What is Performance Management?
Continuous process of …
- Identifying
- Measuring
- Developing… the performance of individuals and teams
- Aligning performance with the strategic goals of the organization
Performance Management is the same as Performance Appraisal? (T/F)
False
What are the differences between PM and PA?
PM
- Strategic business considerations
- Driven by line manager
- Ongoing feedback
- So employee can improve performance
PA
- Driven by HR
- Assesses employee
- Strengths
- Weaknesses
- Once a year
- Lacks ongoing feedback
What are the Contributions of Performance Management for Employees?
Clarify definitions of:
- Job
- Success criteria
- Increase motivation to perform
- Increase self-esteem
- Enhance self-insight and development
What are the Contributions of Performance Management for Managers?
- Communicate supervisors’ views of performance more clearly
- Managers gain insight about subordinates
- Better and more timely differentiation between good and poor performers
- Employees become more competent
What are the Contributions of Performance Management for Organization/HR Function?
- Clarify organizational goals
- Facilitate organizational change
- Fairer, more appropriate administrative actions
- Better protection from lawsuits
What are the Disadvantages/Dangers of Poorly Implemented PM Systems for Employees?
- Lowered self-esteem
- Employee burnout and job dissatisfaction
- Damaged relationships
- Use of false or misleading information
What are the Disadvantages/Dangers of Poorly Implemented PM Systems for Managers?
- Increased turnover
- Decreased motivation to perform
- Unjustified demands on managers’ resources
- Varying and unfair standards and ratings
What are the Disadvantages/Dangers of Poorly Implemented PM Systems for Organization/HR Function?
- Wasted time and money
- Unclear ratings system
- Emerging biases
- Increased risk of litigation
Define Reward Systems.
Set of mechanisms for distributing…
- Tangible returns
- Intangible or relational returns
… as part of an employment relationship
What are tangible returns in the reward system?
- Cash compensation
- Base pay
- Cost-of-Living and Contingent Pay
- Incentives (short- and long-term)
Benefits such as: - Income Protection
- Allowances
- Work/life focus
What are Intangible Returns in the reward system?
Relational returns such as
- Recognition and status
- Employment security
- Challenging work
- Learning opportunities
What are the Returns and Their Degrees of Dependency on the Performance Management System?
- Low Dependency
- Cost of Living Adjustment
- Income Protection
- Moderate Dependency
- High Dependency
- Work/Life Focus
- Allowances
- Relational Returns
- Base Pay
- Contingent Pay
- Short-Term Incentives
- Long-Term Incentives
What are the 6 Purposes of PM Systems?
- Strategic
- Administrative
- Informational
- Developmental
- Organizational maintenance
- Documentation
What is the Strategic Purpose?
- Link individual goals with organization’s goals
- Communicate most crucial business strategic initiatives
What is the Administrative Purpose?
- Provide information for making decisions regarding:
- Salary adjustments
- Promotions
- Retention or termination
- Recognition of individual performance
- Layoffs
What is the Informational Purpose?
Communicate to employees:
- Expectations
- What is important
- How they are doing
- How to improve
What is the Developmental Purpose?
- Performance feedback/coaching
- Identification of individual strengths and weaknesses
- Identification of causes of performance deficiencies
- Tailor development of individual career path
What is the Organizational Maintenance Purpose?
- Plan effective workforce
- Assess future training needs
- Evaluate performance at organizational level
- Evaluate effectiveness of HR interventions
What is the Documentation Purpose?
- Validate selection instruments
- Document administrative decisions
- Help meet legal requirements
Name the 15 Characteristics of an ideal PM system.
- Strategically congruent
- Contextually congruent
- Thorough
- Practical
- Meaningful
- Specific
- Identifies effective and ineffective performance
- Reliable
- Valid
- Acceptable and fair
- Inclusive
- Open (No Secrets)
- Correctable
- Standardized
- Ethical
What is the difference between Strategically Congruent and Contextually Congruent?
Strategically Congruent
- Consistent with organization’s strategy
- Aligned with unit and organizational goals
Contextually Congruent
- Congruent with the organization’s culture as well as the broader cultural context of the region or country
- Example: A 360-degree feedback is not effective where communication is not fluid and hierarchies are rigid
What is the difference between Through and Practical?
Thorough
- All employees are evaluated
- All major job responsibilities are evaluated
- Evaluations cover performance for entire review period
- Feedback is given on both positive and negative performance
Practical
- Available
- Easy to use
- Acceptable to decision makers
- Benefits outweigh costs
Define Meaningful and Specific.
Meaningful
- Standards are important and relevant
- System measures ONLY what employee can control
- Results have consequences
- Evaluations occur regularly and at appropriate times
- System provides for continuing skill development of evaluators
Specific
- Concrete and detailed guidance to employees
- What’s expected
- How to meet the expectations
