Human Recourse Management Performance Management and Appraisal Prof

Human Recourse Management Performance Management and Appraisal Prof. Kartashova L. V.

Performance Management and HRM Strategy

Performance Management and HRM System

LEARNING OBJECTIVES Performance Management and Appraisal 1. Define performance management and discuss how it differs from performance appraisal. 2. Describe the appraisal process. 3. Set effective performance appraisal standards. 4. Develop, evaluate, and administer at least 3 performance appraisal tools. 5. Explain and illustrate the problems to avoid in appraising performance. 6. Perform an effective appraisal interview.

Performance P= f (A × М × O)

Performance Management and Equity Theory (S. Adams) Perception • O/I < O’/I’ (being under rewarded) • O/I = O’/I’ (Equity) • O/I > O’/I’ (being over rewarded) ____________ O/I – represents the employee, O’/I’ - represents the relevant others

Performance Appraisal System Results When Who How What Why

Why Appraise Performance? There are five reasons to appraise subordinates performance. 1. First, most employers still base pay, promotion, and retention decisions on the employees appraisal. 2. Second, appraisals play a central role in the employers performance management process. 3. Third, the appraisal lets you to reinforce things the subordinate does right. 4. Fourth, appraisals should facilitate career planning. 5. Finally, supervisors use appraisals to identify employees training and development needs.

What to Assess What Results Behavior Perspectives

How to Assess? Objectives Goals Performance standards Hard Skills Soft Skills Employees Comparison

What is MBO? Linking to goal – setting theory Specific goals Participatively set For an explicit time period With feedback on goal progress

Management by Objectives • Some employers use management by objectives (MBO) as the primary appraisal method. • Others use it to supplement a graphic rating or other appraisal method. • Youcould engage in an informal MBO program with subordinates by jointly setting goals and periodically providing feedback. • However, MBO generally refers to a comprehensive and formal organization-wide goal setting and appraisal program. Here goals cascade down by level and department, from company-wide strategic goals to tactical day-to-day goals.

Goal Setting - SMART S MA R T -

Objectives

The Pareto Law 80: 20 • 3 -6 key tasks • Performance Standards ( not more than 250 words)

How to assess performance 1. Assign specific goals. Employees who receive specific goals usually perform better than those who do not. 2. Assign measurable goals. Put goals in quantitative terms and include target dates or deadlines. 3. Assign challenging but doable goals. Goals should be challenging, but not so difficult that they appear impossible or unrealistic. 4. Encourage participation.

How to Assess: Methods Objectives Goals Performance standards Hard Skills Soft Skills Employees Comparison

Critical Incident Method • With the critical incident method, the supervisor keeps a log of positive and negative examples (critical incidents) of a subordinates work-related behavior. • Every 6 months or so, supervisor and subordinate meet to discuss the latters performance, using the incidents as examples. • Compiling incidents is useful. It provides examples of good and poor performance the supervisor can use to explain the persons rating.

Graphic Rating Scale Method • The graphic rating scale is the simplest and most popular method for appraising performance. • A graphic rating scale lists traits or performance dimensions (such as communication or teamwork ) and a range of performance values (from below expectations to role model or unsatisfactory to outstanding, ) for each trait.

How to Assess: Methods Objectives Goals Performance standards Hard Skills Soft Skills Employees Comparison

Alternation Ranking Method • Alternation Ranking Method Ranking employees from best to worst on a trait or traits is another option. • Since it is usually easier to distinguish between the worst and best employees, an alternation ranking method is most popular. • Choose the next highest and the next lowest, alternating between highest and lowest until all employees have been ranked

Paired Comparison Method The paired comparison method helps make the ranking method more precise. For every trait (quantity of work, quality of work, and so on), you pair and compare every subordinate with every other subordinate. Suppose you have five employees to rate. In the paired comparison method, you make a chart of all possible pairs of employees for each trait. Then, for each trait, indicate who is the better employee of the pair.

Who Should Do the Appraising? • PEER APPRAISALS • RATING COMMITTEES • SELF-RATINGS • APPRAISAL BY SUBORDINATES • 360 -DEGREE FEEDBACK

Philip Morris: PMI 360ᵒ Review • Competency Model • Assessment • Feedback

PM - 360 PM Competency Model • • • Integrity Interpersonal Understanding Creative Thinking Analytical & Learning Capability Teamwork Customer Orientation Coaching and Leading others Achievement Orientation Vision and Strategy Communication and Influence

Philip Morris PMI 360ᵒ - Assessment Who? • Yourself • Boss • Direct Reports • Pears/Internal customers

Example

360 PM Feedback Video

Feedback : Video

Electronic Performance Monitoring • Electronic performance monitoring (EPM) systems use computer network technology to allow managers to monitor their employees computers. • They thus allow managers to monitor the employees rate, accuracy, and time spent working online. • EPM can improve productivity. • Researchers conclude that Electronic Performance Monitoring (EPM) represents the future of performance feedback where supervisors can electronically monitor the amount and quality of work an employee is producing • But EPM seems to raise employee stress.

DEALING WITH APPRAISAL PROBLEMS AND INTERVIEWS • UNCLEAR STANDARDS • HALO EFFECT • CENTRAL TENDENCY • BIAS

Guidelines for Effective Appraisals • KNOW THE PERFORMANCE APPRAISAL PROBLEMS • USE THE RIGHT APPRAISAL TOOL • KEEP A DIARY • GET AGREEMENT ON A PLAN • ENSURE FAIRNESS

Checklist of Best Practices for Administering Fair Performance Appraisals • • • Base the performance review on duties and standards from a job analysis. Try to base the performance review on observable job behaviors or objective performance data. Make it clear ahead of time what your performance expectations are. Use a standardized performance review procedure for all employees. Make sure whoever conducts the reviews has frequent opportunities to observe the employees job performance. Include an appeals mechanism. Document the appraisal review process and results. Discuss the appraisal results with the employee. Indicate what the employee needs to do to improve. Train the supervisors who will be doing the appraisals. Make sure they understand the procedure to use, how problems arise, and how to deal with them.

Managing the Appraisal Interview • Talk in terms of objective work data • Don t get personal. • Encourage the person to talk. • Get agreement

Performance Management vs. Performance Appraisal • First, performance management never means just meeting with a subordinate once or twice a year to review your performance. It means continuous, daily, or weekly interactions and feedback to ensure continuous improvement. • Second, performance management is always goal-directed. The continuing performance reviews always involve comparing the employee or teams performance against goals that specifically stem from and link to the strategic goals: each employees goals must be aligned with departmental and company goals. • Third, performance management means continuously reevaluating and modifying how the employee and team get their work done. Depending on the issue, this may mean additional training, changing work procedures. • Furthermore, performance management systems increasingly use information technology to help managers automatically track employee performance and take immediate corrective action as required.

TALENT MANAGEMENT PRACTICES AND EMPLOYEE APPRAISAL 1. Identifying the workforce profiles (competencies, knowledge, traits, and experiences) that the firm needs to achieve its strategic goals; 2. Consciously thinking through all the tasks (recruiting and so on) required for managing the talent; 3. Consistently using the same profile formulating recruitment plans for the employee as you do for making the selection, training, appraisal, and payment decisions; 4. Actively managing different employees recruitment, selection, development, and rewards; 5. Integrating the underlying talent management activities (planning for, recruiting, developing, appraising, and compensating employees).

“Executive coaching” Ernst & Young • Assimilation coaching. • Performance coaching • Competency coaching • Team coaching • Career and life balance coaching

CHAPTER SECTION SUMMARIES • Before appraising performance, managers should understand certain basic concepts in performance management and appraisal • There a lot of effective techniques managers use for appraising performance. • Many supervisors find appraisals difficult to administer, and its important to understand how to deal with performance appraisal problems. • The supervisor needs to keep several points in mind during the appraisal interview. Preparation is essential, talk in terms of objective work, don’t get personal, encourage the person to talk, and get agreement on how things will be improved. Minimize defensive reactions, for instance, by avoiding attacking the employee s defenses. Criticize objectively, in private, and constructively. • More employers are moving from traditional performance appraisals to performance management. Performance management is the continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with the organizations goals.

DISCUSSION QUESTIONS 1. What is the purpose of a performance appraisal? 2. Discuss performance appraisal tools. 3. Explain the problems to be avoided in appraising performance. 4. Compare and contrast performance management and performance appraisal.

INDIVIDUAL AND GROUP ACTIVITIES • Working individually or in groups, develop, over the period of a week, a set of critical incidents covering the classroom performance of one of your instructors. • Working individually or in groups, develop, over the period of a week, a set of critical incidents covering the classroom performance of students.

EXPERIENTIAL EXERCISE: Grading the Professor • Purpose: The purpose of this exercise is to give you practice in developing and using a performance appraisal form. • Required Understanding: You are going to develop a performance appraisal form for an instructor and should therefore be thoroughly familiar with the discussion of performance appraisals in this chapter. • How to Set Up the Exercise/Instructions: Divide the class into groups of four or five students. • Develop its own tool for appraising the performance of an instructor. Decide which of the appraisal tools (graphic rating scales, alternation ranking, and so on) you are going to use, and then design the instrument itself. • Next, have a spokesperson from each group post his or her groups appraisal tool on the board • The class should select the top 10 factors from all of the appraisal tools presented to create what the class perceives to be the most effective tool for appraising the performance of the instructor.

For Reading • GARY DESSLER. HUMAN RESOURCE MANAGEMENT ( FLORIDA INTERNATIONAL UNIVERSITY). Pearson 13 /16 EDITION. Ch. Performance Management and Appraisal https: //www. pdfdrive. com/human-resource-management-13 th-edition-by-gary-desslere 42361023. html • Л. В. Карташова “Управление человеческими ресурсами” М. Инфра-М, 2017, 2018 • Why Employee Performance Appraisal Doesn't Work/ The Traditional Performance Appraisal Process Is Demeaning and Hurtful https: //www. thebalancecareers. com/performance-appraisals-dont-work-1918846 • What Is a 360 Review in the Workplace? https: //www. thebalancecareers. com/what-is-a 360 -review-1917541 • Why You Should Use an Employee Self-Evaluation? https: //www. thebalancecareers. com/use-an-employee-self-evaluation-1918856

For Reading www HRM. Ru www HR-life. ru www. hrzone. co. uk www. cipd. co. uk http: //www. hays. ru/