Unit 4 Session 1.pptx

Online MBA Semester I Organizational Behaviour and Human Resource Management Course code - (OMBA-103) Unit 4 : Lesson 1 : Organizational behaviour and Human Resource Management Part 1 PART 1: LEARNING OUTCOMES At the end of the session you will know about: 1.The difference between performance appr...

Online MBA Semester I Organizational Behaviour and Human Resource Management Course code - (OMBA-103) Unit 4 : Lesson 1 : Organizational behaviour and Human Resource Management Part 1 PART 1: LEARNING OUTCOMES At the end of the session you will know about: 1.The difference between performance appraisal and performance management 2.The objectives of performance management 3.The Uses of Performance Management System 4.Performance Management Cycle 5.Steps in the Performance Management Process Performance Management • Closely linked with MBO • The performance process in this regard is appropriately named the ‘self-propelled performance process’ (SPPP). • Consolidates goal-setting, employee development, performance appraisal, and rewarding performance into a single common system. Performance Management • The term is used in two contexts: • A way of maximizing performance of an individual, team or organization • A process of dealing with underperforming individuals or teams • Its aim is to ensure that employee performance, resources and systems support the strategic goals of the organization Objective Evaluation Objectives s: : Evaluating the readiness of the employees for taking up higher responsibilities (Manager is a judge n makes reward decisions) Developmental Objectives : Identifying major skill gaps and defining training requirements (Manager is a coach who helps in performance improvement) a Gap Closing Strategy Benefits: • Direct Financial Gain • Motivated Work Force • Improved Managerial Control Objectives of performance management Performance Appraisal v/s Performance Appraisal Performance Management Performance Focus is on top down Stresses on mutual objective assessment setting through a process of Management joint dialogue Performed annually Usage of common ratings Continuous performed is very Usage of common reviews ratings is are less Focus is on traits Focus is objectives, behaviors on quantifiable values and Monolithic system Flexible system Is very much linked with pay Is not directly linked with pay Uses of Performance Management System 1. Human resource planning Provides information base for developing succession plans, replacement charts n creating new positions in the organization. Helps determine the potential n promo ability of all employees 2. To validate recruitment n selection decisions (Employees who were selected must ultimately perform better) 3. Personnel decisions Performance Appraisals also serve as a guide for other personnel decisions such as promotions, layoffs… rational decisions can be made 4. Training n development Performance data help determine whether performance deficiencies are due to lack of skills or low morale 5. Feedback, motivation n personal development 6. Career planning n development Appraisal data helps identify employee potential and future growth opportunities. Information about strengths n weaknesses can help in assisting them in making realistic career plans 7. Compensation n reward An objective performance appraisal system helps in making differential reward decisions. Most productive teams or workers are rewarded accordingly thus minimising inequity 8. Internal employee relations Dissatisfactions over promotions or reward decisions can be clarified using performance data resulting in a positive organizational culture Performance Management Cycle 1. Performance Planning And Execution 3. Performance Review, Appraisal And Coaching 2. Performance Assessment Steps in the Performance Management Process 1.Identifying dimensions of job performance to be appraised 2.Defining n communicating performance standards 3.Determining who will conduct the appraisal 4.Choosing appropriate methods of performance appraisal 5.Communicating appraisals to employees Types of Performance Evaluation Criteria (Step 1) Criteria on which employees are evaluated Trait-based: A subjective characteristic of the employee is evaluated such as attitude, creativity, initiative etc. to identify employee potential. But performance evaluations based on traits tend to be subjective n vague n are not suitable for making performance decisions. Types of Performance Evaluation Criteria (Step 1) Behaviour-based: Include evaluating an employee’s task-related behaviour. For a manager an appropriate behaviour to evaluate would be ‘developing others’ n for a sales person it could be ‘customer service orientation’. Behaviour–based information helps specify behaviours that are desirable to produce results in an organization Trait versus Behaviour •Behaviour could be a set of traits. A more reliable measure. Can be observed. Generally, tells us the underlying motive. •Trait can be labelled at a subjective level. Different related labels. Can be differently expressed in different people. Results-based: This criterion is appropriate for jobs in which measurement is easy n obvious n where there is tangible output. When ends are considered more important than the means, results-based measures are used. The focus of the employees shifts towards outcomes. Large tasks are divided into smaller, more specific, n time bound projects. But overemphasizing outcomes may result in low quality n even the use of unethical means to achieve the goals • Overemphasizing behaviours may lead to good quality products but the product delivery may overshoot deadlines resulting in lost business for the firm. It is important to balance both behaviour (quality or doing the right way) n results (accomplishing goals n meeting deadlines) Performance (Step 2) Standards •After identifying job or evaluation criteria, expected level of performance on each of these criteria is specified. Performance standards define what constitutes satisfactory job performance. •Standards or performance goals should be realistic, specific n clearly stated in quantifiable, measurable terms. For example ‘resolving customer complaints’ is not a clearly stated performance standard. When stated as ‘resolving customer complaints in the first instance 98% of the times’, it becomes precise. Determining who will Conduct Performance Appraisal by Evaluation (Step Customer 3) manager or supervisor appraisal Team appraisal Peer Appraisal SOURCES OF APPRAISAL INFORMATION Subordinate appraisal Selfappraisal Multi – Source Assessment Feedback System To rate on a 5 point scale: AT (4), MT (3), ST (2), RL (1), N (0) Appraisal parameters 1. 2. 3. 4. 5. 6. Leadership Factors Vision and strategic thinking Business acumen Influence Planning and execution Collaboration and teamwork People development Self-rating Peer-rating Appraisal parameters Thinking Factors 1. Analysis and judgement 2. Innovation and continuous improvement Relationship Factors 1. Interpersonal 2. Communication 3. Customer focus Self-rating Peer-rating Appraisal parameters Self management Factors 1. Initiative and drive 2. Result-orientation 3. Resilience 4. Integrity and ethics 5. Self development Overall Score Self-rating Peer-rating Multisource/360 Feedback Gained popularity in the Degree 1990s. An employee is appraised n receives feedback from supervisors, subordinates, peers, and/on customers. Provided anonymously to the employee Potential problems •Considerable anxiety for the employee when appraisals are negative •Customers, subordinates n peers may be biased •Evaluators may discuss an employee’s appraisals n violate privacy •Peers may deliberately evaluate a manager negatively to increase their own chances of promotion •There may not be a consensus between different Suggestions to Maximize Benefits of 360 Degree •Appraisal Training should be provided to the employees to enhance self-awareness for more accurate self-ratings • Steps must be taken to reduce organizational cynicism towards 360 degree appraisal to make them more inclined towards personal change • Negative feedback must be followed by encouragement n coaching • It is important to train all evaluators to provide valid evaluations • Cultural context should be kept in mind