Management of Performance W8

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Dilek Senturk
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Dilek Senturk
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Introduction • Performance management is a continuous cycle. • Establishing an effective performance review program that is valid, reliable and accepted at all levels is one of the many challenges facing HR professionals. • Vital strategic link between HRM and the organisational bottom line. • Long history. • The design and administration of the performance management system (PMS) is also one of the key points of tension between HR managers and supervisors.
Strategically-aligned performance management • Performance review is a three-step process: –effective design –implementation –measurement and feedback. • Gathering information is the first step. • Information needs to be evaluated in the context of organisational strategies and needs. • Outcomes need to be communicated.
Performance reviews and the performance management cycle • Individual level: –essential feedback for focused and sustained performance –can include training as well as growth –managers to help improve, not simply evaluate past performance.
Developing a performance Management System Communicating key performance expectations for employee positions Assessment of past performance Assessment of potential for promotion or transfer Improvement of motivation Strengthening of the relationship between employee and manager by bringing them together to discuss progress A means of obtaining feedback from employees Identification of key talent Identification of employee development needs Career and succession planning decisions Retention Reward system
Performance Review methods • Relative judgement methods (for example, individual behavioural rating scales). • Comparison methods, or results-oriented approaches (for example, goal-setting and the Balanced Scorecard). • Behavioural rating scales continue to be used despite their inherent subjectivity.
Peer review • Conducted by persons other than a supervisor. • Weaknesses: –peer ratings are simply a popularity contest –managers are reluctant to give up control of the review process –those receiving low ratings might retaliate against their peers –peers rely on stereotypes in ratings.
Self-review • Employees being asked to evaluate themselves on a self- assessment basis. • Work well when the supervisor and the employee jointly establish future performance goals or employee development plans. • Inappropriate where the performance assessment is linked directly to a pay outcome.
Upward review • Used in some instances to give team leaders and other managers feedback on how their people view them. • Less likely to be accepted in countries with national and organisational cultures in which there is a big power difference.
360-degree feedback • Also called ‘multi-source feedback’. • Attempt to gather work performance data about an employee from as many sources as possible. • Attractive because involving more than one person leads to a feedback process that is likely to be more meaningful for both the supervisor and the employee. • The organisation’s culture must be supportive of this type of strategy.
Results-based methods - Goal setting • Specific • Measurable • Attainable • Relevant • Time-bound
Why performance review programs fail? • Lack of top management support. • Lack of job-relatedness standards. • Rater bias. • Excessive paperwork. • Use of the program for conflicting purposes.
Improving performance • Reasons for ineffective performance –job-relevant knowledge and skills –personality traits, work values and work attitudes –work environment, the external environment and personal problems. • Managing ineffective performance: –identify likely main cause –negative feedback –action planning.
Employee counselling • In counselling, a relationship is established where one person endeavours to help another to understand and to resolve a problem, whether it be work-related or personal.
Employee discipline • ‘a genuine attempt to ensure that expected employee behaviour and performance are maintained to required organisational standards’.
The disciplinary model 1. organisation discipline policy 2. definition of discipline 3. investigation of employee offence 4. disciplinary interview 5. progressive discipline 6. due process 7. discharge
Undertaking disciplinary action • Four basic steps of action: 1. documentation of employee misconduct 2. theinvestigativeinterview 3. progressivediscipline 4. correction or dismissal.
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