Managing Human Resources and Performance SESSION 3 MANAGING

Managing Human Resources and Performance SESSION 3 – MANAGING PERFORMANCE IN THE WORKPLACE

Last week we looked at Motivation Job satisfaction What we mean by ‘employee engagement’ High Performance Working What we mean by ‘job satisfaction’ How this links to performance

This week we will be considering some possible tools of Performance Management Appraisals 360 degree feedback Learning and development Objectives and performance standards Measurement Pay and reward

To start a reminder of what Performance Management might be. Source CIPD Strategic (broad issues, long term goals) Integrated (link with the business) Key areas: Performance improvement Development Behaviour

Performance Management, employees need to: Know and understand what is expected of them Have the skills and ability to deliver on those expectations Be supported by the organisation in developing the capacity to meet expectations Be given feedback on their performance Be able to discuss and contribute to their own and their teams objectives

As you may have anticipated, these are some of the tools that can be used. Appraisals 360 degree feedback Learning and development Objectives and performance standards Measurement Pay and reward

But first…. A pub quiz

What is the name of the author of the set text for this part of the module? Adam Smith offered four basic assumptions in economics, what were they? It was suggested that there are two pillars in Management, what were they? We discussed Leadership an identified two attributes, what were they? Performance management was identified as having three base perspectives, what were they?

You were asked to read an 18 page pamphlet on High Performance Organisations, what group created it? There was a cartoon animal on the front cover, what was it? How many people were pictured on the cover? What were they doing? 5 aspects of High Performance Working were identified, how many can you name? How many ‘hassles’ could you name when considering Job satisfaction? Name 3 motivational theorists We discussed 3 types of employee engagement, name them #

Appraisals Many organisations operate performance appraisals regularly, usually annually, during which an individual’s manager assesses performance, potential and development The perceived defects of traditional appraisal systems, often conducted on a top-down basis (and regarded by some line managers as irrelevant form-filling designed to ‘keep the personnel department happy’) has arguably driven the development of more rounded concepts of performance management and performance appraisal in recent years.

360 degree feedback An alternative approach to traditional appraisal arrangements based on line manager assessment is the use of 360 degree feedback. This system is a form of performance appraisal based on the collection of performance data from a number of sources, typically including people who report to the individual, peers (team colleagues or others in the organisation) and internal and external customers, in addition to the line manager.

Learning and development Employee development is a major route to improved organisational performance, which in turn requires an understanding of the processes and techniques of organisational, team and individual learning. Performance development reviews may be regarded as learning events, during which individuals can be encouraged to think about how and in which ways they want to develop. This can lead to the drawing up of a personal development plan (PDP) setting out the actions they propose to take (with the help of others, not least their managers) to meet their development needs. To keep learning and development discussions separate from reviews of performance linked to pay (with the aim of enhancing frankness), development reviews may be held at different times to the annual pay review date, for example, on the individual anniversary of joining an organisation.

Talent Management An emphasis on talent management has led many employers to align performance management to a drive to identify, nurture and retain employees whose capabilities make a disproportionate contribution to the organisation. Modern development programmes often reflect the needs of succession plans and seek to foster leadership skills. However, talent management focused on a select few may neglect wider development needs and every effort needs to be made to ensure that development reviews are inclusive, accessible and focused on developing organisational capability as a whole.

Objectives and performance standards Many organisations set performance objectives for individuals, departments and the organisation over a period of time. These can be expressed as targets to be met (such as sales levels) or as tasks to be completed by specified dates. They may be directly work-related, referring to results to be attained, or personal, taking the form of developmental objectives for individuals. Whatever their nature, objectives should relate to the overall purpose of the job, department and organisation. They should be agreed with the individuals or teams concerned, specific, observable and if possible, measured. Alongside objectives are performance standards. They are used when it is not possible to set time- or volume-based targets, or when there is a continuing objective that does not change significantly from one review period to the next and is a standing feature of the job. These should be spelled out in quantitative terms if possible, for example, meeting defined standards of accuracy.

Measurement For performance to be managed effectively, individuals must know the basis on which their performance will be measured. Measures should be transparent and applied fairly across the organisation. Ideally there should be a mix of individual and team measures, and measures relevant to both inputs and outputs. Measuring and monetising intangible assets such as people and relationships are difficult and rarely done convincingly.

Cognitive psychology and neuroscience research points to predictability being an important factor underlying motivation. For performance to be managed effectively, employees must know the basis on which their performance will be measured. Performance measures should be transparent and applied fairly across the organisation. They can focus on individuals or teams, and both inputs – for example, behaviours, competencies and applying new skills to the job – and outputs – for example, achievement of objectives and outstanding pieces of work.

Pay and reward here organisations have performance-related pay (PRP), this is often a principle component in performance management. PRP can be given in bonuses or pay rises and can be linked to individual, team or organisational performance. Proponents argue that PRP: is the most tangible and effective way to incentivise people in their work delivers a clear message that performance is important is the fairest way to reward performance.

Critics of PRP, by contrast, argue that: assessments of performance are usually subjective, so can create a sense of unfairness and erode motivation PRP leads to ‘short-termism’ and undermine the organisation’s purpose and mission individual PRP inhibits teamwork because of its competitive nature other factors – for example, autonomy, recognition and ad hoc awards – are more important in motivating employees. Performance may be used to help determine pay to varying degrees. For example, consolidated basic salary progression links to factors such as length of service, market rates and pay scales as well as (or instead of) performance.

Enough, enough – todays objectives How was your memory…… Appraisals 360 degree feedback Learning and development Objectives and performance standards Measurement Pay and reward

Next week. Changes in expectations for both the individuals involved and the organisations. A reflective approach to high- performance working Maybe another liddle test? ? ?