Performance Management - Part 1 PDF

Human Resource Management (HRM) Performance Management – Part 1 Lecturer: Dr Brigid Milner, Chartered FCIPD Lecturer in Strategic & International HRM School of Business...

Human Resource Management (HRM) Performance Management – Part 1 Lecturer: Dr Brigid Milner, Chartered FCIPD Lecturer in Strategic & International HRM School of Business 1 1 1  Overview QUESTIONS DEFINING PERFORMANCE MANAGEMENT A MODEL OF STRATEGIC HRM & OVERVIEW OF PERFORMANCE MANAGEMENT PROCESS CASCADING OBJECTIVES 2 2 2  Questions! 3 3 3  1. What factors drive superior employee performance? 2. What would you consider to be underperformance by an employee? 3. What factors contribute to employee underperformance? 4 4 4  Defining Performance Management 5 5 5  PERFORMANCE MANAGEMENT - DEFINITION “...performance management (PM) is a continuous process that links together performance, motivation, individual goals, departmental purpose and organisational objectives. It incorporates central HRM issues from recruitment, induction, training and development and reward management through to capability procedures and termination” Marchington et al (2016) HRM at Work 6 6 6  PERFORMANCE MANAGEMENT - DEFINITION “Performance management is the continuous process of improving performance by setting individual and team goals that are aligned to the strategic goals of the organization, planning performance to achieve the goals, reviewing and assessing progress, and developing the knowledge, skills and abilities of people”. Armstrong & Taylor (2020) Armstrong’s Handbook of HRM Practice 7 7 7  PERFORMANCE MANAGEMENT - DEFINITION “Performance Management is concerned with establishing and measuring employee goals in order to improve individual and organizational performance” Carbery & Cross (2019, p.122) 8 8 8  A Model of Strategic HRM and relationship to Training & Development, Performance Management, and Reward – a Reminder! 9 9 9  MODELS OF STRATEGIC HRM – CONTINGENCY/FIT Fombrun, Tichy and Devana Model A sub-set of Feedback Performance Management Loop 10 10 10  Key HRM Activities Corporate/Organisational and Objectives and Strategy HRM objectives and strategy Attract and select competent people who will also fit the culture Improve, Induct, train, redeploy or move appraise and Part of the out those who do develop to achieve not achieve employee performance targets or fit the standards and fit experience culture the culture Individual & Organisational Performance Provide an Sustain the internal career culture relating to system and the standards of ensure performance , management quality and succession commitment Offer relevant incentives and rewards for those who perform well and fit the culture 11 11  Overview of Performance Management 12 12 12  PERFORMANCE MANAGEMENT – A TYPICAL PROCESS (FORMAL & ON-GOING) E.g. using a calendar year Planning Planning performance Performance – meeting in January - setting direct report with their individual line manager objectives Decisions around learning & Learning/Training/ development , reward, Actioning Development that was On-going Development promotion, and conversations(Jan-Dec) agreed in final review dealing with Plan in previous year is and feedback on underperformance performance to direct arranged and report from their line implemented manager -> Performance Management Final review meeting Review of performance against between direct report and their line manager agreed objectives is reviewed in e.g. June/July: continue Final Review Interim Review November/December unchanged; reset objectives; - assessment of of of take corrective action e.g. overall performance Performance Performance further training and/or PIP 13 13  OBJECTIVE/GOAL SETTING IN THE CONTEXT OF PERFORMANCE MANAGEMENT 14 14 14  CASCADING OF OBJECTIVES Senior Leadership Team 15 15 15  CASCADING OF OBJECTIVES: OBJECTIVE SETTING FEATURES Objective-setting -> ‘SMART OBJECTIVES’ S = Specific/stretching – clear, unambiguous, straightforward, understandable and challenging M = Measurable – quantity, quality, time, money A = Achievable – challenging but within the reach of a competent and committed person R = Relevant – relevant to the objectives of the organisation so that the goal of the individual is aligned to corporate goals T = Time framed – to be completed within an agreed time scale 16 16  CASCADING OF OBJECTIVES – AN EXAMPLE VP of Marketing/ Director of Marketing Senior Leadership Team VP of Marketing/ Director of Marketing -> head of function Sales Manager Sales Representatives Team Individual Sales Representatives 17 17 17  18 18 18