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

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

3. Performance Management and Appraisal
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.
Human Resource Management [NA_HRM] Ing. Miloš Krejčí

4. Employee’s Goals and Work Standards
Set SMART goals
Assign challenging/ doable goals
Assign specific goals
Guidelines for Effective Goal Setting
Assign measurable goals
Encourage participation
Human Resource Management [NA_HRM] Ing. Miloš Krejčí

5. Specific, and clearly state the desired results.
Setting SMART Goals
Specific, and clearly state the desired results.
Measurable in answering “how much.”
Attainable / achievable - not too tough or too easy, but streach enough.
Relevant to what’s to be achieved and what are the overall company Goals.
Timely in reflecting deadlines and milestones.
Human Resource Management [NA_HRM] Ing. Miloš Krejčí

6. Human Resources Management 12e Gary Dessler
Appraising Performance
Human Resources Management 12e Gary Dessler
Why Appraise Performance? 1 2
Is basis for pay and promotion decisions. 3
Plays an integral role in performance management. 4
Helps in correcting deficiencies and reinforcing good performance.
Is useful in career planning.
Human Resource Management [NA_HRM] Ing. Miloš Krejčí
Copyright © 2011 Pearson Education

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
Human Resource Management [NA_HRM] Ing. Miloš Krejčí

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
Human Resource Management [NA_HRM] Ing. Miloš Krejčí

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.
Human Resource Management [NA_HRM] Ing. Miloš Krejčí

10. Human Resources Management 12e Gary Dessler
Effectively Appraising Performance
Human Resources Management 12e Gary Dessler
Steps in Appraising Performance 1 2
Defining the job and performance criteria and standards 3
Appraising performance
Providing feedback session
Human Resource Management [NA_HRM] Ing. Miloš Krejčí
Copyright © 2011 Pearson Education

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
Human Resource Management [NA_HRM] Ing. Miloš Krejčí

12. Critical Incidents for Assistant Plant Manager
Continuing Duties
Targets
Critical 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
Human Resource Management [NA_HRM] Ing. Miloš Krejčí

13. Management by Objectives (MBO)
A comprehensive and formal organizationwide goal-setting and appraisal program requiring:
Setting of organization’s goals
Setting of departmental goals
Discussion of departmental goals
Defining expected results (setting individual goals)
Conducting periodic performance reviews
Providing performance feedback
Human Resource Management [NA_HRM] Ing. Miloš Krejčí

14. Using MBO Potential Problems with MBO Setting unclear objective
Conflict with subordinates over objectives
Potential Problems with MBO
Time-consuming appraisal process
Human Resource Management [NA_HRM] Ing. Miloš Krejčí

15. Performance Appraisal Problems
Unclear standards
Leniency or strictness
Halo effect
Potential Rating Scale Appraisal Problems
Bias
???
Human Resource Management [NA_HRM] Ing. Miloš Krejčí

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

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
Human Resource Management [NA_HRM] Ing. Miloš Krejčí

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

19. The Appraisal Interview
Satisfactory—Promotable
Satisfactory—Not Promotable
Unsatisfactory—Correctable
Unsatisfactory—Uncorrectable
Types of Appraisal Interviews
Human Resource Management [NA_HRM] Ing. Miloš Krejčí

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

21. Human Resources Management 12e Gary Dessler
Handling Defensive Responses
Human Resources Management 12e Gary Dessler
How to Handle a Defensive Subordinate 1 2
Recognize that defensive behavior is normal. 3
Never attack a person’s defenses. 4
Postpone action.
Recognize your own limitations.
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.
Human Resource Management [NA_HRM] Ing. Miloš Krejčí
Copyright © 2011 Pearson Education

22. Human Resources Management 12e Gary Dessler
How to Deliver Criticism
Human Resources Management 12e Gary Dessler
When you must criticize:
How to Criticize a Subordinate 1 2 3
Do it in a manner that lets the person maintain his or her dignity and sense of worth. 4
Criticize in private, and do it constructively. 5
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.
Human Resource Management [NA_HRM] Ing. Miloš Krejčí
Copyright © 2011 Pearson Education

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.
Human Resource Management [NA_HRM] 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
Human Resource Management [NA_HRM] Ing. Miloš Krejčí

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

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.
Human Resource Management [NA_HRM] Ing. Miloš Krejčí

27. Next Session Preparation
WORK & DEVELOPMENT PLAN
(W&DP, Feedback form, HINTS FOR PERSONAL SUCCESS)
IS: W&D_plan_L6_prereading
+ prepare your own
Human Resource Management [NA_HRM] Ing. Miloš Krejčí

28. Key Terms performance appraisal unclear standards halo effect
central tendency
strictness/leniency
bias
appraisal interview
performance management
Human Resource Management [NA_HRM] Ing. Miloš Krejčí

29. LEARNING OUTCOMES
Define performance management and discuss how it differs from performance appraisal.
Set effective performance appraisal standards.
Describe the appraisal process.
Develop, evaluate, and administer at least four performance appraisal tools.
Explain and illustrate the problems to avoid in appraising performance.
Discuss the pros and cons of using different raters to appraise a person’s performance.
Perform an effective appraisal process preparation.
Human Resource Management [NA_HRM] Ing. Miloš Krejčí