chapter 7 performance management. learning objectives understand the difference between performance...
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Chapter 7
Performance Management
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Learning Objectives
• Understand the difference between performance management and performance appraisal
• Understand the factors that impact performance from a holistic perspective
• Outline a model of the performance management process• Understand the benefits that may be achieved through effective
performance management• Explain potential sources of conflict in performance management at
both a systemic and individual level• Describe different performance appraisal methods and procedures• Understand good practice in relation to performance appraisal
methods
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Performance management and appraisal
• performance management - work design, reward structures, selection, training and development and assessment and policies for rewarding and improving performance
• Performance appraisal - the formal system that operates to set goals, monitor performance and establish consequences and improvement actions
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Performance Management provides a basis for:
• aligning behaviour to organisation’s strategic vision and mission
• establishing clear behavioural norms for employees and volunteers
• fair and objective basis for rewarding the relative contributions of different staff
• discussing career development • evaluating the effectiveness of HR processes • a system of employee information
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The Performance Management ProcessStage 1
Prepare/Revise individual job goals, accountabilities and relationshipsAgree with staff member on measures of performance for each accountability area e.g. Key Performance Indicators. Clarify values related to the job and behavioural
dimensions of performance. Clarify reward expectationsStage 2
Remove barriers to job performance Stage 3
Ongoing assessment of job performance; provision of feedbackStage 4
Formal review of action on previous appraisal recommendations; appraisal of performance against goals
Stage 5Establish new goals; identify performance improvement action
Stage 6Assess future career potential; plan next career steps and individual training and
development needsImplement performance improvement and career development strategies
Stage 7Recommend merit based adjustments to remuneration
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Stage 1
• define and agree on performance standards • clear and well communicated goals provide
direction, encourage above the norm levels of effort and serve as a basis for appraisal feedback later in the process
• developing criteria for performance appraisal and determining which aspects of a job are the most appropriate to use in measuring performance can be approached in numerous of ways
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Measuring coaching performance
Behavioural product factors
Team or athlete outcome measures
Personal outcome measures
Number of competitions won
Receipt of coaching awards
Improvement in placing over previous attempt
Upgrading of coaching qualifications
Improvement in skill levels Advice sought by other coaches
Behavioural process factors –task related
Direct task Indirect task
Application of strategies to enhance performance
Recruiting talented players
Applying coaching knowledge
Maintaining and applying relevant statistics
Effective communication
Behavioural process factors – maintenance related
Administrative Public relations
Adherence to policies and procedures
Relationship with stakeholders
Effective financial management
Liaison with community groups
(Adapted from MacLean & Chelladurai, 1995 and MacLean, 2001)
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Stage 2
• remove barriers that may inhibit performance
• provide appropriate levels of resources for a position or simply providing adequate tools
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Stage 3
• revisit performance on a regular basis and provide corrective feedback as required
• giving feedback is an important managerial competency
• important factors influencing receptivity are: comfort with feedback; propensity to seek feedback; mindfulness with which feedback is processed and sense of accountability to act on feedback
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Stage 4
• involves a formal review of the performance during the interval since the goal setting meeting
• use a style of interview that encourages joint problem solving
• encourage staff members to evaluate their own performance
• focus on factual data wherever possible and use specific examples to illustrate optimal and sub-optimal performance
• use inclusive language wherever possible • hold the interviews in a private and neutral setting and
allow enough time to properly deal with all the issues
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Stages 5 and 6
• Stage 5 - reaching consensus on any performance improvement actions that result from the review and setting new goals for the next performance period
• Stage 6 - a discussion about career planning and training stemming from Stage 5
• together these stages consist of the formal developmental component of the performance management process
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Stage 7
• determine and provide appropriate merit pay, financial bonuses, or nonfinancial rewards, based on the formal review of performance
• rewards may be provided on a continuous (e.g., commission) or graduated (levels) scale, for individual performance, or unit or organizational results
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Performance appraisal – common problems
• attempts to achieve too much • managers have been found to often experience
guilt about making negative judgements • employees may not be completely open about
their need for development • poor integration between organisational strategy
and the appraisal system• systems are not fully integrated into other HR
systems
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To minimise bias:
• Relate performance dimensions to a single activity (not groups of activities)
• Avoid overall ratings• Observe job behaviour regularly• Avoid ambiguous terms which can different
individual interpretations e.g. average• Train assessors to share a common frame of
reference
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Performance Appraisal Methods
1. staff may be compared with each other or compared to some absolute standard.
2. performance can be measured on staff member attributes, behaviours or results.
3. staff may be measured by managers, themselves or a wider group of respondents
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Sample performance ratings scale combing attributes and behaviours
Using the items in the rating scale, indicate your assessment of performance for each dimension by circling the appropriate rating
PerformanceItem
Rating Outstanding5
Above Standard4
At standard3
BelowStandard2
Poor1
Knowledge
Communication
Management Skill
Teamwork
Initiative
InterpersonalSkill
Creativity
Problem Solving
Willingness to Accept Responsibility
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Management by Objectives
4 steps
1. Goal Setting,
2. Delegating,
3. Ongoing Feedback
4. Overall Evaluation
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Effective performance management
• Top management commitment to performance management
• Use of multiple raters to reduce subjectivity• A self assessment component to increase employee
engagement• Compatibility between job design and appraisal method• A system tailored to organisational strategies, culture,
tasks and workforce• A structured process of performance appraisal to assist
managers• Clear performance measures• Ongoing feedback during the performance cycle• Recognition of organisational obstacles to effective
performance
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Summary
• Performance appraisal is a component of performance management that deals with the formal system of goal setting, review and consequent action to influence behaviour
• There are many benefits of effective performance management but there are also many common systemic and operational problems
• A stage model of performance management can be used to ensure effective management of both paid staff and volunteers in sport