Chapter 12 Performance Management and Motivation PDF

Chapter 12 Performance Management and Motivation Classified: Internal\ FAB Internal  What does ‘performance’ mean? Contributions of PM: Employees How hard you work?...

Chapter 12 Performance Management and Motivation Classified: Internal\ FAB Internal  What does ‘performance’ mean? Contributions of PM: Employees How hard you work? ✓The definitions of job and success are clarified What your results are? ✓Motivation to perform is increased How hard your team works? ✓Self-esteem is increased What the team achieves? ✓Self-insight and development and enhanced control over their work. How well the organization as a whole functions? How much profit the organization makes? Or costs it saves? Contributions of PM: Managers ✓Supervisors’ views of performance are communicated more clearly Performance Management: ✓Managers gain insight about subordinates Definition Continuous Process of ✓There is better and more timely differentiation between good and poor performers ✓ Identifying performance of individuals and teams ✓Employees become more competent ✓ Measuring performance of individuals and teams ✓Developing performance of individuals and teams. Contributions of PM: Organization/HR Function ✓ Aligning performance with the strategic goals of the organization ✓Organizational goals are made clear ✓Organizational change is facilitated PM is NOT performance appraisal ✓Administrative actions are more fair and appropriate PM ✓There is better protection from lawsuits – Strategic business considerations – Ongoing feedback – So, employee can improve performance – Driven by line manager Performance appraisal – Assesses employee o Strengths & o Weaknesses – Once a year – Lacks ongoing feedback – Driven by HR Classified: Internal\ FAB Internal  Performance management in practice Providing feedback ❑ Performance management: is the process through which organizations can Information sharing ensure that individual employees are working towards organizational goals, Challenge when providing negative feedback by monitoring and guiding their performance Promotes procedural fairness ❑ This includes several critical components... Importance of culture job assignment goal setting Performance appraisal establishing performance standards ❑ Performance appraisal refers to the formal evaluation of employees providing feedback conducted to determine the degree to which they are meeting specified performance appraisal (including documentation) objectives. distributing/allocating outcomes (rewards/punishment) ❑ Performance, pay and developmental purpose ❑ Important that they are perceived as fair and objective. But how? Work assignment ❑ Staffing Performance appraisal – key considerations ❑ Person–organization and person–job fit ❑ The evaluation process ❑ Implications for training ❑ The scheduling of evaluation ❑ The appraiser – Single-source or multi-source (e.g. 360 degree) feedback Goal setting ❑ Evaluating performance – overcoming bias ❑ What will be evaluated – traits, behaviours or outcomes? ❑ Clear and unambiguous ❑ Performance-related information ❑ SMART Goals – Specific – Measurable – Attainable – Relevant and realistic – Time-bound Distributing/Allocating outcomes ❑ Employment as an exchange relationship Establishing performance standards ❑ What will be the rewards/compensation for high performance? ❑ How will individual performance be judged? ❑ Again, fairness is key ❑ Measurement ❑ Individual or team rewards? ❑ Implications for motivation and proactive behaviour Classified: Internal\ FAB Internal  Performance management and employee motivation ❑ Performance → Results ❑ Results → Appraisal ❑ Appraisal → Outcomes ❑ Outcomes → Needs Supervisor–subordinate relationship Given the centrality of this relationship for performance management it is essential managers receive training... ❑ On how to avoid creating in-groups and out-groups ❑ On ensuring that evaluations are based on objective data and are not biased by their relationships with their subordinates Performance management in MNCs Research shows that the purpose of performance management may differ (generally) in different parts of the world. For example, ❑ In the US, performance appraisals are primarily designed to Evaluate individuals’ performance, Award appropriate rewards ❑ In Japan, performance appraisals are: More concerned with evaluating employees’ long-term potential. ❑ Thus, organizations may have to develop performance management systems that ‘fit’ with: The expectations and values of their local operations Disadvantages/Dangers of Poorly-implemented PM Systems: Employees ❑ Lowered self-esteem ❑ Employee burnout and job dissatisfaction ❑ Damaged relationships ❑ Use of false or misleading information Classified: Internal\ FAB Internal  Disadvantages/Dangers of Poorly-implemented PM Systems: Managers ❑ Increased turnover ❑ Decreased motivation to perform ❑ Unjustified demands on managers’ resources ❑ Varying and unfair standards and ratings Disadvantages/Dangers of Poorly-implemented PM Systems: Organization ❑ Wasted time and money ❑ Unclear ratings system ❑ Emerging biases ❑ Increased risk of litigation Integration with other Human Resources and Development activities PM provides information for: ✓ Development of training to meet organizational needs ✓ Workforce planning ✓ Recruitment and hiring decisions ✓ Development of compensation systems Classified: Internal\ FAB Internal