1. Organizational Resource Management ORM 4: Nov-2012 Strictly Private & Confidential. Unauthorized use of the contents, information and materials is prohibited Westford School of Management – All rights reserved

2. Performance Appraisal and Performance Management

3. © 2005 Prentice Hall Inc. All rights reserved. Comparing Performance Appraisal and Performance Management Performance appraisal – Evaluating an employee’s current and/or past performance relative to his or her performance standards. Performance management – The process employers use to make sure employees are working toward organizational goals.

4. © 2005 Prentice Hall Inc. All rights reserved. 9–4 Why Performance Management? The popularity of the total quality management (TQM) concepts. The necessity in today’s globally competitive industrial environment for every employee’s efforts to focus on helping the company to achieve its strategic goals.

5. © 2005 Prentice Hall Inc. All rights reserved. 9–5 An Introduction to Appraising Performance Why appraise performance? – Appraisals play an integra l role in the employer’s performance management process. – Appraisals help in planning for correcting deficiencies and reinforce things done correctly. – Appraisals, in identifying employee strengths and weaknesses, are useful for career planning – Appraisals affect the employer’s salary raise decisions.

6. © 2005 Prentice Hall Inc. All rights reserved. 9–6 Classroom Teaching Appraisal By Students Figure 9–1 Source: Richard I. Miller, Evaluating Faculty for Promotional and Tenure (San Francisco: Jossey-Bass Publishers, 1987), pp. 164–165. Copyright © 1987, Jossey-Bass Inc., Publishers. All rights reserved. Reprinted with permission.

7. © 2005 Prentice Hall Inc. All rights reserved. 9–7 Performance Appraisal Roles HR department – Serves a policy-making and advisory role. – Provides advice and assistance regarding the appraisal tool to use. – Prepares forms and procedures and insists that all departments use them. – Responsible for training supervisors to improve their appraisal skills.

8. © 2005 Prentice Hall Inc. All rights reserved. 9–8 Steps in Appraising Performance Defining the job – Making sure that you and your subordinate agree on his or her duties and job standards. Appraising performance – Comparing your subordinate’s actual performance to the standards that have been set; this usually involves some type of rating form. Providing feedback – Discussing the subordinate’s performance and progress, and making plans for any development required.

9. © 2005 Prentice Hall Inc. All rights reserved. 9–9 Designing the Appraisal Tool What to measure? – Work output (quality and quantity) – Personal competencies – Goal (objective) achievement How to measure? – Graphic rating scales – Alternation ranking method

10. © 2005 Prentice Hall Inc. All rights reserved. 9–10 Performance Appraisal Methods Graphic rating scale – A scale that lists a number of traits and a range of performance for each that is used to identify the score that best describes an employee’s level of performance for each trait.

11. © 2005 Prentice Hall Inc. All rights reserved. 9–11 Graphic Rating Scale with Space for Comments Figure 9–3

12. © 2005 Prentice Hall Inc. All rights reserved. 9–12 Portion of an Administrative Secretary’s Sample Performance Appraisal Form Figure 9–4 Source: James Buford Jr., Bettye Burkhalter, and Grover Jacobs, “Link Job Description to Performance Appraisals,” Personnel Journal, June 1988, pp. 135–136.

13. © 2008 Prentice Hall, Inc. All rights reserved. 9–13 FIGURE 9–5Appraisal Form for Assessing Both Competencies and Specific Objectives Source: http://www.case.edu/finadmin/humres/policies/perfExempt.pdf. Accessed May 17, 2007.

14. © 2005 Prentice Hall Inc. All rights reserved. 9–14 Performance Management Outline Figure 9–5a Source: www.cwru.edu.

15. © 2005 Prentice Hall Inc. All rights reserved. 9–15 Figure 9–5b Performance Management Outline (cont’d) Source: www.cwru.edu.

16. © 2005 Prentice Hall Inc. All rights reserved. 9–16 Performance Management Outline (cont’d) Figure 9–5c Source: www.cwru.edu.

17. © 2005 Prentice Hall Inc. All rights reserved. 9–17 Performance Appraisal Methods (cont’d) Alternation ranking method – Ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are ranked. Paired comparison method – Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better employee of the pair.

18. © 2005 Prentice Hall Inc. All rights reserved. 9–18 Alternation Ranking Scale Figure 9–6

19. © 2005 Prentice Hall Inc. All rights reserved. 9–19 Ranking Employees by the Paired Comparison Method Figure 9–7 Note: + means “better than.” − means “worse than.” For each chart, add up the number of 1’s in each column to get the highest-ranked employee.

20. ACTIVITY 1 WHAT ARE THE DISADVANTAGES TO THE EMPLOYEE OF NOT HAVING AN APPRAISAL SYSTEM?

21. PURPOSE OF APPRAISAL SYSTEMATIC APPROACH TO APPRAISAL 1. IDENTIFICATION OF CRITERIA FOR ASSESSMENT. 2. THE PREPARATION OF AN APPRAISAL REPORT. 3. AN APPRAISAL INTERVIEW, FOR AN EXCHANGE OF VIEWS ABOUT THE RESULTS OF THE ASSESSMENT, TARGETS FOR IMPROVEMENT, SOLUTIONS TO PROBLEMS, ETC. 4. THE PREPARATION & IMPLEMENTATION OF ACTION PLANS TO ACHIEVE IMPROVEMENTS & CHANGES AGREED. 5. FOLLOW-UP : MONITORING THE PROGRESS OF THE ACTION PLAN.

22. APPRAISAL PROCEDURES & TECHNIQUES SOURCES OF PERFORMANCE FEEDBACK 1. SELF APPRAISAL. Evaluation of employee 2. UPWARD APPRAISAL. Evaluation of boss 3. CUSTOMER APPRAISAL.

23. LATERAL THINKING Nutty Problem A man is replacing a wheel on his car, when he accidentally drops the four nuts used to hold the wheel on the car, and they fall into a deep drain, irretrievably lost. A passing girl offers him a solution which enables him to drive home. What is it?

24. Reward Management

25. REWARD MANAGEMENT Motivation – The willingness to exert high levels of effort to reach organizational goals, conditioned by the effort’s ability to satisfy some individual need Need – An internal state that makes certain outcomes appear attractive CONTENT THEORIES: WHAT MOTIVATES PEOPLE? E.G. MASLOW & HERZBERG THEORIES. PROCESS THEORIES : HOW ARE PEOPLE MOTIVATED? E.G. EXPECTANCY THEORY.

26. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 10–26 Components of Motivation Organizational Goals Needs Motivation Effort

27. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 10–27 The Motivation Process Exhibit 10.1

28. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 10–28 Early Theories Of Motivation Hierarchy of needs theory (Maslow) – There is a hierarchy of five human needs; as each need becomes satisfied, the next need becomes dominant. Physiological: food, drink, shelter, sex Safety: physical safety Social: affiliation with others, affection, friendship Esteem: Internal (self-respect, autonomy, and achievement); external (status, recognition, and attention) Self-actualization: personal growth and fulfillment

29. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 10–29 Maslow’s Hierarchy of Needs Exhibit 10.2 Source: Motivation and Personality, 2 nd ed., by A. H. Maslow, 1970. Reprinted by permission of Prentice Hall, Inc., Upper Saddle River, New Jersey.

30. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 10–30 Early Theories Of Motivation (cont’d) Motivation-Hygiene theory (Herzberg) – Intrinsic factors are related to job satisfaction and extrinsic factors are related to job dissatisfaction Hygiene factors – Factors, such as working conditions and salary, that, when adequate, may eliminate job dissatisfaction but do not necessarily increase job satisfaction. Motivators – Factors, such as recognition and growth, that can increase job satisfaction.

31. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 10–31 Herzberg’s Motivation-Hygiene Theory Exhibit 10.4

32. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 10–32 Contrasting Views of Satisfaction-Dissatisfaction Exhibit 10.5

33. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 10–33 Expectancy Theory (Vroom) A comprehensive theory of motivation that an individual tends to act in a certain way, in the expectation that the act will be followed by given outcome, and according to the attractiveness of that outcome to the individual. – The extent to which individuals are motivated to perform to get a reward of value to them is based on their belief that their performance will result in the reward they want.

34. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 10–34 Expectancy Theory (cont’d) Emphasizes self interest in the alignment of rewards with employee wants. Addresses why employees view certain outcomes (rewards) as attractive or unattractive. Emphasizes the connections among expected behaviors, rewards, and organizational goals.

35. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 10–35 Expectancy Relationships (Linkages) Effort–performance – The perceived probability that exerting a given amount of effort will lead to performance Performance–reward – The belief that performing at a particular level will lead to the attainment of a desired outcome Attractiveness – The importance placed on the potential outcome or reward that can be achieved on the job.

36. ACTIVITY 5 DOES YOUR COMPANY, OR A COMPANY YOU ARE AWARE OF CARRY OUT JOB EVALUATION AS A BASIS FOR AN EQUITABLE REMUNERATION SYSTEM IN THE COMPANY? WHAT CAN BE THE ADVANTAGES/ DISADVANTAGES OF JOB EVALUATION?

37. 16–37 Organizational Culture

38. 16–38 What Is Organizational Culture? Characteristics: 1.Innovation and risk taking 2.Attention to detail 3.Outcome orientation 4.People orientation 5.Team orientation 6.Aggressiveness 7.Stability Characteristics: 1.Innovation and risk taking 2.Attention to detail 3.Outcome orientation 4.People orientation 5.Team orientation 6.Aggressiveness 7.Stability Organizational Culture A common perception held by the organization’s members; a system of shared meaning.

39. 16–39 Do Organizations Have Uniform Cultures? Core Values The primary or dominant values that are accepted throughout the organization. Strong Culture A culture in which the core values are intensely held and widely shared.

40. 16–40 How Employees Learn Culture Stories Rituals Material Symbols Routine Behaviours Stories Rituals Material Symbols Routine Behaviours

41. 7–41 Job Enrichment Model Characteristics: 1.Skill variety 2.Task identity 3.Task significance 4.Autonomy 5.Feedback Characteristics: 1.Skill variety 2.Task identity 3.Task significance 4.Autonomy 5.Feedback Job Enrichment Model Identifies five job characteristics and their relationship to personal and work outcomes.