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Human Resources 8
Week 8: Maximising Performance
Question | Answer |
---|---|
Definition of performance management | It is the process through which managers ensure that employee activities and outputs are congruent with the organisation’s goals |
Performance management includes... | Defining, facilitating and encouraging performance, measuring performance, feeding back performance information and managing poor performance |
HR Processes are: | HRP (Selecting, recruiting etc.), Benefits and remunerations, Work Health and Safety. Basically anything under HR functions. |
The 4 elements of a Holistic Performance MGMT Strategy | Goal setting, provide regular feedback, measure achievements then performance remuneration decisions |
Primary Performance Review Methods | Behavioural-based (BARS) and Result-based (MBO and Balanced Scorecard) |
Behaviourally Anchored Rating Scales (BARS) | Define the behaviours associated with success in the role. Performance is assessed in terms of specific behaviours. E.g. assessing your performance on how well you respect others |
Advantages of BARS | Clear behavioural indicators = simple to follow, can be tailored to any job and can be both qualitative and quantitative. |
Criticisms of BARS | Time consuming, not result oriented and this model may be subjective. |
Result-based: Management by Objectives (MBO) | Focuses on goals rather than behavioural traits. Organisational goals 'trickle down' to the individual employee level. |
Advantages of MBO | Employee goals are linked to org. objectives, focuses on future and is motivating as you can see how your role contributes to the bigger picture. |
Disadvantages of MBO | Time consuming, bureaucratic and focuses employee only on outcomes (potentially at the expense of behaviours) |
Result-based: The Balanced Scorecard | It is an extension of the MBO model. Measures the health of an organisation from 4 different perspectives: finance, customer, innovation and internal business. See graph in lecture slides. |
Performance reviews: A Traditional Approach | A typical evaluation of employee performance through the use of feedback. |
Benefits of performance reviews | Managers can provide feedback on how to improve, identify employee performance gaps and provides data to inform remuneration decisions. |
Criticisms of performance reviews | Effective reviews depend on managerial capability, lack of reviewer 'accountability' and ambiguity around performance criteria. |
Typical errors common to performance reviews | Biases such as halo/horns error, leniency/strictness error, error of central tendency, recency error and stereotyping. |
Who provides feedback (or types of feedback) | Supervisor review, self-review, peer-review, sub-ordinate review and/or 360 degree review. |
Creating a performance culture | No single best practice, but experts emphasise the importance of frequent informal reviews, short-term goals, transparency and focusing on the future. |
Under-performance versus misconduct | Under-performance is the failure to perform the duties of the position to the standard requirement. Misconduct refers to behaviours that warrants instant dismissal. |
Context | Is Crucial. |