Performance Management System PDF

Chapter 5: Quality Standards and Employee Dimension --------------------------------------------------- - The features and characteristics of a product, and service, which bear upon its ability to satisfy a stated and implied need. - Fitness for purpose. - Meeting customer's requirement...

Chapter 5: Quality Standards and Employee Dimension --------------------------------------------------- - The features and characteristics of a product, and service, which bear upon its ability to satisfy a stated and implied need. - Fitness for purpose. - Meeting customer's requirements and exceeding their expectations - Doing things right the first time. Learning Objectives: -------------------- - Appreciate the quality standards before the implementation of performance management; and - Understand employee dimensions and its important contribution. Course Materials: ----------------- - - **Manufacturing process:** - **Design** - **Purchase** - **Process Engineering** - **Inspection** - **Delivery** - **Customer Order** - **Service Process** - **Development** - **Purchases** - **Customer Service** - **Validation** - **Training** - **Customer Order** - **International Organization for Standardization (ISO)** 1. 2. **Management responsibility** 3. **Quality system** 4. **Contract review** 5. **Design control** 6. **Documents control** 7. **Purchasing** 8. **Purchases -- supplied product** 9. **Product identification and traceable** 10. **Process control** 11. **Inspection and testing** 12. **Inspection measuring and test equipment** 13. **Inspection and test states** 14. **Control of non-conforming product** 15. **Corrective action** 16. **Handling, storage, packaging and delivery** 17. **Quality records** 18. **Internal quality audits** 19. **Training and development of the employees** 20. **Servicing** 21. **Statistical technique** - **Value for money** - **Customer satisfaction** - **Higher productivity** - **Increased profitability** - **Improved corporate image** - **Access to the global market** - **Growth of the organization** - **Higher morale of the employees** - **Analysis -- It involves an identification of the quality objective. A review of the existing quality system ensures of commitment of senior management and the development of the implementation plant.** - **Product and service specification -- The steps involved developing contract review, procedure, design, and development procedure.** - **Material Control - The 3^rd^ step involves the procedure for the specification bought in goods and services, a method for accessing sub-contractors, and the procedure for receiving raw material including sampling plant and control procedure for any material supplied directly by the customer.** - **Process Control -- The 4^th^ step requires a procedure for identifying the product through the conversion process and for maintaining tractability.** - **Inspection and Testing -- This step includes the method for in-process and final checking of the product. This stage should also include details of any statistical technique.** - **Quality Rewards -- This step requires a procedure for the maintenance and storage of quality system rewards. It also requires a procedure for periodic auditing of the systems. Procedures are also required for recording employees\' training.** - **Quality Manual -- A quality manual should be prepared which is a relatively brief document stating the business policy with respect to quality.** - **Quality System Design and Structure -- The company in India and the world over has undertaken only one of the formalized designs of the quality system as a process development.** - - **Empowerment of Employees** - **Reward and Recognition** - **Training and developments** - **Open communication** - **Employee's orientation** - **Sense of direction** - **Fact-based decision-making** - **Continuous improvements** - **Collaboration** - **Corporate citizenship** - **Develop a scenes' award specifically for those whose actions aren't usually in the limelight, make sure such awards are in the limelight** - **Create a best-ideas-of-the-year booklet and include everyone's picture, name, and description of their best ideas.** - **Feature the quality team of the month and put their picture in a prominent place.** - **Honor peers, who have helped you by recognizing them at your staff meetings** - **Let people attend meetings, committees, etc. in your place when you're not available.** - **Create a visibility wall to display information, posters, and pictures, thanking individual employees and their teams and describing their contributions.** - **Take interest in employees' development and set up appropriate training and experience to build on their initiatives.** - **Get your team's pictures in the company newspaper newsletter.** - **Ask people to help you with a project you consider to be especially difficult but which provides a real challenge.** - **Send a team to special seminars, workshops or meetings, outside that cover topics they are especially interested in.** - **Promote or nominate for promotion, those people who contribute most to improvement over a period of time.** 1. 2. 3. 4. **SEVEN HABITS OF HIGHLY EFFECTIVE PEOPLE** 1. 2. 3. 4. 5. - - - - - - 6. - - 7. **Developing Quality Culture in an Organization** **STEPS FOR CREATING QUALITY CULTURE IN AN ORGANIZATION** 1. **Removing organizational boundaries and internal competition.** 2. **Management thoughts and actions towards delivery its customers.** 3. **Using fact-based decision-making.** 4. **Continuous improvement must be encouraged. (Use of KAIZEN).** 5. **Do not use specially designed organizational structures for maintaining total quality.** 6. **A condition that strives to attain a world-class label is the need of the hour for companies. They must follow the seven quality maturity phases to achieve accelerated improvement.** **ILLUSTRATIONS ON HR DIMENSIONS DRAWN FROM CMM** 1. **Initial -- Processes are ad-hoc, chaotic, or actually few processes are defined.** 2. **Repeatable -- Basic processes are established and there is a level of discipline to stick to these processes.** 3. **Defined -- All processes are defined, documented, standardized and integrated into each other.** 4. **Managed -- Processes are measured by collecting detailed data on the processes and their quality.** 5. **Optimizing -- Continuous process improvement is adopted and in place be quantitative feedback and from piloting new ideas and technologies.** - **Critical to Quality: Attributes most important to the customer** - **Defect: Failing to deliver what the customer wants** - **Process Capability: what your process can deliver** - **Variation: What the customer sees and feels** - **Stable Operations: Ensuring consistent, predictable processes to improve sees and feels** - **Design for six sigma: Designing to meet customer needs and process cap** - **Fact Sheet -- Six Sigma in a nutshell. This is a simple, concise overview phrases, and concepts and basic activities are summarized.** - **Overview Document -- This document can be used to start a discussion explain key concepts and touch on the training elements required. It is a fact Sheet, but still easy and quick to take in.** - **Building a Six-Sigma Organization -- A document that pulls no punches commitment and skills needed to ensure a successful initiative.** - **Defining Requirements -- One of the most important aspects of under initiative is to understand what the requirements for the initiative are. They help the organization to define its service requirements for and improve only this document to be used to collect thoughts on what is required. It can similarly be used for other initiatives in HR, and other businesses.** - **Strive for as much precision in defining and measuring performance dimensions as is feasible.** - **Define performance with a focus on valued outcomes.** - **Outcome measures can be defined in terms of relative frequencies of behavior.** - **Define performance dimensions by combining functions with aspects of value (e.g., quantity, quality, and timeliness).** - **Link performance dimensions to meeting internal and external customer requirements** - **Internal customer definitions of performance should be linked to external customer satisfaction.** - **Incorporate the measurement or situational constraints.** - **Focus attention on perceived constraints on performance.** 1. **Quality -- The degree to which the process of carrying out an activity approaches perfection, in terms of conforming to some ideal way of performing the activity or fulfilling the activity's intended purpose.** 2. **Quantity -- The amount produced, expressed in such term as dollar value, number of units, or number of completed activity cycles.** 3. **Timeliness -- The degree to which an activity is completed, or a result produced, at the earliest time desirable from the standpoints of both coordinating with the outputs of other and maximizing the time available for the activities.** 4. **Cost-effectiveness -- The degree to which the use of the organization's sources (e.g., human, monetary, technological, material) is maximized in the sense of getting the highest gain or reductions in loss from each unit or instance use of a resource.** 5. **Need for supervision -- The degree to which a performer can carry out a job function without either having to request supervisory assistance or requiring supervisory intervention to prevent an adverse outcome.** 6. **Interpersonal impact -- The degree to which a performer promotes feelings of self-esteem, goodwill, and cooperativeness among coworkers and subordinates.** **Quality Performance in the Market Era** 1. **They can make comparisons of ratees' performance** 2. **They can make comparisons among anchors or performance level anchors and select one most descriptive of the person being appraised, and** 3. **They can make comparisons of individuals to anchors.** - **Indicate which ratee in each possible pair rates performed closest to the performance level described by the anchor or attained the highest level or overall performance. (Illustrative method: paired comparison)** - **Indicate how the ratees ranked in terms of closeness to the performance level described by the anchor (Illustrative method: straight ranking)** - **Indicate what percentage of the ratees performed in a manner closest to the performance level described by the anchor. (Note: the percentages have to add up to 100% for all the anchors within the job activity/function.) (Illustrative method: forced distribution).** - **Indicate which of the anchors fit the ratee's performance best (and/or worst). (Illustrative method: CARS, forced choice)** - **Whether or not the ratee's performance matches the anchor (Illustrative methods: graphic rating scales such as BARS, MBO)** - **The degree to which the ratee's performance matches the anchor. (Illustrative methods: all summated rating scales such as BOS and PDA methods)** - **Whether the ratee's performance was better than, equal to, or worse than the described by the anchor. (Illustrative method: Mixed standard scales).** - **Items should be directly linked to effectiveness on the job.** - **Items should focus on specific, observable behaviors (not traits, or competencies).** - **Items should be worded in positive terms, rather than negative terms. Ratees, particularly employees, may be less likely to respond honestly to negative items about their boss.** - **Raters should be asked only about issues for which they have firsthand knowledge (i.e., ask subordinates about whether the boss delegates work to them; don't ask peers since they may not know).** - **Select raters carefully by using a representative sample of people most critical to the ratee and who have had the greatest opportunity to observe his or her performance.** - **Use an adequate number of raters to ensure adequate sampling and to protect the confidentiality of respondents (at least three per source).** - **Instruct respondents in how the data will be used and ensure confidentiality.** - **To maintain confidentiality, raters should not indicate their names or other identifying characteristics and surveys should be mailed back directly to the analyst in a sealed envelope.** - **Alert and train raters regarding rate errors (e.g., halo, leniency, severity, attributional bias).** - **Separate the results from the various resources. The ratee should see the average, aggregated results from peers, subordinates, higher-level managers, customers, or other sources that may be used.** - **Show the ratee's self-ratings as compared to ratings by others. This enables the ratee to see how his self-perceptions are similar or different from other's perceptions.** - **Compare the ratee's ratings with other norm groups. For example, a manager's ratings can be compared to another manager's (as a group) in the firm.** - **Provide feedback on items as well as scales so ratees can see how to improve.** - **Use a trained facilitator to provide feedback to ratees.** - **Involve the ratee in interpreting his or her own results.** - **Provide an overview of the individual's strengths and areas for improvement.** - **Provide feedback on recommendations and help him or her to develop an action plan.** - **Provide opportunities for skill training in how to improve his or her behaviors.** - **Provide support and coaching to help him or her apply what has benn learned.** - **Over time, evaluate the degree to which the ratee has changed behaviors.** 1. **Identify what is to be benchmarked (a process, product, service, etc.)** 2. **Identify comparable companies.** 3. **Collect data to precisely define the target goal (benchmark).** 4. **Collect data to determine the organization's current performance level against the benchmark.** 5. **Reduce the target to discrete, measurable, smaller steps or goals.** 6. **Train, as needed, any employees so that they can meet the smaller goals (subgoals).** 7. **Periodically provide feedback and use appropriate, valued reinforces for meeting the subgoals.** 8. **Increase the subgoals so that they are getting closer to the target goal.** 9. **Recalibrate benchmarks periodically.** 1. **Leadership 9110 points)** 1. **Leadership System............................................................................. 80** 2. **Company Responsibility and Citizenship................................................. 30** 2. **Strategic Planning (80 points)** 3. **Strategy Development Process............................................................. 40** 4. **Company Strategy.............................................................................. 40** 3. **Customer and Market Focus (80 points)** 5. **Customer and Market Knowledge........................................................... 40** 6. **Customer Satisfaction and Relationship Enhancement..................\.............. 40** 4. **Information and Analysis (80 points)** 7. **Selection and Use of Information Data..........................................\........... 25** 8. **Selection and Use of Comparative Information and Data.......................\...... 15** 9. **Analysis and Review of Company Performance......................................... 40** 5. **Human Resource Development and Management (100 points)** 10. **Work Systems.................................................................................... 40** 11. **Employee Education, Training, and Development...................................... 30** 12. **Employee Well-Being, and Satisfaction.................................................... 30** 6. **Process Management (100 points)** 7. **Business Results (450 points)** 13. **Customer Satisfaction Results............................................................... 130** 14. **Financial and Market Results................................................................ 130** 15. **Human Resource Results...................................................................... 35** 16. **Supplier and Partner Results.................................................................. 25** 17. **Company-Specific Results.................................................................... 130** a. **Human Resource Development and Management (100 points)** 1. **Work systems (40 points)** a. ***Work and Job Design*** i. **Opportunities for individual initiative and self-directed responsibility in designing, managing, and improving company work processes.** ii. **Flexibility, cooperation, rapid response, and learning in addressing current and changing customer and operational requirements.** iii. **Effective communications, and knowledge and skill sharing across work functions, units, and locations.** b. ***Compensation and Recognition*** 2. **Employee Education, Training, and Development (30 points)** a. ***Employee Education, Training, and Development*** i. **How the education and training address the company's key performance plans and needs, including long-term employee development objectives.** ii. **How education and training are designed to support the company's approach to work and jobs. Include how the company seeks input from the employees and their managers in education and training design.** iii. **How education and training, including orientation of new employees, are delivered.** iv. **How knowledge and skills are reinforced on the job.** v. **How education and training are evaluated and improved, taking into account company performance, employee development objectives, and costs of education and training.** 3. **employee Well-Being and Satisfaction (30 points)** a. ***Work Environment*** b. ***Employee Support Services*** c. ***Employee Satisfaction*** i. **A brief description of formal and informal methods used. Outline how the company determines the key factors that affect employee well-being, satisfaction, and motivation and assesses its work climate. Note important differences in methods, factors, or measures for different categories or types of employees, as appropriate.** ii. **How the company relates to employee well-being, satisfaction, and motivation results to key business results and/or objectives to identify improvement activities.** 1. **Frequency and timing of formal appraisals** - **Number of times per year (e.g. one per year, every six months, quarterly?)** - **Time period (e.g., anniversary of hire, after project completion)** 2. **Rating/data Collection medium** - **Computerized data collection/ data tabulation/ integration into database** - **Hard copy for personnel file and sign off?** - **Use of technology for performance data collection and monitoring** - **Computer programs that can monitor rater rating tendencies.** 3. **Training Programs** - **For raters, ratees, administrators** - **Scheduling/ assessments/ follow-up** 4. **Method of feedback** - **Feedback via computer versus scheduled sessions** - **Feedback based on comparisons to other employees/companies** - **Formal feedback sessions with supervisors, team consultants, coaches.** Activity (10 pts.) ------------------ I. **Answer the following:** 1. What do you mean by industrial restructuring? What are the important postulates for implementing restructuring? 2. Explain the core principles of business restructuring in detail. 3. What are the advantages of industrial restructuring? Explain the important guidelines for effective restructuring. 4. What is the objective of the rewards system? Explain the principles for evaluation of the reward system. 5. What is ISO 9000? Explain its elements briefly. 6. Explain the seven habits of highly effective people. 7. Explain the different roles and features of a leader in the present scenario. 8. How you will create a quality culture in an organization? Explain the steps in the development of quality culture in the organization. 9. How will you maintain quality standards in the organization? Explain the different dimensions of it. 10. Explain the Six-Sigma approach for the development and growth of an organization. II. **Case Study: use the Standard Case Analysis Format** **A Case Study on the Business Performance Management of Hilton Hotels Corp**