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Chapter 7_Managing Employee Engagement and Performance.docx

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Department
Commerce
Course
COMMERCE 2BC3
Professor
Frances Tuer
Semester
Fall

Description
Chapter 7—Managing Employee Engagement and Performance INTRODUCTION  This chapter will focus on what managers can do to increase engagement among employees, thus influencing them to stay with the organization o They want to avoid voluntary turnover which is turnover initiated by employees (often whom the company would prefer to keep) o They also need to dismiss employees who are counterproductive through a process known as involuntary turnover which is turnover initiated by the organization (often among people who wish to stay) DRIVING ENGAGEMENT: PREVENING VOLUNTARY TURNOVER  The cost of hiring new employees is high, so it is important for managers to make workers want to stay (often done through increasing their job satisfaction)  We will now discuss what aspects of job satisfaction seem most critical for retention and how employee feedback surveys can be used to strategically manage engagement and prevention of voluntary turnover Process of Job Withdrawal  Job withdrawal is a set of behaviours that dissatisfied individuals enact to avoid the work situation; these behaviours can be grouped into three categories:  Progression of withdrawal is a theory that states dissatisfied individuals enact a set of behaviours in succession to avoid their work situation; these behaviours are as follows: o 1. Behaviour change (the employee tries to change their dissatisfaction by changing how they actthey will usually talk to a manager) o 2. Physical job withdrawal (this means the employee leaves the jobthey either go to a new job, stop showing up, get replaced, quit altogether, etc.) o 3. Psychological job withdrawal (the employee might still physically be working at the job, but their mind is elsewherethey become uncommitted)  These three happen in order! Job Satisfaction and Job Withdrawal  The key reason behind an employee leaving their job is job dissatisfaction o This is the opposite of job satisfaction which is a pleasurable feeling that results from the perception that one’s job fulfills or allows for the fulfillment of one’s important job values; there are three important elements to this definition:  1. Values: what an individual consciously or unconsciously desires to obtain  2. Different employees value different things  3. Different employees perceive things differently Sources of Job Dissatisfaction  Sources of job satisfaction/dissatisfaction are different between organizations, but there are some key areas: o Safe working conditions: both legal and non legal requirements that help/hinder an employee’s safety o Pay and benefits: pay provides an indicator of status in an organization, reflects self-worth, and is a primary source of income o Supervisors and co-workers: both of these people can greatly affect your working conditions o Tasks and roles: what are you doing? How are you doing it?  Job enrichment increases job complexity and is the process of enriching jobs that are boring, repetitive, or low in scope through interventions such as ensuring workers have opportunities for input into important organizational decisions involving their work  Also includes job rotation and flexible scheduling o Prosocial motivation refers to the degree to which people are energized to do their jobs because it helps other people  This helps a lot with job satisfaction and motivation Employee Engagement Surveys  Employee survey research should be a part of any organization for a number of reasons: o 1. Allows employers to monitor trends over time and thus prevent problems in the area of voluntary turnover before they happen o 2. They provide a means of empirically assessing the impact of changes in policy or personnel on worker attitudes o 3. Allows the company to compare itself with other companies who implemented a similar survey  If voluntary turnover does occur, the organization is encouraged to conduct an exit interview to obtain information on why the employee left and use that information to prevent similar situations in the future MANAGING PERFORMANCE  Performance appraisals were originally seen as the way to manage employee performance o These were viewed as being manipulative, biased, abusive, autocratic, and counterproductive however  Performance appraisals are only one part of the broader process of performance management  Performance management is the means through which managers ensure that employees’ activities and outputs are congruent with the organization’s goals o Effective ones have three parts:  Defining performance (done through job analysis)  Measuring performance (through performance appraisals which is the process through which an organization gets information on how well an employee is doing on his or her job)  Providing feedback (performance feedback is the process of providing employees information regarding their performance effectiveness)  Now we will look at a variety of approaches to performance management AN ORGANIZATIONAL MODEL OF PERFORMANCE MANAGEMENT  Refer to the model on page 265 (figure 7.2) for a performance management model o The basis of it states that:  Individual attributes (skills and abilities) lead to individual behaviours, which leads to objective results • These are governed and surrounded by the organizations’ strategy (goals and values) and situational constraints (culture and the economy)  Performance Planning and Evaluation (PPE) Systems are systems that seek to tie the formal performance appraisal process to the company’s strategies by specifying at the beginning of the evaluation period the types and level of performance that must be accomplished in order to achieve the strategy PURPOSES OF PERFORMANCE MANAGEMENT  There are three purposes to performance managements: o 1. Strategic: the performance management system must link employee activities with the organization’s goals o 2. Administrative: help in deciding on salaries, promotion, layoffs, and recognition of performance o 3. Developmental: performance management can also help people who are ineffective at their job by providing them with feedback PERFORMANCE MEASURES CRITERIA  Once the company has determined through job analysis what kind of performance it expects from their employees, they can develop ways to measure performance  There are five essential criterion that are important when evaluating performance management systems: o 1. Strategic congruence: the extent to which the performance management system elicits job performance that is consistent with the organization’s strategy, goals, and culture o 2. Validity: the extent to which a performance measure assesses all the relevant —and only the relevant—aspects of job performance o 3. Reliability: the consistency of a performance measure; the degree to which a performance measure is free from random error (interrater reliability: how consistent the rater is; test-retest reliability: how close are original results to results if another test is done) o 4. Acceptability: the extent to which a performance measure is deemed o be satisfactory or adequate by those who use it o 5. Specificity: the extent to which a performance measure gives detailed guidance to employees about what is expected of them and how they can meet these expectations APPROACHES TO MEASURING PERFORMANCE  There are four types of approaches to measuring and managing performance: the comparative, attribute, behavioural, and results approaches  Let’s talk about these below The Comparative Approach  The comparative approach to performance measurement requires the rater to compare an individual’s performance to that of others o Includes ranking, forced distribution, and paired comparison—let’s talk about these is detail now Ranking  Simple ranking: requires managers to rank employees within their departments from highest performer to poorest performer (best to worst)  Alternation ranking: consists of a manager looking at a master list of all employees, deciding who is the best employee, and placing that person as number one on a new (blank) list that will eventually list all employees from highest to lowest performer o The next step is to choose the worst employee, then the second best, then second worst, etc. Forced Distribution  Forced distribution method also uses ranking, but employees are ranked into groups  Managers must have a certain percentage of employees in each predetermined category o Even if all employees are above-average performers, some are still at the bottom and are forced to be listed as ‘not acceptable’  Helps in determining what people get promotions and what people need to be helped or fired Paired Comparison  The paired comparison method requires managers to compare every employee with every other employee in the work group—you give the employee a score of 1 every time they are considered to be a better performer than who they are compared to o This score is totaled and is known as the employee’s performance score The Attribute Approach  The attribute approach to performance focuses on the extent to which individuals have certain attributes believed desirable for the company’s success Graphic Rating Scales  This is the most common attribute approach  In this scale, the manager considers one employee at a time and circles the number (often 1-5) that signifies how much of that trait an individual has The Behavioural Approach  This approach attempts to define the behaviours an employee must exhibit to be effective in the job  There are three techniques that rely on the behavioural approach Critical Incidents  The critical incidents techniques requires managers to keep a record of specific examples of effective and ineffective performance on the part of each employee o They give feedback to employees about what they do well and what they do poorly Behaviorally Anchored Rating Scales  A behaviorally anchored rating scale (BARS) builds on the critical incidents technique and is designed to specifically define performance dimensions by developing behavioral anchors associated with different levels of performance o You first gather a large number of critical incidents; you then classify these incidents into performance dimensions, and these are used as ‘anchors’ (behavioural examples) to guide the rater in rating an employee’s performance along each dimension Assessment Centres  This was discussed in chapter 6—they can also be used for measuring managerial performance o At assessment centres, individuals perform a number of simulated tasks, and assessors observe the indiv
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