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Chapter 8

Chapter 8 Textbook Notes.docx

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Ryerson University
Human Resources
MHR 523
Pat Sniderman

Chapter 8 Textbook Notes: Performance Management ­ short chapter ! J ­ performance management: the use of performance data to effect organizational  culture, systems, and processes, set goals, allocate resources, affect policies and  programs, and share results ­ performance appraisal: the process by which organizations evaluate employee  job performance Ways in which Pas are used ­ performance feedback, improvement, career planning ­ pay raises ­ promotions and transfers ­ identification of staffing deficiencies ­ to avoid discrimination lawsuits key elements ­ the HR deparment usually develops performance appraisal policies, forms and  procedures for employees in all departments (example of functional authority) o centralization is meant to ensure uniformity in order to provide for useful  results o employee’s immediate supervisor usually performs the actual evaluation performance standards:  ­ the benchmarks against which performance is measured­ should be related to  desired results. Knowledge of these standards is collected through job analysis. Performance measures: ­ the ratings used to evaluate employee performance. To be useful, they must be easy to  use, be reliable, and report on the critical behaviours that determine performance ­ a comprehensive performance management system involves much more than just  performance appraisal ­ performance management involves using performance data to mutually inform  corporate culture, organizational benchmarks, human capital potential, systems  and processes, resources, current policies, program directions, and sharing the  results with all stakeholders and asking for stakeholders’ input ­ human resource professionals need to run performance management strategically o to align each employee performance management plan with the strategy  for the organization­ whether the strategic focus of the organization is safe  working, competitive pricing, high quality or exemplary customer service ­ to make performance management work requires several characteristics o performance objectives  this is a critical aspect of a company’s strategy which, if not met,  may result in lower customer satisfaction and other less desirable  organizational results o performance goals  these are achievable and realistic targets to which actual outcomes  can be compared o performance measurement  here we talk about measuring the process of achieving the present  goals, including the efficiency of transforming resources into  goods and services, their quality, client satisfaction, quality of  decision making, and efficiency and effectiveness of management  contributions o output measures  assessments of the quantity and quality of work produced o outcome measures  results of programs compared to present targets Performance management system goals ­ objectives: o transform organizational objectives into clearly understood, measurable  outcomes that define success o provide instruments for measuring, managing, and improving overall  health and success of the organization o include measures of quality, cost, speed, customer service, and employee  satisfaction, motivation, and skills to provide in depth predictive  performance management system o shift from prescriptive, audit and compliance based management to an  ongoing, forward looking strategic partnership between top and middle  management and employees ­ one popular type of performance management system, the balanced scorecard o balanced scorecard: an integrated organizational performance measuring  approach, looking at organizational learning and innovation, financial  management, internal operations and customer management Performance Appraisals as part of managerial strategy ­ assess whether the employee is meeting their individual performance goals o purpose of performance appraisals :  administrative decisions­ eg. Pay raise, promotions  feedback and performance improvement  employee development and career planning  criteria for test validation  training program objectives  job re­design Elements of the performance appraisal system ­ figure 8­3 shows the elements of an acceptable appraisal system key elements of performance appraisal systems ­ the human resource department usually develops performance appraisals for  employees in all departments o to ensure uniformity ­ the appraisal should create an accurate picture of an individual’s job performance.  To achieve this goal, appraisal systems must be o job related o be practical o have standards o use dependable measures ­ job related approach must be practical o a practical system is one that must be understood by evaluators and  employees ­ performance evaluation requires performance standards o benchmarks against which performance is measured o taken from duties and standards listed in the job description  analyst decides which behavior is critical and should be evaluated ­ performance evaluation requires dependable performance measures o performance measures = ratings used to evaluate performance  must be easy to use  be reliable  report on the critical behaviors that determine performance ­ ex: telephone company supervisor looks for… o use of company procedures­ following company rules o phone manners­ speaking politely o accuracy – placing operator assisted calls accurately ­ these observations are made either directly or indirectly. And objective or  subjecive o direct observations: occurs when the rater actually sees the performance o indirect observations: occurs when the rater can evaluate only substitutes  for actual performance  ex: writing a test on someone is indirect o objective performance: performance measures that are verifiable by others  ex: count of calls between two operators o subjective performance: ratings that are based on opinion or perception.  Usually based on the rater’s personal opinion ­ ideally, you want objective and direct measures of performance! Most accurate Characteristics of an effective performance appraisal system ­ an appraisal method consists of a special scale or a particular process; an appraisal  system consists of interlocking, interdependent, and reinforcing methods and  processes that make the results synergistic­ the system is larger than the sum of its  parts ­ 12 characteristics of an effective appraisal system M ETHODS  OF  EVALUATING PAST PERFORMANCE   ­ most of these techniques are direct attempts to minimize some particular problem  found in other approaches o none is perfect o each has its own advantages and disadvantages  Noncomparative evaluation methods ­ does not compare one employee against another ­ uses scales or reports with performance criteria developed by supervisors or a  committee ­ methods include: o the rating scale o behaviourally anchored rating scales o performance tests and observations rating scale:
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