kk 6 Flashcards
Performance management
is the system used to improve organisational, functional and individual performance through
linking the objective of each.
What does performance management assess + look at?
all phases of the employment cycle
Employee performance
Remuneration
Promotion
Transfers
Disciplinary procedures
Training and development
Terminations
Continuous process
Performance management is a continuous process
Evaluates how effectively employees are fulfilling responsibilities and contributing towards obtaining objectives
Results of individual employees will help the relevant group achieve its objectives
Strategic (long term) link (MBO)
should exist between the organisations
objectives and individual employee objectives and performance
If performance management is implemented correctly with
specific objectives being tied to the strategic (long term) and operational plans -> performance outcomes for the
business should experience an improvement
Management by objectives reason
Setting goals is the first stage of the performance management system =M.B.O. can be used
Participative goal setting
the appraiser (manager) and appraise (employee) jointly determine the employee objectives / goals at the beginning of the review period.
What type of goals should mbo have?
SMART
SMART goals spelt out
Specific - well defined - when/how much
Measurable (motivates employees towards attainment)
Achievable (with a bit of a stretch)
Relevant (they should impact on the overall business strategy)
Timely (time frame)
Performance appraisal
A process that measures how well an employee has performed their job over a specified period of time. Provides feedback to employees and establishes plans to improve performance + helps develop new goals and objectives.
What are performance appraisals used for?
to report on past performance + Tells the business whether its staff selection devices have been effective.
Gauges whether current training + developmental programs have been effective
Shows where training, development and motivational programs are
required
Provides the basis for decisions relating to remuneration and reward, promotion and dismissal.
What should organisations do if they want to increase performance
If an organisation wants to increase performance -> performance management approach -> focus on the
growth and development of the employee + the setting of
new objectives
Self evaluation
an employee self-assesses both their
performance related to their predetermined objectives and
their contributions to their business team or unit.
Employee observation
Where managers, supervisors, and other stakeholders view the employee while they are performing their work.
Management by objectives process
- Set business objectives
- Set and align employee objectives
- monitor performance reguarly
- Provide feedback for employees
- Employee reward or take corrective action
Management by objectives definition
When the manager and employees agree on a set of goals for the employee.
What form can employee observation be in + example?
Formally observing the employee serving customers e.g. secret shopper
Informally asking managers and other employees on general observation of that employee
Overall -> feedback provided to employee based on observation
MBO advantages (at least two, try to switch around sometimes)
- Employees understand what they need to do + how they’ll be assessed
- The periodic evaluation + feedback -> ensure that employees know how they are going -> keeps them on track with their set objectives
- Employee objectives are aligned with business objectives -> when employee achieves their set objectives -> contributes to the achievement of the business objective
- May identify where employees need training + support (common theme)
MBO disadvantages (at least two, try to switch around sometimes)
Can be time consuming to set goals + provide regular feedback
May not be effective if the corporate culture e.g. autocratic is not supportive of this type of collaboration
May be challenging to set measurable goals for all employees (some roles don’t make it easy for the goals to be measurable as it depends on the task they are doing e.g. customer service representative).
Failing to meet goals -> harm self-esteem
Appraisals advantages
- Employees receive feedback on areas they’re performing well -> positive reinforcement
- Receive feedback on areas of growth -> helping them improve both employee + business performance
- Provides information to managers on employee performance -> helping them make decisions about wage increases, promotions or demotions, etc
Appraisal disadvantages
- Time-consuming + resource heavy process
- Feedback can sometimes be subjective (opinion) rather than based on clear data-> unfair process
- Can be stressful + overwhelming for employees + some supervisors
Self-evaluation advantages
Allows employees to self-reflect their work -> encouraging self-development + improved performance
Allows managers to understand the strengths + weaknesses of the employee
Provide managers an insight into how the employee view their performance and the support/training they require to improve
Self-evaluation disadvantages
Depending on employee’s personality, the self evaluation may not be a true reflection of their performance e.g. some employees may overstate what they have done, while others may find it challenging to promote or highlight their good work
It can be challenging for employees to remember all of their achievements throughout an entire year if they have not been documented
Employee observations advantages
If not done well, there is evidence of employee performance -> review is fairer
feedback comes from various stakeholders -> possibly more suggestions on how to improve performance
Potential to gather information from a range of sources that have viewed employee -> helps get the full picture of how the employee has performed
Employee observation disadvantages
If the observation is one-off, it may not provide a complete picture of how the employee has performed across the review period
If the employee know they are being oberserved -> become nervous -> not perform in their usual way (decrease job performance)
