HR FINAL Flashcards
Performance Management - definiton
the continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with organization’s goals
Why performance management?
for clear understanding/agreement about expectations and needs between manager and employee
How does performance management work?
ongoing two-way communication between manager and employee
What’s the difference between Performance Management and Performance Appraisal?
A simple appraisal lacks emphasis on continuous feedback and measuring goal-oriented behavior
What are the 5 parts of Performance Management as a System?
- Performance Planning
- Appraisal Meeting
- Data gathering/Documentation
- Ongoing communication
- Diagnosis and coaching
Appraisal Meeting
Assessment of performance, strategic discussion using specific performance data, start next round of planning
Performance Planning
Employees and Managers should agree on:
What employee’s job entails, manager’s role in employee performance, and how performance will be evaluated
Is Data Gathering/Documentation crucial
Yes
Ongoing Communication
2-way process for Employees and Managers:
Progress tracked, Performance barriers identified, problems identified early, should not be a surprise
Diagnosis & Coaching
Managers and Employees should:
Find out why problems occurred, remove obstacles where possible, continuous process of helping employee improve
Performance Appraisal - definition
regular process in which performance is assessed by manager
3 factors that can affect performance appraisals:
- Past/ Future performance
- Rater effect – Manager awards favored employees higher ratings
- Rater’s implicit Theory – Manager’s human nature lead them to believing the way they think a job should be done is the best/only way
Types of Appraisal methods
- Relative
- Absolute
- MBO
Relative appraisal
- Comparing employees to each other
- Methods: Rankings and Forced Distributions
Absolute appraisal
- Comparing employees to a set of standards
- Rater makes no reference to other employees
- Methods: Narrative essay and Graphic Rating Scales
Management by Objectives (MBO)
Creates goals on each organizational level and compares work to goals
Types of Rating Errors
- Unclear standards
- Halo effect
- Central Tendency
- Leniency/Strictness
- First impression error
Unclear standards
Appraisal scale is too open to interpretation
Halo effect
Giving high ratings in all categories because employee exceeds in one specifically (example: “gets along well with others ≠ quantity of work)
Central Tendency
Tendency to rate all employees above average, rankings can help avoid this
Leniency/Strictness
restricting the range of their appraisals either all too high or too low
First impression/recency error
Allowing performance at the end (beginning) of the rating period to play too large a role
4 ways to improve appraisals
- Ranking employees forces the manager to identify higher performers and lower performances
- Awareness of relevancy
- Rater training
- Focus on behaviors and results instead of personal traits
Possible reactions to appraisals:
- Disappointment – many employees expect higher scores
- Can deter collaboration, cause anxiety, or deflate morale overall
Types of Appraisals and their purpose:
- Administrative – comparing individual employees
- Developmental – improving individual employees
- Systems maintenance – Implementing new HR system
- Documentation – justification of personnel decisions
Legal issues with appraisals:
- Subjectivity can lead to discrimination in hiring/promotion/termination
- Single overall rating is not acceptable in court
5 tips to legally sound appraisal MEASURES:
- Job related
- Objective, not subjective
- Based on behaviors, not traits
- Within control of employee
- Communicated to employee
5 tips to legally sound appraisal PROCEDURES:
- Have written instructions for managers
- Require throughout documentation
- Required review of results with employee
- Required notice of deficiencies, to which guidance is provided
- Provide formal appeal process
Documentation ABC’s
- Accurate – record objective facts about actual performance
- Behavioral – describe behavior specifically
- Consistent – record both positive and negative behaviors, maintain the same format and documentation for all employees
360 Feedback definition
Performance information collected by managers, subordinates, peers, and internal/external customers
Pros of 360 Feedback
o Very comprehensive
o Quality information
o Lessens prejudice
o Peer feedback may increase self-development
Cons of 360 Feedback
o Very complex
o Information intimidating
o Conflicting opinions when multiple sources weigh in
o System requires training to us
Goals of Compensation Systems (ARM)
- Attraction – what kind of employees will be attracted?
- Retention – what kind of employees will be retained?
- Motivation – employees to produce, cooperate, and develop skills
- Organizational Culture – pay system sends strong signal about what is valued
3 Perspectives of Fairness
- Internal equity – this job vs. other jobs in this company
- External equity – this job in this company vs. this job in other companies
- Individual equity – this pay vs. other people’s pay in same job and same company
Compensation/Pay System set-ups:
- Job-based – Pay employees for what they actually do
- Knowledge/Skill-based – Pay employees for what they can do
- Incentive-based – Pay for performance
Pay for Performance (PFP) Compensation Plan
Pay based on measure of performance for the individual, team, or organization
4 tips to an effective PFP plan:
Simple, Specific, Attainable, Measurable
FLSA
Governs minimum wage, maximum hours, overtime pay, equal pay, recordkeeping, and child labor; protects non-exempt employees
What does FLSA stand for?
Fair Labor Standards Act
FLSA in Iowa
o Minimum $7.25 per hour
o Paid 1.5 times for work over 40 hours/week
o Restrictions regarding minors