Transcript Performance Management

Performance Management
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Performance Management – Learning
By the end of this unit you should be able to:
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Explain what is meant by performance management
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Describe the process of performance management
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Critically evaluate the appraisal process
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Explain what is meant by an appraisal interview and describe it’s
benefits and drawbacks to the organisation, the manager and the
employee
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Describe 3 performance appraisal techniques
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Evaluate the 360 degree feedback method of appraisal
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Describe three interview styles associated with appraisal
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Describe the key actions required to conduct an effective appraisal
interview
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Discuss the ethical dilemmas associated with performance appraisal
10. Describe 5 key errors associated with the appraisal process
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Summary of Key Headings
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Performance Management
Performance Appraisal
The Appraisal Interview
360 degree feedback
Ethical Dilemmas in appraisal
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Factor influencing performance
According to Sparrow & Hiltrop (1994) the use of PMS is on
the increase because of the following changes in the
workplace
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Delayering
Devolution of accountability & responsibility
Changing career & job expectations
Flexible working arrangements
Individuation
Competitive pressures
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Performance Appraisal
Measuring a person’s job performance against
predetermined work standards
versus
Performance Management
A strategic management technique that links
business objectives & strategies to individual
goals, actions, performance appraisal &
rewards thru a defined process. Incorporates
appraisal, training & development, rewards,
employee relations, individualism
(Sparrow & Hiltrop 1994)
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Objectives of Performance
Management Systems
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Motivating performance
Helping individuals develop their skills
Building a performance culture
Determining who should be promoted
Eliminating individuals who are poor
performers
• Helping implement business strategies
Performance Management
• Performance management is a management
process of linking individual, group and
organisation performance with the main
strategic mission and values
• It is an organisation-wide activity concerned
with the continuous assessment and review
of performance against pre-determined
strategic objectives
Principles of Performance
Management:
• Owned and driven by line managers
• Emphasis on shared goals and values
• Something that is developed
specifically and individually for the
particular company
• It should apply to all staff
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Read CIPD Factsheet:
Performance Management
1. What does the article mean when it says that
performance management should be
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Strategic
Integrated
About improvement
About development
2. What is the difference between an objective & a
performance standard? Give an example of each
from your own experience.
3. Explain what is meant by 360-degree feedback.
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Characteristics of GOOD P. Mgt System
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Tailored to the organisation
Support the culture
Support the mission
Defines the critical success factors
Clarifies the principal accountabilities
Enables systematic review of performance
Effective PRP system
Integrated approach
Philpott & Sheppard (1993)
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Characteristics of BAD P. Mgt System
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No clear objective
Departmental rivalry
Failure to meet objectives
Lack of clear accountabilities
Role ambiguity
Absence & turnover
Lack of training, development or career plans
Resistance
Loss of credibility
Philpott & Sheppard (1993)
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Criticisms of Performance Management
systems
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Form filling exercise
Company goals only
Means to set pay levels
Does not identify future potential in employees
Does not improve organisational performance
A HR thing!!
Dependent on your boss
The 3 objectives conflicting objectives
Subjective & unfair ratings
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How to overcome these criticisms
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Training
Involvement in design
‘Open’ system
Visibly owned by senior management
Ease administration
Follow up on appraisal actions
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Review Questions
1. Explain what performance management is
both in writing and diagrammatic format
2. What makes a good performance
management system?
3. What are the criticisms normally levelled
at Performance Management Systems?
4. How might you minimise these criticisms?
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Performance Appraisal
Systematic approach to
evaluating employee’s
performance, characteristics
or potential with a view to
assisting with decisions in a
wide range of areas such as
pay, promotion, employee
development, and motivation.
(Gunnigle and Flood 1990)
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Performance
Appraisal
v’s
• Imposed on managers
• Individual focus on
individual performance
• A beginning and an end
• Just one part of the
performance management
process
Performance
Management
• Owned and driven by line
managers (Armstrong
1995)
• Organisation focus
• Links individual , group
and organisational
performance
• Tied to the organisations
strategy
• Continuous and integrated
process
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Appraisal –
As an employee……….
As a manager …………
As the organisation…….
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Why Appraise??
Employer
• Assess the performance of
individuals
• Set individual objectives
• Assess how well objectives are
being attained
• Confirm what jobs/tasks are
actually being done
• Determine who should be
promoted/transferred
• Determine who needs training
• Assess who should be
considered for advancement
Employee
• A career development
exercise
• A way of assessing needs
and if organisation can
meet them
• To clarify job, duties etc.
• To identify own potential
and how to fulfill it
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(Hunt 1992)
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Perceived Benefits of P.A.
MANAGER
• Learn about employee now &
future
• Goal clarification
• Measuring work performance
• Motivate employee
• Clarification
COMPANY
• Succession planning
• Facilitate HRP
• Link business and individual
objectives
• Improve communications
overall
• Improve performance both
individual and organisational
Evenden & Anderson (1992)
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Perceived benefits for employee
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Receive feedback
Communicate views
Career options
Recognition
Training & development needs
Evenden & Anderson (1992)
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Performance Appraisal
3 principal objectives
1. To motivate staff and improve
performance thru objective & target
setting
2. To assess employee performance and
distributing pay
3. To identify training & development
needs as well as career aspirations
Fletcher (1993)
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Methods (techniques) of Appraisal
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*Rating
Ranking
Paired comparison
Critical incident
*Free form
*Performance or objective oriented systems
Assessment centre
Self-assessment
*360º feedback
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Rating
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Appraiser of appraise
Against predetermined scale
Uses a series of relatively standard headings
Often part of a results oriented schemes
/objectives based scheme
• Armstrong (1995)convenient but ignore the
complex set of variables that deter. Work
performance. Very subjective
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Rating continued
• Problems with consistency across managers
• Error of central tendency
• Forced distribution using the normal
distribution curve
• Or
• Forced choice technique
• BARS – Behaviourally anchored rating
scales
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Free form
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Completely unstructured
Allows for discretion
Can create many inconsistencies
Does not allow for effective comparisons
Some managers like structure
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Performance/Results/Objective Oriented
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MBO
Measured against previously agreed KRA’s
Jointly set
Manager must understand the employee’s job
Manager must be committed to observation,
feedback, target setting etc.
• Difficult in a job that is subject to a lot of variation
• Dificult in a job where you are very dependent on
other jobs
• Quantity versus quality issue
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360 º Feedback/Multi Rater Assessment
• Relatively new
• To give a multi dimensional overview of an
employee’s performance
• Structured questionnaires completed
anonymously
• Can be done on computer
• May require more training
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Article: Its time to appraise our
methods of appraisal
Questions
What are some of the criticisms of appraisal interviews?
What does the article say about how to improve appraisal?
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Difficulties with Appraisal
9 Common appraisal errors -Grote (1996)
1. Contrast effect
2. First impression
3. Halo/Horns
4. Similar to me
5. Central tendency
6. Negative & Positive skew
7. Attribution bias
8. Recency Effect
9. Stereotyping
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Difficulties with Appraisal
Hunt (1992)
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Poorly designed
Over-ambitious
Inadequately resourced
No training
No guidelines
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Difficulties with Appraisal
• Torrington & Hall (1995), Fletcher (1993)
conflicting purposes of PA
• Line manager sees it as a HR thing (Grint,,
1993, Torrington & Hall 1995)
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How to minimise these difficulties
4 Core Obligations of Management Longenecker & Ludwig (1990)
1. Sound procedure
2. Training
3. Top level support
4. Audit
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Types of Appraisal Interview
1. Tell and sell
2. Tell and listen
3. Problem solve
4. Contingency approach
(Norman Maier 1958)
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TASK
When would it be appropriate to use the
different types of approach to the appraisal
interview?
(Tips: think about the type of appraiser/appraisee, nature of
the business/organisation, availability of resources/time,
what the appraisal will be used for)
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Interview Format:
Introduction
General discussion, present level of success
The body
• Self-criticism
• Self-help
Conclusion
– Confirm decisions, commitments,
agreements, recommendations
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Effective Appraisal Interviews
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Start with purpose
Establish rapport
Main tasks and responsibility discussion
Focus on work targets and standards
Encourage self analysis
Career aspirations, training needs discussion
Manage expectations
Summary
Notes
Follow up
Evenden & Anderson (1992)
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Guidelines for the Appraisal Interview
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Emphasize positive aspects
Emphasize improvement
Privacy/Confidentiality
Regular basis
Criticisms: specific & constructive
Stay calm
Identify specific actions which need to be taken
Emphasize assistance
End by stressing the positive aspects of
performance
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Read article: A lovely audience
1. Pick out key points from the article, about
how to conduct the appraisal interview that
have not been discussed on the previous
slides.
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Extra Reading – all in Moodle!
• Chapter 8 in core text book
• CIPD Factsheets:
– Performance Management
– Performance Appraisal
– 360 degree feedback
• Class handouts/articles
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Typical Exam Questions
1. Discuss the characteristics of good and bad
performance management systems.
2. Outline the steps to be taken to ensure a
successful appraisal interview
3. “Performance management is the same as
performance appraisal.” Discuss.
4. Describe any three methods of appraisal.
5. Why is it important to manage & appraise
performance? Discuss this from the employer,
employee & company perspective.
6. Evaluate the effectiveness of the appraisal
interview in the context of performance
appraisal.
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Autumn Paper 04/05
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Discuss the characteristics of good and bad
performance management systems. (20 marks)
Describe THREE key errors associated with
appraisal interviewing.
(10 marks)
Summer Paper 04/05
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Explain what a performance management system
is.
(10 marks)
Discuss the criticisms of performance management
systems and what an organization can do to
overcome them.
(20 marks)
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