1. Performance Management HRM3706 2012

2. Content Managing employee performance o Performance management in context o Performance management process o Performance appraisal o Managing team performance o Performance management and rewards o Managing employee performance improvement Strategic performance management o Strategic performance management in context o Designing and implementing CSF’s & KPI’s o Measuring organisational performance: Balanced Scorecard o Legal perspectives in performance management

3. Performance management in context Definition: Performance management (2) Performance management process (6) Performance management v performance appraisal (10) Aim & role of performance management (6) Contributions to employees & organisation (13) Conditions for successful implementation (6) Performance management policy

4. Performance management process 1 Prerequisite stage 2 Performance planning stage 3 Performance execution stage 4 Performance appraisal stage 5 Performance review stage 6 Performance renewal & recontracting

5. Performance appraisal SU 3

6. Performance appraisal Definition: Performance appraisal Purpose & value What is performance? Determinants of performance Factors influencing determinants Approaches to measuring performance Gathering performance information Errors in performance appraisals (13) Performance feedback Risk of implementing 360 degree feedback Dealing with poor performance

7. Determinants of performance Declarative knowledge o Information about facts & things, incl. task requirements, principles & goals Procedural knowledge o Knowing what to do and how to do it o Cognitive, physical, perceptual, motor and interpersonal skills Motivation o Choice to expend effort o Choice of level of effort o Choice to persist in the expenditure of that level of effort Factors influencing determinants o Employee (abilities & previous experience) o HR practices o Work environment

8. Performance measuring approach - Behaviour When? Link between behaviour and results not obvious Outcomes are attained in distant future Poor results are due to causes beyond employee’s control Rating methods Narrative essay Ranking Paired comparison Forced distribution Behavioural checklist Graphic rating scales Behaviourally anchored rating scales (BARS)

9. Performance measuring approach - Results When? Workers are skilled in the needed behaviour Behaviour & results are obviously related Results show consistent improvement over time There are many ways to do a job right Rating methods Management by objectives (MBO) Work planning & review

10. Rater errors Recency Negativity First impression Spill-over Stereotype Attribution Similar to me Contrast Leniency Severity Central tendency Halo Primacy

11. Managing team performance SU4

12. Managing team performance Definition & importance of teams Types of teams (3) Purpose & challenges Including team performance in management system (6) Rewarding team performance

13. Rewards SU 5

14. Rewards Linking performance with rewards General objectives Pay-for –performance plan Categories of performance related rewards Individual v group plans Advantages & disadvantages of o Performance related rewards o Individual performance related rewards o Group/tem incentives Non-cash rewards

15. Performance related rewards Behaviour Merit raise Merit Bonus Results Piece rates Sales commissions Goal based + Discretional bonus Individual non-cash reward Individual Profit sharing Gain sharing Goal sharing Team incentives Team non-cash recognition rewards Group Share bonus plan Share purchase plan Share option plan Share appreciation and other rights plan Organisation

16. Non monetary rewards Social reinforces In-house learning and development opportunities Merchandise Travel Symbolic awards Earned time off Flexible or family-friendly work schedules

17. Performance improvement SU 6

18. Performance improvement Personal development plan Developmental plan objectives Contents Activities Supervisor’s role Challenges Coaching o Activities (7) o Guiding principles (4) o Process (5 steps)

19. Coaching Activities o Establish development objectives o Communicate effectively o Motivate employees o Document performance o Give feedback o Diagnose performance problems o Develop employees Guiding principles o Good relationship – trust & collaboration o Employee is source & director of change o Employee is whole & unique o Couch is facilitator of employee’s growth

20. Coaching process Set developmental goals Identify developmental resources & strategies Implement strategies Observe & document developmental behaviour Give feedback

22. Strategic performance management SU7

23. Strategic performance management Process Traditional system v strategic performance management Importance of CSF’s & KPI’s Benefits (5) Performance Management Budget/ Target setting Execution/ Forecasting Performance review Incentive compensation Strategy development

24. Performance management TraditionalStrategic/Integrated One-sided information Low-quality information Tardy information Information overload Low relevance of information Lack of communication Misalignment culture High-quality information Timely information Management support Efficient communication Aligned culture

25. Designing & implementing CSFs and KPIs SU8

26. CSF & KPI Critical Success Factors Key Performance Indicators CSF & KPI in context Performance measurement pyramid Results & effort indicators Quality criteria Targets for KPI’s

27. Measuring organisational performance - BSC SU9

28. Balanced scorecard Why? o Drawbacks of traditional approaches (4) o BSC implementation pitfalls (10) Developing a balanced scorecard (4) Chain of cause & effect Team & personal goals Rewards Criticism (4) BSC do’s (5) and don’ts (5)

29. Traditional financially based system drawbacks Outcome focus Drivers of business success Strategy into action Strategic communication, involvement & ownership

30. BSC implementation pitfalls 1.Vision & strategy not actionable 2.Strategy not linked to departmental team & individual goals 3.Strategy not linked to resource allocation 4.Feedback is tactical not strategic 5.Management style 6.Paper chase 7.Centralised measures 8.Lack of integration 9.Ignoring conceptual issues 10.Excluding stakeholders

31. BSC perspectives Innovative/growth perspective Internal perspective Customer perspective Financial perspective

32. Legal perspectives SU10

33. Legal perspectives Legality of performance management o Legal traps (6) Labour legislation Conducting performance appraisal within law (13) Ethics

34. Legal traps 1.Employment at will 2.Negligence 3.Defamation 4.Misrepresentation 5.Adverse impact 6.Illegal discrimination