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Presented by: Patrick Joseph Dela Cruz Kareen Fernandez Alvie Guarino Dezza Mohammad John Carlos Wee (absent)
Outline of Presentation
Performance Management
Definition Model Contextual Factors Goal Setting Management by Objectives Performance Appraisal Rewards Systems
Outline of Presentation
2.
Managing individual and group performance, and Managing development and assistance to organization members.
Performance Management
Performance Management
An integrated process of defining, assessing and reinforcing employee work behaviors and outcomes. Involves goal setting, performance appraisal and rewards systems that aligns member work behavior with business strategy, employee involvement, and workplace technology.
Reward Systems
Individual and Group Performance
Goal Setting
Employee Involvement
Performance Appraisal
Goal Setting
Describes the interaction between managers and employees in jointly defining member work behaviors and outcomes Specifies the kind ofs of performances that are desired. Involves managers and subordinates jointly establishing and clarifying employee goals.
2.
3. 4.
Organizational Developmental
MBO programs may go beyond manager and subordinate roles to address individuals, work groups, and to reconcile conflicts.
2.
3. 4. 5.
6.
Work group involvement Joint manager-subordinate goal setting Establishment of action plans for goals Establishment of criteria, or yardsticks, of success Review and recycle Maintenance of records
Performance Appraisal
A feedback system that involves the direct evaluation of individual or work group performance by a supervisor, manager or peers. Involves collecting and disseminating performance data to improve work outcomes.
Traditional
Organizational, legal Fragmented Supervisor or manager Passive recipient
High Involvement
Developmental Integrative Appraisee, co-
Subjective Objective and Measurement Concerned with validity subjective Period, fixed, Dynamic, timely,
Timing
administratively driven
employee- or workdriven
2.
3. 4. 5. 6.
Select the right people. Diagnose the current situation. Establish the systems purposes and objectives. Design the performance appraisal system. Experiment with implementation. Evaluate and monitor the system.
Reward Systems
Support goal setting and feedback systems by rewarding the kinds of behaviors required to implement a particular work design or support a business strategy. Provide the reinforcers to ensure that desired outcomes are repeated.
Person/job Based vs. Performance Based Internal Equity External Equity (Market Position) Hierarchy Centralization Rewards Mix Security Seniority
Posits that employees will expend effort to achieve performance goals that they believe will lead to outcomes that they value. The ability of rewards to motivate desired behavior depends on these factors:
Types of Rewards
Pay
Skill-based pay plans Performance-based pay systems link pay to performance Gain sharing involves paying bonuses based on improvements in the operating results
Promotions Benefits
The most traditional reward system where characteristics of a particular job are determined, and pay is made comparable to what other organizations pay for jobs of similar kind.
Steps
1. 2.
3. 4. 5.
Establish the skills needed for effective operations Identify the optimal skill profile and number of employees needed with each skill Price each skill and skill set Develop rules to sequence and acquire skills Develop methods to measure member skill acquisition.
Benefits:
They contribute to organizational effectiveness. They can lead to durable employee satisfaction.
Drawbacks:
The tendency to top-out the expense. The lack of performance contingency.
The organizational unit The manner of measuring performance Rewards for good performance
Individual Plan
Productivity Cost effectiveness Superiors rating 3 Productivity Cost effectiveness Superiors rating 2 Productivity Cost effectiveness
4 3 1 3 3 1 2 2
1 1 1 1 1 2 1 1
1 1 3 2 2 3 3 2
4 4
Group
4 4
Organizationwide
4 4
Individual Plan
Productivity Cost effectiveness Superiors rating 4 Productivity Cost effectiveness Superiors rating 3 Productivity Cost effectiveness Profit
5 4 2 4 3 1 3 3 2
3 2 1 1 1 3 1 1 1
1 1 2 3 3 3 3 3 3
2 2
Group
3 3
Organizationwide
4 4 3
Gain-Sharing Systems
Involves paying employees a bonus based on improvement in the operating results of an organization. Design elements:
Process of design Organizational unit covered Bonus formula Sharing process Frequency of bonus Change management The participative system
Gain-Sharing Plans
Major gain-sharing plans most often used:
The Scanlon plan The Rucker plan Improshare
Promotion Systems
Most decisions about promotions and job movements are made in a top-down, closed manner
Career Stages
Establishment Stage (ages 21-26) Advancement Stage (ages 26-40) Maintenance Stage (ages 40-60) Withdrawal Stage (age 60 and above)
Career Planning
Involves setting individual career objectives. Highly personalized and generally includes:
Assessing ones interests, capabilities, values and goals; Assessing alternative careers; Making decisions that may affect the current job; and Planning how to progress in the desired direction
Advancement Am I advancing as expected? What long-term options are available? How do I become more effective and efficient?
Maintenance Withdrawal How do I help others? Should I reassess and redirect my career? What are my interests outside of work? Will I be financially secure? What retirement options are available to me?
Ways to help people perform and develop Ways to prepare for satisfying retirement
Retirement
ROLE AND STRUCTURE INTERVENTIONS Realistic job Establishment preview Maintenance Advancement To provide members with an accurate expectation of work requirements
Reduce
ROLE AND STRUCTURE INTERVENTIONS Job rotation Establishment and Advancement challenging Maintenance assignments To provide members interesting work assignments leading to career objective
Reduce
turnover Build organizational knowledge Increase job satisfaction Maintain member motivation
CAREER STAGE
PURPOSE
INTENDED OUTCOMES
ROLE AND STRUCTURE INTERVENTIONS Maintenance Withdrawal To help members fill productive roles later in their careers
Increase
CAREER STAGE
PURPOSE
INTENDED OUTCOMES
ROLE AND STRUCTURE INTERVENTIONS Withdrawal To assist members in moving into retirement
Increase
CAREER STAGE
PURPOSE
INTENDED OUTCOMES
INDIVIDUAL EMPLOYEE DEVELOPMENT Establishment Advancement Maintenance Withdrawal To select and develop members for managerial and technical jobs
Increase
CAREER STAGE
PURPOSE
INTENDED OUTCOMES
INDIVIDUAL EMPLOYEE DEVELOPMENT Establishment Advancement Maintenance To link a lessexperienced member with a moreexperienced member for member development
Increase
job satisfaction Increase member motivation Increase diversity in upper management and leadership
CAREER STAGE
PURPOSE
INTENDED OUTCOMES
INDIVIDUAL EMPLOYEE DEVELOPMENT Establishment Advancement Maintenance Withdrawal To provide Increase education and organizational training capacity opportunities that help members achieve career goals
PERFORMANCE FEEDBACK & COACHING Establishment Advancement Maintenance Withdrawal To provide members with knowledge about their career progress and work effectiveness
Increase
WORK LIFE BALANCE Establishment Advancement Maintenance Withdrawal To help members balance work and personal goals
Improve
quality of life Increase productivity & morale Increase orgabizational commitment Decrease absenteeism
Strategic Responses
Implementation
Workforce Differences
Age Gender Disability Culture and Values Sexual Orientation
INTERVENTIONS
Wellness
INTERVENTIONS
Job
of
Child
INTERVENTIONS
Performance
number of Job challenge people with Job skills disabilities Physical space entering the Respect and workforce is dignity increasing
INTERVENTIONS
Career
INTERVENTIONS
Equal
Refers to the reaction of people to their environment (change/adjustment of behavior) brought about by physical and psychological responses to environmental conditions.
well-being/wellness
Comprises the various life/non-work satisfactions enjoyed by individuals, wok/job-related satisfactions, and general health.
Stress
Consequences
Subjective:
anxiety, apathy
Behavioral: drug and alcohol abuse Cognitive: poor focus, burnout Physiological: high blood pressure and pulse Organizational: low productivity, absenteeism, legal action
Individual Differences
Cognitive/Affective:
Type A or B, hardiness, social support, negative affectivity
Biologic/ Demographic:
Role Clarification
Supportive relationships