Ch1
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The document discusses performance management. It defines performance management as the continuous process of identifying, measuring, developing, and aligning employee and team performance with organizational goals. An ideal performance management system is strategic, thorough, practical, meaningful, specific, identifies effective and ineffective performance, is reliable, valid, acceptable and fair, inclusive, open, correctable, standardized, and ethical. It should also be integrated with other HR activities like training, workforce planning, and compensation.
Ch1
- 1. Prentice Hall, Inc. 息 2006 PERFORMANCEPERFORMANCE MANAGEMENTMANAGEMENT Herman AguinisHerman Aguinis Herman Aguinis, University of Colorado at Denver PERFORMANCEPERFORMANCE MANAGEMENTMANAGEMENT Herman AguinisHerman Aguinis
- 2. Herman Aguinis, University of Colorado at Denver Performance Management in Context:Performance Management in Context: OverviewOverview Definition of Performance Management (PM) The Performance Management Contribution Disadvantages/Dangers of Poorly-implemented PM systems Definition of Reward Systems Aims and role of PM Systems Characteristics of an Ideal PM system Integration with Other Human Resources and Development Activities
- 3. Herman Aguinis, University of Colorado at Denver Performance Management: DefinitionPerformance Management: Definition Continuous Process of Identifying performance of individuals and teams Measuring performance of individuals and teams Developing performance of individuals and teams and Aligning performance with the strategic goals of the organization
- 4. Herman Aguinis, University of Colorado at Denver PM is NOT performancePM is NOT performance appraisalappraisal PM Strategic business considerations Ongoing feedback So employee can improve performance Driven by line manager Performance appraisal Assesses employee Strengths & Weaknesses Once a year Lacks ongoing feedback Driven by HR
- 5. Herman Aguinis, University of Colorado at Denver Contributions of PMContributions of PM For EmployeesFor Employees The definitions of job and success are clarified Motivation to perform is increased Self-esteem is increased Self-insight and development and enhanced
- 6. Herman Aguinis, University of Colorado at Denver Contributions of PMContributions of PM For ManagersFor Managers Supervisors views of performance are communicated more clearly Managers gain insight about subordinates There is better and more timely differentiation between good and poor performers Employees become more competent
- 7. Herman Aguinis, University of Colorado at Denver Contributions of PMContributions of PM For Organization/HR FunctionFor Organization/HR Function Organizational goals are made clear Organizational change is facilitated Administrative actions are more fair and appropriate There is better protection from lawsuits
- 8. Herman Aguinis, University of Colorado at Denver Disadvantages/Dangers ofDisadvantages/Dangers of Poorly-implemented PM SystemsPoorly-implemented PM Systems for Employeesfor Employees Lowered self-esteem Employee burnout and job dissatisfaction Damaged relationships Use of false or misleading information
- 9. Herman Aguinis, University of Colorado at Denver Disadvantages/Dangers ofDisadvantages/Dangers of Poorly-implemented PM SystemsPoorly-implemented PM Systems for Managersfor Managers Increased turnover Decreased motivation to perform Unjustified demands on managers resources Varying and unfair standards and ratings
- 10. Herman Aguinis, University of Colorado at Denver Wasted time and money Unclear ratings system Emerging biases Increased risk of litigation Disadvantages/Dangers ofDisadvantages/Dangers of Poorly-implemented PM SystemsPoorly-implemented PM Systems for Organizationfor Organization
- 11. Herman Aguinis, University of Colorado at Denver Reward Systems: DefinitionReward Systems: Definition Set of mechanisms for distributing Tangible returns and Intangible or relational returns As part of an employment relationship
- 12. Herman Aguinis, University of Colorado at Denver Tangible returnsTangible returns Cash compensation Base pay Cost-of-Living & Contingent Pay Incentives (short- and long-term) Benefits, such as Income Protection Allowances Work/life focus
- 13. Herman Aguinis, University of Colorado at Denver Intangible returnsIntangible returns Relational returns, such as Recognition and status Employment security Challenging work Learning opportunities
- 14. Herman Aguinis, University of Colorado at Denver Returns and Their Degree of DependencyReturns and Their Degree of Dependency on the Performance Management Systemon the Performance Management System Return Cost of Living Adjustment Income Protection Work/life Focus Allowances Relational Returns Base Pay Contingent Pay Short-term Incentives Long-term Incentives Degree of Dependency Low Low Moderate Moderate Moderate Moderate High High High
- 15. Herman Aguinis, University of Colorado at Denver Purposes of PM Systems:Purposes of PM Systems: OverviewOverview Strategic Administrative Informational Developmental Organizational maintenance Documentation
- 16. Herman Aguinis, University of Colorado at Denver Strategic PurposeStrategic Purpose Link employee behavior with organizations goals Communicate most crucial business strategic initiatives
- 17. Herman Aguinis, University of Colorado at Denver Administrative PurposeAdministrative Purpose Provide information for making decisions re: Salary adjustments Promotions Retention or termination Recognition of individual performance Layoffs
- 18. Herman Aguinis, University of Colorado at Denver Informational PurposeInformational Purpose Communicate to Employees: Expectations What is important How they are doing How to improve
- 19. Herman Aguinis, University of Colorado at Denver Developmental PurposeDevelopmental Purpose Performance feedback/coaching Identification of individual strengths and weaknesses Causes of performance deficiencies Tailor development of individual career path
- 20. Herman Aguinis, University of Colorado at Denver Organizational Maintenance PurposeOrganizational Maintenance Purpose Plan effective workforce Assess future training needs Evaluate performance at organizational level Evaluate effectiveness of HR interventions
- 21. Herman Aguinis, University of Colorado at Denver Documentational PurposeDocumentational Purpose Validate selection instruments Document administrative decisions Help meet legal requirements
- 22. Herman Aguinis, University of Colorado at Denver Characteristics of an Ideal PM SystemCharacteristics of an Ideal PM System
- 23. Herman Aguinis, University of Colorado at Denver Congruent with organizational strategyCongruent with organizational strategy Consistent with organizations strategy Aligned with unit and organizational goals
- 24. Herman Aguinis, University of Colorado at Denver ThoroughThorough All employees are evaluated All major job responsibilities are evaluated Evaluations cover performance for entire review period Feedback is given on both positive and negative performance
- 25. Herman Aguinis, University of Colorado at Denver PracticalPractical Available Easy to use Acceptable to decision makers Benefits outweigh costs
- 26. Herman Aguinis, University of Colorado at Denver MeaningfulMeaningful Standards are important and relevant System measures ONLY what employee can control Results have consequences Evaluations occur regularly and at appropriate times System provides for continuing skill development of evaluators
- 27. Herman Aguinis, University of Colorado at Denver SpecificSpecific Concrete and detailed guidance to employees whats expected how to meet the expectations
- 28. Herman Aguinis, University of Colorado at Denver Identifies effective and ineffective performanceIdentifies effective and ineffective performance Distinguish between effective and ineffective Behaviors Results Provide ability to identify employees with various levels of performance
- 29. Herman Aguinis, University of Colorado at Denver ReliableReliable Consistent Free of error Inter-rater reliability
- 30. Herman Aguinis, University of Colorado at Denver ValidValid Relevant (measures what is important) Not deficient (doesnt measure unimportant facets of job) Not contaminated (only measures what the employee can control)
- 31. Herman Aguinis, University of Colorado at Denver Acceptable and FairAcceptable and Fair Perception of Distributive Justice Work performed evaluation received reward Perception of Procedural Justice Fairness of procedures used to: Determine ratings Link ratings to rewards
- 32. Herman Aguinis, University of Colorado at Denver InclusiveInclusive Represents concerns of all involved When system is created, employees should help with deciding What should be measured How it should be measured Employee should provide input on performance prior to evaluation meeting
- 33. Herman Aguinis, University of Colorado at Denver Open (Open (NoNo Secrets)Secrets) Frequent, ongoing evaluations and feedback 2-way communications in appraisal meeting Clear standards, ongoing communication Communications are factual, open, honest
- 34. Herman Aguinis, University of Colorado at Denver CorrectableCorrectable Recognizes that human judgment is fallible Appeals process provided
- 35. Herman Aguinis, University of Colorado at Denver StandardizedStandardized Ongoing training of managers to provide Consistent evaluations across People Time
- 36. Herman Aguinis, University of Colorado at Denver EthicalEthical Supervisor suppresses self-interest Supervisor rates only where she has sufficient information about the performance dimension Supervisor respects employee privacy
- 37. Herman Aguinis, University of Colorado at Denver Integration with other Human ResourcesIntegration with other Human Resources and Development activitiesand Development activities PM provides information for: Development of training to meet organizational needs Workforce planning Recruitment and hiring decisions Development of compensation systems
Editor's Notes
- #13: Base pay Hourly wages Salary Cost-of-Living & Contingent Pay Usually permanent increases in pay based on either cost of living or performance Covered in more detail in Module 11 Incentives (short- and long-term) Used to increase performance E.g., bonuses (short term) or stock options/ownership (long term) Income Protection Sometimes required under law, such as Social Security (what about unemployment insurance in the USA?) Disability pay, medical insurance, pension plans, savings plans Allowances E.g., housing transportation (e.g., company provides car)
- #14: Work/life focus (to help employee balance work/home life) Such as vacation time, flextime and telecommuting, services (e.g., counseling, financial planning, fitness activities) Relational Returns Such as recognition, status, employment security, challenging work, opportunities to learn, opportunities to form personal relationships
- #17: Note: the following is slide used before (some of this is not in Module 1) Links employee activities with organizations mission and goals Identifies results and behaviors needed to carry out strategy Maximizes extent employees exhibit those behaviors and results Only 13% of organizations use PM to communicate organizational purpose and goals