Performance Management Chapters 1-4 PDF

PERFORMANCE MANAGEMENT CHAPTER 1: The Concept of Performance Management Mission -Appreciate the process involved in Performance Management Vision -Understand the Basic Principles in Performance Management What Is HR Performance Management? -A systematic way of managing people for innovation,...

PERFORMANCE MANAGEMENT CHAPTER 1: The Concept of Performance Management Mission -Appreciate the process involved in Performance Management Vision -Understand the Basic Principles in Performance Management What Is HR Performance Management? -A systematic way of managing people for innovation, goal focus, productivity, and satisfaction. According to Armstrong it is also a means of getting better results from the organizations, teams, and individuals by understanding and managing performance within the agreed framework of planned goals and competency requirements. According to Brumbach the roles of any managee can be seen in the following parts 1. Being- concerned with the competencies of the managee that are relevant to his/her performance 2. Doing- focuses on the managee’s activities that are variably effective at different levels in the organization: that affect performance of the roles dependent on the manage output, and the organizational performance as a whole. 3. Relating- emphasizes the nature of relationships with members of the role network-vertical, horizontal or otherwise. Framework to Understand Role Performance Three abilities or forces in an individual that are said to be essential for achievement 1. Motivation 2. Knowledge is Power 3. Action Four Types of Integration in PM 1. Vertical Integration- aligning objectives at organizational, individual, and team levels and integrating them for effective performance. 2. Functional Integration- deals with focusing several functional energies, plans, policies, and strategies onto tasks in different levels and parts of the organization. 3. HR Integration- ensure effective integration of different subsystems of HRM to achieve organizational goals with optimum performance. Subsystems includes; people management, task monitoring, job design, motivation, apprasisal and reward systems, and training and empowerment. 4. Goal Integration- arriving at congruence between the needs, aspirations, and goals of the employees with that of the goals and objectives of the organization. Basic Principles of Effective PM 1. Transparency- Planning, work allocation, guidance, and counseling and monitoring, and performance review should be effectively communicated. 2. Employee Development and Empowerment- Effective participation of employees/ team in the decision making process and treating them as partners in the enterprise. 3. Values- Fair Treatment and ensuring due satisfaction to the stakeholders of the organization. Treating people as human beings rather than a mere employees. 4. Congenial Work Environment- Create a conducive and congenial work culture and climate that would help people to share their experience, knowledge, and information. 5. External Environment- Effective and contextual management of external environment. Characteristics of Effective PM 1. Clarity of Organizational Goals 2. Evaluation 3. Cooperation but not control 4. Self Management Teams 5. Leadership Development 6. Honesty to ensure better and effective two-way communication 7. System of Feedback Annual Stock-Taking a performance audit function which apart from evaluations usual employee emphasize on measuring the proper alignment of performance results with the organizations’ and employees’ growth. For organization, stock taking of performance helps in achieving the goals by optimizing staff performance, duly identifying the strengths and weaknesses. Special Features that will make PM More Effective and Qualitative in the Achievement of Organizational Goals 1. Continuous Process- Planning performance and management, Monitoring Performance and Mentoring Development, and Annual Stock Taking should be implemented sequentially. 2. Flexible- Each manager and employee should have sufficient maneuverability to design process within the overall framework for PM. 3. Futuristic- Future planning and improvement. 4. Participatory- Regular and frequent dialogue between the manager and the employee. 5. Controlling- Measure employee's actual performance against planned performance, targets, standards or indicators. 6. Behavioral in Content- Employee's psychological behavioral aspects and personality traits, are critical inputs to the performance process. 7. Win-Win Philosophy- provides framework in which managers must support their employee's to succeed and to win KEYS TO HIGH PERFORMANCE -It requires high commitment, consistent leadership attention, time, and energy. Three Basic Principles Used by Leaders -Building trust -Encouraging Change -Measuring what is important WHY IS MEASURING ORGANIZATIONAL PERFORMANCE IMPORTANT? -Better Asset Management -Improved Measures of Organizational Knowledge -Increased To provide Customer Value -Impact in Organizational Reputation Measures of Organizational Performance 1. Productivity- is defined as the overall output of goods or services produced divided by the inputs needed to generate that output. 2. Organizational Effectiveness- is a measure of how appropriate organizational goals are and how well an organization is achieving those goals. 3. Organizational Ranking- is determined by specific performance measures. For instance, Fortune’s Top Performing Companies of the Fortune 500 are determined by financial results including, profits, return on revenue, and return on shareholder’s equity. Peter Drucker - well known management guru, ' the focus of the organization must be on performance. Multi-Source Feedback or 360-Degree Feedback -refers to a process whereby different observer groups (direct reports, peers, manager(s), and/or customers) provide individuals with feedback on their work behavior's and/or performance. The feedback receivers also rate themselves on those same aspects. MSF can impact the decisions in terms of; 1. Development 2. Pay and Promotion CHAPTER 2: Practices in Performance Management ‘Individual differences can influence behavior in organizations' Basic workplace literacy/ generic skills that employees need at work, -Reading -Writing -Speaking -Math -Problem Solving Skill varies from each workplace and employee depending on factors such as; -Industry and Sector -Job Function and Specific Duties -Use of technology in the workplace -Changing Job Requirements Let's talk about Workplace Privacy Workplace privacy is related with various ways of accessing, controlling, and monitoring employees' information in a working environment. -Why do managers must monitor what employees are doing? -Does it have a negative effect in emotional and physical stress? Workplace Violence is the act or threat of violence, ranging from verbal abus to physical assaults directed toward persons at work or on duty. -What factors are believed to be contributing to workplace violence? Dysfunctional work environments characterized by the following contributes to the problem: -Employee work driven by TNC (Time, Numbers, and Crises) -Rapid and unpredictable change -Destructive communication style -Authoritarian Leadership -Defensive attitude -Double Standards -Unresolved grievances -Emotionally troubled employees -Repetitive work -Faulty or unsafe equipment -Hazardous work environment Performance Appraisal Methods 1. Written Essays- evaluator writes out a description of an employee's strengths and weaknesses, past performance, potential, and suggestions for improvement. 2. Critical Incidents- evaluator's attention on critical or key behaviors that separate effective from ineffective job performance. 3. Graphic Rating Scales -one of the oldest and most use performance appraisal method. It consist of lists of set performance factors. 4. Behaviorally Anchored Rating Scales- the appraisers rate an employee according to items along a numerical scale, but the items are examples of actual behavior on a job rather than general descriptions or taints. 5. Multi-person Comparisons- compare one individual's performance with that of one or more others. The 3 most popular approaches to multi-person comparisons include group order ranking, individual ranking, and paired ranking. 6. Management by Objectives- it is the preferred method for assessing managers and professional employees. Employees are evaluated by how well they accomplish a specific set of goals. 8. 360 Degree Feedback- utilizes feedback from supervisors, employees, and co-workers. The EPI process model as depicted by The American Society for Training and Development 1.Performance Analysis 2. Cause Analysis 3. Intervention 4. Implementation 5. Change Management 6. Evaluation Performance Analysis is the process of identifying the organization's performance requirements and comparing them to its objectives and capabilities. Cause Analysis determining the root cause of performance problem. Some tools that can help the analyst uncover the root cause of the problem are; Brainstorming Cause and Effect Analysis System Modeling High Level Flow Charting  The Five-why's Technique Detailed Flow Charting Intervention/Team Building- is a collective term for various types of activities used to enhance social relations and def he roles within teams, often involving collaborative tasks. Types of Team -Problem Solving Team -Self Managed Work Team -Cross-Functional Team -Virtual Team Steps of Team Building Process Problem Sensing Examine Differences Giving and Receiving Feedback Developing Interactive Skills Follow-up Action Evaluation of Team Building Synergy -takes place when employees come together to make a greater impact than they would separately. Synergy results in high productivity, efficiencies and employee accountability SOCIAL LOAFING -Social loafing is the phenomenon where people tend to exert less effort to achieve a goal when they work in a group than when working alone. This is mostly applicable when individual contributions are not obvious CHAPTER 3: Organizational Structure What is Organization? -Organization may be described as an activity or people who are united by a common purpose. It can be described as a structure, a process, and as a group. As a Structure - according to Kast and Rosenzweig, is the established pattern or relationships among the component parts of the organization. CENTRALIZED VS DECENTRALIZED Centralized- Long and specific hierarchy of superiors and subordinates. Decentralized- Decision-making power is distributed among various levels of the organization. A Traditional Hierarchical Structure is typical for larger businesses and organizations. It relies on having different levels of authority with a chain of command connecting multiple management levels within the organization. The decision-making process is typically formal and flows from the top down. A functional organizational structure is a team structure that groups employees into different departments based on areas of expertise. This type of structure is one of the most common types in business, especially in larger companies, where groups of employees are organized according to the function they perform A flat organizational structure is one with limited management levels between the top business leadership and the ground-level employees. Employees may report directly to the business owner or answer to only one or two levels of management who oversee all of the team members. A divisional structure is a common organizational framework that groups business activities based on products, services, geographical locations, or markets. Each division within this structure operates as a semi-autonomous entity equipped with its own set of resources and functions. The purpose of a divisional organizational structure is to provide a targeted focus on specific products, regions, or markets, thereby increasing efficiency and agility. A matrix organization is a company structure where teams report to multiple leaders. The matrix design keeps open communication between teams and can help companies create more innovative products and services. Using this structure prevents teams from needing to realign every time a new project begins. -Traditional departments -Project teams across functional areas -Temporary or permanent -Utilises skills within the organisation -Effective communication -Increased morale As a Process- refers to certain dynamic aspects like what tasks are to be done, who is to do them, how the tasks are to be grouped, who is to report to whom and where the decisions have to be made. As a Group - is a collection of interacting and interdependent individuals who work toward common goals whose relationships are determined according to a certain structure. What is the benefits of Organization Structure? Properties of Modern Organizations 1.Social Entities Organizations exist to serve the needs of people. 2. Goal Directed-designed for purpose 3. Relatively Permanent created to last a long time 4. Structure-tasks are deliberately subdivided 5. Openness open system that both consumes resources and export resources, Determining the Kind of Structure by Peter Drucker 1. Activities Analysis - Finding out what activities are needed to attain the objectives of the enterprise. 2. Decision Analysis - Know the nature of authority and responsibility in different levels of operating management. 3. Relation Analysis - line and staff relations, subordinates and superiors. Principles of an Organization 1. Objectives 2. Division of Work 3. Definition of Jobs 4. Line and Staff Functions 5. Chain of Command 6. Parity of Authority and Responsibility 7. Unity of Command 8. Exceptional Matters 9. Span of Supervision 10. Balance 11. Communication 12. Flexibility 13. Continuity 2022/ 2023 Trends 1. Organizational Agility and Redefining Work Structures 2. Employee Well-being and Empathy-driven Leadership 3. Demographic Shifts in the Workforce 4. Adoption of Emerging Technologies and Al Chapter 4: INDUSTRIAL RESTRUCTURING -Restructuring is a process of reorganizing a business to improve its performance, efficiency, and competitiveness. It can involve changes in the financial, operational, strategic, or organizational aspects of the company. Restructuring can be driven by various factors, such as market shifts, technological disruptions, regulatory changes, or financial distress. The success of industrial restructuring implementation is possible if the following postulates are adhered to: Without and under laying competence in accessing complex situation (outside changes) an organization is unlikely to advance. The competence call for developing radical thinking skills and proficiency in strategic value innovation. Value innovation requires an organizational commitment to create a strategy momentum fo inside in changes. With organizational commitment the organization is more likely to advance in bringing inside-out change and attain breakpoints. CORE PRINCIPLES OF BUSINESS RESTRUCTURING - Customer Driven - Strategic in Concept - Concentrate in Key Business Process - Cross-functional Activities - Active involvement of Senior Managers - Flexible - Needs time and Dedication -Communication of clear vision Guidelines for Effective Restructuring 1. Driven from the top management 2. Treat people with respect and courtesy 3. The vision of industrial restructuring should be clear 4.Restructuring is a holistic philosophy 5.It is a continuous process 6. There should be a match between the process and needs. Advantage of Industrial Restructuring Improvement of customer satisfaction Reduction in staff turnover Waste reduction> Improve the quality Increased profitability Better organizational climate Increase sense of responsibility and commitment in HR of an organization Reduce administrative problems Rewards & Recognition Difference between Recognition and Rewards Rewards Tangible Rewarding accomplishments or milestones Monetary and non-monetary Top-down Recognition Intangible Encouraging more of the same behavior; aims to change the company culture Non-monetary Top-down Objective of Reward System Quality improvement and problem solving approach are recognized and rewarded; Teamwork and efforts to eliminate internal competition are encouraged by recognizing and rewarding successful practices; Promotion criteria include the action activities that support total quality in any organization. Strategic Guidelines for Reward and Recognition 1. Recognizing positive action and behaviors of employees 2. Recognizing manager for implementing total quality. 3. Develop promotion criteria that reinforce quality behavior. 4. Recognizing quality in bonus plan objective. 5. Have separate appraisal for salary revision. 6. Create a bonus plan for all benefits. 7. Introduce a gain sharing plan and share gain with employee for as long as the organization receive a return. FIVE ROLES OF LEADERS Challenging the process Inspiring a Shared Vision Enabling Others to Act Modelling the Way Encouraging the Heart