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Human Resource Management

Are your employees Aligned to your strategy

Probably not. Less than 7% know their part of the plan. Happy employees are not necessarily aligned employees

If employees do not know their part of the plan, They have no direction Meaning theyre disengaged and not focused

Contents
1 2 3 4 5 6
Major determinates in performance management

Three purposes of performance management systems

Five criteria for measuring the effectiveness

Compare methods for measuring performance

Types of rating errors / How to minimize them

Conduct an effective performance feedback

Introduction
 Performance management:
The process through which managers ensure that employees activities and outputs contribute to the organizations goals. Proactively managing and resourcing performance against agreed accountabilities and objectives The process and behaviours by which managers manage the performance of their people to deliver a highachieving organization Focusing employees tasks on the right things and doing them right. Aligning everyones individual goals to the goals of the organization

 This process requires:

Knowing what activities and outputs are desired Observing whether they occur
Providing feedback to help employees expectations
meet

Performance Management System Model


Performance Planning Establish and define Key responsibilities Objectives Expected outcomes Priorities Behavioral factors Development & Follow Up Identify interests and needs to enhance performance Establish training plan Review job description Identify new challenges Performance Monitoring Timely, relevant feedback Maintain log Mid-Year review Refine responsibilities/objectives Revisit priorities

Performance Appraisal Compile/review data Request self-appraisal Prepare draft appraisal Review with next-level supervisor Finalize appraisal Meet with employee
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Purposes of Performance Management


 Strategic Purpose: Means effective performance management helps the organization achieve its business objectives.  Administrative Purpose: Refers to the ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs.  Developmental Purpose: Means that it serves as a basis for developing employees knowledge and skills.

Essential Design Considerations


What does your organization do?
What goods or services are produced? What kinds of people do you hire? Can/Do you measure progress or achievement?

What does your organization value?


Individual contributions to the strategic plan? Quality of internal interactions? Nature and quality of external interactions?

What is level of organizational commitment?

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Criteria for Effective Performance Management:  Strategy Congruence:  Validity:  Reliability:  Acceptability:  Specificity:

Contamination and Deficiency

Methods for Measuring Performance

1. Making Comparisons

2. Rating Individuals - Attributes


Graphic Rating Scale:  Lists traits and provides a rating scale for each trait.  The employer uses the scale to indicate the extent to which an employee displays each trait. Mixed-Standard Scale:  Uses several statements describing each trait to produce a final score for that trait.

Simple Ranking
COMPETENCIES AND VALUES

JOB PROFILE

SELF EVALUATION

EVALUATION FROM APPRAISER 1

EVALUATION FROM APPRAISER 2

INTERMEDIATE REVIEW/S

1. Global evaluation of competencies and values in ACH 1.1. Team work 1.2. Organization and planning 1.3. Analysis of conflicts 1.4 Adaptability and flexibility 1.5 Motivation 1.6 Resistance to pressure 1.7 Results orientated 1.8 Efficient communication DEONTOLOGY- Living the values

3 2 2 3 4 3 4 3 3

3 2 4 3 3 3 2 4 3

2 3 2 3 4 3 3 2 3

2 3 3 4 3 2 3 2 4

2 3 3 4 4 3 3 2 3

Graphic Analysis:

competency level evaluated above job profile competency level evaluated below job profile

3. Behavioral
Critical-Incident Method:  Employees receive feedback about what they do well and what they do poorly and how they are helping the organization achieve its goals. Behaviorally Anchored Rating Scale (BARS) Behavioral Observation Scale (BOS) Organizational Behavior Modification (OBM)

4. Measuring Results
Management by Objectives (MBO):  People at each level of the organization set goals in a process that flows from top to bottom, so that all levels are contributing to the organizations overall goals.  These goals become the standards for evaluating each employees performance.  Feedback is important so that individuals know what they are doing well and what areas they may need to work on.

Measuring Results

Goals Last Period


EVALUATION SELF FROM JOB PROFILE EVALUATION APPRAISER 1 EVALUATION FROM APPRAISER 2

INTERMEDIATE REVIEW/S

Global evaluation last period Title objective 1


Specific value (from 1 to 100) Organization Plan 100 Equipment Report 100 Security Plan 100 80 Comments 85 Comments 75 Comments 85 Comments 80 Comments 70 Comments 80 Comments 80 Comments 75 Comments 80 Comments 80 Comments 75 Comments

Title objective 2
Specific value (from 1 to 100)

Title objective 3
Specific value (from 1 to 100)

OVERALL RESULT
OVERALL RESULT
SELF EVALUATION EVALUATION EVALUATION INTERMEDIATE FROM FROM REVIEW/S APPRAISER 1 APPRAISER 2

Overall result of the evaluation Conclusions (summary of main achievements, strengths, weaknesses and potential of the employee) Professional career aspirations (future projects, goals, countries, contexts) Recommendation to form part of the S-MIND(Senior Management Identification and Development Program) Additional comments (e.g bottom-up feedback or for other areas of the organization)

A,B,C,D,E

A,B,C,D,E

A,B,C,D,E

A,B,C,D,E

A- Excellent, largely exceeds the goals set B- Good, achieves all or most of the goals set

Comments

Comments

Comments

Comments

C- Improvement required, many goals were not reached D- Inadequate, failed to achieve the goals set.

Comments

Comments

Comments

Comments

Comments

Comments

Comments

Comments

Comments

Comments

Comments

Comments

5. Measuring Quality
 The principles of total quality management (TQM), provide methods for performance measurement and management.  With TQM, performance measurement combines measurements of attributes and results.
 Subjective feedback  Statistical quality control

Sources of Performance Information


 360-Degree Performance Appraisal: performance measurement that combines information from the employees:
    

Managers Peers Subordinates Self Customers

Types of Rating Errors


 Contrast errors: The rater compares an
individual, not against an objective standard, but against other employees.

 Distributional errors: The rater tends to use only


one part of a rating scale.  Leniency: the reviewer rates everyone near the top  Strictness: the rater favors lower rankings  Central tendency: the rater puts everyone near the middle of the scale

Types of Rating Errors


 Rater bias: Raters often let their opinion of one
quality color their opinion of others.  Halo error: when the bias is in a favorable direction. This can mistakenly tell employees they dont need to improve in any area.  Horns error: when the bias involves negative ratings. This can cause employees to feel frustrated and defensive.

Merits vs. Demerits


Evaluates methods applied to achieve targets Reveals strengths and weaknesses in management style Forces inflexible managers to initiate self change Create an atmosphere of teamwork and improvement Unearth truths about organizational culture and ambience Ignores performance in terms of reaching goals Colleagues responses tend to be biased Assesses deny the truth of negative feedback The system can be used to humiliate people Linking findings to rewards can prove to be unfair

Giving Performance Feedback


Conducting the Feedback Session
During the feedback session, managers can take any of three approaches: 1. Tell-and-Sell managers tell employees their ratings and then justify those ratings. 2. Tell-and-Listen managers tell employees their ratings and then let the employees explain their side of the story. 3. Problem-Solving managers and employees work together to solve performance problems.


Improving Performance

Improving Performance

Improving Performance
 Talent management system
Finding the talents inside the company to provide special training and developing program for them.

 Goals next period


Defining goals for the next period on the basis of the current evaluation, ability and motivation.

 Training needs
Involves one-on-one contact with managers to ensure that proper training and development are taking place.

Team Performance
Setting objectives
Work objectives Team working objectives

Work plans Team performance reviews

Individual Performance
Select the goal Define expectations Define performance measures Plan Act Monitor Extend the process

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Development & Implementation


deals w/ the HOW

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Development & Implementation


Define objectives Decide on recipients Decide on who will give the feedback Decide areas of work/behaviour on which feedback to be given Decide on the method of collecting the data Decide on data analysis and presentation Plan the initial implementation programme Analyse the outcome of the pilot scheme Plan and implement the full programme Monitor and evaluate

Criteria For Success


Support of top management Commitment Basis for development Questionnaire Communication and training programmes No one feels threatened Bureaucracy

Summary
 Performance measures should fit with the organizations strategy by supporting its goals and culture.  The performance feedback discussion should focus on behavior and results rather than on personalities
 the points noted in criteria for success (slide 36) will be impt in the summary -- we can pick few key points e.g should be done w/ full mgt support; spirit behind is to improve performance than to criticize/threaten employees (well-owned process or participatory)

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Human Resource Management