Section 5.docx

31 Pages

Human Resources and Organizational Behaviour
Course Code
HROB 2100
Sara Mann

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Section 5 Performance ManagementChapter 12 Performance Management The Strategic Importance of Performance Management achieving strategic objectives requires employee productivity above all else as organizations strive to create high performance vulture by using minimum number of employees Performance management process encompassing all activities related to improving employee performance productivityeffectiveness includes goal setting pay for performance trainingdevelopment career managementdisciplinary action must provide integrated network of procedures across organization that will direct all work behaviour foundation is performance appraisal process instill in them desire for continuous improvementThe Performance Management Process most effective way for firms to differentiate themselves in highly competitive serviceoriented global marketplace is through quality of employees contains 5 steps 1 Defining performance expectationsgoals make sure job dutiesjob standards are clear to all 2 Provide ongoing feedbackcoachingthrough twoway communication 3 Conducting performance appraisalevaluation discussions done at specific intervals by comparing employees actual performance to the standards that have been set usually rating form employees performanceprogress are discussed to reinforce things that employee is doing wellto develop plan for correction of any deficiencies that appraisal may define 4 Determining performance rewardsconsequences promotions salary increases bonuses 5 Conducting developmentcareer opportunities usually done annually to review each employees career plans in light of their exhibited strengthsweaknesses and in light of companys strategic planwhen ineffective some employees arent told ahead of time exactly what is expected of them for good performance performance standards may be irrelevant subjective unrealisticmay be problems with forms or procedures used to appraise performance lenient supervisor may rate all employees high when many are unsatisfactory acquiring poor communications during feedback discussionWhat People Learn At Work not necessarily task specific practical skills jobspecific interpersonal skills communication teamwork conflict resolution intrapersonal skills problem solving critical thinking learning about alternative work processesrisk taking cultural awareness learning social norms of firm How People Learn at Work Operant Learning TheoryEmployee learns to operate on the environment to achieve certain consequencesRat Example learned to operate the lever to get food Consequences depend on the behaviour and this connection is what is learned Can be used to increase the probability of desired behaviours andor reduce the undesirable behavioursStep 1 Defining Performance Expectations defining performance expectationsgoals is crucial for employees to understand how their work contributes to achieving business results performance expectations should be linked to current strategic objectivesimplementation plans job description is often not sufficient to clarify what employees are expected to dohow their duties relate to strategic objectives measurable standards related to strategic objectives should be developed for expectations in global companies performance appraisal criteria may need to be modified to be consistent with cultural normsvaluesStep 2 Proving On Going Coaching and Feedbackmanagerstheir reports should continue to discuss progress important to have twoway communicationboth employeemanager need to check in frequently throughout performance management process to talk about progression toward goals some organizations strategiesobjectives change quickly goals need to change to be consistentStep 3 Performance Appraisal and Evaluation Discussion most firms combine several appraisal techniquesFormal Appraisal Method Graphic Rating Scale Graphic rating scale lists number of traitsrange of performance for each Employees rated by identifying score that best describes their level of performance for each trait simplestmost popular technique for appraising performanceAlternation Ranking Method Alternation ranking methodranking employees from best to works on particular trait indicate highest then lowest then second highest then second lowest and continue alternatingPaired Comparison Method Paired comparison method ranking employees by making chart of all possible pairs of employees for each traitindicating the better employee of the par number of times employee is rated better is added up to find who ranked highest for each traitForced Distribution Method Forced distribution method predetermined percentages of ratees are placed in various performance categories similar to bell curve grading demotivates those classified as below averageCritical Incident Method Critical incident method keeping record of uncommonly good or undesirable examples of an employees workrelated behaviourreviewing the list with the employee at predetermined times provides specific hard facts for explaining appraisal ensures manager thinks about appraisal throughout yearkeeps running log of crucial incidents to provide concrete examples of what employee can do to eliminate any performance deficiencies Examples of Critical Incidents for Assistant Plant Manager Continuing Duties Targets Critical Incidents Schedule Full utilization of employees Instituted new production scheduling system production formachinery in plant orders decreased late orders by 10 last month increased plant delivered on time machine utilization in plant by 20 last month Supervise Minimize inventory costs Let inventory storage costs rise 15 last month procurement of while keeping adequate overordered parts AB by 20 raw materials supplies on hand Supervise No shutdowns because of Instituted new preventative maintenance system machinery faulty machineryfor plant prevented machine breakdown by maintenance discovering faulty partNarrative Forms performance improvement plan describes problem in specific detailorganizational impact is specified identifies measurable improvement goals provides directions regarding trainingany suggested activities to address performance issueencourages employee to add ideas about steps to be taken to improve performance outcomesconsequences positivenegative are explicitly stated Behaviourally Anchored Rating Scales Behaviourally anchored rating scale BARS appraisal method that aims to combine benefits of narratives critical incidentsquantified ratings by anchoring a qualified scale with specific narrative examples of goodpoor performanceDeveloping BARS requires 5 steps 1 Generate critical incidents group one is people who know the job being appraised are asked to describe specific illustrations of effectiveineffective performance2 Develop performance dimensions group one cluster incidents into smaller set of performance dimensions each cluster dimension is defined3 Reallocate incidents group 2 of people reallocate original critical incidentsgiven clusters definitionscritical incidentsasked to reassign each incident to cluster they think is best fitcritical incident typically retained if some percentage 5080 of second group assigns it to same cluster as other group4 Scale the incidents group 2 is asked to rate behaviour described in incident as to how effectively or ineffectively it represents performance on appropriate dimension 7 or 9 point scales
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