performance and reward Flashcards
what is meant by appraisal? (Heery and Noon, 2001)
“the process of evaluating the performance and assessing the development/training needs of an employee”
what is meant by appraisal? (Redman and Wilkinson, 2002)
“the review of an employee’s performance, typically conducted by the immediate line manager”
what are the aims of performance management (Armstrong, 2020)
Armstrong compiled a number of performance management aims, including:
- empowering, motivating and rewarding employees to do their best
- aligning the goals of employees with the ones of the organisation
- supporting the employees to develop the right skills following suitable training methods
- managing and resourcing performance according to agreed standards and objectives
- maximising the potential of employees through their development
what is the development of performance appraisal?
- informal systems have been around for as long as people have worked together
- Grint (1993) - formal appraisal in China in the 3rd Century
- most commonly adopted HR practices
- changes in payment related to rewards and performance related pay
- US -> UK -> South East Asia
- Prominent in UK financial services
what is performance appraisal used for? (Bowles and Coates, 1993; IDS, 2007; IRS, 1994, 1999)
- team and corporate performance
- clarifying and defining performance expectations
- assessing competencies
- get rid of poor performers
- allocating financial rewards
- setting pay
- succession planning
- determining promotion
- maintain loyalty
- identifying training and development needs
- coaching and mentoring
- improving the individual
- facilitating communications and involvement
what are the benefits of appraisal?
“Increase motivation, foster productivity, improve communications, encourage employee growth and development and help solve work‐related problems…[and] a systematic basis for compensation, promotion, transfer, termination and training and development” (Longenecker and Gioia, 1988, 41).
how is appraisal conducted?
- small scale low budget vs large scale and complex
- usually centrally designed by HR
- each line manager appraises their staff
- usually each year
- usually in the context of a meeting - before, during, after
- a legal and formal basis for promotion, pay and redundancy decisions
what is being appraised?
- performance against taregts
- quality of work
- attendance and timekeeping
- safety awareness
- percpetion
- originality of thought
- judgement
- job knowledge and abilities
- attitude to work
- interaction with others
what is the goals setting theory?
conceptual foundation of performance management
- goals are seen as motivators
- clarity of goals is key to understanding expectations
- goals must be set participatively and feedback given
Vroom (1964) expectancy theory:
- individuals motivated to act provided they expect to achieve goals set
- belief that achieving goals will lead to rewards
- belief that rewards on offer are valued
effort->performance->reward
what is the performance appraisal process?
- objectives of performance appraisal
- establish job expectations
- design on appraisal program
- appraise performance
- performance interview
- archive appraisal data
- use appraisal data for appropriate purposes
what is the performance management process?
- planning - set goals and define SMART metrics
- monitoring - track progress regularly and mitigate obstacles
- reviewing - evaluate process and the final results
- rewarding - give recognition and reward good performance
types of appraisal
upward
360 degree
customers
team
how does it work appraising volunteers?
- community sports organisations - volunteer appraisal not common (Cuskelly et al., 2006)
- these orgs usually run by volunteers
- may weaken the social needs of the volunteers
- bureaucracy and control
however, volunteers want feedback on their performance and guidance of what is expected of them (Taylor, Darcey, Hoye and Cuskelly, 2006)
what are critisms of the performance appraisal of the process/system?
- expensive
- process dominates
- bureaucratic
- appraisal forms not living
- poor performance neglected until next appraisal
- encourages short-termism
- used for development and pay which conflict
what are critisms of the performance appraisal subject to ‘political’ manipulation?
- building evidence for termination
- punish challenging employees
- ‘scare’ better performance out of people
- giving good rating to poor performers to get them promoted out of the department
- impact on the relationship between line manager and employee