report on performance management

7/28/2019 Report on Performance Management

1/95

Report Title: Performance Management

1GROUP H MBA 3rd M1

Human Resource Management

Report Title:

Performancemanagement

13 FEB,

201

2


2/95


In the name of

ALLAH

The most Gracious,

The most Merciful

2GROUP H MBA 3rd M1


3/95


Department of Management Sciences

Group Name: H

Group Members: Aimen Tanveer 01

Asma Hameed 05

Muhammad Waqas 27

Muntaha Tatheer 28

Sayda Rahat Rafique 36Mudassar Zaid 42

Subject: Human Resource Management

Stage/ Year: MBA 3rd (14 yr M1)

Study Mode: Full time

Lecturer Name: Hassan Danial Aslam


Due date: 13 Feb- 2012

3GROUP H MBA 3rd M1


4/95


Submitted date: 13 Feb- 2012

Plagiarism disclaimerWe understand that plagiarism is a serious offence and have read and understood the University

policy on plagiarism. We also understand that We may receive a mark of zero if we have notidentified and properly attributed sources which have been used, referred to, or have in any wayinfluenced the preparation of this report, or if we have knowingly allowed others to plagiarize ourwork in this way.We hereby certify that this report is our own work; based on our personal study and research, and

that we have acknowledged all material and sources used in its preparation. We also certify that

the report has not previously been submitted for assessment and that I have not copied in part or

whole or otherwise plagiarized the work of anyone else, including other students.

Signed & dated: 13-02-2012

4GROUP H MBA 3rd M1


5/95


5GROUP H MBA 3rd M1


6/95


6GROUP H MBA 3rd M1

Dedication

This report is dedicated to our

Lovely and most respectfulParents and Teachers


7/95


We wish to express our genuine gratitude to Mr. HASSAN DANIAL; lecturer of Department of

Management Sciences IUB, for providing us an opportunity to do our report work on Human

Resource Management related to our subjected matter. This review highly supports us to

understand the concepts and applications of HRM. We want to express a sense of gratitude and

love to Allah and then to our friends, group members and our beloved parents for their manual

support, discussions, strength, help and for everything.

7GROUP H MBA 3rd M1


8/95


Table of content

1. Introduction

1.1. Determinants of Performance

1.2. Environmental Factors as Performance Obstacles

2. Introduction; Performance Management

2.1. Responsibilities of Human Resource Department in Performance

Management

3. Performance appraisal

3.1.Introduction and uses

3.2. Why appraise performance?

3.3. The Supervisors Role

3.4.Steps in Appraising Performance

4. Basic Concepts in Performance Appraisal and Performance

Management

4.1. Comparing Performance Appraisal and Performance

Management

4.2. Why Performance Management?

8GROUP H MBA 3rd M1


9/95


4.3. Defining Employees Goal and Work Efforts

5. Elements of Performance Appraisal

5.1. Performance standards

5.2. Performance measures:

6. Performance appraisal process

6.1. Job analysis

6.2. Design a Performance appraisal system

6.3. Performance review:

6.4. Setting a plan of action

7. Who conducts the performance appraisal?

7.1. Supervisor:

7.2. Co-workers:

7.3. Employees themselves:

7.4. Subordinates:

7.5. Computers:

7.6. Customers:

7.7. The job itself:

7.8. 360-Degree Feedback:

8. Past Oriented Appraisal Methods

8.1. Rating Scales

9GROUP H MBA 3rd M1


10/95


11/95


11. Strategies for Effective Performance Appraisal Systems

11.1 Objectives for performance appraisals

11.2 Formal versus informal performance appraisals

11.3 Objective Vs. subjective performance appraisals

11.4 Frequency of performance appraisals

11.5 Types of performance appraisal methods

11.5.1 Selecting a performance appraisal method

11.5.2 Tips for developing a legally defensible performance

appraisal system

11.6 Strategy and the performance appraisal process

11.6.1 Organizational strategy

12. Developing performance improvement plans

12.1The Changing Nature of Workplace

12.3 The Role of HR in creating integration

12.3 High Performance Work Practices

12.4 How can HR help to implement high-performance work practices?

12.5 Reward strategies

12.6 Need to revise reward strategy

12.7 What reward strategies are appropriate in changing organizations?

11GROUP H MBA 3rd M1


12/95


12.8 How do people wanted to be rewarded?

12.9 Conclusion

13. Models for performance management

14. Performance Appraisal Challenges

15. How to avoid appraisal problems

IntroductionPerformance is the degree of accomplishment of the tasks that make up

an employees job.

It is measured in terms of results that how well an employee is fulfilling the

requirements of the given job. Sometimes it is mixed with the term effortthat actually refers to the energy spent (Byars and Rue, 2006; Dessler and

Varkkey, 2008).

1.1Determinants of Performance

Job performance is determined by efforts, abilities and role perception of an

employee. So, particularly performance is measured by all three

determinants as it interrelationship among all. Efforts, performing a task as

being motivated, spend an acceptable amount of mental and physical

energy. Abilities, individuals personality traits used in performing a taskwell. Role perception refers to how the individual should direct himself to

perform the job (Byars and Rue, 2006).

To achieve high level of performance all above features of job performance

must be incorporated. The level of proficiency in any of the component has

a tremendous effect on other because one component is not properly



13/95


maintained while performing any task the performance of employee will go

negative (Byars and Rue, 2006).

1.2Environmental Factors as Performance ObstaclesAlong with the determinants effort, abilities and role perception there are

also some uncontrollable factors which also effect job performance. These

obstacles are usually conflicting job hours, improper facilities and

equipments, conservative policies, lack of cooperation, supervision style,

temperature, lightening, noise, pacing of equipments, shifts time.

Environmental factors are indirect determinants of individual performance

and modifying factors for direct determinants. Poor ventilation, worn out

equipments, unclear policies, lack of training can affect individuals

performance. This is the responsibility of management to provide its

employees the best working conditions with supportive environment to

maximize performance (Byars and Rue, 2006).

2.Introduction; Performance Management

In any organization, performance management acts a role of a backbone

among the practices of human resource management. It has been realized

widely that performance management practices have the ability to

determine employees motivational level and can act as a strong tool that

can convert employees possible capabilities in to their performance. To

make sure the practical implementation of performance management,

different organizations are following different approaches. Although

according to experts there is no single model and strategy among

performance management practices that can be applied universally and can

serve as effective & workable as well. Therefore, understanding about

practical implementation of widespread issues that include compensation

and reward, acknowledgement techniques, setting of performance goals

and their appraisal , quality of work facilities to execute the task assigned

and awareness about possible danger to judge about capabilities of peopleare to be needed. All these practices should put in a straight line to make a

single strategy and model of performance management

2.1Responsibilities of Human Resource Department in Performance Management



14/95


Performance management system can be incorporated by the coordination

of human resource department and organizations management that is

responsible for conducting appraisal system (Dessler and Varkkey, 2008).

Responsibilities of HR department are;

Creating the design of performance management system and

selecting the methods for appraising employees.

Providing training to management personnel for conducting

performance appraisals

Appraisals are conducted on timely basis, for this purpose a reporting

system is maintained (Dessler and Varkkey, 2008).

In performance appraisal system the responsibilities of managers are;

Employees performance evaluation.

Ensuring that forms are completed by employees and are returned to

human resource department.

Maintaining review system with employees.

Establishing employees improvement plans (Dessler and Varkkey, 2008).

3.Performance appraisal

3.1Introduction and UsesPerformance appraisal is referred to as assessment of an employees job

performance for establishment of improvement plans .Appropriate

performance appraisal system not only helps management in performance

assessment rather have a great impact on enhancement of effort and task

direction to be performed. It is most commonly being used in decisionmaking for the determination of promotions, lay offs, firings and merit pay

increases. An employees performance is a significant factor while

determining promotion given to a person. It is not always the case that an

efficient performer can also perform effectively when promoted to a higher

rank, for this purpose some predictive information is also provided (Dessler

and Varkkey, 2008; Werther and Davis, 1996).



15/95


This system helps management as follows;

Input to the validation of selection procedure.

Input to human resource planning.

Input to the validation of selection procedure

The predictive information provided helps out management in determining

required inputs for training and development of individuals and

organization. It helps in identification of individuals strengths and

weaknesses and also organizations required training and developments

(Dessler and Varkkey, 2008).

Input to human resource planning

Performance appraisal system is also used to persuade performance of

employees regarding recommended changes in behavior, attitude, skills,

knowledge and abilities. This feedback helps employees in fulfilling

managers expectations regarding their performance and managers can

also coach and train employees to influence their work efforts. A major

concern is to determine frequency of appraisals, often performance

appraisal is conducted annually in organizations but it is suggested to that

most of the employees need informal performance appraisals to beconducted twice or thrice in a year in addition to formal one. Because they

have to know the type of job they are doing, in case of dissatisfactory

performance what measures could be taken for improvement (Dessler and

Varkkey, 2008).

3.2Why appraise performance?There are several reasons to appraise performance of an employee; these

are mentioned as follows;

Appraisals play a vital role in performance management systems in order to

interpret organizations strategic goals into particular employees goals and

then provide training accordingly. It helps to develop a plan for correcting

deficiencies if any and to emphasize the things done effectively by workers.

It provides the break through to evaluate employees performance, through

his or her own strengths and weaknesses to offer career planning. It



16/95


provides guidelines for decision making regarding promotions and pay rise

(Dessler and Varkkey, 2008; Byars and Rue, 2006).

3.3The Supervisors RoleAs the role of supervisor is concerned, performance appraisals would be

quite challenging for them therefore its their responsibility to provide

honest services to their employer and to subordinates as well rather to rate

them too high or too low. Therefore they must have known how about

techniques to be used and problems to be occur to conduct fair appraisals


HR department formulate policies and provides general guidelines to

operating units heads for their implementation. While in some firms, HR

department prepares detailed forms and all departments use them, they

also train supervisors for better implication of appraisal system. HR

department monitors the system and ensures that rules and procedures

being implicated must comply with EEO laws (Dessler and Varkkey, 2008).

3.4Steps in Appraising Performance

Performance appraisal system is a three step process that contains;

Define a job, satisfaction of job duties and values.

Appraise performance, evaluating performance and comparing it with

standards to measure the difference by using ratings.

Feedback, performance progress and improvement plans.

Generally appraisals are conducted using predetermined and formal

methods. The most important concerns of appraisal tools used are; what to

measure and how to measure? What to measure refers to particulardimensions such as quality, quantity and timeliness of work completed.

While how to measure refers as different ranking and rating methodologies

used (Dessler and Varkkey, 2008).



17/95


4. Basic Concepts in Performance Appraisal andPerformance Management

All the organizations conduct formal and informal methods of appraising

performance of their employees. Performance appraisal is the evaluation of

an employees current or past performance regarding his or her

performance standards. It also supposes that employee understanding

about his or her standards and also supervisor provides with feedback,

development and incentives needed to improve performance above par


4.1

Comparing Performance Appraisal and Performance

Management

Performance management is taken up by many managers as integrated

process of setting up of goals, providing training to employees and also

rewards system. Performance management is defined as a process that

consolidates goal setting, performance appraisal and development into a

single, common system whose basic purpose is to make sure that

employees performance is according to companys goal. It includes that

practices by which employees goals and work, capabilities, evaluation and

rewarding an employees efforts along with the organizations frame work(Dessler and Varkkey, 2008).

4.2Why Performance Management?

Performance management put stress on integrated nature of setting up of

goals, appraisal and development. It also shows that traditional methods

are not only ineffectual but also counterproductive. It is also helpful in

recognizing individual employee contribution towards the achievement of

organizational goal. It also helps in continuous improvement that is amanagerial philosophy continuously set higher quality, costs, delivery and

availability. It also eliminates wastage like over production, defective

production, unnecessary down time, transportation, processing cost, motion

and inventory. The main idea is each and every employee must

continuously improve his or her performance throughout the time period

provided to prove them (Dessler and Varkkey, 2008).



18/95


4.3Defining Employees Goal and Work EffortsAccording to the performance management process employees efforts must

have to be goal directed. First of all, appraisal should be conducted on the

basis of how an individual performs according to his own

standards and expectations. Secondly, the goals set by

the employees and their performance standards must

comply with companys strategic goals.

Assign specific goals.

Assign goals that should be measurable.

Assign goals that should be challenging but achievable.

Persuade employee participation. (Dessler and Varkkey, 2008).

5.Elements of Performance AppraisalWhile conducting an effective performance appraisal performance related

standards, measures of those criteria and feedback given to HR department and

employees must have to be identified. If such measures and standards are not jobrelated incorrect evaluation will results in biased results, spoiling manager and

employee relationship and also violation of equal opportunity law. And without

effective feedback HR departments information system will not be able to provide

accurate records on which decisions are made (Werther and Davis, 1996; Byars

and Rue, 2006).

HR department develops different performance appraisal approaches for

managers, professionals workers and all other groups to ensure standardization

that will help in comparing the results. HR department itself conducts performance

appraisal quite often may be once a year but if supervisors evaluates the

performance of employees 92% of the time it would be the best. However 360-degree evaluation i.e. being evaluated from all directions gives additional

viewpoints (Werther and Davis, 1996).

Practicality; in the system must be ensured because impractical system may

result in bitterness and confusion.



19/95


Standardization; is intensively required to carry on even practices. A

standardized system can result in well thought out standards and measures

(Werther and Davis, 1996).

5.1Performance standards

Performance standards are the benchmarks for the measurement of

performance. To conduct effective performance appraisals standards should

be job related. With the help of job analysis particular performance criteria

are revealed by observing the current employees on the job. There should

be a written record of standards to be advised to employees before

evaluation. Performance of each employee must have to be critically

analyzed through job analysis (Werther and Davis, 1996).

5.2Performance measures

Performance measures are those ratings used to evaluate performance.

These measures should be easy to use, consistent and analyze critical

behaviors for the purpose of effective performance appraisal. While

conducting job analysis, analyst should observe critically. These

observations can be direct or indirect. Direct observations method is

conducted when analyst watches the performer directly doing his work.

Indirect observations are when analyst only observes subtitles, these

subtitles are called constructs. Like evaluation of a telephone operatorabout handling with emergency calls as per companys policies through a

written test. Performance measures could be objective or subjective


Objective measures; signs of job performance that are countable or

measurable as they are quantitative. E.g.; while evaluating telephone

operator number of misdialing can be counted (Werther and Davis, 1996).

Subjective measures; based on judgments and opinions of analyst

observing the performance of particular employee(s) (Werther and Davis,1996).



20/95


Key Elements of Performance Appraisal System


Employee Employee feedbackPerformance

Performance

measures

Performance

related standards

HR decisions EmployeeRecord


21/95


(Adopted from: Human Resource and Personnel Management by William B. Werther and

Keith Davis)

Types and Accuracy of Performance Measure

TYPES OF PERFORMANCE RELATIVE DEGREE OF

ACCURACY

MEASURES DIRECT

INDIRECT

OBJECTIVE Very High

High



22/95


SUBJECTIVE Low

Very Low

6. Performance appraisal process

There are a number of human resource management activities which areclosely related with a performance appraisal system, and these should be

considered while developing a performance appraisal system. This

sequence of activities defines a process for the development of

performance appraisal system. Some of these activities are demonstrated in

the table and are explained below (P. Anthony et al, 1993).



23/95


6.1Job analysis

A detailed job analysis provides a foundation for establishment of

performance appraisals. Without knowing the job discription and

specifications of a purticuler job how an employee performing that job could

be evaluated and appraised. So the duties, responsibilities, working

conditions and activities of the job should be defined clearly in order to

evaluate the performance (P. Anthony et al, 1993).

6.2Performance standards

On the basis of job analysis information, performance standards must bederived, that is acceptable performance levels should be developed

against which performance of human resources will be compared. A

high-quality performance standard portrays that after the completion of

a specific activity what a worker is ought to be produced or

accomplished. Standards should answer several questions such as what,

how much and by when. Some vital basics should collaborate with



24/95


Performance standards. First, Standards should be in black and white so

that workforce could become familiar with satisfactory and objectionable

behaviors. Second, unrealistic standards, expectations and challenges

will cause employees to give up and not struggle at all as they suppose

that accomplishment of high expectation is unattainable. Finally, time

structure must be specified and targets ought to be measureable and

recognizable (P. Anthony et al, 1993).

6.3Design a Performance appraisal system

For an effective performance appraisal system, workers should be

assessed on the particular dimensions of job performance. Dimensionsused to evaluate the job performance of the employees should not be

deficient, distorted, contaminated or irrelevant. That is, job dimension

should measure all important aspects of performance, it should not be

lacking, it should emphasize each components importance towards the

job, it should not be unclear, it should not include off the point issues

that are not fundamental to overall victorious performance. The job

dimension which measures the aspects that are really significant in

determining job effectiveness would be considered relevant (P. Anthony

et al, 1993).

6.4Performance review

The performance review is the actual dialogue about the ratees

performance which transpires between the rater and ratee. Study

recommends that performance review should be a mutual discussion and

be approx 60 minutes long. But according to employment surveys themajority of workers reported that their last performance review meeting

continued up to 15 minutes. Two peoples the appraiser and the

appraisee are involved in performance review so it should entail an

exchange of information between these two parties. Three most common



25/95


forms of this information exchange are closed reporting, open reporting

and coaching (P. Anthony et al, 1993).

6.5

Setting a plan of action

At this end the worker should be well alert of his strong and weak points

as well as he must have a clear idea regarding his performance

assessment. Both the supervisor and the employee should focus on the

future, for establishing a plan of action job performance objectives

should be discussed with the contribution of both the supervisor and the

worker. After making the analysis of the job performance and plan of

action supervisor sets objectives based on the part of plan up to the next

evaluation stage. These objectives supply the route and supervision

regarding what is expected from the employee. But it is surprising that

supervisors are not provided with any training in this area. To certify the

victory of any performance appraisal structure, comprehensive training

programs should be conducted for supervisors so that new evaluators

could be skilled and existing evaluators proficiency can be polished (P.

Anthony et al, 1993).



26/95


7. Who conducts the performance appraisal?

A number of individuals or groups can conduct employee assessmentprocess. For example in some organizations, more then one

supervisors rate the performance of human resources and through

this trustworthiness of performance assessment can also be enhanced

(P. Anthony et al, 1993).

Different resources that can provide performance assessment

services are as in the following chart;



27/95


\

7.1Supervisor

Immediate supervisor is most regular assessor of human resources,

observations illustrates that 90 % of the performance assessments

are executed by the supervisor. They have an everyday contact withhuman resources and they can achieve detailed information about the

performance of employees (P. Anthony et al, 1993).

7.2 Co-workers



28/95


Most of the times employees are possibly quite painful and unwilling to

evaluate their co-workers, one study has revealed that more stable plus

most accurate evaluation of employee performance is peers evaluation. It is

beneficial when contact among manager and worker is restricted. Peer

rating is the vital element in the performance appraisal system (P. Anthonyet al, 1993).

7.3Employees themselves

Sometimes an opportunity is given to the workers to evaluate their own

performance; many are hesitant to employ in self ratings. This information

can be tremendously valuable for the manager. Study establishes that

workers have a tendency to raise their ratings, which are specified with the

chance to assess themselves. So the self ratings of group of workers is

mostly higher then that of supervisors. Additionally range of ratings for highperformance was much smaller of workers then supervisors, however

women have a tendency to rate themselves inferior then do their manager.

But Self evaluations and conversations can be an exceptional technique to

encourage and build up employees (P. Anthony et al, 1993).

7.4Subordinates

While examining the performance of managerial staff Subordinates are

capable of be a precious resource of information. This information is not only

helpful for determining how well a manager directs, corresponds, plans,

assigns and categorizes but in addition to identify universal problem regions

inside a department. Subordinates assessment for managers is important

only if information is collected in an environment of trust and honesty (P.


7.5 Computers

In some of the organizations, computer is being used to examine, control

and assess employee performance but monitoring workers by computers is

unlock to serious attack of privacy issues. A few legislators are making

efforts to bring in legislation so to bind the exercise of computer monitoring

in organization. Regardless of all these, computerized assessments possibly

will a precious assist to human resource administrator. But it must be



29/95


beneficial for both the workers and the manager, conditioned for being

effective (P. Anthony et al, 1993).

7.6Customers

Mostly In service providing organizations, customer is in an ideal situation to

supply performance feed back. For example in restaurants the customer

feed back for workers is best source for providing services to the customers

according to their requirements (P. Anthony et al, 1993).

7.7The job itself

Employees can get feed back from their day to day job performance. For

example if an employee have not performed his part of job, while others are

waiting for his part of performance to be completed so that the can make

further processing, here this employee can feel that he is not performing his

job up to the mark (P. Anthony et al, 1993).

7.8 360-Degree Feedback

The 360 degree feedback which is also known as multisource assessmentis used for the development purpose rather then to increase the pay orother benefits. More then 29% respondent employees use it. In this all thepeople around the employee are involved in the rating. It includes thesupervisor, peer, subordinates, internal or external customers. And there isalso a significant relationship between the 360-degree feedback and theperformance rating. Some organizations are also against of it but the studiesshow that the organizations are also adopting this method. This requires acareful assessment of the potential cost of this program (Byars & Rue, 2006;Werther & Devis, 1996; Dessler, 2006).

8. Past Oriented Appraisal Methods

Academicians and practioners have created many methods to appraise

performance. These techniques help to minimize certain problems



30/95


encountered. Past oriented methods have advantage that they deal with

past performance that is already taken place. But when evaluation takes

place employees can improve their future performance (Werther and Davis,

1996).

The most acceptable techniques are:

Rating Scale

Checklists

Forced Choice Method

Critical Incident Method

Accomplishment Records

Behaviorally Anchored Rating Scale

Field Review Method

Performance Comparative Evaluation

Test and Observations

8.1Rating Scales

The oldest and most acceptable method for performance evaluation that needs a

subjective evaluation of an individuals performance on a scale from low to high. In

some cases criteria is quite unrelated to job. Even if the form can be filled up bysubordinates but usually it is filled by supervisors to give suitable response for

each performance element. These responses are given in numerical form to be

compared. This method is quite inexpensive and easy to develop as well as a little

training is required to get the form filled from employee. It is also generalized to a

large number of employees (Werther and Davis, 1996).



31/95


This method also has some disadvantages. Rater can use biased approach; specific

items may be omitted form the form to make it generalizable. This omission

results in limited feedback. When a particular criterion is difficult to find, the form

may contain irrelevant items and may rely on inappropriate personality attributes

that reduces the actual meaning of evaluation (Werther and Davis, 1996).

8.2Checklist

This method requires the selection of words or statements that describe the

employee performance and particular characteristics. The HR department assigns

weights to each item according to their importance may be with analysts

knowledge, called weightedchecklist. These weights are assigned so as to make

the results quantitative. This method is standardized but the general statements

may reduce its relatedness (Werther and Davis, 1996).

The major advantages of this method are it is easy to develop and economical.

Disadvantages are biasness of analyst (the halo effect). Despite using performance

criteria personality criteria are used, misapprehended items and inappropriate

weights assigned by HR department. And also this method does not permit the

analyst to give comparative ratings (Werther and Davis, 1996).

Example of weighted performance checklist.

Instructions: check each of the following items that apply to the

named employees performance.

Employees Name:

Department:

Raters Name:- Date:



32/95


Weights

check Here

(6.5) 1. Employee works overtime when asked...........................

(4.0) 2. Employee keeps workstation or desk well organized.

(3.9) 3. Employee cooperatively assists others who need

help.

(0.2) 20. Employee listens to others advice but seldomfollows it. ..

.

.

.

100 total of all weights.

8.3 Forced Choice Method

In this method employees are provided with different pairs of statements among

which they have to make choices, analyst must ensure that pair of statement must

have to be descriptive. Predetermined categories are assigned with codes such as

learning abilities, performance and interpersonal relationships. These can be

calculated by adding up the number of times the particular category has been

selected. Normally the supervisor is rater, the results then shown identify the

areas which needs improvements. This approach fits a variety of fields, easy to be

developed and lessen the raters bias. But this method has limited use for

employees to improve their performance as it is standardized but general

statements included are not job related (Werther and Davis, 1996).

For Example:



33/95


Learns quickly. Works hard

Work is reliable. Performance is a

good example for others

Absent too often usually tardy

8.4 Critical Incident Method

In critical incident method, rater has to confirm the statement that clearly

illustrates the good or bad behavior as per job performance. These given

statements are called critical incidents, provided by the supervisor regarding

each subordinate while evaluating. These incidents are elaborated for what

actually happens, further recording and classification of each incident

whether positive or negative into categories like control of safety hazards,

control of scrap material and employee development (Werther and Davis,

1996).

This method is exceptionally advantageous for providing job related

feedback. It reduces the biasness of rater through the period of evaluation.

It also has some negative aspects as supervisors do not show interest at the

end as that was in the beginning, they just add some incidents a little time

before the evaluation starts. There should be a supportive case regarding

the subjective opinion of supervisors, many employees may feel that rater

is just unwilling to cover up their shortcomings that happened a month ago




34/95


A Critical Incident Record For A Lab Assistant

INSTRUCTIONS: In each category below, record specific incidents of

employee behavior that were either extremely good or poor.

Employees Name:

Department:

Raters Name:

Rating Period of:

1. Control of Safety Hazards

Date Positive Employee Behavior

Date Negative Employee Behavior

.

.

.

.

2. Control of Material Scrap

Date Positive Employee Behavior

Date Negative Employee Behavior

.

.

.

.



35/95


8.5Accomplishment Record

Accomplishment records method is quite similar to critical incident methods that

are used by professionals mainly. These are the schedules produced by

employees for the record such as publications, speeches, leadership roles and

other professional activities. This information is mainly used by the supervisors to

create annual reports and shaping raises and promotions and counseling the

persons about his or her future performance. The statement may be subjective and

items could be biased and include only good things (Werther and Davis, 1996).

8.6Behaviorally Anchored Rating Scales

These scales are a family of evaluation approaches that identify and evaluate

employee behavior relevant to job. Specific reference points are used to make

evaluation by specific behaviors. To ensure the validity of results bipolar ratingscales or forced choice methods are used. The widely using methods are

behavioral expectation scales and behavioral observation scale (Werther and

Davis, 1996).

Behavioral expectation scale

In this method specific behaviors are used to be helpful for raters. This method is

mostly used to reduce biases and subjectivity in approaches for performance

evaluation purpose. Job related behaviors are categorized on the basis of

information provided by peers and supervisors, job analyst and knowledgeable

employees. Specific behaviors are ranked on the sale form 1 to 7. This scale isarticulated as employees and supervisors are known. If the rater also helps in

conducting accumulating incidents during the rating period, the evaluation will be

more precise and legally defensible and more effective counseling mean. It also

has a limitation that it only identifies specific behaviors as most supervisors are

reluctant to record particular incidents that cause reduction in the effectiveness of

the results (Werther and Davis, 1996).



36/95


A BEHAVIORAL EXPECTATION SCALE.

Behavioral expectation rating scale for:

Performance Category:

Extremely Outstanding Performance 7

Good Performance 6

Fairly Good Performance 5

Acceptable Performance 4

Fairly Poor Performance 3

Poor Performance 2

Extremely Poor Performance 1

Behavioral observation scale

In this method specific items are used to report frequency of those behaviors. This

scale is mainly concerned with good to bad performance. These behaviors are

mainly measured along five point scale from almost never to almost always.

This method reduces personality disputes, advance feedback between raters andworkers (Werther and Davis, 1996).

These methods are more critical to develop and administer as they deal with

specific behaviors whose validity is considered to be more justifiable. This feature

makes them more costly and consumes a more time to get developed (Werther

and Davis, 1996).



37/95


BEHAVIORAL OBSERVATIONAL SCALE

Q No. 1 you can expect this to help customers in need.

Almost never

almost always

1 2 3 4

5

Q No. 2 you can expect to calm down arguments before they erupt anti

fights.

Almost never

almost always

1 2 3 4

5

8.7 Field Review Method

Each time subjective measures cause bias in raters perception, to avoid such

thing and to provide standardize results field review method is preferably used by

the organizations. A specialized person provided by HR department directly goes in

to the fields a help out supervisors to get immediate information about employees

performance and then prepares evaluation on the basis of provided information.

This evaluation is sent to the supervisors who will then review, change and

approves such evaluation and then any particular type of rating is applied to it by

the expert. As the evaluation is conducted by expert its reliability and

comparability is ensured and hence bias is reduced since it is costly and



38/95


impractical for the organization. But the primary source of data collection is

supervisor; bias is likely to be take place (Werther and Davis, 1996).

8.8Performance Test and Observations

These tests are conducted when organizations rely for compensations, reward

system for employees on pay for knowledge or pay for skill approach. This may be

paper pencil test or demonstration of particular knowledge or skills. The test is

most appropriate for measuring potential performance as it must be reliable and

validated. If the cost of development and administration of test is high it would be

impractical for the organization (Werther and Davis, 1996).

8.9 Comparative Evaluation Approaches

This approach is collection of different methods for conducting comparativeappraisals of different workers for deciding promotions, rewards, merit pay

increases. These methods compare performance of workers from best to worst.

These methods are based on subjective approach and may subject to bias since

they are practical and standardized (Werther and Davis, 1996).

The most commonly used methods are;

Ranking Method

Point Allocation Method

Forced Distribution

Paired Comparisons

8.9.1 Ranking Methods

In this method each employee s ranked from best to worst. HR department have

knowledge about employees who are best but do not know the degree of

differentiation. This method gives halo and leniency effect. The rankings provided

by two or more raters are averaged to reduce biases and hence is easy to

administer and develop (Werther and Davis, 1996).

8.9.2 Forced Distribution Method

In this method employees are classified with specific proportions into different

categories b raters. It used to measure over all performance but also used for

other criteria. Under this method differences among employee performances are



39/95


not measured but helps in reducing biases of central tendency, leniency and

strictness errors (Werther and Davis, 1996).

FORCED DISTRIBUTION METHOD OF APPRAISALS

Classification of overall performance

Best 10% of next 20% of middle 40% of next 20% of

lowest 10% of

Subordinates subordinates subordinates subordinates

subordinate

8.9.3 Point Allocation Method

In this method rater gives fixed number of points to employees in a group on the

basis of their performance. Good performers with high points and bad performers

with less. Rater can identify the differences in performance of each employee but

still halo effect and leniency bias takes place (Werther and Davis, 1996).

POINT ALLOCATION METHOD OF APPRAISAL.

POINTS NAME OF EMPLOYEE

17 Mr. A

14 Mr. B

13 Mr. C



40/95


.

5 Mr. Z

100

8.8.4 Paired Comparison

Rater compares employees with all other employees with in a same group

on the basis of over all performance. The most of the number an employee

is rated high it can be added on to develop an index and it will be

considered as best on the criteria selected (Werther and Davis, 1996).

9. Future-Oriented Appraisals

By evaluating an employees potential or setting future performance goals Future-

oriented appraisals focus on future performance. Following are the general

approach to estimate future performance (Werther and Davis, 1996).

9.1Self-Appraisals

When the objective of estimation is to further self-development, self-appraisal will

be a helpful evaluating method. The chances of happening suspicious behavior are

less expected and self-development is more, when employees evaluate

themselves. Self appraisals are helpful for users in future for personal goal setting.

The only threat is that the employee will be too relaxed as well as serious of their

performance. In any evaluation approach, past or future-oriented self-appraisals

will used. The employees participation and dedication to the development

procedure is the important element of self-appraisals (Werther and Davis, 1996).

9.2Management by Objectives

The important part of management by objective approach is goals. Goals are

measureable and on which manager or employee are equally agreed. When

employee take participate in their goal setting, the expectation is that to



41/95


accomplish those goal they will motivated. For the accomplishment of objectives

employee adjust their performance accordingly. For continuous effort, employees

must timely receive performance feedback. Objectives help the supervisor and

employee for the making of future training and progress efforts which are more

related to the employee. After that performance conversation focus on the jobobjectives. Partiality is reduced to the extent that goal accomplishment can bemeasured neutrally. Management by objective approach has faced some

difficulties, in practice. Sometimes Objectives are motivated as well as small or are

set without discussion but forced by the supervisor. So the result is irritated

employees and their performance area also ignored (Werther and Davis, 1996).

9.3 Psychological Appraisals

Industrial psychologists are paid in some institutes on permanent or contract basis

for evaluation. Psychologists evaluate an individuals future prospective on present

performance. Usually estimation consists of in detail interviews, negotiations with

supervisors, Psychological tests, and analysis of other estimation. Employees

rational, emotional, motivational, and other professional characteristics that are

related to persons potential are then inscribe estimation and may predict

performance by psychologists. The evaluation of a person by the psychologists

may relate to an individual being considered to the opportunity of particular job, or

may be Individuals future prospective evaluation internationally. For a persons

job position and improvement decisions are important. As this approach is slow

and expensive so, generally it is kept for brilliant managers or for managerial level

decisions within the organization that have substantial potential. Abilities of thepsychologists consider important for the quality of these appraisals (Werther and

Davis, 1996).

9.4Assessment Centers

Assessment centers are used for evaluating potential but these results cannot be

made on the results of one psychologist. Multiple users and type of evaluation are

depending on assessment centers those are form of standardized employee

appraisals. They are implemented on the managers who have potential to perform

well with more responsibility. Group members first time meet at a training facilityor restaurants, and there they evaluated individually. In this process employees

are passed through interviews, psychological test , background investigate ,

evaluation by peers, leaderless group discussions, evaluation and rating by

managers psychologists and simulation work to make evaluation on potential in

work simulation normally in baskets exercise decision making exercise computer

base games relevant to job and other relevant activates. During the whole span



42/95


assessors make judgment about strengths, weaknesses and potential in each

employee. This process is quit costly for the company as they have to pay to the

assessors who are usually managers and also paying for the candidates.

Organization are also providing big psychologist along with managers to increase

validity of test and exercises practices. There is also a problem that the proceduresfallowed are whether objective or subjective because biasness also effects the

results. A report is prepared on the results that will help in development of

management and for placements decisions. This information also helps HR

department for HR planning and other related decisions. The result provided under

this method becomes good predictors of job performance (Werther and Davis,

1996).

10. Implications of the Appraisals Process

Good practices are necessary for a successful performance structure. Multipleraters, peers and viewpoints are used which might present better estimation and

reduce biases. Support and participation of management is important for

successful assessment. For understanding and support, preparation and interviews

are required (Werther and Davis, 1996).

10.1 Training Raters and Evaluators

Whether a complicated assessment center or a simple relative technique is used,

the evaluators

Must have understanding about the system and its purpose. The raters evaluation

might change by knowing about the appraisal whether it is to be used for

assignment or for compensation, because for different customers different criteria

might weighted. Reliability of estimation and assessor understanding are main

problems. Strategies for raters with response or for conducting the evaluation are

offered by HR department. In big companies, through training knowledge gap

solved. For the explanation of the reason of practice, the mechanics of how to do

it, partiality or difficulty, and answer of the questions to the rater training

workshops are generally planned. [The training may include trail runs evaluating

other classmates to gain some supervised experience]. In the estimation practice,

to give the rater both understanding with and insight some companies used role-

playing and videotapes evaluation meetings. Scheduling and timing of evaluations

are discussed in the training. Near the individuals employment anniversary, many

companies do official assessment yearly. The assessment practice can begin, if

evaluators are qualified. The results of the evaluations do slight to progress

performance if the employees get response (Werther and Davis, 1996).



43/95


10.2Evaluation Interviews

It is the session of performance evaluation that gives employees necessary

response regarding their future prospective and past performance. Usually,classification of particular behaviors to be reinforced in the evaluation interview,

an evaluation of earlier assessment, and an approach that is used in giving

response are included in it (Werther and Davis, 1996).

Feedback may provide by the assessor through several approaches:

Tell and sell

Tell and listen

Problem solving

The tell and sell method tries to influence the employee to improve the

performance and evaluate the employees presentation. With new employees it

works best. The tell and listen approach permit the employee give justifications, to

elucidate causes, and explain suspicious thoughts about performance. Through

analysis the responses of the employee on how to present better can be overcome

in this approach. The method of problem-solving recognizes problems that

are interfering with the performance of employee. After that, objectives for

future performance are set to remove the insufficiencies through training,

coaching, or counseling. In spite of which method is used to give employees

response, the course of action helps to make the session of Performance

evaluation most valuable. By pressuring the attractive characteristic of employee

performance, transformed self-assurance can give to the employee by the

assessor in their aptitude to perform adequately. In viewpoint these optimistic

approaches also allow the employee to stay attractive and unattractive

performance because it prevents the employee from emotion that the sessions of

performance evaluation are completely negative. Employees focus on job

performance, when negative comments are made. By focusing on events that the

employee may take to progress areas of poor performance the evaluation

conference is concluded. In the final conversation, whatever helps the employee

wants to overcome those insufficiencies the assessor generally offers to provide.



44/95


The manager should monitor employee performance, after the evaluation session.

Though, the stress should be on helping the employee in the post performance

assessment to achieve their goals of performance improvement. Manager wants to

offer opportunities to improve employee performance and should arrangedadditional training or other agreed on support (Werther and Davis, 1996).

11.Strategies for Effective Performance Appraisal Systems

Constructive tackles used for assessing the job of human resources and

encouraging these human resources are Performance appraisals. Regrettably, at

the same time these performance appraisals reciprocally for administrator plus

worker are an incredible cause of unease and dissatisfaction. The doubts and

vagueness are the central grounds at the back of restlessness and disappointment

that envelop several performance appraisal structures. On the whole, performance

evaluation is a technique used to facilitate human resources to administer their

own performance, furthermore can be considered like an approach towards the

authentication that whether individuals have been meeting located standards or

not (P. Anthony et al, 1993).

Differentiation among immense and little performance is objective of every

performance evaluation structure. But implementation of this is not as simple as it

looks like. While implementing performance appraisals basic hindrances in the way

of target of differentiation are; Controller having a complicated time whileevaluating a worker unsuccessfully, Rating scale that have a tendency to amount

each and every one worker jointly in the center plus traditions that prize prolonged

existence as an alternative of performance number of benefits can be achieved by

the organization through the application of performance appraisals system. For

example, deserving work performances can be identified accurately and rewarded

appropriately, pessimistic approach of both administrator and human resources

which they normally hold can be lessen by implementing well planned appraisal

structure. By creating strategies for effectual performance assessment this can be

done profitably. Here we will scrutinize the function of performance evaluation in

human resource administration and the association between performance

appraisals and the strategy of the organization (P. Anthony et al, 1993).

Different strategies can be used on the subject of performance appraisal system.

Several vital preferences are sketched along these lines;

What is the intention and aim of the organization for using performance

appraisals? Also assessment will be conducted for the purpose of shaping

incentives, handling troubles or else intended for some supplementary reasons?



45/95


And whether assessment will be conducted on the basis of collective efforts or of

individuals? The entire of these must determined by manager (P. Anthony et al,

1993).

Used for performance appraisals formal and informal procedures are accessible,manager can select among these.

Formal: where assessment is planned and takes place by definite time stage

Informal: where manager and assistants talk about troubles along with solutions

by the occasion as they take place.

In opposition to subjectivity Performance appraisal systems are capable to call

attention towards more objectivity. (I-e)

Manager should assess subordinates on the basis of their own judgment?

Or assessment should be made on the basis of solid reasons like; non-attendance

or quantity of items created? Etc (P. Anthony et al, 1993).

Yearly appraisals are being performed in the organizations. Managers have to

decide about the frequency of performance appraisal system used inside the

organization. A lesser amount of regular proper analysis may perhaps be carried

out among fresh work procedures where performance response is specified on per

month, day by day or even per hour basis. But if employment is not providing

particular response regarding performance; a year is a lengthy gap linking reviews.

Who is going to conduct performance assessment? Is that person will be a

supervisor (frequently selected) or some one else? Managers also have to answerthese questions (P. Anthony et al, 1993).

11.1 Objectives for performance appraisals

Performance appraisals system is used to find out the employees, who deserve

promotion, who should be downgraded, relocated or expired from job. Along with

these there are also many other human resource tasks which are interrelated with

performance appraisals (P. Anthony et al, 1993).

Lets take an example; an organization is planning to provide their employees withthe opportunities for formal training and development. Here organization has to

decide that who needs training and who deserves further development, so

organization can conduct performance appraisals and can use the results for

making decisions regarding these questions. Organization can also use such

opportunities as prize for those who presented cheering end result from

evaluation. Development opportunities so as to employ as prize or reward for

efficient performance can be provided in tow forms (P. Anthony et al, 1993).



46/95


Creation of stimulation, enthusiasm and enhanced performance is also an

objective of performance appraisals. Through performance assessment an

individual can be make aware of his or her strong points as well as flaws where he

or she require perfection and then assessor can assist him to focus the track that

will generate the most constructive reimburse. In return of these highlighted

performance that created strong and affirmative outcomes the individuals must be

encouraged to carry on performing in this way (P. Anthony et al, 1993).

A well designed appraisals system can help if an organization needs to persuade

the individuals to work collectively as a team. Numerous challenges will build

barriers in designing and executing such system as conventional performanceappraisals systems designed for individuals are no longer applicable. For the

reason that application of individuals based appraisal systems can discourage the

efforts of whole team as these appraisals are for individuals who perform highly

interdependent tasks. So Instead of individual systems, peer force might be

satisfactory towards the motivation of team members to perform. The evaluation

process can be conducted through self managed group where members can

evaluate each others work instead of evaluation made by supervisors. The

procedure possibly will require to be redecorated, as self managed teams demand

an exclusive approach to performance appraisals (P. Anthony et al, 1993).

11.2 Formal versus informal performance appraisals

Organizations call for formal performance appraisals for the assessment of

employees performance which typically come about at particular events like on

one occasion otherwise twofold in a year. On the other hand whenever thesuperintendent supposes that it is the time to be in contact he can call for an



47/95


informal performance appraisal. Informal performance appraisal can take place at

times, such as; an employee is showing consistency in his performance to achieve

organizations standards and beyond these standards, so simply with the intention

of distinguishing this piece of information informal appraisals can be arranged.

Obviously, for all time it is considered smart, to make concealed talk about aworkers performance and negotiations can be made at different places inside the

organization as office of the manager or cafeteria. Mostly organizations seem to

favor in applying formal and informal appraisal system combined. Formal appraisal

system is considered as the primary evaluation although for more frequent

performance feedback informal appraisals are very helpful. Informal evaluation is

supposed to not capture the tie of a formal performance assessment (P. Anthony

et al, 1993).

11.3 Objective Vs. subjective performance appraisals

Objective performance appraisals are for evaluating performance against specific

standards while as subjective performance appraisals are for evaluating how well

an employee performs in general. The degree of opposition from objective

performance evaluation to subjective performance evaluation must be decided by

the organization. For an organization objective procedures are the superlative

tactical preferences and at the time of recognition of required characteristics that

are problematical to measure subjective procedures prove to be helpful. Because

communication proficiency or supervision potential can not be assessed objectively

so both the objective and subjective measures of performance should be enclosed

in the formal performance appraisals. Approved performance principles stand on athroughout job analysis must take in Job requirements and performance evaluation

should be based on these Job requirements. As of a purposeful sight, for an

organization frequently it is greatest to promote objectivity in the formal appraisals

procedure, like, performance instead of outlook must be measured while rating the

human resources. From a legal point of view, objective procedures are

straightforward to protect moreover vagueness for human resources and

supervisors can be shrinking because of this. While developing the performance

appraisals format organization should weight the expenditure and reimbursement

from these formats. Because many performance assessment scales are

tremendously prolonged and costly to build up (P. Anthony et al, 1993).

11.4 Frequency of performance appraisals

Normally performance appraisals for employees are conducted after 6 months or a

year. Managers negative observation of the procedure leads to lots of repeated

performance appraisals. Particularly at the time when performance of employees is

below expectations, frequent performance appraisals can be stressful for both



48/95


employees and managers, moreover some manager consider performance

appraisals as extra work and wastage of time. That could be the reasons for

manager to avoid the situation. Rather performance appraisals should be

considered as a way to improve performance and to develop employees and

managers should be encouraged and trained to view the process as an opportunityto communicate with their employees (P. Anthony et al, 1993).

Interesting thing is that, Instead of formal, informal evaluation is more popular in

employees. Observations show that employees suppose to be evaluated and given

feedback more then once or two times a year, for 80% employees one of their top

five priorities is rank feedback in response to their performance and only 45% are

satisfied with the feedback they receive. The unease of employees linked with

formal evaluation can be reduced by decreasing surprises regarding activities

which are not declared but acknowledged long prior to the conference. Strategies

which organizations can use are the Limitation of strict and more labor-

concentrated conferences toward one or tow every year and promotion of

repeated informal appraisal conferences between manager and employees. Under

this approach, Goals and objectives for the upcoming track can be established in

meeting of employee and supervisor at the beginning of the year. And so at the

end of the year formal evaluation became not as much of stressful for both parties

because of the repeated feedback that has take place throughout the year (P.


11.5 Types of performance appraisal methods

Several performance appraisal designs are accessible for use. Some focus onworker behaviors while others are result oriented. In the report we have already

discussed many of the past and future oriented performance appraisal methods.

These performance appraisal systems include several types of behavioral and

result oriented methods e.g. rating scales, critical incident method, behaviorally

anchored rating scale, management by objective (MBO), etc (P. Anthony et al,

1993).

11.5.1 Selecting a performance appraisal method

None of the performance appraisal system could be supposed as a perfect or best

method for all situations. On the basis of the circumstances some methods can

perform better then others. For instance, MBO is a good approach to use if

performance information available is of objective nature. And while making the

comparison of employees performance to determine promotions and so on, some

of the common denominators should be determined. Here performance is rated

numerically so rating or ranking methods should be preferred over MBO. A

performance appraisal system must be lawfully justifiable. As no appraisal system



49/95


can be guaranteed as safe, so supervisors must be alert of the consequences of

court cases that made judgment regarding the performance assessment

procedure. For different cases, whether objective or subjective measures are

appropriate for job under consideration will be decided by the court. While

selecting a performance appraisal system it must be well thought-out that whetherthe system will be able to manage the sorts of rater errors that are typically come

across (P. Anthony et al, 1993).

11.5.2 Tips for developing a legally defensible performance appraisal system

There is no guarantee for any appraisal system to be safe. But on the basis of

several court cases outcomes, centered with performance appraisal, following way

is suggested to create a legally defensible performance appraisal system (P.


Start with the job analysis that will establish the indispensable uniqueness intended forvictorious job performance.

Then establish the performance standards from the results of job analysis.

The employees who will be evaluated should be aware of these standards and should also acceptthem.

A rating scheme should be developed on the basis of these standards, which should measureundoubtedly distinct individual components of the job performance, and then these standardsand rating scheme should be supplied to each and every one rater.

Scale selected may not be considerable from legal perspective but for using trait rating or simplegraphic rating scale no problem is indicated by the government. While using these types of

methods, intangible quality names and to fasten the scale with to the point understandably

regular labels must be avoided.

Raters should be trained for using the scale in the correct way. While making the decisions theway of applying standards must be focused. And standards should be applied uniformly.

Appealing the rating, directly to upper level management, must include a mechanism.

Documentation of all appraisals should be made as it is very valuable in court cases.



50/95


Poor performers should be directed to the right way. Court rules more positively towards theorganization at what time when organization tries to help the poor performers (P. Anthony et al,

1993).

11.6Strategy and the performance appraisal process

The performance appraisal system is used for recognizing employees with

potential; rewarding performance justifiably and determining employees

requirements for improvement so to scientifically push the high levels of

performance. All these tricks should support the organizations strategic direction

and in this way performance appraisal system can be employed to promote a

variety of organizational targets and objectives (P. Anthony et al, 1993).

11.6.1 Organizational strategy

The managerial efficiency can be enhanced by strengthening the relationship

between the performance appraisal system and organizations long term strategy

plan. This linkage will help to construct a culture that will further strengthen the

organizations strategy. There is a better possibility for both the organizations and

employees targets to be gathered, if the system is intended to help employees

direct rather account their performances. Under economizing strategy crucial

concentration is dedicated towards improving the effectiveness of existing

operations at this point performance appraisals can be used as way of categorizing

training requirements and of skill building. While at the other side under growth

strategy searching for opportunity markets and new product lines is familiar here

the focus is on identifying staffing needs as opposed to training needs (P. Anthony

et al, 1993).

Common problems with unsuccessful performance appraisal system



51/95


Criteria for a successful performance appraisal system

Adapted from Human Resource Management: A strategic

approach (P.Anthony et al, 1998).

12.Developing performance improvement plans51

GROUP H MBA 3rd M1


52/95


12.1 The Changing Nature of Workplace

Body of work is marked by continuous change. Continuous changes have

seen in last some decennium in organizations mode. Organizations andfunctioning modes which were intimated during last some years are

encountering some genuine durable appraisal.1970s was still, feasible, the

period of productiveness, intimating the edge of synthesizing on any

proportion in UK, and certain aspects were common in organizations of the

time. They were large corporation with charge and authority administration

behavior. Working class adaptability was defined and generally was upright

amalgamation. Configuration was based on the contrasting of working class,

a basic alliance of management broad pyramid of supervisors and

organizers, functioning in distant duty alternations. In 1980s, probably

broad organizations aimed to be decentralized and actualize autonomous

business assemblages. These generally accomplished as confined fiefdoms

and accumulating a collaborative progress could be burdensome. The

confrontation for HR at the basic was to affirm appraisal reckon. Working

force adaptability was rather low (Holbeche, 1999).

The 1990s have been typified by inadequate, leaner organizations with

active textures and delayer management. These managements are charge

less, more adjustable and engaged. However, these anatomies are justanother style of management to achieve control over working class through

attitudinal rearrangements(Holbeche, 1999).

Control methods have been redesigned and cooperative connections are

developed with suppliers. Team working, overall affirmation aspect, parallel

amalgamation and working force compliance are also common of the time.

Some scholars have defined it as a post revamp agewhich embodies the

deadline of broad authoritative production revamp stage. Through

utilization of automation, progress achieved and deskilling express just a

reworking of revamps producing ways (Holbeche, 1999).

The modern golden age is known to be the inception of active age or rapid

production, where working class adaptability will be eminent and employees

will be cautiously managing their own jobs. Organizations will target their

own basic abilities, rather than just their accustomed development. Except

being an affix a staff, then organization will be a charge familiarize



53/95


elemental anatomy. It is generally to be defined by a small basic centre and

accord with suppliers and clients. The elastic and the colloquial will need to

accompany with officials, amalgamation gadgets. The threat here will be to

developed organization, thus delayer, which are wholly affiliated and

harmonized, and where employees experience elevate level of assistance

and charge (Holbeche, 1999).

Forge anatomies have now became well-developed amalgamation devices.

At variance with in region where there is acute contention, like economical

assistance or the considerate commerce, trend toward integration, through

amalgamation and acquisitions, former to dissemination or demerger, seemswell-embedded (Holbeche, 1999).

12.2 The Role of HR in creating integration

If the trend is approaching amalgamation but active anatomy, HR has less

imp role to play in empowering this amalgamation. The HR dept. itself will

be an amalgamated structure since its dispatch often performed beyond

organization limitations and usually bear charge for collaborative

articulation. The internalization of collective assessment, through chief

programs and the organizational accomplishment wholly, are considerable

causes of integration (Holbeche, 1999).

12.3 High Performance Work Practices

A lot of studies have shown the considerable economic benefits of

implementing and adopting high-commitment or exceptional performance

at work in comparison to old scientific management which was common

among modernist organizations. Generally defined as Japanese

management activities, the scenario for adopting such approaches is

powerful and strong. MIT investigation of the whole worlds motor vehicleconstruction companies, reported in the book the Machine that change the

world by Womack(Holbeche, 1999).

All the assembling plants which have implemented in cost-effective

manufacturing methods and interlinked employment-relation ways in

successfully using mass production methods. Other searches based on



54/95


textile industry have proved that all those organizations that prefer team

working, motivation, training and skilling for varied job faced 22%

increment in G.P margin b/w 1988-1992 comparatively to other similar

companies (Holbeche, 1999).

An effect of devoted work practices using ways of financial performances

has been implored. Then the results were produced showing, increment of

sales over $27,000 per employee annually, aftermath of increase in

motivation and high-commitment work practices. One amazing thing which

was noticed that effectiveness does not resulted due to change in any of

firms strategies but gradually led to increment in overall performances

(Holbeche, 1999).

These high-commitment work practices are figured out by the following:

1.) Suggestion groups, quality control groups, employees intervention ideas

for development.

2.) Freedom of suggestion.

3.) Job rotation, enrichment, enlargement to take best benefits of skills.

Participation also includes delegation and decentralization. Large

companies like Motorola, Levi Strauss etc use these approaches. The theory

they adopt enables the employees to interlink with each other, which

motivates them and help to achieve coordinative objective. Corporate

values can prominent the reward policies. Profit-related pay and ownership-

sharing are some other most important element of motivation.

Communication effectiveness also depends on the person conveying the

message and his behavior than just words. Though these practices have

shown off effectiveness but still they are spreading slowly. The main barrier

occurring is the typical conventional concept of focusing more on

strategically and financial aspects rather than on employees and their



55/95


relations. As these high-commitment performances demand a huge

investment for training, motivation etc, so many organizations are reluctant

to invest in it because of their certain cost-effectiveness. Manager

prospective about his duty, employees interference and way of thinking

can be effected. If managers would just consider their ideas about

organizations and would take their own decisions that how day-to-day thing

should be done, they wont consider the ideas of those people on which

certainly organizational success depends on, mostly low level employees

(Holbeche, 1999).

Management and authority problems can also be a barrier in way of

implementing work practices. Managers wont wish to re implementpreviously failed strategies. Similarly, middle managers who are basically

most affected are redundant to adopt any new work practices. Mostly the

advocates of adopting changing work practices, usually HR professionals

have low salaries comparatively to those of basic critics of such changes,

often finance directors. Interestingly, a study showed that in Japan the

changes adaptation means HR and manufacturing department were paid

highest level of salaries (Holbeche, 1999).

12.4 How can HR help to implement high-performance work practices?

12.4.1 By creating a culture which is supportive of high

performance:

High performance only occurs when opportunities and motivation are given.

The organization should be productive and reactive in quality improvement.

A South African construction company, Neil Muller (pvt) Ltd, has managed

to maintain and improve productivity by making a cultural change to aid

and support improvement. Management introduced, which came to be

known as Total Company Rejuvenation, to renew the numbers of affected

and problematic areas, mostly related to HR, i.e.



56/95


Trade unions work is not positive

No relation b/w management and employees.

Lack of trust b/w management and workforce.

Limited monitoring of productivity on-site.

No long-term planning.

Less involvement of employees in planning and discussion.

Less effective supervision on site. Etc.

Noticeably, company assured job security and career path as basic of

quality improvement plan. Another step was developing trust and improving

communication b/w management and workforce. Ten goals were setupincluding workers participation and introducing profit-sharing schemes.

Training played important role in gaining high skill level. All companys

workers daily attend 2 hours training session. Workshops were held for

senior staff. Moreover work targets were introduced. A committee was

setup with name Unity forum for creating new levels of trust and

communication B/w Companys management and workers (Holbeche,

1999).

12.4.2 By influencing attitudes

HR can aid setting up benchmarking visits to the organizations who are

showing some outstanding performances and results, then they can implement

and practice the same strategies used by other successful organizations and one

of HR team should be setup to make cost-benefit analysis and noticing employees

interest and attitudes towards the change (Holbeche, 1999).

12.4.3 By designing and implementing HR processes which support the business

strategy

Practically, to develop high performance, HR ways of rewarding are needed to



57/95


interlink the new ways of working. The below HR processes are common among

front line companies:

- Employees selected by considering most abilities.

- Skill development and training programs.- Share ownership with employees.

- Providing job security.

- Motivate staff by acknowledging their task etc (Holbeche, 1999).

12.5Reward strategiesRelationship b/w performance and reward has been considered since long and

since 1990s changes have been made in reward management system. Pay system

should be revised especially in the competitive market. Many organizations have

responded to competition by producing according to consumer needs and tried to

secure product and business loyalty. When team-work is implemented, evaluating

employees individually become quite impossible. Experiences and skills are then

taken in account of all employees wholly; in this case ones bottom line

performance cannot be taken in account while determining pay. Job promotion and

security has now became things of past, which are not practiced as a part of

reward system as before. This make some employees less effected and motivated

as now their rewards are just confined to materialistic goods like bonuses etc but

not a desirable job security, progression etc (Holbeche, 1999).

12.5.1 The symbolic power of reward system

Reward systems should fulfill both aims, i.e. there must be rewarded employee

for their high-

performance and must be managed salary bill most appropriately. Different ways

can be adopted for motivation, they can be admired at good work, increasing

sales etc. Team-work must be preferred but

report on performance management

Documents