perfomance management shrm
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PERFOMANCE MANAGEMENT AND DEVELOPMENT SYSTEM
ADNAN MURTAZA
“WHY PERFORMANCE MANAGEMENT AND DEVELOPMENT SYSTEM ARE IMPORTANT IN AN ORGANISATION IN REFERENCE TO” SHRM”.
CONTENTS Introduction of Performance Management.Objective of performance management system.Development of PMS.Problems while dealing with performance management.Effective performance management system.Development in performance management.Technology and its impact on performance management.Strategic linkage of performance management.
Introduction
To survive it is very important to be successful and to be successful is very important to have competitive advantages with the most effective and efficient utilization of resources .Since human resources are the most valuable and unique , the only way to measure it is through their performance.As performance refers to what a person does or does not do on the job or task while accomplishing the target.Several terms are used as performance assessment, performance appraisal, performance evolution and performance management.
Comparison Of Performance Management & Performance Appraisal
Characteristics Performance Mgt.
Performance Appraisal
Types of objectives. Emphasis on integrating organizational , team , & individual objectives.
Individual Objectives.
Types of performance measures.
Competency requirements as well as quantified measures.
Qualitative & Quantitative.
Frequency. Continuous review with one or more formal reviews in a year.
Annual appraisal.
Rating system. Joint or participative process , ratings less common.
Top-down system.
Comparison Of Performance Mgt. & Performance Appraisal
Characteristics Performance Mgt. Performance App.
Reward linkage. Does not have direct link to reward.
Often linked to pay.
Ownership. Owned by line management. Owned by human resource department.
Corporate alignment. Integrated business-driven system aimed at organizational & people development.
Isolated system not linked to organizational goals.
Focus of performance reviews.
Future focused. Focus on past performance.
Questions asked. What can be done to help employees perform as effectively as possible?
How well was the work done?
Uses & Objectives Of Performance Management System
Objectives of
perform. Mgt. sys.
Human ResourcePlanning
Recruit.&
selection
Personn-el
Decisions
Career planning & dev.
Feedback , motivation
& developme
nt.
Training & dev.
Compensation & reward.
Internal employee relation
Classification Of Performance Management Objectives
Evaluative Objectives
•Validating selections.•Bonuses & incentives.•Promotions.•Salary increases.
Manager is a judge & makes reward decisions.
Classification Of Performance
Management Objectives
Development Objectives
•Feedback.•Motivation.•Training & development.•Career planning.•Human resource Planning.
Manager is a coach who helps in performance improvement.
Process Of Performance Management SystemSpecify organizational objectives.
Identify dimensions of job performance.
Define & communicate performance standards.
Determine who will conduct appraisal.
(sources)
Choose appropriate methods of performance
appraisal.
Conduct appraisal.
Communicate appraisals to employees(feedback).
Action Plans•Salary increases.•Promotions.•Training.•Career plans.
Types Of Performance Evaluation Criteria
Types of evaluation criteria.
Trait –based Behavior –based Result –based
Sources Of Appraisal Information
Sources of appraisal
information
Customer appraisal
App. By manager
or supervisor
Self-appraisal
Team appraisal
Peer appraisal
Subordinate
appraisal
Methods Of Performance Appraisal
Performance appraisal methods
Trait-based methods
•Graphic rating scales.•Forced-choice method.•Essay method.•Ranking method.•Forced-distribution method.
Behavior-based methods
•Critical-incident method.•Checklists.•Behaviorally anchored rating scales.
Results-based methods
•Productivity methods.•Management by objectives.
Communication Of Appraisal• A good performance management system is one
that allows the employee (appraise or rate) to participate & contribute in his/her own performance evaluation , in partnership with the manager (appraiser or rater).
Types Of Communication Of Appraisals:• One-way communication(tell & sell approach).• Two-way communication(tell & listen approach).• Mutual problem-solving.
Factors Leading To Problems In Performance Management System
due to
Problems in performance management
system.
Ambivalence towards performance evaluation on the part of appraisee.
Problem in design & implementation of performance management system
Rater biases & errors
Rate errors and biases
Rater errors
Varying. Standards.Recency effect.Primacy effect.Central tendency error.Leniency error.Strictness error.Personal bias error.
Rater bisaes
Halo effect.Contrast error.Similar to or different to me.Sampling error.
Characteristics of effective Performance Management
SystemSEPERATION OF EVALUATION & DEVELOPMENT APPRAISALE
USE OF JOB –RELATED PERFORMANCE
SPECIFYING PERFORMANCE STANDARDS FOR EACH CRITERIA
USING APPROPRITE PERFORMANCE DATA
UPWARD APPRAISALS
APPEAL PROCESS
USING MULTIPLE RATERS
IMPROVING SUPERIOR –SUBORDINATE RELATIONSHIP
TOP MGT .SUPPORT & FIT WITH ORGANIZATIONAL CULTURE
TRANING RATERS
PROVIDING ON GOIN G FEEDBACK
EFFECTIVE PERFORM
ANCE MGT.
SYSTEM
DEVELOPMENT IN PERFORMANCE MANAGEMENT SYSTEM.
Development performance mgt. system
Team or work group
appraisals
Multisource & 360 degree appraisals
Assessment Competency
based appraisals
Difference between assessment centres & development centres
Assessment Centers Development CentersUsed purely for selection purpose.Have a pass/ fail criteria.Focused on immediate need of the organizationHave fewer assessors than participants.Involve line managers as assessors.Focus on meeting organizational needs .Assessors take on role of judge.No departmental feedback or follow up with participants .Used with external candidates.
Primary purpose is development.Do not have a pass/ fail criteria.Focused on long term needs of the organization.1:14m ratio of assessor to participants.Do not involve line managers as assessors .Focus on candidates “s potential.Focus on meeting both individual and organizational needsAssessors take on role of facilitators.Provide development feedback & follow up to participants.Used with internal candidates.
Factors impacting 360 degree appraisal
Organizational cynicism. Purpose of appraisal. Anonymity. Acceptability Competency of appraisers. Competency – based performance management
system.
Approaches to measuring management performance.
1.HOLMES & JOYCE APPROACH :• Job – focused approach.• Person – focused approach .• Role – focused approach .2.HYBIRD APPROACH: It is mostly used in the IT – Based
industry where the approach is both past and future oriented and combines quantitative and qualitative assessments of performance.
Technological and performance management
Computer performance monitoring(CPM):Helps in collecting data such as error rates, time spent, number of work units completed etc.
Online Evaluation & Appraisal software: It is done for multi – rater or 360 degree feedback where the e –mail messages for evaluations.
Linkage between organization life cycle , competitive status, organizational strategy & hr strategy
Org. Life Cycle
Inception [start- up]
Growth
maturity
Competitive status of the firm.
Weak
Strong
Stable
Org. strategies
Value creation
Value accumulation
Value maintenance
Needed employee characteristic
•Innovative.•Risk - taking.Long – term orientation
•Flexibility •Co -operative
•Efficiency•Results with low level of risk
HR strategy
Focus on exploratory knowledge of employees
Focus on exploitative knowledge
Harvest strategy to maintain competitive status
Aligning performance mgt.
Qualitative methods
Quantitative methods
Qualitative methods
Strategic performance management system.
Identify competitive status of the firm.
Internal analysis of strengths and weaknesses of the organization.
Determine strategies.
•Setting corporate strategy.•Setting HR strategy.•Determine needed employee behaviors.
Align the performance management system.
•Define performance criteria.•Select the type of appraisal method.
Step 1 Step 2 Step 3
Thank you