Performance Management
“Ensuring organizational goals are met
through motivated people”
References
• Learning unit 8
• Chapter 19 pages 491 - 505
• Notes
• http://www.12manage.com/i_hr.html
Outcomes
At the end of this module you should:
1.
Be able to describe the steps in developing a
Performance Management system
2.
Make decisions as to who should perform the
evaluation
3.
Compare relative and absolute performance
evaluation techniques
4.
Explain common rater errors
5.
Conduct effective feedback interviews
Drucker’s Five Needs
• Tell me what you expect of me
• Give me the opportunity to perform
• Give me help when I need it
• Tell me how I am doing
• Reward me for my efforts
Definition of performance mngt
“The process of
– guiding,
– assessing and
– recording of staff performance.
To ensure that the companies strategic
objectives are met, and personal goals
satisfied.
Aligning & engaging people
Process of performance management
1. Aligning group & individual performance
with business strategy
2. Coaching & mentoring
3. Evaluating performance & providing
feedback
4. Reviewing and improving the system
1. Rolling out dept
& individual goals
2. Ind coaching
& mentoring
Bus Strategy
4. Evaluating &
Improving system
3. Performance
reviews
*
“Purple Pear”
• In groups
• Please complete the case study
• You may ask me questions as I am the
HR Manager of “Purple Pear”
1. Aligning PMS to business strategy
•
•
Mngr & subordinate agree how strategic
goals be adopted by department &
individual
Agree an individual action plan
•
Agree progress checks
•
Agree the measures for evaluation and
reward
2. Coaching & mentoring
• Regular interim progress reviews & coaching
sessions
• May be informal and formal
• Remove performance barriers
• Create an environment conducive to
performance
3. Performance evaluation
Who should perform evaluation?
•
•
•
•
•
•
•
Immediate supervisor
Peers
Subordinates
Self appraisal
Customer appraisal
360* feedback
Team appraisal
3. Performance evaluation
RELATIVE JUDGEMENTS Vs ABSOLUTE JUDGEMENTS
• Compare peers
• Differentiate between
employees
• Ranking of employees
• Performance based against
agreed standards
• Feedback more specific
• Does not determine how
good or bad the
performance
• May not differentiate
between employees
Rater problems & remedies
1.
Unclear standards
1. Discuss & agree beforehand
2.
Halo/horns effect
2. Be aware of total performance
3.
Central tendency
3. Change rating to even number
4.
Leniency/strictness
5.
Recency *
5. Measure throughout period
6.
Bias
7.
Single criterion
6. Be careful of people we
like/dislike
4. Training on how
7. Measure on a range of measures
Appraisal interview
1. Before interview
•
Gather appropriate information, plan the
intervention, get training on appraisals,
communicate with employee
2. During interview
•
Encourage participation, focus on performance,
be specific, provide motivational feedback, set
action plans for improvement
3. After the interview
•
Review performance, coach, guide, amend goals
if necessary
4. Evaluating performance mngt system
Process of reviewing system and ensuring that
the following are appropriate:
–
–
–
–
Strategy & critical objectives
Departmental & individual goals
Coaching processes
Review processes
If not ~ change & communicate
Next week
• Workforce planning, employment equity
and recruitment.