final, and should ha2e a formal a""eals "rocess

through 1hich to a""eal their ratings■ Document all information and reasons @earing on an4"ersonal decision

■ .here a""ro"riate, "ro2ide correcti2e guidance to assist "oor"erformers in im"ro2ing "erformance


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A""raisal inter2ie1s (Dessler, 9)

■ Discussion after the a""raisal @et1eensu"er2isor and su@ordinate to re2ie1 the

a""raisal and make "lans to remed4

deficiencies and reinforce strengths■ 4"es of a""raisal inter2ie1s-

◻ Satisfactor4 8 Promota@le

◻ Satisfactor4 8 +ot "romota@le

◻ Cnsatisfactor4 @ut correcta@le

◻ Cnsatisfactor4 and uncorrecta@le


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Ho1 to conduct the a""raisal inter2ie1(Dessler, 9)

■ &onducting the inter2ie1◻ alk in terms of o@=ecti2e 1ork data◻ Don>t get "ersonal◻ 5ncourage the "erson to talk◻ Don>t ti"toe around

■ Ho1 to handle a defensi2e su@ordinate-

◻ Recogni


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5ffecti2e "erformance feed@ack inter2ie1s(&ascio, 0)

■#efore the inter2ie1-◻&ommunicate freuentl4◻Get training in "erformance a""raisal

inter2ie1ing◻Plan to use a "ro@lem sol2ing a""roach

rather than Ktell and sellL

◻5ncourage su@ordinates to "re"are for"erformance feed@ack inter2ie1s


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5ffecti2e "erformance feed@ack inter2ie1s (&ontd)(&ascio, 0)

■ During the a""raisal inter2ie1-◻ 5ncourage su@ordinates to "artici"ate◻ 3udge "erformance, not "ersonalit4 and mannerisms◻ #e s"ecific◻ #e an acti2e listener-

■ ake the time to listen E hold all "hone calls and do not allo1 interru"tions■ &ommunicate 2er@all4 and non82er@all4 that 4ou genuinel4 1ant to hel"■ As the su@ordinate @egins to tell his or her side of the stor4, do not interru"t

and do not argue■ .atch for 2er@al as 1ell as non2er@al cues regarding the su@ordinate>s

agreement or disagreement 1ith 4our message■ Summari


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5ffecti2e "erformance feed@ack

inter2ie1s (&ontd)(&ascio, 0)

■ After the a""raisal inter2ie1◻ &ommunicate freuentl4 a@out "erformance and

assess "rogress to1ards goals regularl4 @ecause-■ It hel"s kee" @eha2ior on target

■ It "ro2ides a @etter understanding of the reasons @ehind a

gi2en le2el of "erformance

■ It enhances the su@ordinate>s commitment to "erform

effecti2el4

◻ Make organi


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&ontem"orar4 issues in managing

"erformance(Hall, in Gilmore % .illiams, *)

■ Human ca"ital management- Management of

measura@le contri@ution @4 the "eo"le in the

organi


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managing performance.pptx

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