HRM 442 - Human Resource Management: Establishing The Performance Management System

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HRM 442 – Human Resource

Management
Establishing the Performance
Management System

Lecture 5
Outline
• Understanding Performance
• Performance Management Systems
(Management vs. Appraisals)
• The Appraisal Process
• Performance Appraisal Techniques
• Factors that Distort Appraisals
• Creating Better Performance Management
Systems
• Performance Appraisal Meeting
Overview of managing performance of employees in
the organization
How would you manage
student’s performance?
Understanding Performance

• Employee
Performance
– Completing key job
activities

• Performance
Management Systems
– Typically include
performance appraisal
and employee
development
Performance Management Systems

• Purpose of Performance Management Systems


− Feedback – let employees know how well they have
done and allow for employee input
− Development – identify areas in which employees
have deficiencies or weaknesses
− Documentation – to meet legal requirements

• Difficulties in Performance Management Systems

Focus on the Individual Focus on the Process


Performance Management Systems
Dangers of Poorly Implemented Performance
Management Systems
1. Employees may quit due to results
2. False or misleading information may be used
3. Self-esteem may be lowered
4. Time and money are wasted
5. Relationships are damaged
6. Motivation to perform is decreased
7. Employees suffer from job burnout and job dissatisfaction
8. There is increased risk of litigation
9. Unjustified demands are made upon managers’ resources
10.Standards and ratings vary and are unfair
11.Biases can replace standards
12.Mystery surrounds how ratings were derived
Performance Management Systems

The future of performance management


system
The Appraisal Process
Performance Appraisal Techniques

Absolute Relative
Objectives
Standards Standards
• An employee’s • Employees are • Employees are
performance is evaluated by evaluated on how
measured against comparing their well they
established performance to the accomplished a
standards of an performance of specific set of
organization other employees objectives
Essay Appraisal Group Order Ranking Management by
Critical Incident Appraisal Individual Ranking Objectives (MBO)
Checklist Appraisal Paired Comparison • goal specificity
Behaviorally Anchored • participative decision
Rating Scales (BARS) making
• an explicit time period
• performance feedback
Performance Appraisal Techniques

The Checklist Model of Performance Appraisals


Performance Appraisal Techniques
Performance Appraisal Techniques

The Graphic Rating Scale


Performance Appraisal Techniques

Sample BARS for an Employee Relations Specialist


Performance Appraisal Techniques
Factors that Distort Appraisals
Factors that Distort Appraisals

Reasons for changing the ratings of individuals


Creating Better Performance
Management Systems

Reinventing
Performance
Management
Creating Better Performance
Management Systems
Performance Appraisal Meeting

Scheduling the Use of Praise and


Interview Structure
Interview Criticism

Concluding the
Employees’ Role
Interview

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