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Final Exam Notes Chapters 10-16

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Human Resources Management in CanadaChapter 10Performance ManagementThe Strategic Importance of Performance Management y Performance management o The process encompassing all activities related to improving employee performance productivity and effectiveness y It includes goal setting pay for performance training and development career management and disciplinary actiony Foundation of performance management is the performance appraisal process o Primary purpose is to instil employees with the desire for continuous improvementThe Performance Management Process 1 Conducting performance appraisal and evaluation discussions o At specific intervals by comparing an employees actual performance to the standards that have been set usually involving some type of rating them 2 Determining performance rewardsconsequences o Such as promotions salary increases and bonuses 3 Conducting development and career opportunities discussions o Review employees career plans in light of his or her exhibited strengths and weaknesses and in light of the companys strategy plansStep 1Defining Performance Expectations y Make sure that job duties and job standards are clear to all y Job description often is not sufficient to clarify what employees are expected to do and how their duties relate to strategic objectives y To clarify these expectations measurable standards related to strategic objectives should be developed for eachy For examplethe personal selling activity can be measured in terms of how many dollars of sales the associate is to generate personallyStep 2Providing ongoing coaching and feedback y Important to have twoway communication y Both the employee and manager need to check frequently throughout the performance management process to talk about progression toward goals y Employees are responsible for monitoring their own performance and asking for help o Promotes employee ownership and control over the processStep 3Performance appraisal and evaluation discussiony The appraisal itself is generally conducted with the aid of a predetermined and formal methodFormal Appraisal MethodsGraph Rating Scale y A scale that lists a number of traits and a range of performance for each y The employee is then rated byidentifying the score that best describes hisher level of performance for each trait y Simplest and most popular technique Alternative Ranking Method y Ranking employees from best to worse on a particular trait o It is usually easier to distinguish between the worse and best employees than to rank themy List all employees to be rated y Cross out the names of any not known well enough y On a form indicate the employee who is highest on the characteristic being measured and also the one who is the lowest y Choose the next highest and next lowest alternative between higher and lower until all employees have been rankedPaired Comparison Method y Ranking employees making a chart of all possible pairs of employees for each trait and indicating the better employee of the pairy Traits being quantity of work quality of work creativity etcy For each trait indicate with aorwho is the better employee of the pairForced Distribution Method y Predetermined percentages of rates are placed in various performance categories y For exampleit may be decided to distribute employees as follows o 15 high performers o 20 highaverage performerso 30 average performers o 20 lowaverage performers o 15 low performers Critical Incident Method y Keeping a record of uncommonly good or undesirable examples of an employees workrelated behaviour and reviewing the list with the employee at predetermined timesy Provides specific hard facts for explaining the appraisal y Ensures that a manager thinks about the employees appraisal throughout the year y Is often used to supplement a ranking technique y Useful for identifying specific examples of good and poor performance and for planning how deficiencies can be correctedNarrative Forms y Some employers use narrative forms to evaluate employees y Suggested format for identifying performance issue and presenting a performance improvement plan y Performance problem is described in specific detail and its organizational impact is specified Behaviourally Anchored Rating Scales y An appraisal method that aims to combine the benefits of narratives critical incidents and quantified rating by anchoring a quantified scale with specific narrative examples of good and poor performance y BARS typically requires 5 steps o Generate critical incidentsPeople who know the job being appraised are asked to describe specific illustrations of effective and ineffective performance o Develop performance dimensionsCluster the incidents into a smaller set of performance dimensionsEach cluster dimension is then definedo Reallocate incidentsAnother group of people who also know the job then reallocate the original critical incidents Different expert group incidents into the same clusters and retail incidents similarly assignment twice o Scale the incidentsSecond group is generally asked to rate the behaviour describe in the incident as to how effectively or ineffectively it represents performance on the appropriate dimension o Develop the final instrumentA subset of the incidents is used as behavioural anchors for each dimensiony Advantages of BARS o A more accurate measure o Clearer standards o Feedback o Independent dimensions o Consistencyy Disadvantage of BARS o Time consumingManagement by Objectives MBO y Involves setting specific measurable goals with each employee and then periodically reviewing the progress madey MBO refers to a comprehensive organization wide goal setting and appraisal program that consists of six main steps o Set the organizations goalsEstablish an organizationwide plan for next year and goals o Set departmental goalsDepartment heads and their supervisors jointly set goals for their departments o Discuss departmental goalsDepartment heads discuss the departments goals with employees and ask them to develop their own individual goals o Defined expected resultsDepartment heads and employees set shortterm performance goals o Performance reviews Measure the results
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