CHAPTER 11 Management of performance

Session objectives Discuss the relationship between performance management and other HRM processes Describe the various objectives of performance management programs Identify the basic considerations in selecting standards for performance review Discuss the primary performance review methods

Describe the types of errors that arise in the use of rating methods Identify the different approaches to performance review interviewing Session objectives (cont.)

Benefits: – Organisational – Personal Performance appraisal programs

Developing a performance review program HR oversees and coordinates Managers establish objectives Employee ownership

Performance appraisal objectives Assessment of past performance Assessment of promotion potential Training and development Feedback Workplace planning $ Grievance communication Identification of obstacles/problems

Establish standards Standards for performance evaluation should be clearly defined and communicated Based on job-related requirements – job analysis, personal development etc. Competency based

Management by objectives Department-specific goals Joint agreement Interim review Subordinate goals Supervisor goals New input Inappropriate goals eliminated Review organisational performance Final review Common goals

Trait methods Graphic rating scale Mixed standard scale Essay Forced choice Common trait methods of appraisal

Behavioural methods Critical incidents Behavioural checklist Behaviourally anchored rating scale (BARS) Behaviour observation scales Common behavioural appraisal methods

Training appraisers Leniency or strictness error Similar-to-me error Contrast error Error of central tendency Recency error Common appraisal errors to address in training

Appraisal interviews Emphasise strengths Avoid personal traits – emphasise more acceptable ways of performing Opportunities for growth

Three types of appraisal interviews Tell and sell Tell and listen Problem-solving

Why they fail Lack of management support Lack of job-related standards Rater bias Too many appraisal forms Conflicting purposes – combining salary review with motivation for work improvement Managers not comfortable with face-to- face confrontation

Improving performance Sources of ineffective performance: – Organisational policies and practices – Personal problems – Job concerns – External factors

Counselling occurs when one person endeavours to help another to understand and resolve a problem Caution should be exercised when counselling employees Employee counselling

Employee discipline A genuine attempt to ensure that expected employee behaviour and performance is maintained to required organisational standards Recognises and corrects unacceptable work practices Consistent infringements may result in the dismissal of the employee