1. Managing Employee Performance (3)
HRMT650
Spring 2016
Managing Employee Performance Dr. Arno Haslberger

2. Issues In Performance Management

3. THE NATURE OF PERFORMANCE MANAGEMENT3
THE NATURE OF PERFORMANCE MANAGEMENT
The many-faceted
nature of
performance management was commented on as follows by Wayne Cascio:
‘It is an exercise in observation and judgement, it is a feedback process, it is
an organizational intervention. It is a an
measurement process as well as
intensely emotional process. Above all, it is an inexact, human process.’
Cascio, W F (2010)
Productivity, quality of work
Managing
Human
Resources:
life,
profits, 8th edn,
McGraw-Hill Irwin, New York

4. The problems of performance management
‘The problems [of performance management] are … not of ambition or intent, but rather practice and delivery. Low rates of coverage and even more frequently low-quality conversations and non- existent follow-up are commonplace, in the wake of
uncommitted directors, incompetent line managers, uncomprehending employees and hectoring HR with their still complex and bureaucratic HR processes.’
Duncan Brown

5. Performance management problems
As reported by respondents to the 2014 e-reward survey
The lack of line managers with the skills required to carry out
performance management effectively.
Line managers who were reluctant to conduct
performance management reviews.
Line managers who don't discriminate sufficiently when assessing performance.

6. Basic design issues
The extent to which the system should be forward- looking.
The extent to which the system should focus on performance enhancement.

7. Design issues The form and content of the performance agreement.
The problem of aligning individual and organizational goals.
Whether or not ratings should be used and if so, in what form.
The link between performance management
and performance pay.
How performance management should be documented.

8. Operational issues
Performance management can be modelled convincingly as a system but in practice the acts or failures to act of fallible human beings prejudice the effectiveness of the system.

9. How to deal with performance management issues (1)
As recommended by a respondent to the 2014 e-reward survey
Train, communicate;
Evaluate performance management through employee engagement surveys;
Have HR business partners work with line
managers;
Organize round tables (calibration);
Provide details of expected competency levels per job type/level;
Clarify that good is acceptable (not everyone can be
a star);
Encourage ongoing performance management, it's more than just an annual administrative hoop – it's a powerful management tool.

10. How to deal with performance management issues (2)
As recommended by a respondent to the 2014 e-reward survey
‘Keep it very, very simple, be able to translate strategy to individual goals and give people a clear line of sight. Ensure all people managers are capable to deliver performance management, ie have a performance dialogue (this is the key!) at any time and not just at the annual review.’

11. How to deal with performance management issues (3)
As recommended by respondents to the 2014 e-reward survey
‘It is the conversation between the manager and employee that is most important.’
‘Focus on the positives, create a culture of continual performance management rather
than restricting it to an annual appraisal.’
‘Ensure the system isn't hampered by bureaucracy and tedious paperwork.’
‘Managers need to be given the skills to manage difficult conversations and all staff need to know how to give and receive feedback.’
‘Make it about good conversations, not just a process.’
‘Clear line of sight between objective setting, performance review and business goals.’