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MHR 523 (321)
Chapter 10-15

All after midterm material: Chapters 10-15

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Human Resources
MHR 523
Rupa Banerjee

Chapter # 10: Performance Management Performance management The process encompassing all activities related to improving employee performance, productivity, and effectiveness, includes goal setting, pay for performance, training and development, career management, and disciplinary action Performance appraisals are the foundation of performance management, provide a concrete basis for analysis of an employees work performance and for any action taken to maintain, enhance, or change it Performance Management Process contains five steps: 1. defining performance expectations and goals to make sure that job duties and job standards are clear to all 2. providing ongoing feedback and coaching through open 2-way communication 3. conducting performance appraisal and evaluation discussions by comparing an employees actual performance to the standards that ben been set 4. determining performance rewards/consequences such as promotions, salary, increases and bonuses 5. conducting development and career opportunities discussions in order to review each employees career plans in light of the companys strategic plans Step 1: Defining Performance Expectations expectations should be linked to current strategic objectives and implementation plans job description isnt sufficient to clarify performance expectations measurable standards related to strategic objectives should be developed for each position Step 2: Providing ongoing coaching and feedback it is important to have open 2-way communication, and both the employee and the manager need to check in frequently throughout the performance management process to talk about progression toward goals www.notesolution.com employees are responsible for monitoring their own performance and asking for help, this promotes employee ownership and control over process Step 3: Performance appraisal and evaluation discussion The appraisal itself is generally conducted with the aid of a predetermined and formal method, such as graphic rating scale, alternation ranking method etc. Graphic Rating Scale simplest/most popular technique, a scale that lists a number of traits and range of performance for each, total up scores for each trait Alternation Ranking Method ranking employees from best to worst on a particular trait Paired comparison Method - ranking employees by making a chart of all possible pairs of employees for each trait and indicating the better employee of the pair Forced distribution Method predetermined % of rates are placed in various performance categories, similar to bell curving at school, criticized as being demotivating for the considerable proportion of the workforce that is classified as below average Critical incident method keeping a record of uncommonly good/undesirable examples of an employees work-related behaviour and reviewing the list with the employee at predetermined times, provides specific hard facts for explaining the appraisal, doesnt reflect most recent performance Narrative Forms some employers use narrative forms to evaluate employees Behavioural anchored rating scale (BARS) aims to combine the benefits of narratives, critical incidents, and quantified ratings by anchoring a quantified scale with specific narrative examples of good/poor performance Steps in Developing a BARS 1. Generate critical incidents - job experts specify effective and ineffective performance 2. Develop performance dimensions - cluster the incidents into a smaller set of performance dimensions www.notesolution.com 3. Reallocate incidents - different experts group incidents into same clusters and retain incidents similarly assigned twice 4. Scale the incidents - rate the behaviour described in the incident as to how effectively or ineffectively it represents performance Develop the final instrument a subset of the incidents is used as behavioural anchors for each dimension Advantages more accurate measure clearer standards assists feedback independent dimensions consistency Disadvantage time consuming management by objective (MBO) set specific measurable goals with each employee and then periodically discuss his or her progress toward these goals 1. set the organizations goalsstablish an org-wide plan for next year and set goals 2. set departmental goals department heads and their superiors jointly set goals for their department 3. discuss departmental goals dpmt heads discuss the dpmts goals with all employees in the department, and ask them to develop their own individual goals 4. define expected results (individual goals), short term performance targets are set 5. performance reviews: measure the results dpmt heads compare actual with expected employee performance 6. provide feedback periodic reviews are made with employees to discuss and evaluate progress in achieving expected results Computerized and Web-Based Performance Appraisal www.notesolution.com enables managers to keep computerized notes on employees, combine these with ratings on several performance traits, and then generate written text to support each part of the appraisal ultimately improve the overall performance management process, starting with higher completion rates, provide clear development path and better understanding of how their goals are aligned with those of the organization most web-based performance management systems provide advanced reporting capabilities, which allow managers to track the status of performance management initiatives easily electronic performance monitoring (EPM) refers to having supervisors electronically monitor the amount of computerized data an employee is processing per day and thereby his or her performance validity and reliability, performance appraisal must be accurate, or valid in order to produce useful results, criteria must be (1) relevant to the job being appraised, (2) broad enough to cover all aspects of the job requirements, (3) specific unclear performance standards an appraisal scale that is too open to interpretation of traits and standards Halo effect- the problem that occurs when a supervisors rating of an employee on one trait biases the rating of that person on other traits Central Tendency a tendency to rate all employees in the middle of the scale Strictness/leniency the problem that occurs when a supervisor has a tendency to rate all employees either low or high Appraisal bias the tendency to allow individual differences, such as age, race, and sex, to affect the appraisal ratings that these employees receive Recency effect rating error that occurs when ratings are based on the employees most recent performance rather than on performance throughout the appraisal period Similar-to-me bias tendency to give higher performance ratings to employees who are perceived to be similar to the rater in some way www.notesolution.com
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