MHR 523 Lecture Notes - Customer Satisfaction, Balanced Scorecard, Pointless

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Published on 18 Apr 2013
School
Ryerson University
Department
Human Resources
Course
MHR 523
March 14, 2013
Performance Management and Training and Development
Performance Management
Performance objectives
o Broader strategic objectives (e.g., high sales, customer satisfaction, low costs, etc.)
o Strategic objectives: high sales focus
o Customer satisfaction: happy customers
o Low costs: compete on low costs
Performance goals
o Specific desired targets (e.g., increase sales by 10%)
o Aiming for 90% customer satisfaction on surveys to improve customer services
Performance measurement
o Appropriate process in place to measure performance
o Most jobs don’t have numbers assosicated with their jobs
o We need to design measures to provide indicators of employee performance
Output measures
o Appropriate measures to assess performance
o Employees actual performance
o We use output measures we’ve already decided on
Outcome measures
o Compare output to performance goals
o Comparison between performance goals and actual output
Performance Management: how do we manage performance? What can we do to manage
performance?
Strategic Talent Management: how can we help employees perform to their full potential?
Performance Appraisals
Employees tend to be dissatisfied with the appraisal process
Appraisals are often viewed as an administrative burden
Doesn’t always mean higher pay
Good Appraisal
Increase scores of those who have done well
Admin burden
Lots of paperwork
Pointless if people are not rewarded/ punished after performance reviews
**************Uses of Performance Appraisal (name the HR function associated with it)
Performance improvement (performance management)
o How can performance be improved next year
Compensation adjustments (compensation)
o Depending on ranking after appraisal give associated % increase in pay
o Good performance results in pay increase
Placement decisions (human resource planning)
o Transfer, demotion, promotion
o Indicated good performance by appraisal and give performance scores
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Training & development needs (training and development)
o Employee needs to work on areas for training based on employee weakness indicated
on appraisal
Career planning & development (human resource planning)
o It is hard for employee to initiate a conversation about wanting to become a manager in
current place of employment. So when they are ready to be promoted, they often apply
for jobs in other organizations.
Identify deficiencies in staffing process (selection)
o Most employees are not performing well on certain criteria of job performance
Detect informational inaccuracies (job design)
o Look for consistency
Diagnose job design errors (job design)
Avoid discrimination (none)
o Probation period passes
o You back of your decision to let go of an employee solely based on bad performance
Uncover external challenges (none)
o Benefits packages
o Reasons for poor performance
Key Elements
Performance measures and criteria
Performance appraisal interview
o Supervisor can talk to employee about performance
Employee feedback
o You failed to meet expectations but here’s what you can do
Employee records and HR decisions
Human Performance
Appraisal Systems
Job-related
o System evaluates critical behaviours that constitute job success
o Related to job only
Practical
o Understood and relatively simple
o Easy to understand
Performance standards
o Relates to the desired results of each job (i.e., benchmarks)
o Set quotas for sales
Performance measures
o Reports on critical behaviours (i.e., actual ratings)
o Report on actual results
Rater Biases
1. Halo Effect
Using one information to generalize that person as a whole
2. Error of Central Tendency
Tend to stick around the middle
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Document Summary

Performance objectives: broader strategic objectives (e. g. , high sales, customer satisfaction, low costs, etc. , strategic objectives: high sales focus, customer satisfaction: happy customers, low costs: compete on low costs. Performance goals: specific desired targets (e. g. , increase sales by 10%, aiming for 90% customer satisfaction on surveys to improve customer services. Performance measurement: appropriate process in place to measure performance, most jobs don"t have numbers assosicated with their jobs, we need to design measures to provide indicators of employee performance. Output measures: appropriate measures to assess performance, employees actual performance, we use output measures we"ve already decided on. Outcome measures: compare output to performance goals, comparison between performance goals and actual output. Employees tend to be dissatisfied with the appraisal process. Appraisals are often viewed as an administrative burden. Increase scores of those who have done well. Pointless if people are not rewarded/ punished after performance reviews. **************uses of performance appraisal (name the hr function associated with it)

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