Unit 4 Session 2.pptx

Online MBA Semester I Organizational Behaviour and Human Resource Management Course code - (OMBA-103) Unit 4 : Lesson 2 : Organizational behaviour and Human Resource Management Part 2 PART 2: LEARNING OUTCOMES At the end of the session you will know about: 1.Various methods of performance appraisa...

Online MBA Semester I Organizational Behaviour and Human Resource Management Course code - (OMBA-103) Unit 4 : Lesson 2 : Organizational behaviour and Human Resource Management Part 2 PART 2: LEARNING OUTCOMES At the end of the session you will know about: 1.Various methods of performance appraisal 2.Modes of communicating appraisals to employees 3.Key elements of an ideal performance management system 4.Cultural dimensions of performance management 5.Key performance indicators (KPIs) 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 Methods of Performance Appraisal (Step 4) Trait-based • • • • • methods Graphic rating scales Forced-choice method Essay method Ranking method Forceddistribution method Behaviour-based methods • Critical-incident technique • Checklists • Behaviourally anchored rating scales Results-based methods • Productivity measures • Management by objectives Critical Incident Technique: Situational analysis technique in which the actions and behaviour of an employee (say, a customer service event) is recorded and examined. Effectiveness and Efficiency as Dimensions of Effectiveness: What to do. Productivity The degree to which objectives are achieved and the extent to which targeted problems are solved. Effectiveness is about doing the right task, completing activities and achieving goals. Effectiveness and Efficiency as Dimensions of Efficiency: How to do. Efficiency is defined as the ability to produce something with a minimum amount Productivity of effort. An example of efficiency is a reduction in the number of workers needed to make a car. Efficiency is about doing things in an optimal way, for example, doing it the fastest or in the least expensive way. It could be the wrong thing, but it was done optimally. Graphic or Linear Rating Scales Graphic Scale Rating Graphic Rating Employee Name ........................... Scale Department ................................. Job Title ....................................... Performance Level Work Dimension Poor Fairly Poor Fairly Good Attendance ✔ Behavior towards Subordinates ✔ Sincerity Dependability Good Excellent ✔ ✔ Forced Method • Choice Rater is given series of statement, arranged in blocks of two or more. •The rater indicates which statement is most or least descriptive of the employee Advantage : Absence of personal bias Disadvantage : Statements may not be properly framed Forced Method Choice •In the forced choice method the rater is forced to select statements which are readymade •The rater is asked to indicate which of the phrases is the most and least descriptive of a particular worker •Favorable qualities earn plus credit and unfavorable ones earn the reverse Forced Method Choice Employee Rank A 2 B 1 C 3 D 5 E 4 Forced Method Distribution Critical technique incident The critical incident technique involves observation and recording of examples of particularly effective or ineffective behaviors. Behaviors are judged to be "effective" or "ineffective" in terms of results produced by the behavior. Critical incident The following information should be recorded for each technique "critical incident" of behavior: (1)What led up to the incident and the situation in which it occurred (2) Exactly what the employee did that was particularly effective or ineffective (3)The perceived consequences or results of the behavior (4)A judgment as to the degree of control an employee had over the results his or her behavior produced (to what degree should the employee be held responsible for what resulted?). Example Incidents 1."My young son Critical was flying alone from Halifax, NS to Vancouver, BC with a connecting flight in Calgary, and was to be assisted by a flight attendant for the entire journey. At the Calgary airport, she left him alone with no one to escort him to his connecting flight. He was scared by the experience and nearly missed his flight". 2. "I was on a flight to Toronto with my children. During the flight, my 4-year old son became airsick. The flight attendant was very attentive, asked how he was feeling, helped to calm him down and cared for him. It made a stressful situation much more manageable". Communication of Appraisals 1. One-way communication (Tell n (Step 5) Sell Approach): The supervisor is in the dominant position n communicates the appraisal n the action plan for subordinate’s improvement. The latter must accept both the appraisal & the developmental plan without expressing his feelings (lowered motivation n defensiveness) 2. Two-way communication (Tell n Listen Approach): In this type of appraisal interview, the subordinate can express his feelings about the information provided…can express his disagreement with the appraisal (lowered defensiveness) Communication of Appraisals (Step 5) 3. Mutual problem-solving : Serves both evaluative n developmental purposes. Two-way communication but most effective. The subordinate plays an active role in appraising his own performance n developing action plans for improvement The Key Elements of an Ideal Performance A.The Company’s Mission Statement Management System Employees must see a connection between organization’s mission and their performance appraisal for which they are held accountable The organizational strategy reflected in mission, vision, and core values of the organization must form a close link with every individual’s day-to-day performance. B. Carefully Designed Appraisal Form Focuses organizational energy on the issues of highest priority. An ideal form has five parts: •The first two sections identify and assess competencies i.e. the way the person does the job i. Universal, Organization-Wide Competencies ii. Job-specific Competencies • The next two components of the form relate to what the person actually accomplishes i.e. the results dimension i.Key Job Responsibilities listed in a well-written job description ii.Goals and Major Projects that go well beyond the key job responsibilities •The final element of an ideal performance appraisal form is the one that research suggests is the most important: A brief enumeration of the individual’s most important achievements and accomplishments. C. Understanding of the Cultural Contingencies • The cultural dimensions of the performance management systems are, by far, the most salient in the 21st century work environment • For attaining sustained competitive advantage it is imperative for organisations to customize performance management keeping in view workforce diversity. •Experts say companies often impose an American style of performance management on employees based in other countries, even when such a system conflicts with local cultural norms •A better approach, they say, is to adapt the system to fit the culture. The nature of the employee/employer relationship varies widely from place to place. •Though far from perfect, and often dreaded, the American performance appraisal process suits the American culture, which is regarded as highly individualistic and egalitarian (Hofstede, 2001). Cultural Relativity • Pay-for-performance system is inappropriate in other cultures. • The focus is on interpersonal relations and collectivism. Example: (Hofstede, 2005) • In Japan, compensation is not based on performance. • It is rather hard to identify the individual performance because the focus is the team. •Key Result Areas: KRAs are defined objectives that are vital to the performance of an individual employee, a department, or an organization. •Key Performance Indicators: A KPI is a quantifiable metric that helps assess whether an organization, department or employee is meeting certain objectives. Key Result Areas also called “Key Performance Areas” (KPAs) refer to general areas of outcomes or outputs for which a role, or a combination of roles, is responsible. These are the areas within the organisation where an individual or group (as per role) is logically responsible / accountable for the results. A key result area is simply a measure of performance. A key performance indicator is used to measure performance but also to track progress. Examples of KRAs include: Revenue, Profitability, Customer Satisfaction, Employee Engagement (Output) Key Performance Indicators Definition and A quantifiable measure a company uses to determine Examples how well it's meeting its operational and strategic goals