week 4 Flashcards
What is Performance Management? Why do we want to manage performance? 3
- To Increase Motivation
- Strategic Imperatives
- Innovation
How do we know how organisations and individuals are performing? 4
Measuring performance (week 2)
• Performance Management Systems (week 3)
• Performance Appraisal (week 4)
• Quality of measurement and feedback (week 5)
How do we
improve
performance?
6
• Fostering Innovation (week 6) • Human Resource Development (week 7) • Rewards (week 8) • Talent Management (week 9) • Managing underperformance and employee absence (week 10) • Strategic HRM practices (week 11)
What is Performance Appraisal?
• “performance appraisal is the depiction
of the strengths and weaknesses of
employees in a noncontinuous manner,
typically just once a year.” (Aguinis, Joo
and Gottfredson, 2011, p 504)
Key Elements of the Formal Appraisal
Process
5
• Measurement – assessing performance against agreed targets
• Feedback – providing individuals with information about past performance and
what is needed for future performance
• Positive reinforcement – emphasising what has been done well
• An exchange of views – an open exchange of views about performance
• Agreement – all parties jointly agreeing what needs to be done to improve and sustain
performance
Benefits of Performance Appraisal 4
Provides information to employees about their current and future performance
Motivates and maintains high performance through recognition and rewards
Links employee goals with organisational goals
Builds equity formally into decision making processes
why is Provides information to employees about their current and future performance good
4
Provides feedback
• Identifies training and development needs
• Opportunity for career counselling
• Determines forms of support needed for underperformers
why is Motivates and maintains high performance through recognition and rewards good
3
- Motivational tool
- Provides recognition
- Performance related reward decisions
why is Links employee goals with organisational goals
3
Builds identification with and commitment to organisation’s goals and objectives
• Facilitates communication
• Enhances employee involvement
why is Builds equity formally into decision making good processes good 2
Ensures consistency of treatment
• Provides data to meet legal requirements
Evaluative v Developmental Approaches
Evaluative:
Traditional, ‘harder’ approach. Backward looking
(assessing past performance against
predetermined performance criteria). Often
associated with top down, more judgemental
forms of PM, and the allocation of reward.
Developmental:
‘Softer’ approach – emphasis on communicating gaps in performance expectations, clarifying job
objectives, training and development.
• Problems with combining an evaluative
and developmental approach:
• Rating processes and strategies
• Role conflict/power
• Issue if performance appraisal is used to determine
rewards.
Criticisms of Performance Appraisal (1)
5
• Conflicting aims - evaluative and developmental objectives may conflict
• Too few raters - can be practical difficulties in getting
raters (e.g. small businesses or senior managers)
• Subjectivity and bias – we will be examining perceptual issues in next weeks lecture
• Control – performance appraisal is a means for management to control and increase surveillance of
employees
• Reliance on subjective measures
Criticisms of Performance Appraisal (2)
7
Management behaviour – managers frequently dislike performance appraisal and vary in how and whether they carry them out • Bureaucracy - creates a time consuming process • Ambiguous feedback - Understanding ratings in relation to performance can be difficult • Supervision by untrained managers • Inconsistency in reward allocation • Lack of top management support • Disregard for individual performance objectives
strengths of Line manager or immediate
supervisor (Downward
appraisal) doing performance evaluation 3
•Line Manager should be familiar with work and constraints •strengthens relationship between line manager and employee •facilitates communication.
weaknesses of of Line manager or immediate
supervisor (Downward
appraisal) doing performance evaluation 3
•relies on good management skills and mutual trust •subject to bias •not suitable for all cultures.
strengths of Employee themselves (Self
appraisal) doing performance evaluation 3
•forces a person to reflect on own performance •gives employee a voice •suited to jobs with high levels of discretion, specialised skills or work in isolation from manager.
weaknesses of Employee themselves (Self
appraisal) doing performance evaluation 5
•inaccurate assessment •prone to over rating or under rating •problems if difference between self and others. •Lack of training •Gender differences
strengths of Subordinates
(Upward appraisal) doing performance evaluation 4
• involving employees can improve motivation and commitment •employees in close and regular contact with their manager •supports an open style culture •if multiple raters then less prone to bias.
weaknesses of Subordinates
(Upward appraisal) doing performance evaluation 4
•employees may feel intimated and may not give an accurate response •can be undermining/threatening for manager. •Managers may make popular v/s best decisions •Cultural context
strengths of Peers (Peer assessment) 5
•suited to team working environment. •Can provide more accurate review than supervisors •positive peer pressure to improve performance •increase team members’ commitment and productivity •Used in academic world – peer reviews
weaknesses of Peers (Peer assessment) 3
•colleague may not understand individual’s job •reluctance to be honest •may be influenced by jealousy or rivalry (‘Screw your buddy’).
strengths of customer appraisals 1
•helpful in customer facing environment.
weaknesses of customer appraisal 2
•high surveillance and control
•cannot take account of all aspects of
performance
