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MHR523 Exam Review - CH10-16

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Human Resources
MHR 523
Margaret Yap

MHR523 Exam Review Ch1016 Chapter 10 Performance Management Performance management J encompassing all activities related to improving employee performance, productivity & effectiveness; goal setting, pay for performance, training & development, career management & disciplinary action; performance appraisal process J continuous improvement 1. Define performance expectations & goals J measurable, clear, link to current strategic objectives & implement plans 2. Providing ongoing feedback & coaching J 2 way communication, ongoing 3. Conducting performance appraisal & evaluation discussions J formats, meeting standards 4. Determining performance rewards/consequences J incentives 5. Conducting development & career opportunities discussions J strengthen, improvements Formal Appraisal Methods Graphic rating scale J lists number of traits & range of performance for each; employee rated by identifying score that best describes their level of performance for each trait, unclear standards Alternation ranking method J rank employees from best to worst on particular trait; distinguish Paired compassion method J rank employees by making chart of all possible pairs of employees for each trait & indicate the better employee of the pair; comparison Forced distribution method J predetermined percentages of ratees placed in various performance categories; bell curves; disadvantage: productivity affected, low morale/confidence, always have a lower % Critical incident method J l }}L }KK}Lo2}}lLZ]oKoZ}Ko}[Z}l-related behaviour & reviewing list with employee at predetermined times Narrative Forms J use performance improvement plan, problem described in specific detail Behaviourally anchored rating scale (BARS) J appraisal method, combine benefits of narratives, critical incidents & quantified ratings by anchoring a quantified scale with specific narrative examples of good & poor performance; consistency & verify, employee development, time consuming to develop 1. Generate critical incidents J specify effective & effective performance 2. Develop performance dimensions J cluster incidents into smaller set of performance 3. Reallocate incidents J group incidents into same clusters & retain incidents similarly assigned twice 4. Scale incidents J rate behaviour representation 5. Develop final instrument J behavioural anchors for each incident Advantages: more accurate measure, clearer standards, feedback, independent dimensions, consistency Management by objectives (MBO) J setting specific measurable goals with each employee & periodically reviewing progress made; organization-wide, goal setting & appraisal program 1. Set }2L]]}L[Zoals 2. Set departmental goals 3. Discuss departmental goals 4. Defineexpected results (set individual goals) 5. Performance reviews: measure the results J compare actual to expected 6. Provide feedback J discuss & evaluate progress Challenges: setting unclear, non-measurable objectives, time consuming; objectives must be attainable & fair Electronic performance monitoring (EPM) J having supervisors electronically monitor amount of computerized data employee is processing per day = performance Performance Appraisal Problems J emotional, employees overly optimistic about what their ratings will be 1. Validity & reliability (consistent for same performance) o Criteria J relevant to job being appraised, broad enough to cover all aspects of job requirements, specific Rating Scale problems 1. Unclear performance standards J appraisal scale, too open to interpretation of traits & standards 2. Halo effect J when supervisor rating employee on one trait biases rating of that person on other traits 3. Central tendency J to rate all employees in middle of scale 4. Strictness/leniency J occurs when supervisor has tendency to rate all employees either low/high 5. Appraisal bias J allow individual differences to affect appraisal ratings that these employees receive 6. Recency effect J ]L2}ZLZ}LKo}[Zmost recent performance rather than on performance throughout appraisal period 7. Similar-to-me bias J give higher performance ratings to employees who are perceived to be similar to rater in some way To avoid Appraisal Problems J raters must be familiar with problem (understand), choose appropriate appraisal tool, train supervisors to eliminate rating errors Who does Appraising? J Supervisors, peers, committees, self, subordinates, 360-degree (all of above) 360-degree appraisal J use multiple raters (peers, employees) reporting to the appraisee, supervisors & customers (multi-source feedback) Appraisal interview J supervisor & employee review appraisal & make plans to remedy deficiencies & reinforce strengths 2. Satisfactory (promotable) J make development plans 3. Satisfactory (not promotable) J maintain performance, use incentives 4. Unsatisfactory (correctable) J plan correction To Conduct Interview J Be direct, do not get personal, encourage person to talk, develop an action plan Handling Criticism & Defensive Employees 5. Recognize that defensive behaviour is normal 6. - lZ}L[ZL Z 7. Postpone action 8. Recognize human limitations Ensure interview leads to improved performance from Legal expert: 1. Let them know their performance is unacceptable & explain your minimum expectations 2. Ensure that expectations are reasonable 3. Let employees know that warnings play a significant role in the process of establishing just cause 4. Ensure that you take prompt corrective measures when required 5. Avoid sending mixed messages, e.g. L]L2o}2Z]Z^Z]Z }_}KL ]: 6. Provide the employee with a reasonable amount of time to improve performance 7. Be prepared to provide employees with support to facilitate improvement Future Performance Management (effective) 9. Linking individual goals & business strategy 10. Showing leadership & accountability at all levels of organization 11. Ensuring close ties among appraisal results, rewards & recognition outcomes 12. Investing in employee development planning 13. Having administratively efficient system with sufficient communication support Chapter 11 Strategic Pay Plans Total rewards J integrated package of all rewards (monetary & nonmonetary, extrinsic & intrinsic) gained by employees arising from their employment 1. Compensation J direct financial payments of wages, salaries, incentives, commissions & bonuses 2. Benefits J indirect financial payments, employer-paid insurance & vacations, employee services 3. Work/life programs J flexible scheduling, telecommuting, childcare www.notesolution.com4. Performance & recognition 5. Development & career opportunities J advancement, change in responsibilities Impact of Rewards 14. Attract, retain, motivate/engage employees 15. Engagement J clear understanding, positive connection 16. Competitive base pay = #1 factor attracting employees 17. Excellent career opportunities = most important to retainployees 18. ^L]}KL2KL[Z]LZ]LKployee well-being influences employee engagement Basic Considerations in Determining Pay Rates J legal requirements, union issues, compensation policy, equity Legal Considerations 19. Employment/labour standard acts (Canada Labour Code) o Minimum standards regarding pay (wage, hours, overtime, vacation, statutory holidays, termination, record keeping) 20. Pay Equity Acts o Employers required to identify male/female dominated jobs, use gender-neutral job evaluation system based on specific compensable factors to evaluate jobs 21. Human Rights Act o Prohibit discrimination in employment (compensation & promotion) 22. Canada/Quebec Pension Plan o 9LZ]}LL]ZZ}LKo}[Z2L]L2Z]]L2]KL 23. Other Legislation affecting compensation o Employment Insurance Act J protect from total economic destitution in event of employment termination beyond their control, no fault of their own o Maternity leave, parental leave & compassionate care leave benefits Union Influences: Compensation Policies Equity J internal & external 24. Include basis for salary increases, promotion & demotion, overtime pay, probationary pay, leaves for military service, jury duty, h
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