MGT2201 Administrative Management

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MGT2201 Administrative Management

• Module 7
• Analysis, Evaluation and Appraisal of
  Administrative Jobs

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Where have we been?

• Basic management principles
• Administrative management and current trends
• Recruitment, selection and development of
  administrative employees
• Supervision and motivation of administrative
  employees
• Personal and professional career development for
  administrative staff
• Conflict, stress and group dynamics amongst
  administrative employees

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Where to now?

• Job analysis
• Job evaluation
• Job appraisal

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Why a module on analysis, evaluation and
evaluation of admin jobs?
Need for JOB ANALYSIS (to find out what admin
staff do)
Dramatic change in the nature of administrative
work. Changes to task variety and task
complexity Changes to autonomy levels Changes to
required qualifications and experience
Technological change
Need for JOB EVALUATION (to determine relative
worth of admin jobs)
Downsizing, delayering, restructuring
Outsourcing Remote work
Need for PERFORMANCE APPRAISAL (to find out how
well admin staff do their job)
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JOB ANALYSIS
Job Analysis Web Site

• Job analysis defines the jobs within the
  organisation and the behaviours that are
  necessary to perform those jobs

• Job analysis provides information which forms the
  basis of the job description and job specification

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Job differentiation

• Job analysis attempts to distinguish between jobs
  according to the following criteria
• Work activity and behaviours
• Interactions with others
• Performance standards
• Machines and equipment used
• Working conditions
• Supervision given and received
• Knowledge, skills and abilities

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Purpose of job analysis

• Information collected through job analysis is
  used in
• recruiting and selecting employees
• orienting and training staff
• clarifying relationships between jobs, job
  functions and departments
• assisting in promotions and career counselling
• job simplification
• facilitating employee performance appraisal,
  promotion and transfer
• standardising the same job performed by several
  employees
• assisting in organisational restructuring
• Developing equitable salary scales

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Planning the job analysis

• Determine
• the purpose of the job analysis
• procedures to be followed in collecting the data
• which jobs will be included
• the order in which jobs will be analysed
• nature of information to be collected
• method to be used in collecting the information
• gain staff support

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The benefits of job analysis

• provides an objective basis for
• determining the importance of each job
• determining the rate of pay for each job
• appraising the performance of each employee
• enables each employee to better understand job
  duties and responsibilities
• facilitates making more equitable employee work
  load assignments
• assists employees in areas where self-improvement
  is appropriate
• aids supervision because each job is clearly
  defined

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Questionnaires
Interviews
Observaations
Work Measurement Setting Standards
JOB ANALYSIS
JOB EVALUATION
Job Description
Job Specification
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Gathering information for the job analysis
JOB ANALYSIS
EMPLOYEE DIARY
OBSERVATION
QUESTIONNAIRE
TECHNICAL CONFERENCE
INTERVIEWS
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The outcomes of job analysis
Job description a written statement of what a job
holder does, how it is done and why it is done.
Typically portrays job content, environment and
conditions of employment.
JOB ANALYSIS
Job specification States the minimum acceptable
qualifications that an incumbent must possess in
order to perform a given job successfully. It
identifies the knowledge, skills and abilities
needed to do the job effectively.
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Job evaluation
Job Evaluation Web Site

• The process by which the relative worth of jobs
  is determined

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Benefits of Job evaluation (1)

• provides objective determination of the value of
  each job
• Increases likelihood of relative worth of jobs
  being accepted by employees
• provides appreciation of relationship between job
  demands and remuneration

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Benefits of job evaluation (2)

• reduces staff complaints about wage inequities
• helps identify lines of authority and career
  paths
• assists in identifying areas appropriate for
  orientation and training
• facilitates employee transfer

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Methods of job evaluation
Ranking method
Non-quantitative methods (job based)
Job classification method
Factor comparison method
Quantitative methods (component based)
Point-factor method
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Non quantitative methods

• Ranking method
• determine number of levels to be used
• individual jobs are analysed and ranked according
  to difficulty and overall responsibility
• assign each job to a predetermined job level
• assumes salary increases as job becomes more
  difficult BUT salary can also be determined by
• working conditions
• level and amount of responsibility
• experience

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Job classification method

• Evaluates jobs on the basis of a number of
  predetermined classes or grades and standard job
  descriptions eg AO2-8

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Advantages and Disadvantages of ranking or job
classifiation (non quantitative methods)

• Advantages
• simplicity and cheap to implement
• suitable for offices comprising fewer than 25
  jobs to be evaluated
• Disadvantages
• extremely subjective
• based on employee rather than job

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Quantitative methods

• Jobs are grouped according to components eg skill
  requirements, responsibility, working conditions
  etc
• Two quantitative methods are commonly used
• factor-comparison method
• point-factor method

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Quantitative methods Factor Comparison Method

• Determines relative worth of job on the basis of
  component parts eg
• Skill requirements
• Mental requirements
• Physical requirements
• Responsibility requirements
• Environmental requirements (working conditions)

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Quantitative method Point Factor Method

• Most common approach to job evaluation
• each factor divided into sub-factors and degrees
  and points assigned
• factors normally include skill, effort,
  responsibility and job conditions
• sum of all points for all subfactors represents
  the total score for the job
• jobs with similar point values should be paid
  similar salary

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Performance Appraisal

• A formal assessment of how well an employee is
  performing his or her job.
• a systematic, face-to-face discussion of an
  employees work performance, training and
  development needs, future job goals and job
  aspirations.
• Cole (1998)

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Performance appraisal
One of the most important responsibilities of the
admin manager
Improved utilisation of staff resources
EFFECTIVE PERFORMANCE APPRAISAL
IMPROVED PRODUCTIVITY
Sound basis for personnel actions
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Purpose of Performance Appraisal

• validating selection devices
• assessing the impact of training
• assisting in making decisions re pay, promotions
  and training
• providing feedback to employees in order to
  improve present performance and plan future
  performance

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Characteristics of effective performance
appraisal (1)

• appraisal will elicit a change in employee
  behaviour
• appraisal will provide a basis for making
  remuneration decisions
• appraisal will provide a basis for making
  promotion, transfer or termination decisions
• appraisal will motivate employees

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Characteristics of effective performance
appraisal (cont)

• appraisal will provide feedback for use in
  validating various phases of the personnel
  program
• Appraisal will assist in identifying retraining
  needs
• Appraisal will uncover exceptional skills among
  employees
• appraisal will facilitate supervisor-subordinate
  communication
• appraisal will use appropriate evaluation base in
  relation to intended use of results

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Position characteristics
Organisational characteristics
Landy and Farrs model of Performance Appraisal
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Purpose for rating
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Scale development
Rater characteristics
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Rating process
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Ratee characteristics
Rating instrument
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Retrieval judgment
Personnel action
Performance description
Data analysis
Observation storage
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Sources of Performance Appraisal Information
Immediate Supervisor
Peers
Self
Subordinates
Clients
PERFORMANCE APPRAISAL
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Methods of Performance Appraisal

• Graphic Rating Scale
• Paired comparison approach
• Checklist
• Ranking
• Critical Incident
• Behaviourally anchored rating scales

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Methods of Performance Appraisal

• Peer rating
• Group rating
• Self Appraisal
• Narrative Appraisal
• Field Staff review
• Results-oriented approach

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Extract from Graphic Rating Scale
Other comment criteria are Relations with others,
Dependability, Job knowledge
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Paired Comparison Approach
EMPLOYEE A
EMPLOYEE B
EMPLOYEE C
EMPLOYEE D
EMPLOYEE E
EMPLOYEE F
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Rating checklist
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Critical Incidents Method

• Involves formulating a list of critical job
  requirements for each position
• supervisor observes each subordinate for
  favourable/unfavourable displays of these
  requirements
• based on objective facts and evidence rather than
  subjective rating of traits
• allows for immediate feedback
• may be negatively regarded by employees

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Behaviourally Anchored Rating Scale (BARS)

• Sophisticated and useful rating method
• Supervisors construct rating scales with
  associated behavioural anchors
• They first identify relevant performance
  dimensions and then generate anchors - specific,
  observable behaviours typical of each performance
  level

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BARS (cont)

• Requires that management take proper care in
  constructing the scales and provides useful
  anchors for supervisors to use in evaluating
  people
• It is costly - because outside expertise is
  usually needed and because scales must be
  developed for each job in the organisation

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Behaviourally anchored rating scale (BARS)
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Results oriented appraisal

• based on management by objectives concept
• measurable performance goals are jointly set by
  supervisor and subordinate
• specific courses of action agreed upon
• interim discussion of progress towards goals
• at conclusion of predetermined period, official
  evaluation of progress towards goal achievement
  is undertaken
• goals for new period set

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Advantages of results oriented appraisal

• Emphasises future (over which employee has some
  control) rather than past
• emphasises performance rather than personality
  traits
• helps identify areas suitable for training
• subordinates compares against own progress rather
  than competing with peers
• tends to strengthen superior-subordinate
  cooperation
• employees tend to work harder with specific goals
  to achieve
• tailor-made for each employee

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Major sources of appraisal error
SITUATIONAL FACTORS Timing Contrast
Effects Supervisors Mood
B Assessed Performance
A Actual Performance
TRUE ASSESSMENT
Temporary Individual Factors
Inadequate definition of performance
Disagreement between raters Disagreement between
methods
Fatique, Mood, Health
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Errors in Performance Appraisal (1)

• Recency error
• rater bases judgments on the employees most
  recent performance because it is easily recalled
• Central Tendency error
• rater tends to allow ratings to fall within a
  narrow range
• Horns/halo error
• allowing the assessment of an employee on one
  dimension to spread to ratings of that employee
  on other dimensions
• Leniency Bias
• rater tends to give each employee a high rating
  regardless of how effective their performance has
  been

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Errors in Performance Appraisal (2)

• Strictness Bias
• rater tends to give each employee a low
  performance rating regardless of how effective
  their performance has been
• Personal Bias
• Personal bias may be in favour or against an
  employee on the basis of race, religion, gender,
  age or personality

• Unfair ratings can be partly prevented by
• Management overview of results
• Ratees doing self ratings prior to interview
• Provision of effective appeals mechanism

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Potential conflict in performance appraisal
Organisation Seeking the development of
individuals through counselling, coaching and
career planning
Individuals Seeking valid performance feedback so
they know where they stand and can develop
Major conflict
Conflict
Conflict
Individuals Seeking important rewards and
maintenance of self-image
Organisation Seeking information from individuals
on which to base rewards, and make personnel
decisions
Major conflict
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The performance appraisal interview (1)

• What do you need to know from the appraisee?
• Attitudes, feelings about their jobs
• Ambitions/aspirations
• Successes
• Expectations of job, work, rewards, etc
• Views on any job changes
• Self-assessment of performance
• Main problems faced
• How you can be of more help as a supervisor

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The performance appraisal interview (2)

• What does the appraisee need to know from you?
• Clarification of job, targets, responsibilities
• Departmental objectives and how the appraisee
  contributes
• Objectives, standards, targets for the next
  review period
• Recognition of good work
• Constructive help with any problem areas

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The performance appraisal interview (3)
Some guidelines for communication in the
appraisal interview

• What should you agree together?
• Targets for the next review period
• Action plan for future development
• Any training needs
• How you will help, what support you will provide
• An overall assessment of performance

See handout re performance appraisal interview