performance management and performance appraisals
TRANSCRIPT
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Performance Management and Performance Appraisals
Dr. Thin Nwe OoAssociate Professor
Dept. of Management StudiesYangon University of Economics
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What is Performance?
Doing something successfully by using skills, knowledge and motivation
“Outcomes, results or accomplishments”
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Performance Management
a process to establish a shared understanding about what is to be achieved, and an approach to managing and developing people in order to achieve it
Getting better results for the organization via the measurement of individual performance
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Nature of Performance Management•Performance Management
Processes used to identify, encourage, measure, evaluate, improve, and reward employee performance Provide information to employees about their performance. Clarify organizational performance expectations. Identify the development steps that are needed to enhance
employee performance. Document performance for personnel actions. Informing and getting agreement on individual performance Facilitate them to achieve better results Provide rewards for achieving performance objectives.
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Performance Management is A Part of HRM Cycle
Recruitment & Selection
Performance Appraisal
Reward
Training and Development
Performance depends upon each of the four components and how they are coordinated
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Performance Performance Management Management
LinkageLinkage
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Types of Performance InformationTypes of Performance Information
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Performance Standards
•Performance Standards▫Expected levels of performance
Benchmarks, goals, and targets▫Characteristics of well-defined standards
Realistic Measurable Clearly understood Challenging
E.g. - Finish 20 bags per hour - Making 20 presentation with at least grade B in first semester - Innovate 3 new products in the first three months
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Performance Appraisal• “The systematic description of an
employee’s strengths and weaknesses” • The process of evaluating how well
employees perform their jobs when compared to a set of standards, and then communicating the information to employees.
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Performance Appraisal ▫Informal appraisals: ongoing basic within the
organization▫Formal appraisals: occurrence at certain intervals
throughout that person’s history of employment
Performance Appraisal is a part of Performance Measurement Process
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Uses of Performance Appraisal
Performance Appraisal
To provide rewards To provide training
To review potential
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Benefits of Performance Appraisal Individual
• Objectives can be established in relation the whole organization
• Key results and timescale can be established
• Can compare past performance and future activities against standards
• Can be known pay on the basis of performance
Organization• Suitable promotion
candidates can be identified• Areas of improvement can
be seen• Communication is improved• Basis for medium to long
term HR planning
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The Process of Performance Appraisal
•Step 1- Identification of criteria•Step 2- Appraise for a period of time•Step 3- Prepare an appraisal report by manager•Step 4- Appraisal interview•Step 5- Modify the report if necessary as a result
of interview•Step 6- Review of the assessment•Step 7- Prepare the action plan for improvement•Step 8- Implement the action plan•Step 9- Follow up the result
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Where to Appraise?
Common Performan
ce Measures
Quantity of Output
Quality of Output
Timeliness of Output
Presence at Work
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Appraisal Techniques
• Graphic Rating Scales• Check List• Essay• Behavioral Rating Scales• Management by Objectives (MBO)
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Traditional Traditional Performance Performance
Appraisal ProcessAppraisal Process
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Types of Appraisals
•Downward Appraisal•Upward Appraisal •Peer Appraisal•Self Appraisal•Customer Appraisal•Multi-source or 360 degree Appraisal
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Who Conducts Appraisals?
Supervisors rating their employees
Employees rating their superiors
Multi-source
Outside sources rating
employees
Team members rating each
other
Employees rating
themselves
Sources of Performance Appraisals
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Multi-source Appraisal
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Appraisal Interview
• Interview between Manger (may be one of the appraiser) and subordinate (appraisee)
• The purpose is to encourage collaborative problem solving and improvement planning
• Three styles of manager that can be adopted– Tell and sell– Tell and listen– Problem solving
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Appraisal Errors• Halo error: A situation in which a supervisor
generalizes from one dimension of a person’s job performance to all dimensions of performance.
• Error of central tendency: An error that occurs when a manager rates all employees average, even when their performances vary.
• Leniency error: A situation occurs when manager rates all employees in a group higher than they deserve.
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Why PA May Fail
Unclear Language
Mgr not taking PA seriously
Mgr not prepared
No on-going feedback
Mgr not honest orsincere
Ineffective discussion
Lack appraisal skills
Mgr Lacks Information
Insuff. Rewards
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Sources of Ineffective Performance Organization Policies and
Practices• Ineffective job placement• Insufficient job training• Lack of attention to employee
needs or concerns• Inadequate communication
within organization• Unclear reporting relationship
Job Concerns• Boredom job• Lack of growth or
advancement opportunities• Unsafe working conditions• Excessive workload• Lack of job skills
Personal Problems• Marital problems• Financial worries• Emotional disorders• Conflict between work
demand and family demand• Other family problems• Lack of effort
External Factors• Industry decline or extreme
competition• Conflict between ethical
standards and job demands
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Contemporary PA Concepts
Management by objectives (MBO)
360-degree feedback
Self-managed teams
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Self-Managed Teams
Characteristics• Focusing group result• Larger Span of control• More
part-time/contract workers
• More cross-functional workers
Challenges• Measuring individual
result Unfair & Hard• Quality and
commitment std. Diverse
• Measure cross-functional performance Tough
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