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E2: Managing Performance > 6. Managing Performance > Flashcards

6. Managing Performance Flashcards

1
Q

What is performance management?

A

The use of goals, targets and standards to enable people to perform to the best of their abilities and to ensure a shared understanding of what is to be achieved

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2
Q

What is the sequence of controlling performance?

A
  1. Planning objectives and targets
  2. Establish standards of performance
  3. Monitoring actual performance
  4. Compare deviations
  5. Take corrective action (repeat 2-4 until performance is achieved. Then, repeat 1-5)
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3
Q

What are the key features of performance management?

A
  1. Agreed framework - manager and employee agree on a standard of performance
  2. Performance management as a process - ongoing activity involving monitoring, discussion and adjustment
  3. Shared understanding - goals of the individual, department and organisation should be integrated
  4. Approach to managing and developing people - influencing, empowering, giving feedback and problem solving
  5. Achievement - enable individuals to maximise full potential
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4
Q

What is the process of performance management?

A
  1. Identify requirements and competencies
  2. Draw up a performance agreement (expectations of team / individuals / KPIs)
  3. Draw up a performance management plan
  4. Manage performance continually
  5. Conduct a performance review
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5
Q

What are the three levels that organisations operate at?

A
  1. Strategic (board) level
  2. Tactical control (functional management) level
  3. Operational level
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6
Q

What are the four control strategies?

A
  1. Output control: requires standards and output targets to be set, against which employee performance is measured
  2. Bureaucratic control: impersonal systems of rules and reports; use of policies, procedures, rules, reports and budgets
  3. Clan control: corporate culture, shared values, employees ‘buy-in’ to the purpose
  4. Personal centralised control: owner-managed organisations, one central figure who is the main decision maker
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7
Q

Adopting an overly formal type of control potentially heightens the scope for..:

A
  1. Motivational issues, as workers are restricted from using their initiative which may increase staff turnover
  2. Quality issues, if workers are less likely to buy-in to the work they perform
  3. Organisations not understanding their workers
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8
Q

What are the principles of measuring performance?

A
  1. Job-related: targets should be related to the actual job outlined in job description
  2. Controllable: individuals should not be assessed on factors they cannot control
  3. Objective and observable:contentious
  4. Data must be available
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9
Q

Why is there a need for co-ordination and alignment for goals in an organisation? (I.e. the cascade from organisational level to individual level)

A

Mission > Strategic objectives > Tactical objectives > Operational objectives > individual performance targets and standards

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10
Q

What is Management by Objectives (MbO)?

A

A process whereby the individual’s objectives are integrated with the corporate plan, as part of an ongoing programme of goal setting and performance review involving all levels of management

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11
Q

What are the stages of MbO?

A
  1. Clarify organisational goals and objectives
  2. Collaboratively define each individual’s area of responsibility
  3. Define and agree key tasks
  4. Define and agree key results
  5. Agree individual performance improvement plans
  6. Monitor, self-evaluation and review
  7. Periodic review of performance
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12
Q

What is empowerment?

A

Making workers (and teams) responsible for achieving, and even setting, work targets, with the freedom to make decisions about how they are achieved

Promoting empowerment may involve:
- Managers leading by example
- Communicating with employees on a regular basis about performance and providing feedback
- Supporting employee efforts to develop their skills and careers

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13
Q

How can organisations overcome issues with performance schemes?

A
  1. Establish talent management programmes
  2. Set realistic targets and allow genuine involvement
  3. Change the organisation’s culture
  4. Adopt an appropriate management leadership style
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14
Q

What is performance appraisal?

A

The systematic review and assessment of an employee’s performance, potential and development or improvement needs.

The TARA acronym:
- Targets
- Actual results
- Review
- Action plan (new targets)

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15
Q

What is the purpose of appraisal?

A

To improve the efficiency of the organisation by ensuring that the individuals within it are performing to the best of their ability.

Aspects include:
- Reward review (bonuses, pay increases)
- Performance review (planning and following up on training needs)
- Potential review (career development)

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16
Q

What are the benefits of appraisal?

A
  1. Provides a system for assessing competence of employees
  2. Identifies improvement and training needs
  3. Provides a fair basis for reward decisions and identifies candidates for promotion
  4. Improves communication
  5. Allows individual targets to be linked to the organisations’
  6. Provides a basis for HR planning
  7. Provides a method of monitoring recruitment and induction
17
Q

What is the process of appraisal?

A
  1. Identify criteria for assessment
  2. Prepare appraisal report (e.g., self-appraisal, upward appraisal, 360 feedback, 180 feedback, ranking, unstructured)
  3. Carry out appraisal interview
  4. The assessor’s superior reviews the assessment
  5. Prepare and implement an action plan
  6. Follow up
18
Q

What are the problems with appraisals?

A
  1. Subordinate may be defensive
  2. Superior may be defensive
  3. Superior might show conscious or unconscious bias
  4. Subordinate and / or superior may be reluctant to devote time and attention to appraisal
  5. Culture might not take appraisals seriously
19
Q

What are intrinsic and extrinsic rewards?

A

Intrinsic rewards are those which arise from the performance of the work itself (Herzberg’s motivational factors). These are psychological and relate to job satisfaction.

Extrinsic rewards are separate from the job itself and dependent on the decisions of others (Herzberg’s hygiene factors)

20
Q

What six things should a reward system do?

A
  1. Encourage people to full job vacancies and not leave
  2. Increase predictability of employees’ behaviour
  3. Increase willingness to accept change and show flexibility
  4. Foster and encourage innovative behaviour
  5. Reflect the nature of the job
  6. Motivate
21
Q

What are two kinds of performance related pay (PRP)?

A
  1. Piecework: commonly used for wage earners, whereby individuals receive a payment of a fixed amount per unit produced, or operation completed
  2. MbO: for managerial / other salaries jobs, where key results can be specified and a there is a clear model for evaluating performance
22
Q

What is the difference between positive and negative disciplinary procedures?

A

Positive relates to procedures, systems and equipment designed so that the employee has no option but to act in a desired manner and complete the task successfully.

Negative is the promise of sanctions designed to make people choose to behave in a desirable way.

Disciplinary action must have as its goal the improvement of the future behaviour of the employee and other members of the organisation.

23
Q

What is the UK Government’s statutory disciplinary procedure?

A
  1. Manager must write to employee stating why disciplinary action is being taken and invite them to a meeting
  2. During the meeting, the manager must explain the problem and allow the employee to respond
  3. The employee may appeal
24
Q

What are examples of relationship management in disciplinary situations?

A
  1. Immediacy (‘Hot Stove Rule’) - manager takes disciplinary action as speedily as possible
  2. Advanced warning - employees should know in advance what is expected of them
  3. Consistency - appropriate action is taken
  4. Impersonality - penalties should not be based on personality involved
  5. Privacy - disciplinary action should be taken in private to avoid spread of conflict or humiliation
25
Q

What are grievance procedures and what is a grievance procedure?

A

A grievance occurs when an individual feels that they are being wrongly or unfairly treated - they should be able to pursue it and have the problem resolved.

Procedure:
1. Allow objective grievance handling
2. Protect employees from victimisation
3. Provide legal protection to both parties
4. Encourage grievance airing
5. Require a full and fair investigation

26
Q

What should a formal grievance procedure do?

A
  1. State the rights of the employer for the type of grievance
  2. State what the procedures for pursuing a grievance should be
  3. Allow for the involvement of trade union / staff association representative
  4. State time limits
  5. Require written records of all meetings
27
Q

What are employment tribunals?

A

Employment tribunals have jurisdiction to deal with all manner of employment-related disputes, such as wrongful and unfair dismissal and redundancy. The objective of these is to resolve employment disputes.

28
Q

What are some of the reasons an employee may be dismissed?

A
  1. Conduct-related
  2. Concerning capability or qualifications
  3. Statutory duty which prohibits continued employment
  4. Substantial reason
29
Q

What are the types of dismissal?

A
  1. Constructive: employee resigns due to conduct breaches their contract
  2. Wrongful: dismissed breaches of their contract
  3. Unfair: dismissal without good reason
30
Q

What are examples of fair grounds for dismissal?

A
  1. Redundancy
  2. Legal impediment (e.g., UBER with driving ban)
  3. Non-capability (after training and warnings)
  4. Misconduct
31
Q

What are examples of unfair dismissal?

A
  1. Unfair selection for redundancy
  2. Membership and involvement of trade union
  3. Pregnancy
  4. Insisting on documented payslips and employment particulars
  5. Carry out certain activities in connection with H&S at work
32
Q

What is redundancy?

A

Dismissal under the following circumstances:
1. The employer has ceased to carry on the business at all
2. The employer has ceased to carry on business in the place where the employee was employed
3. The requirements of the business for employees to carry out work of a particular kind have ceased (or are expected to)

Employees may be entitles to compensation

E2: Managing Performance (12 decks)

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