HUMAN RESOURCE MANAGEMENT

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HUMAN RESOURCE MANAGEMENT
Performance Management and Appraisal Norma
Heaton Tel [phone]
Room1D14 Email
ne.heaton_at_ulster.ac.uk
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LEARNING OUTCOMES

• By the end of this session you should,
• be aware of the elements of the performance
  management cycle
• be able to articulate the relationship between
  management development and the performance cycle
• be able to critically assess the use of
  performance appraisal in the context of
  performance management

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PERFORMANCE MANAGEMENT

• A process designed to improve organisational,
  team and individual performance
• A shared process between managers and the
  individuals and teams they lead
• Based on management by contract rather than
  command
• Aim to improve the following key aspects of
  performance
• Achievement of objectives
• Knowledge, skill and competence
• Day-to-day effectiveness
• Arose from systems of merit rating and management
  by objectives

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THE EMERGENCE OF PERFORMANCE MANAGEMENT

• Arrival of HRM and enhanced role for managers
• Importance attached to a strategic approach to
  management
• Increased emphasis on continuous improvement
• Awareness of the significance of organisation
  culture
• Stress on achieving commitment by integrating
  organisation goals and individual goals

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PERFORMANCE MANAGEMENT ACTIVITIES

• Role definition
• Performance agreement or contract
• Personal development plan
• Managing performance throughout the year
• Performance review

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THE PERFORMANCE MANAGEMENT CYCLE
Role definition
Plan
Performance agreement
Personal development planning
Performance Review
Act
Review
Act
Performance
Monitor
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ROLE DEFINITION

• Role definition sets out the framework for
  performance management thus
• Purpose of the role
• Key result areas
• Key competencies what the role holder has to do
  and the behaviour required to perform the role
  effectively

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Motivation theories the underpinning for
performance management

• Goal setting theory (Edwin Locke)
• The conditions for goals to be motivating are
  that
• Goals should be specific rather than vague and
  general
• Goals should be demanding and attainable
• Goals should be accepted as desirable
• Feedback of performance information should be made

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Motivation theory ctd

• 2. Expectancy theory whats in it for me?
• (Vroom)
• Individuals will be motivated to perform if
• they perceive that they possess the necessary
  skills (expectancy)
• they perceive that if they perform well they will
  be rewarded (instrumentality)
• they perceive that the rewards are attractive
  (valence)

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Performance agreements

• Performance agreements cover the following
  points
• Objectives and standards of performance
• Performance measures and indicators
• Competency assessment
• Core values or operational requirements

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Defining objectives work and developmental

• What is a good work objective?
• Consistent
• Precise
• Challenging
• Measurable
• Achievable
• Agreed
• Time related
• Teamwork orientated

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SMART OBJECTIVES

• S stretching
• M measurable
• A agreed
• R realistic
• T time related

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Developmental objectives

• Personal development plan
• Sets out actions people propose to take to learn
  and to develop themselves
• People take responsibility for formulating and
  implementing the plan
• People expect to receive support from management

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Performance measures

• Performance measures should be agreed when
  setting objectives. Armstrong (1999) guidelines
• Measures should relate to results
• Results should be within the job holders control
• Measures should be objective
• Data should be available for measurement

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What measures can be used?

• Financial income, costs
• Output units produced
• Impact quality of service
• Reaction judgement by others
• Time speed of response

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The balanced scorecard

• Customer perspective
• Internal perspective
• Innovation and learning perspective
• Financial perspective

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Competency assessment

• An ability based on work tasks or outputs tends
  to be referred to as a competence
• An ability based on behaviour tends to be
  referred to as a competency
• Many organisations blend them together to include
• What people are expected to know and be able to
  do
• How people are expected to behave in order to
  perform their work well

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Managing performance

• Updating objectives
• Continuous learning
• Managing under performers
• Take disciplinary action if necessary

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Continuous learning

• Assessing what needs to be done
• Analysing what has been done (progress review)
• Agreeing action based on lessons learned
• Action getting things done -achieving change
• Adapting/ adjusting to different needs
• Affirming/ stating what has been learned

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Managing under performers

• Avoidance mechanisms
• Evasion through rationalisation
• Reliance on procedures
• Improving performance
• Identify and agree the problem
• Establish reasons for shortfall
• Decide and agree on action required
• Resource the action
• Monitor and provide feedback

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Conducting performance reviews key issues

• What is appraised?
• Key elements of the job
• Work objectives set at previous meeting
• Objectives for next period
• Developmental objectives
• Personal development plan

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Performance Reviews

• Who appraises who?
• - line manager
• - self-appraisal
• - peer appraisal
• - 360 degree feedback

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360 degree appraisal

• Manager
• Peers Individual Customers
• Direct reports

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Key Skills for Managing Performance

• 1. Setting objectives (SMART)
• 2. Giving feedback
• - build into job
• - provide feedback on actual events
• - describe v judge
• - refer to specific behaviours
• - ask questions
• - focus on positive aspects improvements

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Key skills ctd

• Counselling
• Training may be needed in
• Problem identification
• Open questioning
• Listening
• Sensitivity
• Reflecting
• Empathy
• Impartiality

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Coaching

• Making people aware of how they are performing
• Controlled delegation
• Using learning opportunities
• Encouraging people to stretch themselves

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Developments in performance management

• From
• System
• Appraisal
• Outputs
• PRP
• Ratings common
• Top down
• Directive
• Monolithic
• Owned by HR

• To
• Process
• Joint review
• Outputs/inputs
• Development
• Less rating
• 360 degree feedback
• Supportive
• Flexible
• Owned by managers

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REQUIREMENTS FOR SUCCESS

• Reasons for failure
• Lack of commitment from top management
• Insufficient involvement of line managers at
  early stages
• Lack of training
• Lack of quality control
• Criteria for success
• Commitment
• Cultural fit
• High levels of skill for managers

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Keys to successful introduction and application
of performance management

• Being clear what is meant by performance
• Understanding what the organisation needs in its
  performance culture
• Considering the role of reward and how employees
  will benefit

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References and further reading

• Armstrong,M. (1994) Performance management. Kogan
  Page
• Armstrong,M. and Baron,A. (1998) Performance
  management the new realities. IPD
• Arnold,J., Cooper,C. and Robertson,I. (1995) Work
  psychology understanding human behaviour at the
  workplace. Pitman
• Mabey,C., Salaman,G. and Storey,J. (1998) Human
  resource management a strategic introduction.
  Blackwell