Performance Management Session 01 (Introduction – Performance Management) PERFORMANCE MANAGEMENT Definisi, Dasar & Tujuan DEFINISI Performance management adalah usaha untuk mendapat hasil yang lebih baik, baik bagi organisasi, tim maupun individual dengan memahami dan memanaj performance dalam kerangka tujuan, standar dan kompetensi yang terencana dan telah disepakati bersama. DASAR Ketika orang mulai mengetahui dan memahami apa yang mereka harapakan, dan akan dapat mengambil bagian dalam pengharapan tersebut, mereka akan berusaha mencapainya (Amstrong) M Irhas Effendi 2008 Manajemen Kinerja (MK): Proses komunikasi berkesinambungan dan dilakukan dalam kemitraan antara karyawan dengan penyelia langsungnya. (Bacal) Manajemen Kinerja berupaya membangun harapan yang jelas serta pemahaman ttg : @ Fungsi kerja esensial yang diharapkan karyawan @ Kontribusi karyawan terhadap tujuan organisasi @ Arti konkretnya melakukan pekerjaan dengan baik @ Kerjasama antara karyawan dengan penyelia dalam mempertahankan, memperbaiki dan mengembangkan kinerja yang ada @ Bagaimana kinerja karyawan diukur @ Mengenali hambatan dan mencari solusi kinerja karyawan M Irhas Effendi 2008 Performance Management adalah: Prose's bersama-sama antara manajer, tim dan individu Melibatkan manajemen kontrak, bukan komando Berdasarkan persetujuan bersama atas tujuan, pengetahuan, ketranpilan dan kemampuan yang akan dicapai Menerapkan review terus menerus atas persetujuan, persyaratan, perencanaan & peningkatan pencapaian untuk perencanaan selanjutnya. Tujuan Performance Management: Tujuan utama performance management adalah menciptakan budaya dimana individu dan kelompok dapat bertanggungjawab terhadap perbaikan proses bisnis, skill & kontribusi mereka sendiri. M Irhas Effendi 2008 How Performance Management Work High Performance Reinforce melalui praise/ rekognisi/ pengembangan tgjw Performance Aktual Performance Agreement Monitoring and Review performance Agreement Start Year Tingkatan Performance Management Low Performance Coaching/ Counseling Main Performance Review End Year M Irhas Effendi 2008 Management by Objectives Sistem yg dinamis untuk mengintegrasikan antara kebutuhan perusahaan untuk mencapai keuntungan dan pengembangan tujuan dengan kebutuhan manajer untuk berkontribusi dan mengembangkan diri. Mc Gregor: MBO merupakan taktik dalam strategi manajemen melalui kontrol dan pengarahan M Irhas Effendi 2008 Corporate objectives Unit objectives Review of corporate performance Review of unit performance Indiv prepare objectives Review of individual performance Managers set down objectives Indiv & managers agree objectives The Management by Objectives process M Irhas Effendi 2008 Latar Belakang Performance Management Merit rating Management by Objectives Performance Management Merit Rating Manajer menilai bawahan berdasar: 1.Pengetahuan akan tugas sekarang 2.Output efektif 3.Pengambilan keputusan 4.Ketepatan kerja 5.Percaya diri 6.Sikap kerja 7.Inisiatif 8.Kesiapan menghadapi tekanan Menggunakan skala: Amat baik Memuaskan Cukup Buruk Mengapa manajer ini tidak suka MR •Tidak percaya pada validitas MR •Sungkan bila langsung mengkritik •Kurang terampil melakukan penilaian dan interview •Tidak suka prosedur-prosedur baru M Irhas Effendi 2008 MUNCULNYA PERFORMANCE MANAGEMENT Hadirnya HRM sebagai pendekatan strategis dalam mengelola dan mengembangkan bawahan Pentingnya penilaian yang strategis & fleksibel Kesadaran bahwa performance hanya bisa diukur & dinilai dg model input-proses-output-hasil (kontribusi) Adanya perhatian terhadap peningkatan dan pengembangan yang berkelanjutan, serta learning organization Kesadaran bahwa proses penilaian kinerja harus dilakukan oleh manajer lini sepanjang tahun Kesadaran akan pentingnya kultur perusahaan Pengembangan konsep & teknik pengukuran kemampuan dalam level perilaku Munculnya kesadaran bahwa pengelolaan kinerja adalah tanggung jawab bersama, bukan hanya manajer lini Ketidakpuasan akan hasil pengukuran dari cara-cara yang lain M Irhas Effendi 2008 PERFORMANCE MANAGEMENT IMPROVING INDIVIDUAL AND ORGANIZATIONAL PERFORMANCE DEVELOPING SKILLS AND COMPETENCIES REWARD MANAGEMENT IMPROVING MANAGERIAL EFFECTIVENESS Performance Management as an Integrating Force M Irhas Effendi 2008 Implikasi yg lebih luas dari PM Performance Management dan HRM Mencapai tingkat tertinggi kinerja HR suatu organisasi Mengmbangkan kapasitas maupun potensi pegawai Menciptakan lingkungan dimana potensial laten dari pegawai dapat terealisasi Mendorong / merubah kultur organisasi Pengembangan selanjutnya PM berguna dlm pengemb karir indv. & memberi kesempatan pd manajer dan bawahannya utk berdiskusi ttg pekerjaan sbg pelajaran. Jadi pegawai tidak hanya memahami atribut (pengetahuan, skill dan keahlian) dan kompetensi di area dia bekerja namun juga dpt memahami area lain. Kerja tim PM dpt berguna mengembangkan kemandirian bawahan tanpa hrs dgn manajer dgn diskusi kelompok tentang tujuan, review kemajuan yg mereka dapat. M Irhas Effendi 2008 Change in Organization Structure R&D Manufacturing Marketing & Sales Traditional (vertical view) of organization M Irhas Effendi 2008 The Silo Phenomenon R&D Manufacturing Marketing & Sales M Irhas Effendi 2008 The system (horizontal) view of organization Research and Development Manufacturing Marketing and Sales new product ideas Research Product Specs Product Development Manufacturing Plant needs Marketing promotions Customer Manufacturing Plant Manufacturing Plant materials orders products Sales orders Suppliers M Irhas Effendi 2008 The Reality of Adaptation Understanding performance requires documenting the inputs, processes, outputs, & customers that constitute a business Organization systems adapt or die Pulling any lever in the system will have an effect on other parts of the system. Putting too much efforts “fixing” people who are not broken, and not enough time fixing organization systems that are broken. M Irhas Effendi 2008 Three levels of Performance: Organization Process Job/Performer M Irhas Effendi 2008 Organization Level of Performance $ Function A Function B Function C Shareholders Products/ Service Market M Irhas Effendi 2008 Process Level of Performance $ Shareholders Process 1 Products/ Service Market Process 2 Function A Function B Function C M Irhas Effendi 2008 Job/Performer Level of Performance The Performance Variables that must be managed; Hiring Promoting Job responsibilities and standards Feedback Rewards Training M Irhas Effendi 2008 Nine Performance Variables Goals Orgn. Org Goals Process Process Goals Job/ Performer Job Goals Design Org Design Process Design Job Design Management Org Mngt Process Mngt Job Mngt M Irhas Effendi 2008 Performance Appraisal: Douglas McGregor: 1. Systematic judgments to back-up salary increase, promotion, transfer, demotion, termination 2. Means of telling employees how they are doing (behavior, attitude, skills, job knowledge 3. Basis for job related counseling & coaching of individual by superior M Irhas Effendi 2008 GE experience on effects of interview Criticism has negative effect on achievement of goals Praise has little effect Performance improves most when specific goals are set Defensive resulting from critical appraisal leads to low performance Coaching should be day to day, not once a year Mutual goal setting, not criticism that improves performance Interview is design for improving performance not for other purposes Participation by employees in goal setting produces favorable results M Irhas Effendi 2008 3 headed-hydra of Performance Management Improve Performance Compensation & Promotion Mechanism Performance Management Helps People Grow M Irhas Effendi 2008 Requirements for establishing PM 1. Organizational readiness 2. System Integration 3. Training 4. Evaluation M Irhas Effendi 2008 Factors Causing Antipathy Toward Performance Appraisal Systems Ownership Neither manager nor subordinate has any sense of ownership Bad news Negative messages generate defensive reactions and promote hostility rather than serve as useful performance feedback Adverse impact Both managers and employees know that bad reviews have an adverse impact on a person’s career. M Irhas Effendi 2008 • Scarce rewards There are few formal rewards for taking the process seriously and probably no informal rewards. Personal reflection Managers hesitate to give unfavorable appraisals for fear that the appearance of unsatisfactory work by a subordinate will reflect and develop subordinates. • No time Fear of confrontation Forms and procedures don’t make sense M Irhas Effendi 2008 USES OF APPRAISALS (1) Subsystem Elements Staffing: Recruitment Selection Placement Transfer Promotion Termination Human resource Inventory Rewarding: Benefits Salary structure Merit Intrinsic Objectives Identifying Current inadequacies Criteria for Selection Predictors Individual Skills for New Assignment Identifying Outstanding Performer Identifying Inadequate Performer Skill and Potential Data Comparative Data on Performance Motivation Through Objective Setting, Feedback, & Participation Appraisee Evaluation M Irhas Effendi 2008 USES OF APPRAISALS (2) Subsystem Elements Changing: Organizational Climate Organizational Structure Management Styles Policies Communications Developing: Rotating Training Counseling Objectives Identify Need for General Change Two-Way Feedback Two-Way Feedback Judgments on Learning Identifying Individual Upgrading Needs Evaluating Previous Training Career Planning Basis M Irhas Effendi 2008 Sources of Problems in Appraisal Systems (1) Human Judgment Raters Subjectivity and/or individual nature of decisions making: intentional bias and prejudice Lack of information on ratee performance, lack of knowledge of ratees” job, possession of erroneous information, differing expectations due to level in hierarchy and role Criteria and Formats Ambiguity, lack of specific and behaviorally-based language, not communicated explicitly to ratees M Irhas Effendi 2008 Sources of Problems in Appraisal Systems (2) Organizational Policy Legal Requirement And Equal Employment Opportunity Legislation No commitment to appraisal, failure to use results in reward allocation, no standard policy regarding raters’ tasks in appraisal or frequency of appraisal, no allowance for user participation in system development Failure to develop appraisal criteria from job analysis rating systems administered subjectively, use of results to discriminate on basis of race, sex, etc. Inflexibility Inability of system to reflect dynamic nature of jobs and organizational context; credibility loss from outdated systems. M Irhas Effendi 2008