Department of Business Management Strategic Human Resource Management Ing. Miloš Krejčí

2.2. Strategic Human Resource Management 1.Introduction to Human Resource Management 2.Strategic Human Resource Management 3.Personnel Planning and Recruiting - Job Analysis, Descriptions and Specifications 4.Employee / Employer Selection and Interviewing Process 5.Training and Developing Employees 6.Performance Management and Appraisal 7.Coaching, Careers and Talent Management 8.Compensation planning 9.Financial Incentives and Employee Benefits 10.Ethics, Culture, Organizational Change and Fair Treatment in HR Management 11.Equal Opportunity and Diversity, Labor Relations, Employee Safety and Health 12.Managing Human Resources in Global and SME companies Ing. Miloš Krejčí

3.3. Performance Management and Appraisal Ing. Miloš Krejčí Performance Appraisal Setting work standards, assessing performance, and providing feedback to employees to motivate, correct, and continue their performance. Performance Management An integrated approach to ensuring that an employee’s performance supports and contributes to the organization’s strategic aims.

4.4. Employee’s Goals and Work Standards Ing. Miloš Krejčí Set SMART goals Assign challenging/ doable goals Assign specific goals Guidelines for Effective Goal Setting Assign measurable goals Encourage participation

5.5. Setting SMART Goals Ing. Miloš Krejčí S pecific, and clearly state the desired results. M easurable in answering “how much.” A ttainable / achievable - not too tough or too easy, but streach enough. R elevant to what’s to be achieved and what are the overall company Goals. T imely in reflecting deadlines and milestones.

1 Is useful in career planning. Plays an integral role in performance management. Why Appraise Performance? Is basis for pay and promotion decisions. Helps in correcting deficiencies and reinforcing good performance. 234 Appraising Performance Ing. Miloš Krejčí 6.6.

7.7. (Un)Realistic Appraisals Motivations for Soft Appraisals The fear of having to hire and train someone new. The unpleasant reaction of the employee. An appraisal process that’s not open and clear. Hazards of Soft Appraisals Employee loses the chance to improve Company loses the business Ing. Miloš Krejčí

8.8. Performance Appraisal Roles The Supervisor’s Role Usually do the actual appraising Must be familiar with basic appraisal techniques Must understand and avoid problems that can cripple appraisal process Must know how to conduct appraisals fairly Ing. Miloš Krejčí

9.9. Performance Appraisal Roles The HR Department’s Role Serves a policy-making and advisory role. Provides advice and assistance regarding the appraisal tool to use. Trains supervisors to improve their appraisal skills. Monitors the appraisal system effectiveness and compliance with the law. Ing. Miloš Krejčí

1 Appraising performance Steps in Appraising Performance Defining the job and performance criteria and standards Providing feedback session 23 Effectively Appraising Performance Ing. Miloš Krejčí 10.

11. Designing the Appraisal Tool What to Measure? Work output (quality and quantity) Personal competencies Goals (objective) achievement How to Measure? Generic dimensions Actual job duties Behavioral competencies Ing. Miloš Krejčí

12. Critical Incidents for Assistant Plant Manager Ing. Miloš Krejčí Continuing DutiesTargetsCritical Incidents Schedule production for plant 90% utilization of personnel and machinery in plant; orders delivered on time Instituted new production scheduling system; decreased late orders by 10% last month; increased machine utilization in plant by 20% last month Supervise procurement of raw materials and on inventory control Minimize inventory costs while keeping adequate supplies on hand Let inventory storage costs rise 15% last month; over-ordered parts “A” and “B” by 20%; under- ordered part “C” by 30% Supervise machinery maintenance No shutdowns due to faulty machinery Instituted new preventative maintenance system for plant; prevented a machine breakdown by discovering faulty part

13. Management by Objectives (MBO) A comprehensive and formal organizationwide goal-setting and appraisal program requiring: 1.Setting of organization’s goals 2.Setting of departmental goals 3.Discussion of departmental goals 4.Defining expected results (setting individual goals) 5.Conducting periodic performance reviews 6.Providing performance feedback Ing. Miloš Krejčí

14. Using MBO Ing. Miloš Krejčí Setting unclear objective Conflict with subordinates over objectives Potential Problems with MBO Time-consuming appraisal process

15. Performance Appraisal Problems Ing. Miloš Krejčí Unclear standards Leniency or strictness Halo effect Potential Rating Scale Appraisal Problems Bias???

16. Guidelines for Effective Appraisals Ing. Miloš Krejčí Know the problems Get agreement on a plan Use the right tool How to Avoid Appraisal Problems Keep a diary Be fair

17. Best Practices for Administering Fair Performance Appraisals Base the performance review on duties and standards from a job analysis. Try to base the performance review on objective performance data. Make it clear ahead of time what your performance expectations are. Use a standardized performance review procedure for all employees. Make sure whoever conducts the reviews has frequent opportunities to observe the employee’s job performance. Include an appeals mechanism. Document the appraisal review process and results. Discuss openly the appraisal results with the employee. Let the employees know ahead of time how you’re going to conduct the review and use the results. Let the employee provide input regarding your assessment of him or her. Indicate what the employee needs to do to improve. Train the supervisors who will be doing the appraisals. Apprising is the skill any manager need to master Ing. Miloš Krejčí

18. Who Should Do the Appraising / Feedback? Ing. Miloš Krejčí Self-rating Subordinates 360-degree feedback Potential Appraisers Immediate supervisor Peers Rating committee

19. The Appraisal Interview Ing. Miloš Krejčí Satisfactory—Promotable Satisfactory—Not Promotable Unsatisfactory—Correctable Unsatisfactory—Uncorrectable Types of Appraisal Interviews

20. Appraisal Interview Guidelines Ing. Miloš Krejčí Talk in terms of objective work data Get agreement Don’t get personal Encourage the person to talk Guidelines for Conducting an Interview

1 Recognize your own limitations. Never attack a person’s defenses. How to Handle a Defensive Subordinate Recognize that defensive behavior is normal. Postpone action. 234 Defenses are a familiar aspect of our lives. The first reaction to the critique is often denial. By denying the fault, the person avoids having to question his or her own competence. Handling Defensive Responses Ing. Miloš Krejčí 21.

How to Criticize a Subordinate Criticize in private, and do it constructively. Do it in a manner that lets the person maintain his or her dignity and sense of worth. Give daily feedback so that the review has no surprises. Never say the person is “always” wrong. Criticism should be objective and free of biases. How to Deliver Criticism When you must criticize: Ing. Miloš Krejčí 22.

23. Formal Written Warnings Purposes of a Written Warning To shake your employee out of bad habits. To help you defend your rating, both to your own boss and (if needed) to the courts. A Written Warning Should: Identify standards by which employee is judged. Make clear that employee was aware of the standard. Specify deficiencies relative to the standard. Indicate employee’s prior opportunity for correction. Be in line with local law. Ing. Miloš Krejčí

24. Performance Management Is the continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with the organization’s goals. How Performance Management Differs From Performance Appraisal A continuous process for continuous improvement A strong linkage of individual and team goals to strategic goals A constant reevaluation and modification of work processes Ing. Miloš Krejčí

25. Basic Building Blocks of Performance Management Ing. Miloš Krejčí Direction sharing Goal alignment Ongoing performance monitoring Ongoing feedback Coaching and development support Rewards, recognition, and compensation

26. Basic Building Blocks of Performance Management Direction sharing - communicating the company’s goals and then translating these into doable departmental, team, and individual goals. Goal alignment - process that enables any manager to see the link between an employee’s goals and those of his or her department and company. Ongoing performance monitoring – measure progress toward meeting employee performance goals. Ongoing feedback - face-to-face and computer-based feedback regarding progress toward goals. Coaching and developmental support should be an integral part of the feedback process. Rewards, recognition, and compensation all play a role in providing the consequences needed to keep the employee’s goal-directed performance on track. Ing. Miloš Krejčí

27. Efective Feedback Ing. Miloš Krejčí Based on: Feedback_L6_prework

28. Next Session Preparation Ing. Miloš Krejčí WORK & DEVELOPMENT PLAN (W&DP, Feedback form, HINTS FOR PERSONAL SUCCESS) + prepare your own IS: W&D_plan_L7_prereading

29. Key Terms Ing. Miloš Krejčí performance appraisal unclear standards halo effect central tendency strictness/leniency bias appraisal interview performance management

30. LEARNING OUTCOMES 1.Define performance management and discuss how it differs from performance appraisal. 2.Set effective performance appraisal standards. 3.Describe the appraisal process. 4.Develop, evaluate, and administer at least four performance appraisal tools. 5.Explain and illustrate the problems to avoid in appraising performance. 6.Discuss the pros and cons of using different raters to appraise a person’s performance. 7.Perform an effective appraisal process preparation. Ing. Miloš Krejčí